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Sierra Metals Inc. (SMTS -0.02%)
Q1Â 2022 Earnings Call
May 12, 2022, 11:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Hello, everyone. And a warm welcome to the Sierra Metals' first quarter 2022 financial results call. My name is Stephanie and I'll be your operator today. [Operator instructions] I will now hand the floor over to Christina Papadopoulos, manager of investor relations at Sierra Metals.
Christina, over to you.
Christina Papadopoulos -- Manager, Investor Relations
Thank you and good morning, everyone. Welcome to Sierra's first quarter 2022 results conference call. On today's call, we are joined by Luis Marchese, our CEO; and Ed Guimaraes, our CFO. Today's call will be followed by a question-and-answer period.
The accompanying presentation for today's call is available for download through the webcast or from the company's website at sierrametals.com. Yesterday's press release for financial statements and the management's discussion and analysis are also posted on the company's website. I'd like to note that this earnings call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs. The forward-looking information is subject to a number of risks, uncertainties, and other factors.
Actual results could differ materially from our conclusions, forecasts, or projections as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusions, forecasts, or projections in the forward-looking information, and the material factors, or assumptions that are applied in drawing a conclusion or making a forecast are projected and reflected in the forward-looking information is contained in the company's annual information form, which is publicly available on SEDAR, EDGAR, Via Form 40F, or the company's website. Please note that all dollar amounts mentioned on today's call are in US dollars unless otherwise noted. I'd now like to turn the call over to our CEO, Luis Marchese for an overview of the quarter's highlights, as well as a summary of what's ahead for the remainder of 2022, followed by Ed Guimaraes, our CFO for financial highlights.
Luis Marchese -- Chief Executive Officer
Thank you, Christina, and good morning, everyone. Looking at Slide 4, during the first quarter the company's operations continued to feel the impact of COVID-related issues. In particular, Yauricocha, a further significant reduction in mining and service personnel, prompted further delays in mine development and affected the preparation of various deliveries. These restrictions, coupled with the expected reduced ore grades due to limitations in accessing high-grade ore areas, which affected a 38% decrease in copper equivalent production during the quarter.
We've continued efforts to safeguard the health of our employees to operate safely, and we have seen a significant improvement inconsistent [Inaudible]. Vaccination efforts continue, with 100% of personnel at Yauricocha now fully vaccinated with two doses. At Bolivar and Cusi most personnel are vaccinated with at least two doses, with plans to achieve full vaccination by the end of Q3 2022. During the second quarter of the year at Yauricocha, we expect to be able to make up for the lower production we've seen early in the year due to the personnel challenges, and we plan to operate throughput levels that will allow us to target our permitted capacity of 53,000 tonnes per day.
The discovery of the new high grade [Inaudible] will help boost our throughput levels, as well as grades. The new zone is that gave us into the current mining operation located laterally between the Cachi Cachi and Esperanza zone, and can be decently incorporated into the mine plan. We have picked [Inaudible] these orebodies as early as Q3, 2022. At Bolivar, the full turn-around time continues, and as we progress we expect to see an improvement throughout the year.
The first quarter was particularly difficult as we reached the [Inaudible] of the Bolivar west zone and these four zones within the mineral field. With a 50% reduction improvement, there is a 54% decrease in corporate gross margin. [Inaudible] increasing and mine developing becomes really in the previous quarters and years. Both [Inaudible] and grades have suffered.
As we move into the full turnaround of the operation, we were expecting that performance may worsen before we saw improvement. However, by the end of this first quarter, mining began at the Bolivar northwest zone, and we suspected to provide ore for the next several quarters, which will support our plans for incremental production increases. We can prove great at Bolivar an up to 5,000 tonnes per day by year-end. While production increases for the mine, further investment is done at the mine to correct the drilling and development backlog, update the operating facilities and our auxiliary services, improve processes, and upgrade housing facilities, among several other initiatives.
And finally, we have seen a substantial improvement in our Cusi operations so far this year. With investments into the mine's infrastructure last year [Inaudible] with the addition of our raised board alleviating high temperatures of depth where most operations are taking place. A 15% increase in throughput during the first quarter, coupled with the mining of slightly higher grade, resulted in a 57% increase in silver equivalent production for the same period last year. This is a performance that no doubt helped support the consolidated production profile of the company during the quarter, especially as we continued our operational recovery at Bolivar.
