TORONTO--(BUSINESS WIRE)--Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) (“Sierra Metals” or the “Company”) reports fourth quarter (“Q4 2024”) and full year 2024 production results from its two underground mines in Latin America: the Yauricocha polymetallic mine (“Yauricocha”) in Peru and the copper-producing Bolivar mine (“Bolivar”) in Mexico.
Ernesto Balarezo, CEO of Sierra Metals, commented, “Sierra Metals’ strong production results in 2024 are a testament to the hard work of our entire team and more proof of the momentum we are seeing across our business. Overall, our strong operating performance -- underpinned by our commitment to safety -- resulted in total production exceeding guidance for 2024.”
Mr. Balarezo continues, “As we begin the new year, the investments we have made at our operations have set the stage for significant value creation in 2025 and beyond. In 2025, we expect to increase throughput rates and grow resources at both of our mines. Longer-term, we anticipate upside potential through ongoing exploration and optimization of the ore body below the 1120 level at Yauricocha and the potential for mineral resource expansion at Bolivar through near-mine exploration and district-scale study work.”
“At current metal prices we expect to generate strong operating cash flows that will fund our capital investment program and service our debt obligations. Most importantly, I believe we are poised to continue delivering strong long-term value for all shareholders.”
Consolidated Production Results
2024 Guidance |
Year Ended |
|||||||||
Q4 2024 |
Q3 2024 |
Q4 2023 |
(Top End) |
December 31, 2024 |
||||||
| Tonnes processed (t) | 797,774 |
668,647 |
673,846 |
2,732,352 |
||||||
| Daily throughput (tpd)(1) | 9,118 |
7,641 |
7,701 |
7,807 |
||||||
| Copper production (000 lb) | 13,533 |
11,009 |
12,096 |
43,300 |
44,320 |
|||||
| Zinc production (000 lb) | 12,301 |
11,184 |
9,629 |
44,500 |
44,889 |
|||||
| Silver production (000 oz) | 544 |
503 |
468 |
1,750 |
1,861 |
|||||
| Gold Production (oz) | 4,009 |
3,973 |
4,708 |
11,600 |
15,925 |
|||||
| Lead production (000 lb) | 2,381 |
2,537 |
2,481 |
11,800 |
11,020 |
|||||
1 |
Calculated at 87.5 days for each of the quarters and 350 days for the twelve-month periods assuming scheduled maintenance related shutdowns during the reporting periods. |
Consolidated throughput during 2024 was more than 2.7 million tonnes, an 11% increase when compared to 2023. Consolidated copper, zinc and silver production was 10%, 3% and 1%, respectively, higher than in 2023, while gold and lead production was slightly lower. When comparing annual consolidated production results to 2024 guidance, copper, silver, gold and zinc exceeded guidance while lead met guidance.
Throughput in Q4 2024 was a record 798 thousand tonnes, 18% higher than in Q4 2023. This was driven by Bolivar having 10% higher throughput rates and Yauricocha, now primarily mining below the 1120 level, increasing throughput rates by 31%. Yauricocha Q4 2024 production of copper, zinc and silver were 29%, 28%, and 20%, respectively, higher than Q4 2023 with gold production flat and lead production lower by 4% on a quarter over quarter basis. When comparing Bolivar Q4 2024 production to Q4 2023, copper was flat, silver was 9% higher and gold lower by 19%.
Yauricocha Mine, Peru
With Yauricocha now primarily mining below the 1120 level, which allows the Company to have access to most of its resources, the increase in tonnage has been possible. The mine’s throughput rates in Q4 2024 averaged a record 3,945 tpd, which is 10% higher than its annual permitted capacity of 3,600 tpd (the operating consents for Yauricocha allow for an excess of 10% over the permitted capacity). The increase in throughput rates is due to the increase in access to the number of mining zones below the 1120 level when compared to just mining above that level during Q4 2023. Head grades were similar quarter over quarter but expected to improve as the mining increases in the higher-grade Esperanza copper zone. The increase in copper recovery was primarily due to improvements in the circulation processing and reagents used in the plant.
