|
|
|
|
Tuesday, October 1, 2019
Sierra Metals (SMTS)
Looking Ahead to 2020
Sierra Metals is a mid-size precious and base metal producer with mines in Mexico (Bolivar and Cusi) and Peru (Yauricocha). The company has expanded milling capacity in recent years and is poised to grow as it expands existing operations and makes selective acquisitions. The company has ample brownfield opportunities surrounding its existing mines and is actively drilling at all three of its producing mines. The company trades on the NYSE under the symbol SMTS and on the Toronto exchange under the symbol SMT. Sierra has approximately 163 million fully diluted shares outstanding. Arias Resource Capital owns 52% of the company, BlackRock owns 10% and Ingalls & Snyder owns 5%. Consequently, the shares of SMTS and SMT.TO are thinly traded.
Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to full report for price target, fundamental analysis and rating.
- Updating estimates. While our 2019 estimates remain unchanged, we have increased our 2020 EPS and EBITDA estimates to $0.28 and $132.0 million from $0.26 and $129.9 million, respectively. The increase to our estimate reflects, in part, modestly higher contributions from the Bolivar and Cusi mines based on higher average grades and recoveries.
- Growth driven by near-term expansions. In our view, Sierra’s growth outlook, based on planned expansions, is robust and should drive revenue growth and lower unit costs. Production at Yauricocha is expected to…
Get 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 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.