Canada's Sierra Metals expects higher output from Peru mine

Canada’s Sierra Metals expects improved production next year at its Yauricocha mine, a medium-scale polymetallic deposit in Peru’s Lima region.

The company upped copper production guidance for this year to 13.6-15.7Mlb (up to 7,120t) and for 2025 the expectation is 19.5-21.1Mlb. In the case of zinc and silver, 2025 guidance was raised to 53.6-58.4Mlb and 1.9-2.06Moz, respectively.

According to a statement, Yauricocha has reached its maximum capacity, which will allow it to operate at higher rates throughout next year.

“We expect our production to come predominantly from the zone below the 1,120m level, complemented by the recent discovery of a new high-grade zone at the top of the mine. A series of investments made in 2024 and planned for 2025 should increase productivity rates beyond the nameplate capacity of 3,600t/d,” the statement said.

According to the company’s Q3 financial statements, Yauricocha produced 10.4Mlb of copper in January to September, as well as 32.6Mlb of zinc, 701,000oz of silver, 1,548oz of gold and 8.64Mlb of lead.

In February the company obtained permission to operate below 1,120m and has completed production optimization.

Guidance is as follows:

Metal	2024	2025
Copper	13.6-15.7Mlb	19.5-21.1Mlb
Zinc	38.6-44.5Mlb	53.6-58.4Mlb
Silver	850,000oz-1Moz	1.22-1.32Moz
Gold	2,100-2,400oz	2,800-3,000oz
Lead	10.2-11.8Mlb	13.7-15Mlb

Source: Sierra Metals

The company also says increased production and higher grades will allow for a more robust cost structure.