Andean Precious Metals Reports Second Quarter 2024 Operating and Financial Results

Rhea-AI Summary

Andean Precious Metals Corp. (TSXV: APM) (OTCQX: ANPMF) reported record consolidated production and revenues for Q2 2024. Highlights include:

- 29,888 gold equivalent ounces produced, a 40% increase from Q1 2024
- $69.8 million in consolidated revenue, up 62% from Q1 2024
- $14.5 million gross profit, compared to $3.2 million in Q1 2024
- $9.4 million net income, versus a $0.1 million loss in Q1 2024
- Strong liquid assets of $87.0 million as of June 30, 2024
- New Fine Minerals Processing Facility commissioned on July 23, 2024

The company maintained its 2024 production guidance of 115,000 gold equivalent ounces (+/- 5%) and cost guidance for its Golden Queen and San Bartolomé operations.

Positive

• Record consolidated production of 29,888 gold equivalent ounces, a 40% increase from Q1 2024
• Consolidated revenue increased by 62% to $69.8 million compared to Q1 2024
• Gross profit rose to $14.5 million from $3.2 million in Q1 2024
• Net income of $9.4 million, compared to a $0.1 million loss in Q1 2024
• Strong liquid assets of $87.0 million maintained as of June 30, 2024
• New Fine Minerals Processing Facility commissioned, enhancing overall performance and sustainability
• Golden Queen's production increased by 48% compared to Q1 2024
• San Bartolomé's production increased by 30% compared to Q1 2024

Negative

• Golden Queen's operating cash cost per ounce of gold sold was $1,350, which may impact profit margins
• Capital expenditures increased significantly to $5.2 million in Q2 2024 compared to $295,000 in Q2 2023
• Cash and cash equivalents decreased by 33% to $47 million compared to the same period last year

RECORD CONSOLIDATED PRODUCTION AND REVENUES

Toronto, Ontario--(Newsfile Corp. - August 13, 2024) - Andean Precious Metals Corp. (TSXV: APM) (OTCQX: ANPMF) ("Andean" or the "Company") is pleased to report its operating highlights and financial results for the three and six months ended June 30, 2024. All amounts are in United States Dollars unless otherwise stated. This news release should be read together with Andean's management discussion and analysis ("MD&A") and condensed consolidated interim financial statements for the three and six months ended June 30, 2024 (the "Financial Statements") which are available under the Company's profile on SEDAR+ (www.sedarplus.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

____________________

1. Silver equivalent production and silver equivalent sales include gold production and sales, respectively. Equivalent ounces are calculated using the Company's average realized gold and silver prices during the referenced period. Gold equivalent production and gold equivalent sales include silver production and sales, respectively. Equivalent ounces are calculated using the Company's average realized gold and silver prices during the referenced period. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section below for further detail.
2. OCC, AISC and average realized prices are measures of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section below for further detail, including a reconciliation of these metrics to the Financial Statements.

• 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.

Alberto Morales, Executive Chairman and CEO, stated, "Our second-quarter results highlight the significant progress and growth following our acquisition of Golden Queen. We have more than doubled our size compared to last year's production and revenue. Compared to Q1 2024, total production increased by approximately 40% to 29,888 gold equivalent ounces, and consolidated revenue rose by 62% to $69.8 million. These achievements underscore our successful integration of Golden Queen and the improved performance at San Bartolomé. Our focus remains on delivering value to our shareholders and pursuing additional growth opportunities as we advance to become a mid-tier producer.

During the quarter, we also advanced our FDF project, completing all concrete, structural steel, and mechanical work, while effectively managing costs, $5.5 million incurred against a $6.7 million budget. The commissioning of our Fine Minerals Processing Plant on July 23, 2024, was a key milestone, now operating at 1,300 tonnes per day with plans to reach 1,500 tonnes by the end of Q3.

Golden Queen's 48% production increase and San Bartolomé's 30% rise in silver equivalent ounces highlight the success of our strategic initiatives. These advances boosted our gross profit to $14.5 million and net income to $9.4 million, marking a strong turnaround."

Mr. Morales continued, "Looking ahead, our strong financial position and operating milestones reaffirms our overall consolidated guidance for 2024. The FDF deposit, with its substantial resource base, aligns with our sustainability goals, contributing to improved silver recovery and reduced environmental impact. Our commitment to safety and environmental stewardship remains strong, evidenced by zero lost time injuries and no reportable environmental incidents this quarter."

