Sierra Metals, a Canadian mining company, is forecasting steady base metal production for the upcoming year. After experiencing an increase in output in 2023, the company is now focusing on preparing its core mines for longer-term growth.
Sierra Metals’ primary focus is on copper production at its Yauricocha mine in Peru and Bolivar mine in Mexico. The company expects 2024 to be a year of stable operations as it progresses through the final stage of the process to obtain a permit for deeper operations at the Yauricocha mine. Additionally, Sierra Metals has plans to enhance the capacity of the mine-waste dame at Bolivar, which will facilitate increased production levels.
It is anticipated that the permit to operate below the 1120 level will be received by the end of March. From there, it is estimated to take approximately six to nine months to reach full production below 1120.
In terms of specific metal production projections:
- Copper production is expected to range from 37.5 million to 43.3 million pounds in 2024, compared to 40.3 million pounds in 2023.
- Zinc production is projected to be between 38.6 million and 44.5 million pounds, as compared to 43.6 million pounds in the previous year.
- Lead output is targeted at 10.2 million to 11.8 million pounds, a decline from 13.3 million pounds in 2023.
- Silver production is expected to decrease to 1.5 million to 1.75 million ounces, compared to 1.8 million ounces in the previous year.
- Gold output is anticipated to be in the range of 10,100 to 11,600 ounces, a significant decrease from 16,461 ounces.
During the final quarter of 2023, copper-equivalent production saw a notable increase to 21.1 million pounds, up from 18.5 million pounds in the preceding quarter and 11.9 million pounds in the same period of 2022.
Overall, consolidated copper-equivalent production for the entirety of 2023 reached 76.7 million pounds, a 37% increase from the previous year and in line with Sierra Metals’ guidance.