A summary of production from Yauricocha for Q4 2024 and full-year 2024 is provided below:
2024 Guidance |
Year Ended |
|||||||||||||
| Q4 2024 | Q3 2024 | Q4 2023 | (Top End) |
December 31, 2024 |
||||||||||
| Tonnes processed (t) | 345,161 |
|
266,917 |
|
263,851 |
|
1,105,912 |
|
||||||
| Daily throughput (tpd)(1) | 3,945 |
|
3,050 |
|
3,015 |
|
3,160 |
|
||||||
| Copper grade | 1.04 |
% |
1.01 |
% |
1.09 |
% |
0.89 |
% |
||||||
| Zinc grade | 2.04 |
% |
2.34 |
% |
2.12 |
% |
2.25 |
% |
||||||
| Silver grade (g/t) | 43.11 |
|
43.83 |
|
48.29 |
|
40.85 |
|
||||||
| Gold Grade (g/t) | 0.39 |
|
0.35 |
|
0.51 |
|
0.36 |
|
||||||
| Lead grade | 0.50 |
% |
0.65 |
% |
0.60 |
% |
0.63 |
% |
||||||
| Copper recovery | 82.31 |
% |
79.35 |
% |
70.72 |
% |
77.92 |
% |
||||||
| Zinc recovery | 79.35 |
% |
81.31 |
% |
79.75 |
% |
81.95 |
% |
||||||
| Silver recovery | 72.62 |
% |
74.70 |
% |
70.74 |
% |
72.21 |
% |
||||||
| Gold Recovery | 22.27 |
% |
20.43 |
% |
78.08 |
% |
19.69 |
% |
||||||
| Lead recovery | 62.92 |
% |
66.41 |
% |
21.78 |
% |
72.14 |
% |
||||||
| Copper production (000 lb) | 6,500 |
|
4,695 |
|
5,036 |
|
15,700 |
16,866 |
|
|||||
| Zinc production (000 lb) | 12,301 |
|
11,184 |
|
9,629 |
|
44,500 |
44,889 |
|
|||||
| Silver production (000 oz) | 348 |
|
281 |
|
289 |
|
1,000 |
1,049 |
|
|||||
| Gold Production (oz) | 953 |
|
612 |
|
951 |
|
2,400 |
2,501 |
|
|||||
| Lead production (000 lb) | 2,381 |
|
2,537 |
|
2,481 |
|
11,800 |
11,020 |
|
|||||
1 |
Calculated at 87.5 days for each of the quarters and 350 days for the twelve-month periods assuming scheduled maintenance related shutdowns during the reporting periods. |
Bolivar Mine, Mexico
Bolivar processed an average of 5,173 tpd in Q4 2024, which is 3% higher than its nameplate capacity of 5,000 tpd. In Q4 2024, the Company increased the level of ore hauling to the plant with the start-up of a new integration tunnel and by developing and increasing the number of operating stopes from three to nine by the end of the year. All of these initiatives increased ore availability to the plant which allowed the mine to operate above nameplate capacity. When comparing Q4 2024 to Q4 2023 lower copper head grades due to the sequencing of the mine were offset by higher throughput, resulting in metal production flat quarter over quarter. Head grades are expected to improve with mining in now higher-grade zones. With the initiatives completed in Q4 along with operational improvements in the grinding and flotation circuits in the plant, Bolivar expects throughput rates to continue to be above nameplate capacity of 5,000 tpd in 2025.
A summary of production from Bolivar for Q4 2024 and full year 2024 is provided below:
2024 Guidance |
Year Ended |
|||||||||||||
Q4 2024 |
Q3 2024 |
Q4 2023 |
(Top End) |
December 31, 2024 |
||||||||||
| Tonnes processed (t) | 452,613 |
|
401,730 |
|
409,995 |
|
1,626,440 |
|
||||||
| Daily throughput (tpd)(1) | 5,173 |
|
4,591 |
|
4,686 |
|
4,647 |
|
||||||
| Copper grade | 0.77 |
% |
0.78 |
% |
0.84 |
% |
0.84 |
% |
||||||
| Silver grade (g/t) | 15.92 |
|
20.14 |
|
16.56 |
|
18.69 |
|
||||||
| Gold grade (g/t) | 0.32 |
|
0.38 |
|
0.42 |
|
0.38 |
|
||||||
| Copper recovery | 91.20 |
% |
91.50 |
% |
92.62 |
% |
91.36 |
% |
||||||
| Silver recovery | 84.31 |
% |
85.53 |
% |
82.38 |
% |
83.03 |
% |
||||||
| Gold recovery | 66.67 |
% |
69.38 |
% |
68.39 |
% |
67.01 |
% |
||||||
| Copper production (000 lb) | 7,033 |
|
6,314 |
|
7,060 |
|
27,600 |
27,454 |
|
|||||
| Silver production (000 oz) | 196 |
|
222 |
|
179 |
|
750 |
812 |
|
|||||
| Gold production (oz) | 3,056 |
|
3,361 |
|
3,757 |
|
9,200 |
13,424 |
|
|||||
1 |
Calculated at 87.5 days for each of the quarters and 350 days for the twelve-month periods assuming scheduled maintenance related shutdowns during the reporting periods. |
2025 Guidance
As announced on December 5, 2024, the Company expects Yauricocha production in 2025 to be primarily below the 1120 level, complemented by the recent discovery of a new high-grade zone in the upper part of the mine. A number of investments made in 2024 and planned during 2025 should continue to maintain throughput rates beyond the permitted capacity of 3,600 tpd. As it has been mentioned earlier, the operating consents for Yauricocha allow for an excess of 10% over the permitted capacity. The expected increase in production should be from higher head grades and higher throughput rates. At Bolivar, Sierra Metals expects to successfully complete a series of initiatives to increase throughput rates, while forecasting slightly lower grades across all metals, mainly driven by the mine sequencing schedule.
