Sierra Metals has not changed its 2020 guidance despite the COVID-19 pandemic because its Yauricocha Mine in Peru—which is under national emergency—is performing above budget.

 

In an earnings report released March 31, the miner indicated its Mexican mines haven’t been affected at this point, but the company will monitor them.

 

At Yauricocha, the company has already undertaken operation increase studies, which would counterbalance dwindling metal prices and high treatment charges. The company, which was to receive permitting for the next phase of the tailings deposition facility and expanded waste rock facility during H2 2020, expects delays in these processes because Peru is in lockdown.

 

In 2019, Sierra Metals’ consolidated copper production totaled 39mn lb (17,690mt), increasing by 17pc from the prior year, and consolidated zinc production increased by 6pc from 2018 to reach 81.1mn lb. In 2019, the company’s consolidated lead production surged by 28pc from the previous year to reach 35.5mn lb.

 

In 2019, the company produced 2.7mn mt of processed ore, increasing from 2.3mn mt the year earlier. During Q4 2019, Sierra Metals’ processed ore output increased to 731,500mt from 599,297mt during the same quarter in 2018.

 

The company also produced $39.9mn worth of copper last year, an increase from $33.9mn in 2018. It produced $11.3mn worth of copper in Q4 2019, up from $8.9mn in Q4 2018.

 

Sierra Metals produced $35.4mn worth of lead in 2019, up from $27.7mn a year earlier. During Q4 2019, it produced $9.9mn worth of lead, up from $7.9mn during the same quarter a year earlier.

 

The firm also produced $81mn in zinc last year, increasing from $76.8mn in 2018. It produced $25.6mn worth of zinc in Q4 2019, rising from $17.5mn during Q4 2018.

 

In 2019, the company’s revenues rose to $229mn from $232.3mn during the prior year, while its Q4 2019 revenues of $64.6mn also increased over $55mn reported in Q4 2018.

 

The company’s adjusted EBITDA in 2019 decreased to $65.2mn from $89.8mn in 2018. Its Q4 2019 EBITDA of $19.1mn, however, increased from $15.2mn during the same quarter in 2018.

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