Most recently, the shares of Sierra Metals (SMTS) have been among the best-performing resource plays, returning 25.8% since July 12, 2019. Compared to a few popular precious metals or copper ETFs, as GDXJ or COPX (returning 7.7% and 0.0%, respectively), the recent price jump looks very impressive. What happened? In this article I am trying to answer this question.
Introduction
Sierra Metals is a base metals producer, operating three mines in Peru and Mexico. The Peruvian Yauricocha mine is a flagship operation delivering approximately 160 million pounds of zinc equivalent in annual production.