Movers and SHAKERS
Sierra Metals (SMTS)(SMT:CA)
Fourth Quarter and Full Year 2020 Production Results; 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.
SMTS reports fourth quarter production results. Compared with the prior year period, fourth quarter production of silver increased 5.9%, while gold production declined 7.0%. Lead, zinc, and copper production declined 23.1%, 15.5%, and 6.0%, respectively. Lower throughput, grades, and recoveries at the Yauricocha mine had an outsized impact on consolidated results. Manpower availability was impacted by COVID-related protocols which impacted mine operations and development. On a full year basis, the company experienced production increases across all metals and achieved the upper end of its production guidance despite the challenges posed by the pandemic.
Updating estimates. We are lowering our full year 2020 EPS and EBITDA estimates to $0.20 and $101.3 million from $0.22 and $105.6 million, respectively. Additionally, we have lowered our 2021 EPS and EBITDA estimates to $0.38 and $175.2 million from $0.40 and $182.2 million, respectively. Our lower 2021 estimates reflect a slower ramp up in production at Yauricocha and modest changes to grade and ...
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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.