Sierra Metals Projects Consistent Production Levels into 2024
Sierra Metals is setting the stage for a year of steady production across its base metals portfolio, building on a successful increase in output throughout 2023. The company, with significant operations in Peru's Yauricocha mine and Mexico's Bolivar mine, is focusing on copper production while also preparing for future growth.
For 2024, Sierra Metals anticipates a year marked by stable operations. The company is in the final stages of securing a permit for expanded operations at the Yauricocha mine, which involves mining below the 1120 level. Approval is expected by the end of March, with a six to nine-month timeline to reach full production capacity thereafter. Additionally, Sierra Metals plans to enhance the Bolivar mine's waste dam capacity, facilitating increased production.
Projected production figures for the year include 37.5 to 43.3 million pounds of copper, slightly fluctuating from 2023's 40.3 million pounds. Zinc production is forecasted at 38.6 to 44.5 million pounds, compared to 43.6 million pounds last year. Lead output is anticipated to be between 10.2 and 11.8 million pounds, a decrease from 13.3 million pounds in 2023. Silver and gold productions are also expected to decline, with silver output forecasted between 1.5 and 1.75 million ounces (from 1.8 million ounces last year) and gold production estimated at 10,100 to 11,600 ounces, down from 16,461 ounces.
Reflecting on the final quarter of 2023, Sierra Metals reported a rise in copper-equivalent production to 21.1 million pounds, up from 18.5 million in the previous quarter and significantly higher than the 11.9 million pounds produced in the same period of 2022. The company's consolidated copper-equivalent production for 2023 reached 76.7 million pounds, marking a 37% increase from the previous year and aligning with Sierra Metals' production guidance.
This outlook underscores Sierra Metals' strategic focus on maintaining production levels while laying the groundwork for future expansions, demonstrating the company's resilience and forward-looking approach in the face of operational and market challenges.