_______________________

3. Cash gross operating margin ("CGOM") per equivalent ounce sold is calculated by subtracting the average cash cost of sale (Costs of sales, excluding depreciation depletion and amortization), allocated corporate administration costs and business unit general and administration cost per equivalent ounces sold from the average selling price per equivalent ounces. It is a measure of financial performance with no prescribed definition under IFRS. Refer to "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section below for further detail, including a reconciliation of these metrics to the Financial Statements. Gross margin ratio ("GMR") is calculated by subtracting the cost of sale, excluding depreciation depletion and amortization, as reported in the income statements from the revenue from sales of equivalent ounces divided by revenue from sales of equivalent ounces. It is a measure of financial performance with no prescribed definition under IFRS. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section below for further detail, including a reconciliation of these metrics to the Financial Statements.

Summary of Financial and Operating Results

(In thousands except for net income per share and oz)		Q2 2024			Q2 2023		Change	YTD 2024				YTD 2023			Change
Financial Performance
Revenue	$	69,779		$	15,284	$	357%	112,849		$	38,329			194%
Cost of sales		47,847			11,771		306%	85,126			32,988			158%
Depreciation and depletion		7,399			1,065		595%	10,029			2,519			298%
Gross profit		14,533			2,488		494%	17,694			2,822			527%
Net income (after tax)		9,385			169		5,453%	9,309			388			2,299%
Net income per share
-Basic		0.06			0.00		-	0.06			0.00			-
-Diluted		0.06			0.00		-	0.06			0.00			-
Net cash provided from (used in) operating activities		13,006			(5,293)		-	8,307			(9,616)			-
Free cash flow4		7,788			(5,588)		-	(303)			(10,474)			-
EBITDA4		24,498			3,657		570%	28,099			5,173			443%
Adjusted EBITDA4		21,732			4,928		341%	24,671			5,401			357%
Capital expenditures		(5,218)			(295)		(1,669%)	(8,610)			(858)			(903%)
Ending cash and cash equivalents		47,049			70,427		(33%)	47,049			70,427			(33%)
Marketable securities and investments		39,911			4,687		752%	39,911			4,687			752%
Total cash and short-term investments		86,960			75,114		16%	86,960			75,114			16%
(In thousands except for metal price per oz)		Q2 2024			Q2 2023		Change	YTD 2024				YTD 2023(g)	Change
Operating highlights
Production
Golden Queen
Silver (koz)		157			-		-	265			-			-
Gold (oz)		15,035			-		-	25,294			-			-
Total AuEq ounces produced (oz)		16,986			-		-	28,476			-			-
San Bartolomé
Silver (koz)		1,051			1,189		(12%)	1,863			2,167			(14%)
Gold (oz)		274			396		(31%)	448			630			(29%)
Total AgEq ounces produced (koz)		1,074			1,221		(12%)	1,901			2,218			(14%)
Consolidated
Golden Queen AgEq oz (koz)		1,403			-			2,417			-
San Bartolomé AgEq oz (koz)		1,074			1,221		(12%)	1,901			2,218			(14%)
Total Consolidated AgEq ounces produced (koz)		2,477			1,221		103%	4,319			2,218			95%
Sales
Golden Queen
Silver (koz)		153			-		-	261			-			-
Gold (oz)		15,441			-		-	25,563			-			-
Total AuEq oz sold (oz)		17,348			-		-	28,691			-			-
San Bartolomé
Silver (koz)		1,057			620		71%	1,868			1,602			17%
Gold (oz)		238			-		100%	408			215			90%
Total AgEq oz sold (koz)		1,076			620		74%	1,902			1,620			17%
Consolidated ounces sold
Golden Queen AgEq oz (koz)		1,433			-			2,436			-
San Bartolomé AgEq oz (koz)		1,076			620		74%	1,902			1,620			17%
Total Consolidated AgEq oz sold (koz)		2,509			620		305%	4,339			1,620			168%
Average realized silver price ($/oz)	$	27.81		$	24.65		13%	26.01		$	23.67			10%
Average market silver price ($/oz)	$	28.79		$	24.15		19%	26.08		$	23.33			12%
Average realized gold price ($/oz)	$	2,305		$	-	$	100%	2,213		$	1,930			15%
Average market gold price ($/oz)	$	2,337		$	1,977	$	18%	2,203		$	1,932			14%

 

4. Free cash flow, EBITDA and Adjusted EBITDA are measures of financial performance with no prescribed definition under IFRS. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section below for further detail, including a reconciliation of these metrics to the Financial Statements.

