TSE:SMT Sierra Metals Q3 2024 Earnings Report C$1.10 0.00 (0.00%) As of 04/25/2025 04:00 PM Eastern Earnings HistoryForecast Sierra Metals EPS ResultsActual EPSC$0.03Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ASierra Metals Revenue ResultsActual Revenue$96.77 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ASierra Metals Announcement DetailsQuarterQ3 2024Date11/6/2024TimeN/AConference Call DateThursday, November 7, 2024Conference Call Time12:00PM ETConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress ReleaseEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Sierra Metals Q3 2024 Earnings Call TranscriptProvided by QuartrNovember 7, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Thank you for standing by. This is the conference operator. Welcome to the Sierra Metals Incorporated Third Quarter 2024 Financial and Operating Results Conference Call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Operator00:00:27Viewers on the Spanish language webcast are invited to submit their questions in writing using the form at the bottom of the webcast frame. I now hand the call over to Aliyah Benavides, the company's new Corporate Finance Manager. Please go ahead. Speaker 100:00:51Good afternoon, everyone. Thank you for joining our call today. Some housekeeping items before I pass the call to Ernesto Valarejo, our CEO and I'm Pierre Fort, our CFO. The accompanying presentation for today's call is available for download from the company's website at sierrametals.com. Today's press release, the financial statements and the MD and A are all posted on our website and our SEDAR platform. Speaker 100:01:17I'd like to note that this earnings call contains forward looking information that is based on the company's current expectations, estimates and beliefs, and we'll also use terms that are non IFRS performance measures. Please review our Q3 2024 disclosure materials for the risks associated with these forward looking information and the use of non IFRS performance measures. Please note that all dollar amounts mentioned on today's call are in U. S. Dollars unless otherwise noted and that all unit cash costs and all in sustaining costs are in a copper equivalent payable fund basis. Speaker 100:01:57I would now like to turn the conference over to Ernesto Valerezco, Chief Executive Officer for Sierra Metals. Please go ahead. Speaker 200:02:06Thank you, Lia. Let me begin as we always do by discussing our company's number one priority, safety. As seen on Slide 4, our focus is to continuously ensure we provide a workplace environment where all our employees and contractors are safe. Amongst the many initiatives undertaken during the quarter, the most significant was the risk management leadership program that advanced our technical competencies and leadership skills that are necessary to manage risks and critical controls across our operations effectively. These training workshops reinforce our commitment to decision making guided by safety and sustainable mining. Speaker 200:02:50Moving on to our performance for the quarter. We released our Q3 2024 production results on October 15 and our financial results earlier today. I assume everyone has had an opportunity to review them, so I will not be going into detail, but will instead provide highlights as seen on this slide. On a consolidated basis, in the Q3 of 2024, our 2 operating mines, Yauricocha and Bolivar, processed almost 669,000 tons of ore, which was 7% higher than the Q2 of 2024. Breaking this down, production by metal was higher than in Q2 with copper production of 11,000,000 pounds being 29% higher, and gold production of nearly 4,000 ounces was 16% higher, all of which is encouraging given rising metal prices. Speaker 200:03:55At the same time, lead production was lower and zinc production flat. As a result of quarter over quarter improvements, cash flow from operations was over $22,000,000 which was 48% higher than in Q2. Jean Pierre will provide more details on our stronger financial position shortly. I'll also remind everyone that we sold the Cusi mine and its surrounding concessions in early Q3, allowing the company to receive $2,100,000 in net proceeds and save nearly $300,000 per month in care and maintenance expenses. More importantly, this allows us to direct our full efforts and resources to perform in both Yauricocha and Bolivar. Speaker 200:04:46Looking ahead to Q4, we expect a strong Q4 as Bolivar continues its steady state production level, near capacity and Yauricocha ramps up production towards full capacity. As a result, I am pleased that both mines met our high expectations for the quarter and therefore very pleased to say that we expect to exceed our consolidated production guidance for the year. Moving on to Slide 6, Bolivar processed nearly 402,000 tons of ore, which represent a 7% and 11% increase from Q2 2024 and Q3 2023, respectively. Copper, silver