- Bolivar’s throughput in Q2 2023 was 405,987 tonnes, an
increase of 36% from Q1 2023 and 58% from Q2 2022;
- Bolivar’s historic record copper equivalent production of
10.7 million pounds in Q2 2023;
- Yauriocha’s throughput in Q2 2023 increased 11% over Q1
2023;
- Consolidated production increased for all metals; Copper
equivalent production increased 21% and 22% over Q1 2023 and Q2
2022, respectively.
(All metal prices reported in USD)
Sierra Metals Inc. (TSX: SMT) (OTC: SMTSF) (“Sierra
Metals” or “the Company”) announces second quarter 2023
production results from its three underground mines in Latin
America: Yauricocha, a polymetallic mine in Peru and Bolivar a
copper mine and Cusi a silver mine each in Mexico.
Consolidated Q2 2023 results will be released before
market-open on Monday, August 14th followed with management hosting
a conference call and webcast the same day at 11:00 AM EDT.
Ernesto Balarezo, CEO of Sierra Metals, commented, “As we
complete our first half of 2023, we are pleased with the continued
operational recovery at Bolivar. Q2 2023 marks the fourth
sequential strong quarter for the mine, achieving production of
more than 400,000 tonnes, a landmark amount not achieved by this
mine since Q3 2020. These production numbers reinforce our
confidence in Bolivar's potential to grow further.
The Yauricocha mine operated below its full capacity of 3,600
tonnes per day ("tpd"), which was in line with our expectations. We
continue to believe that the Yauricocha mine can get back to its
full production capacity of 3,600 tonnes on receipt of the permits
to operate below the 1120 level.”
Mr. Balarezo concluded, “With two strong quarters of production
during this year, we have shown that with our focus on safe and
efficient operations combined with the various organizational
changes, we can achieve the desired results and unlock the
potential of our two core mines."
Consolidated Production
Results
Six months ended June 30, Consolidated Production
Q2 2023 Q1 2023 % Var. Q2 2022 %
Var.
2023
2022
Tonnes processed
702,052
577,284
22
%
640,181
10
%
1,279,336
1,230,911
Daily throughput
8,023
6,598
22
%
7,316
10
%
7,310
7,034
Silver production (000 oz)
740
622
19
%
608
22
%
1,362
1,342
Copper production (000 lb)
10,459
8,285
26
%
8,334
26
%
18,744
14,658
Zinc production (000 lb)
12,228
10,579
16
%
10,426
17
%
22,807
20,918
Lead production (000 lb)
4,256
3,060
39
%
3,333
28
%
7,316
7,549
Gold Production (oz)
4,442
3,910
14
%
2,622
69
%
8,352
4,545
Copper equivalent pounds (000's)(1)
21,705
18,009
21
%
17,794
22
%
39,729
33,670
(1) Copper equivalent pounds were calculated using the following
realized prices: Q2 2023: $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn,
$0.96/lb Pb, $1,977/oz Au; Q1 2023: $22.57/oz Ag, $4.06/lb Cu,
$1.42/lb Zn, $0.97/lb Pb, $1,891/oz Au; Q2 2022: $22.65/oz Ag,
$4.30/lb Cu, $1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au; 6M 2023:
$23.37/oz Ag, $4.02/lb Cu, $1.29/lb Zn, $0.96/lb Pb, $1,934/oz Au;
6M 2022: $23.30/oz Ag, $4.42/lb Cu, $1.74/lb Zn, $1.03/lb Pb,
$1,873/oz Au.
The Company achieved consolidated throughput from its three
operating mines of 702,052 tonnes during the second quarter of
2023, which was 22% higher than Q1 2023 and 10% higher than the
second quarter of 2022. The strong consolidated throughput for Q2
2023 was underpinned by the continued improvements at the Bolivar
mine, which registered an increase in throughput for the fourth
quarter in a row.
