Category: Natural Resources

Building on Momentum

Posted on by Admin

Thursday, May 14, 2020

Ely Gold Royalties (ELYGF)(ELY:CA)

Building on Momentum

As of April 24, 2020, Noble Capital Markets research on Ely Gold Royalties is published under ticker symbols (ELYGF and ELY:CA). The price target is in USD and based on ticker symbol ELYGF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Ely Gold Royalties Inc is an emerging royalty company with producing and development assets focused in Nevada and the Western US. It offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term gold royalties.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

    Ely closes on purchase of second producing royalty at Jerritt Canyon. Ely Gold announced that it has completed the purchase agreement of a 0.5% net smelter returns royalty on the Jerritt Canyon mine, located near Elko, Nevada. Royalty payments began to accrue in February 2020. Ely Gold also holds a per ton royalty interest on the Jerritt Canyon processing facilities and a 0.75% producing royalty on the Isabella Pearl mine operated by Gold Resource Corp.

    Ely graduates to the OTCQX. Ely Gold upgraded to the OTCQX Best Market from the OTCQB Venture Market and began trading on May 12, 2020 under the symbol “ELYGF.” Because listing requirements are more stringent, graduating to the OTCQX market is expected to enhance the company’s visibility among U.S. investors and liquidity. Ely also trades on 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. 

Gevo, Inc. (GEVO) – Wider Quarterly Loss, But Cost Cuts Are Positive

Posted on by Admin

Wednesday, May 13, 2020

Gevo, Inc. (GEVO)

Wider Quarterly Loss, But Cost Cuts Are Positive

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

    Wider 1Q2020 loss, but 2020 estimated EBITDA losses narrowed to $14.4 million due to idling of Luverne plant in response to ethanol market weakness. Adjusted 1Q2020 EBITDA of $(6.3)

    million was wider than $(4.0) million in 4Q2019 due to weaker ethanol market. Luverne plant idling reduces operating losses and improves cost structure to push quarterly cash burn down below the $4 million range.

    Solid progress on Phase 1 goal of lower carbon intensity. Luverne plant idled for foreseeable future, but no change in near-term strategy. Wind energy is now in place and biogas strategy continues with build out of renewable natural gas (RNG) production. Phase 2 expansion backed by existing supply portfolio. Supply agreements of 17 million gallons/year in place (valued at $600 million) and potential supply agreements in the up to 70 million gallons/year range (~$1.5 billion of added value) are ongoing despite the current turmoil in the airline/refining industries. Interest in commercializing the concept remains high and industry partners could be added shortly. Potential expansion plans include retro-fitting two other existing ethanol plants and…



    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. 

Wider Quarterly Loss, But Cost Cuts Are Positive

Posted on by Admin

Wednesday, May 13, 2020

Gevo, Inc. (GEVO)

Wider Quarterly Loss, But Cost Cuts Are Positive

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

    Wider 1Q2020 loss, but 2020 estimated EBITDA losses narrowed to $14.4 million due to idling of Luverne plant in response to ethanol market weakness. Adjusted 1Q2020 EBITDA of $(6.3)

    million was wider than $(4.0) million in 4Q2019 due to weaker ethanol market. Luverne plant idling reduces operating losses and improves cost structure to push quarterly cash burn down below the $4 million range.

    Solid progress on Phase 1 goal of lower carbon intensity. Luverne plant idled for foreseeable future, but no change in near-term strategy. Wind energy is now in place and biogas strategy continues with build out of renewable natural gas (RNG) production. Phase 2 expansion backed by existing supply portfolio. Supply agreements of 17 million gallons/year in place (valued at $600 million) and potential supply agreements in the up to 70 million gallons/year range (~$1.5 billion of added value) are ongoing despite the current turmoil in the airline/refining industries. Interest in commercializing the concept remains high and industry partners could be added shortly. Potential expansion plans include retro-fitting two other existing ethanol plants and…



    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. 

