Sierra Metals announces $30 million share buy-back, distribution plan
Polymetallic mining company Sierra Metals (TSX:SMT) said it plans to return up to $30 million to shareholders in the coming year.
The company will offer to repurchase for cancellation up to US$15 million of its common shares. Plans to distribute the remaining $15 million are being weighed.
"Management believes that Sierra’s underlying value along with its growth prospects are not reflected in the recent trading price of its Common Shares. As such, the company will use a reasonable portion of its cash resources toward the purchase of its common shares under the offer," said Igor Gonzales, rresident and CEO of Sierra Metals.
"Going forward, the company expects to be in a position to return a significant portion of its excess free cash flow to shareholders annually," said Sierra Metals in a news release.
Sierra runs the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico.