Wednesday, August 25, 2021
Sierra Metals (SMTS)(SMT:CA)
Virtual Road Show Take-Aways
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 of Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Virtual Roadshow. Noble and Channelchek recently hosted a virtual roadshow featuring Mr. Luis Marchese, Chief Executive Officer, who provided an overview of operations and planned growth initiatives. While the pandemic had reduced the company’s operating work force levels during the first half of 2021, staffing has returned to normal. However, the company is still playing catch up on certain projects that had been planned earlier in the year, including mine development to access higher grade ore bodies. Because the inauspicious start of the new President in Peru has elevated anxiety among investors, the new administration should provide greater certainty with respect to planned mining policies and taxation.
Strategic growth opportunities. While Sierra is undergoing a strategic review that could contemplate a sale, the company has significant growth opportunities, including expansion potential at Bolivar utilizing the existing mill, and exploration potential at the Reyna and Batopilas properties in Mexico that could potentially support another mine and mill. Given that Cusi is small and primarily a …
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.