Maintaining Full-Year 2021 Production
Guidance
(All metal prices reported in USD)
Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN:
SMTS) (“Sierra Metals” or “the Company”) announces first quarter
2021 production results featuring 4.5% growth of consolidated ore
throughput.
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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 14% higher throughput as compared
to Q1 2020 despite the various operational challenges still posed
by the COVID-19 pandemic. Lower grades for all metals negated the
impact of higher throughput resulting in a 21% decrease in copper
equivalent pounds produced during Q1 2021 compared to Q1 2020.
At Bolivar, a 2% decrease in throughput combined with lower
grades for all metals resulted in a 20% decrease in copper
equivalent pounds produced during Q1 2021 as compared to Q1 2020.
At Cusi, 30% higher silver grades offset the impact of 2% lower
throughput in Q1 2021 as compared to Q1 2020, resulting in 17%
higher silver equivalent Q1 2021 production.
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 4.5% increase in consolidated
throughout as well as record quarterly throughput at Yauricocha.
These results were despite of other additional challenges,
including a power failure at the Cusi Mine resulting from the large
scale power outage originating in Texas. Additionally, at
Yauricocha we experienced some operational issues at the Esperanza
Zone which provides most of the copper ore for the mine. However,
these have since been resolved and normal operations have resumed.
Furthermore, the annual production guidance previously provided
remains in place without any changes.”
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
5%
Daily throughput
8,851
8,465
5%
Silver production (000 oz)
961
948
1%
Copper production (000 lb)
7,895
11,775
-33%
Lead production (000 lb)
9,004
9,079
-1%
Zinc production (000 lb)
24,123
21,646
11%
Gold Production (oz)
2,636
3,657
-28%
Silver equivalent ounces (000's)(1)
3,741
4,749
-21%
Copper equivalent pounds (000's)(1)
25,496
31,182
-18%
Zinc equivalent pounds (000's)(1)
79,778
84,477
-6%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q1 2021 were calculated using the following realized
prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb,
$1,778/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q1 2020 were calculated using the following
realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb
Pb, $1,585/oz Au.
Yauricocha Mine, Peru
The Yauricocha Mine processed 326,211 tonnes during Q1 2021,
which is a 14% increase from Q1 2020, despite continuing to face
various COVID-19 related operational challenges during the
quarter.
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 50%, 29% and 9% lower for
copper, gold and silver respectively, while zinc and lead
production were 11% and 1% higher as compared to Q1 2020.
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
14%
Daily throughput
3,728
3,260
14%
Silver grade (g/t)
54.34
65.86
-17%
Copper grade
0.56%
1.14%
-51%
Lead grade
1.34%
1.56%
-14%
Zinc grade
3.71%
3.91%
-5%
Gold Grade (g/t)
0.43
0.69
-38%
Silver recovery
79.05%
82.01%
-4%
Copper recovery
66.26%
75.42%
-12%
Lead recovery
90.16%
87.91%
3%
Zinc recovery
90.34%
87.96%
3%
Gold Recovery
19.77%
19.89%
-1%
Silver production (000 oz)
451
495
-9%
Copper production (000 lb)
2,682
5,384
-50%
Lead production (000 lb)
8,706
8,608
1%
Zinc production (000 lb)
24,123
21,646
11%
Gold Production (oz)
890
1,254
-29%
Copper equivalent pounds (000's)(1)
15,937
20,147
-21%
Zinc equivalent pounds (000's)(1)
49,867
54,605
-9%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q1 2021 were calculated using the following realized
prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb,
$1,778/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q1 2020 were calculated using the following
realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb
Pb, $1,585/oz Au.
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 2% decrease from Q1 2020. Head grades were
also impacted by delays in development attributable to COVID-19
issues. Grades for copper, silver and gold were 13%, 7% and 32%
lower respectively, as compared to Q1 2020. The decrease in
throughput and grades resulted in a 20% decrease in copper
equivalent pounds produced during Q1 2021 as compared to Q1 2020.
In Q1 2021, copper production decreased by 18% to 5.2 million
pounds, silver production decreased 6% to 0.2 million ounces, and
gold production decreased 27% to 1,591 ounces compared to Q1
2020.
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
-2%
Daily throughput
4,247
4,315
-2%
Copper grade
0.77%
0.89%
-13%
Silver grade (g/t)
19.68
21.09
-7%
Gold grade (g/t)
0.19
0.28
-32%
Copper recovery
82.80%
85.91%
-4%
Silver recovery
83.60%
82.01%
2%
Gold recovery
69.60%
63.89%
9%
Copper production (000 lb)
5,213
6,391
-18%
Silver production (000 oz)
197
210
-6%
Gold production (oz)
1,591
2,191
-27%
Copper equivalent pounds (000's)(1)
7,285
9,147
-20%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q1 2021 were calculated using the following realized
prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb,
$1,778/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q1 2020 were calculated using the following
realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb
Pb, $1,585/oz Au.
Cusi Mine, Mexico
Operating at an average throughput of 875 tpd, Cusi processed 2%
lower tonnes of ore in Q1 2021 as compared to Q1 2020. Silver
grades were 30% higher than Q1 2020 as mining continued in the
high-grade Northeast Southwest vein system. Silver production
increased 29% to 0.3 million ounces, but gold and lead production
were 27% and 37% lower due to lower grades for these metals.
Additionally, production was impacted by the large scale power
outage originating in Texas that was experienced during the
quarter. Silver equivalent ounces produced for the quarter
increased to 336,000 ounces or 17% higher as compared to Q1
2020.
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
-2%
Daily throughput
875
890
-2%
Silver grade (g/t)
157.22
120.88
30%
Gold grade (g/t)
0.16
0.18
-11%
Lead grade
0.22%
0.33%
-33%
Silver recovery (flotation)
80.91%
80.21%
1%
Gold recovery (lixiviation)
39.57%
46.53%
-15%
Lead recovery
81.46%
84.17%
-3%
Silver production (000 oz)
313
243
29%
Gold production (oz)
155
212
-27%
Lead production (000 lb)
298
471
-37%
Silver equivalent ounces (000's)(1)
334
286
17%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q1 2021 were calculated using the following realized
prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb,
$1,778/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q1 2020 were calculated using the following
realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb
Pb, $1,585/oz Au.
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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version on businesswire.com: https://www.businesswire.com/news/home/20210416005108/en/
Mike McAllister V.P., Investor Relations Sierra Metals
Inc. +1 (416) 366-7777 Email: info@sierrametals.com
Luis Marchese CEO Sierra Metals Inc. +1(416) 366-7777
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