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Friday, May 22, 2020
Sierra Metals (SMTS)(SMT:CA)
Thinking Big
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.
CEO appointment marks next chapter in Sierra Metals’ development. Sierra Metals appointed Mr. Luis Marchese as Chief Executive Officer effective June 1 replacing Mr. Igor Gonzales whose voluntary resignation is effective May 31. Under Mr. Gonzales, Sierra Metals successfully completed significant production expansions at the Yauricocha, Bolivar and Cusi mines along with associated resource and reserve expansions. We believe Mr. Marchese will build on Mr. Gonzales’ work and broaden the focus to consider strategic partnerships that could help accelerate development of potential large-scale copper porphyry projects that could create significant value for Sierra Metals shareholders. The company has been executing well operationally and Mr. Marchese has an impressive record of successfully championing large scale copper projects and working with multiple strategic partners.
Capacity expansions support earnings and cash flow growth. Production capacity has increased 57% from processing 5,375 tonnes per day in 2015 to 8,450 tonnes per day in 2019 for a compound annual growth rate of 12.0%. Production capacity is expected to end 2020 at 9,800 tonnes per day with the potential for additional low-cost expansions. While base metals prices are currently low, most of the capital for recent planned expansions has been spent and we expect the company to begin generating…
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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.