Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The two-months-long COVID-19 related shutdowns of mines by the Peruvian and Mexican governments in April and May affected Sierra Metals’ Q2 2020 production.


The Canadian miner, which released the Q2 2020 production report for its Yauricocha mine in Peru and the Bolivar and Cusi Mines in Mexico on Wednesday indicated that a quick ramp-up after the pandemic-related suspensions enabled the company to remain within its Q2 2020 guidance for copper output.


However, for the first six months of 2020, copper, lead, and zinc production rose at the three mines. In H1 2020, copper production rose 23pc to 21.48mn lb (9,744.52mt) from 17.45mn lb (7917.45mt) during the first six months of 2019. During the same period under comparison, zinc production rose by 7pc to 35.38mn lb (16,051.27mt) from 33.01mn lb (14,974.89mt) and lead output increased by 3pc to 15.48mn lb (7,023.87mt) from 15.02mn lb (6,812.95mt).


The miner’s copper equivalent output from its mines increased by 15pc during the first six months of the year to 54.01mn lb (24,501.24mt) from 47.04mn lb (21,320.65mt) during the same period in 2019. Sierra’s zinc equivalent production also increased by 35pc to 146.03mn lb (66,239mt) from 108.27mn lb (49,113.27mt) during the same period under comparison.   


In Q2 2020, the miner produced copper production remained almost flat at 9.70mn lb (4,399.84mt) compared to the same quarter last year, while lead output decreased by 21pc to 6.40mn lb (2902.99mt) from 8.06mn lb (3,655.95mt) during the same quarter last year. Zinc production also declined to 13.74mn lb (6,232.35mt), down by 17pc from 16.59mn lb (7,525.09mt) in Q2 2019. 


Copper equivalent pounds mined at Sierra decreased by 10pc to 22.74mn lb (10,314.69mt) during the quarter from 25.23mn lb (11,444.13mt), while its zinc equivalent pounds rose by 6pc to 61.53mn lb (27,909.53mt) from 57.62mn lb (26,135.99mt) during the same period under comparison. 

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