We had anticipated the timing of at least two quarters before our Bolivar operations saw an improvement, and we plan our guidance accordingly. We can report that despite a 38% in creating consolidated copper equivalent production during the first quarter, we are on track to reach the company's first cost production guidance of 54 million to 59.5 million corporate earning pounds. Looking ahead to 2022. Turning to Slide 5.
[Inaudible] Yauricocha, despite anything, restrictions to mining or levels of the mine were higher graded fifth. We are focused on reaping maximum levels of throughput at 56,000 tonnes per day. The highest throughput along we've mining 51 ore from the new high-grade for [Inaudible] will positively impact our ability to reach the yearly target. Our focus at Yauricocha remains the same.
Finding new and other ways to use and deliver at full capacity within our current mining constraints, especially with continued strength in metals prices. We expect that we will make up for our least production during the early part of the first quarter of the Yauricocha. And will start to meet our guidance of between 45 and 49 million corporate equivalent pounds. While the new [Inaudible] is suspected to provide a making margin for the new year, our exploration building campaign continues with a focus on the original high-value target.
Moreover, [Inaudible] of the new 1,500 additional meters is proposed for Fortuna to further analyze the ore value and potentially find correlations with the structural patterns and the physical information that may lead to finding the additional high-value target. The structured price also continues in Yauricocha, including work on the Yauricocha shaft, and ventilation infrastructure, and they require expansion, and we're doing it now. At Bolivar, we continue to work on our plans to increase the throughput of our quarterly data, we've attained a year target of 5,000 tonnes per day. Improve production, we anticipated in the second half of the year in the Bolivar northwest zone supporting the bulk of production.
Additionally, with the reaction of the development [Inaudible] at the mine and the installation of a new [Inaudible] location, the [Inaudible] is to get Bolivar to a point where you can take a rate of 5,000 tonnes per day in 2023. [Inaudible] our strategy is fleet and the actual timing may change as priorities in our operations has turnover shift. For the time being, our focus is to continue the infill drilling problem to upgrade the classification for ore, we improve the quality of the [Inaudible]. We continue with additional mine development to regain access to ore and provide manufacturing needs, which could mean an increase in the purchase value, including ventilation, communication, [Inaudible], the integration plan of connecting the mine to the plant, and development branch, and plant improvements.
In terms of operations, the company is focused on two areas, Bolivar needs a year of high-grade theme silver and gold where we expected to initiate that drilling campaign later this year, and [Inaudible] a high-grade [Inaudible] system for silver and gold, which can provide mineral values to support the Bolivar mine. We've improved operating efficiencies around the time of production and continued strength in metal prices, we're optimistic that we will see a stronger revenue contribution from Bolivar by the end of the year and into 2023. At Cusi [Inaudible] continue mine development and processing optimization to target throughput of 1,200 tonnes per day. Infill drilling continues in order to support the development of the Santa Rosa [Inaudible] and northeast trail.
Additional projects include equipment replacements and continues land development. We can report that the mine is on track, with this production guidance within 1.75 million from 1.55 million silver equivalent ounces. And as we expect that it will continue to provide a positive contribution toward the company's EBITDA. And with that, I will now turn to Ed to review the first quarter financial highlights.
Ed Guimaraes -- Chief Financial Officer
Thanks, Luis, and good morning, everyone. Turning to Slide 6. With the continued impact of COVID-19 on our employees and operations during the early months of the year, we reported a 24% decrease in our consolidated throughput. And with a decline in all grades except for copper, this equated to a 38% decrease in consolidated copper equivalent production compared to the first quarter of 2021.
Although strong metal prices continued they were not able to fully offset the decline in production and revenue from metals payable, which decreased 18% when compared to Q1 2021. Adjusted EBITDA was $16 million, a 43% decrease resulting from lower revenues and lower gross margins when compared to Q1 2021. We reported a net income attributable to shareholders of $0.4 million or $0.00 per share and an adjusted net income of $5.9 million or $0.4 per share. We finished the quarter with approximately $19.5 million in cash.
Our three-month revenue mix by metal continues to be led by copper, followed by silver and zinc at 41%, 28%, and 19%, respectively. Lead and gold continue to contribute revenue in line with previous quarters, at 7% and 5% respectively. Looking at the average realized prices compared to Q1 2021, we continue to see an improvement in copper, driven by global infrastructure supply demand, and the green energy revolution. Silver realized prices lagged slightly with a 9% decrease, while gold increased a modest 5%.
