Monday, April 26, 2021
Sierra Metals (SMTS)(SMT:CA)
Trimming Estimates Based on Modestly Lower 2021 Production Expectations
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.
Trimming 2021 production expectations. While Sierra is expected to meet its forecasted production guidance ranges, we now forecast silver, gold, copper, lead, and zinc production of 4.4 million ounces, 11.5 thousand ounces, 45.6 million pounds, 32.7 million pounds, and 105.0 million pounds, respectively. Our estimates are now closer to the midpoints of the company’s guidance for each metal. The company’s operations and ability to develop higher grade ore bodies have been hindered by the pandemic’s impact on Sierra’s work force. Upside to our estimates may depend on the negative impacts of the pandemic abating.
Updating estimates. We have modestly lowered our 2021 EPS and EBITDA estimates to $0.36 and $166.1 million from $0.38 and $173.1 million, respectively. Our respective first quarter 2021 EPS and EBITDA estimates are $0.05 and $28.4 million. The reduction in our estimates reflects lower full year production and higher costs. Sierra Metals will release first quarter 2021 financial results after the …
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.
