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Sierra Metals Inc SMTSF


Primary Symbol: T.SMT

Sierra Metals Inc. is a Canadian mining company focused on copper production with additional base and precious metals by-product credits at its Yauricocha Mine in Peru and Bolivar Mine in Mexico. Yauricocha is an underground mine located in the western central Peru in the Yauyos province, approximately 12 kilometers (km) west of the Continental Divide. The Yauricocha property covers 18,778 hectares that straddle a 20 km strike length over the prolific Yauricocha fault, a major ore controlling structure in this part of western central Peru. The Bolivar Mine is a contiguous portion of the 15,217-hectare Bolivar Property land package within the municipality of Urique, in the Piedras Verdes mining district of Chihuahua State, Mexico. The Piedras Verdes Plant, which is located six km from the Bolivar Mine. The Company has large land packages at each of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.


TSX:SMT - Post by User

Comment by BrokeStoker44on Jan 25, 2023 9:24am
247 Views
Post# 35244760

RE:What is driving this blast to higher levels?

RE:What is driving this blast to higher levels?I've been following this stock for a few years. I think it's a combination of things: (1) the most obvious, the drastic increase in metal prices, particularly their top two copper and zinc; (2) the higher metal prices are improving their chances of avoiding bankruptcy... if you haven't been following they announced liquidity issues back in October due to a bunch of operational issues; (3) the more time that passes with high metal prices and no bankruptcy announcements, the more time they have to get operations back to normal; and (4) the more time that passes without them announcing bankruptcy, the more probable they were able to make their next interest payment which I estimate was due in January. For the last reason in particular I think we'll continue to see an uptick through January. If they do survive without making any major moves, the current share price is a true bargain. I think people are just starting to see the risk-reward potential here. As risk reduces, the price increases. Pretty basic stuff.
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