At Yauricocha, there are significant exploration opportunities below the 1120 level as the ore body appears open in all directions and operating in that area will give Sierra Metals the opportunity to meaningfully explore the area more rapidly with the goal of increasing the life of the mine and improve mining sequencing.
At Bolivar, ongoing near-mine exploration and district-scale study work has the potential to significantly expand the resource at the mine as well as providing additional upside through prospective opportunities.
Expectations in 2025 are to reap the benefits of mining below the 1120 level at Yauricocha while putting in the place the foundation for future growth at Bolivar through expansion of the tailings facilities.
A summary of 2025 production guidance compared to full year 2024 production results on consolidated basis and by mine follows:
Production Guidance |
||||||
| Consolidated | 2025 Guidance |
2024 |
||||
Low |
High |
Actual |
||||
| Copper production (000 lbs) | 44,600 |
48,500 |
44,320 |
|||
| Zinc production (000 lbs) | 53,600 |
58,400 |
44,889 |
|||
| Silver production (oz) | 1,900 |
2,060 |
1,861 |
|||
| Gold production (oz) | 10,200 |
11,100 |
15,925 |
|||
| Lead production (000 lbs) | 13,700 |
15,000 |
11,020 |
|||
| Yauricocha | 2025 Guidance |
2024 |
||||
Low |
High |
Actual |
||||
| Copper production (000 lbs) | 19,500 |
21,100 |
16,866 |
|||
| Zinc production (000 lbs) | 53,600 |
58,400 |
44,889 |
|||
| Silver production (oz) | 1,220 |
1,320 |
1,049 |
|||
| Gold production (oz) | 2,800 |
3,000 |
2,501 |
|||
| Lead production (000 lbs) | 13,700 |
15,000 |
11,020 |
|||
| Bolivar | 2025 Guidance |
2024 |
||||
Low |
High |
Actual |
||||
| Copper production (000 lbs) | 25,100 |
27,400 |
27,454 |
|||
| Silver production (oz) | 680 |
740 |
812 |
|||
| Gold production (oz) | 7,400 |
8,100 |
13,424 |
|||
Cost Guidance
Also announced on December 5, 2024, was the Company’s cost guidance for 2025:
| Cash Costs (1) | AISC (1) | |||||||||||||
| Low | High | Low | High | |||||||||||
| Yauricocha | $/CuEq (2) | $ |
2.42 |
$ |
2.59 |
$ |
2.91 |
$ |
3.11 |
|||||
| Bolivar | $/CuEq (2) | $ |
2.64 |
$ |
2.77 |
$ |
3.45 |
$ |
3.62 |
|||||
(1) |
This is a non-IRFS performance measure, see the Non-IFRS Performance Measures section in the latest MD&A dated November 5, 2024. |
|
(2) |
Copper equivalent pounds (CuEq) were calculated using the following metals prices: $4.18/lb copper, $1.23/lb zinc, $28.50/oz silver, $2,237/oz gold and $0.95/lb lead. |
Conference Call and Webcast
Management will host a conference call and webcast to discuss Q4 2024 and full year 2024 financial and operating results on March 20, 2025 at 11:00 am (Eastern). Details are as follows:
- Webcast:
-
Telephone:
- Canada/US toll free: 1-844-763-8274
- Other dial-in: +1-647-484-8814
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 press 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 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 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 15, 2024 for its fiscal year ended December 31, 2023 and other risks identified in the Company's filings with Canadian securities regulators, which 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.