Andean Precious targets 121% increase in AgEq production
Andean Precious Metals Corp. [APM-TSXV, ANPMF-OTCQB] said it expects its consolidated silver equivalent production (AgEq) to increase by 121% this year to 10.4 million ounces. The targeted increase is driven by a full year of production from the company’s Golden Queen unit in Southern California.
The company also said that after achieving its revised production targets in 2023, the company will now focus on streamlining and enhancing its operations in Bolivia and the U.S.
Andean reported a net profit of US$38.5 million or 24 cents a share in 2023, compared to a net loss of US$10.1 million or $0.06 in 2022. For the year ended December 31, 2023, revenue was US$125.3 million, US$17.3 million higher than in 2022.
Andean’s key assets include Golden Queen, 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.
Andean produced 4.7 million ounces of AgEq in 2023, which was in line with the company’s revised production guidance of 4.6 and 4.8 million ounces of AgEq. San Bartolome has fully transitioned to a material processing operation with a focus on sourcing high-grade, high margin material from third party sources
At Golden Queen, the company is targeting production of 60,000 ounces of gold equivalent (AuEq) based on current mining plans. As announced, the fire incident at Golden Queen in December 2023, will impact first quarter 2024 production. However, the company said production will ramp up to between 15,000 ounces AuEq and 18,000 ounces per quarter from the second quarter to the fourth quarter of his year.
The fire, which was reported on December 13, 2023, occurred within the secondary crusher circuit perimeter and more specifically in the screen deck area. The fire was mostly contained and quickly brought under control.
Mining activities at San Bartolome were suspended in the third quarter of 2023. Production of 5.0 million ounces of AgEq is therefore expected to be derived mostly from third-party purchased material sourced primarily from Cachi Laguna, Cerro Rico, Paca and other rural co-operatives.
On Wednesday, Andean shares eased 4.7% or $0.04 to 80 cents on volume of 574,730. The shares trade in a 52-week range of $1.07 and 53 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.
The San Pablo Project covers 650 hectares and is located in the Province of Antonio Quijarro, Department of Potosi.