Sierra Metals Reports Third Quarter 2022 Production Results and Announces Voluntary Delisting From NYSE American and BVL Exchanges
Sierra Metals (TSX: SMT, NYSE AMERICAN: SMTS) reports third-quarter 2022 production results, announcing plans for voluntary delisting from NYSE and BVL to cut costs and streamline operations. Mining was disrupted at Yauricocha due to a mudslide and community blockade, resulting in a 12% and 25% decrease in consolidated mill throughput compared to Q2 2022 and Q3 2021, respectively. Total copper equivalent production dropped 7% from the previous quarter and 24% year-over-year. Q3 results are scheduled for release on November 14, 2022.
- Silver production increased by 10% compared to Q2 2022.
- The decision to delist from NYSE and BVL aims to reduce costs and administrative burdens.
- 12% decrease in consolidated mill throughput compared to Q2 2022.
- 25% decrease in consolidated mill throughput compared to Q3 2021.
- 7% decrease in copper equivalent production compared to Q2 2022.
- 24% decrease in copper equivalent production compared to Q3 2021.
- Mining operations at Yauricocha were suspended for around 20 days.
(All metal prices reported in USD)
Production results are from Sierra Metals’ three underground mines in
Third Quarter 2022 Consolidated Production Highlights
- As a result of the mudslide incident and the community blockade that followed, mining operations at Yauricocha were suspended for approximately 20 days in September.
-
Consolidated mill throughput decreased
12% when compared to the previous quarter and25% when compared to Q3 2021, due to lower throughput at Yauricocha and slower ramp up at Bolivar as a result of an unforeseen flooding event in the Bolivar NorthWest zone. -
Consolidated copper equivalent production was
7% lower compared to the previous quarter and24% lower when compared to Q3 2021 - Suspension of production and financial guidance remains in effect.
Consolidated Q3 2022 Results – The Company previously announced that results will be released on
Correction: The Company’s Q3 2022 results will be released on
Additionally, the extended work stoppage at Yauricocha, due to the road blockade by a local community, concluded after an agreement was reached. The agreement is currently in the process of being implemented.”
He continued, “Bolivar's turnaround effort has been delayed due to unexpected flooding events during most of the quarter at the Bolivar NorthWest zone in addition to operational delays in implementing a new raise bore to add ventilation. The flooding is currently under control.
Further, after an in-depth review, examining the advantages and disadvantages of Sierra’s listings, management and the Board determined that it would be in the best interest of the Company and its shareholders to voluntarily delist from both the NYSE and the BVL exchanges. The decision is intended to create simplification and to reduce significant costs associated with the continued listing on the NYSE and BVL.”
He concluded, “Sierra Metals has endured an unfortunate sequence of events, that have brought the Company to its current position. Our goal is to find the best path forward for the Company and its stakeholders.”