and gold production increased by 3%, 17% and 12%, respectively, when compared to Q2 2024. Cash costs and all in sustaining costs per pound for Q3 2024 were 2.42 and 3.23, respectively. Speaker 200:05:48Cash costs improved at Bolivar due to the combined impact of lower operating costs per ton and higher grades, which were partially offset by an increase in the sustaining capital expenditure. The sustaining capital included the cost to develop a total of 3,800 meters, which included 1700 meters to prepare new operating stopes for production and 2,100 meters for new ramps and underground accesses. Development in Q3 was focused on the Bolivar Northwest, Bolivar Northwest South, Dulce and Cienegita zones. Also shown on this slide, there are some of the major initiatives completed in Q3 and others now underway in Q4. A priority for us is to continually replace and grow our mineral reserves and resources. Speaker 200:06:49Exploration works at Bolivar this quarter included drilling over 10,000 meters as part of an infill program in the Volivar Northwest, Chienegita and Dulce areas. The main purpose is to reclassify and further define the resources and extend the ore body to the Northeast of Dulce. Slide 8 shows our 2024 guidance range as compared to actual year to date productions and costs. As indicated on this slide, given the production levels achieved to date and our year to date cost compared to guidance, we expect a strong Q4 of operations. Success at Bolivar is a key driver for the company's overall performance. Speaker 200:07:41Moving on to Slide 9. Yauricocha averaged a processing rate of over 3,000 tons per day or a total of nearly 267,000 tons in Q3, our highest in over 2 years. This was an increase of 5% over the previous quarter as the mine commenced extraction activities below the 11.20 level. Head grades and recoveries for copper, silver and gold improved in comparison to Q2, but dropped slightly for zinc and lead. The higher grades were due to increased contributions from the Esperanza zone and the copper rich zone of Pamela. Speaker 200:08:23As a result of higher throughput, grades and recoveries, copper production was 97% higher with silver, gold with silver and gold higher by 43% 41%, respectively, when compared to the previous quarter. The agriculture's cash cost per pound was 3.25 and all in sustaining costs were 3.75. The previously discussed operating improvements resulted in a slightly lower costs as compared to Q2. As you would expect, the focus for the quarter was on mineral extraction below the 11.20 level. This included constant improvements in equipment utilization and increasing existing shafts usage. Speaker 200:09:16Replacing mineral reserves and resources is just as important at the Yauricocha. In Q3, underground exploration at Yauricocha was focused on replacing mineral resources and nearly 8,800 meters of diamond drilling were completed in the main mineralized bodies. Polymetallic ore and copper were intercepted, which will replace the mineral depleted during 2024. As seen on this slide, surface exploration was focused on carrying out detailed geological work and geomechanical sampling to define the polymetallic areas in the El Paso, Fortuna and the Cachita zones. We also have other high priority brownfield targets identified that we'll work on shortly. Speaker 200:10:09As indicated on Slide 11, we expect a strong Q4 of operations as we ramp up to full capacity. Furthermore, given the results to date, we expect Yauricocha to beat annual cost guidance. We are very pleased with the progress being made at Yauricocha and expect to announce shortly our achievement of heating capacity throughput rates. Now over to Jean Pierre to discuss our financial results. Speaker 300:10:39Thank you, Ernesto. I will now provide the key financial highlights of the Q3 of 2024. Overall, our stronger operating performance continues to improve our financial position. Net revenues in Q3 were $70,900,000 our highest quarter in more than 3 years. This was an increase of 23% of our revenues in Q2 2024 and was 25% higher than in Q3 2023. Speaker 300:11:07Higher revenues were mainly driven by a 19% increase in copper sales and higher metal prices during the period when compared to Q3 2023. Adjusted Q3 EBITDA from continuing operations has been our highest over the last 2 years, increasing to $20,400,000 from $8,100,000 in the same quarter of 2023. On a year to date basis, adjusted EBITDA from continuing operations increased to $51,000,000 from $38,000,000 in the same period of 2023. I'll also point out that we have generated as much EBITDA in the 1st 9 months of 2024 as we did in all 2023. Cash flow generated from operating activities before movements reported backlog were $22,100,000 for Q3 2024 when compared to $6,000,000 generated in the Q3 a year ago. Speaker 300:12:03Net income attributable to shareholders