Cerrado Metals' Peru mining project suffers from costs

  • Tuesday, February 23, 2021
  • Source:ferro-alloys.com

  • Keywords:Cerrado
[Fellow]Cerrado Metals' Peru mining project suffers from costs

Ferro-alloys.com:According to the website of MINING JOURNAL, Sierra Metals is a listed company focusing on the production, exploration and development of precious metals and base metals in Peru and Mexico. The day after Sierra revealed that the cost of its Peru mine project has risen, the company's stock price plummeted by more than 10% in Toronto.

Cerrado Metals announced on February 16 the unaudited fourth quarter results of the Yauricocha project in Peru, operated by its 81%-owned Corona subsidiary. In 2019, the Yao Rui Kecha project contributed 68% of Sierra's total revenue. Compared with the same period in 2019, due to the increase in smelting and processing costs, the overall maintenance cost of the project in the fourth quarter of 2020 increased by 17%. However, due to rising metal prices, revenue in the fourth quarter of 2020 increased by 7% year-on-year. Looking at the overall situation of rising costs and metal prices, the company's revenue fell by 6%.

Sierra CEO Luis Marchese said he was satisfied with Yao Rui Kecha’s performance in the fourth quarter. “Overall, 2020 is a challenging year. In the context of the new crown epidemic, The company performed well and achieved gratifying results." He also said, "The company expects to release a preliminary feasibility study for increasing production soon, with the aim of increasing the daily copper output of the Yaorui Kecha project to 5,500 tons by 2024."

Cerrado Metals is considering whether to expand the Cusi silver polymetallic and Bolivar copper polymetallic projects, which it owns 100% in Mexico, or sell part of the equity. 

  • [Editor:zhaozihao]

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