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Highlights

  • Andean’s Q2 2024 saw a 358.6% sales increase, driven by higher production and pricing
  • Operating income rose to USD 9.7 million, turning around a loss in Q2 2023
  • The company aims to increase its Fine Minerals Processing Plant capacity to 1,500 tonnes per day by Q3 2024

Andean Precious Metals Corp. (TSXV: APM) has a market cap of CAD 273.33mn. The company is involved in the acquisition, development, exploration, and processing of mineral resource properties, with a primary focus on discovering silver and gold deposits.

In the second quarter of 2024, the company posted significant growth in its financial performance compared to the prior corresponding period (pcp). Sales surged to USD 69.7 million, a remarkable increase of 358.6% from USD 15.2 million, driven by higher production levels and higher realised prices. This sales performance also contributed to an improvement in operating income, which rose to USD 9.7 million, up from a operating loss of USD 1.0 million in Q2 2023.

Income before income tax also showed notable growth, rising 633.3% to USD 15.4 million from USD 2.1 million in pcp, supported by higher revenue, other income, and foreign exchange gains. Net earnings saw an even more substantial increase, reaching USD 9.3 million compared to just USD 0.1 million in pcp, a growth of 9200%. This boost in net income was mainly driven by higher sales and operating income, though it was slightly offset by a higher income tax expense.

Recent Business Update

In August, the company announced that its Fine Minerals Processing Plant was successfully commissioned on July 23, 2024. This marked an important milestone, with the plant currently operating at a capacity of 1,300 tonnes per day and plans to increase that to 1,500 tonnes by the end of Q3 2024.

Company Outlook

For FY24, the company is forecasted to produce approximately 115 gold equivalent kilo ounces and 10,429 silver equivalent kilo ounces.

Top 10 Shareholders

The top 10 shareholders of APM collectively hold approximately 82.25% of the company’s total shares. PMB Partners, L.P. and 2176423 Ontario, Ltd. are the largest shareholders, with stakes of around 53.37% and 15.47%, respectively.

Stock Information

APM's stock price has declined by approximately 7.64% over the past week and 18.07% over the last month. Additionally, the stock is currently trading above its 52-week high of CAD 2.18 and its 52-week low of CAD 0.55. As of November 11, 2024, the stock’s closing price is CAD 1.45.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 11, 2024. The reference data in this report has been partly sourced from EODHD/Others.