RCKS talk

Friday, April 21, 2017 Derek Macpherson

Sierra Q1 Results Show Continued Improvements

Download Report  

Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported Q1 2017 production results from its operating mines in Peru and Mexico. The company’s quarterly production showed continued incremental operational improvements at both Yauricocha and Bolivar, offsetting a weak quarter at Cusi (Figure 1). The company remains focused on improving operations and near-mine exploration, which should help it surface the value of these assets. In our view, continued exploration success along with ongoing operational improvements at Sierra’s operating mines are key to enhancing the company’s value and liquidity. read more


Thursday, April 13, 2017 Derek Macpherson

SMT Updates Resource Estimate at Cusi

Download Report  

Sierra Metals Inc. (TSX:SMT, BVL:SMT) provided an updated resource estimate comprised of drilling completed between January 2014 and January 2017 at its Cusi mine in Mexico (Figure 1). Due to the length of time since the previous resource update (2013) as well as differences in cut-off grades, recoveries, and average metal prices, we view the estimates as incomparable. The update does not include the 15,000m drill program which began in December 2016, targeting the Santa Rosa de Lima zone. The company is focused on converting resources into the measured and indicated categories, which will be incorporated in an updated resource expected in H2 2017. As mentioned in a post earlier this week, the company is in the process of obtaining a listing on the NYSE MKT, Cusi’s resource update will also aide in furthering that process. Sierra continues to achieve exploration success and deliver improvements at its operating mines, as this progress continues in addition to obtaining a US listing, we believe the progress should enhance the company’s value and improve the liquidity of the stock. read more


Wednesday, April 12, 2017 Derek Macpherson

SMT Updates Resource & Reserve Estimates at Bolivar

Download Report  

Sierra Metals Inc. (TSX:SMT, BVL:SMT) announced an updated resource and reserve estimate at its Bolivar Mine in Mexico (Figure 1). The update includes drilling completed between January 2013 and September 2016, and does not include the current ~20,000m of expansion drilling underway at the mine. Results from the successful program are to be incorporated in an update expected in H2 2017. In our view, this resource does not compare to the previous one (2012) because of metal prices changes, process changes at Bolivar and production from the mine. However, as the company is focused on obtaining its listing on the NYSE, expected shortly, the resource and reserve update will aide in advancing that process. As Sierra continues to deliver operational improvements and exploration success at its operating mines, as well as accomplishing a listing on the NYSE, we view these as positive steps to enhancing the company’s value and improving liquidity of the stock. read more


Tuesday, March 07, 2017 Derek Macpherson

SMT Likely to Add High Value Tonnage at Bolivar

Download Report

Sierra Metals Inc. (TSX:SMT, BVL:SMT) announced initial drill results from the La Sidra and Bolivar West zones at its Bolivar mine in Mexico. In our view, the good results from the brownfield exploration program suggest the company is likely to deliver on its objective to add high value tonnes and extend mine life at Bolivar. Drilling continues to imply the existence of high grade Au-Ag mineralization at La Sidra. The zone currently extends over 500m along strike and to a depth of 300m while remaining open 2.5km NE-SW along strike and down dip. Results from Bolivar West similarly returned a weighted average grade above the resource grade. Sierra plans to follow-up on strong anomaly zones detected during a recent IP survey at Bolivar West and Bolivar Northwest. In our view, continued exploration success along with ongoing operational improvements at Sierra’s Yauricocha and Bolivar mines is key to enhancing the company’s value and positioning to bring about the necessary capital structure changes needed. read more


Monday, February 27, 2017 Derek Macpherson

SMT Makes High Grade Discovery at Cusi

Download Report

Sierra Metals Inc. (TSX:SMT, BVL:SMT) announced the discovery of a new high grade silver zone within the Santa Rosa de Lima structure at its Cusi mine in Mexico. Given the significantly higher average grade of today’s results over Cusi’s resource grade, we believe this discovery could materially improve this mine’s economics in the same way the discovery of the Esperanza zone was for Sierra’s Yauricocha mine in Peru. We expect this discovery to add value to the Cusi asset and potentially positively impact the mine’s cash flow in the near term. However, in light of that Cusi only contributed 6% of Sierra’s consolidated Q4 2016 AgEq production, the impact of this discovery on Sierra’s overall cash flow is likely to be limited. However, this discovery may allow Sierra to monetize this asset. We continue to expect that Sierra’s performance in 2017 is going to be underpinned by operational improvements at Yauricocha, which in our view is key to enhancing the company’s value and positioning to bring about the necessary capital structure changes. read more


