Tuesday, August 17, 2021

Sierra Metals (SMTS)(SMT:CA)
Updated PEA Reflects Enhanced Economics Supporting Bolivar Expansion

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.

Updated Bolivar preliminary economic assessment. Sierra Metals released results from an updated preliminary economic assessment (PEA) for the company’s Bolivar Mine that reflects both an increase in production capacity from 5,000 tonnes per day to 10,000 tonnes per day in 2024, and the incremental benefit of iron ore concentrate production. Both the updated PEA and a previous study, dated October 19, 2020, contemplated a mine life of 14 years. The full technical report will be available within 45 days.


Favorable comparison.  Compared to the prior PEA which also contemplated an increase in production capacity to 10,000 tonnes per day, net after-tax present value increased to US$361 million, compared to US$283 million based on an 8% discount rate. Net after-tax cash flow is expected to increase to US$650 million from US$521 million, with life of mine and sustaining capital cost increasing a modest …

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.