for Q3 2024 was $3,800,000 compared to a net loss of $9,300,000 in the same period in 2023. At the end of Q3, our net debt to last 12 months EBITDA ratio was 1.2x, which is lower than the previous quarter. We expect the ratio to improve as we progress our operational and cost efficiency plans throughout the next coming months. Cash and cash equivalents as of September 30, 2024 increased to $18,600,000 during the 9 month period. This is a result of cash generated from operating activities of $40,200,000 plus the net cash obtained from the refinanced loan of $18,200,000 that were partially offset by the net cash used for investing activities of $40,400,000 Capital investments mainly consisted of underground development in both mines, new equipment purchases, concentrator plant improvements, improvements required to meet throughput increases, expenditures at the Yauricocha shaft, the integration tunnel at Bolivar as well as in pumping and ventilation systems in both sites. Speaker 300:13:21In summary, all of our key financial metrics are trending in the right direction. Our financial position has improved significantly on a year over year basis, and we are well positioned to continue executing our operating plans. Back to you, Nao Urmessa. Speaker 200:13:37Thank you, Yanpeers. Shifting now to another very internal part of our business, which is partnering with our local communities on important initiatives that benefit everyone. Our focus continues to be on health, education and community entrepreneurship. Shown on this slide are some images of the events and initiatives undertaken this quarter in Mexico and Peru. In summary, Slide 14 is a reminder of our ambitious 2024 plans and our achievements to date. Speaker 200:14:10We continue to check all the boxes as we achieve our goals this year, but we are not done. During Q4, we expect the agriculture to meet full production capacity of 3,600 tons per day. I'll remind everyone that we received a permit to mine below the 11/20 level in late February. So it is remarkable that we have gotten to this stage in just 8 months. Meanwhile, Bolivar, plants continue to rapidly expand the tailings facility, allowing the plant to grow from a throughput rate of 5,000 tons per day to first 7,500 tons per day and then to 10,000 tons within the next few years. Speaker 200:14:55And lastly, we continue to seek partners to help us uncover value from our large and prospective greenfield land packages in Mexico and Peru. In closing, I want to congratulate the Sierra Mero's team. As we continue to deliver quarter over quarter since January 2023, I truly believe that we have built the foundation to achieve amazing things to continue building shareholder value. With that, I hand the call back to the operator to start the Q and A session. Operator? Operator00:15:30We will now begin the question and answer Speaker 100:16:27Okay. We have a couple of questions coming from the Spanish webcast. I will start with this one. When the agriculture is operating at full capacity, can we expect cost what can we expect costs to be? Speaker 200:16:43Thank you, Pierre. Well, we expect cash cost levels to be lower than what they are now. We'll provide that guidance in our 2025 outlook. So I would ask whoever the person is that asked the question to wait for our 2025 guidance. But I think they're going to be good. Speaker 100:17:15And the other one is, so far in Q4, what has the agriculture production been? Speaker 200:17:25Okay. I don't think I'm allowed to say it, but we're very pleased. What I'll say is that we're very pleased with the operations trending and there it is truly going in the right direction. So far, we haven't promised anything that we haven't been able to accomplish. And we have said that in Q4, we will be at full capacity. Speaker 200:17:50So I continue to say it and to promise that to the shareholders in the market. Speaker 100:17:58We have no further questions. I'll hand the call over to Ernesto for closing comments. Speaker 200:18:06Well, thank you for taking the time to join us today. Please reach out should you have any questions and have a good day everyone. Thank you very much. Operator00:18:15This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallSierra Metals Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release Sierra Metals Earnings HeadlinesCopper Miner Rallies as Takeover Buzz Sparks Investor OptimismApril 23 at 3:46 PM | msn.comSierra Metals Rejects Sweetened Takeover Bid From Peru's AlpayanaApril 9, 2025 | marketwatch.comGold Alert: The Truth About Fort Knox Is ComingOwning physical gold isn’t the best way to profit. I’ve found a better way to invest in gold—one that’s already performing nearly twice as well as gold this year and looks ready to go much higher. If you wait for the news to hit, you’ll already be too late.April 26, 2025 | Golden Portfolio (Ad)Sierra Metals Inc (SMTSF) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic ChallengesMarch 28, 2025 | gurufocus.comQ4 2024 Sierra Metals Inc Earnings Call TranscriptMarch 28, 2025 | gurufocus.comSierra Metals Earnings Analysis: Stock Forecast for 2025 and BeyondMarch 14, 2025 | theglobeandmail.comSee More Sierra Metals Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Sierra Metals? