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    Hector Areliz • Rainbow Fund LP

    Hector Areliz is an Analyst at Rainbow Fund LP, bringing sector-level expertise with a focus that includes metals and mining companies such as Sierra Metals Inc. He is actively involved in equity research coverage and has participated in Q1 2024 earnings calls, offering analytical insights directly to company management. While specific historical performance metrics and detailed rankings are not publicly available, Areliz’s professional background reflects a strong orientation in sector-based investment analysis and fund management. Details regarding previous professional experience, formal credentials, and licenses are not widely disclosed.

    Hector Areliz's questions to Sierra Metals Inc (SMTSF) leadership

    Hector Areliz's questions to Sierra Metals Inc (SMTSF) leadership • Q4 2024

    Question

    Asked for the specific commodity price assumptions underlying the $130 million EBITDA forecast and requested an update on the timing and balance of the intercompany loan with Minera Corona.

    Answer

    The company's EBITDA forecast is based on copper prices around $4.20/lb and gold at $2,300/oz. The intercompany loan repayment is being worked on and will be part of the broader corporate debt refinancing. The outstanding balance is approximately $55 million.

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    Hector Areliz's questions to Sierra Metals Inc (SMTSF) leadership • Q4 2024

    Question

    Hector Areliz asked for the specific commodity price assumptions for copper and gold that underpin the company's $130 million EBITDA forecast for 2025. He also requested an update on the timing and plan for repaying the outstanding intercompany loan with Minera Corona.

    Answer

    CFO Jean Pierre Del Rio provided the price assumptions for the 2025 forecast: copper at $4.20 per pound and gold at $2,300 per ounce. He explained that the outstanding intercompany loan balance is around $55 million and a repayment mechanism will be established as part of the upcoming corporate debt refinancing. CEO Ernesto Balarezo Valdéz reiterated his personal commitment to resolving this loan.

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    Hector Areliz's questions to Sierra Metals Inc (SMTSF) leadership • Q1 2024

    Question

    Hector Areliz inquired about the company's capital allocation priorities for future cash flows, particularly with increased production from Yauricocha. He asked how management would balance potential M&A activity, such as acquiring a third mine, against repaying the intercompany loan from its Minera Corona subsidiary and other internal investments.

    Answer

    CEO Ernesto Balarezo Valdéz emphasized that the top priority is organic growth by reinvesting in the company's two main mines, Yauricocha and Bolivar, to catch up on necessary CapEx. Regarding M&A, he stated that while the company is always looking for value-accretive opportunities, the primary focus remains on its current operations. For its greenfield projects, Balarezo said the company is actively seeking partners to fund development rather than using its own cash. He also confirmed that the upcoming debt refinancing will address the repayment of a portion of the intercompany loan, with specifics to be announced soon.

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    Hector Areliz's questions to Sierra Metals Inc (SMTSF) leadership • Q1 2024

    Question

    Asked about the company's capital allocation priorities for future cash flows, specifically regarding the balance between M&A activity, repaying the intercompany loan from Minera Corona, and reinvesting in current operations.

    Answer

    The company's primary focus for cash flow is reinvesting in CapEx for its two main mines, Yauricocha and Bolivar, over the next 2-3 years. M&A is a secondary consideration, contingent on finding value-accretive opportunities. Growth from greenfield projects will be pursued via partnerships. The upcoming refinancing will address the intercompany loan, with some of it being repaid, and details will be announced in the coming weeks.

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