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PI Financial has updated coverage on Sierra Metals (TSX: SMT)

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Following the release of the production results for the 4th quarter, analyst Christos Doulis reiterated his buy rating and target price of $2.20, a premium of 52% to the $1.45 price on February 3rd, the day the report was issued. Sierra Metals is a Canadian mining company focused on production of precious and base metals from its Yauricocha Mine in Peru, and its Bolivar Mine and Cusi Mine in Mexico.

Additional Information:

Company: Sierra Metals
Website: http://sierrametals.com/
Stock Symbol: TSX: SMT
Date Published: Feb 6, 2015
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch Media

PI Financial has updated coverage on Sierra Metals, symbol SMT on the Toronto Stock Exchange.

Following the release of the production results for the 4th quarter, analyst Christos Doulis reiterated his buy rating and target price of $2.20, a premium of 52% to the $1.45 price on February 3rd, the day the report was issued.Sierra Metals is a Canadian mining company focused on production of precious and base metals from its Yauricocha Mine in Peru, and its Bolivar Mine and Cusi Mine in Mexico.

The company reported the following production for the quarter:
875,000 ounces of silver
5.9 million pounds of copper
12.1 million pounds of lead
13.4 million pounds of zinc, and
2,329 ounces of gold

The silver production of 875,000 ounces in the 4th quarter was the highest in the history of the company.

The results exceeded PI Financial’s expectations with silver production at Yauricocha more than 50% higher than forecast, driven by strong grades.

Similarly, lead grade at Yauricocha in the lead oxide ore came in at 9% in the quarter versus the forecast of 7.15%

Audra Walsh, President and CEO stated: "2014 was another record year of metal production driven by organic growth in our three mines. The Company's metal production exceeded the high end of the guidance for silver, gold, lead and zinc while copper production was within the guidance range. Our Q4 2014 production of 875,400 silver ounces was the highest quarter in the history of the Company, as was the ore throughput."

As the results show, the company has a diversified revenue mix and is not based on a single commodity.

Analyst Christos Doulis stated: “We had been forecasting mild negative free cash flow of US$1 million during 2015, but after incorporating the changes to our model, we are US$2.8 million of positive free cash flow for Sierra in 2015.”

The company currently trades at $1.45, and with 160 million shares outstanding, the company is capitalized at $232 million.

For more information, please visit the company’s website www.sierrametals.com or contact Victoria Vargas
Vice President Investor Relations at 866-493-9646 or email info@sierrametals.com.

For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.

I’m Samantha Deutscher for InvestmentPitch Media
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This video is for information purposes only and it is not a recommendation to buy or sell any securities.