Sierra Metals Boosts Copper Production Forecast for 2025

Sierra Metals

Canada-based Sierra Metals projects an increase in copper production for 2025, driven by improved ore grades and enhanced throughput rates, particularly at its Yauricocha mine in Peru. The company estimates copper output to range from 44.6 million to 48.5 million pounds for the year, an uptick from the 44.3 million pounds produced in 2024. This projection surpasses last year's figures, which already exceeded the upper end of Sierra's forecast by 9.9% compared to 2023.

Strategic Operations at Yauricocha and Bolivar

The primary contributor to the expected increase in copper output is the Yauricocha mine, with its production guidance adjusted upwards to between 19.5 million and 21.1 million pounds, up from 16.9 million pounds last year. This boost is attributed to mining deeper into higher-grade zones and running the mill at 3,950 metric tons per day, 10% over the designated capacity. Additionally, Sierra Metals plans to maintain steady production at its Bolivar mine in Mexico, targeting between 25.1 million and 27.4 million pounds of copper.

Zinc and Lead Outlook

Alongside copper, Sierra Metals has raised its full-year production guidance for zinc and lead at Yauricocha. Zinc production is expected to hit between 53.6 million and 58.4 million pounds, and lead between 13.7 million and 15 million pounds. This follows a year where zinc production rose by 2.9% to 44.9 million pounds, although lead output saw a decrease of 17%.

Navigating Challenges and Opportunities

As Sierra Metals prepares for 2025, it also faces a potential takeover challenge from Peruvian mining firm Alpayana. Alpayana has made an all-cash offer of C$0.85 per common share, which Sierra’s stakeholders, holding over 50% of the company's shares, have deemed insufficient. The offer remains open until April 14, leaving the future of the takeover uncertain.