Sierra Metals Reports Third Quarter 2023 Production Results

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 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:

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: