Movers and SHAKERS
Wednesday, June 10, 2020
Sierra Metals (SMTS)(SMT:CA)
Getting Back to Normal
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, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Dialing up activity at Yauricocha and Bolivar. Effective June 5, the Peruvian government activated Phase II of its economic recovery plan which includes mining activities. Sierra Metals expects to progressively ramp Yauricocha mine operations to full capacity. In Mexico, mining operations could resume on June 1 and the company recalled employees associated with the Bolivar mine. The company has established protocols to prevent the risk of COVID-19 infection at the mines. We expect that it could take several weeks for the mines to ramp up to full production. However, operational decisions will be influenced by concerns for the safety of employees and the work environment. Due to its operating flexibility, Yauricocha could recover a portion of production lost due to COVID-19 work restrictions.
Base metals prices exhibit some strength. Copper, lead, and zinc prices have exhibited some strength in recent weeks as economies have re-opened and the outlook for demand has improved. Quarter to date through June 9, copper futures prices...
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.