(All metal prices reported in USD)
Sierra Metals Inc. (TSX: SMT) (BVL:SMT) (NYSE AMERICAN:
SMTS) (“Sierra Metals” or “the Company”) announces second quarter
2022 production results.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220727005956/en/
Photo 1 Arial Photo of Bolivar Mine
(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.
Second Quarter 2022 Consolidated
Production Highlights
- Consolidated production guidance met with ongoing operational
turnaround program at Bolivar
- Consolidated copper equivalent production of 17.8 million
pounds; a 12% increase from Q1 2022
- Average daily throughput at Bolivar of 2,930 tonnes per day; a
37% increase from Q1 2022
Consolidated Q2 2022 results will be released on Thursday
August 11th with a Shareholder Conference Call and Webcast to be
held on Friday August 12th at 11:00 AM EDT
Luis Marchese, CEO of Sierra Metals, commented, “We continue to
focus on the goals set forth when we announced our operational
turnaround program, maintaining our strong commitment to health,
safety, environment and the well-being of our stakeholders. In the
current reduced commodities price and high inflation environment,
we continue to monitor operations and production to determine any
necessary modifications to our plans”
“Earlier this year, we provided a timeline for delivering
initial improvements at our operations, which included a plan to
ramp up production starting in Q2 of this year. Our turnaround
program is starting to take effect with quarter-over-quarter
improvements. At Yauricocha, we report quarter-over-quarter
improvements to average daily tonnage and slightly higher grades
for all metals except lead, with a 12% increase in copper
equivalent production over Q1 2022. At Bolivar, when compared to Q1
2022, we report a 37% quarter-over-quarter improvement in average
daily throughput during this quarter, along with slight increases
to grades which resulted in a 62% increase in copper equivalent
production over Q1 2022. At Cusi, an unexpected underground
flooding event during the quarter resulted in a 38% decrease in
quarter-over-quarter silver equivalent production.”
He concluded, “We are trending in the right direction with
consolidated production improvements from our mines, having
achieved production within our guidance for H1. Our disciplined
approach to achieve stabilized mining operations continues, with
our primary goal in mind – to achieve a full recovery at Bolivar.
Infill drilling and exploration programs continue, in order to
better define current resources and aim for new high grade ore
bodies such as the Fortuna discovery at Yauricocha.”
Consolidated Production
Results
Six months ended June 30, Consolidated Production
Q2 2022 Q1 2022 % Var. Q2 2021 %
Var.
2022
2021
Tonnes processed
640,181
590,730
8%
787,534
-19%
1,230,911
1,561,955
Daily throughput
7,316
6,751
8%
9,000
-19%
7,034
8,925
Silver production (000 oz)
608
734
-17%
954
-36%
1,342
1,915
Copper production (000 lb)
8,334
6,324
32%
9,535
-13%
14,658
17,430
Lead production (000 lb)
3,333
4,216
-21%
7,960
-58%
7,549
16,964
Zinc production (000 lb)
10,426
10,492
-1%
21,133
-51%
20,918
45,256
Gold Production (oz)
2,622
1,923
36%
2,812
-7%
4,545
5,448
Copper equivalent pounds (000's)(1)
17,794
15,896
12%
24,786
-28%
33,670
50,157
(1) Copper equivalent pounds for Q2 2022 were calculated
using the following realized prices: $22.65/oz Ag, $4.30/lb Cu,
$1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au. Copper 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.
Copper equivalent pounds for 6M 2022 were calculated using the
following realized prices: $23.30/oz Ag, $4.42/lb Cu, $1.74/lb Zn,
$1.03/lb Pb, $1,873/oz Au. Copper 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.
Q2 2022 throughput from the Yauricocha Mine was 317,087 tonnes
which is in line with throughput during Q1 2022. Higher grades in
all metals with the exception of lead, resulted in an 11% increase
to copper equivalent pounds produced. When compared to Q2 2021,
throughput from the Yauricocha Mine was 4% lower when combined with
lower grades, except for copper and gold, which resulted in a 21%
decrease in copper equivalent pounds produced.
At the Bolivar Mine, throughput was 256,372 tonnes during Q2
2022 or 37% higher as compared to Q1 2022. Higher copper, silver
and gold grades resulted in a 62% increase to copper equivalent
pound production when compared to the previous quarter. When
compared to Q2 2021, throughput at Bolivar was 33% lower and grades
were lower for all metals except for gold, resulting in a 46%
decrease in copper equivalent pounds produced.
At Cusi, throughput was 66,722 tonnes during Q2 2022 or 21%
lower as compared to Q1 2022. Lower throughput and lower grades
resulted in a 38% decrease in silver equivalent production. When
comparing Q2 2022 to Q2 2021, silver equivalent production remained
flat due to higher head grades for all metals, despite a 9%
decrease in throughput.