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Sierra Metals and other key companies, straight to your email. Email Address About Sierra MetalsSierra Metals (TSE:SMT), together with its subsidiaries, focuses on the production, exploration, and development of precious and base metals in Peru and Mexico. It primarily focuses on exploration of silver, copper, lead, zinc, and gold deposits. The company's flagship property is the 82% owned polymetallic Yauricocha Mine covering an area of 18,778 hectares located in the Yauyos province in Peru. The company was formerly known as Dia Bras Exploration Inc. and changed its name to Sierra Metals Inc. in December 2012. Sierra Metals Inc. was incorporated in 1996 and is headquartered in Toronto, Canada.View Sierra Metals ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Markets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Starbucks (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 4 speakers on the call. Operator00:00:00Thank you for standing by. This is the conference operator. Welcome to the Sierra Metals Incorporated Third Quarter 2024 Financial and Operating Results Conference Call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Operator00:00:27Viewers on the Spanish language webcast are invited to submit their questions in writing using the form at the bottom of the webcast frame. I now hand the call over to Aliyah Benavides, the company's new Corporate Finance Manager. Please go ahead. Speaker 100:00:51Good afternoon, everyone. Thank you for joining our call today. Some housekeeping items before I pass the call to Ernesto Valarejo, our CEO and I'm Pierre Fort, our CFO. The accompanying presentation for today's call is available for download from the company's website at sierrametals.com. Today's press release, the financial statements and the MD and A are all posted on our website and our SEDAR platform. Speaker 100:01:17I'd like to note that this earnings call contains forward looking information that is based on the company's current expectations, estimates and beliefs, and we'll also use terms that are non IFRS performance measures. Please review our Q3 2024 disclosure materials for the risks associated with these forward looking information and the use of non IFRS performance measures. Please note that all dollar amounts mentioned on today's call are in U. S. Dollars unless otherwise noted and that all unit cash costs and all in sustaining costs are in a copper equivalent payable fund basis. Speaker 100:01:57I would now like to turn the conference over to Ernesto Valerezco, Chief Executive Officer for Sierra Metals. Please go ahead. Speaker 200:02:06Thank you, Lia. Let me begin as we always do by discussing our company's number one priority, safety. As seen on Slide 4, our focus is to continuously ensure we provide a workplace environment where all our employees and contractors are safe. Amongst the many initiatives undertaken during the quarter, the most significant was the risk management leadership program that advanced our technical competencies and leadership skills that are necessary to manage risks and critical controls across our operations effectively. These training workshops reinforce our commitment to decision making guided by safety and sustainable mining. Speaker 200:02:50Moving on to our performance for the quarter. We released our Q3 2024 production results on October 15 and our financial results earlier today. I assume everyone has had an opportunity to review them, so I will not be going into detail, but will instead provide highlights as seen on this slide. On a consolidated basis, in the Q3 of 2024, our 2 operating mines, Yauricocha and Bolivar, processed almost 669,000 tons of ore, which was 7% higher than the Q2 of 2024. Breaking this down, production by metal was higher than in Q2 with copper production of 11,000,000 pounds being 29% higher, and gold production of nearly 4,000 ounces was 16% higher, all of which is encouraging given rising metal prices. Speaker 200:03:55At the same time, lead production was lower and zinc production flat. As a result of quarter over quarter improvements, cash flow from operations was over $22,000,000 which was 48% higher than in Q2. Jean Pierre will provide more details on our stronger financial position shortly. I'll also remind everyone that we sold the Cusi mine and its surrounding concessions in early Q3, allowing the company to receive $2,100,000 in net proceeds and save nearly $300,000 per month in care and maintenance expenses. More