Andean Precious Metals / APM (TSX)


    Ticker: APM CN
    Market cap: C$286m RECOMMENDATION (unc): BUY
    Net cash: US$87m Price: C$1.82/sh TARGET (unc): C$2.20/sh
    07 February 2022
    Project: San Bartolome Country: Bolivia
    RISK RATING: HIGH

    At any given time, a small number of silver companies trade a big premium to NAV, driven by silver’s torque to precious metals sentiment and a relative scarcity of actionable silver primary producers. Unfortunately, the pattern is for operational set-backs to cause such premium names to de-rate with recent examples being Fresnillo, Fortuna and Gatos. In that context we think Andean’s steady cash flow (24% 2021E FCF yield on EV netting out US$87m of cash and eq), relatively simple mining and processing, and 13-year track record of production at San Bartolome make for an excellent risk-reward opportunity relative to peers. In the upcoming FDF resource / scoping study, we see potential to extend mine life by another 5 years and add meaningful tin production. Tin is in significant supply deficit and prices +10% YTD vs the S&P 500 -6% YTD. Finally, the exploration announced today at San Pablo and Rio Blanco is in the stock for free. Meanwhile, Eloro (C$220m mcap) and New Pacific (~C$530m mcap) show the market is willing to pay a significant premium for successful Bolivian exploration and while early days, it is a free option with potentially large porphyry upside. For now, we maintain our base case estimates and reiterate our BUY rating and C$2.20/sh price target based on 1.3x NAV5%-24/oz.
    15,000m exploration program at San Pablo targeting porphyry Au mineralization
    Andean announced commencement of a 15,000 phase two drilling program at the San Pablo project to follow on 2021’s SCIP and MT surveys completed in December. An initial four-holes for 3,100m will test four low-resistivity, high-chargeability (interpreted as potential porphyry sulphides) targets with the next 11,900m planned to incorporate result of the first 3,100m. Mineralization at San Pablo is hosted in sediments over a 2.5-1.5km area. Mineralization is related to sulphides in sheeted veins and veinlets, wider veins and sulphide-cemented breccias with pervasive silica-sericite alteration. Exploration at the Rio Blanco project is targeted for commencement in 2H22.
    Figure 1. Map of San Pablo showing anomalies, survey lines and planned 2022 drill holes; (B) Plans and section of planned DDH-SP-22-013 showing gold geochem, outcrop, resistivity anomaly and interpreted geological cross section
    Why we like Andean

    1. >20% FCF yield is anomalously high relative to peers
    2. Proven operating history at San Bartolome de-risks cash flow forecasts
    3. Strong management team and balance sheet with capacity to build a multi-asset producer
    4. Able to benefit from size / trading liquidity re-rate


    Page 1
    Catalysts

    •  Imminent: Updated MRE on San Bartolome Fines (FDF)
    •  1Q22: Scoping study on San Bartolome Expansion to process FDF
    •  Ongoing: Exploration and M&A ReviewResearchJustin Chan (London) M: +44 7554 784 688 jchan@sprott.com
      Brock Salier (London) M: +44 7400 666 913 bsalier@sprott.com
      Brandon Gaspar (Toronto) M: +1 437 533 3142 bgaspar@sprott.com EleanorMagdzinski(Toronto)M:+17056697456 emagdzinski@sprott.com


    https://sprott.com/media/4862/220207-scp-apm-exploration.pdf

    Andean Precious Metals Delivers Significant Increase in Mineral Resources at San Bartolome Mine in Bolivia


    TSX.V: APM
    www.andeanpm.com
    Mr. Simon Griffiths reports:


    • Measured and Indicated Mineral Resources of 27.5 Million Ounces of Silver and 11.9 Thousand Tonnes of Tin;
    • Inferred Mineral Resources of 3.8 Million Ounces of Silver and 1.3 Thousand Tonnes of Tin

    Toronto, Ontario--(Newsfile Corp. - February 9, 2022) - Andean Precious Metals Corp. (TSXV: APM) (OTCQB: ANPMF) ("Andean" or the "Company"), a leading Latin American precious metals producer, is pleased to announce an updated Mineral Resource Estimate ("MRE") for the Company's San Bartolomé mine in Bolivia. This updated MRE includes stockpiles of previously crushed and sorted mineralized material at the Company's fines depositional facility ("FDF") and will serve as a primary input in the Company's upcoming life-of-mine expansion study.


