H.C. Wainwright Remains a Buy on Sierra Metals Inc

By Ryan Adsit

H.C. Wainwright analyst Heiko Ihle maintained a Buy rating on Sierra Metals Inc (NYSE MKT: SMTS) today and set a price target of $4.25. The company’s shares closed yesterday at $2.76.

Ihle observed:

“We note that these results are in addition to ongoing and expected drilling at Sidra area. Reserve growth contributes to an extended mine life. Proven and Probable (P&P) Reserve tonnage grew by a total of 83% over the firm’s prior estimate when compared with September 30, 2016. We note that higher tonnage contributed to increases in contained silver (141%), gold (43%), and copper (85%) reserves, respectively. P&P Reserves totaled 7.9M tonnes, containing 4.8M ounces of silver, 63,000 ounces of gold, and 67,925 tonnes of copper. The firm estimates that the mine life at Bolívar has been extended to more than seven years based on current production rates, which we note is in-line with our current estimate of ~7 years.”

According to TipRanks.com, Ihle is a 4-star analyst with an average return of 9.5% and a 48.3% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Americas Silver Corporation, and Northern Dynasty Minerals.

Currently, the analyst consensus on Sierra Metals Inc is Strong Buy and the average price target is $4.33, representing a 56.9% upside.

In a report issued on May 10, Noble Financial also maintained a Buy rating on the stock.

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The company has a one-year high of $3.10 and a one-year low of $2.13. Currently, Sierra Metals Inc has an average volume of 52.12K.

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Sierra Metals, Inc. engages in the production, exploration, and development of precious and base metals. It operates through the Peru and Mexico geographical segments. The Peru segment consists of Yauricocha Mine. The Mexico segment conssits of Bolivar and Cusi Mines. The company was founded on April 11, 1996 and is headquartered in Toronto, Canada.