importantly, this allows us to direct our full efforts and resources to perform in both Yauricocha and Bolivar. Speaker 200:04:46Looking ahead to Q4, we expect a strong Q4 as Bolivar continues its steady state production level, near capacity and Yauricocha ramps up production towards full capacity. As a result, I am pleased that both mines met our high expectations for the quarter and therefore very pleased to say that we expect to exceed our consolidated production guidance for the year. Moving on to Slide 6, Bolivar processed nearly 402,000 tons of ore, which represent a 7% and 11% increase from Q2 2024 and Q3 2023, respectively. Copper, silver and gold production increased by 3%, 17% and 12%, respectively, when compared to Q2 2024. Cash costs and all in sustaining costs per pound for Q3 2024 were 2.42 and 3.23, respectively. Speaker 200:05:48Cash costs improved at Bolivar due to the combined impact of lower operating costs per ton and higher grades, which were partially offset by an increase in the sustaining capital expenditure. The sustaining capital included the cost to develop a total of 3,800 meters, which included 1700 meters to prepare new operating stopes for production and 2,100 meters for new ramps and underground accesses. Development in Q3 was focused on the Bolivar Northwest, Bolivar Northwest South, Dulce and Cienegita zones. Also shown on this slide, there are some of the major initiatives completed in Q3 and others now underway in Q4. A priority for us is to continually replace and grow our mineral reserves and resources. Speaker 200:06:49Exploration works at Bolivar this quarter included drilling over 10,000 meters as part of an infill program in the Volivar Northwest, Chienegita and Dulce areas. The main purpose is to reclassify and further define the resources and extend the ore body to the Northeast of Dulce. Slide 8 shows our 2024 guidance range as compared to actual year to date productions and costs. As indicated on this slide, given the production levels achieved to date and our year to date cost compared to guidance, we expect a strong Q4 of operations. Success at Bolivar is a key driver for the company's overall performance. Speaker 200:07:41Moving on to Slide 9. Yauricocha averaged a processing rate of over 3,000 tons per day or a total of nearly 267,000 tons in Q3, our highest in over 2 years. This was an increase of 5% over the previous quarter as the mine commenced extraction activities below the 11.20 level. Head grades and recoveries for copper, silver and gold improved in comparison to Q2, but dropped slightly for zinc and lead. The higher grades were due to increased contributions from the Esperanza zone and the copper rich zone of Pamela. Speaker 200:08:23As a result of higher throughput, grades and recoveries, copper production was 97% higher with silver, gold with silver and gold higher by 43% 41%, respectively, when compared to the previous quarter. The agriculture's cash cost per pound was 3.25 and all in sustaining costs were 3.75. The previously discussed operating improvements resulted in a slightly lower costs as compared to Q2. As you would expect, the focus for the quarter was on mineral extraction below the 11.20 level. This included constant improvements in equipment utilization and increasing existing shafts usage. Speaker 200:09:16Replacing mineral reserves and resources is just as important at the Yauricocha. In Q3, underground exploration at Yauricocha was focused on replacing mineral resources and nearly 8,800 meters of diamond drilling were completed in the main mineralized bodies. Polymetallic ore and copper were intercepted, which will replace the mineral depleted during 2024. As seen on this slide, surface exploration was focused on carrying out detailed geological work and geomechanical sampling to define the polymetallic areas in the El Paso, Fortuna and the Cachita zones. We also have other high priority brownfield targets identified that we'll work on shortly. Speaker 200:10:09As indicated on Slide 11, we expect a strong Q4 of operations as we ramp up to full capacity. Furthermore, given the results to date, we expect Yauricocha to beat annual cost guidance. We are very pleased with the progress being made at Yauricocha and expect to announce shortly our achievement of heating capacity throughput rates. Now over to Jean Pierre to discuss our financial results. Speaker 300:10:39Thank you, Ernesto. I will now provide the key financial highlights of the Q3 of 2024. Overall, our stronger operating performance continues to improve our financial position. Net revenues in Q3 were $70,900,000 our highest quarter in more than 3 years. This was an increase of 23% of our revenues in Q2 2024 and was 25% higher than in Q3 2023. Speaker 300:11:07Higher revenues were mainly driven by a 19% increase in copper sales and higher metal prices during the period when compared to Q3 