    https://www.juniorminingnetwor…lome-mine-in-bolivia.html

    Today’s MRE makes clear that the mineralized fines stockpile will be a meaningful value contributor
    for Andean. At 11.7Mt for 11.8Moz Ag and 13.3kt of tin (40.6Moz AgEq at 108g/t AgEq using prices of
    $40k/t tin and $24/oz Ag) the material should add the equivalent of 5 years of production at similar
    AgEq levels as current production. Although we await the findings of the upcoming scoping study, we
    think capex should be moderate with the addition of a gravity recovery circuit for the tin. Opex should
    also be low given the material is already mined at surface, requiring minor re-handle and haul. Using
    initial estimates of 60% tin and 80% silver recovery, capex of US$50m in 2024e, and an LT tin price of
    US$40k/t, we estimate that the FDF adds US$99m to NPV5%. Incorporating the FDF into our base
    case, we reiterate our BUY rating and lift our price target to C$3.00/sh price target based on 1.3x
    NAV5%-24/oz-40k/t. Stepping back, Andean is trading top of range cash flow multiples for silver, and has
    now demonstrated visibility on an 8-10-year mine life, which we believe should catalyze further positive
    re-rating. Moreover, since IPO Andean has established a good track record of meeting its targets and
    delivering milestones, in addition to which the San Bartolome operation has a 13-year operating track
    record.
    Updated MRE incorporates FDF, AgEq +103%, we lift our TP to C$3.00/sh


    https://sprott.com/media/4871/220209-scp-apm-mre.pdf

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    Andean Precious Metals Reports 2021 Earnings; Delivers on Silver Production and Cost Guidance
    Company reports positive fourth quarter and full year results and provides guidance for 2022

    https://www.newsfilecorp.com/release/117117


    Mr. Griffiths went on to say, "As a result of our operational and financial performance in 2021, we entered 2022 with a clean balance sheet that provides us a strategic advantage for negotiating mergers and acquisition transactions. We will build on this success through executing on plans to expand the life-of-mine at San Bartolomé, and supported by consistent production and cashflows, this continues to position Andean well as a consolidator of assets."
    FY 2021 Operational and Financial Highlights

    • Production of 5.8 million silver equivalent ounces1, compared to FY 2021 guidance of 5.8 to 6.1 million ounces, and includes 1.4 million ounces in Q4 2021;
    • All-in sustaining costs ("AISC")2 per silver ounce sold of $18.17, compared to FY 2021 guidance of $17.50 to $19.50 per ounce;
    • Processing plant throughput increase of 16% to 1.7 million tonnes, compared to 1.5 million tonnes in FY 2020;
    • Revenues of $144.2 million from sales of 5.8 million silver equivalent ounces, compared with $130.7 million from sales of 6.0 million silver equivalent ounces for FY 2020;
    • Free cash flow2 ("FCF") of $30.0 million compared with $35.3 million for FY 2020.
    • Adjusted EBITDA2 of $34.4 million, compared with $39.7 million for FY 2020;
    • Completed over 5,700 metres of drilling in 2021 at San Pablo and Rio Blanco gold exploration properties;
    • Increased measured and indicated resource estimate to 27.5 million ounces of silver and 11.9 thousand tonnes of tin. Inferred resource estimate is 3.8 million ounces of silver and 1.3 thousand tonnes of tin. Mineral resource estimates are effective December 31, 2021.


    Innerhalb einer Woche fast 30% an Wert verloren. Die Zahlen waren jetzt nicht schlecht, aber gut halt auch nicht. Ich habe mit mehr Gewinn gerechnet. Komisch dass immer kurz vor Börsenschluss auf den Kurs "eingedroschen" wird. Andeans Barmittel machen mehr als 50% des Börsenwertes aus und der free float ist gering. Das heißt es kann genauso schnell wieder hoch gehen.
    Warum der Kurs so in die Knie geht und was sich hier vielleicht im Hintergrund abspielt, ist für mich als Außenstehender nicht begreifbar.