2024 Outlook and Guidance

Production guidance

The Company is maintaining the 2024 annual gold and silver equivalent production guidance for Golden Queen and San Bartolomé.

		2024 AuEq oz Guidance5 +/- 5%	2024 AgEq oz Guidance5 +/- 5%
Golden Queen (koz)		60	5,429
San Bartolomé (koz)		55	5,000
Consolidated (koz)		115	10,429

 

Quarter-to-quarter gold production in 2024 is expected to fluctuate during the year, with production continuing to be weighted towards the second half of the year.

Cost guidance

The Company is maintaining the 2024 cost guidance for Golden Queen and San Bartolomé as shown below:

			2024 Guidance +/- 5%
Golden Queen
OCC per gold ounce sold, on a by-product credit basis[2]		$   1,500
AISC per gold ounce sold, on a by-product credit basis		$   1,750
San Bartolomé
CGOM		$    3.88
GMR		19.5%

 

In line with 2024 guidance, capital investment is expected to total $24.0 million (+/-5%), largely due to the $9.5 million included in the growth capital for the procurement of six new 785-8 haul trucks, as part of the Company's strategic mobile fleet replacement and mine optimization. These trucks will be financed through an equipment finance 5-year facility. Included in the sustaining capital at Golden Queen is the capitalization of the major overhaul maintenance/rebuild of equipment costs of $8.3 million. As of June 30, 2024, two new trucks out of the planned additional six have been commissioned.

Capital expenditures guidance

In $'000		2024 Guidance +/- 5%
Sustaining capital
Golden Queen	$	10,300
San Bartolomé		3,400
Total sustaining capital	$	13,700
Growth capital
Golden Queen	$	9,500
San Bartolomé		840
Total growth capital	$	10,340
Total capital
Golden Queen	$	19,800
San Bartolomé		4,240
Total capital expenditures	$	24,040

 

5. Assuming gold equivalent ounces were calculated on a consolidated basis for the Company, the expected guidance of 10.4 million silver equivalent ounces would equate to approximately 115,000 gold AuEq ounces. AuEq production and AuEq sales both include silver production and sales. Equivalent ounces are calculated using the Company's average realized gold and silver prices during the referenced period. For 2024 guidance commodity price assumptions supporting this estimate are $21 per ounce of silver and $1,900 per ounce of gold.

Q2 2024 Conference Call and Webcast

• Wednesday, August 14, at 9:00 AM ET

• Participants may listen to the webcast by registering on our website at www.andeanpm.com or via the following link https://www.gowebcasting.com/13407

• Participants may also listen to the conference call by calling North American toll free 1-844-763-8274, or 1-647-484-8814 outside the U.S. or Canada

• An archived reply of the webcast will be available for 90 days at: https://www.gowebcasting.com/13407 or the Company website at www.andeanpm.com.

About Andean Precious Metals

Andean is a growth-focused precious metals producer that owns and operates the San Bartolomé project located in the department of Potosí, Bolivia. San Bartolomé has been operating continuously since 2008, producing an average of 5 million oz of silver equivalent per year. The Company is seeking accretive growth opportunities in Bolivia and the wider Americas. Andean is committed to fostering safe, sustainable, and responsible operations.

Qualified Person Statement

The scientific and technical content disclosed in this news release was reviewed and approved 8 by Donald J. Birak, Independent Consulting Geologist to the Company, a Qualified Person as defined by National Instrument 43-101 - Standards for Disclosure for Mineral Projects, Registered Member, Society for Mining, Metallurgy and Exploration (SME), Fellow, Australasian Institute of Mining and Metallurgy (AusIMM). Mr. Birak has visited Manquiri's various sites frequently, most recently in January 2024.

