TSX: SMT | OTCQX: SMTSF

Q4 & Full Year 2023 Results

Zn

Zinc

Cu

Copper

Pb

Lead

Conference Call & Webcast

Ag

Silver

Au

Gold

March 18, 2024

Forward Looking Information

Certain statements in this presentation constitute forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra Metals Inc. ("Sierra" or the "Company") and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur" or "be achieved" or the negative of these words or comparable terminology.

These forward-looking statements include, but are not limited to: future production of silver, gold, lead, copper and zinc (collectively, the "metals"); future cash costs per ounce or pound of the metals; the price of the metals; the effects of domestic and foreign laws, regulations and government policies and actions affecting the Company's operations or potential future operations; future successful development of the Yauricocha Mine, the Bolivar Mine and the Cusi Mine and other exploration and development projects; relationships with and claims by local communities and indigenous populations; the sufficiency of the Company's current working capital, anticipated operating cash flow or the Company's ability to raise necessary funds; estimated production rates for the metals produced by the Company; timing of production; the estimated cost of sustaining capital; ongoing or future development plans and capital replacement, improvement or remediation programs; the estimates of expected or anticipated economic returns from the Company's mining projects; future sales of the metals, concentrates or other future products produced by the Company; implementation of programs; effects of renegotiation and termination of contracts or sub-contracts; refinancing of debt obligations (and the timing of same); future breaches of debt covenants; the Company's ability to obtain waivers for any potential future breaches of its debt covenants; the Company's ability to increase safety and employee engagement and the Company's plans and expectations for its properties and operations.

Such forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in such forward-looking information, including, without limitation, risks with respect to: liquidity and going concern risks and risks related to the inability of the Company to obtain waivers for any potential future breaches of its debt covenants; risk of foreign operations; burden of government regulation and permitting; operating hazards and risks; precious metal and base metal price fluctuation; mining operations; infrastructure; exploration and development; uncertainty of calculation of reserves and sources and metal recoveries; replacement of reserves and resources; fluctuations in the price of consumed commodities; no defined mineral reserves at the Cusi mine; political risks; risks relating to outstanding borrowings; uncertainty of title to assets; environmental risks; litigation risks; insurance risks; competitive risks; volatility in the price of the common shares of the Company; Corona not being a wholly-owned subsidiary; global financial risks; employee recruitment and retention; reliance on key personnel and labour relations; potential conflict of interest; significant shareholders; third party reliance; claim under U.S. securities laws; potential dilution of present and prospective shareholdings; currency risks; risks related to cyclical business; financial reporting standards; credit risks; climate change; COVID-19; and cyber security risks. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and are inherently uncertain, and the Company's actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those discussed under "Risk Factors" in the Company's annual information form dated March 28, 2023 for its fiscal year ended December 31, 2022, which is available on SEDAR at www.sedar.com.

Although Sierra has attempted to identify important factors that could cause actual performance to differ materially from forward-looking information, there may be other factors that cause the Company's performance not to be as anticipated. Sierra neither intends nor assumes any obligation to update these statements containing forward-looking information to reflect changes in assumptions or circumstances other than as required by applicable law. There can be no assurance that forward-looking information will prove to be accurate as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking information.

This presentation may use the terms "measured", "indicated" and "inferred" to refer to "measured resources", "indicated resources" and "inferred resources", respectively, as such terms are recognized under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") adopted by the Canadian Securities Administrators. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies, except for a "preliminary assessment" as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

The technical data and information in this presentation was reviewed by Ricardo Salazar Milla, Corporate Manager of Mineral Resources, a member of the Australian Institute of Geoscientist and a Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

2

Forward Looking Information (Continued)

CAUTIONARY NOTE TO U.S. INVESTORS

This presentation has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of the U.S. securities laws. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this presentation are Canadian mineral disclosure terms as defined in accordance with NI 43-101 under the guidelines set out in the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines, May 2014 (the "CIM Definition Standards"). The CIM Definition Standards differ significantly from the historic standards in the United States included in U.S. Securities and Exchange Commission (the "SEC") Industry Guide 7.

The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange Act of 1934, as amended. These amendments became effective February 25, 2019 (the "SEC Modernization Rules") with compliance required for the first fiscal year beginning on or after January 1, 2021. Under the SEC Modernization Rules, the historical property disclosure requirements for mining registrants included in SEC Industry Guide 7 will be rescinded and replaced with disclosure requirements in subpart 1300 of SEC Regulation S-K. The Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards.

