Sierra Metals Reports First Quarter 2021 Production Results
Sierra Metals Inc. reported a 4.5% increase in consolidated ore throughput for Q1 2021, despite ongoing operational challenges linked to COVID-19. Silver production rose by 1% to 1.0 million ounces, while copper production fell 33% to 7.9 million pounds due to a shift to lower-grade areas. The Yauricocha Mine set a record throughput of 3,728 tpd, contributing to the overall positive results. However, production declines for copper and gold of 28% and 21% respectively highlight operational challenges. The company maintains its annual production guidance.
- 4.5% increase in consolidated ore throughput.
- Record quarterly throughput at the Yauricocha Mine of 3,728 tpd.
- 1% increase in silver production to 1.0 million ounces.
- Zinc production increased by 11% to 24.1 million pounds.
- 33% decrease in copper production to 7.9 million pounds.
- 28% decrease in gold production to 2,636 ounces.
- 21% decrease in copper equivalent production compared to Q1 2020.
- Operational challenges from COVID-19 affecting all mines.
Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) announces first quarter 2021 production results featuring
Image 1: Yauricocha Mine, Chumpe Plant Flotation Cells (Photo: Business Wire)
Results are from Sierra Metals’ three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico.
First Quarter 2021 Production Highlights
-
Silver production of 1.0 million ounces; a
1% increase from Q1 2020 -
Copper production of 7.9 million pounds; a
33% decrease from Q1 2020; mainly due to a temporary shift from copper-rich zones to lower grade polymetallic areas at Yauricocha caused by temporary operational challenges. -
Lead production of 9.0 million pounds; a
1% decrease from Q1 2020 -
Zinc production of 24.1 million pounds; an
11% increase from Q1 2020 -
Gold production of 2,636 ounces; a
28% decrease from Q1 2020 -
Copper equivalent production of 25.5 million pounds; an
18% decrease from Q1 2020 - Record quarterly throughput of 3,728 tpd at the Yauricocha Mine
The Yauricocha Mine achieved
At Bolivar, a
Luis Marchese, CEO of Sierra Metals, commented, “The health and safety of our work force and surrounding communities continues to be of the upmost importance and we continue to manage the implications of COVID-19 using best practices with a goal of avoiding any mine closures, while continuing to aim for production targets.”
He continued, “Facing ongoing operational difficulties due to Covid-19 in Peru and México, the Company performed relatively well during the first quarter with a
He concluded, “The coming months continue to look challenging for the Company due to Covid-19 operational constraints at all mines but particularly in Peru. We expect to improve upon the first quarter production results and continue to work on completion of Preliminary Feasibility Studies for all three mines building upon the positive Preliminary Economic Assessments released in 2020. Brownfield and Greenfield Exploration continues, and we strive to optimize and improve operations with an aim of reducing costs where possible at all mines.”
Consolidated Production Results
| Consolidated Production | Q1 2021 | Q1 2020 | % Var. |
|
|||
| Tonnes processed | 774,421 |
740,698 |
|
| Daily throughput | 8,851 |
8,465 |
|
|
|||
|
|||
| Silver production (000 oz) | 961 |
948 |
|
| Copper production (000 lb) | 7,895 |
11,775 |
- |
| Lead production (000 lb) | 9,004 |
9,079 |
- |
| Zinc production (000 lb) | 24,123 |
21,646 |
|
| Gold Production (oz) | 2,636 |
3,657 |
- |
|
|||
|
|||
| Silver equivalent ounces (000's)(1) | 3,741 |
4,749 |
- |
| Copper equivalent |
25,496 |
31,182 |
- |
| Zinc equivalent |
79,778 |
84,477 |
- |
|
(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices:
Yauricocha Mine, Peru
The Yauricocha Mine processed 326,211 tonnes during Q1 2021, which is a
