Minera Corona Reports 117% Increase In Revenues
Sierra Metals Inc. (TSX:SMT) has revealed that subsidiary Sociedad Minera Corona S.A. has turned in a strong performance for the second quarter of 2021. The company holds an 81.8% interest in Corona.
Corona’s Highlights for the Three Months Ended June 30, 2021 include:
- Revenues of US$50.8 million, a 117% increase from Q2 2020.
- Adjusted EBITDA of US$25.9 million, a 231% increase from Q2 2020.
- Total tonnes processed of 328,909, a 62% increase from Q2 2020.
- Net production revenue per tonne of ore milled increased by 42% to US$151.51.
- Copper equivalent pounds production increased 7% to 15.3 million pounds.
- Cash Cost per copper equivalent payable pound higher by 55% to US$1.41. All-in sustaining cost (AISC) per copper equivalent payable pound higher by 42% to US$2.57.
- Zinc equivalent pounds production increased 29% to 49.9 million pounds.
- Cash cost per zinc equivalent payable pound higher by 28% to US$0.43. All-in sustaining cost (AISC) per zinc equivalent payable pound higher by 18% to US$0.79.
- US$72.5 million of cash and cash equivalents as at June 30, 2021.
- US$102.2 million of working capital as at June 30, 2021.
The Yauricocha mine processed 328,909 tonnes during the second quarter Q2 2021, representing an increase of 62% over the Q2 2020, despite continuing to face several operational challenges related to COVID-19. During the quarter, the treatment capacity in the concentrator plant was increased, obtaining improvements in efficiency and utilisation.
Metal grades were negatively impacted during Q2 2021 due to the delays in the contribution from the Esperanza zone due to ground conditions, which have since been addressed and controlled.
Luis Marchese, CEO of Sierra Metals, said metal production for Q2 2021 was 54%, 35%, 23% and 22% higher for zinc, silver, gold and lead, respectively, while copper production was 11% lower compared to the same quarter of 2020.
“The Yauricocha Mine had a relatively strong quarter with increases in throughput, revenue and net income over the same period in 2020 and over the previous quarter in 2021,” Mr Marchese said.
“The Mine continues to deal with operational difficulties related to COVID-19, however, we are managing the impact using best practices. Our goal continues to be avoiding any mine closure while ensuring that strict protocols remain in place to protect the wellbeing of our employees and the local communities.
“Looking ahead at the remainder of 2021 we have received the final permit required to expand the throughput at Yauricocha to 3,600 tonnes per day.
“We continue to work on the completion of a Preliminary Feasibility Study to support the planned expansion to 5,500 tonnes per day at the Yauricocha Mine.
“Brownfield and greenfield explorations programs are ongoing, and we continue to work to improve operations and manage costs in this challenging environment.
“Minera Corona and the Yauricocha Mine continues to have a strong balance sheet to support the company’s capital expenditures and growth initiatives, and we continue to work to improve per share value for all shareholders.”
For further information please visit: https://www.sierrametals.com