As a result of the adoption of the SEC Modernization Rules, the SEC will recognize estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources." In addition, the SEC has amended its definitions of "proven mineral reserves" and "probable mineral reserves" to be "substantially similar" to the corresponding definitions under the CIM Definition Standards that are required under NI 43-101. Accordingly, during the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or mineral reserves contained or referenced in this presentation may not be comparable to similar information made public by companies that report in accordance with U.S. standards. While the above terms are "substantially similar" to definitions under the CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

NON-IFRS MEASURES

Adjusted EBITDA and All-in Sustaining Costs are non-IFRS financial measures with no standardized meaning under International Financial Reporting Standards ("IFRS") and might not be comparable to similar financial measures disclosed by other issuers. Further information relating to these Non-IFRS financial measures is incorporated by reference from the "Non-IFRS Performance Measures" section of Sierra's MD&A for the three months ended March 31, 2023 dated May 11, 2023 filed with the Canadian securities regulatory authorities on SEDAR available at www.sedar.com.

NOTES

•

•

All dollar amounts are in US dollars unless otherwise denoted.

Cusi mine has been classified as a non-core asset so its results are not included in the consolidated results and in 2023 and 2024 guidance. The mine has been classified as Discontinued Operations in the financial statements with the historical results reclassified.

3

Safety - Our #1 Priority

A Relentless Pursuit to Safety

Frequency Index (1)

Yauricocha

Bolivar

3

14

2.85

11.78

2.55

12

2.5

10

8

4.69

2

6

1.82

4

3.22

1.5

2

2021

2022

2023

2021

2022

2023

Frequency index= the total number of occupational accidents (with or without lost time) that occur in an organization per million hours worked

4

Successful Turnaround

Highlights

  • Bolivar's ramp-up to 5,000 tpd steady state
  • Yauricocha Level 1120 permit
  • Cusi - divestment process
  • Replaced mined resources by +100%
  • Debt Refinancing
  • C$16 million Equity Financing
  • Uplisting to the OTCQX
  • Share Price Increase +200%

5

Consolidated: Operating Highlights

Q4 2023

Q3 2023

Q4 2022

Q4 - Q4

FY 2023

FY 2022

Yr - Yr

Change

Change

Tonnes processed

673,846

622,622

422,899

59%

2,464,932

1,995,890

24%

- Daily throughput

7,701

7,116

4,833

7,043

5,703

Copper production (k lbs)

12,096

9,477

6,170

96%

40,317

27,127

49%

Zinc production (k lbs)

9,629

11,176

6,367

51%

43,612

38,100

14%

Silver production (koz)

468

458

227

106%

1,838

1,218

51%

Gold production (oz)

4,708

3,651

3,240

45%

16,461

9,361

76%

Lead production (k lbs)

2,481

4,084

1,749

42%

13,273

12,216

9%

Copper equivalent pounds

21,134

18,496

11,903

78%

76,749

56,116

37%

(000's) (1)

  1. Copper equivalent pounds were calculated using the following realized prices: Q4 2023 - $3.70/lb Cu, $1.13/lb Zn, $23.22/oz Ag, $0.96/lb Pb, $1,976/oz Au. Q3 2023 - $3.78/lb Cu, $1.10/lb Zn, $23.56/oz Ag, $0.98/lb Pb, $1,927/oz Au. Q4 2022 - $3.63/lb Cu, $1.37/lb Zn, $21.21/oz Ag, $0.95/lb Pb, $1,730/oz Au. FY 2023 - $3.85/lb Cu, $1.20/lb Zn, $23.38/oz Ag, $0.97/lb Pb, $1,943/oz Au. FY 2022 - $3.99/lb Cu, $1.59/lb Zn, $21.77/oz Ag, $0.98/lb Pb, $1,802/oz Au.

