Sierra Metals Undertakes Strategic Review to Maximize Shareholder Value

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).

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Sierra Metals is a market awareness client of Capital 10X.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

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Capital 10X gets down to the real money business, actionable financial insights for traders and investors. We analyze company earnings, interview management teams and help teach the fundamentals of financial analysis and options trading. Our mission is to hunt for genuine 10 baggers.
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