Sierra more than doubles net income at Yauricocha despite production setback
(Kitco News) - Sierra Metals (TSX: SMT) announced Monday that Yauricocha mine’s copper equivalent production decreased 21% to 15.9 million pounds and zinc equivalent production decreased 9% to 49.9 million pounds in Q1 2021 compared to Q1 2020.
The company said that Yauricocha mine in Peru achieved 14% higher ore throughput in Q1 2021 compared to Q1 2020, despite continuing to face various COVID-19 related operational challenges during the quarter. Metal production declined (except zinc and silver) as ore grades fell due to a decline of tonnage contributions from the high-grade cuerpos chicos zones.
Revenues were $41.9 million for Q1 2021 compared to $33.7 million in Q1 2020. Revenues increased largely as a result of higher realized metal prices and lower treatment and refining costs in Q1 2021 as compared to the same quarter of 2020.
Net income was $5.2 million, or $0.144 per share for Q1 2021 compared to net income of $2.1 million, or $0.057 per share for Q1 2020. Adjusted EBITDA was $16.2 million for Q1 2021 as compared to $9.8 million for the same quarter of 2020, higher primarily due to increased net income from higher metal prices.
CEO Luis Marchese added, "The COVID-19 pandemic has imposed various direct and indirect challenges which have affected our ability to operate as effectively as expected. Despite these challenges, we still had solid revenue and adjusted EBITDA tempered by higher costs due to a decline in ore grades. We continue to work through the challenges and issues, and we expect to see improvement as we progress throughout the year."
Sierra Metals is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha mine in Peru, and Bolivar and Cusi mines in Mexico.