Sierra Metals Announces First Quarter 2015 Financial Results of its Subsidiary Sociedad Minera Corona in Peru

VANCOUVER, April 30, 2015 /CNW/ - 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 first quarter of 2015 ("Q1 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.

Corona's Financial Highlights for the Three Months Ended March 31, 2015

• Net Income of US$ 4.7 million or US$ 0.13 per share for Q1 2015;
• Adjusted EBITDA of US$ 10.3 million for Q1 2015;
• Operating cash flow of US$ 4.6 million for Q1 2015;
• Revenues of US$ 22.6 million for Q1 2015; and
• Cash cost (recovery) per silver payable ounce of US$ (7.40) at the Yauricocha Mine for Q1 2015.

"Corona continues to report strong results again this quarter with a 2% increase in ore throughput while maintaining high levels of metal production and a strong balance sheet" stated Mark Brennan, President and CEO of Sierra Metals. "Higher silver head grades and higher recoveries mitigated the decline in metals prices and have resulted in another quarter of positive operating cash flow. Corona continues on the path to meet its production guidance for 2015 by remaining a low cost producer while continuing to demonstrate the Yauricocha mine's full economic potential."

The following displays selected unaudited financial information for the three months ended March 31, 2015:

		3 Months Ended
(In thousands of US dollars, except cash cost per ounce)		March 31, 2015	March 31, 2014
Revenue	$	22,569	27,908
Adjusted EBITDA^1		10,263	12,913
Cash Flow from operations		4,622	8,842
Gross profit		10,418	12,966
Income Tax Expense		(3,140)	(3,487)
Net Income		4,693	6,192
Cash cost (recovery) per silver payable ounce (Yauricocha)^2	$	(7.40)	(21.11)
(In thousands of US dollars, unless otherwise stated)		March 31, 2015	December 31, 2014
Cash and cash equivalents	$	29,042	28,672
Assets		111,006	111,811
Liabilities		56,951	62,449
Equity		54,055	49,362

^1	Adjusted EBITDA is a non-IFRS performance measure and is defined by management as EBITDA adjusted for non-cash and non-recurring items; see non-IFRS Performance Measures section of the Company's MD&A.
^2	Cash costs per silver payable ounce is a non-IFRS performance measure and includes cost of sales, treatment and refining charges, and selling expense, and exclude workers' profit sharing, depreciation and other non-cash provisions; see non-IFRS Performance Measures section of the Company's MD&A.

Corona's Financial Highlights for the Three Months Ended March 31, 2015

• Net income of US$ 4.7 million or US$ 0.130 per share for Q1 2015 compared to US$ 6.2 million or US$ 0.172 per share for the same period in 2014;
• Revenues of US$ 22.6 million for Q1 2015 compared to US$ 27.9 million for the same period in 2014. The decrease in revenue was mainly due to the decreases in the prices of silver, copper, lead and gold in Q1 2015 compared to Q1 2014 of 17%, 16%, 15% and 5%, respectively. This was partially offset by a 2% increase in plant throughput and higher head grades and recoveries of silver which resulted in a 25% increase in silver payable ounces;
• Cash cost (recovery) per silver payable ounce of US$ (7.40), at the Yauricocha Mine, for Q1 2015 compared to US$ (21.11) for the same period in 2014. The increase in cash costs during Q1 2015 was due to the reduction of by-product credits which were the result of the lower metal prices discussed previously, lower zinc head grades, partially offset by the increase in silver payable ounces during the quarter;
• Adjusted EBITDA of US$ 10.3 million for Q1 2015 compared to US$ 12.9 million for the same period in 2014. The decrease in adjusted EBITDA for Q1 2015 is mainly due to the decrease in revenues previously discussed;
• Operating cash flow of US$ 4.6 million for Q1 2015 compared to US$ 8.8 million for the same period in 2014; and
• Cash and cash equivalents of US$ 29.0 million as at March 31, 2015 compared to US$ 28.7 million as of December 31, 2014. Cash and cash equivalents increased by US$ 0.4 million which was mainly driven by US$ 4.6 million of operating cash flow, offset by US$ 2.8 million of capital expenditures and US$ 1.2 million of financing activities.

Corona's Operational Highlights for the Three Months Ended March 31, 2015:

• Total tonnes processed of 219,969; a 2% increase over Q1 2014
• Silver production of 549,973 ounces; an 11% increase over Q1 2014
• Copper production of 1.7 million pounds; consistent with Q1 2014
• Lead production of 11.7 million pounds; consistent with Q1 2014
• Zinc production of 10.5 million pounds; a 18% decrease over Q1 2014
• Gold production of 1,587 ounces; an 8% increase over Q1 2014

The following table displays the production results for the three months ended March 31, 2015:

Yauricocha Production	3 Months Ended
	March 31, 2015	March 31, 2014	% Var.
Tonnes processed	219,969	215,550	2%
Silver (oz)	549,973	494,294	11%
Copper (000 lb)	1,712	1,739	-2%
Lead (000 lb)	11,738	11,683	0%
Zinc (000 lb)	10,461	12,732	-18%
Gold (oz)	1,587	1,474	8%

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 Company's shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange under the symbol "SMT".

Forward-Looking Statements

Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. These statements reflect the Company's 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.

SOURCE Sierra Metals Inc.

regarding Sierra Metals, please visit www.sierrametals.com or contact: Mike McAllister, Director of Corporate Development, Sierra Metals Inc., 1 [phone], [email protected]; Ed Guimaraes, CFO, Sierra Metals Inc., 1 [phone], Email: [email protected]; Mark Brennan, President & CEO, Sierra Metals Inc., 1 [phone], Email: [email protected]