- Sierra Metals (TSX:SMT) has extended the suspension of its Yauricocha mine in Peru by an additional 13 days
- The extension is in line with the Peruvian government’s similarly extended state of emergency
- Only essential service crews will remain at the site until April 12, 2020
- Upon recommencing operations, the company plans to run the mine above its 3,150 tonne per day capacity to make up for lost ore tonnages
- Sierra Metals (SMT) is currently steady at C$1.08 per share, with a market cap of $175.28 million
Sierra Metals (TSX:SMT) has extended the suspension of its Yauricocha mine in Peru by an additional 13 days.
Suspension of the mine was first announced on March 17 this year, after the Peruvian government declared a state of emergency to stem the advance of COVID-19.
The state of emergency was to last for 15 days, but with the virus showing no signs of letting up, the ban on all non-essential business has been extended.
Pursuant to the ban, Sierra Metals will only station essential service crews at the Yauricocha mine until April 12, 2020, when the state of emergency is expected to lift.
Igor Gonzales, President and CEO of Sierra Metals, said that the company’s chief focus is on the health and safety of its workforce.
“A smaller workforce will be maintained to oversee critical aspects of the operation, with the primary goal of facilitating a quick and efficient ramp up back to normal levels once the regional situation improves and state of emergency is lifted,” he added.
Fortunately, the mine had been operating ahead of budget since the beginning of the year. It currently has roughly 37,000 tonnes of ore stockpiled at its processing mill.
Despite the shutdown, Sierra Metals is ahead on its 2020 production tonnage. However, once operations recommence, the company plans to run the mine above its 3,150 tonne per day capacity in order to make up for lost time.
Sierra Metals has said that it will maintain its previously announced 2020 guidance, and will continue working to preserve capital and improve liquidity.
Sierra Metals (SMT) is currently steady at C$1.08 per share at 11:38am EST.