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Sierra Metals: Bullish Exposure To Copper And Precious Metals

Apr. 05, 2021 2:40 PM ETSierra Metals Inc. (SMTSF), SMT:CA9 Comments


  • Sierra Metals reported its Q4 results highlighted by strong profitability benefiting from higher output and metals pricing despite COVID-19 challenges.
  • Expectation for significant production growth in the coming years supports a positive long-term outlook.
  • We are bullish on the stock and see upside with exposure to copper and silver translating to higher cash flows and solid profitability.
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Pouting molten copper
Photo by tifonimages/iStock via Getty Images

Sierra Metals (SMTS) is a Canada-based industrial and precious metals mining company with operations across Mexico and Peru. Despite disruptions last year due to the pandemic, 2020 was a breakout year for the company which benefited from a surge in metals

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This article was written by

Dan Victor, CFA profile picture

Dan Victor, CFA is a market professional with more than 15 years of investment management experience across major financial institutions in research, strategy, and trading roles. Dan is the president of Posto Asset Management - a startup investment advisory firm based in Miami Beach, Florida.

Dan leads the investing group Learn more

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in SMTS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (9)

TuttiX1_1XTutti profile picture
Hi, can you do an update here? Thanks
Hi, BOOX Research, I would love to hear your thoughts on their latest Q3 reports.
JimOhio profile picture
The last earnings call transcript, which is posted on Seeking Alpha had a pretty heated exchange where analysts kept asking about some corporate level news that Sierra mentioned a while ago.
Dan Victor, CFA profile picture
@JimOhio I saw that.. the caller was making a point that SMTS has underperformed FCX over the past year and should explore some strategic alternative.. my take is that the stock is simply undervalued and it's just a matter of time till the market reprices it higher. a lot of these small-caps are in a similar spot where they just trade at a discount apparently unloved by the market. if they go through 2021 operating a "capacity" while meeting or exceeding guidance this is a no-brainer that the stock climbs higher assuming copper/silver around this level.
JimOhio profile picture
@BOOX Research A while ago Sierra said they were seeking strategic alternative and these analysts were asking about an update but Sierra would not say a thing about it.
@JimOhio Yeah they are still going through Board Strategic Review. Who knows? It might get sold next month.
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