Movers and SHAKERS
Thursday, July 16, 2020
Sierra Metals (SMTS)(SMT:CA)
Better than Expected 2Q Production; Raising 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, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
SMTS reports second quarter production results. Compared with the prior year period, second quarter production of copper was flat at 9.7 million pounds, while silver, lead and zinc decreased 31.6%, 20.6% and 17.2% to 572 thousand ounces, 6.4 million pounds and 13.7 million pounds, respectively. Gold production increased 8.7% to 2,762 ounces relative to the prior year period. Second quarter production was negatively impacted by government-mandated work constraints in Mexico and Peru. The decline in silver production was due to the Cusi mine being under care and maintenance. Despite the negative impact of COVID-related work restrictions, production levels were above our expectations due to a strong performance by the Bolivar mine.
Updating estimates. We are increasing our 2020 and 2021 EPS estimates to $0.07 and $0.24 from $0.05 and $0.19, respectively. Our estimates reflect Cusi’s return to service in the third quarter and higher commodity prices. Recent strength in ...
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.