(All metal prices reported in USD)

Bolivar’s improved operating performance resulted in a 69% and 130% increase in copper equivalent production over Q3 2022 and Q4 2021, respectively.
A measured and progressive approach to reach full operating capacity at Yauricocha continues, following the mudslide in Q3 2022.
Consolidated 2022 copper equivalent production decreased 29% compared to 2021 due to lower production at Yauricocha resulting from the suspension of mining operations and lower grades across all metals, except for gold.
TORONTO--(BUSINESS WIRE)-- Sierra Metals Inc . (TSX: SMT) (“Sierra Metals” or the “Company”) reports fourth quarter and full year 2022 production results. Results are from Sierra Metals’ three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, the copper-producing Bolivar mine and the silver-producing Cusi mine in Mexico.

Truck being loaded at Bolivar Rom Pad headed to Concentrate Plant (Photo: Business Wire)
Truck being loaded at Bolivar Rom Pad headed to Concentrate Plant (Photo: Business Wire)

Ernesto Balarezo, Interim CEO of Sierra Metals, commented on a challenging 2022 for the Company,

“Early in the year, Yauricocha’s throughput and grades were hindered by a shortage of mine and service personnel due to the COVID-19 pandemic, as well as permitting restrictions. In the third quarter, production was halted due to the tragic mudslide event followed by a road blockade. The mine’s throughput in Q4 declined by 43% when compared to Q3 and 45% when compared to the same quarter last year. While recovery toward Yauricocha’s full production potential continues, safety remains our highest priority. To lead this initiative, Sierra Metals has hired a Vice President, Health & Safety.

At Bolivar, progress in reducing the significant backlog in drilling and mine development that arose during the pandemic was delayed throughout the first half of the year, due to setbacks encountered during the installation of critical infrastructure. These delays were compounded in Q3 by unexpected flooding, negatively affecting production during most of the quarter. However, the Company achieved meaningfully improved performance during Q4 due to infrastructure upgrades in pumping and ventilation, which created improved conditions required to support the advancement of the mine’s preparation and development. A 19% increase in throughput along with improved head grades in all metals resulted in a 69% increase in copper equivalent pounds produced when compared to Q3 2022. When compared to Q4 2021, throughput increased by 19% and copper equivalent production increased by 130%.

Mr. Balarezo concluded,“I am encouraged by the production improvements during the fourth quarter. Our primary goal in the new year is to ramp up production at Yauricocha, stabilize production at Bolivar and optimize Cusi’s production. We are committed to ensuring operations run safely, efficiently and effectively with efforts to streamline processes and reduce inefficiencies where possible. Consistent with the Company’s efforts, the Special Committee of the Board of Directors is continuing to diligently pursue its strategic review process.”

Consolidated Production Results
Consolidated Production Year Ended December 31,
Q4 2022 Q3 2022 % Var. Q4 2021 % Var.
2022 2021 % Var.

Tonnes processed (t) 494,980 561,906 -12% 590,057 -16% 2,287,797 2,902,220 -21%

Daily throughput 5,657 6,422 -12% 6,743 -16% 6,537 8,292 -21%
Silver production (000 oz) 570 669 -15% 805 -29% 2,581 3,527 -27%

Copper production (000 lb) 6,170 6,299 -2% 6,071 2% 27,127 31,757 -15%
Lead production (000 lb) 2,071 3,878 -47% 6,011 -66% 13,498 30,816 -56%

Zinc production (000 lb) 6,367 10,815 -41% 14,913 -57% 38,100 79,281 -52%
Gold Production (oz) 3,411 2,199 55% 1,863 83% 10,155 9,572 6%

Copper equivalent pounds (000's)(1) 14,073 16,637 -15% 17,841 -21% 64,218 89,926
-29%

(1) Copper equivalent pounds were calculated using the following realized prices:

Q4 2022 - $21.21/oz Ag, $3.63/lb Cu, $1.37/lb Zn, $0.95/lb Pb, $1,730/oz Au.
Q3 2022 - $19.26/oz Ag, $3.51/lb Cu, $1.49/lb Zn, $0.90/lb Pb, $1,730/oz Au.

Q4 2021 - $23.41/oz Ag, $4.40/lb Cu, $1.55/lb Zn, $1.06/lb Pb, $1,795/oz Au.
FY 2022 - $21.77/oz Ag, $3.99/lb Cu, $1.59/lb Zn, $0.98/lb Pb, $1,802/oz Au.

FY 2021 - $25.21/oz Ag, $4.23/lb Cu, $1.37/lb Zn, $1.00/lb Pb, $1,796/oz Au.

Consolidated quarterly throughput during Q4 2022 was 494,980 tonnes, a decrease of 12% when compared to Q3 2022, mainly due to the 43% decline in throughput at Yauricocha compared to Q3 2022. As a result, consolidated copper equivalent production also declined by 15% when compared to Q3 2022.

While a 19% increase in throughput during Q4 2022 at the Bolivar Mine, combined with higher grades in all metals, provided a 69% increase in copper equivalent production over the prior quarter, it was not enough to offset the decline in production at Yauricocha. When compared to Q4 2021, a 16% decrease in consolidated throughput resulted in a 21% decrease in consolidated copper equivalent production.

When comparing 2022 to 2021, a 21% decrease in consolidated throughput provided a 29% decrease in copper equivalent pounds produced. see & read ore on
https://www.sierrametals.com/investors/news-releases/news-release-details/2023/Sierra-Metals-Reports-Q4-and-Full-Year-2022-Production-Results-Reflecting-Improved-Performance-at-Its-Bolivar-Mine/default.aspx