Q1 2024 News Release vFINAL

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# Q1 2024 News Release vFINAL

Source: https://wp-andeanpm-2023.s3.ca-central-1.amazonaws.com/media/2024/05/14122138/Q1-2024-News-Release-vFINAL.pdf
Published: 2024-05-13T00:00:00+00:00
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## Content

# Q1 2024 News Release vFINAL
NEWS RELEASE
TSX-V: APM OTCQX: ANPMF
ANDEAN PRECIOUS METALS REPORTS FIRST QUARTER 2024 RESULTS
Consolidated Production of 1.8 million AgEq oz. 2024 Guidance Reaffirmed
TORONTO, ON – May 13, 2024 – Andean Precious Metals Corp. (“Andean” or the “Company”) (TSX-
V: APM) (OTCQX: ANPMF) is pleased to report its operating highlights and financial results for the three
months ended March 31, 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 interim financial statements for the three months ended March 31, 2024 (the “Financial
Statements”) which are available under the Company’s profile on SEDAR+ (www.sedarplus.ca).
First Quarter 2024 Highlights
• The Company produced a total 1.8 million silver equivalent ounces (“AgEq oz”)1, an 82%
increase from Q1 2023
• Golden Queen production exceeded the Company’s expectation by producing a total of
11,490 AuEq oz or 1.0 Moz AgEq despite the fire incident that occurred during Q4 2023.
Operating cash costs (“OCC”) per ounce sold and all-in sustaining costs (“AISC”) per ounce sold
for the quarter was $1,936/oz and $1,627/oz, respectively1
• $43.1 million of revenue reported for Q1 from the sale of total 1.8 million AgEq oz at an
average realized silver price of $23.64 per ounce
• Higher gross operating income. The Company recorded gross operating income of $3.2
million for Q1 2024 compared to $0.4 million for the same period of 2023
• Net loss after tax of $0.1 million compared to net income of $0.2 million in Q1 2013
• Strong liquid assets maintained to support ongoing strategic growth, totaling $72.8 million
as of March 31, 2024
• The Company reaffirms 2024 guidance of 60 Koz AuEq at Golden Queen and 5.0 Moz AgEq
at San Bartolome (see Company news release dated March 27, 2024)
• Share buyback continued. In the first quarter of 2024, The Company repurchased 5,333,291
common shares for $2.8 million through its normal course issuer bid (NCIB) program
• Strengthened management team with the addition of Marcos Holanda joining the Company as
Chief Operating Officer
Executive Chairman and Chief Executive Officer, Alberto Morales stated “Our acquisition of Golden
1
OCC and AISC 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.
1
NEWS RELEASE
TSX-V: APM OTCQX: ANPMF
Queen represents a significant transformation, effectively doubling our Company's size across critical
metrics such as revenue, production, reserves, and workforce. As we integrate Golden Queen into our
operations this quarter, our team has been focused on streamlining processes to enhance efficiency
and performance, in alignment with our annual plan for 2024. We anticipate the upcoming quarters will
reflect this integration, with improved production and enhanced operational efficiencies.”
Mr. Morales continued, “Despite the fire incident setback at Golden Queen and unusual weather
conditions in Bolivia, our consolidated production for Q1 2024 reached 1.8 million AgEq oz, displaying
resilience and adaptability. Golden Queen’s performance exceeded expectations with 11,490 AuEq oz,
while San Bartolome experienced lower production due largely to a historic rainfall season that affected
road transportation. However, we anticipate a significant production increase, revenue growth and
margin improvement in the upcoming quarters reaffirming our guidance in accordance with our year
plan. With a strong financial position, we continue to prioritize strategic growth initiatives to enhance
value to our shareholders, as exemplified by our ongoing share buyback program, and are continuing
to look into other growth opportunities. Welcoming Marcos Holanda as Chief Operating Officer, we're
