• On a 2023 year-to-date consolidated basis, excluding Cusi, copper, silver, and gold production increased by 35%, 38%, and 92%, respectively, when compared to 2022.
  • Consolidated copper equivalent production, excluding Cusi, was 27% higher in Q3 2023 when compared to Q3 2022.
  • The Cusi Mine was placed in care and maintenance during the quarter, with the process to sell the mine currently underway.

(All metal prices reported in USD)

Sierra Metals Inc. (TSX: SMT; OTC: SMTSF) (“Sierra Metals” or the “Company”) reports third quarter 2023 production results from its Yauricocha polymetallic mine in Peru and the Bolivar copper mine in Mexico.

The Company’s Q3 2023 results will be released on Monday, November 13, 2023 before the market open, with management hosting a conference call and webcast the same day at 11:00 AM EST. Click here to register.

Ernesto Balarezo, CEO of Sierra Metals, commented, “During the quarter we continued to make tremendous strides in optimizing our strong portfolio of assets. We have been able to maintain Bolivar at desired levels of output and we are happy to see that our efforts at Yauricocha are paying off. We are now well along the process of divesting our Cusi silver mine, obtaining the permit to mine below the 1120 level at Yauricocha and improving our balance sheet. We remain steadfast in our focus to safely grow our business and create long-term value.”

Consolidated Production Results (Excluding Cusi)

Consolidated production results include the Yauricocha Mine and Bolivar Mine and do not include results from the Cusi Mine, which the Company deems to be a non-core asset.

Consolidated Production

 

 

Nine Months Ended September 30,

Excluding Cusi

Q3 2023

Q2 2023

Q3 2022

2023

2022

 

           

Tonnes processed

622,622

 

650,302

 

496,726

 

1,791,086

 

1,572,991

 

Daily throughput

7,116

 

7,432

 

5,677

 

6,823

 

5,992

 

 

           

 

           

Silver production (000 oz)

458

 

523

 

327

 

1,370

 

991

 

Copper production (000 lb)

9,477

 

10,459

 

6,299

 

28,221

 

20,957

 

Lead production (000 lb)

4,084

 

3,930

 

3,579

 

10,792

 

10,467

 

Zinc production (000 lb)

11,176

 

12,228

 

10,815

 

33,983

 

31,733

 

Gold Production (oz)

3,651

 

4,311

 

2,010

 

11,753

 

6,121

 

 

           

 

           

Copper equivalent pounds (000's)(1)

18,496

 

20,246

 

14,593

 

55,342

 

44,261

 

 

            (1) Copper equivalent pounds were calculated using the following realized prices:   Q3 2023 - $23.56/oz Ag, $3.78/lb Cu, $1.10/lb Zn, $0.98/lb Pb, $1,927/oz Au.   Q2 2023 - $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn, $0.96/lb Pb, $1,977/oz Au.   Q3 2022 - $19.26/oz Ag, $3.51/lb Cu, $1.49/lb Zn, $0.90/lb Pb, $1,730/oz Au.   9M 2023 - $23.44/oz Ag, $3.94/lb Cu, $1.23/lb Zn, $0.97/lb Pb, $1,932/oz Au.   9M 2022 - $21.95/oz Ag, $4.12/lb Cu, $1.66/lb Zn, $0.99/lb Pb, $1,826/oz Au.  

Consolidated throughput in Q3 2023 was 4% lower than in Q2 2023 but 25% higher than in Q3 2022. Throughput from the Yauricocha Mine during Q3 2023 of 259,732 tonnes, was 6% higher from the previous quarter. The Bolivar Mine throughput in Q3 2023 increased by 59% over Q2 2022 but declined 11% compared to Q2 2023, as anticipated.

The Cusi Mine, which was considered a non-core asset in Q1 2023, was placed in care and maintenance on September 20, 2023.

Yauricocha Mine, Peru

The Yauricocha Mine processed 259,732 tonnes during Q3 2023, an increase of 6% over the previous quarter. Copper grades increased by 23% when compared to Q2 2023 as well as silver and gold grades by 7% and 3%, respectively.

Copper equivalent production for Q3 2023 of 10.4 million pounds represented a 9% increase over the previous quarter. This increase was attributed mainly to the 36% increase in copper production. Lead and gold production increased 4% and 8%, respectively, while zinc production declined 9% due to lower grades compared to Q2 2023.

When compared to Q3 2022, the 4% decrease in the copper equivalent pounds produced resulted from the change in metal prices, particularly zinc prices which declined by more than 26% as compared to Q3 2022. The increase in metal production, except for gold, did not offset the impact of the change in metal prices as compared to Q3 2022.