For more information, please contact:

Amanda Mallough
Director, Investor Relations
amallough@andeanpm.com
T: +1 647 463 7808

Neither the TSX Venture Exchange, Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

Certain statements and information in this release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which we refer to collectively as "forward-looking statements". Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.

Forward-looking statements in this release include, but are not limited to, statements and information regarding the Company's production,cost outlook and capital expenditure expectations for 2024. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the Company's ability to carry on exploration and development activities; the Company's ability to secure and to meet obligations under property and option agreements and other material agreements; the timely receipt of required approvals and permits; that there is no material adverse change affecting the Company or its properties; that contracted parties provide goods or services in a timely manner; that no unusual geological or technical problems occur; that plant and equipment function as anticipated and that there is no material adverse change in the price of silver, costs associated with production or recovery. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and you are cautioned not to place undue reliance on forward-looking statements contained herein.

Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, resources, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental or local community approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment; and other factors contained in the section entitled "Risk Factors" in the Company's MD&A dated June 30, 2024.

Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements included in this release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.

Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures

This news release "specified financial measures" within the meaning of National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure, specifically the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of these measures assists analysts, investors and other stakeholders of the Company in understanding the costs associated with producing silver and gold, understanding the economics of silver and gold mining, assessing operating performance, the Company's ability to generate free cash flow from current operations and on an overall Company basis, and for planning and forecasting of future periods.

The specified financial measures used in this news release do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even as compared to other issuers who may be applying the World Gold Council guidelines. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The following is a description of the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures used in this news release:

(i) OCC includes total production cash costs incurred at the Company's mining operations, which form the basis of the Company's cash costs, less by-product revenue.

(ii) AISC on a by-product basis per ounce is a non-GAAP ratio calculated as AISC on a by-product basis divided by ounces of gold sold. AISC on a by-product basis is a non-GAAP financial measure calculated as the aggregate of production costs as recorded in the consolidated statements of income (loss), refining and transport costs, cash component of sustaining capital expenditures, lease payments related to sustaining assets, corporate general and administrative expenses and accretion expenses. When calculating AISC on a by-product basis, all revenue received from the sale silver at Golden Queen are treated as a reduction of costs incurred. The Company believes that AISC represents the total costs of producing gold from current operations and provides the Company and other stakeholders of the Company with additional information relating to the Company's operational performance and ability to generate cash flow.

(iii) AIC represents AISC plus growth capital and non-sustaining exploration and evaluation costs. Non-sustaining exploration and evaluation costs represent costs associated with the Company's exploration portfolio. Certain other cash expenditures including tax payments, debt payments, dividends and financing costs are also not included in the calculation of AIC. The Company reports these measures on a per gold ounce sold basis.

(iv) CGOM per equivalent ounce sold is calculated by subtracting the average cash cost of sale (cost of sales, allocated corporate administrative costs and business unit general and administration cost) per equivalent ounce sold from the average selling price per equivalent ounce. It is a measure of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers.

(v) GMR is calculated by subtracting the cost of sale as reported in the income statement from the revenue of equivalent ounces divided by revenue from sales of equivalent ounces. GMR is a measure of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers.

(vi) EBITDA is defined as earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure calculated by adjusting net income (loss) as recorded in the condensed interim consolidated statements of income (loss) for items not associated with ongoing operations. The Company believes that this generally accepted industry measure allows the evaluation of the results of income-generating capabilities and is useful in making comparisons between periods. This measure adjusts for the impact of items not associated with ongoing operations. A reconciliation of adjusted net income (loss) to the nearest IFRS measures is set out below. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.

(vii) Free cash flow is a non-GAAP financial measure calculated as cash provided by operating activities from continuing operations less property, plant and equipment additions. A reconciliation of free cash flow to the nearest IFRS measures is set out below. Management uses this measure to monitor the amount of cash available to reinvest in the Company and allocate for shareholder returns.

(viii) Average realized price is a supplementary financial measure calculated by dividing the different components of precious metal sales by the number of ounces sold. Management uses this measure to monitor its sales of precious metal ounces against the average market gold price.