Zinc and lead saw a strong increase of 36% and 15%, respectively. Turning now to Slide 7, compared to Q1, 2021, a 48% increase in cash costs and a 41% increase in own, saving costs was driven by a 37% decrease in copper equivalent payable pounds at Yauricocha. Given our inability to mine in higher-grade zones over the past few quarters, we have seen a downward trend of grades in Yauricocha, which continued to result in increased costs when comparing Q1 2022 to the last quarter. In addition to lower grades, throughput in the first quarter of 2022 was also impacted by the core performance of a mining contract.
Mines times were below targets, and the mine had to resort to stockpiles, which also negatively impacted grades. [Inaudible] was also impacted to some extent by a nationwide transportation strike during the last week of March that resulted in an increase in unsold concentrate inventory at quarter-end. Had this event not developed cash costs would've been closer to $2 per pound. At Bolivar, cash costs increased by 187% and all-in sustaining costs by 152%.
Driven by a 56% decrease in copper equivalent payable pounds, which resulted in higher operating costs per tonne. When compared to Q4, 2021 Bolivar's cash costs have improved by 14%, and all-in sustaining costs by 15% while tonnage decreased by 18%, higher grades this quarter, while still significantly lower compared to Q1 2021, compensated slightly and improved costs. Overall, this is a positive trend for our turnaround program as we are seeing improvements at quarter-over-quarter. At Cusi, as mentioned earlier, investments into the mine last year have provided for increased operating efficiencies so far this year.
A 49% increase in silver equivalent payable ounces resulted in a decline in both cash costs and all-in sustaining costs by 28% and 34% respectively when compared to Q1 2021. Looking at a comparison to Q4, 2021, cash cost increased 14% while throughput increased by 4% quarter-over-quarter. The cost of inputs also increased. With global inflation and the impact of the ongoing Russia and Ukraine conflict, the cost of fuel, explosives, and drilling equipment has also increased.
Silver equivalent payable ounces recorded during the quarter were in line with the previous quarters. However, the increase in cash costs resulted in higher cash costs per unit. On the other hand, all-in sustaining costs decreased by 5% when compared to Q4, 2021. Costs related to treatment and refining charges and general and administrative products, as well as sustaining capital expenditures, decreased, resulting in a lower all-in sustaining cost per ounce.
In conclusion, on Slide 8, the company reported $19.5 million in cash as of March 31, 2022. Our total debt at the end of the first quarter was $81.1 million, with net debt of $61.6 million. Cash and cash equivalents decreased during the quarter due to $3.9 million used in operating cash activities, $10.7 million used in investing activities, and $0.9 million used in financing activities. The company has further access to available credit lines with local banks, as well as other short-term lines, and prepayment facilities with its commercial off-takers.
For the remainder of 2022, the company's focus will be on improved operating cash flows through improved production and cost reduction supported by a strong base metals price environment. Management will continue to review metal prices and retains the option to adjust the capital expenditures should metal prices experience any dramatic changes within the year. With that, I will now turn the call back to Christina.
Christina Papadopoulos -- Manager, Investor Relations
Thanks, Ed. That ends the presentation portion of this call. We now let's open the call to questions-and-answers. In the interest of time and fairness, we ask participants to keep their questions to a limit of two [Inaudible].
Operator, you may open the lines.
Questions & Answers:
Operator
Thank you. [Operator instructions] The first question comes from Mark Reichman from NOBLE Capital Markets. Mark, please go ahead.
Mark Reichman -- NOBLE Capital Markets -- Analyst
Thank you. Good morning. Just had two questions. First, with the recovery in production over the balance of the year, do you still expect to need the cash and all-in sustaining cost by mine guidance?
Luis Marchese -- Chief Executive Officer
Hi, Mark. Thanks for the question. Yes, so we expect you to still meet those guidance numbers.
Mark Reichman -- NOBLE Capital Markets -- Analyst
OK. It was a little hard to tell because sometimes if you experience some inflation and some of the particular line items. I was just thinking, well, I think Cusi was fine for the first quarter, but Bolivar and Yauricocha were quite a bit higher than the guidance. So I thought, well maybe there might be some stickiness to some of those costs, but it sounds like it's really just a function of production.
And then just a second question is if you could provide just a little more clarity, in your corporate presentation, you've got Slides 11 and 22 to talk about the Yauricocha production growth and brownfield opportunities. If you could just maybe provide a little more clarity on Fortuna, kind of what that means in terms of a grade uplift? And then, kind of longer-term plans to bridge to the mining at depth, after 2023 once you get the permit?
Luis Marchese -- Chief Executive Officer
Hello, Mark. This is Luis. Fortuna, we've been in a routine. All the areas of the 1120 level mark, which is our current mining restrictions.