Consolidated copper equivalent production for Q2 2023 was 21.7
million pounds, an increase of 21% and 22% over Q1 2023 and Q2
2022, respectively. Consolidated production for all metals
increased during the quarter despite lower copper and gold
production from Yauricocha. Q2 2023 silver equivalent ounces
production from the non-core Cusi mine was lower by or 5% and 15%
lower than Q1 2023 and Q2 2022, respectively, and had little impact
on consolidated copper equivalent production results of the Company
in Q2 2023.
Yauricocha Mine, Peru
Throughput at the Yauricocha Mine for Q2 2023 was 244,315 tones,
11% higher than in Q1 2023, but 23% lower than in Q2 2022. This
anticipated decline was due to the continued depletion of the ore
above the 1120 level. Copper equivalent pound production for Q2
2023 was 21% lower than Q2 2022 as the reduced throughput was
partially offset by higher grades of lead, zinc and silver coming
from the high-grade small ore bodies. Copper and gold grades
declined due to the lower contribution from the Esperanza zone.
When compared to Q1 2023, there was a 6% increase in the copper
equivalent production during Q2 2023, as the higher throughput was
partially offset by the impact of lower copper grades, and
recoveries for copper and silver.
A summary of production from the Yauricocha Mine for Q2 2023 is
provided below:
Six months ended June 30, Yauricocha Production Q2
2023 Q1 2023 % Var. Q2 2022 % Var.
2023
2022
Tonnes processed
244,315
219,145
11
%
317,087
-23
%
463,460
632,337
Daily throughput
2,792
2,505
11
%
3,624
-23
%
2,648
3,613
Silver grade (g/t)
54.83
46.45
18
%
44.65
23
%
50.86
42.03
Copper grade
0.72
%
0.79
%
-9
%
0.93
%
-23
%
0.75
%
0.86
%
Lead grade
0.87
%
0.70
%
24
%
0.58
%
50
%
0.79
%
0.62
%
Zinc grade
2.65
%
2.54
%
4
%
1.88
%
41
%
2.60
%
1.86
%
Gold Grade (g/t)
0.40
0.46
-13
%
0.54
-26
%
0.43
0.53
Silver recovery
73.25
%
76.16
%
-4
%
58.64
%
25
%
74.58
%
61.30
%
Copper recovery
72.21
%
75.70
%
-5
%
78.66
%
-8
%
73.37
%
77.90
%
Lead recovery
83.88
%
81.66
%
3
%
75.81
%
11
%
82.67
%
78.28
%
Zinc recovery
85.54
%
86.18
%
-1
%
79.21
%
8
%
85.82
%
80.12
%
Gold Recovery
20.33
%
23.39
%
-13
%
21.62
%
-6
%
21.82
%
20.84
%
Silver production (000 oz)
316
249
27
%
267
18
%
565
523
Copper production (000 lb)
2,808
2,895
-3
%
5,127
-45
%
5,703
9,406
Lead production (000 lb)
3,930
2,778
41
%
3,060
28
%
6,708
6,888
Zinc production (000 lb)
12,228
10,579
16
%
10,426
17
%
22,807
20,918
Gold Production (oz)
633
754
-16
%
1,179
-46
%
1,387
2,236
Copper equivalent pounds (000's)(1)
9,525
9,003
6
%
12,105
-21
%
18,567
22,969
(1) Copper equivalent pounds were calculated using the following
realized prices: Q2 2023: $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn,
$0.96/lb Pb, $1,977/oz Au; Q1 2023: $22.57/oz Ag, $4.06/lb Cu,
$1.42/lb Zn, $0.97/lb Pb, $1,891/oz Au; Q2 2022: $22.65/oz Ag,
$4.30/lb Cu, $1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au; 6M 2023:
$23.37/oz Ag, $4.02/lb Cu, $1.29/lb Zn, $0.96/lb Pb, $1,934/oz Au;
6M 2022: $23.30/oz Ag, $4.42/lb Cu, $1.74/lb Zn, $1.03/lb Pb,
$1,873/oz Au.