OCC

The following table provides a reconciliation of the OCC per ounce sold on a by-product basis to the Financial Statements:

Golden Queen	Three months ended June 30,										Six months ended June 30,
(In thousands except for ounces and per ounce measures)			2024		2023					2024			2023
Costs of sales, as reported		$	25,239	$	-			$		44,236		$	-
Total OCC before by-product credits			25,239		-					44,236			-
Less: by-product silver credits			(4,390)		-					(6,924)			-
Total OCC			20,849	$	-			$		37,312		$	-
Divided by Au ounces sold			15,441		-					25,563			-
OCC per Au ounce sold, on a by-product basis			1,350	$	-			$		1,460		$	-

 

AISC

The following table provides a reconciliation of the AISC per ounce on a by-product basis to the Financial Statements:

Golden Queen	Three months ended June 30,					Six months ended June 30,
(In thousands except for ounces and per ounce measures)		2024		2023			2024		2023
OCC, net of by-product credits	$	20,849	$	-		$	37,312	$	-
General and administrative expenses [3]		1,860		-			3,229		-
Allocated corporate general and administrative expenses		1,036		-			1,575
Sustaining capital expenditures		3,224	$	-			4,333		-
Accretion for decommissioning liability		84		-			195		-
AISC		27,053	$	-		$	46,648	$	-
Divided by Au ounces sold		15,441					25,563		-
AISC per Au ounce sold, on a by-product basis	$	1,752	$	-		$	1,825	$	-

 

AIC

The following table provides a reconciliation of the AIC per ounce on a by-product basis to the Financial Statements:

Golden Queen	Three months ended June 30,							Six months ended June 30,
(In thousands except for ounces and per ounce measures)			2024		2023			2024		2023
AISC	$		27,053	$	-		$	46,648	$	-
Non-sustaining capital			457		-			866		-
AIC	$		27,510		-		$	47,514	$	-
Divided by Au ounces sold			15,441	$	-			25,563		-
AIC per Au ounce sold, on a by-product basis	$		1,782		-		$	1,859	$	-

 

CGOM

The following table provides a reconciliation of the CGOM per ounce to the Financial Statements and the most directly comparable IFRS measure:

San Bartolomé			Three months ended June 30,					Six months ended June 30,
(In thousands except for ounces and per ounce measures)			2024			2023			2024			2023
Costs of sales, as reported	$		22,607		$	11,769		$	40,890		$	32,988
Total cost of sales before by-product credits			22,607			11,769			40,890			32,988
General and administration-site			1,000			1,571			2,476			2,926
Allocated corporate general and administrative expenses			776			1,000			1,223			2,000
Total gross operating costs	$		24,383		$	14,340		$	44,589		$	37,914
Divided by AgEq oz sold (koz)			1,076			620			1,902			1,620
Gross operating cost per AgEq oz sold	$		22.66		$	23.14		$	23.44		$	23.41
Average realized silver price per oz	$		27.81		$	24.66		$	26.01		$	23.67
CGOM per AgEq oz	$		5.15		$	1.52		$	2.57		$	0.26

 

³ For Q 1 2024 general and administrative expenses reflect the operating segment information only.

GMR

The following table provides a reconciliation of the GMR per ounce to the most directly comparable IFRS measure:

San Bartolomé	Three months ended June 30,						Six months ended June 30,
(In thousands except for ounces and per ounce measures)		2024			2023			2024			2023
Costs of sales, as reported	$	22,607		$	11,769		$	40,890		$	32,988
Divided by AgEq oz sold (koz)	$	1,076			620			1,902			1,620
Costs of sales per AgEq oz sold	$	21.01		$	19.00		$	21.50		$	20.37
Average realized silver price per oz	$	27.81		$	24.66		$	26.01		$	23.67
GM per AgEq oz sold	$	6.80		$	5.66		$	4.51		$	3.30
GMR per AgEq oz sold		24.45%			22.95%			17.34%			13.94%

 

Free Cash Flow

The Company has included free cash flow as a non-GAAP financial measure in this news release. The Company considers net cash provided from (used in) operating cash flow less capital expenditures to be a measure that allows the Company and investors to evaluate the ability of the Company to generate cash flow. Accordingly, free cash flow is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The following table provides a reconciliation of free cash flow to the Financial Statements:

	Three months ended June 30,						Six months ended June 30,
(In thousands)		2024			2023			2024			2023
Net cash flow from operating activities	$	13,006		$	(5,293	)	$	8,307		$	(9,616	)
Less:
Expenditures on property, plant and equipment		(5,218	)		(295	)		(8,610	)		(858	)
Free cash flow	$	7,788		$	(5,588	)	$	(303	)	$	(10,474	)