strengthening and broadening our operations team. This will position us well to pursue new growth
opportunities and support the integration and optimization of our operations.”
Summary of Financial and Operating Results
(In thousands except for net income per share and oz) Q1 2024 Q1 20232 Change
Financial Performance
Revenue $ 43,070 $ 23,045 87%
Cost of sales 37,279 21,217 76%
Depreciation and depletion 2,630 1,454 81%
Gross operating income 3,161 374 745%
Net (loss) income after tax (76) 219 (135%)
Net income (loss) per share
-Basic (0.00) 0.00 100%
-Diluted (0.00) 0.00 100%
Net cash provided from (used in) operating activities (4,699) (4,323) (9)%
Free cash flow3 (8,091) (4,874) (65%)
EBITDA3 3,601 1,516 138%
Adjusted EBITDA3 2,939 1,373 114%
Capital expenditures 3,392 563 502%
Inventories 77,846 12,215 537%
Ending cash and cash equivalents 41,495 75,793 (45%)
Marketable securities and investments 29,853 5,162 478%
Total cash and short-term investments 71,348 80,955 (12%)
(In thousands except for metal price per oz) Q1 2024 Q1 20231 Change
Operating highlights
Production
Golden Queen
Silver (koz) 105 - 100%
Gold (oz) 10,259 - 100%
Total AuEq ounces produced (oz) 11,490 - 100%
2
Financial and operational performance results exclude Golden Queen for the period ended March 31, 2023 as Golden Queen was acquired
on November 24, 2023.
3
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.
2
NEWS RELEASE
TSX-V: APM OTCQX: ANPMF
San Bartolomé
Silver (koz) 812 978 (17%)
Gold (oz) 174 234 (26%)
Total AgEq ounces produced (koz) 827 997 (17%)
Consolidated
Golden Queen AgEq ounces (koz) 1,009 - 100%
San Bartolomé AgEq ounces (koz) 827 997 (17%)
Total Consolidated AgEq ounces produced (koz) 1,836 997 84%
Sales
Golden Queen
Silver (koz) 108 - 100%
Gold (oz) 11,121 - 100%
Total AuEq ounces sold (oz) 11,343 - 100%
San Bartolomé
Silver (koz) 811 982 (17%)
Gold (oz) 170 215 (21%)
Total AgEq ounces sold (koz) 826 1,000 (17%)
Consolidated ounces sold
Golden Queen AgEq ounces (koz) 996 - 100%
San Bartolomé AgEq ounces (koz) 826 1,000 (17%)
Total Consolidated AgEq ounces sold (koz) 1,822 1,000 82%
Average realized silver price ($/oz) $ 23.64 $ 23.04 3%
Average market silver price ($/oz) $ 23.35 $ 21.73 7%
Average realized gold price ($/oz) $ 2,074 $ 1,930 7%
Average market gold price ($/oz) $ 1,942 $ 1,801 8%
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 ounces Guidance4 2024 AgEq ounces Guidance4
+/- 5% +/- 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
4
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.
3
NEWS RELEASE
TSX-V: APM OTCQX: ANPMF
Operating cash cost (“OCC”) per gold ounce sold, on a by-product credit basis5 $ 1,500
All-in sustaining costs (“AISC”) per gold ounce sold, on a by-product credit basis5 $ 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. 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 at March 31, 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
Q1 2024 Conference Call and Webcast
Management will host a conference call and webcast on Tuesday, May 14, 2024 at 9:00 am ET to
discuss the results.
Participants may join the conference call via webcast or through the following dial-in numbers:
• Participants may listen to the webcast by registering on our website at www.andeanpm.com or via
the following link http://www.gowebcasting.com/13321
• Participants may also listen to the conference call by calling North American toll free 1-844-763-
8274, or 1-647-484-8814 outside of the U.S. or Canada
• An archived replay of the webcast will be available for 90 days at
http://www.gowebcasting.com/13321 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
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NEWS RELEASE
TSX-V: APM OTCQX: ANPMF
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 September 2023.
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

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