A summary of the Yauricocha Mine production is provided below:

Yauricocha Production

 

 

Nine Months Ended September 30,

Q3 2023

Q2 2023

Q3 2022

2023

2022

            Tonnes processed

259,732

 

244,315

 

269,057

 

723,192

 

901,394

  Daily throughput

2,968

 

2,792

 

3,075

 

2,755

 

3,434

                          Silver grade (g/t)

58.72

 

54.83

 

47.61

 

53.69

 

43.70

  Copper grade

0.89%

 

0.72%

 

0.77%

 

0.80%

 

0.83%

  Lead grade

0.86%

 

0.87%

 

0.72%

 

0.82%

 

0.65%

  Zinc grade

2.36%

 

2.65%

 

2.16%

 

2.51%

 

1.95%

  Gold Grade (g/t)

0.41

 

0.40

 

0.41

 

0.42

 

0.49

              Silver recovery

63.16%

 

73.25%

 

62.27%

 

70.51%

 

61.61%

  Copper recovery

74.81%

 

72.21%

 

77.30%

 

74.20%

 

77.55%

  Lead recovery

83.09%

 

83.88%

 

83.60%

 

82.92%

 

79.73%

  Zinc recovery

82.57%

 

85.54%

 

84.28%

 

84.67%

 

81.33%

  Gold Recovery

19.95%

 

20.33%

 

20.79%

 

21.12%

 

20.83%

                          Silver production (000 oz)

310

 

316

 

256

 

875

 

779

  Copper production (000 lb)

3,806

 

2,808

 

3,514

 

9,509

 

12,920

  Lead production (000 lb)

4,084

 

3,930

 

3,579

 

10,792

 

10,467

  Zinc production (000 lb)

11,176

 

12,228

 

10,815

 

33,983

 

31,733

  Gold Production (oz)

686

 

633

 

743

 

2,073

 

2,979

                          Copper equivalent pounds (000's)(1)

10,396

 

9,525

 

10,794

 

28,950

 

33,702

                          (1) Copper equivalent pounds were calculated using the following realized prices:   Q3 2023 - $23.56/oz Ag, $3.78/lb Cu, $1.10/lb Zn, $0.98/lb Pb, $1,927/oz Au.   Q2 2023 - $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn, $0.96/lb Pb, $1,977/oz Au.   Q3 2022 - $19.26/oz Ag, $3.51/lb Cu, $1.49/lb Zn, $0.90/lb Pb, $1,730/oz Au.   9M 2023 - $23.44/oz Ag, $3.94/lb Cu, $1.23/lb Zn, $0.97/lb Pb, $1,932/oz Au.   9M 2022 - $21.95/oz Ag, $4.12/lb Cu, $1.66/lb Zn, $0.99/lb Pb, $1,826/oz Au.  

Bolivar Mine, Mexico

The Bolivar Mine processed 362,890 tonnes in Q3 2023, which was a 59% increase from Q3 2022. Bolivar also recorded higher grades for all metals, namely 28%, 27% and 37% for copper, silver, and gold, respectively, as compared to Q2 2022. As a result, copper equivalent production of 8.1 million pounds in Q3 2023 was 113% higher than in Q3 2022. When comparing Q3 2023 to Q2 2023, as anticipated, Bolivar’s copper equivalent production was 24% lower; driven by the lower output and lower grades. However, Bolivar’s copper equivalent pounds produced during the nine-month period ended September 2023 were 150% higher than the copper equivalent pounds produced in the same period of 2022.

A summary of the Bolivar Mine production is provided below:

Bolivar Production

Nine Months Ended September 30,

Q3 2023 Q2 2023 Q3 2022

2023

2022

            Tonnes processed (t)

362,890

 

405,987

 

227,669

 

1,067,894

 

671,597

  Daily throughput

4,147

 

4,640

 

2,602

 

4,068

 

2,558

                          Copper grade

0.77%

 

0.92%

 

0.60%

 

0.85%

 

0.61%

  Silver grade (g/t)

15.44

 

19.65

 

12.14

 

17.59

 

11.90

  Gold grade (g/t)

0.37

 

0.42

 

0.27

 

0.41

 

0.23

              Copper recovery

92.10%

 

92.92%

 

92.05%

 

93.01%

 

89.60%

  Silver recovery

81.95%

 

80.45%

 

79.95%

 

81.95%

 

82.72%

  Gold recovery

69.58%

 

66.38%

 

64.67%

 

68.33%

 

64.98%

                          Copper production (000 lb)

5,671

 

7,651

 

2,785

 

18,712

 

8,037

  Silver production (000 oz)

148

 

207

 

71

 

495

 

212

  Gold production (oz)

2,965

 

3,678

 

1,267

 

9,680

 

3,142

                          Copper equivalent pounds (000's)(1)

8,100

 

10,721

 

3,799

 

26,392

 

