Sierra Metals Reports Second Quarter 2019 Production Results Including Record Consolidated Quarterly Ore Throughput
Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) is pleased to report second quarter 2019 production results featuring the highest level of quarterly throughput to date at its Bolivar and Cusi Mines in Mexico.
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 2019 Production Highlights
- Silver production of 0.8 million ounces; a 21% increase from Q2 2018
- Lead production of 8.1 million pounds; a 14% increase from Q2 2018
- Gold production of 2,540 ounces; a 40% increase from Q2 2018
- Copper production of 9.7 million pounds; a 13% increase from Q2 2018
- Zinc production of 16.6 million pounds; an 18% decrease from Q2 2018
- Zinc equivalent production of 57.6 million pounds; a 4% increase from Q2 2018
- Record quarterly throughput at the Bolivar and Cusi Mines in Mexico
The Company achieved record consolidated quarterly throughput, as well as record quarterly throughput and metal production from the Bolivar and Cusi Mines in Mexico. The Company has continued to build on its successful plant expansions and mine production increases in Mexico over the last three quarters which has resulted in record quarterly metal production as the Company reaches its 2019 target of 4,000 tonnes per day (“TPD”) at Bolivar and 1,200 tpd at Cusi. Consolidated production of silver increased 21% to 0.8 million ounces, copper increased by 13% to 9.7 million pounds, lead increased 14% to 8.1 million pounds, zinc declined 18% to 16.6 million pounds, and gold increased 40% to 2,540 ounces compared to Q2 2018.
The Yauricocha Mine experienced a 10% reduction in throughput during Q2 2019 compared to Q2 2018 due to the illegal strike action initiated by members of the Union of the Mine and Metallurgical Workers of Minera Corona on March 19, 2019. This illegal strike was resolved on April 12, 2019, however, resulted in a total of 12 days of lost production during April 2019. Regular operations at the mine and mill resumed on April 14, 2019, and management believes that any production lost during this strike action should not materially affect the Company’s annual production guidance. In fact, the month of May represented a monthly production record at the Yauricocha Mine and June was also over production budget. The reduction in throughput during the strike was offset by higher head grades and recoveries for all metals except zinc at Yauricocha which resulted in a 4% decrease in zinc equivalent pounds produced during Q2 2019 compared to Q2 2018.