Movers and SHAKERS
Sierra Metals (SMTS)(SMT:CA)
Lowering Expectations for 2021 Due to Negative COVID Impacts
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.
SMTS reports second quarter production results. Compared with the prior year period, second quarter production of copper declined 1.8% to 9.5 million pounds, while silver, zinc and lead increased 66.8%, 53.8% and 24.3% to 954 thousand ounces, 21.1 million pounds and 7.9 million pounds, respectively. Gold production increased 1.8% to 2,812 ounces relative to the prior year period. Sequentially, copper and gold production increased 20.8% and 6.7%, respectively. Production of zinc, lead, and silver fell 12.4%, 11.6%, and 0.7%, respectively. Operations continue to be negatively impacted by the pandemic although management expects operations to show some improvement throughout the year and will update its full year guidance with the release of second quarter financial results.
Updating estimates. We are lowering our 2021 EPS and EBITDA estimates to $0.25 and $140.5 million from $0.32 and $163.3 million, respectively, to reflect lower full year production. Based on production in the first half, we think it may be challenging for the company to achieve the low end of its production guidance for copper and zinc. Our 2022 EPS and EBITDA estimates remain $0.45 and $208.2 ...
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.