Movers and SHAKERS
Sierra Metals (SMTS)(SMT:CA)
Updating Estimates Based on Lower-Than-Expected First Quarter Production
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.
First quarter production was below expectations. First quarter production was negatively impacted by lower grades of ore mined at the Yauricocha and Bolivar mines. Copper, lead, and zinc production amounted to 7.9 million, 9.0 million, and 24.1 million pounds, respectively, while silver and gold production amounted to 961.0 and 2.6 thousand ounces. Copper production decreased 26% relative to the fourth quarter of 2020 and 33% compared to the prior year period.
2021 production guidance unchanged. First quarter production results were impacted by some transitory operational issues that resulted in production from lower grade ore bodies. Despite lower-than-expected production, the company is still expected to meet its forecasted production guidance ranges despite the ongoing challenges of the pandemic. Sierra Metals will release first quarter 2021 financial ...
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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.