Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE
AMERICAN:SMTS) ("Sierra Metals" or "the Company") is reporting
second-quarter 2021 production results, as the Company continues to
deal with the effect of the COVID-19 pandemic at its
operations.
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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.
Second Quarter 2021 Production
Highlights
- Copper production of 9.5 million pounds; a 2% decrease from
Q2 2020
- Silver production of 1.0 million ounces; a 67% increase from
Q2 2020
- Gold production of 2,812 ounces; a 2% increase from Q2
2020
- Zinc production of 21.1 million pounds; a 54% increase from
Q2 2020
- Lead production of 8.0 million pounds; a 24% increase from
Q2 2020
- Copper equivalent production of 24.8 million pounds; a 9%
increase from Q2 2020
The Company achieved 62% and 25% increase in throughput as
compared to Q2 2020, at its Yauricocha and Bolivar mines
respectively. The Yauricocha mine achieved 328,909 tonnes during
the quarter at an average rate of 3,759 tpd. Earlier during the
quarter, the Company announced receipt of permit to build and
operate an expansion of its capacity to 3,600 tpd plus an allowance
for up to an additional 5%.
Consolidated copper production decreased 2% to 9.5 million
pounds, silver increased 67% to 1.0 million ounces, zinc increased
54% to 21.1 million pounds, lead increased 24% to 8.0 million
pounds, and gold increased 2% to 2,812 ounces compared to Q2
2020.
Luis Marchese, President, and CEO of Sierra Metals commented:
"Despite the challenges we have faced due to the Covid-19 Pandemic,
I am pleased with the relatively solid production performance in Q2
2021. The Company continues to face operational difficulties
related to COVID-19 at all mines but particularly in Peru. We
expect that we will continue to be impacted for the remainder of
the year and as such we are reviewing our production guidance and
may revise it as part of our Q2-2021 consolidated financial
results."
He continued, “Looking ahead to the second half of 2021, we
anticipate seeing an improvement in production results over the
first half of the year as we continue to manage the implications of
COVID-19 using best practices. Our goal continues to be avoiding
any mine closures while ensuring that strict protocols remain in
place to protect the wellbeing of our employees as well as the
local communities. Additionally, we have commenced implementation
on a 500,000 tonne per year magnetite concentrate plant at Bolivar
which is expected to be operational early next year. We also
received the final permit required for the construction and
operation of the expansion of throughput at Yauricocha to 3,600
tonnes per day. We continue to work on the completion of
Preliminary Feasibility Studies for all three mines to support
planned expansions at all mines starting in 2024. Brownfield and
greenfield exploration programs continue, and we continue to strive
to optimize and improve operations with an aim of reducing costs
where possible in this challenging environment.”
Consolidated Production
Results
Consolidated Production Three Months Ended June 30
Six Months Ended June 30
2021
2020
% Var.
2021
2020
% Var.
Tonnes processed
787,534
511,485
54%
1,561,955
1,252,183
25%
Daily throughput
9,000
5,846
54%
8,925
7,155
25%
Silver production (000 oz)
954
572
67%
1,915
1,520
26%
Copper production (000 lb)
9,535
9,708
-2%
17,430
21,484
-19%
Lead production (000 lb)
7,960
6,406
24%
16,964
15,485
10%
Zinc production (000 lb)
21,133
13,741
54%
45,256
35,387
28%
Gold Production (oz)
2,812
2,762
2%
5,448
6,419
-15%
Silver equivalent ounces (000's)(1)
4,043
3,297
23%
7,778
8,028
-3%
Copper equivalent pounds (000's)(1)
24,786
22,743
9%
50,157
54,016
-7%
Zinc equivalent pounds (000's)(1)
81,114
61,353
32%
160,750
146,032
10%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q2 2021 were calculated using the following realized
prices: $26.80/oz Ag, $4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb,
$1,818/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q2 2020 were calculated using the following
realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb
Pb, $1,722/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2021 were calculated using the following
realized prices: $26.62/oz Ag, $4.13/lb Cu, $1.29/lb Zn, $0.94/lb
Pb, $1,798/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2020 were calculated using the following
realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb
Pb, $1,654/oz Au.
