No.

04-2016

SIERRA METALS ANNOUNCES FINANCIAL RESULTS FOR Q4-2015 AT ITS

SUBSIDIARY SOCIEDAD MINERA CORONA IN PERU

Restructuring process at the Mine continued to temporarily depress production

___________________________________________________________________
Toronto, ON February 16, 2016 Sierra Metals Inc. (TSX:SMT)(BVL:SMT) (Sierra Metals or the
Company) announces the filing of Sociedad Minera Corona S.A.s (Corona) unaudited Financial
Statements and Management Discussion and Analysis (MD&A) for the fourth quarter of 2015 (Q4
2015). The Company holds an 81.8% interest in Corona. All amounts are presented in thousands of US
dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.
Coronas Financial Highlights for the Three Months Ended December 31, 2015
$21.8 million of cash and cash equivalents as at December 31, 2015
Revenues of US$ 12.1 million for Q4 2015
Adjusted EBITDA of US$ (1.5) million for Q4 2015
Coronas Operational Highlights for the Three Months Ended December 31, 2015:
Total tonnes processed: 193,710
Silver equivalent production of 1.2 million ounces
Copper equivalent production of 8.3 million pounds
The restructuring process at the Yauricocha Mine has continued to temporarily depress throughput and
grades, resulting in significantly lower production of all metals during Q4 2015. The decrease in production
was primarily due to lower ore grades being mined and throughput interruption caused by the
management of water control issues. The Company continued to focus on the improvement of mine
sequencing, improvements to safety, design and the introduction of mechanized mining methods to the
Mine. These implementations will enable the Company to benefit from best practices and production
increases in the future.
Corona reported weaker financial and production results for the quarter as a consequence of lower metal
prices and the introduction of important operational improvements that have temporarily impacted
production levels, but that aim to structurally improve our operations and production capabilities, stated
Mark Brennan, President and CEO of Sierra Metals.
He continued, Corona continues to have a solid balance sheet and strong liquidity despite the challenges
it faced in the second half of the year. It is a testament to the quality of the Yauricocha Mine that we have
been able to meet our 2015 guidance in spite of the unanticipated need for a major restructuring program
at the mine. The Yauricocha Mine shall continue to deliver growth for the Company and its shareholders
with continued brownfield exploration success such as the recently announced Esperanza Zone discovery
as well as from our production optimization program.

The following table displays selected unaudited financial information for the three months and year
ended December 31, 2015:
(In thousands of US dollars, except cash cost and revenue

Three Months Ended

per tonne metrics)

Revenue
Adjusted EBITDA (1)
Cash Flow from operations
Gross profit (loss)
Income Tax Recovery (Expense)
Net Income (loss)

Net revenue per tonne of ore milled (2)

Cash cost per tonne of ore milled (2)
Cash cost per silver equivalent payable ounce (2)
All-In Sustaining Cost per silver equivalent payable ounce
Cash cost per copper equivalent payable pound (2)

(2)

All-In Sustaining Cost per copper equivalent payable pound

(2)

12,140
(1,453)
(4,794)
(272)
364
(4,441)

28,073
12,498
10,469
18,202
(5,251)
8,416

80,113
24,901
14,926
27,611
(7,953)
7,532

119,027
59,364
47,557
64,202
(18,717)
29,782

62.67
54.55

124.79
51.05

96.26
52.03

134.42
48.95

10.03
17.77
1.50

6.31
12.61
0.95

7.45
14.11
1.12

4.34
10.60
0.65

2.67

1.89

2.12

1.59

December 31, 2015 December 31, 2014

(In thousands of US dollars, unless otherwise stated)

Cash and cash equivalents
Assets
Liabilities
Equity

Year Ended

December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014

21,818
105,099
53,093
52,006

28,672
111,811
62,449
49,362

Adjusted EBITDA includes adjustments for depletion and depreciation, interest expense and other financing costs, interest
income, share-based compensation, Foreign Exchange (gain) loss and income taxes; see non-IFRS Performance Measures
section of the Companys MD&A.
2
All-In Sustaining Cost per silver equivalent payable ounce and copper equivalent payable pound are non-IFRS performance
measures and include cost of sales, treatment and refining charges, sustaining capital expenditures, general and administrative
expense, and selling expense, and exclude workers' profit sharing, depreciation and other non-cash provisions; Cash cost per silver
equivalent payable ounce and copper equivalent payable pound, net revenue per tonne of ore milled, and cash cost per tonne of
ore milled are non-IFRS performance measures; see non-IFRS Performance Measures section of the Companys MD&A.

