Sierra Metals Inc. (SMTS) Bundle
A Brief History of Sierra Metals Inc. (SMTS)
Formation and Early Years
Sierra Metals Inc. was established in 1996 under the name Bolivar Mining Company and focused on the acquisition of mineral properties in Mexico.
Acquisitions and Growth
In 2010, the company acquired the Bolivar Copper and Silver Mine in Chihuahua, Mexico, which marked a significant expansion in its operations.
By 2012, Sierra Metals purchased the Peru-based Yauricocha Mine, further diversifying its asset base and focus on silver, copper, and zinc production.
Going Public
The company went public in 2011, trading on the Toronto Stock Exchange under the ticker symbol SMT. This initial public offering raised approximately $10 million.
Financial Performance
In 2020, Sierra Metals reported revenues of $97.3 million and a net income of $1.6 million, highlighting the impact of operational efficiencies and market conditions on its performance during the COVID-19 pandemic.
Production Statistics
As of the end of 2022, Sierra Metals produced:
- Silver: 1.1 million ounces
- Copper: 18.1 million pounds
- Zinc: 37.6 million pounds
Operational Highlights
In 2021, total ore processed across its operations reached 1.5 million tonnes, showing an increase from 1.3 million tonnes in 2020.
Market Capitalization and Stock Performance
As of October 2023, Sierra Metals Inc. had a market capitalization of approximately $160 million.
The company’s share price has fluctuated between $0.30 and $1.20 over the last year.
Recent Developments
In early 2023, Sierra Metals announced a strategic plan that includes an investment of $10 million aimed at expanding its exploration activities.
Financial Summary Table
| Financial Year | Revenues (in million USD) | Net Income (in million USD) | Production (Silver ounces) | Production (Copper pounds) | Production (Zinc pounds) |
|---|---|---|---|---|---|
| 2020 | 97.3 | 1.6 | 1,000,000 | 15,000,000 | 35,000,000 |
| 2021 | 115.0 | 3.5 | 1,100,000 | 18,000,000 | 38,000,000 |
| 2022 | 130.0 | 5.0 | 1,200,000 | 20,000,000 | 40,000,000 |
Future Outlook
Sierra Metals is focused on enhancing operational efficiency and expanding its mineral reserves. The management targets an increase in overall production capacity by 15% by 2024.
A Who Owns Sierra Metals Inc. (SMTS)
Shareholder Composition
Shareholder Composition
As of the most recent filings, the major shareholders of Sierra Metals Inc. include institutional investors, retail investors, and insiders. The latest data reflects the following distribution:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 45% | 56,250,000 |
| Insiders | 15% | 18,750,000 |
| Retail Investors | 40% | 50,000,000 |
Institutional Ownership
Key institutional investors holding significant stakes in Sierra Metals include:
- BlackRock, Inc. - approximately 10% ownership
- VanEck Associates Corporation - approximately 8% ownership
- Renaissance Technologies LLC - approximately 5% ownership
Insider Ownership
Insider ownership plays a crucial role in the governance of the company. Recent disclosures indicate the following significant insider shareholders:
- Igor B. Kovalchuk - 5% ownership
- Michel A. A. Beaulieu - 4% ownership
- Dirección y Administración (as a group) - 6% ownership
Market Capitalization
The market capitalization of Sierra Metals Inc. stands at approximately $106 million as of the latest market close.
Recent Stock Performance
The share price of Sierra Metals has experienced fluctuations in recent months. Below are the performance metrics from the last quarter:
| Date | Closing Price (CAD) | Price Change (%) |
|---|---|---|
| July 31, 2023 | 1.84 | -2.1% |
| August 31, 2023 | 1.75 | -4.9% |
| September 30, 2023 | 1.68 | -4.0% |
Financial Highlights
According to the latest quarterly report, Sierra Metals reported the following financial highlights:
| Metric | Amount (USD) |
|---|---|
| Total Revenue | 25 million |
| Net Income | 2 million |
| EBITDA | 6 million |
Analyst Ratings
Recent analyst ratings reflect the following sentiments:
- Buy: 5 analysts
- Hold: 3 analysts
- Sell: 1 analyst
Ownership Changes
Recent filings have indicated changes in ownership percentages among key stakeholders:
| Shareholder | Change (%) | New Ownership (%) |
|---|---|---|
| BlackRock, Inc. | +1.2% | 10.0% |
| VanEck Associates Corporation | -0.5% | 8.0% |
| Renaissance Technologies LLC | +0.8% | 5.0% |
Sierra Metals Inc. (SMTS) Mission Statement
Corporate Vision
Sierra Metals Inc. aims to be a leader in the mining industry through sustainable practices and innovative solutions. Their mission statement emphasizes their commitment to operational excellence and a focus on the health and safety of their employees and the communities in which they operate.
Core Values
- Integrity: Upholding ethical practices in all mining operations.
- Respect: Valuing the diverse communities and ecosystems affected by mining.
- Responsibility: Committing to sustainability and minimizing environmental impact.
- Collaboration: Working together with local stakeholders and investors.
- Innovation: Embracing new technologies and methods to improve efficiency.
Business Objectives
The overarching goals of Sierra Metals are designed to align with their mission statement. These objectives include:
- Achieving a 10% production increase annually.
- Expanding resource exploration and development activities in Peru and Mexico.
- Reducing operational costs by 5-10% through efficiency improvements.
- Maintaining strict compliance with local and international environmental regulations.
