Somanetics (SMTS) Reports Q2 Revenues Above Consensus

Somanetics (NYSE: SMTS) reported Q2 revenues for the quarter came in at $62.72 million versus the consensus estimate of $38.23 million.

• Adjusted EBITDA of $28.9 million in Q2 2018 increased 64% from $17.6 million in Q2 2017
• Operating cash flows before movements in working capital of $29.5 million in Q2 2018 increased 70% from $17.4 million in Q2 2017
• Revenue from metals payable of $62.7 million in Q2 2018 increased by 29% from $48.6 million in Q2 2017
• Q2 2018 consolidated copper production of 8.6 million pounds, consolidated silver production of 0.7 million ounces, consolidated zinc production of 20.3 million pounds, and consolidated gold production of 1,814 ounces; a 62% increase, 12% increase, 10% increase, and 38% increase respectively, from Q2 2017, and within production guidance(1)
• Record quarterly throughput at Yauricocha and Bolivar Mines
• $21.8 million of cash and cash equivalents as at June 30, 2018
• Net Debt of $41.5 million as at June 30, 2018
• Shareholder conference call to be held Tuesday August 14, 2018 at 10:30 AM (EDT)

Igor Gonzales, President and CEO of Sierra Metals stated: "I am very pleased with our strong Q2 2018 results which builds upon our solid first quarter results. The Company is realizing positive returns on our capital investments and our operational improvement efforts. This can be noted through improving operating performance and strengthening of our asset base in addition to improved cash flow and increases to mineral reserves and resources at each of our mines.

Yauricocha continues to perform well with sequential record throughput in the second quarter. Additionally, despite lower realized metal prices in the second quarter, Yauricocha still contributed to higher revenue and improved net production revenue per tonne representative of the successful capital investments made. At Bolivar, the effects of the Mexico turn-around program are very noticeable, we achieved record throughput with a 5% increase over Q1-2018 and continue to work towards our goal of 3,500 tonnes per day by year end. We have again achieved lower all-in sustaining costs in the second quarter, which remain below guidance. At Cusi, we are progressing on the ramp up of tonnage and realized quarter over quarter improvements. We continue to campaign development ore from the Santa Rosa de Lima zone with increasing throughput rates, while selectively mining structures in the older part of the mine. We are pleased to report that the Company reached the existing mill's production capacity of 650 tonnes per day in late Q2-2018. The addition of another ball mill in the second half of 2018 will see the capacity increase to approximately 1,200 tonnes per day in early 2019."

He concluded, "Sierra Metals balance sheet remains strong with solid liquidity to meet its operational and growth expenditure requirements. Management maintains its optimism for the remainder of the year as the groundwork for further improvements has been laid through the implementation of best operational practices. Our recently completed, positive PEA's at all three Mines demonstrate the robust growth opportunities for the Company. Additionally, aggressive, brownfield exploration programs focused on high value targets are being executed which could lead to further significant growth in mineral reserves and resources at all of our Mines, which will add to the value of our assets now and in the years ahead."

For earnings history and earnings-related data on Somanetics (SMTS) click here.

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