 

EBITDA and Adjusted EBITDA

The Company has included EBITDA and Adjusted EBITDA as a non-GAAP financial measure in this news release. The Company excludes certain items from net income (loss)to provide a measure which allows the Company and investors to evaluate the results of the underlying core operations of the Company and its ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The following table provides a reconciliation of Adjusted EBITDA to the Financial Statements:

		Three months ended June 30,						Six months ended June 30,
	(In thousands)			Q2 2024			Q2 2023				Q2 2024			Q2 2023
	Net (loss) income		$	9,385		$	169			$	9,309		$	388
	Add:
	Income taxes			6,090			2,016				5,487			1,459
	Finance costs			1,624			407				3,274			807
	Depreciation and depletion			7,399			1,065				10,029			2,519
	EBITDA		$	24,498		$	3,657			$	28,099		$	5,173
	Add: Non-sustaining exploration and evaluation costs			417			389				649			(63		)
Add: Corporate development costs				200			403				379			576
	Add: Change in fair value of derivative contracts			(1,980	)		(972		)		(2,832	)		(972		)
	Add: Change in fair value of marketable securities			(1,403	)		1,451				(1,624	)		687
	Adjusted EBITDA		$	21,732		$	4,928			$	24,671		$	5,401

 

Average Realized Gold and Silver Prices Per Ounce

The Company has included average realized prices as a supplementary non-GAAP financial measure in this news release. The Company quantifies average realized price per ounce as revenue per the Statement of Income (loss) divided by ounce of gold or silver sold. Management uses this measure to monitor sales of silver and gold ounces against the average market silver and gold prices.

The following table provides a reconciliation of average realized prices to the most directly comparable IFRS measure:

			Three months ended June 30,											Six months ended June 30,
(In thousands except for ounces and per ounce measures)					Q2 2024					Q2 2023						Q2 2024					Q2 2023
Silver revenue			$		33,645			$		15,284				$		55,368			$		37,914
Silver sold (k oz)					1,210					620						2,129					1,602
Average realized silver price per oz			$		27.81			$		24.66				$		26.01			$		23.67
Gold revenue			$		36,133			$		-				$		57,481			$		415
Gold sold (oz)					15,679					-						25,971					215
Average realized gold price per oz			$		2,305			$		-				$		2,213			$		1,930

 

Andean Precious Metals Corp.
Condensed Consolidated Interim Statements of Financial Position
(in thousands of US dollars, Unaudited)

			Notes	June 30, 2024				December 31, 2023
	ASSETS
	Current
	Cash and cash equivalents			$		47,049		$				64,907
	Marketable securities and short-term investments		4			39,911						5,162
	Accounts receivables					2,754						888
	Inventories		5			70,060						68,391
	Other current assets		6			12,963						15,251
	Total current assets					172,737						154,599
	Non-Current
	Property, plant and equipment		7			97,040						92,353
	Long term inventory		5			3,058						3,047
Deferred income tax asset						3,970						6,156
Other assets			6			16,035						13,735
	Total non-current assets					120,103						115,291
	Total assets			$		292,840		$				269,890
	LIABILITIES
	Current
	Accounts payable and accrued liabilities		8	$		27,479		$				29,719
	Current portion of long-term debt		9			8,996						8,870
	Current income taxes payable					5,341						7,353
	Other liabilities		10			9,477						8,294
	Total current liabilities					51,293						54,236
	Non-Current
	Long-term debt		9			55,473						38,588
	Provisions for reclamation					27,928						26,726
	Deferred income tax liability					16,055						13,430
	Other liabilities		10			4,953						4,941
	Total non-current liabilities					104,409						83,685
	Total liabilities					155,702						137,921
	EQUITY
	Issued capital		14			18,549				22,826
	Accumulated other comprehensive loss					390				390
	Contributed surplus					2,459				2,322
	Retained earnings	115,740							106,431
	Total equity	137,138							131,969
	Total liabilities and equity	$          292,840							$            269,890

 

Andean Precious Metals Corp.
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
(in thousands of US dollars, except per share amounts, unaudited)

