Sierra Metals, a Canadian mining company, has raised its copper production guidance for 2025. This increase centers on higher ore grades. Also, enhanced throughput rates at the Yauricocha mine in Peru contribute. The company projects copper output between 44.6 million and 48.5 million pounds. This spans both Yauricocha and the Bolivar operation in Mexico.
This forecast exceeds the 44.3 million pounds produced in 2024. Last year’s output surpassed the company’s top-end guidance. Additionally, it shows a 9.9% increase over 2023 levels.
Yauricocha Mine Drives Production Growth
Sierra Metals expects Yauricocha to lead the copper production uptick. The company raised its guidance for this mine. Specifically, it projects 19.5 million to 21.1 million pounds. This is a rise from the 16.9 million pounds produced last year. Mining deeper into higher-grade zones fuels this growth. These zones lie below the 1120 level at Yauricocha.
Furthermore, Sierra anticipates running its mill at its permitted capacity. This capacity is 3,950 metric tons per day. That’s 10% above the nameplate capacity. Zinc and lead production forecasts also increased. Zinc output is expected to be 53.6 million to 58.4 million pounds. Lead output is expected to be 13.7 million to 15 million pounds.
Bolivar Mine Outlook and Takeover Bid
Sierra Metals maintains a relatively flat outlook for Bolivar. The company projects 25.1 million to 27.4 million pounds. This follows the 27.4 million pounds produced in 2024. Lower ore grades will be offset. Increased ore availability and throughput rates will compensate. Exploration activities aim to expand the resource base.
Meanwhile, Sierra Metals faces a takeover bid. Peruvian mining firm Alpayana submitted an all-cash offer. The offer is C85¢ per common share. Sierra’s stakeholders, owning over 50% of outstanding shares, reject the bid. They deem it inadequate. The tender remains open until April 14th.
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