Andean Precious Metals / APM (TSX)

Andean Precious Metals Reports Second Quarter 2024 Operating and Financial Results, by @newsfile

Toronto, Ontario--(Newsfile Corp. - August 13, 2024) - Andean Precious Metals Corp. (TSXV: APM) (OTCQX: ANPMF) ("Andean" or the "Company") is pleased to…

ceo.ca

Second Quarter 2024 Highlights:

• Achieved zero lost time injuries and no reportable environmental incidents, demonstrating our commitment to a safe and sustainable operation.
• The Company reported a record consolidated production of 29,888 gold equivalent ounces ("AuEq oz"), or its equivalent of 2.5 million silver equivalent ounces ("AgEq oz"), approximately a 40% increase from Q1 2024¹.
• Golden Queen produced 16,986 AuEq oz, a 48% increase compared to Q1 2024, reflecting a strong recovery from the December 2023 fire and improved operations post-acquisition.
• San Bartolomé produced 1.1 million AgEq oz, a 30% increase from Q1 2024, driven by a 27% rise in purchased ore.
• Subsequent to the end of the quarter, the new Fine Minerals Processing Facility ("FDF") was commissioned on July 23, 2024, now operating at 1,300 tonnes per day with planned ramp up to 1,500 tonnes per day by the end of Q3 2024, enhancing overall performance and sustainability.
• The Company recorded consolidated revenue of $69.8 million, with an average realized gold price of $2,305/oz and silver price of $27.81/oz². This marks a 62% increase, or $26.7 million, compared to Q1 2024, driven by increased production at Golden Queen and San Bartolomé and higher average realized gold and silver prices. Golden Queen's operating cash cost ("OCC") and all-in sustaining cost ("AISC") per ounce of gold sold for the quarter were $1,350 and $1,752, respectively.¹
  
• San Bartolomé's cash gross operating margin ("CGOM") and Gross Margin Ratio ("GMR") were $5.15 and 24.45% respectively³.
  
• Higher gross profit - Sustainable increased production and higher average realized prices for gold and silver led to a gross profit of $14.5 million, up from $3.2 million in Q1 2024.
• Net income (after tax) totaled $9.4 million compared to a net loss of $0.1 million in Q1 2024.
• Strong liquid assets maintained to support ongoing strategic growth, totaling $87.0 million as of June 30, 2024.
• Share buyback continued. The Company repurchased and cancelled 2,298,000 of its common shares at an average cost of C$0.94 per share for a total cost of $1.6 million (C$2.1 million) through its normal course issuer bid ("NCIB") program.
• Strengthened management team with the addition of Sylvain Lessard joining the Company as President and General Manager at Golden Queen Mine.

Updating for financials today, we maintain our BUY rating and lift our target price to C$1.40/sh (prev C$1.30/sh) based on 1.0xNAV5% at US$30/oz Ag and US$2000/oz Au LT.
 Even though we had our frustrations at times, we have to congratulate Andean on playing the cycle very well – patiently waiting for the right acquisition and picking up a cash-flowing asset at the right time in the cycle. At US$80m EV, and potential for ~US$30m/year FCF, the company offers great value but now with a larger multi-asset platform, a cornerstone US asset, and a balance sheet that could enable further M&A growth or share buybacks.

https://bpd-space.nyc3.cdn.digitaloceanspaces.com/scp/240814-scp-apm-2q24.pdf

Andean Precious Metals zieht kontinuierlich nach oben. Der Kauf der Soledad Mountain Mine in Kalifornien zahlt sich aus. Produktionsziel sind insgesamt 10 Mio AgEQ pro Jahr. Einer meiner bestlaufenden Positionen in 2024 mit einem Anstieg von fast 200 %.

Sorgen machen mir die schwindenden Reserven in Bolivien, da müssen sie sich etwas einfallen lassen. Jetzt geniessen wir aber erst mal.