Andean Precious Metals Hits Record Output and Revenue
Andean Precious Metals Corp. has reported a significant surge in production and revenue for the second quarter of 2024, with a record output of 29,888 gold equivalent ounces and a 62% increase in consolidated revenue to $69.8 million, largely due to enhanced operations and higher gold and silver prices.
The successful commissioning of the new Fine Minerals Processing Facility promises to further boost the company’s performance and sustainability.
The key financial highlights for Andean Precious Metals in the second quarter of 2024 include:
Record Revenue: The company reported consolidated revenue of $69.8 million, marking a 62% increase compared to the previous period. This surge was driven by enhanced operations and higher gold and silver prices.
Production Increase: Andean Precious Metals achieved a record output of 29,888 gold equivalent ounces, which contributed to the significant revenue growth.
Profitability: The company recorded a gross profit of $14.5 million and a net income of $9.4 million, indicating a robust financial performance for the quarter.
Cash and Investments: Ending cash and cash equivalents were reported at $47.0 million. Additionally, marketable securities and investments increased by 752% to $39.9 million, with total cash and short-term investments rising by 16% to $87.0 million.
Capital Investments: The company plans to invest $24.0 million, primarily for the acquisition of six new haul trucks to enhance its fleet and optimize mining operations.
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.
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."
Q2 2024 Conference Call and Webcast
Wednesday, August 14, at 9:00 AM ET
Participants may listen to the webcast by registering on their 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
Sources
Citations:
https://finance.yahoo.com/news/andean-precious-metals-provides-notice-113000180.html
https://www.marketscreener.com/quote/stock/ANDEAN-PRECIOUS-METALS-CO-120977132/calendar/
https://www.tipranks.com/news/company-announcements/andean-precious-metals-hits-record-output-and-revenue
https://finance.yahoo.com/news/andean-precious-metals-reports-second-010000174.html
https://andeanpm.com/investors/