10,559

                          (1) Copper equivalent pounds were calculated using the following realized prices:   Q3 2023 - $23.56/oz Ag, $3.78/lb Cu, $1.10/lb Zn, $0.98/lb Pb, $1,927/oz Au.   Q2 2023 - $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn, $0.96/lb Pb, $1,977/oz Au.   Q3 2022 - $19.26/oz Ag, $3.51/lb Cu, $1.49/lb Zn, $0.90/lb Pb, $1,730/oz Au.   9M 2023 - $23.44/oz Ag, $3.94/lb Cu, $1.23/lb Zn, $0.97/lb Pb, $1,932/oz Au.   9M 2022 - $21.95/oz Ag, $4.12/lb Cu, $1.66/lb Zn, $0.99/lb Pb, $1,826/oz Au.  

Cusi Mine, Mexico

The Company is currently engaged in discussions with interested parties for the sale of the Cusi Mine.

As a result of being placed in care and maintenance late in Q3 2023, the Cusi Mine only processed 29,050 tonnes of ore during Q3 2023, which was 44% and 55% lower than Q2 2023 and Q3 2022, respectively. Silver equivalent production was also lower by 52% and 69%, respectively, from both corresponding periods.

A summary of the Cusi Mine production, not included in the consolidated production numbers, is provided below:

Cusi Production

Nine Months Ended September 30,

Q3 2023 Q2 2023 Q3 2022

2023

2022

            Tonnes processed (t)

29,050

 

51,750

 

65,180

 

139,922

 

219,826

  Daily throughput

332

 

591

 

745

 

533

 

837

                          Silver grade (g/t)

126.86

 

160.18

 

187.44

 

145.50

 

169.57

  Gold grade (g/t)

0.15

 

0.14

 

0.19

 

0.14

 

0.18

  Lead grade

0.45%

 

0.33%

 

0.26%

 

0.32%

 

0.25%

              Silver recovery (flotation)

83.94%

 

81.67%

 

87.24%

 

84.10%

 

84.86%

  Gold recovery (lixiviation)

58.50%

 

58.06%

 

48.28%

 

53.30%

 

47.46%

  Lead recovery

87.83%

 

86.54%

 

80.70%

 

87.71%

 

78.59%

                          Silver production (000 oz)

99

 

217

 

342

 

549

 

1,020

  Gold production (oz)

81

 

131

 

189

 

330

 

623

  Lead production (000 lb)

251

 

326

 

299

 

859

 

960

                          Silver equivalent ounces (000's)(1)

117

 

241

 

374

 

612

 

1,115

                          (1) Silver equivalent ounces were calculated using the following realized prices:   Q3 2023 - $23.56/oz Ag, $3.78/lb Cu, $1.10/lb Zn, $0.98/lb Pb, $1,927/oz Au.   Q2 2023 - $24.17/oz Ag, $3.99/lb Cu, $1.16/lb Zn, $0.96/lb Pb, $1,977/oz Au.   Q3 2022 - $19.26/oz Ag, $3.51/lb Cu, $1.49/lb Zn, $0.90/lb Pb, $1,730/oz Au.   9M 2023 - $23.44/oz Ag, $3.94/lb Cu, $1.23/lb Zn, $0.97/lb Pb, $1,932/oz Au.   9M 2022 - $21.95/oz Ag, $4.12/lb Cu, $1.66/lb Zn, $0.99/lb Pb, $1,826/oz Au.  

Conference Call and Webcast

Management will host a conference call and webcast to discuss Q3 2023 financial and operating results on November 13, 2023 at 11:00 am (Eastern). Details are as follows:

  • Webcast: https://services.choruscall.ca/links/sierrametalsq32023.html
  • Dial-in: Canada/US toll free: 1-800-319-4610
  • Other dial-in: +1-416-915-3239

Participants are asked to dial-in five to ten minutes before the scheduled start time and ask to join the Sierra Metals Third Quarter 2023 Consolidated Financial Results call.

About Sierra Metals

Sierra Metals is a Canadian mining company focused on copper production with additional base and precious metals by-product credits at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. The Company is intent 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 in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company has large land packages at each of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

Forward Looking Statements

This news release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra Metals and reflects management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action including the accuracy of the Company's current mineral resource estimates, that the Company's activities will be conducted in accordance with the Company's public statements and stated goals, and that there will be no material adverse change affecting the Company, its properties or its production estimates, the expected trends in mineral prices, inflation and currency exchange rates, that all required approvals will be obtained for the Company's business operations on acceptable terms, and that there will be no significant disruptions affecting the Company's operations. 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. Forward-looking statements include statements with respect to the timing of the release of its Q3 2023 results and the sale of Cusi. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra Metals 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 filings are available at www.sedarplus.ca.

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.

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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