Metals Dollar Contribution to SMT Sierra produces 5 metals (See corporate presentation). Each metal's dollar contribution based on today's prices is:
% Metal $/lb Weighted $ Contribution
36 Cu 4.50 162.00
25 Ag 369.28 9,232.00
23 Zn 1.70 39.10
9 Pb 1.12 10.08
7 Au 28,696 200,872.00
While copper percentage wise is the largest volume by far and away, gold and silver are the biggest dollar contributors to Sierra.
Gold and silver move in tandem having the most influence on marginal change in Sierra revenue.
However, the base metals have been a natural hedge against the precious metal price fluxuations this year.
While gold and silver are down 5.39 and 12.07 % respectively, the base metals Cu, Zn, and Pb are up 26.63, 23.7, and 14.03 % respectively. However, gold and silver are showing new strength in a continuing metals bull market.
Gold was not down very much and the base metals offset that on the year. Gold at the end of September put in a higher low and the price is now climbing. The Relative Strength Indicator (RSI) is showing rising price momentum and now up to 59.12. This is confirmed with the Moving Average Convergence/Divergence (MACD) trending up. The slow exponential moving average has crossed above the slow exponential moving average. The price of gold moved above the 50 day moving average.
https://stockcharts.com/h-sc/ui?s=%24GOLD
In short, things are going well for Sierra. Expect good quarterly reports as Sierra is increasing production in a metal commodities bull market.