Negative variances in grades resulted from the irregular contribution from the high-grade cuerpos chicos zones, due to lack of development as well as operational issues at the copper rich Esperanza Zone which has subsequently been corrected This led to a higher proportion of ore coming from the low-grade larger ore bodies. Q1 2021 metal production was
A summary of production from the Yauricocha Mine for Q1 2021 is provided below:
| Yauricocha Production | Q1 2021 | Q1 2020 | % Var. |
|
|||
| Tonnes processed | 326,211 |
285,225 |
|
| Daily throughput | 3,728 |
3,260 |
|
|
|||
|
|||
| Silver grade (g/t) | 54.34 |
65.86 |
- |
| Copper grade |
|
|
- |
| Lead grade |
|
|
- |
| Zinc grade |
|
|
- |
| Gold Grade (g/t) | 0.43 |
0.69 |
- |
|
|||
| Silver recovery |
|
|
- |
| Copper recovery |
|
|
- |
| Lead recovery |
|
|
|
| Zinc recovery |
|
|
|
| Gold Recovery |
|
|
- |
|
|||
|
|||
| Silver production (000 oz) | 451 |
495 |
- |
| Copper production (000 lb) | 2,682 |
5,384 |
- |
| Lead production (000 lb) | 8,706 |
8,608 |
|
| Zinc production (000 lb) | 24,123 |
21,646 |
|
| Gold Production (oz) | 890 |
1,254 |
- |
|
|||
|
|||
| Copper equivalent |
15,937 |
20,147 |
- |
| Zinc equivalent |
49,867 |
54,605 |
- |
|
(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices:
Bolivar Mine, Mexico
Mining operations at Bolivar in Q1 2021 were impacted by the lack of manpower due to COVID-19 and bad weather earlier during the quarter. As a result, the Bolivar mine processed 371,608 tonnes in Q1 2021, representing a
A summary of production for the Bolivar Mine for Q1 2021 is provided below:
| Bolivar Production | Q1 2021 | Q1 2020 | % Var. |
|
|||
| Tonnes processed (t) | 371,608 |
377,562 |
- |
| Daily throughput | 4,247 |
4,315 |
- |
|
|||
|
|||
| Copper grade |
|
|
- |
| Silver grade (g/t) | 19.68 |
21.09 |
- |
| Gold grade (g/t) | 0.19 |
0.28 |
- |
|
|||
| Copper recovery |
|
|
- |
| Silver recovery |
|
|
|
| Gold recovery |
|
|
|
|
|||
|
|||
| Copper production (000 lb) | 5,213 |
6,391 |
- |
| Silver production (000 oz) | 197 |
210 |
- |
| Gold production (oz) | 1,591 |
2,191 |
- |
|
|||
|
|||
| Copper equivalent |
7,285 |
9,147 |
- |
|
(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices:
Cusi Mine, Mexico
Operating at an average throughput of 875 tpd, Cusi processed
A summary of production for the Cusi Mine for Q1 2021 is provided below:
| Cusi Production | Q1 2021 | Q1 2020 | % Var. |
|
|||
| Tonnes processed (t) | 76,602 |
77,911 |
- |
| Daily throughput | 875 |
890 |
- |
|
|||
|
|||
| Silver grade (g/t) | 157.22 |
120.88 |
|
| Gold grade (g/t) | 0.16 |
0.18 |
- |
| Lead grade |
|
|
- |
|
|||
| Silver recovery (flotation) |
|
|
|
| Gold recovery (lixiviation) |
|
|
- |
| Lead recovery |
|
|
- |
|
|||
|
|||
| Silver production (000 oz) | 313 |
243 |
|
| Gold production (oz) | 155 |
212 |
- |
| Lead production (000 lb) | 298 |
471 |
- |
|
|||
|
|||
| Silver equivalent ounces (000's)(1) | 334 |
286 |
|
|
(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices:
Quality Control
All technical production data contained in this news release has been reviewed and approved by Americo Zuzunaga, FAusIMM (CP Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Augusto Chung, FAusIMM (CP Metallurgist) and Vice President Special Projects and Metallurgy and a chartered professional qualifying as a Competent Person on metallurgical processes.
About Sierra Metals
Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.
For further information regarding Sierra Metals, please visit www.sierrametals.com.
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Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.
Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 18, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.
The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.
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FAQ
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