Yauricocha Mine, Peru
The Yauricocha Mine demonstrated its operational flexibility by
processing a record 328,909 tonnes during Q2 2021, which is a 62%
increase from Q2 2020. On June 16, 2021, the Company announced
receipt of a permit from the Peruvian Ministry of Energy and Mines,
which allows for the construction and operation at a capacity of
3,600 tpd.
The higher throughput was partially offset by lower head grades
for all metals, resulting in a 7% higher copper equivalent
production as compared to Q2 2020. In terms of zinc equivalents,
this was a 29% increase over the same quarter of 2020. Copper
production for the quarter was 11% lower, while silver, lead, zinc
and gold production increased by 35%, 22%, 54% and 23% respectively
as compared to Q2 2020. Due to COVID-19 operating restrictions the
focus has been on larger but lowered grade ore bodies to meet
tonnages with a reduced work force.
A summary of production from the Yauricocha Mine for Q2 2021 is
provided below:
Yauricocha Production Three Months Ended June 30
Six Months Ended June 30
2021
2020
% Var.
2021
2020
% Var.
Tonnes processed
328,909
202,534
62%
655,120
487,759
34%
Daily throughput
3,759
2,315
62%
3,744
2,787
34%
Silver grade (g/t)
56.94
66.37
-14%
55.65
66.07
-16%
Copper grade
0.70%
1.21%
-42%
0.63%
1.17%
-46%
Lead grade
1.20%
1.63%
-26%
1.27%
1.59%
-20%
Zinc grade
3.27%
3.48%
-6%
3.49%
3.74%
-7%
Gold Grade (g/t)
0.45
0.62
-27%
0.44
0.66
-33%
Silver recovery
80.14%
82.82%
-3%
79.70%
82.82%
-4%
Copper recovery
72.67%
77.19%
-6%
69.84%
77.19%
-10%
Lead recovery
90.14%
88.08%
2%
90.15%
88.08%
2%
Zinc recovery
89.23%
88.32%
1%
89.82%
88.32%
2%
Gold Recovery
21.99%
21.18%
4%
20.91%
21.18%
-1%
Silver production (000 oz)
483
358
35%
934
853
9%
Copper production (000 lb)
3,697
4,164
-11%
6,379
9,548
-33%
Lead production (000 lb)
7,831
6,406
22%
16,537
15,014
10%
Zinc production (000 lb)
21,133
13,741
54%
45,256
35,387
28%
Gold Production (oz)
1,043
850
23%
1,933
2,104
-8%
Copper equivalent pounds (000's)(1)
15,308
14,354
7%
31,142
34,549
-10%
Zinc equivalent pounds (000's)(1)
49,923
38,723
29%
99,701
93,404
7%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q2 2021 were calculated using the following realized
prices: $26.80/oz Ag, $4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb,
$1,818/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q2 2020 were calculated using the following
realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb
Pb, $1,722/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2021 were calculated using the following
realized prices: $26.62/oz Ag, $4.13/lb Cu, $1.29/lb Zn, $0.94/lb
Pb, $1,798/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2020 were calculated using the following
realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb
Pb, $1,654/oz Au.
Bolivar Mine, Mexico
The Bolivar Mine processed 385,331 tonnes in Q2 2021, which is a
25% increase from the Q2 2020 throughput. The average daily
throughput realized during the quarter was 4,404 tpd. Head grades
for copper, silver, and gold were 8%, 27%, and 30% lower,
respectively, as compared to Q2 2020. Copper equivalent production
for Q2 2021 decreased 8% as compared to Q2 2020, because of lower
silver (6%) and gold (15%) production offset by 5% higher copper
production. Production continues to be focused more on the Mina de
Fierro zone in Q2 2021 as part of our COVID-19 management plan.
Mina de Fierro is a larger ore body with greater tonnages; however,
the head grades and recoveries are lower than the Bolivar West
zone. It is expected that as the Bolivar Mine returns to more
normal operations and more ore is taken from the Bolivar West zone
that we will see and improvement in head grades and recoveries in
the future.
A summary of production for the Bolivar Mine for Q2 2021 is
provided below:
Bolivar Production Three Months Ended June 30 Six
Months Ended June 30
2021
2020
% Var.
2021
2020
% Var.
