SIERRA METALS REPORTS RECORD SILVER AND COPPER PRODUCTION IN FOURTH QUARTER 2014 AND ANNOUNCES 2015 PRODUCTION OUTLOOK
Vancouver, BC – January 27, 2015 – Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (“Sierra Metals” or “the Company”) reports production for the fourth quarter (“Q4”) and year ended December 31, 2014 from its three underground mines in Latin America, the Yauricocha polymetallic mine in Peru and the Bolivar copper and Cusi silver mines in Mexico.
Fourth Quarter Production Highlights
- Total tonnes processed of 428,859; a 10% increase over Q4 2013
- Silver production of 875,400 ounces; a 34% increase over Q4 2013
- Copper production of 5.9 million pounds; a 23% increase over Q4 2013
- Lead production of 12.1 million pounds; a 7% increase over Q4 2013
- Zinc production of 13.4 million pounds; consistent with Q4 2013
- Gold production of 2,329 ounces; a 40% increase over Q4 2013
2014 Annual Production Highlights
- Total tonnes processed of 1,706,715; a 29% increase over 2013
- Silver production of 3,148,145 ounces; a 23% increase over 2013
- Copper production of 22.6 million pounds; a 42% increase over 2013
- Lead production of 48.8 million pounds; a 29% increase over 2013
- Zinc production of 54.3 million pounds; a 5% increase over 2013
- Gold production of 9,457 ounces; a 40% increase over 2013
Production Guidance for 2015
Silver: 3,144,000 oz – 3,668,000 oz
Copper: 21.0 million lb – 24.3 million lb
Lead: 44.3 million lb – 51.8 million lb
Zinc: 41.9 million lb – 48.9 million lb
Gold: 11,200 oz – 13,000 oz
Audra Walsh, President and CEO of Sierra Metals, commented:“2014 was another record year of metal production driven by organic growth in our three mines. The Company’s metal production exceeded the high end of the guidance for silver, gold, lead and zinc while copper production was within the guidance range. Our Q4 2014 production of 875,400 silver ounces was the highest quarter in the history of the Company, as was the ore throughput. The management team remains focused on executing opportunities to further increase production and reduce costs in 2015, which we anticipate will help offset the impact of depressed metal prices. The quality of our assets will enable us to continue delivering solid production results during 2015.”
Mine Operations
The total tonnes of ore processed of 1,706,715 in 2014 compared to 1,321,781 in 2013 was a 29% increase year-over-year. The success of increasing consolidated metal production in 2014 was assisted by higher throughput at all three mines, Bolivar (76%), Cusi (45%) and Yauricocha (6%).
A summarized table of our Q4 2014 consolidated production results is presented below:
| Consolidated Production | 3 Months Ended | 12 Months Ended | ||||
| Dec 31, 2014 | Dec 31, 2013 | % Var | Dec 31, 2014 | Dec 31, 2013 | % Var | |
| Tonnes processed | 428,859 | 390,781 | 10% | 1,706,715 | 1,321,781 | 29% |
| Daily throughput | 4,901 | 4,466 | 10% | 4,892 | 3,776 | 29% |
| Silver production (oz) | 875,400 | 653,705 | 34% | 3,148,145 | 2,560,467 | 23% |
| Copper production (000 lb) | 5,908 | 4,819 | 23% | 22,643 | 15,905 | 42% |
| Lead production (000 lb) | 12,096 | 11,278 | 7% | 48,834 | 37,957 | 29% |
| Zinc production (000 lb) | 13,399 | 13,382 | 0% | 54,256 | 51,747 | 5% |
| Gold production (oz) | 2,329 | 1,665 | 40% | 9,457 | 6,736 | 40% |
Yauricocha Mine, Peru
The Yauricocha Mine continued to be the Company’s largest producing mine with a total of 224,986 tonnes processed in Q4 2014 representing a 5% increase compared to 214,454 tonnes in Q4 2013. Total annual tonnes processed of 885,495 in 2014 compared to 837,496 tonnes in 2013 resulted in a 6% increase year-over-year. Mineralization at the Yauricocha Mine is hosted in three different zones including Lead-Oxide, Copper-Oxide and Polymetallic ore-bodies.
