Wednesday, May 15, 2019
Sierra Metals (SMTS)
Will Sierra Regain Momentum Following a Slow Start to the Year?
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.
Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.
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- SMTS reports first quarter loss. SMTS reported a first quarter loss of ($0.01) per share versus earnings of $0.05 per share during the prior year period and our estimate of $0.02 per share. Adjusted EBITDA amounted to $12.0 million versus $27.4 million during the prior year period and our estimate of $15.4 million. First quarter results reflected a 14% reduction in throughput at the Yauricocha mine due to a worker’s strike that resulted in 12 days of lost production and slower than expected ramp up of throughput at the Bolivar and Cusi mines.
- Updating estimates. Management reaffirmed its 2019 production guidance and we think there may be opportunities for Sierra to regain some lost ground during the remainder of the year. While we are making no changes to our respective 2020 EPS and EBITDA estimates of $0.30 and $138.7 million, we are trimm…
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