Sierra Metals Reports Consolidated Financial Results for the First Quarter Of 2021
Sierra Metals (TSX: SMT) reported a revenue of $69.6 million and an adjusted EBITDA of $25.6 million for Q1 2021. The company processed 774,421 tonnes and produced 25.5 million copper equivalent pounds. Despite operational challenges due to COVID-19, revenues and cash flows increased. However, significant decreases in copper (33%) and gold (28%) production were noted. The Yauricocha Mine's throughput rose by 14%, while the Bolivar Mine's copper equivalent output dropped by 20%. Future plans include a 20% throughput increase at Yauricocha and an iron ore processing plant at Bolivar.
- Q1 2021 revenue increased to $69.6 million.
- Adjusted EBITDA rose to $25.6 million.
- Yauricocha Mine achieved 14% higher throughput compared to Q1 2020.
- Copper production decreased 33% year-over-year.
- Gold production dropped 28% compared to Q1 2020.
- Cash costs per copper equivalent payable pound rose by 26%.
Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra Metals" or "the Company") today reported revenue of
Image 1: Piedras Verdes Mill at Bolivar (Photo: Business Wire)
Despite the decline in quantities of payable metals due to ongoing COVID-19 related operational challenges and external factors, the Company generated higher revenues, adjusted EBITDA and operating cash flows during Q1 2021.
The Yauricocha Mine achieved
The Bolivar Mine processed 371,608 tonnes in Q1 2021, representing a mere
The Cusi Mine achieved
Consolidated production of silver increased
Luis Marchese, CEO of Sierra Metals, commented, "The safety of our workforce and the communities in which we operate is paramount. The COVID-19 pandemic has enacted various direct and indirect challenges which have affected our ability to operate as effectively as expected. Additionally, an extended power outage at Cusi affected our operations during the quarter. Despite these challenges, we still had solid revenue and adjusted EBITDA tempered by higher costs due to lower metal production and a decline in ore grades. We continue to work through the challenges and issues, and we expect to see improvement as we progress throughout the year."
He continued, "Looking ahead, the year continues to be busy with many exciting developments such as the anticipated receipt of the Informe Tecnico Minero ("ITM") permit at Yauricocha, which will allow us to increase throughput by
He concluded, "The Company continues to have a strong balance sheet to support the Company's capital expenditures and growth initiatives. While we are facing challenges from COVID-19 currently, the mid-term plans remain in place."
The following table displays selected financial and operational information for the three months ended March 31, 2021:
| Three Months Ended | ||||||
| (In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise) | March 31, 2021 |
March 31, 2020 |
||||
| Operating | ||||||
| Ore Processed / Tonnes Milled |
|
774,421 |
|
740,698 |
|
|
| Silver Ounces Produced (000's) |
|
961 |
|
948 |
|
|
| Copper Pounds Produced (000's) |
|
7,895 |
|
11,775 |
|
|
| Lead Pounds Produced (000's) |
|
9,004 |
|
9,079 |
|
|
| Zinc Pounds Produced (000's) |
|
24,123 |
|
21,646 |
|
|
| Gold Ounces Produced |
|
2,636 |
|
3,657 |
|
|
| Copper Equivalent Pounds Produced (000's)1 |
|
25,496 |
|
31,170 |
|
|
| Zinc Equivalent Pounds Produced (000's)1 |
|
79,778 |
|
84,466 |
|
|
| Silver Equivalent Ounces Produced (000's)1 |
|
3,741 |
|
4,751 |
|
|
| Cash Cost per Tonne Processed | $ |
47.54 |
$ |
46.73 |
|
|
| Cost of sales per AgEqOz | $ |
11.48 |
$ |
8.96 |
|
|
| Cash Cost per AgEqOz2 | $ |
11.02 |
$ |
8.43 |
|
|
| AISC per AgEqOz2 | $ |
19.62 |
$ |
14.71 |
|
|
| Cost of sales per CuEqLb2 | $ |
1.69 |
$ |
1.37 |
|
|
| Cash Cost per CuEqLb2 | $ |
1.62 |
$ |
1.29 |
|
|
| AISC per CuEqLb2 | $ |
2.88 |
$ |
2.25 |
|
|
| Cost of sales per ZnEqLb2 | $ |
0.54 |
$ |
0.50 |
|
|
| Cash Cost per ZnEqLb2 | $ |
0.52 |
$ |
0.47 |
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FAQ
What were Sierra Metals' Q1 2021 earnings results?
Sierra Metals reported a revenue of $69.6 million and adjusted EBITDA of $25.6 million for Q1 2021.
How did the COVID-19 pandemic affect Sierra Metals' production?
The pandemic led to a decline in payable metals and operational challenges, resulting in decreased copper and gold production by 33% and 28%, respectively.
What future plans does Sierra Metals have for its operations?
Sierra Metals plans to increase throughput by 20% at Yauricocha and is constructing an iron ore processing plant at Bolivar.
What is the current production status of Sierra Metals' mines?
The Yauricocha Mine's throughput increased by 14%, while the Bolivar Mine experienced a 20% decrease in copper equivalent pounds produced.
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