    Sollte es in der nächsten Wochen zu weiteren Abschlägen kommen, werde ich spekulativ Aktien von Andean kaufen.
    Das gleiche gilt für Mandalay Resources.


    Grüße
    Martin

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    Andean Precious Metals Provides Update on San Bartolome Expansion Study

    https://www.newsfilecorp.com/release/121112


    The Expansion Study is evaluating options to extend the life of mine at San Bartolomé through the extraction of silver and tin contained in a stockpile of fine material at the fines disposal facility ("FDF") adjacent to the tailings facility. Information pertaining to the FDF was included in a National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report dated March 25, 2022, titled "NI 43-101 Technical Report San Bartolomé Mine Bolivia". As disclosed in this technical report, the FDF contains 16.2 million silver ounces and 11,930 tonnes of tin within 10.15 million tonnes of indicated mineral resources and 2.3 million ounces of silver and 1,330 tonnes of tin within 1.51 million tonnes of inferred mineral resources. The Expansion Study will inform the Company's decision to move forward with a feasibility study related to the FDF.
    Golder Associates Inc. have completed preliminary engineering work on hydraulic mining and SGS Canada Inc. are currently undertaking metallurgical test-work on the first batch of 23 samples recovered in the resource definition drill program. This will be followed by similar testing on composite samples from the remaining 59 drill holes currently in storage at the laboratory. Initial testing suggests that tin and silver-bearing ore can be pre-concentrated by discarding very fine material ahead of a recovery circuit. Heavy liquid test-work and mineralogy is in progress and will guide the gravity concentration flowsheet design.
    Progress Update

    • Initial capital estimates for the hydraulic mining and tin recovery circuit are lower than expected, ranging from US$20M to US$25M versus previous guidance of US$30M to US$50M;
    • Estimated hydraulic mining costs range from US$0.80 to $0.95 per tonne;
    • Estimated operating costs for gravity tin recovery range from US$4.50 to US$5.50 per tonne based on the initial flowsheet, exclusive of silver processing costs of approximately US$18 per tonne;
    • Silver recoveries are expected to be consistent with current process plant performance subject to continued test-work confirmation;
    • Initial analysis supports the utilization of pre-concentration to upgrade the metal content of material being delivered to the proposed gravity and existing leach circuit.

    The Company has experienced significant delays on the metallurgical test program due to transportation, customs and Covid-19 impacts, along with backlogs at SGS Canada's testing facility in Lakefield. These delays may impact the Company's ability to complete the Expansion Study by the end of the second quarter as previously guided.


    "Initial estimates for capital costs, operating costs and silver recoveries are positive, and we continue to advance our understanding of tin processing options while managing test-work delays," said Simon Griffiths, President and CEO. "While initial results support our thesis on pre-concentration and gravity recovery of tin, we need to work through our backlog of metallurgical testing before we make a decision to move forward with the next phase." Mr. Griffiths went on to say, "we continue to believe that the materials in the FDF represents substantial value for Andean stakeholders - which we will develop in a methodical fashion, ensuring that a decision to invest shareholder capital is fully supported by the data. I am confident that we will work through the current delays and look forward to updating the market on our progress before the end of this quarter."



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    Andean Precious Metals Reports First Quarter Results and Reiterates 2022 Guidance
    Toronto, Ontario--(Newsfile Corp. - May 24, 2022) - Andean Precious Metals Corp. (TSXV: APM) (OTCQB: ANPMF) ("Andean" or the "Company") today reported its positive financial results for the first quarter ended March 31, 2022 ("Q1"). All currency amounts are expressed in U.S. dollars unless indicated otherwise.
    Q1 2022 Highlights

    • Well-positioned for growth with ending cash and cash equivalents balance of $89.5 million and ending marketable securities balance of $6.9 million with no debt;
    • Production of 1.2 million silver equivalent ounces1;
    • Processing plant throughput of 0.4 million tonnes, on par with Q1 2021;
    • Revenues of $29.9 million from sales of 1.2 million silver equivalent ounces;
    • Cost of sales of $20.6 million and all-in sustaining costs ("AISC")2 per silver ounce sold of $18.86;
    • Adjusted EBITDA2 of $5.4 million and net income of $2.3 million;
    • Positive free cash flow2 of $2.2 million and operating cash flow of $2.7 million;
    • Completed 1,419 metres of phase two drilling at the San Pablo gold exploration property, targeting recently identified porphyry intrusions.