Tonnes processed (t)
385,331
308,951
25%
756,939
686,513
10%
Daily throughput
4,404
3,531
25%
4,325
3,923
10%
Copper grade
0.86%
0.93%
-8%
0.82%
0.91%
-10%
Silver grade (g/t)
19.06
26.00
-27%
19.31
23.30
-17%
Gold grade (g/t)
0.21
0.30
-30%
0.20
0.29
-31%
Copper recovery
79.89%
87.09%
-8%
82.25%
86.45%
-5%
Silver recovery
85.74%
82.80%
4%
85.13%
82.41%
3%
Gold recovery
63.19%
63.79%
-1%
66.95%
63.84%
5%
Copper production (000 lb)
5,838
5,544
5%
11,051
11,935
-7%
Silver production (000 oz)
202
214
-6%
399
424
-6%
Gold production (oz)
1,627
1,912
-15%
3,218
4,103
-22%
Copper equivalent pounds (000's)(1)
7,754
8,389
-8%
15,024
17,541
-14%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q2 2021 were calculated using the following realized
prices: $26.80/oz Ag, $4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb,
$1,818/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q2 2020 were calculated using the following
realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb
Pb, $1,722/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2021 were calculated using the following
realized prices: $26.62/oz Ag, $4.13/lb Cu, $1.29/lb Zn, $0.94/lb
Pb, $1,798/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2020 were calculated using the following
realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb
Pb, $1,654/oz Au.
Cusi Mine, Mexico
The Cusi Mine throughput for Q2 2021 was 73,294 tonnes or 838
tpd. There was no production during the same quarter of 2020, as
Cusi remained in care and maintenance throughout that quarter, due
to the government-mandated shutdown to contain the advancement of
COVID-19. Silver head grade for Q2 2021 was 138.94 g/t resulting in
silver production of 269,000 ounces. Additionally, gold production
was 142 ounces and lead production was 129,000 pounds respectively
during the quarter.
A summary of production for the Cusi Mine for Q2 2021 is
provided below:
Cusi Production Three Months Ended June 30 Six
Months Ended June 30
2021
2020
% Var.
2021
2020
% Var.
Tonnes processed (t)
73,294
-
N.A.
149,896
77,911
92%
Daily throughput
838
-
N.A.
857
890
-4%
Silver grade (g/t)
138.94
-
N.A.
148.28
120.88
23%
Gold grade (g/t)
0.16
-
N.A.
0.16
0.18
-11%
Lead grade
0.10%
-
N.A.
0.16%
0.33%
-52%
Silver recovery (flotation)
81.96%
-
N.A.
81.39%
80.21%
1%
Gold recovery (lixiviation)
37.41%
-
N.A.
38.51%
46.53%
-17%
Lead recovery
82.95%
-
N.A.
81.90%
84.17%
-3%
Silver production (000 oz)
269
-
N.A.
582
243
140%
Gold production (oz)
142
-
N.A.
297
212
40%
Lead production (000 lb)
129
-
N.A.
427
471
-9%
Silver equivalent ounces (000's)(1)
283
-
N.A.
617
286
116%
(1) Silver equivalent ounces and copper and zinc equivalent
pounds for Q2 2021 were calculated using the following realized
prices: $26.80/oz Ag, $4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb,
$1,818/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for Q2 2020 were calculated using the following
realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb
Pb, $1,722/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2021 were calculated using the following
realized prices: $26.62/oz Ag, $4.13/lb Cu, $1.29/lb Zn, $0.94/lb
Pb, $1,798/oz Au. Silver equivalent ounces and copper and zinc
equivalent pounds for 6M 2020 were calculated using the following
realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb
Pb, $1,654/oz Au.
Quality Control
All technical 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.
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 Bolsa de Valores de
Lima and on the Toronto Stock Exchange 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 (collectively, "forward-looking
information"). Forward-looking information includes, but is not
limited to, statements with respect to the date of the 2020
Shareholders' Meeting and the anticipated filing of the
Compensation Disclosure. 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 the Company's annual information form dated March 30,
2020 for its fiscal year ended December 31, 2020 and other risks
identified in the Company's filings with Canadian securities
regulators and the United States Securities and Exchange
Commission, which filings are available at www.sedar.com and
www.sec.gov, respectively.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210720006214/en/
Mike McAllister V.P., Investor Relations Sierra Metals
Inc. +1 (416) 366-7777 info@sierrametals.com
Luis Marchese CEO Sierra Metals Inc. +1 (416)
366-7777
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