08:55 AM EDT, 03/17/2025 (MT Newswires) -- Sierra Metals ( SMTSF ) said Monday that it expects its EBITDA to increase this year as the company continues to urge shareholders to reject a hostile takeover bid by Alpayana.

Sierra forecast a 2025 EBITDA of US$130 million, rising 85% from an estimated US$70 million in 2024 and up 158% from US$50 million in 2023.

The company said the resulting higher operating cash flow would be more than adequate to fund its capital investment program and meet its debt repayment obligations.

Sierra said its "proven track record of EBITDA growth and the undervalued multiple reflected in Alpayana's offer are key factors shareholders should consider while deciding to reject Alpayana's outstanding tender offer."

"I am very pleased to report that the investments we have made in our business units have resulted in record production levels for Sierra Metals ( SMTSF )," CEO Ernesto Balarezo said. "The operational enhancements have strengthened our financial position and will enable the company to pursue sustainable growth safely and responsibly."

Sierra will release its fourth-quarter and full-year 2024 financial and operating results after the close of trading on March 26.