Sierra Metals' loss expands in 2013

Vancouver-based Sierra Metals (TSX-V: SMT) posted a 2013 net loss attributable to shareholders of US$34.0mn compared to a loss of US$28.7mn in 2012 mainly due to lower adjusted Ebitda and an impairment charge of US$7.8mn in Mexico.

Adjusted 2013 net income attributable to shareholders was US$16.3mn, down 52.5% from US$34.3mn in 2012, according to the company's latest financial results report.

For 4Q13, net loss attributable to shareholders expanded to US$14.3mn compared to a loss of US$10.7mn in the prior year period.

Revenue declined 20.2% to US$144mn last year. Peru's contribution to total revenues decreased 29% to US$106mn, while Mexico's contribution increased 23.8% to US$37.4mn.

Sierra posted negative cash costs of US$12.04/oz silver at its Yauricocha mine in Peru in 2013, compared to negative cash costs of US$19.44/oz the year before. Cash costs at the firm's Boíivar and Cusi mines, both in Mexico, were US$1.70/lb copper and US$15.61/oz silver, respectively, compared to US$1.66/lb copper in 2012. A year-on-year comparison for the Cusi mine cannot be made, the company said.

Sierra Metals produced 2.56Moz of silver in 2013, down 2% from 2.62Moz the year before.