Month: May 2020

A First Quarter Beat, But Lower Expectations for the Second Quarter

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Friday, May 8, 2020

Kratos Defense & Security (KTOS)

A First Quarter Beat, But Lower Expectations for the Second Quarter

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    1Q20 Results. Kratos reported revenue of $168.9 million, above the $164.0 million consensus estimate and our $165.0 million projection. Adjusted EPS totaled $0.09, compared to a consensus and our $0.07 estimate. Adjusted EBITDA for the quarter was $16.3 million. Revenue came in at the high end of guidance, while adjusted EBITDA exceeded the $12-$15 million guidance. range.

    Unmanned Continues to Lead the Way. US revenues of $42.0 million rose $7.1 million, or 20.3%, over the first quarter of 2019, driven by new target awards and additional tactical development contracts. Government Systems segment revenue increased $1.4 million to $126.9 million as organic growth in turbines, microwave, rocket systems, and cyber were offset by reductions in training solutions. satellite communications, and…


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Focusing on Annovera and Imvexxy Commercialization

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Thursday, May 7, 2020

TherapeuticsMD Inc. (TXMD)

Focusing on Annovera and Imvexxy Commercialization

(current) TherapeuticsMD, Inc. is a women’s healthcare company focused on developing and commercializing products targeted exclusively for women. It manufactures and distributes branded and generic prescription prenatal vitamins, as well as over-the-counter vitamins and cosmetics, under our vitaMedMD’ and BocaGreenMD’ brands. The company is currently developing advanced hormone therapy pharmaceutical products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. It is also evaluating various other potential indications for our hormone technology, including oral contraception, preterm birth, vulvar and vaginal atrophy, and premature ovarian failure.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q1 2020 earnings release. The company reported first-quarter earnings yesterday. Total revenues from marketed products reached $12.3 mm, EBITDA was ($50.7 mm) and EPS was ($0.21).

    Greater patient demand for Annovera. In Q1 2020, Annovera net sales were $2.3 million showing a reduction (from $5.8 million in Q4 2019), primarily attributed to lower wholesale orders by the distributors. Total prescriptions sold to patients doubled in Q1 2020. Prescription numbers represent a positive trajectory and greater patient demand. Large scale consumer campaign is now expected to…

    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Solid First Quarter. What’s Next?

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Thursday, May 7, 2020

CoreCivic (CXW)

Solid First Quarter. What’s Next?

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    1Q20 Results. Revenue came in at $491.1 million up 1.5% over the first quarter of 2019, and adjusted EPS was $0.30 versus $0.42 last year. We had forecast $476 million and $0.26, respectively. Normalized FFO was $0.54 per share and AFFO came in at $0.58 per share compared to $0.64 and $0.63, respectively, last year. We were at $0.52 and $0.53. Recall, EPS was expected to decline as populations, particularly for ICE, were expected to decline even before the COVID crisis.

    COVID Response. Operationally, in response to the crisis, CoreCivic has taken a number of measures to conform with guidance from its government partners and public health officials for prevention and addressing positive COVID cases. The Company also announced in April bonuses for every frontline employee as well as an updated leave policy. The Company also offered idle bed capacity at no cost to communities. While these measures will impact operating costs in the short-term, the measures should help the Company exit the…


Click to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Beats Top and Bottom Lines; Expect VA-CMOP to be Extended

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Thursday, May 7, 2020


DLH Holdings Corp. (DLHC)

Beats Top and Bottom Lines; Expect VA-CMOP to be Extended

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    2Q20 Results. Revenue of $54.8 million and EPS of $0.16. We were projecting revenue of $54 million and EPS of $0.14, while consensus was $52.6 million and $0.13, respectively. Last year, revenues were $33.8 million and EPS was $0.10. The y-o-y revenue increase includes the S3 contribution while the Company’s legacy operations also grew steadily, reflecting increased volume to the VA and other agencies.

    VA-CMOP Extension? During the quarter, the government canceled the previously-issued RFP for the VA pharmacy contracts. The RFP included a requirement that the prime contractor be a service-disabled veteran owned small business, which would have precluded DLH from continuing in the prime contractor role. Although the government has not indicated its future procurement strategy, we would expect DLH’s current contracts for these services to be extended for…


    Cllick to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

CoreCivic (CXW) – Solid First Quarter. What’s Next?

