TSX- and Peru-listed Sierra Metals reported adjusted earnings before interest, taxes, depreciation and amortisation of $17.4-million for the fourth quarter of 2018, compared with $17.5-million in the fourth quarter of 2017.
The company processed 268 363 t, compared with 254 993 t processed in the prior comparable period.
This resulted in silver output of 402 000 oz, copper production of 4.7-million pounds, lead output of 7.5-million pounds, zinc output of 17.5-million pounds and gold production of 850 oz.
Sierra Metals holds an 81.8% interest in Sociedad Minera Corona, which in turn owns the Yauricocha mine, in Peru.
For the reporting period, cash costs were 7% lower at $0.52 per zinc equivalent payable pound and all-in sustaining costs were 19% lower at $0.73 per zinc equivalent payable pound, compared with the fourth quarter of 2017, owing to the higher metal production achieved.
“The company continues to make progress on projects at the mine and during the fourth quarter we completed the refurbishment of the lower part of the Mascota Shaft, as well as the infrastructure and tie-ins for the Yauricocha tunnel, allowing for faster turnaround in the cycle time of the trolley locomotives, and providing for increased capacity and handling of larger volumes of ore and waste.
“Looking ahead, 2019 represents a critical year at Yauricocha for projects, improvements and exploration. While we have recently received our environmental-impact assessment permit for the mine for the completion of the next level of the tailings deposition facility, we must now apply for our construction permit and begin planning on additional waste rock facilities to support future growth,” said Sierra Metals president and CEO Igor Gonzales.
Additionally, the Yauricocha shaft will continue to be sunk to the 1 270 level this year to provide access to further reserves and resources at the mine and loading pockets will be added on the 1 210 level.
The company will also start work on a ramp that connects the 920 level with the 720 level of the Yauricocha mine, providing for an additional 10 000 t/m of increased capacity to move ore and waste from the mine.
“Corona continues to have a solid balance sheet and strong liquidity. Management remains optimistic that continued operational efficiencies and future operational and resource growth are possible at Yauricocha,” concluded Gonzales.