Consolidated Production Results
Consolidated Production |
Three Months Ended |
Nine Months Ended |
||||||||||
Q3 2022 |
Q2 2022 |
% Var. |
Q3 2021 |
% Var. |
2022 |
2021 |
% Var. |
|||||
Tonnes processed (t) | 561,906 |
640,181 |
- |
750,208 |
- |
1,792,817 |
2,312,163 |
- |
||||
Daily throughput | 6,422 |
7,316 |
- |
8,574 |
- |
6,830 |
8,808 |
- |
||||
Silver production (000 oz) | 669 |
608 |
|
807 |
- |
2,011 |
2,722 |
- |
||||
Copper production (000 lb) | 6,299 |
8,334 |
- |
8,256 |
- |
20,957 |
25,686 |
- |
||||
Lead production (000 lb) | 3,878 |
3,333 |
|
7,841 |
- |
11,427 |
24,805 |
- |
||||
Zinc production (000 lb) | 10,815 |
10,426 |
|
19,112 |
- |
31,733 |
64,368 |
- |
||||
Gold Production (oz) | 2,199 |
2,622 |
- |
2,261 |
- |
6,744 |
7,709 |
- |
||||
Copper equivalent |
16,637 |
17,794 |
- |
21,870 |
- |
50,202 |
71,966 |
- |
||||
(1) |
Copper equivalent pounds were calculated using the following realized prices: |
Q3 2022 - |
|
Q2 2022 - |
|
Q3 2021 - |
|
9M 2022 - |
|
9M 2021 - |
Throughput from the
At the
At Cusi, throughput was 65,180 tonnes during Q3 2022 or
When compared to Q3 2021, there was a
The significant decrease in tonnage and copper equivalent pounds produced at Yauricocha is a result of the suspension of mining activities due to the mudslide that occurred on
A summary of production from the
Yauricocha Production |
|
Nine Months Ended |
||||||||||
Q3 2022 |
|
Q2 2022 |
|
% Var. |
|
Q3 2021 |
|
% Var. |
2022 |
2021 |
% Var. |
|
Tonnes processed (t) | 269,057 |
317,087 |
- |
324,196 |
- |
901,394 |
979,316 |
- |
||||
Daily throughput | 3,075 |
3,624 |
- |
3,705 |
- |
3,434 |
3,731 |
- |
||||
Silver grade (g/t) | 47.61 |
44.65 |
|
56.84 |
- |
43.70 |
56.04 |
- |
||||
Copper grade |
|
|
- |
|
- |
|
|
|
||||
Lead grade |
|
|
|
|
- |
|
|
- |
||||
Zinc grade |
|
|
|
|
- |
|
|
- |
||||
Gold Grade (g/t) | 0.41 |
0.54 |
- |
0.51 |
- |
0.49 |
0.46 |
|
||||
Silver recovery |
|
|
|
|
- |
|
|
- |
||||
Copper recovery |
|
|
- |
|
|
|
|
|
||||
Lead recovery |
|
|
|
|
- |
|
|
- |
||||
Zinc recovery |
|
|
|
|
- |
|
|
- |
||||
Gold Recovery |
|
|
- |
|
- |
|
|
|
||||
Silver production (000 oz) | 256 |
267 |
- |
451 |
- |
779 |
1,385 |
- |
||||
Copper production (000 lb) | 3,514 |
5,127 |
- |
4,641 |
- |
12,920 |
11,020 |
|
||||
Lead production (000 lb) | 3,579 |
3,060 |
|
7,146 |
- |
10,467 |
23,683 |
- |
||||
Zinc production (000 lb) | 10,815 |
10,426 |
|
19,112 |
- |
31,733 |
64,368 |
- |
||||
Gold Production (oz) | 743 |
1,179 |
- |
1,169 |
- |
2,979 |
3,102 |
- |
||||
Copper equivalent |
10,794 |
12,105 |
- |
15,596 |
- |
33,702 |
46,775 |
- |
||||
(1) | Copper equivalent pounds were calculated using the following realized prices: |
Q3 2022 - |
|
Q2 2022 - |
|
Q3 2021 - |
|
9M 2022 - |
|
9M 2021 - |
The Bolivar mine processed 227,669 tonnes in Q3 2022, an
When comparing Q3 2022 to Q3 2021, the Bolivar mine processed
A summary of production for the
Bolivar Production | Nine Months Ended |
|||||||||||
Q3 2022 | Q2 2022 | % Var. | Q3 2021 | % Var. | 2022 |
2021 |
% Var. |
|||||
Tonnes processed (t) | 227,669 |
256,372 |
- |
364,941 |
- |
671,597 |
1,121,880 |
- |
||||
Daily throughput | 2,602 |
2,930 |
- |
4,171 |
- |
2,558 |
4,274 |
- |
||||
Copper grade |
|
|
- |
|
- |
|
|
- |
||||
Silver grade (g/t) | 12.14 |
12.36 |
- |
11.18 |
|
11.90 |
16.70 |
- |
||||