Wednesday, February 15, 2017 Derek Macpherson

SMT Reports Q4 Cost Improvements at Yauricocha

Download Report  

Sierra Metals Inc. (TSX:SMT, BVL:SMT) reported Q4 and full-year 2016 financial results from its Yauricocha mine in Peru (Sociedad Minera Corona – 81.8% owned subsidiary) which continues to demonstrate the benefits of the optimization program and improving grades. As the result of a planned shutdown, costs were modestly higher versus Q3 2016, with cash costs coming in ~11% higher and all-in sustaining costs (AISC) up ~6%. However, costs were substantially improved over Q4 2015, as cash costs were 23% lower and AISC were 25% lower; highlighting the operational and grade improvements Sierra has delivered in 2016. We view the results positively as continued operating execution along with exploration success at Yauricocha is key to enhancing the company’s value and positioning to bring about the necessary capital structure changes needed. read more


Wednesday, January 18, 2017 Derek Macpherson

Sierra Reports a Solid Q4

Download Report

Sierra Metals Inc. (TSX:SMT,BVL:SMT) reported Q4 and 2016 production results that were highlighted by record consolidated throughput and the company’s second highest level of annual metal production to date. At 79.1M lb CuEq, Sierra’s annual production increased by 4% YoY and reached the higher end of the company’s 2016 guidance (69.1-85.3M lb CuEq). The company’s Q4 production was flat QoQ but increased by 31% YoY (Figure 1). Of note, Yauricocha’s quarterly production increased by 1% QoQ, although a planned shutdown took place at the mine during Q4. Bolivar benefited from record annual throughput in 2016 which increased by 14% YoY but the mine’s annual production, which increased by only 4% YoY, was impacted by declines in grades and recoveries. In addition, the company released its 2017 production and cost guidance with an expected increase of 25-45% over 2016 production. In our view, it is likely that Sierra is posed for a strong 2017 on the back of operational improvements at Yauricocha and continued exploration success at the mine’s Esperanza zone. We expect Sierra’s operational execution to bring about the capital structure changes needed to improve the stock’s liquidity, which in our view, has the potential to positively benefit the company’s share price.  read more


Monday, January 16, 2017 Derek Macpherson

SMT Advances Spin-off of Northern Peru Assets

Download Report

Sierra Metals Inc (TSX:SMT, BVL:SMT) announced the filing of a preliminary prospectus as part of the previously announced spin-off of its northern Peru exploration assets. Sierra intends to spin out its 320 km2 Las Lomas property in Peru by distributing shares of its newly formed Peruvian subsidiary, Cautivo Mining Inc., to existing shareholders. To adjust its share capital in accordance with the impact of the transaction, the company intends to reduce Sierra shares by an amount equal to the fair market value of the Cautivo shares distributed. While conditions of the transaction have not been finalized we view the spin-off positively as besides reducing holding costs, this could provide Sierra shareholders with the potential to obtain value for this non-core asset. Coupled with the continued exploration success at the Esperanza zone and operational improvements at its Yauricocha mine in Peru, the transaction could contribute to Sierra’s efforts in bringing about the capital structure changes needed to improve the stock’s liquidity, which we believe has the potential to positively benefit Sierra’s share price.  read more


SUBSCRIBE TO HEAR FROM US

Gain access to exclusive mining industry research reports as well as additional mining industry information, promotional materials, press releases and news.

RCKS Talk Daily Analysis
RCKS News
LATEST POST
CATEGORIES
RELATED TAGS
ARCHIVES

 

RISK WARNING:

Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer (EMD) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and Yukon.

 

By accessing this website you agree to be bound by our Terms of Use and Privacy Policy.

 

Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. For example, in Canada, according to National Instrument 45-106, Prospectus and Registration Exemptions. Similar laws and regulations apply in other jurisdictions. Companies presented on this website are considered to be highly speculative and, as such, are suitable only for purchasers who can tolerate the highest level of risk including the loss of their entire investment.

© Copyright 2017 Red Cloud Klondike Strike Inc. All rights reserved.