Bolivar Mine, Mexico
Operating at 4,640 tpd during Q2 2023, the Bolivar Mine achieved
405,987 tonnes of throughput, an increase of 36% and 58% over Q1
2023 and Q2 2022 respectively, attributable to substantial
improvements in ventilation and drainage, which allowed for more
meters of production drilling and better access to the mining
zones. Grades were higher for all metals in comparison with Q1 2023
and Q2 2022, except for a slight decrease in gold grades as
compared to Q1 2023. The increase in grades was effectively the
direct result of mining in the Bolivar NW zone.
In Q2 2023, copper equivalent production was a record 10.7
million pounds, as the mine recorded an increased production for
all metals. Copper, silver and gold production for Q2 2023 were up
139%, 149% and 187%, respectively, as compared to Q2 2022.
A summary of production for the Bolivar Mine for Q2 2023 is
provided below:
Six months ended June 30, Bolivar Production Q2
2023 Q1 2023 % Var. Q2 2022 % Var.
2023
2022
Tonnes processed (t)
405,987
299,017
36
%
256,372
58
%
705,004
443,928
Daily throughput
4,640
3,417
36
%
2,930
58
%
4,029
2,537
Copper grade
0.92
%
0.87
%
6
%
0.63
%
46
%
0.90
%
0.61
%
Silver grade (g/t)
19.65
17.39
13
%
12.36
59
%
18.69
11.77
Gold grade (g/t)
0.42
0.45
-7
%
0.24
75
%
0.44
0.20
Copper recovery
92.92
%
94.25
%
-1
%
90.61
%
3
%
93.51
%
88.35
%
Silver recovery
80.45
%
83.99
%
-4
%
80.99
%
-1
%
82.06
%
84.11
%
Gold recovery
66.38
%
69.47
%
-4
%
65.93
%
1
%
67.72
%
65.11
%
Copper production (000 lb)
7,651
5,390
42
%
3,207
139
%
13,041
5,252
Silver production (000 oz)
207
140
48
%
83
149
%
347
141
Gold production (oz)
3,678
3,037
21
%
1,283
187
%
6,715
1,875
Copper equivalent pounds (000's)(1)
10,721
7,588
41
%
4,199
155
%
18,282
6,788
(1) Copper equivalent pounds were calculated using the following
realized prices: Q2 2023: $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn,
$0.96/lb Pb, $1,977/oz Au; Q1 2023: $22.57/oz Ag, $4.06/lb Cu,
$1.42/lb Zn, $0.97/lb Pb, $1,891/oz Au; Q2 2022: $22.65/oz Ag,
$4.30/lb Cu, $1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au; 6M 2023:
$23.37/oz Ag, $4.02/lb Cu, $1.29/lb Zn, $0.96/lb Pb, $1,934/oz Au;
6M 2022: $23.30/oz Ag, $4.42/lb Cu, $1.74/lb Zn, $1.03/lb Pb,
$1,873/oz Au.
Cusi Mine, Mexico
The non-core Cusi Mine had a lower Q2 2023 throughput and was
negatively impacted by the availability of mining equipment and
frequent flooding during the quarter. Operating at 591 tpd, the
Cusi mine processed 51,750 tonnes, which was 12% lower than Q1 2023
and 22% lower than Q2 2022. Higher silver and lead grades combined
with improved gold recoveries partially offset the impact of lower
throughput resulting in silver equivalent production of 241 koz
during Q2 2023, which was 5% and 15% below the silver equivalent
production achieved in Q1 2023 and Q2 2022 respectively.
