Sierra Metals Inc (SMTS) stock lost 7.05% in Monday’s May, 10 trading session but SMTS recovered its loss in the after-market session and gained 7.58%to close the day at $3.69 per share. SMTS shares have surged 342.69% over the last 12 months, and over the past three months, the stock has gained 0.29%, while over the past six months, it has added 61.41%.
Financial results announcement
On May 6, 2021, Sierra Metals Inc released its financial results for the first quarter of 2021.
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Q1 2021 financial highlights
- Sierra Metals earned a revenue of $69.6 million in Q1 2021 compared to $55.6 million in Q1 2020.
- In Q1 2021, adjusted EBITDA was$25.3 million compared to $16.1 million in Q1 2020.
- In Q1 2021, net income attributable to shareholders was $3.1 million or $0.02 per share (basic and diluted) compared to $1.9 million) or $0.01 per share (basic and diluted) in Q1 2020.
- Adjusted net income attributable to shareholders was $4.4 million, or $0.03 per share, for Q1 2021 as compared to the adjusted net income of $1.2 million, or $0.01 per share for Q1 2020.
- On March 31, 2021, Sierra Metals had cash and cash equivalents of $74.3 million and working capital of $64.7 million compared to $71.5 million cash and cash equivalents and $70.1 million working capital on March 31, 2020.
$28 million investment by Sierra Metals
On April 21, 2021, Sierra Metals Inc announced that it is going to invest $28 million for the construction of a magnetite processing plant including an initial expenditure of $5.2 million for early procurement and contracting on the project.
The plant is expected to produce approximately 500,000 tonnes per year of 62% iron ore fines concentrate at the Bolivar Mine located in the Chihuahua State, Mexico.
First-quarter 2021 production results
On April 16, 2021, Sierra Metals Inc released the first quarter of 2021 production results reporting a 4.5% growth of consolidated ore throughput.
Q1 2021 production highlights
- 1% increase in silver production from Q1 2020 and it reaches 0millionounces for Q1 2021.
- 33% reduction in copper production and it remained 7.9 million pounds in Q1 2021.
- 1% decrease in lead production from Q1 2020 and it remained 9.0 million pounds.
- 11% less Zinc production from Q1 2020 and it remained 24.1 million pounds.
- 28% reduction in gold production from Q1 2020 and it remained 2,636 ounces.
- an 18% decrease in Copper equivalent production from Q1 2020 and it remained 25.5 million pounds.
- Yauricocha Mine record quarterly throughput of 3,728 TPD.
New High-Grade Oxide Zone
On April 13, 2021, Sierra Metals announced that the company has discovered high-grade oxide polymetallic ore in an area between the CachiCachi and Esperanza zones along the Yauricocha Fault and within current operations at the Yauricocha Mine.
In the Yauricocha mine, 21 holes have been completed and the company have captured oxide mineralization containing high-grade gold, silver, copper, zinc, and lead zones which indicate the continued existence of extensive mineralization.
Conclusion
Well, the recent results missed the analyst’s estimates but it still helped SMTS shares to surge in the after-market session on Monday. We have to wait and see how SMTS will perform in the coming days.
