Movers and SHAKERS
Sierra Metals (SMTS)(SMT:CA)
Peruvian Operations Turn in Better than Expected 2Q Financial Results
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.
Sociedad Minera Corona financial results. Sierra Metals reported financial results for its 81.8%-owned Peruvian subsidiary that owns the Yauricocha mine. Second quarter adjusted EBITDA amounted to $25.9 million which represented a 59.8% increase compared to $16.2 million earned in the first quarter of 2021 and was above our estimate. Compared to the first quarter of 2021, revenue, gross profit, and net income increased 21.2%, 59.6%, and 142.6% to $50.8 million, $25.9 million, and $12.6 million, respectively. Second quarter financial results benefited from higher average realized metals prices and the application of new commercial copper terms since April 2021 that included a decrease in treatment and refining charges.
Updating estimates. We are increasing our 2021 EPS and EBITDA estimates to $0.27 and $147.1 million from $0.25 and $140.5 million, respectively. Our second quarter 2021 EPS and EBITDA estimates have been increased to $0.06 and $34.5 million from $0.05 and $31.0 million, respectively. We think there could be further upside to our second half estimates. Sierra received the final permit to increase ...
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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.