Posted on by Admin

Thursday, May 7, 2020

CoreCivic (CXW)

Solid First Quarter. What’s Next?

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    1Q20 Results. Revenue came in at $491.1 million up 1.5% over the first quarter of 2019, and adjusted EPS was $0.30 versus $0.42 last year. We had forecast $476 million and $0.26, respectively. Normalized FFO was $0.54 per share and AFFO came in at $0.58 per share compared to $0.64 and $0.63, respectively, last year. We were at $0.52 and $0.53. Recall, EPS was expected to decline as populations, particularly for ICE, were expected to decline even before the COVID crisis.

    COVID Response. Operationally, in response to the crisis, CoreCivic has taken a number of measures to conform with guidance from its government partners and public health officials for prevention and addressing positive COVID cases. The Company also announced in April bonuses for every frontline employee as well as an updated leave policy. The Company also offered idle bed capacity at no cost to communities. While these measures will impact operating costs in the short-term, the measures should help the Company exit the…


Click to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

DLH Holdings Corp. (DLHC) – Beats Top and Bottom Lines; Expect VA-CMOP to be Extended

Posted on by Admin

Thursday, May 7, 2020


DLH Holdings Corp. (DLHC)

Beats Top and Bottom Lines; Expect VA-CMOP to be Extended

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    2Q20 Results. Revenue of $54.8 million and EPS of $0.16. We were projecting revenue of $54 million and EPS of $0.14, while consensus was $52.6 million and $0.13, respectively. Last year, revenues were $33.8 million and EPS was $0.10. The y-o-y revenue increase includes the S3 contribution while the Company’s legacy operations also grew steadily, reflecting increased volume to the VA and other agencies.

    VA-CMOP Extension? During the quarter, the government canceled the previously-issued RFP for the VA pharmacy contracts. The RFP included a requirement that the prime contractor be a service-disabled veteran owned small business, which would have precluded DLH from continuing in the prime contractor role. Although the government has not indicated its future procurement strategy, we would expect DLH’s current contracts for these services to be extended for…


    Cllick to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

TherapeuticsMD Inc. (TXMD) – Focusing on Annovera and Imvexxy Commercialization

Posted on by Admin

Thursday, May 7, 2020

TherapeuticsMD Inc. (TXMD)

Focusing on Annovera and Imvexxy Commercialization

(current) TherapeuticsMD, Inc. is a women’s healthcare company focused on developing and commercializing products targeted exclusively for women. It manufactures and distributes branded and generic prescription prenatal vitamins, as well as over-the-counter vitamins and cosmetics, under our vitaMedMD’ and BocaGreenMD’ brands. The company is currently developing advanced hormone therapy pharmaceutical products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. It is also evaluating various other potential indications for our hormone technology, including oral contraception, preterm birth, vulvar and vaginal atrophy, and premature ovarian failure.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q1 2020 earnings release. The company reported first-quarter earnings yesterday. Total revenues from marketed products reached $12.3 mm, EBITDA was ($50.7 mm) and EPS was ($0.21).

    Greater patient demand for Annovera. In Q1 2020, Annovera net sales were $2.3 million showing a reduction (from $5.8 million in Q4 2019), primarily attributed to lower wholesale orders by the distributors. Total prescriptions sold to patients doubled in Q1 2020. Prescription numbers represent a positive trajectory and greater patient demand. Large scale consumer campaign is now expected to…

    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Climbing a “Wall of Worry”

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Can the Market Continue to Defy Gravity?

The
stock market’s gyrations this year will be analyzed for generations. The year
2020 isn’t even half over, and to date, the market has experienced an all-time
record high, quickly followed by one of the steepest drops (33.9%, 32 days) in
history. The markets have also registered the highest volatility since the VIX was
launched in January 1990. All of this was immediately followed by a very
profitable market climb, which included the strongest month in 45 years (April
2020).