During Q4 2014, aggregate production of these ore bodies was 595,340 oz of silver, a 28% increase year-over year; 2.3 million lb of copper, a 97% increase year-over-year; 11.6 million lb of lead, a 6% increase year-over year; 13.4 million lbs of zinc, consistent year-over year; and 1,360 oz of gold, an 18% decrease year-over-year. Higher metal production was mainly driven by an increase in the polymetallic and copper oxide throughput and by higher lead and copper head grades, and higher silver and lead recoveries. Increase in production was partially offset by lower head grades in the Lead-Oxide body in line with Yauricocha’s mine plan. A summary of production from the Yauricocha Mine for Q4 2014 has been provided below:
| Yauricocha Production | 3 Months Ended | 12 Months Ended | ||||
| Dec 31, 2014 | Dec 31, 2013 | % Var | Dec 31, 2014 | Dec 31, 2013 | % Var | |
| Tonnes processed | 224,986 | 214,454 | 5% | 885,495 | 837,496 | 6% |
| Daily throughput | 2,571 | 2,451 | 5% | 2,545 | 2,393 | 6% |
| Polymetalic (tonnes) | 178,300 | 164,664 | 8% | 703,713 | 641,268 | 10% |
| Silver grade (g/t) | 94.28 | 73.53 | 28% | 83.77 | 83.20 | 1% |
| Copper grade | 0.80% | 0.49% | 63% | 0.70% | 0.65% | 8% |
| Lead grade | 1.91% | 1.60% | 19% | 1.79% | 1.48% | 21% |
| Zinc grade | 3.87% | 4.09% | -5% | 3.95% | 4.05% | -2% |
| Gold grade (g/t) | 0.63 | 0.63 | 0% | 0.66 | 0.67 | -1% |
| Silver recovery | 79.9% | 72.5% | 10% | 76.5% | 70.4% | 9% |
| Copper recovery | 68.6% | 65.1% | 5% | 68.0% | 70.6% | -4% |
| Lead recovery | 85.8% | 81.8% | 5% | 83.9% | 80.0% | 5% |
| Zinc recovery | 88.1% | 90.0% | -2% | 88.5% | 88.7% | 0% |
| Gold recovery | 15.2% | 14.1% | 8% | 14.0% | 16.6% | -16% |
| Lead Oxides (tonnes) | 40,572 | 49,789 | -19% | 171,829 | 196,228 | -12% |
| Silver grade (g/t) | 217.98 | 268.79 | -19% | 233.70 | 277.81 | -16% |
| Lead grade | 8.28% | 8.87% | -7% | 9.00% | 7.71% | 17% |
| Gold grade (g/t) | 1.09 | 1.65 | -34% | 1.27 | 1.71 | -26% |
| Ag recovery | 53.9% | 42.2% | 28% | 50.7% | 37.6% | 35% |
| Pb recovery | 68.3% | 63.8% | 7% | 67.9% | 61.0% | 11% |
| Gold recovery | 53.1% | 45.1% | 18% | 49.9% | 41.1% | 21% |
| Copper Oxides (tonnes) | 6,114 | 0 | N.A. | 9,953 | 0 | N.A. |
| Silver grade (g/t) | 101.51 | 0.0% | N.A. | 91.81 | 0.0% | N.A. |
| Copper grade | 2.76% | 0.00% | N.A. | 3.10% | 0.00% | N.A. |
| Lead grade | 3.13% | 0.00% | N.A. | 3.05% | 0.00% | N.A. |
| Gold grade (g/t) | 0.59 | 0 | N.A. | 0.54 | 0 | N.A. |
| Ag recovery | 53.0% | 0.0% | N.A. | 50.4% | 0.0% | N.A. |
| Cu recovery | 43.1% | 0.0% | N.A. | 36.6% | 0.0% | N.A. |
| Pb recovery | 30.3% | 0.0% | N.A. | 31.5% | 0.0% | N.A. |
| Gold recovery | 45.0% | 0.0% | N.A. | 45.4% | 0.0% | N.A. |
| Silver production (oz) | 595,340 | 463,964 | 28% | 2,121,565 | 1,866,769 | 14% |
| Copper production (000 lb) | 2,304 | 1,167 | 97% | 7,697 | 6,514 | 18% |
| Lead production (000 lb) | 11,632 | 10,956 | 6% | 46,714 | 37,055 | 26% |
| Zinc production (000 lb) | 13,399 | 13,382 | 0% | 54,256 | 50,817 | 7% |
| Gold production (oz) | 1,360 | 1,665 | -18% | 5,683 | 6,736 | -16% |
Bolivar Mine, México
During Q4 2014, total ore processed at the Bolivar Mine increased 5% with 159,904 tonnes processed compared to 152,242 tonnes in Q4 2013. Total annual tonnes processed of 665,951 in 2014 compared to 377,432 tonnes in 2013 resulted in a 76% increase year-over-year. Copper production during Q4 2014 decreased by 1% with a total of 3.6 million lbs produced (compared to 3.7 million lbs in Q4 2013). Silver production at Bolivar in Q4 2014 increased 3% year-over-year with a total of 92,689 oz produced (compared to 90,013 oz in Q4 2013). This slight increase in production was driven by higher throughput compared to Q4 2013. A summary of production for the Bolivar Mine for Q4 2014 has been provided below:
