VANCOUVER, June 21, 2013 /PRNewswire/ - Sierra Metals Inc. (TSX-V:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to announce its second quarterly cash dividend of approximately CAD$2.5 million, or CAD$0.016 per common share of the Company (each a "Common Share"), payable on or about July 31, 2013 to the holders of the issued and outstanding Common Shares as of the close of business on June 28, 2013.
Daniel Tellechea, President and CEO of Sierra Metals, commented : " Sierra Metals is very pleased to announce its second cash dividend payment to shareholders of $2.5 million. With the announcement of the Cusi Mine achieving commercial production in January of 2013, the Company now has three mines in commercial production and continues to increase the production profile at all operations. We are excited about the potential that the Cusi Mine has to increase total silver production and cash flows in the future as Sierra Metals continues to strive towards its objective of becoming a mid-tier silver producer in Latin America."
Sierra Metals announced its annual cash dividend policy of approximately CAD$10 million, or $0.064 per Common Share, for 2013 on February 12, 2013. The Company established a dividend policy as a result of consistent cash flows from its Peruvian operations and the transition of its Mexican operations into commercial production. These strong cash flows are the result of the acquisition of Sociedad Minera Corona S.A. as well as improvements in production and operating efficiencies in Mexico
The declaration and payment of future dividends will be subject to the Company's cash requirements, as well as the satisfaction of statutory solvency tests. In addition, the Company's board of directors will assess future years' dividend payout levels, from time to time, in light of the Company's financial performance and its current and anticipated business needs at such time.