Yauricocha Mine, Peru
The Yauricocha Mine processed 317,087 tonnes during Q2 2022,
which was in line with throughput in Q1 2022. However, we note an
improvement when compared to Q1 2022 copper equivalent pound
production, with an 11% increase to 12.1 million pounds due to
improved grades in all metals with the exception of lead.
When compared to Q2 2021, there was a 4% decrease from the
328,909 tonnes processed in the same quarter of 2021. Negative
variances in the lead and zinc grades and positive variance in the
copper grade resulted from mining in the Esperanza ore body.
Despite a 39% increase in copper production, copper equivalent
production was 21% lower than the Q2 2021 production, due to lower
quantities of silver, zinc and lead produced.
A summary of production from the Yauricocha Mine for Q2 2022 is
provided below:
Six months ended June 30, Yauricocha Production Q2
2022 Q1 2022 % Var. Q2 2021 % Var.
2022
2021
Tonnes processed
317,087
315,250
1%
328,909
-4%
632,337
655,120
Daily throughput
3,624
3,603
1%
3,759
-4%
3,613
3,744
Silver grade (g/t)
44.65
39.40
13%
56.94
-22%
42.03
55.65
Copper grade
0.93%
0.79%
18%
0.70%
33%
0.86%
0.63%
Lead grade
0.58%
0.66%
-12%
1.20%
-52%
0.62%
1.27%
Zinc grade
1.88%
1.83%
3%
3.27%
-43%
1.86%
3.49%
Gold Grade (g/t)
0.54
0.52
4%
0.45
20%
0.53
0.44
Silver recovery
58.64%
63.99%
-8%
80.14%
-27%
61.30%
79.70%
Copper recovery
78.66%
77.22%
2%
72.67%
8%
77.90%
69.84%
Lead recovery
75.81%
82.50%
-8%
90.14%
-16%
78.28%
90.15%
Zinc recovery
79.21%
82.09%
-4%
89.23%
-11%
80.12%
89.82%
Gold Recovery
21.62%
20.06%
8%
21.99%
-2%
20.84%
20.91%
Silver production (000 oz)
267
256
4%
483
-45%
523
934
Copper production (000 lb)
5,127
4,279
20%
3,697
39%
9,406
6,379
Lead production (000 lb)
3,060
3,828
-20%
7,831
-61%
6,888
16,537
Zinc production (000 lb)
10,426
10,492
-1%
21,133
-51%
20,918
45,256
Gold Production (oz)
1,179
1,057
12%
1,043
13%
2,236
1,933
Copper equivalent pounds (000's)(1)
12,105
10,876
11%
15,308
-21%
22,969
31,142
(1) Copper equivalent pounds for Q2 2022 were
calculated using the following realized prices: $22.65/oz Ag,
$4.30/lb Cu, $1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au. Copper
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. Copper equivalent pounds for 6M 2022 were
calculated using the following realized prices: $23.30/oz Ag,
$4.42/lb Cu, $1.74/lb Zn, $1.03/lb Pb, $1,873/oz Au. Copper
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.
Bolivar Mine, Mexico
The Bolivar mine processed 256,372 tonnes in Q2 2022, compared
to 187,556 tonnes in Q1 2022, which was a 37% increase. Higher
production as well as higher grades in all metals resulted in a 62%
increase in copper equivalent pound production.
When comparing Q2 2022 to Q2 2021, tonnes were 33% lower and
grades for copper and silver were 27% and 35% lower respectively,
while gold was 14% higher. The change in grade profile is due to
the depletion of Bolivar West and the new contribution of the
Bolivar NorthWest orebody. When compared to Q2 2021, the decrease
in throughput and grades resulted in a 46% decrease in copper
equivalent pounds produced during Q2 2022.
While the operational turnaround effort continues at Bolivar, we
expect higher plant throughput for the balance of the year, due to
improved access to mineralized areas including higher contribution
from the Bolivar Northwest zone.