6

Bolivar: Operating Highlights

Q4 2023

Q3 2023

Q4 2022

Q4 - Q4

FY 2023

FY 2022

Yr - Yr

2023 Guidance

Change

Change

Tonnes processed

409,995

362,890

270,311

52%

1,477,889

941,910

57%

n/a

Cash costs (CuEq payable pound) (1)

$1.90

$2.15

$1.76

8%

$1.87

$2.99

(37%)

$1.92 - $2.05

AISC (CuEq payable pound) (1) (2)

3.47

$3.57

$3.69

(6%)

$3.29

$5.07

(35%)

$3.02 - $3.25

Copper equivalent pounds (000's) (1)

10,188

8,100

6,432

58%

36,644

16,931

116%

34,500 - 39,500

Increasing productivity and reducing costs

    • Started new tailings dam project
    • Increased development improving availability of stopes
    • Improved water recovery using 50% less fresh water
    • Upgraded definition drilling that improved the modelling process
    • Purchased new blasting equipment
  2. Copper equivalent pounds were calculated using the following realized prices:

Q4 2023 - $3.70/lb Cu, $1.13/lb Zn, $23.22/oz Ag, $0.96/lb Pb, $1,976/oz Au; Q3 2023 - $3.78/lb Cu, $1.10/lb Zn, $23.56/oz Ag, $0.98/lb Pb, $1,927/oz Au; Q4 2022 - $3.63/lb Cu, $1.37/lb Zn, $21.21/oz Ag, $0.95/lb Pb, $1,730/oz Au; FY 2023 - $3.85/lb Cu, $1.20/lb Zn, $23.38/oz Ag, $0.97/lb Pb, $1,943/oz Au; FY 2022 - $3.99/lb Cu, $1.59/lb Zn, $21.77/oz Ag, $0.98/lb Pb, $1,802/oz Au.

(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.

7

Yauricocha: Operating Highlights

Q4 2023

Q3 2023

Q4 2022

Q4 - Q4

FY 2023

FY 2022

Yr - Yr

2023 Guidance

Change

Change

Tonnes processed

263,851

259,732

152,586

73%

987,043

1,053,980

(6%)

n/a

Cash costs (CuEq payable pound) (1)

$1.84

$2.08

$3.16

(42%)

$2.05

$2.23

(8%)

$1.81 - $1.88

AISC (CuEq payable pound) (1) (2)

$3.47

$3.75

$5.02

(31%)

$3.56

$3.69

(4%)

$3.05 - $3.60

Copper equivalent pounds (000's) (1)

10,946

10,396

5,471

100%

40,105

39,185

2%

40,000 - 44,000

•

•

•

•

•

Increasing productivity and reducing costs

Increased availability of stopes

Improved main ventilation and pumping infrastructure Optimized mine haulage cycle with dumper trucks Improved mine development

Improved copper recovery

  1. Copper equivalent pounds were calculated using the following realized prices:

Q4 2023 - $3.70/lb Cu, $1.13/lb Zn, $23.22/oz Ag, $0.96/lb Pb, $1,976/oz Au; Q3 2023 - $3.78/lb Cu, $1.10/lb Zn, $23.56/oz Ag, $0.98/lb Pb, $1,927/oz Au; Q4 2022 - $3.63/lb Cu, $1.37/lb Zn, $21.21/oz Ag, $0.95/lb Pb, $1,730/oz Au; FY 2023 - $3.85/lb Cu, $1.20/lb Zn, $23.38/oz Ag, $0.97/lb Pb, $1,943/oz Au; FY 2022 - $3.99/lb Cu, $1.59/lb Zn, $21.77/oz Ag, $0.98/lb Pb, $1,802/oz Au.

(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.

8

Developing below Level 1120

  • Permit obtained February 21, 2024
  • Access to a larger ore body
  • Allows for bulk mining utilizing sub-level caving methods that will increase throughput and lower costs
  • Up to 9 months to develop
  • Increase throughput by 40% to 3,600 tpd

9

Consolidated Financial Highlights

$ millions

Q4 2023

Q3 2023

Q4 2022

Q4 - Q4

FY 2023

FY 2022

Yr - Yr

Change

Change

Revenue from metals payable

60,632

56,963

38,274

58%

229,543

165,233

39%

Adjusted EBITDA from continuing operations (1)

12,233

8,080

(675)

50,289

9,621

Adjusted net income (loss) per share attributable to

$(0.04)

$(0.01)

$(0.03)

$0.01

$(0.13)

shareholders (1)

Net loss, excluding discontinued operations

(11,266)

(2,758)

(7,996)

(6,567)

(60,140)

Operating cash flows before movements in working capital

12,845

6,013

2,860

43,297

5,163

•

•

•

•

Improving our Financial Position

Final stage of term loan restructuring Cusi divestment process underway Private placement of C$ 16 million Positive cash flow from operations

(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.

10

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Sierra Metals Inc. published this content on 18 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 15:03:05 UTC.