| Bolivar Production | 3 Months Ended | 12 Months Ended | ||||
| Dec 31, 2014 | Dec 31, 2013 | % Var | Dec 31, 2014 | Dec 31, 2013 | % Var | |
| Tonnes processed | 159,904 | 152,242 | 5% | 665,951 | 377,432 | 76% |
| Daily throughput | 1,827 | 1,740 | 5% | 1,903 | 1,078 | 76% |
| Copper grade | 1.25% | 1.27% | -2% | 1.22% | 1.30% | -6% |
| Zinc grade | 0.17% | 0.33% | -48% | 0.21% | 0.47% | -55% |
| Silver grade (g/t) | 22.03 | 21.59 | 2% | 22.54 | 25.87 | -13% |
| Gold grade (g/t) | 0.29 | 0.00 | N.A. | 0.23 | 0.00 | N.A. |
| Copper recovery | 82.10% | 85.44% | -4% | 83.28% | 86.53% | -4% |
| Zinc recovery | 0.00% | 0.00% | N.A. | 0.00% | 23.66% | N.A. |
| Silver recovery | 81.85% | 85.19% | -4% | 82.15% | 86.21% | -5% |
| Gold recovery | 45.32% | 0.00% | N.A. | 49.38% | 0.00% | N.A. |
| Copper production (000 lb) | 3,604 | 3,652 | -1% | 14,946 | 9,391 | 59% |
| Zinc production (000 lb) | 0 | 0 | N.A. | 0 | 930 | N.A. |
| Silver production (oz) | 92,689 | 90,013 | 3% | 396,421 | 270,610 | 46% |
| Gold production (oz) | 665 | 0 | N.A. | 2,485 | 0 | N.A. |
Cusi Mine, México
During Q4 2014 total ore processed increased 83% with a total of 43,969 tonnes of ore processed (compared to 24,085 tonnes in Q4 2013). Total annual tonnes processed of 155,269 in 2014 compared to 106,853 tonnes in 2013 resulted in a 45% increase year-over-year. During Q4 2014 production of silver at Cusi increased 88% with a total of 187,371 oz of silver (compared to 99,727 oz in Q4 2013). A summary of production for the Cusi Mine for Q4 2014 has been provided below:
| Cusi Production | 3 Months Ended | 12 Months Ended | ||||
| Dec 31, 2014 | Dec 31, 2013 | % Var | Dec 31, 2014 | Dec 31, 2013 | % Var | |
| Tonnes processed | 43,969 | 24,085 | 83% | 155,269 | 106,853 | 45% |
| Daily throughput | 503 | 275 | 83% | 444 | 305 | 45% |
| Silver grade (g/t) | 173.13 | 166.15 | 4% | 166.69 | 166.65 | 0% |
| Gold grade (g/t) | 0.33 | 0.00 | N.A. | 0.42 | 0.00 | N.A. |
| Lead grade | 0.62% | 0.78% | -21% | 0.78% | 0.55% | 42% |
| Silver recovery | 76.56% | 77.44% | -1% | 75.70% | 73.83% | 3% |
| Gold recovery | 66.08% | 0.00% | N.A. | 61.89% | 0.00% | N.A. |
| Lead recovery | 77.06% | 77.94% | -1% | 79.06% | 69.23% | 14% |
| Silver production (oz) | 187,371 | 99,727 | 88% | 630,159 | 423,089 | 49% |
| Gold production (oz) | 304 | 0 | N.A. | 1,289 | 0 | N.A. |
| Lead production (000 lb) | 464 | 323 | 44% | 2,120 | 902 | 135% |
Quality Control
The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on production of precious and base metals from its Yauricocha Mine in Peru, and its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metals targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora and La Verde (gold) at the Batopilas Property in the state of Chihuahua.
The Company’s shares trade on the Lima Stock Exchange (Bolsa de Valores de Lima) and on the TSX under the symbol “SMT”.
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
| Audra Walsh President & CEO Sierra Metals Inc. 1 (866) 493-9646 |
Victoria Vargas Vice President, Investor Relations Sierra Metals Inc. 1 (866) 493-9646 [email protected] |