Sierra Metals (NYSE:SMTS, TSX:SMT) announced today that the company has commenced a process to explore and evaluate potential strategic alternatives to maximize shareholder value. The company has engaged CIBC World Markets to assist the Board of Directors in its review of strategic alternatives.
As per the press release the strategic alternatives to maximize shareholder value could include:
- Sale of part or all of the company
- Sale of some of the assets of the company
- Merger or other business combination with another party, or other strategic transactions.
The strategic evaluation has the full support of its largest shareholder, Arias Resourced Capital, which owns 52.25% of shares outstanding (source: Bloomberg).
Capital 10X believes there is real tangible value to be unlocked from Sierra Metal’s strategic review process as the company trades at a material discount relative to all its commodity peers (see relative multiples below).
Sierra Metals is a market awareness client of Capital 10X.
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