The remainder of the year is likely to be historic as well. The latest economic releases are unfathomably bad. Over the past six weeks, the US Department of Labor reported 30.3 million new unemployment claims. This represents roughly 20% of the workforce. The read on first-quarter GDP shows a 4.8% contraction in economic output during the quarter. Keep in mind, the first half of the quarter was before the economy was put under sedation, so it was still contributing growth at a robust rate. This portends a much deeper contraction during the current quarter. Corporate earnings have, of course, become extremely strained. This is not necessarily reflected in the major market indexes. Instead, the equity markets have been defying gravity since late March as they have moved upward and are now at the same levels we had a year ago in May. GDP last May was at least 7% stronger than the current pace, and unemployment was low at 3.6%.

Wall
of Worry

The strength of the markets may seem out of place when contrasted against the surrounding economic environment, but this behavior is so common that there is a name for it, “The Wall of Worry.” Investopedia defines it this way: “Wall of worry is the financial markets’ periodic tendency to surmount a host of negative factors and keep ascending. Wall of worry is generally used in connection with the stock markets, referring to their resilience when running into a temporary stumbling block, rather than a permanent impediment to a market advance.” The Investopedia description further explains, “The markets’ ability to climb a wall of worry reflects investor confidence that these issues will be resolved at some point. However, market direction once the wall of worry has been surmounted is impossible to ascertain and depends on the stage of the economic cycle at which it occurs.”

Climbing the wall of worry is what the markets are doing now during the eye of this economic storm.  Since the economic turmoil is self-induced and seems to have an (uncertain) expiration date, the situation is viewed as a temporary impediment. Most would presume the resumption of back-to-work both abroad and in the US before year-end. So the “shelter-in-place” situation that caused the sell-off initially is expected to clear, which leads to the market confidence of investors. The strong markets at first were probably driven by the opportunistic, searching for value, then carried by fear-based investors worried they would miss a chance to get in on the ride upward.

The
Market is Acting Rationally

In addition to looking past the crisis, investors are also picking their spots. When you peel back the layers of the market’s strength to reveal individual sectors rather than look at the performance of the whole composite index, the market appears to be rational. The sectors, where you’d expect strength such as health care and information technology, have acted the most bullish, while materials, real estate, and energy have been laggards. What is more noteworthy is that the strongest of the individual stocks within the S&P are five large-cap names that now account for almost one-fifth of the 500 stocks. If these handful of companies are doing well, their weight impacts the Unsupported image type.performance in a way that overstates overall market movement.

The success of these five (once small) companies’ accounts for much of the S&P 500’s climb. Small-cap, international, and value stocks are lagging. While these laggards made up some ground last week, they have more to go before they catch and pass the performance of the large-cap companies making up the indexes performance. Surpassing the large-cap stocks is likely to happen eventually. Over time, small-cap and value companies have outperformed large-cap. Look at the list above. Most can remember when four of the five were small-cap companies. The potential for outperformance within the equity arena is much higher away from large-cap equities.

Take-Away

While the market has recently experienced big gainers outpacing weaker names, the question of why stocks are showing strength at all confounds many market participants and TV pundits. The answer is that investors are climbing a classic wall of worry by looking through the next couple of quarterly economic releases. Also, they believe the current situation is temporary, and investors are confident that earnings will normalize in time. So, despite significant earnings declines, this situation is presumed to be short term.

Not unlike most rallies, forward-looking investors got in first. Others saw the move and joined them for fear of missing out; this drove the major market measures higher. Will these investors be quick to hit the sell button if the return to a stronger economic climate is slower than expected? Will the market climb of large-cap stocks cause some to seek opportunity in small-cap stocks or value? We are in the middle of this storm; the worst seems to be over, assessing the damages and repairing them will uncover new opportunities to embrace and others to avoid. Investors with the most information and insight into what is going on beneath the surface of both sectors and companies will have successful portfolios.

