Movers and SHAKERS
Sierra Metals (SMTS)(SMT:CA)
Solid 2020 Operational and Financial Results; Growth Outlook Remains Favorable
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.
Full year financial results. Sierra Metals reported full year 2020 adjusted net income attributable to shareholders of $29.6 million, or $0.18 per share, compared with $13.9 million, or $0.08 per share, in 2019. Adjusted EBITDA increased 48.6% to $97.0 million compared with $65.3 million in the prior year. Our EPS and EBITDA estimates were $0.20 and $101.3 million. Variances to our estimates were attributed to modestly higher expense. Despite the impact of government-mandated shutdowns during the second quarter and work flow adjustments due to COVID-19, the company posted strong earnings and cash flow growth in 2020.
Planned expansions. Management anticipates receipt in the second quarter of the final permit to increase throughput at the Yauricocha mine by 20% to 3,600 tonnes per day. The company recently published preliminary economic assessments for all three mines which support planned expansions and is working toward completion of preliminary feasibility studies. Longer-term expansions could increase ...
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*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.