Andean Precious posts record cash flow in Q3 2024

Andean Precious Metals Corp. [APM-TSXV, ANPMF-OTCQB] said it strengthened its financial position in the third quarter of 2024, ending the period with US$98.1 million in cash, cash equivalents, marketable securities and short-term investments.

The company also generated record free cash flow of US$17 million despite additional capital expenditures incurred during the third quarter, supported by US$23.4 million in operating cash flow. Net income in Q3 was US$8.21 million or $0.05 per share.

“Our third quarter has been marked by record financial performance, driven by strong gross margin growth and significant free cash flow generation,’’ said Andean Executive Chairman and CEO Alberto Morales. He said the company’s cash position offers a sound foundation for future growth.

Andean’s key assets include the Golden Queen unit, which operates the Soledad Mountain mine and heap leach operation in Kern County, California.

The company also operates the only commercial silver oxide plant in Bolivia. The San Bartolome carbon in leach oxide processing plant is located beside the historic Cerro Rico Silver Mine. Cerro Rico is known as one of the world’s largest silver deposits and has been mined since the late 1500s for precious and base metals.

Golden Queen produced 14,025 gold equivalent ounces (AuEq) in the third quarter, up from 16,986 ounces in the second quarter of 2024. All in sustaining costs (AISC) in the quarter came in at US$2,300 an ounce. During the third quarter of 2024, operating cash costs were impacted by lower production due to a temporary suspension of the crusher circuit at Golden Queen, which impacted AuEq production. Furthermore, to improve reliability, the company is investing in new equipment, with additional CAPEX aimed at enhancing performance through late 2024 and 2025.

San Bartolome produced 1.2 million silver equivalent ounces (AgEq) in Q3, compared to 1.07 million AgEq ounces in the second quarter of 2024. The company achieved a strong cash operating margin of US$12.30 per ounce of silver equivalent sold and a gross margin ratio of 46.56%, based on reported costs of sales of US$18.87 million. Recovery increased in Q3 2024 to 83%, up from 79% in the previous quarter of 2024.

The company has reaffirmed its 2024 guidance of 60,000 AuEq ounces at Golden Queen and 5.0 million AgEq ounces at San Bartolome (+/-5.0%). The company expects consolidated production to be close to the lower end of the 2024 guidance.

On Monday, Andean shares rose 2.76% or $0.04 to $1.49.  The shares trade in a 52-week range of $2.18 and 55 cents.

The company is exploring its wholly-owned San Pablo and Rio Blanco gold projects and seeking other accretive opportunities in Bolivia and Latin America.

Last year, the company launched a 15,000-metre phase two drilling program at its San Pablo porphyry target in Bolivia.