A summary of production for the Cusi Mine for Q2 2023 is
provided below:
Six months ended June 30, Cusi Production Q2
2023 Q1 2023 % Var. Q2 2022 % Var.
2023
2022
% Var. Tonnes processed (t)
51,750
59,122
-12
%
66,722
-22
%
110,872
154,646
Daily throughput(2)
591
676
-12
%
763
-22
%
634
884
Silver grade (g/t)
160.18
141.80
13
%
146.34
9
%
150.38
162.04
Gold grade (g/t)
0.14
0.13
8
%
0.17
-18
%
0.13
0.18
Lead grade
0.33
%
0.24
%
38
%
0.23
%
43
%
0.28
%
0.24
%
Silver recovery (flotation)
81.67
%
86.30
%
-5
%
82.07
%
0
%
83.86
%
83.93
%
Gold recovery (lixiviation)
58.06
%
46.57
%
25
%
43.64
%
33
%
52.90
%
47.17
%
Lead recovery
86.54
%
88.67
%
-2
%
80.78
%
7
%
86.77
%
77.86
%
Silver production (000 oz)
217
233
-7
%
258
-16
%
450
678
Gold production (oz)
131
119
10
%
160
-18
%
250
434
Lead production (000 lb)
326
282
16
%
273
19
%
608
661
Silver equivalent ounces (000's)(1)
241
255
-5
%
283
-15
%
496
742
(1) Silver equivalent ounces were calculated using the following
realized prices: Q2 2023: $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn,
$0.96/lb Pb, $1,977/oz Au; Q1 2023: $22.57/oz Ag, $4.06/lb Cu,
$1.42/lb Zn, $0.97/lb Pb, $1,891/oz Au; Q2 2022: $22.65/oz Ag,
$4.30/lb Cu, $1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au; 6M 2023:
$23.37/oz Ag, $4.02/lb Cu, $1.29/lb Zn, $0.96/lb Pb, $1,934/oz Au;
6M 2022: $23.30/oz Ag, $4.42/lb Cu, $1.74/lb Zn, $1.03/lb Pb,
$1,873/oz Au.
Conference Call and
Webcast
Management will host a conference call and webcast to discuss Q2
2023 financial and operating results on Monday, August 14, 2023 at
11:00 AM EDT. Details are as follows:
Webcast:
https://services.choruscall.ca/links/sierrametalsq22023.html
Dial-in: Canada/USA Toll Free: 1-800-319-4610
Other: +1-416-915-3239
Participants are asked to dial in 5-10 minutes before the
scheduled start time and ask to join the Sierra Metals Second
Quarter 2023 Consolidated Financial Results call.
About Sierra Metals
Sierra Metals Inc. a diversified Canadian mining company with
green metal exposure including increasing copper production and
base metal production with precious metals byproduct credits, is
focused on the production and development of its Yauricocha Mine in
Peru, and Bolivar Mine in Mexico. The Company is focused on safely
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.
Forward-Looking Statements
This press release contains forward-looking information within
the meaning of Canadian securities legislation, including
statements with respect to the timing of the Company’s Q2 2023
results and the capacity at the Yauricocha Mine Forward-looking
information relates to future events or the anticipated performance
of Sierra and reflect management's expectations or beliefs
regarding such future events and anticipated performance based on
an assumed set of economic conditions and courses of action. In
certain cases, statements that contain forward-looking information
can be identified by the use of words such as "plans", "expects",
"is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", "believes" or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur" or
"be achieved" or the negative of these words or comparable
terminology. By its very nature forward-looking information
involves known and unknown risks, uncertainties and other factors
that may cause actual performance of Sierra to be materially
different from any anticipated performance expressed or implied by
such 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 28,
2023 for its fiscal year ended December 31, 2022 and other risks
identified in the Company's filings with Canadian securities
regulators, which are available at www.sedar.com.
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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version on businesswire.com: https://www.businesswire.com/news/home/20230725651781/en/
For further information regarding Sierra Metals, please visit
www.sierrametals.com or contact: Investor Relations Sierra
Metals Inc. Tel: +1 (416) 366-7777 Email: info@sierrametals.com
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