SMTS - Sierra Metals (SMTS)(SMT:CA) - BOD Concludes Review of Strategic Alternatives Authorizes Annual Dividend of $0.03 Per Share

Strategic review completed. The Board of Directors concluded its review of strategic alternatives. The company will continue to seek production growth through expansions with a focus on base metals such as copper, zinc, and iron ore and may consider joint venture, partnerships and/or divestment of certain assets, including the Cusi silver mine and/or exploration properties outside Sierra’s current operating area.Dividend announced. The Board has authorized the payment of an annual dividend comprised of a base dividend of $0.03 per share and an additional amount based on available cash flows. The initial dividend is expected to be declared in November 2021 and paid in December 2021. The dividend reflects a favorable cash flow growth outlook and the board's desire to return capital to shareholders. Based on the October 7 closing price, the dividend would provide a 1.2% yield.Board appointments. Two new directors were appointed to the board. Mr. Carlos Santa Cruz is mining engineer and independent mining consultant with over 40 years of experience in the mining industry serving in senior executive roles with publicly traded companies and serving as a director. Mr. Oscar Cabrera is a senior equity analyst with over 20 years of experience covering the metals and mining industry for several large investment banks and has served as an advisor to publicly traded mining companies.Rating is Outperform. The review reaffirmed the direction already set by Sierra’s management which includes completion of preliminary feasibility studies at all three mines. While we do not view the outcome as significantly altering the company’s path, Sierra Metals has sharpened the focus of its core exploration and production activities. Read More >>