Toronto, Ontario--(Newsfile Corp. - November 12, 2020) - Capital 10X analyzes Sierra Metals (NYSE: SMTS) (TSX: SMT) record setting Q3 2020 results, growth outlook and valuation relative to commodity peers.
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Full Sierra Metals Q3-2020 report and video: https://capital10x.com/sierra-metals-smt-smts-q3-2020/
Sierra Metals delivered record-setting production and profitability results in Q3 despite the volatile COVID-19 operational environment.
- Record quarterly production of 35.2 million pounds of copper equivalent production (up +9% y/y)
- Record EBITDA of $37.2 million (up +73% y/y)
- Cash costs falling -23% year-over-year to $0.92/lb (copper eq. pounds)
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The company's long-term production outlook is also very encouraging, they are planning to increase tonnages mined per day (TPD) to 17,900 by 2024-2026.
Management's production outlook represents an impressive 14% compound annual growth rate (CAGR) over the next 5 years, placing Sierra Metals as one of the highest growth copper mining companies in the world.
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Sierra trades at a 60% discount to its copper peers, a 90% discount to silver peers and deep 86% discount to the gold miner peer group.
The top 10 holdings of the Global X Copper Miners ETF trade at 2.4x forward price-to-sales, the top 10 holdings of the Global X Silver Miners ETF trade at 7.7x forward price-to-sales and the top 10 holdings of the VanEck Vectors Gold Miners ETF trade at 7.7x forward price-to-sales.
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Duane Hope, Partner
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/68097