Friday, March 18, 2022
Sierra Metals (SMTS)(SMT:CA)
Strong Finish to a Challenging Year
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 2021 adjusted net income attributable to shareholders of $21.6 million, or $0.13 per share, compared with $30.8 million, or $0.19 per share, in 2020. Adjusted EBITDA increased 1.8% to $104.7 million compared to $102.8 million in the prior year. Our EPS and EBITDA estimates were $0.06 and $89.7 million. Variances to our estimates include higher revenue, differences between actual and modeled net income to non-controlling interests, and various add backs that closed the delta between a GAAP loss of $(0.17) per share and adjusted EPS, including a $35 million asset impairment. In light of 2021 operational challenges, financial and operating results exceeded our expectations.
2022 Guidance. Management forecasts 2022 EBITDA in the range of $90.0 to $105.0 million based on copper equivalent production in the range of 79.5 million to 89.7 million pounds. Completion of mine development at Bolivar should drive stronger financial results in the second half of the year. We think the company’s growth outlook is supported by expansions at existing operations, the addition of an …
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.
