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Sierra Metals sees higher net income in Q1 2023 as copper equivalent production up

Kitco Media
By Vladimir Basov
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(Kitco News) - Sierra Metals (TSX: SMT) today announced copper equivalent production of 18.0 million pounds in Q1 2023, up 28% from Q4 2022 (14.1 million pounds) and an increase of 13% over Q1 2022 (15.9 million pounds).

The company said its revenue from metals payable of $58.5 million in Q1 2023 increased by 2% from $57.2 million in Q1 2022, as the 19% increase in the copper equivalent payable pounds was partially offset by lower metal prices as compared to Q1 2022.

However, Sierra noted that metal prices were higher than Q4 2022 and combined with the 23% increase in the copper equivalent payable pounds boosted revenues by 27% quarter over quarter.

The company also reported net income attributable to shareholders of $2.1 million in Q1 2023 (Q1 2022: $0.4 million) or $0.01 per share (basic and diluted) (Q1 2022: $0.00).

Interim CEO Ernesto Balarezo commented, “We view the strong Q1 2023 production and financial results as evidence that our plan is working. Our focus over the past six months began with stabilizing our operations by making safety our top priority, and investing in key infrastructure, such as pumping and ventilation systems. We then shifted to optimizing operations, and we are now seeing the initial results including increased production.

“The next stage of our plan is growing our business. Our 2023 guidance calls for production levels to increase throughout the year while we actively pursue the permit to mine below the 1120 level at Yauricocha, a major growth catalyst that should significantly improve our throughput and profitability.”

Sierra Metals is a diversified Canadian mining company focused on production of copper, zinc and lead with precious metals byproduct credits. The company operates the Yauricocha mine in Peru and the Bolivar mine in Mexico. Sierra also has large land packages with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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