So by doing that and some reinterpretation, we were successful in finding the Fortuna area, which is in the Cachi Cachi and Esperanza these are large open areas there at the level of [Inaudible]. So this is, I guess, a really good development because we found these high-grade zones and we are [Inaudible] in the presentation in looking into hopefully finding more areas like that. Now, what does this mean in terms of the mine production? As you are aware, over the years, the Yauricocha has benefited from, what has been called the [Inaudible] which is a small body -- smaller body with a high grade of these smaller wide and high grade with usually mixed with the lower grade larger ore bodies and that will give you the means that has made Yauricocha profitable. What happened is that most [Inaudible] are now [Inaudible].
Actually, almost [Inaudible]. By finding Fortuna above the lower grade, we are doing everything -- the high grade [Inaudible] mine from the Yauricocha's [Inaudible]. While this is really good news. The other very good news is that each of the [Inaudible], which is where we have our main destruction panel [Inaudible].
We've got all the facilities there, we've got ventilation, we've got power. So we're now developing a [Inaudible], particularly the production in a few months. This is very good news as we highlighted in our presentation.
Mark Reichman -- NOBLE Capital Markets -- Analyst
Thank you very much. That's really helpful.
Operator
Our next question comes from Heiko Ihle from Wainwright & Co. Heiko, please go ahead.
Heiko Ihle -- H.C. Wainwright and Company -- Analyst
Hey, it's Heiko from H.C. Wainwright. I saw some news with the protests of a rise in food, energy costs improve just given your commodity price spikes. And obviously, inflation is an issue.
We have just but any [Inaudible] comes in every single earnings call, it's been on so far. What are you seeing and what are you doing to the industry, if at all mitigate it, as much as you can? And also, how much of your fuel costs have actually gone up?
Luis Marchese -- Chief Executive Officer
Yeah, we essentially think concerns Heiko, as well as the exchange rate. Now the exchange rate when we [Inaudible] the budgeting process was [Inaudible] about [Inaudible] per dollar and now it's closer to $3.80. Around 65% of our costs and [Inaudible] exchange rate. And we are also having -- on fuel, but we're not so fuel-intensive as much as power-intensive, and power has remained fairly similar, and so that hasn't affected us so much.
We're looking at explosives and other items that we are partakers in a large [Inaudible] and we can manage but if the market is moving up, there is not much we can do about it, but certainly, we are trying to improve the effectiveness of the use of those [Inaudible]. Thank you.
Heiko Ihle -- H.C. Wainwright and Company -- Analyst
Earlier on this call, you talk about the year exploration at Bolivar, you've seen [Inaudible] high-grade zinc is very good in this market. How much are you actually spending on exploring this area? And I guess that's an impossible question to answer, but how much material do you think might be located in this area, please?
Luis Marchese -- Chief Executive Officer
We're talking -- we have some [Inaudible] what we can expect with [Inaudible], but certainly, we're just starting to do that, that we -- one is called La Sierra that has been in the works for some time but we working comparable to when we could get from additional volume and great from copper right now we will become quite relevant but we're targeting that. And the other is the Bolivar [Inaudible] it was before COVID and then financially being tied to deposit. How much we're going to spend? So far close to $1 million depending on how good we get, we might be patient in production quite to, we will have to budget, really processing plans to corporate for.
Heiko Ihle -- H.C. Wainwright and Company -- Analyst
Got it. That's it for me. Thanks so much, all the best to you.
Luis Marchese -- Chief Executive Officer
Thank you.
Operator
The next question comes from Lee Cooperman at Omega Family Office. Lee, please go ahead.
Lee Cooperman -- Omega Advisors -- Analyst
Yes, thank you very much. And hope everybody is safe and healthy. So maybe, Ed -- this is directed to Ed Guimaraes. Maybe you can help us tie this together, and give us a range that you're comfortable with EBITDA for this year.
And your range of capex, and therefore where we could look toward free cash flow? That would be my first question. Second, and I think we're a much better company than the $0.78 stock price. And I think that the price of stock gives it a cheapened image. Have we thought about the virtues of a reverse split, as a way of elevating the stock price and maybe getting us at a category of cigar [Inaudible]? And finally, based upon your budgets, last year you went to a dividend with the hope of the dividend being sustainable.
I know this is determined by the board rather than management but do you think you'll be in a position to pay a dividend at the end of this year based on your budgets if things go along with your expected lines? Thank you, and wish you good luck.
