Wednesday, March 10, 2021
Sierra Metals (SMTS)(SMT:CA)
Copper Prices Strengthen in 2021; Updating Estimates
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.
Updating estimates. While our 2020 estimates are unchanged, we are increasing our 2021 EPS and EBITDA estimates to $0.40 and $180.1 million from $0.38 and $175.2 million, respectively. Our revised estimates reflect changes to our 2021 price deck including higher copper prices, along with lower gold prices. We have also made modest adjustments to our production estimates within the company’s guidance range.
Fundamentals appear favorable. Base metals prices appear to be responding to increased demand expectations as markets recover and economic growth accelerates. Year to date through March 9, copper futures prices are up 14%. Secular themes including trends toward electrification favor metals used in electric vehicle batteries, charging stations, and solar and renewable …
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.