Aurania Resources (AUIAF)(ARU:CA) – LiDAR Surveys Yield Valuable Leads

Posted on by Admin

Tuesday, May 12, 2020

Aurania Resources (AUIAF)(ARU:CA)

LiDAR Surveys Yield Valuable Leads

As of April 24, 2020, Noble Capital Markets research on Aurania Resources is published under ticker symbols (AUIAF and ARU:CA). The price target is in USD and based on ticker symbol AUIAF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

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

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

    LiDAR images yield clues in locating historic mining centers. Images from a recent LiDAR survey revealed a potential historic road that is up to 60 meters wide in the central part of the Lost Cities project and is thought to have been constructed during the Colonial Spanish period. This finding, along with another historic path discovered in late 2019, could yield more clues to the location of the historic gold mining centers of Sevilla de Oro and Logrono de los Caballeros, both believed to be within the Lost Cities project area. In addition to helping detect remnants of infrastructure, LiDAR surveys are being used to refine targets for gold and copper exploration.

    Vein system identified at Tiria. LiDAR imagery also identified a vein system that coincides with areas containing silver in soil samples from the Tiria South epithermal gold and silver target. If a vein system is confirmed by field work, the target for follow up work would be 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. 

LiDAR Surveys Yield Valuable Leads

Posted on by Admin

Tuesday, May 12, 2020

Aurania Resources (AUIAF)(ARU:CA)

LiDAR Surveys Yield Valuable Leads

As of April 24, 2020, Noble Capital Markets research on Aurania Resources is published under ticker symbols (AUIAF and ARU:CA). The price target is in USD and based on ticker symbol AUIAF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

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

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

    LiDAR images yield clues in locating historic mining centers. Images from a recent LiDAR survey revealed a potential historic road that is up to 60 meters wide in the central part of the Lost Cities project and is thought to have been constructed during the Colonial Spanish period. This finding, along with another historic path discovered in late 2019, could yield more clues to the location of the historic gold mining centers of Sevilla de Oro and Logrono de los Caballeros, both believed to be within the Lost Cities project area. In addition to helping detect remnants of infrastructure, LiDAR surveys are being used to refine targets for gold and copper exploration.

    Vein system identified at Tiria. LiDAR imagery also identified a vein system that coincides with areas containing silver in soil samples from the Tiria South epithermal gold and silver target. If a vein system is confirmed by field work, the target for follow up work would be 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. 

Great Panther Mining (GPL)(GPR:CA) – Lowering Rating to Market Perform

Posted on by Admin

Monday, May 11, 2020

Great Panther Mining (GPL)(GPR:CA)

Lowering Rating to Market Perform

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

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

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

    GPL reports first quarter loss. Great Panther Mining reported a first quarter loss of $(40.5) million, or $(0.13) per share, compared with our net income estimate of $71 thousand, or $0.00 per share. The variance to our estimate was due to lower revenue and losses on derivative instruments and foreign exchange. Adjusted EBITDA amounted to $6.4 million which was below our estimate.

    Updating estimates.While our 2021 estimates are unchanged, we are lowering our 2020 EPS and EBITDA estimates to ($0.09) and $50.2 million from $0.03 and $61.4 million. The decline in EBITDA is not as severe given that losses on derivative instruments 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. 

Endeavour Silver (EXK)(EDR:CA) – Signs of Progress With More Work to Do

Posted on by Admin

Monday, May 11, 2020

Endeavour Silver (EXK)(EDR:CA)

Signs of Progress With More Work to Do

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

    EXK reports a first quarter 2020 loss. EXK reported a first quarter net loss of $(15.9) million, or $(0.11) per share, compared to our forecast of a loss of $(5.0) million, or $(0.03) per share. The variance to our estimates were due, in part, to greater exploration expense, a write-down of inventory and losses on foreign exchange.

    Updating estimates. We now forecast a 2020 loss of $(0.15) per share and EBITDA of $10.5 million compared to our prior estimates of $(0.06) and $22.5 million. Our 2021 EPS and EBITDA estimates are $0.07 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. 