Suggested Reading:

Small-Cap
vs Large-Cap Investing

Economic Aid Programs – A Gargantuan Experiment with only
Modest Expectations

The Correlation Between Passive Investing &
Underperformance


Enjoy Premium Channelchek Content at No Cost

Sources:

Fed cuts rates
to blunt coronavirus impact, markets drop

States
reopening beaches, beauty salons, and bowling alleys, from Florida to Alaska

Betting
On Retail Stocks At the End of the Brick-And-Mortar World

Wall of
Worry

30 Million
Americans Have Filed Unemployment Claims

Top 10 S&P 500 Stocks by Index
Weight

Resetting Expectations

Posted on by Admin

Wednesday, May 6, 2020

Sierra Metals (SMTS)(SMT:CA)

Resetting Expectations

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Lowering estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.05 and $60.8 million from $0.12 and $81.5 million, respectively. The revised estimates reflect a lower first quarter Yauricocha mine EBITDA contribution due, in part, due to higher costs, and lower company-wide production and average realized metals prices for the balance of the year. While the Cusi mine was put in care in maintenance in response to Mexican government mandated work restrictions associated with COVID-19, we now assume the Cusi mine will remain in care and maintenance for the remainder of 2020. We expect the company to undertake more development work to position Cusi for greater production capacity and margin improvement. We have also lowered our 2021 EPS and EBITDA estimates to $0.19 and $108.6 million from $0.24 and $122.6 million to reflect lower metal prices and margins.

    COVID-19 work restrictions. In Peru and Mexico, work restrictions are expected to continue until May 10 and May 30, respectively. In Mexico, operations in remote locations, including the Bolivar mine, may return to service as early as May 18. While it may take a few weeks to ramp up to normal production levels, we expect Yauricocha and Bolivar to resume production on May 11 and…


    Click here to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Coverage Dropped

Posted on by Admin

Wednesday, May 6, 2020

Torchlight Energy Resouces Inc. (TRCH)

Coverage Dropped

Torchlight Energy Resources Inc acquires, explores, exploits, and develops oil and natural gas properties in the United States. The company has an interest in four oil and gas projects: the Orogrande Project in Hudspeth County, Texas; the Hazel Project in Sterling, Tom Green, and Irion Counties, Texas; the Winkler Project in Winkler County, Texas; and the Hunton wells in partnership with Husky Ventures in central Oklahoma.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    We are dropping coverage of Torchlight Energy to devote resources to other areas. Past recommendations or estimates should not be viewed as reliable.


    Get the full report on Channelchek desktop.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

ACCO Brands Corporation (ACCO) – Post 1Q20 Call Commentary

Posted on by Admin

Wednesday, May 6, 2020

ACCO Brands Corporation (ACCO)

Post 1Q20 Call Commentary

ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    COVID Impacting Operations. ACCO began experiencing the impacts in March as many countries in Europe began shutting down. Second quarter revenues and profits are expected to be significantly below last year, with April the weakest month of the quarter. Visibility past then is poor currently, although the back-to-school season is seeing strength from mass merchants and e-tailers, the largest B2S retailers. ACCO has been deemed an essential business, a positive in our view.

    But Well Positioned. ACCO is well positioned to ride out the COVID storm. From an operating perspective, roughly 65% of revenues are derived from consumables and B2S sales account for a significant portion of revenues. Financially, the Company ended the quarter with $93.4 million of cash and $450 million of availability under its revolving facility. The recent bank debt amendment provides…

    Click here to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Sierra Metals (SMTS)(SMT:CA) – Resetting Expectations

Posted on by Admin

Wednesday, May 6, 2020

Sierra Metals (SMTS)(SMT:CA)

Resetting Expectations

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Lowering estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.05 and $60.8 million from $0.12 and $81.5 million, respectively. The revised estimates reflect a lower first quarter Yauricocha mine EBITDA contribution due, in part, due to higher costs, and lower company-wide production and average realized metals prices for the balance of the year. While the Cusi mine was put in care in maintenance in response to Mexican government mandated work restrictions associated with COVID-19, we now assume the Cusi mine will remain in care and maintenance for the remainder of 2020. We expect the company to undertake more development work to position Cusi for greater production capacity and margin improvement. We have also lowered our 2021 EPS and EBITDA estimates to $0.19 and $108.6 million from $0.24 and $122.6 million to reflect lower metal prices and margins.

    COVID-19 work restrictions. In Peru and Mexico, work restrictions are expected to continue until May 10 and May 30, respectively. In Mexico, operations in remote locations, including the Bolivar mine, may return to service as early as May 18. While it may take a few weeks to ramp up to normal production levels, we expect Yauricocha and Bolivar to resume production on May 11 and…


    Click here to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.