    https://www.newsfilecorp.com/release/124811

    Andean Precious Metals Reports Second Quarter Results and Reaffirms 2022 Guidance


    https://www.newsfilecorp.com/release/133460

    Toronto, Ontario--(Newsfile Corp. - August 11, 2022) - Andean Precious Metals Corp. (TSXV: APM) (OTCQX: ANPMF) ("Andean" or the "Company") today announced its financial and operational results for the three and six months ended June 30, 2022 and provided a strategic and business update. All currency amounts are expressed in U.S. dollars unless indicated otherwise.


    Debt-free balance sheet with $88.4 million in cash and $4.0 million in marketable securities as at June 30, 2022

    • Higher average head grade of 126 g/t silver compared with 115 g/t in Q2 2021
    • Consistent processing plant throughput of 0.4 million tonnes, same as Q2 2021
    • Revenues of $28.9 million from sales of 1.3 million silver equivalent ounces1 with cost of sales of $24.5 million
    • All-in sustaining costs ("AISC")2 per silver ounce sold of $21.38; H1 2022 AISC per ounce of $20.15
    • Adjusted EBITDA2 of negative $0.7 million driven by lower revenues from a significant decline in silver prices throughout Q2 2022; net loss of $6.2 million or $0.04 per share
    • As part of its focus on growth, Andean increased its management bench strength with the appointments of Ben McCormick as Vice President of Treasury and Corporate Development and Patricia Moran as Vice President of Investor Relations


    Andean Precious Metals Reports Discovery of High Sulfidation and Porphyry Gold System in Bolivia
    Phase II drilling confirmed that the San Pablo Project has many of the characteristics of a porphyry gold system

    https://www.newsfilecorp.com/release/136170
    San Pablo: Select Drilling Highlights
    Phase I

    • 53.80 m at 1.17 g/t Au in hole SP21-01
    • 23.10 m at 0.47 g/t Au in hole SPW21-04
    • 92.75 m at 0.37 g/t Au in hole SPW21-04
    • 97.80 m at 0.30 g/t Au in hole SPW21-03
    • 108.40 m at 0.29 g/t Au in hole SPW21-01

    Phase II

    • 4.50 m at 6.19 g/t Au, 67.07 g/t Ag, 0.41 % Pb and 0.47% Zn in hole SP22-03
    • 2.60 m at 1.97 g/t Au, 331.23 g/t Ag, 1.78% Cu, 2.20% Pb and 4.93% Zn in hole SP22-03
    • 13.70 m at 0.71 g/t Au in hole SP22-03

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    Andean Precious Metals Announces Normal Course Issuer Bid

    https://www.newsfilecorp.com/release/137884
    Toronto, Ontario--(Newsfile Corp. - September 21, 2022) - Andean Precious Metals Corp. (TSXV: APM) (OTCQX: ANPMF) (the "Company") announces that it has filed with the TSX Venture Exchange (the "TSXV") a notice of intention to make a normal course issuer bid ("NCIB") for certain of its common shares (the "Shares").
    The NCIB has been approved by the Company's board of directors; however, it is subject to the approval of the TSXV and, if accepted, will be made in accordance with the applicable rules and policies of the TSXV and applicable securities laws.
    "Currently, we are trading at an enterprise value nearly equivalent to our cash balance and therefore buying back our stock is a logical step. We have a strong balance sheet with approximately US$90 million1 in cash and no debt, streams or royalties," stated Alberto Morales, Executive Chairman. "This puts us in the unique position of being able to both buy back our stock at prices that do not reflect the underlying value of the business and transact on a transformational acquisition in the wider Americas to augment existing cashflows from our San Bartolomé operation."
    Pursuant to the NCIB, the Company intends to purchase up to 7,895,706 of its outstanding Shares, representing up to 5% of the total number of Shares outstanding as at September 15, 2022. As at September 15, 2022, there were 157,914,131 issued and outstanding Shares..


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