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Wednesday, April 1, 2020
Sierra Metals (SMTS)
Full Year 2019 Results In Line; SMTS Positioned to Weather Near-Term Challenges
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, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Full year earnings in line with expectations. Sierra Metals reported 2019 earnings per share of $0.03 which was in line with our estimate. Full year adjusted EBITDA amounted to $65.3 million. Operationally, the company executed well during the year and increased metals production reflected successful capacity expansions at each of the company’s mines.
Updating estimates. We have lowered our 2020 EPS and EBITDA estimates to $0.21 and $109.5 million, respectively, from $0.24 and $124.9 million. Our revised estimate reflects lower copper prices and higher treatment and refining costs. While we have lowered near term estimates, we think the long-term outlook remains favorable. We forecast 2021 EPS and EBITDA of $0.28 and...
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.