Welcome to our dedicated page for Sierra Metals news (Ticker: SMTSF), a resource for investors and traders seeking the latest updates and insights on Sierra Metals stock.
Sierra Metals Inc. is a premier Latin American precious and base metals producer. The company owns and operates three mines in commercial production: the Yauricocha mine in Peru, the Bolivar and Cusi mines in Mexico. In 2011, Sierra Metals acquired 82% of Sociedad Minera Corona S.A., dramatically transforming its production profile and establishing it as a mid-tier producer. The completion of the Piedras Verdes mill in Mexico and the announcement of commercial production at the Bolivar mine further solidified Sierra Metals' position in the industry.
Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF) announced that its Peruvian subsidiary, Sociedad Minera Corona, has filed its unaudited Financial Statements and Management's Discussion and Analysis for Q4 2024 at the Lima Stock Exchange. Sierra Metals holds an 81.84% interest in Corona.
The company operates primarily as a copper producer with additional base and precious metals by-product credits at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. Sierra Metals is focused on increasing production volume and growing mineral resources, with several new key discoveries and brownfield exploration opportunities near existing mines. The company maintains large land packages at both mining sites with multiple prospective regional targets for long-term exploration and mineral resource growth potential.
Sierra Metals (TSX: SMT | OTCQX: SMTSF) announced that the Toronto Stock Exchange (TSX) has deferred its review of the company's shareholder rights plan dated December 30, 2024. The TSX will consider accepting the Rights Plan once it's satisfied that securities regulatory authorities won't intervene and shareholders ratify the plan by June 30, 2025.
The Rights Plan, which remains operative despite the TSX deferral, was implemented in response to an unsolicited take-over bid (Hostile Bid) by Alpayana S.A.C. for all Sierra common shares. The plan will stay effective for at least six months from its December 30, 2024 adoption date, unless terminated earlier.
Sierra Metals (SMTSF) has announced promising drill results from its Bolivar Mine in Mexico, specifically from the Marian Zone. The drilling program revealed copper grades higher than current Measured & Indicated Mineral Resources, with potential to extend the mineralized body by approximately 300 meters along strike and 600 meters vertically.
Notable drill intercepts include grades up to 2.45% copper, with varying gold, silver, and zinc content. The Marian Zone is characterized as a mineralized ore body trending northeast-southwest with a 67° southeast dip, located northwest of the Cieneguita Manto Zone. The mineralization width varies between 9 and 26.4 meters.
Additional drilling is planned for 2025 to further extend the Marian Zone to the northeast and at depth. The company views these results as part of their strategic exploration efforts to replace and grow mineral resources at Bolivar.
Sierra Metals (SMTSF) reported strong Q4 and full-year 2024 production results, exceeding annual guidance for copper, silver, gold, and zinc, while meeting lead production targets. The company achieved record Q4 throughput of 797,774 tonnes, an 18% increase from Q4 2023.
The Yauricocha mine in Peru reached record throughput rates of 3,945 tonnes per day in Q4, 31% higher than Q4 2023, primarily due to increased access below the 1120 level. The Bolivar mine in Mexico processed 5,173 tonnes per day in Q4, operating 3% above nameplate capacity.
For 2025, Sierra Metals expects increased production at Yauricocha, focusing on mining below the 1120 level and a newly discovered high-grade zone. The company anticipates maintaining throughput rates beyond the permitted capacity of 3,600 tpd at Yauricocha, while Bolivar aims to continue operating above its 5,000 tpd nameplate capacity.
Sierra Metals (SMTSF) Board of Directors has unanimously rejected Alpayana's unsolicited all-cash takeover bid of C$0.85 per share, deeming it inadequate and undervalued. The Board highlighted that shareholders representing over 50% of outstanding shares have already indicated they won't support the hostile bid.
The company projects significant growth with EBITDA expected to reach US$130 million in 2025, representing an 80% increase from 2024's expected US$72 million and a 158% rise from 2023's US$50 million. This growth is driven by increased production at both Yauricocha and Bolivar mines.
The Board emphasizes that the hostile bid fails to recognize Sierra's strategic value as a copper producer in proven mining jurisdictions, with the company's anticipated net debt/2025E EBITDA ratio of 0.6x below the industry median of 0.8x. BMO Capital Markets has provided an opinion stating the bid is financially inadequate for shareholders.
Sierra Metals (TSX: SMT | OTCQX: SMTSF | BVL: SMT) has implemented a shareholder rights plan effective December 30, 2024. The plan aims to ensure fair treatment of shareholders during take-over bids and protect against 'creeping bids' for outstanding common shares. Under the plan, rights holders can purchase additional common shares at a 50% discount to market price if rights become exercisable. One right is attached to each existing common share. The plan requires shareholder ratification and Toronto Stock Exchange approval at a special meeting before June 30, 2025, or it will be terminated.
Sierra Metals (SMTSF) announced that a majority of shareholders have rejected Alpayana's unsolicited take-over bid of C$0.85 per share, considering it inadequate. Shareholders holding over 50% of outstanding common shares have informed the company they won't support the bid. CEO Ernesto Balarezo emphasized shareholders' recognition of the company's substantial progress over the past two years and potential for further value enhancement.
The company has engaged BMO Capital Markets as financial advisor, Mintz LLP as legal counsel, and Carson Proxy Advisors for communications. A special committee of independent directors has retained Bennett Jones as legal advisor. Sierra Metals advises shareholders to take no action while it reviews strategic options.
Sierra Metals (TSX: SMT | OTCQX: SMTSF) has acknowledged a press release from Alpayana S.A.C. announcing its intention to launch an unsolicited all-cash takeover bid for all outstanding Sierra Metals shares. The company notes that no formal written offer has been received, and there's no assurance an offer will be made. The Board has formed a Special Committee of independent directors to evaluate the announcement. The indicated price of C$0.85 per share represents a 10.4% premium, which the Board considers very low and opportunistic given Sierra's asset quality and growth plans. Shareholders are advised to take no action at this time.
Sierra Metals (SMTSF) announces a special meeting of shareholders on January 31, 2025, to seek approval for a share consolidation at a ratio of up to 1:20. The Board believes this consolidation will enhance share marketability and attract broader investor interest. Over the past 24 months, the company has achieved significant operational improvements, including:
- Increased Yauricocha Mine throughput to 3,600 tonnes per day (30% increase)
- Expanded Bolivar Mine capacity to 5,000 tonnes per day with plans for 50% increase
- Updated NI 43-101 compliant mineral reserves
- Divested Cusi Mine for US$2.5 million plus 2% net smelter royalty
- Refinanced long-term debt and completed equity private placement
- Strengthened leadership with new CEO, CFO, and board members
Sierra Metals has released its 2025 production and cost guidance for its Yauricocha (Peru) and Bolivar (Mexico) underground mines. The company expects to operate at full capacity at both locations, with Yauricocha reaching full capacity levels enabling higher throughput rates. Production guidance for 2025 includes: 44,600-48,500 thousand pounds of copper, 53,600-58,400 thousand pounds of zinc, 1,900-2,060 thousand ounces of silver, 10,200-11,100 ounces of gold, and 13,700-15,000 thousand pounds of lead.
For cost guidance, Yauricocha's cash costs are projected at $2.42-$2.59/CuEq with AISC at $2.91-$3.11/CuEq, while Bolivar's cash costs are expected at $2.64-$2.77/CuEq with AISC at $3.45-$3.62/CuEq.
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