Ed Guimaraes -- Chief Financial Officer
Thanks, Lee. Thanks for those questions. So in terms of EBITDA, we're maintaining our guidance between 90 and 105 million. In terms of Q1 EBITDA, there was a little bit better than expected and so we're definitely tracking well.
But things capex stands for $71 million depending on maybe the turnaround at Bolivar, we will have the option to reduce that. I believe we'll probably come under capex, the $71 million. Probably somewhere between $50 to $60 million. Again, wanting to ensure that we have sufficient liquidity to meet any production shortfalls that we may have.
We're still not over the [Inaudible] with respect to the turnaround, but we hope to be over the next couple of months. In terms of any [Inaudible], there's no question [Inaudible] that are share price has gotten hammered and more slowly look at the whole mining space. I think it's fair to say that mining companies globally have seen depressed share prices. But Sierra has definitely suffered more, most than the rest.
So I don't really want to speculate on terms of what [Inaudible] is, I know it's -- again, I believe our analysts have done a really good job and you can encourage everyone on the call to really review the analyst coverage research reports where they do provide target and provide [Inaudible] and then target share price. In terms of reverse split --
Lee Cooperman -- Omega Advisors -- Analyst
[Inaudible] reverse split the dividend intentions.
Ed Guimaraes -- Chief Financial Officer
Yeah. No, [Inaudible] now we just wanted to mention that as well. In terms of the reverse split, yes, that is something. I think it is a little bit of -- it's fairly from an arithmetic perspective.
There's really a lot going on there, but it is something we can look at. It's more cosmetic than anything else, but it is something I'm happy to speak to you more about that in terms of the best way to go about that, and really the advantages of doing that. But it is something that I know we have discussed in the past and it's on my list. In terms of the dividend, the dividend really will depend on the turnaround, and on the strength of the metal prices.
It's not a big dividend, but given where we are now, I think it's too early to make that call. We'll be in a much better position, when we get through close to let's say, August or September to make that call. But for now --
Lee Cooperman -- Omega Advisors -- Analyst
Remind me the terms of your debt. Do you have a quarterly amortization of debt?
Ed Guimaraes -- Chief Financial Officer
That's correct, Lee, it's $6.25 million per quarter, so $25 million a year. We're in the process of refinancing the $25 million for 2022. We have very good relations with our approving banks and those discussions are going very well we hope to make an announcement soon. But they have been extremely supportive.
Lee Cooperman -- Omega Advisors -- Analyst
Thank you very much for your response. I appreciate it.
Ed Guimaraes -- Chief Financial Officer
Thank you, Lee.
Operator
[Operator instructions] The next question comes from Jim Young at Midwest Investment. Jim, please go ahead.
Unknown speaker
Yeah. Hi. Everyone to just give us an update as to what the status is the Cusi, please? Because my impression was that the management team was focused on divesting its asset.
Ed Guimaraes -- Chief Financial Officer
Thanks, Jim. Yeah. Cusi we are in the process for Cusi. But as you know, Cusi really represents 10% of our revenue.
It's not our focus, our primary focus right now. Cusi, the investments that we made last year. The infrastructure really paid off, and you can see that in the Q1 results. From our perspective, there would have to be acquired with good financial wherewithal, or willing to pay cash, willing to continue to invest in Cusi because I think it does need investments yearly, given the epithermal well, being characteristics.
And we'd also be looking for some sort of royalty. So all these things need to play out. Whether we're going to find, even though we are in a process. And, again, it's, it's really not our priority or we're certainly happy to retain Cusi, especially with the financial results that we're seeing this year.
And we should be able to provide an update ensuring our next conference call. The process should be done by then for sure.
Unknown speaker
OK. Thank you. And secondly, regarding your EBITDA, you said that first quarter, you'd have $60 million a little bit ahead of your expectation, is that correct?
Ed Guimaraes -- Chief Financial Officer
Yes. And that certainly, not low prices. So this won't stop other prices.
Unknown speaker
OK. So then could you give us the quarterly progression for the remainder of 2022 or the June quarters, September, and December? [Inaudible] there would get to the lower end with a $99 million guidance range?
Ed Guimaraes -- Chief Financial Officer
I think you should see Q2 being somewhat in line with Q1 and then you really going to see the significant uptake in the second half, Jim. So really it's still sticking -- if you look at the guidance broken by the first half and second half, I believe we'll be in those ranges this year.
Unknown speaker
OK. Well, if you're looking for a similar level of EBITDA after the second quarter. I suggest that the third and the fourth quarters should show significant ramp-ups. I'm not quite clear as to what's going to drive the ramp-up in the third quarter and the fourth quarter.