		For the three months ended				For the six months ended
	Notes	June 30, 2024		June 30, 2023		June 30, 2024			June 30, 2023
Revenues	11	$	69,779	$	15,284	$	112,849	$	38,329
Cost of sales	12(a)		(47,847)		(11,771)		(85,126)		(32,988)
Depreciation and depletion	7		(7,399)		(1,065)		(10,029)		(2,519)
Gross Profit			14,533		2,448		17,694		2,822
General and administrative	12(b)		(4,339)		(3,120)		(8,887)		(5,575)
Exploration and evaluation			(417)		(389)		(649)		63
Income (loss) from operations			9,777		(1,061)		8,158		(2,690)
Other income	12(c)		3,928		2,585		4,223		3,910
Finance costs	12(d)		(1,624)		(407)		(3,274)		(807)
Foreign exchange gain			3,394		1,068		5,689		1,434
Net income before income taxes			15,475		2,185		14,796		1,847
Income taxes
Current income tax expense	13		(3,671)		(2,260)		(3,626)		(1,940)
Deferred income tax (expense) recovery	13		(2,419)		244		(1,861)		481
Net income and comprehensive income		$	9,385	$	169	$	9,309	$	388
Earnings per share
Basic net income per share	15	$	0.06		0.00		0.06		0.00
Diluted net income per share	15	$	0.06		0.00		0.06		0.00
Weighted average number of common shares outstanding
Basic			150,321,629		158,474,893		151,965,040		158,601,832
Diluted			152,914,066		159,480,678		154,906,437		158,754,705

 

Andean Precious Metals Corp.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of US dollars, unaudited)

		Six months ended
	Notes		June 30, 2024		June 30, 2023
Net income		$	9,309	$	388
Adjustments:
Depreciation and depletion	7		10,029		2,519
Accretion on provision for reclamation			809		671
Share-based compensation	14(b)		432		316
Accretion on deferred payment liability	12(d)		274		-
Loss on disposal of equipment			337		-
Unrealized derivative gain			(2,832)		(972)
Change in fair value of marketable securities	4		(1,624)		687
Reclamation payments			(179)		(89)
Current income taxes expense			3,626		1,940
Deferred income taxes expense (recovery)			4,811		(481)
Foreign exchange gain			(5,689)		(1,434)
Operating cashflow before changes in non-cash working capital			19,303		3,545
Changes in non-cash working capital	19(a)		(10,996)		(13,161)
Net cash provided (used in) from operating activities			8,307		(9,616)
Investing activities
Expenditures on property, plant and equipment	7		(8,610)		(858)
Net investment in marketable securities and other investments	4		(32,944)		(175)
Net cash used in investing activities			(41,554)		(1,033)
Financing activities
Shares repurchased for cancellations	14(a)		(4,435)		(1,226)
Drawn down of line of credit	9(c)		15,000		-
Payment of debt	9		(865)		-
Proceeds from disposal of marketable securities			-		139
Net cash provided (used in) from financing activities			9,700		(1,087)
Effect of exchange rate changes on cash			5,689		1,434
Net decrease in cash during the period			(17,858)		(10,302)
Cash, beginning of year			64,907		80,729
Cash, end of the period		$	47,049	$	70,427

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219828

FAQ

What was Andean Precious Metals' (ANPMF) gold equivalent production in Q2 2024?

Andean Precious Metals (ANPMF) reported a record consolidated production of 29,888 gold equivalent ounces in Q2 2024, which represents a 40% increase from Q1 2024.

How much revenue did Andean Precious Metals (ANPMF) generate in Q2 2024?

Andean Precious Metals (ANPMF) recorded consolidated revenue of $69.8 million in Q2 2024, marking a 62% increase or $26.7 million compared to Q1 2024.

What was Andean Precious Metals' (ANPMF) net income for Q2 2024?

Andean Precious Metals (ANPMF) reported a net income of $9.4 million for Q2 2024, compared to a net loss of $0.1 million in Q1 2024.

When was Andean Precious Metals' (ANPMF) new Fine Minerals Processing Facility commissioned?

Andean Precious Metals (ANPMF) commissioned its new Fine Minerals Processing Facility on July 23, 2024, which is now operating at 1,300 tonnes per day with plans to ramp up to 1,500 tonnes per day by the end of Q3 2024.