Lowering Rating to Market Perform

Posted on by Admin

Monday, May 11, 2020

Great Panther Mining (GPL)(GPR:CA)

Lowering Rating to Market Perform

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

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

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

    GPL reports first quarter loss. Great Panther Mining reported a first quarter loss of $(40.5) million, or $(0.13) per share, compared with our net income estimate of $71 thousand, or $0.00 per share. The variance to our estimate was due to lower revenue and losses on derivative instruments and foreign exchange. Adjusted EBITDA amounted to $6.4 million which was below our estimate.

    Updating estimates.While our 2021 estimates are unchanged, we are lowering our 2020 EPS and EBITDA estimates to ($0.09) and $50.2 million from $0.03 and $61.4 million. The decline in EBITDA is not as severe given that losses on derivative instruments 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. 

Signs of Progress With More Work to Do

Posted on by Admin

Monday, May 11, 2020

Endeavour Silver (EXK)(EDR:CA)

Signs of Progress With More Work to Do

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

    EXK reports a first quarter 2020 loss. EXK reported a first quarter net loss of $(15.9) million, or $(0.11) per share, compared to our forecast of a loss of $(5.0) million, or $(0.03) per share. The variance to our estimates were due, in part, to greater exploration expense, a write-down of inventory and losses on foreign exchange.

    Updating estimates. We now forecast a 2020 loss of $(0.15) per share and EBITDA of $10.5 million compared to our prior estimates of $(0.06) and $22.5 million. Our 2021 EPS and EBITDA estimates are $0.07 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. 

InPlay Oil (IPOOF)(IPO:CA) – Making The Most of a Difficult Situation

Posted on by Admin

Friday, May 8, 2020

InPlay Oil (IPOOF)(IPO:CA)

Making The Most of a Difficult Situation

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

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

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

    2020-1Q results above expectations. The company reported production of 4,784 boe/d slightly below our 5,000 boe/d estimate, with 304 boe/d lost due to cold weather. Production costs of C$14.67/boe were slightly above expectations due to the low production. Realized oil pricing held up better than expected ($46.17), but the impact will clearly be felt in future quarters. Adjusted Fund Flow of $3.4 million was above our $1.0 million estimate as were earnings $(0.07), excluding $1.41 in nonrecurring charges versus our estimate of $(0.11).

    Tough times are coming. Keep an eye on debt. In April, management reduced salaries, deferred well workovers and sought concessions from vendors. Cost reductions are running 25-30% ahead of expectations but there will be an impact on production. Management indicated it will nominate oil sales in June at 20% of pre-curtailment capacity, or 2,300 boe/d, as it fills excess oil storage. These were difficult steps to take for a management team that prided itself on continual production growth. IPO has drawn down $52.6 million of its revolving credit facility. The facility will be reviewed on or…


    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. 

Making The Most of a Difficult Situation

Posted on by Admin

Friday, May 8, 2020

InPlay Oil (IPOOF)(IPO:CA)

Making The Most of a Difficult Situation

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

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

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

    2020-1Q results above expectations. The company reported production of 4,784 boe/d slightly below our 5,000 boe/d estimate, with 304 boe/d lost due to cold weather. Production costs of C$14.67/boe were slightly above expectations due to the low production. Realized oil pricing held up better than expected ($46.17), but the impact will clearly be felt in future quarters. Adjusted Fund Flow of $3.4 million was above our $1.0 million estimate as were earnings $(0.07), excluding $1.41 in nonrecurring charges versus our estimate of $(0.11).

    Tough times are coming. Keep an eye on debt. In April, management reduced salaries, deferred well workovers and sought concessions from vendors. Cost reductions are running 25-30% ahead of expectations but there will be an impact on production. Management indicated it will nominate oil sales in June at 20% of pre-curtailment capacity, or 2,300 boe/d, as it fills excess oil storage. These were difficult steps to take for a management team that prided itself on continual production growth. IPO has drawn down $52.6 million of its revolving credit facility. The facility will be reviewed on or…


    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. 

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. 

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.