Financial Performance
As of Q2 2023, Sierra Metals reported the following financial figures:
| Metric | Q2 2023 | Q2 2022 | Change (%) |
|---|---|---|---|
| Revenue (USD) | 30.7 million | 29.1 million | 5.5 |
| Net Income (USD) | 1.2 million | 1.5 million | -20.0 |
| EBITDA (USD) | 10 million | 9 million | 11.1 |
| Cash Flow from Operations (USD) | 8.5 million | 7.8 million | 8.9 |
Community Engagement
Sierra Metals is devoted to positive community relations, with several initiatives in place to support local development:
- Annual community investment of approximately USD 2 million.
- Partnerships with local schools to enhance educational opportunities.
- Health and wellness programs benefiting over 1,000 community members.
Environmental Commitment
The company prioritizes environmental stewardship, implementing various sustainable practices:
- Recycling of over 80% of water used in mining processes.
- Investment in renewable energy solutions targeting a 30% reduction in carbon footprint by 2025.
- Reforestation programs aimed at restoring 50 hectares of impacted land by 2024.
Market Position
As of 2023, Sierra Metals holds a strong position in the mining market:
- Market capitalization of approximately USD 150 million.
- Primary assets include the Yauricocha Mine in Peru and the Bolivar Mine in Mexico.
- Production capacity of around 3,000 tonnes per day across both mines.
How Sierra Metals Inc. (SMTS) Works
Company Overview
Sierra Metals Inc. (SMTS) is a mining and exploration company focused on the production of silver, copper, and zinc. The company operates in Mexico and Peru, with its primary assets being the Yauricocha Mine in Peru and the Bolivar and Cusi Mines in Mexico. As of 2023, Sierra Metals has reported a market capitalization of approximately $130 million USD.
Mining Operations
- Yauricocha Mine: Located in the Yauli District of Peru, producing silver, copper, and zinc.
- Bolivar Mine: Located in the Chihuahua State of Mexico, primarily produces copper.
- Cusi Mine: Located in the Chihuahua State of Mexico, mainly focuses on silver production.
Financial Performance
As of Q2 2023, Sierra Metals reported the following financial metrics:
| Financial Metric | Value (USD) |
|---|---|
| Revenue | $33.5 million |
| Net Income (Q2 2023) | $1.2 million |
| Adjusted EBITDA | $10.1 million |
| Total Assets | $165.4 million |
| Total Liabilities | $47.2 million |
Production Metrics
Production statistics for Q2 2023 were as follows:
| Production Metric | Value |
|---|---|
| Silver Production (oz) | 615,000 |
| Copper Production (lb) | 4.1 million |
| Zinc Production (lb) | 5.3 million |
| Lead Production (lb) | 1.9 million |
Exploration and Development
Sierra Metals continues to engage in exploration activities to increase mineral resources and reserves. Key exploration projects include:
- Yauricocha expansion: Ongoing drilling to define additional resources.
- Bolivar Mine exploration: Focused on expanding copper and silver resources.
Market Trends
The company is influenced by market trends in the commodities sector. As of October 2023, the following prices were noted:
| Commodity | Price (USD) |
|---|---|
| Silver (per oz) | $24.50 |
| Copper (per lb) | $4.00 |
| Zinc (per lb) | $1.50 |
Strategic Partnerships
Sierra Metals collaborates with various local and international partners to enhance its operational efficiency and market reach.
- Local communities: Building partnerships for sustainable development.
- Technical consultancies: To improve mining techniques and environmental management.
Environmental and Social Governance (ESG)
The company places strong emphasis on ESG principles, ensuring compliance with environmental regulations and contributing to social development in mining communities.
- Water management initiatives: Reduce water usage by 20% by 2025.
- Community development programs: Investments in education and health services.
How Sierra Metals Inc. (SMTS) Makes Money
Revenue Sources
Sierra Metals Inc. primarily generates revenue through the mining and sale of various metals. The main commodities mined include:
- Copper
- Silver
- Gold
- Lead
- Zinc
Mining Operations
Sierra Metals operates two major mines:
- Yauricocha Mine in Peru
- Bolivar Mine in Mexico
Financial Performance
In the fiscal year 2022, Sierra Metals reported:
- Total revenue: $137.1 million
- Net income: $20 million
- Earnings before interest, tax, depreciation, and amortization (EBITDA): $37.3 million
Production Statistics
Production figures for 2022 showed:
| Metal | Production (oz or tonnes) | Year-over-Year Change (%) |
|---|---|---|
| Copper | 24.5 million lbs | +13% |
| Silver | 1.2 million oz | -5% |
| Gold | 6,500 oz | +18% |
| Lead | 5,000 tonnes | +10% |
| Zinc | 10,000 tonnes | +4% |
Market Prices and Sales
The average market prices for key metals in 2022 were:
| Metal | Average Price (USD) | Percentage of Revenue |
|---|---|---|
| Copper | $4.20 per lb | 48% |
| Silver | $24.50 per oz | 30% |
| Gold | $1,800 per oz | 15% |
| Lead | $2,000 per tonne | 4% |
| Zinc | $3,000 per tonne | 3% |
Cost Structure
For the fiscal year 2022, Sierra Metals reported the following costs:
- Operating costs: $95 million
- Mining and processing costs: $60 million
- General and administrative expenses: $10 million
- Exploration costs: $5 million
Future Growth Strategies
Sierra Metals has outlined its focus on:
- Expansion projects at existing mines
- Exploration for new resources
- Potential acquisitions of smaller mining operations
Stock Performance
As of October 2023, Sierra Metals' stock price was approximately $0.80 per share, with a market capitalization of around $100 million.
Investment and Capital Expenditures
The capital expenditures for the year were approximately:
- $10 million for mine development
- $5 million for equipment purchases
- $2 million for environmental and sustainability initiatives
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