Sierra Metals Inc - SMTSF stock
| OTC Tier: OTCQX | Related ticker symbols: TSX: SMT
About[edit]
Sierra Metals Inc. and its subsidiaries are dedicated to the production, exploration, and development of precious and base metals in Peru and Mexico, with a primary focus on silver, copper, lead, zinc, and gold deposits. Their key asset is the Yauricocha Mine, a polymetallic property covering 18,778 hectares in the Yauyos province of Peru, in which they hold an 81.84% ownership stake. The company, previously known as Dia Bras Exploration Inc., underwent a name change to Sierra Metals Inc. in December 2012 and was established in 1996, headquartered in Oakville, Canada.[1]
History[edit]
Sierra Metals Inc. has its roots in the exploration and mining activities of Dia Bras Exploration Inc., a company that was founded in 1996. Dia Bras Exploration Inc. was focused on the exploration and development of mineral properties, particularly in Mexico and Peru. Over the years, Dia Bras Exploration Inc. acquired and developed several mining projects, primarily targeting precious and base metals like silver, copper, lead, zinc, and gold. One of its key assets was the Yauricocha Mine in Peru, a polymetallic deposit with significant potential.[2]
In December 2012, Dia Bras Exploration Inc. underwent a significant change and rebranding. The company changed its name to Sierra Metals Inc., marking a new phase in its corporate identity and signaling its commitment to expanding its presence in the mining industry.[2]
The name "Sierra Metals" reflects the company's focus on mining activities in mountainous regions, as "Sierra" translates to "mountain range" in Spanish. The new name represented the company's vision to continue exploring and developing mineral deposits in the rugged terrains of Peru and Mexico. Since its rebranding as Sierra Metals Inc., the company has continued its exploration and production activities, further developing its flagship Yauricocha Mine in Peru and other mining projects in Mexico. It has expanded its operations and contributed to the mining industry's growth in the regions where it operates.[3]
Takeover Attempt[edit]
The Board of Directors has unanimously rejected an unsolicited all-cash takeover bid of C$0.85 per share from Alpayana S.A.C..[4] Shareholders holding more than 50% of the company’s common shares had also indicated they would not support the bid.[5]
Projects[edit]
Yauricocha Mine[edit]
The Yauricocha Mine is a polymetallic underground mine located in Yauyos Province, Lima, Peru, at an altitude of approximately 4,600 meters above sea level. Operated by Sierra Metals Inc., a Canadian mining company, it has been in continuous operation since 1948, making it a cornerstone of the region’s mining history with over 75 years of production. The mine is known for its rich deposits of copper, lead, zinc, silver, and gold, with copper being the primary focus alongside valuable by-product metals. Location and Scale: Situated 64 km southwest of Jauja, Peru, the Yauricocha property spans 18,778 hectares along the prolific Yauricocha fault, a major ore-controlling structure. The mine operates underground and is a flagship asset for Sierra Metals, acquired in 2011.[6]
Bolivar Mine[edit]
The Bolívar Mine is an underground copper mine operated by Sierra Metals Inc., a Canadian mining company, located in the Piedras Verdes mining district of Chihuahua, Mexico, approximately 6 km from the Piedras Verdes processing plant. The mine, which began commercial production in 2012, is a key asset in Sierra Metals’ portfolio, focusing primarily on copper with by-products of silver and gold. It spans 152 square kilometers across 12 mining concessions within the Sierra Madre precious metals belt, a region known for its copper skarn deposits. Situated in Chihuahua, Mexico, the Bolívar Mine is supported by the Piedras Verdes mill, which processes ore using a flotation circuit. The plant’s capacity has grown from 1,000 tonnes per day (tpd) in 2012 to 3,600 tpd by 2019, with expansions enabling a current capacity of 5,000 tpd. In 2024, the mine achieved near-capacity production, processing 409,999 tonnes in Q4 2023, a 13% increase from the prior quarter.[7]
Divestiture[edit]
Cusi Mine[edit]
Sierra completed the sale of the Cusi Mine in Mexico to Minera San Bernabé, a subsidiary of Silverco Mining Corp., for $2.5 million in cash and a 2.0% net smelter royalty. SMC retains the right to purchase half of the royalty for $5 million.[8]
- ↑ Yahoo Finance. SMTSF Stock Profile. Retrieved on 9/6/2023.
- ↑ 2.0 2.1 sierrametals.com. About Sierra. Retrieved on 9/6/2023.
- ↑ SEC.gov. Independent Technical Report for the Cusi Mine, Chihuahua State, Mexico. November 13, 2020.
- ↑ Business Wire. Sierra Metals Board of Directors Rejects Alpayana’s Hostile Bid; Hostile Bid’s Inadequate Offer Price Fails to Recognize Sierra Metals’ Value and Growth Potential. January 14, 2025.
- ↑ Business Wire. Sierra Metals Announces Majority of Shareholders Reject Proposed Take-over Bid from Alpayana as Inadequate. December 26, 2024.
- ↑ sierrametals.com. Yauricocha Mine. Accessed on 5/12/2025. Archive link.
- ↑ Sierrametals.com. Bolivar Mine. Accessed on 5/12/2025. Archive link.
- ↑ Business Wire. Sierra Metals Completes the Sale of the Cusi Mine. July 19, 2024.