Coronas Financial Highlights for the Three Months and Year Ended December 31, 2015

Cash and cash equivalents of US$ 21.8 million as at December 31, 2015 compared to US$ 28.7
million as at December 31, 2014. Cash and cash equivalents decreased by US$ 6.9 million. This was
mainly driven by US$ 14.9 million of operating cash flow offset by US$ 12.1 million of capital
expenditures and US$ 9.3 million of financing activities, including dividends paid of US$ 4.9 million;
Revenues of US$ 12.1 million for Q4 2015 compared to US$ 28.1 million in Q4 2014 and revenues
of US$ 80.1 million for the year ended December 31, 2015 compared to US$ 119.0 million for the
same period in 2014. The decrease in revenue was due to the decrease in production, decrease in
head grades for all metals, and the decreases in the price of silver (17%), copper (19%), lead (14%),
zinc (9%) and gold (8%) during 2015 compared to 2014.
Cash cost per silver equivalent payable ounce (at the Yauricocha Mine) of US$10.03 for Q4 2015
compared to US$6.31 for Q4 2014 and US$ 7.45 for the year ended December 31, 2015 compared
to US$ 4.34 for the same period in 2014. All-in sustaining cost (AISC) per silver equivalent payable
ounce of US$ 17.77 for Q4 2015 compared to US$ 12.61 for Q4 2014 and US$ 14.11 for the year
ended December 31, 2015 compared to US$ 10.60 for the same period in 2014. The increase in AISC
during Q4 and the year ended December 31, 2015 was due to the decrease in plant throughput and
ore feed head grades due to the decrease in available production from higher grade zones in the
Mine; and additional costs related to the mechanization and water management controls continuing
to be implemented at the Mine;
Adjusted EBITDA of US$ (1.5) million for Q4 2015 compared to US$ 12.5 million for Q4 2014 and
US$ 24.9 million for the year ended December 31, 2015 compared to US$ 59.4 million for the same
period in 2014. The decrease in adjusted EBITDA for 2015 is due to the decrease in plant throughput,
head grades and metal prices for all metals, and the increase in costs, previously discussed,

Sierra Metals Inc.

Operating cash flow of US$ (4.8) million for Q4 2015 compared to US$ 10.5 million for Q4 2014 and
US$ 14.9 million for the year ended December 31, 2015 compared to US$ 47.6 million for the same
period in 2014;
Net loss of US$ (4.4) million, or US$ (0.12) per share, for Q4 2015 compared to net income of US$
8.4 million, or US$ 0.23 per share, for Q4 2014. Net income of US$ 7.5 million, or US$ 0.21 per share,
for the year ended December 31, 2015 compared to US$ 29.8 million, or US$ 0.83 per share, for the
same period in 2014.

Coronas Operational Highlights for the Three Months and Year Ended December 31, 2015:
The following table displays the production results for the three months and year ended December 31,
2015:
Yauricocha Production

3 Months Ended
Dec 31, 2015 Dec 31, 2014

12 Months Ended
% Var.

Dec 31, 2015 Dec 31, 2014

% Var.

Tonnes processed (mt)

Daily throughput

193,710
2,214

224,986
2,571

-14%
-14%

832,225
2,378

885,495
2,545

-6%
-6%

Silver ounces
Copper pounds (000's)
Lead pounds (000's)
Zinc pounds (000's)
Gold ounces

287,140
1,047
6,814
9,265
1,041

595,340
2,304
11,632
13,399
1,360

-52%
-55%
-41%
-31%
-23%

1,791,056
5,567
39,430
42,077
5,018

2,121,565
7,697
46,714
54,256
5,683

-16%
-28%
-16%
-22%
-12%

Silver equivalent ounces (000's) (1)

1,239

2,157

-43%

6,614

8,194

-19%

Copper equivalent pounds (000's) (1)

8,259

14,378

-43%

44,094

54,625

-19%

(1) Silver equivalent ounces & copper equivalent pounds were calculated using the following metal prices: $20/oz Ag, $3.00/lb Cu, $0.85/lb Pb, $0.95/lb Zn,
$1,250/oz Au.

Quality Control
All production technical data contained in this news release has been reviewed and approved by Gordon
Babcock, P.Eng., Chief Operating Officer and a Qualified Person under National Instrument 43-101
Standards of Disclosure for Mineral Projects.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on precious and base metals from its
Yauricocha Mine in Peru, its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring
several precious and base metal targets in Peru and Mexico. Projects in Peru include Adrico (gold),
Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha property in the province of Yauyos and
the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state
of Sonora, and La Verde (gold) at the Batopilas property in the state of Chihuahua.
The Companys shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange under
the symbol SMT.

For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
Mike McAllister
Director, Corporate Development
Sierra Metals Inc.
1 (416) 366-7777
info@sierrametals.com

Ed Guimaraes
CFO
Sierra Metals Inc.
1 (416) 366-7777

Mark Brennan
President & CEO
Sierra Metals Inc.
1 (416) 366-7777

Forward-Looking Statements
Except for statements of historical fact contained herein, the information in this press release may constitute forwardlooking information within the meaning of Canadian securities law. Statements containing forward-looking
information express, as at the date of this news release, the Companys plans, estimates, forecasts, projections,
expectations or beliefs as to future events or results. These statements reflect the Companys current views with
respect to future events and are necessarily based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Actual results might differ materially from results suggested in
any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or
to update the reasons why actual results could differ from those reflected in the forward-looking statements unless
and until required by securities laws applicable to the Company. Additional information identifying risks and
uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available
at www.sedar.com.