So can you help us understand what's going to drive that improvement, please?
Ed Guimaraes -- Chief Financial Officer
It really scales. It really scales. Bolivar being at the 5,000 working up to the 6,000 tonnes per day. That's going to be significant.
Unknown speaker
OK. Thank you.
Ed Guimaraes -- Chief Financial Officer
Thank you.
Operator
The next question comes from Chen Lin at Lin Asset Management. Chen, please go ahead.
Chen Lin -- Chen Lin Asset Management -- Analyst
Hi. Thank you for taking my questions. Most of my question has been answered. I'm just curious, one of the issues for Peru is the water level.
How challenging, do you see, for instance, to get the permit to mine below the water map -- water level, and then how long that would take? Thank you.
Luis Marchese -- Chief Executive Officer
Thank you, Chen. The issues that initially the limited the permitting for 34 [Inaudible] of progress on [Inaudible] their own workloads in mindset or, in order to reach into those level, you've got to draw full environmental impact as treatment. And that processes are a fairly robust and complicated and related fee process which can take up to three years as history has told us. So we started that process last year and we expect that process to finish and then through to the next year and then we would apply for the mining permit and that could allow us to go into these new areas.
We don't foresee any major issues on who's in those areas because Yauricocha has been mining with the areas for quite a number of years. So we just have to follow the process and keep up with the communities and with the government on this.
Chen Lin -- Chen Lin Asset Management -- Analyst
OK. Great. Thank you. And then congratulations, on your recent high-grade discovery underground.
So how -- do you have the size, the relative size of that discovery or it's right now, it's too early to tell?
Luis Marchese -- Chief Executive Officer
[Inaudible] Thank you for your congratulation. Yeah, it is still early, but I think that we believe that it's more about the grade than the tonnage and that it's going to help us replace these high-grade [Inaudible] that we've been mining over the years, which will be low [Inaudible]. So it's going to give us some relevant tonnage but more particularly the higher grade. And I do want to understate that we are still looking in that area, so we're still hopeful that we may be able to find some other similar ore bodies, but nature will tell.
Chen Lin -- Chen Lin Asset Management -- Analyst
OK. Great. Thank you. Yeah, that's my major question.
Maybe the others have. I'll take it offline. Thank you.
Luis Marchese -- Chief Executive Officer
OK. Thank you.
Operator
We have a follow-up question from Lee Cooperman at Omega Family Office. Lee, please go ahead.
Lee Cooperman -- Omega Advisors -- Analyst
Thank you. I'm just curious any insight into the latest moves in the government of Peru, are they company-friendly, industry-friendly, or industry negative? What's going on in terms of the leadership of the country?
Luis Marchese -- Chief Executive Officer
Actually, that's a difficult question really because the government has shown different phases of how we deal with the market industry. [Inaudible] the state that they are supported by the Americans. That's just not necessarily the case. So it's a [Inaudible].
Our concern is more now with the experience of the people that is now in the ministry of mines in particular and [Inaudible]. These are very technical entities. And our concerns are that if the new offering fees don't have that required experience. But [Inaudible] only a few months on the job.
So we will see how it works. But it's a difficult question to answer, Lee.
Lee Cooperman -- Omega Advisors -- Analyst
Do you have an easy question you want me to ask you? Good luck and thank you for your response. Appreciate it. OK, good luck.
Luis Marchese -- Chief Executive Officer
Thanks, Lee. Thank you.
Operator
We have no further questions, so I'll hand it back for any final remarks.
Christina Papadopoulos -- Manager, Investor Relations
Thank you, operator. That concludes today's call on behalf of the management team. I'd like to thank all participants for joining us today. A replay of the webcast and all materials can be found on our website at sierrametals.com.
If there are any further questions or concerns, you may reach out to us after today's call. Our contact information can be found in today's presentation, as well as on the company's website. Thank you, operator, please conclude the call.
Operator
[Operator signoff]
Duration: 42 minutes
Call participants:
Christina Papadopoulos -- Manager, Investor Relations
Luis Marchese -- Chief Executive Officer
Ed Guimaraes -- Chief Financial Officer
Mark Reichman -- NOBLE Capital Markets -- Analyst
Heiko Ihle -- H.C. Wainwright and Company -- Analyst
Lee Cooperman -- Omega Advisors -- Analyst
Unknown speaker
Chen Lin -- Chen Lin Asset Management -- Analyst