2023. Adjusted Q3 EBITDA from continuing operations has been our highest over the last 2 years, increasing to $20,400,000 from $8,100,000 in the same quarter of 2023. On a year to date basis, adjusted EBITDA from continuing operations increased to $51,000,000 from $38,000,000 in the same period of 2023. I'll also point out that we have generated as much EBITDA in the 1st 9 months of 2024 as we did in all 2023. Cash flow generated from operating activities before movements reported backlog were $22,100,000 for Q3 2024 when compared to $6,000,000 generated in the Q3 a year ago. Speaker 300:12:03Net income attributable to shareholders for Q3 2024 was $3,800,000 compared to a net loss of $9,300,000 in the same period in 2023. At the end of Q3, our net debt to last 12 months EBITDA ratio was 1.2x, which is lower than the previous quarter. We expect the ratio to improve as we progress our operational and cost efficiency plans throughout the next coming months. Cash and cash equivalents as of September 30, 2024 increased to $18,600,000 during the 9 month period. This is a result of cash generated from operating activities of $40,200,000 plus the net cash obtained from the refinanced loan of $18,200,000 that were partially offset by the net cash used for investing activities of $40,400,000 Capital investments mainly consisted of underground development in both mines, new equipment purchases, concentrator plant improvements, improvements required to meet throughput increases, expenditures at the Yauricocha shaft, the integration tunnel at Bolivar as well as in pumping and ventilation systems in both sites. Speaker 300:13:21In summary, all of our key financial metrics are trending in the right direction. Our financial position has improved significantly on a year over year basis, and we are well positioned to continue executing our operating plans. Back to you, Nao Urmessa. Speaker 200:13:37Thank you, Yanpeers. Shifting now to another very internal part of our business, which is partnering with our local communities on important initiatives that benefit everyone. Our focus continues to be on health, education and community entrepreneurship. Shown on this slide are some images of the events and initiatives undertaken this quarter in Mexico and Peru. In summary, Slide 14 is a reminder of our ambitious 2024 plans and our achievements to date. Speaker 200:14:10We continue to check all the boxes as we achieve our goals this year, but we are not done. During Q4, we expect the agriculture to meet full production capacity of 3,600 tons per day. I'll remind everyone that we received a permit to mine below the 11/20 level in late February. So it is remarkable that we have gotten to this stage in just 8 months. Meanwhile, Bolivar, plants continue to rapidly expand the tailings facility, allowing the plant to grow from a throughput rate of 5,000 tons per day to first 7,500 tons per day and then to 10,000 tons within the next few years. Speaker 200:14:55And lastly, we continue to seek partners to help us uncover value from our large and prospective greenfield land packages in Mexico and Peru. In closing, I want to congratulate the Sierra Mero's team. As we continue to deliver quarter over quarter since January 2023, I truly believe that we have built the foundation to achieve amazing things to continue building shareholder value. With that, I hand the call back to the operator to start the Q and A session. Operator? Operator00:15:30We will now begin the question and answer Speaker 100:16:27Okay. We have a couple of questions coming from the Spanish webcast. I will start with this one. When the agriculture is operating at full capacity, can we expect cost what can we expect costs to be? Speaker 200:16:43Thank you, Pierre. Well, we expect cash cost levels to be lower than what they are now. We'll provide that guidance in our 2025 outlook. So I would ask whoever the person is that asked the question to wait for our 2025 guidance. But I think they're going to be good. Speaker 100:17:15And the other one is, so far in Q4, what has the agriculture production been? Speaker 200:17:25Okay. I don't think I'm allowed to say it, but we're very pleased. What I'll say is that we're very pleased with the operations trending and there it is truly going in the right direction. So far, we haven't promised anything that we haven't been able to accomplish. And we have said that in Q4, we will be at full capacity. Speaker 200:17:50So I continue to say it and to promise that to the shareholders in the market. Speaker 100:17:58We have no further questions. I'll hand the call over to Ernesto for closing comments. Speaker 200:18:06Well, thank you for taking the time to join us today. Please reach out should you have any questions and have a good day everyone. Thank you very much. Operator00:18:15This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.Read morePowered by