Sierra Metals Stock Price, News & Analysis

Sierra Metals (SMTSF) reminds shareholders of the May 23, 2025 deadline to tender shares to Alpayana's all-cash offer of $1.15 per share. As of May 19, 2025, Alpayana has secured approximately 86.7% of Sierra's outstanding shares, representing 187,318,324 shares. Despite Sierra's attempts to negotiate, Alpayana has refused to confirm whether it will pursue a second-step transaction to acquire 100% of shares at the offer price. The company warns that shareholders who don't tender their shares by the deadline risk becoming minority shareholders with limited influence and potentially reduced stock liquidity, as Alpayana would maintain controlling interest in the company.

Sierra Metals (SMTSF) reported strong Q1 2025 financial results with significant year-over-year improvements. Revenue increased 36% to $86.1 million compared to Q1 2024, while Adjusted EBITDA surged 114% to $33.9 million. Operating cash flows before working capital changes reached $31.7 million, up 122% from Q1 2024. The company saw higher production across key metals, with copper production up 14% year-over-year. Cash and cash equivalents stood at $22.4 million as of March 31, 2025. The improved performance was driven by increased metal production at Yauricocha mine and higher metal prices. Net income attributable to shareholders reached $7.9 million, compared to a loss of $389,000 in Q1 2024.

Sierra Metals (SMTSF) has announced its Board's decision to make NO RECOMMENDATION regarding Alpayana's revised takeover offer of C$1.15 per share, increased from C$1.11. The revised offer represents a 49% premium to the December 13, 2024 closing price and a 35% increase from the original C$0.85 offer. While BMO's fairness opinion considers the offer fair, the Board highlights several concerns, including extensive conditionality and unsatisfiable conditions. The offer includes conditions regarding shareholder rights plans, compensation arrangements, and share issuances that Alpayana knows cannot be met. Despite these issues, the Board acknowledges the offer provides 100% cash consideration and immediate liquidity. The offer expires on May 12, 2025, unless extended.

Sierra Metals (SMTSF) has received an amended takeover bid from Alpayana S.A.C., which increased its offer price from C$1.11 to C$1.15 per common share. The revised bid extends the expiry time to May 12, 2025. Sierra's board of directors is currently reviewing the Notice of Variation and plans to provide recommendations to shareholders in the coming days. The board notes that the takeover bid remains subject to numerous conditions that are at Alpayana's sole discretion, without materiality thresholds or reasonableness standards.

Sierra Metals (TSX: SMT | OTCQX: SMTSF | BVL: SMT) has announced its plans to release its Q4 2024 and fiscal year 2024 financial and operating results on March 26, 2025, after market hours. The company will host a conference call and webcast to discuss these results on March 27, 2025 at 11:00 am (Eastern). The presentation will be available in both English and Spanish versions, with toll-free access for Canada/US participants at 1-844-763-8274 and international dial-in at +1-647-484-8814.

Sierra Metals has announced that its Peruvian subsidiary, Sociedad Minera Corona, has filed its unaudited Financial Statements and Management's Discussion and Analysis (MD&A) for Q1 2025 at the Lima Stock Exchange (BVL). Sierra Metals holds an 81.84% interest in Corona.

The company operates as a Canadian mining enterprise with a primary focus on copper production, along with additional base and precious metals by-product credits at two main locations:

• Yauricocha Mine in Peru
• Bolivar Mine in Mexico

Sierra Metals aims to safely increase production volume and expand mineral resources. The company reports several new key discoveries and maintains multiple brownfield exploration opportunities near existing mines in both Peru and Mexico. Their extensive land packages at each mine site offer prospective regional targets for long-term exploration potential and mineral resource growth.

Sierra Metals (TSX: SMT | OTCQX: SMTSF) has announced reaching an agreement in principle with Alpayana for an all-cash, board-supported take-over bid. Under the agreement, Alpayana Canada will offer to acquire all common shares of Sierra Metals for CDN $1.15 per share.

The parties expect to finalize the Support Agreement by April 30, 2025. The bid has received unanimous support from Sierra Metals' Board of Directors and Special Committee of independent directors. BMO Capital Markets has provided a fairness opinion confirming the financial fairness of the consideration for shareholders as of April 22, 2025.

All directors and officers of Sierra Metals will enter into lock-up agreements to tender their shares. The offer expiry has been extended to May 12, 2025, at 5:00 p.m. (Toronto time) to allow shareholders sufficient time to tender their shares.

Sierra Metals (SMTSF) reported strong Q1 2025 production results, with consolidated ore throughput increasing 18% year-over-year to 752,771 tonnes. Copper production rose 14% to 12,783,000 pounds, driven by significant improvements at both Yauricocha and Bolivar mines.

The Yauricocha mine in Peru saw a 37% increase in throughput to 329,363 tonnes, with copper output more than doubling and gold production nearly tripling year-over-year. The mine reported higher head grades for copper, silver, and gold, while zinc and lead grades declined.

The Bolivar mine in Mexico processed 423,408 tonnes, up 6% from Q1 2024. However, production declined across all metals due to lower head grades, with copper down 25%, silver down 6%, and gold down 35% year-over-year. The company will release its Q1 2025 financial results on May 14, 2025.

Sierra Metals (TSX: SMT | OTCQX: SMTSF) has reiterated its recommendation for shareholders to reject Alpayana's amended hostile takeover bid. The revised offer increases from C$0.85 to C$1.11 per Common Share, with an extended expiry date to April 25, 2025.

Alpayana has waived its previous condition requiring 66⅔% of shares to be tendered, suggesting lower-than-expected shareholder interest. BMO Capital Markets has delivered an opinion confirming the revised offer price remains financially inadequate for shareholders.

The company strongly defends its 2025 EBITDA guidance of approximately US$130 million, representing 75% year-over-year growth. Sierra Metals disputes Alpayana's claims about potential dilutive financing, citing improved balance sheet and increased cash generation prospects. None of Sierra Metals' directors or officers intend to tender their shares to the hostile bid.