A summary of production for the Bolivar Mine for Q2 2022 is
provided below:
Six months ended June 30, Bolivar Production Q2
2022 Q1 2022 % Var. Q2 2021 % Var.
Q2 2022
Q2 2021
Tonnes processed (t)
256,372
187,556
37%
385,331
-33%
443,928
756,939
Daily throughput
2,930
2,144
37%
4,404
-33%
2,537
4,325
Copper grade
0.63%
0.58%
9%
0.86%
-27%
0.61%
0.82%
Silver grade (g/t)
12.36
10.97
13%
19.06
-35%
11.77
19.31
Gold grade (g/t)
0.24
0.16
50%
0.21
14%
0.20
0.20
Copper recovery
90.61%
85.22%
6%
79.89%
13%
88.35%
82.25%
Silver recovery
80.99%
88.44%
-8%
85.74%
-6%
84.11%
85.13%
Gold recovery
65.93%
63.53%
4%
63.19%
4%
65.11%
66.95%
Copper production (000 lb)
3,207
2,045
57%
5,838
-45%
5,252
11,051
Silver production (000 oz)
83
58
43%
202
-59%
141
399
Gold production (oz)
1,283
592
117%
1,627
-21%
1,875
3,218
Copper equivalent pounds (000's)(1)
4,199
2,597
62%
7,754
-46%
6,788
15,024
(1) Copper equivalent pounds for Q2 2022 were
calculated using the following realized prices: $22.65/oz Ag,
$4.30/lb Cu, $1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au. Copper
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. Copper equivalent pounds for 6M 2022 were
calculated using the following realized prices: $23.30/oz Ag,
$4.42/lb Cu, $1.74/lb Zn, $1.03/lb Pb, $1,873/oz Au. Copper
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.
Cusi Mine, Mexico
Operating at an average throughput of 763 tpd, Cusi processed
21% fewer tonnes of ore in Q2 2022 as compared to Q1 2022, mainly
due to the unexpected underground flooding issues in the quarter.
The decrease in grades and throughput at the Cusi Mine resulted in
a 38% decrease in silver equivalent ounces.
When comparing Q2 2022 to Q2 2021, the mine processed 9% fewer
tonnes of ore. Silver production decreased 4% to 0.3 million
ounces, gold production increased 13% to 160 ounces and lead
production increased 112% to 0.3 million pounds. Silver equivalent
production of 283,000 ounces for the quarter was in line with Q2
2021.
A summary of production for the Cusi Mine for Q2 2022 is
provided below:
Six months ended June 30, Cusi Production Q2
2022 Q1 2022 % Var. Q2 2021 % Var.
Q2 2022 Q2 2021 % Var. Tonnes
processed (t)
66,722
87,924
-24%
73,294
-9%
154,646
149,896
Daily throughput(2)
763
964
-21%
838
-9%
884
857
Silver grade (g/t)
146.34
173.96
-16%
138.94
5%
162.04
148.28
Gold grade (g/t)
0.17
0.19
-11%
0.16
6%
0.18
0.16
Lead grade
0.23%
0.26%
-12%
0.10%
130%
0.24%
0.16%
Silver recovery (flotation)
82.07%
85.37%
-4%
81.96%
0%
83.93%
81.39%
Gold recovery (lixiviation)
43.64%
49.94%
-13%
37.41%
17%
47.17%
38.51%
Lead recovery
80.78%
76.96%
5%
82.95%
-3%
77.86%
81.90%
Silver production (000 oz)
258
420
-39%
269
-4%
678
582
Gold production (oz)
160
274
-42%
142
13%
434
297
Lead production (000 lb)
273
388
-30%
129
112%
661
427
Silver equivalent ounces (000's)(1)
283
458
-38%
283
0%
742
617
(1) Silver equivalent ounces for Q2 2022 were calculated
using the following realized prices: $22.65/oz Ag, $4.30/lb Cu,
$1.79/lb Zn, $1.00/lb Pb, $1,872/oz Au. Silver equivalent ounces
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 for 6M 2022 were calculated using the
following realized prices: $23.30/oz Ag, $4.42/lb Cu, $1.74/lb Zn,
$1.03/lb Pb, $1,873/oz Au. Silver equivalent ounces 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.
Quality Control Américo
Zuzunaga, FAusIMM (Mining Engineer) and Vice President, Technical,
is a Qualified Person under National Instrument 43-101 – Standards
of Disclosure for Mineral Projects.
About Sierra Metals Sierra
Metals Inc. is a diversified Canadian mining company with Green
Metal exposure including increasing copper production and base
metal production with precious metals byproduct credits, focused on
the production and development of its 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.
Continue to Follow, Like and Watch our progress:
Web: www.sierrametals.com | Twitter: sierrametals
| Facebook: SierraMetalsInc | LinkedIn: Sierra Metals
Inc | Instagram: sierrametals
Forward-Looking Statements
This press release contains forward-looking information within
the meaning of Canadian and United States securities legislation.
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 16,
2022 for its fiscal year ended December 31, 2021 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/20220727005956/en/
Investor Relations Sierra Metals Inc. Tel: +1 (416)
366-7777 Email: info@sierrametals.com
Luis Marchese CEO Sierra Metals Inc. Tel: +1 (416)
366-7777
Sierra Metals (TSX:SMT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sierra Metals (TSX:SMT)
Historical Stock Chart
From Apr 2023 to Apr 2024