CA - Sierra Metals to review options facing 'liquidity challenges'

Sierra Metals ( NYSE: SMTS ) said Tuesday a special committee comprised of independent directors has initiated a process to evaluate the company's financial and liquidity position, operational challenges, and possible financing and restructuring alternatives.

Sierra Metals ( SMTS ) said it faces "liquidity challenges" due to the recent suspension of operations at the Yauricocha mine in Peru and operating losses and negative cash flows that have accumulated, primarily from the Bolivar and Cusi operations in Mexico.

While mining operations have restarted at areas of the Yauricocha mine, the company said a majority of the operation remains suspended, and a precise timeline for achieving full plant throughput is not yet established.

"It's unlikely that Sierra Metals will have enough funds for the planned expansion of Bolivar and Yauricocha," Gold Panda writes in an analysis published on Seeking Alpha .

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