Gold grade (g/t) | 0.27 |
0.24 |
|
0.10 |
|
0.23 |
0.17 |
|
||||
Copper recovery |
|
|
|
|
|
|
|
|
||||
Silver recovery |
|
|
- |
|
|
|
|
|
||||
Gold recovery |
|
|
- |
|
- |
|
|
- |
||||
Copper production (000 lb) | 2,785 |
3,207 |
- |
3,615 |
- |
8,037 |
14,666 |
- |
||||
Silver production (000 oz) | 71 |
83 |
- |
95 |
- |
212 |
494 |
- |
||||
Gold production (oz) | 1,267 |
1,283 |
- |
899 |
|
3,142 |
4,117 |
- |
||||
Copper equivalent |
3,799 |
4,199 |
- |
4,531 |
- |
10,559 |
19,495 |
- |
||||
(1) | Copper equivalent pounds were calculated using the following realized prices: |
Q3 2022 - |
|
Q2 2022 - |
|
Q3 2021 - |
|
9M 2022 - |
|
9M 2021 - |
Operating at an average throughput of 745 tpd, Cusi processed
When comparing Q3 2022 to Q3 2021, ore tonnage increased by
A summary of production for the
Cusi Production |
|
Nine Months Ended |
||||||||||
Q3 2022 |
|
Q2 2022 |
|
% Var. |
|
Q3 2021 |
|
% Var. |
2022 |
2021 |
% Var. |
|
Tonnes processed (t) | 65,180 |
66,722 |
- |
61,071 |
|
219,826 |
210,967 |
|
||||
Daily throughput | 745 |
763 |
- |
698 |
|
837 |
804 |
|
||||
Silver grade (g/t) | 187.44 |
146.34 |
|
161.03 |
|
169.57 |
151.98 |
|
||||
Gold grade (g/t) | 0.19 |
0.17 |
|
0.18 |
|
0.18 |
0.16 |
|
||||
Lead grade |
|
|
|
|
- |
|
|
- |
||||
Silver recovery (flotation) |
|
|
|
|
|
|
|
|
||||
Gold recovery (lixiviation) |
|
|
|
|
- |
|
|
|
||||
Lead recovery |
|
|
|
|
- |
|
|
- |
||||
Silver production (000 oz) | 342 |
258 |
|
261 |
|
1,020 |
843 |
|
||||
Gold production (oz) | 189 |
160 |
|
193 |
- |
623 |
490 |
|
||||
Lead production (000 lb) | 299 |
273 |
|
695 |
- |
960 |
1,122 |
- |
||||
Silver equivalent ounces (000's)(1) | 374 |
283 |
|
306 |
|
1,115 |
920 |
|
||||
(1) | Silver equivalent ounces were calculated using the following realized prices: |
Q3 2022 - |
|
Q2 2022 - |
|
Q3 2021 - |
|
9M 2022 - |
|
9M 2021 - |
Delisting From The NYSE American and BVL Stock Exchanges
The Company decided to pursue the voluntary de-listings after concluding that the disadvantages of maintaining its listing on the NYSE and the BVL outweighed the benefits to the Company and its shareholders. It was determined that a delisting will simplify Sierra’s administrative and compliance structure and reduce costs associated with the listing fees.
The decision to voluntarily delist the common shares from the NYSE and BVL will not impact the Company’s listing on the
The Company expects that the last day of trading of the common shares on the NYSE will be on or about
Shareholders holding shares in
Quality Control
Américo Zuzunaga, FAusIMM (
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Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian and
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 the Company's annual information form dated
The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is 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 such 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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Investor Relations
Tel: +1 (416) 366-7777
Email: info@sierrametals.com
CEO
Tel: +1 (416) 366-7777
Source:
FAQ
What is Sierra Metals' production performance in Q3 2022?
Why is Sierra Metals delisting from NYSE and BVL?
When will Sierra Metals release its Q3 2022 results?
How did the mudslide impact Sierra Metals' operations?