ANDEAN PRECIOUS METALS REPORTS FIRST QUARTER 2024 RESULTS Consolidated Production of 1.8 million AgEq oz. 2024 Guidance Reaffirmed
NEWS RELEASE
TSX-V: APM OTCQX: ANPMF
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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 An dean’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 o z 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.
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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.
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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
+/- 5%
2024 AgEq ounces Guidance4
+/- 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.
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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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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, Me tallurgy 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
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 ab out 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 can be identified by the use of words such as
“seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”,
“predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases
(including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this release include, but are not limited to, statements and information
regarding the Company's production and cost outlook and capital expenditure expectations for 2024.
Such forward-looking statements are based on a number of material factors and assumptions, including,
but not limited to: the Company's ability to carry on exploration and development activities; the
Company's ability to secure and to meet obligations under property and option agreements and other
material agreements; the timely receipt of required approvals and permits; that there is no material
adverse change affecting the Company or its properties; that contracted parties provide goods or
services in a timely manner; that no unusual geological or technical problems occur; that plant and
equipment function as anticipated and that there is no material adverse change in the price of silver,
costs associated with production or recovery. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause actual results, performance or achievements, or
industry results, to differ materially from those anticipated in such forward -looking statements. The
Company believes the expectations reflected in such forward -looking statements are reasonable, but
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no assurance can be given that these expectations will prove to be correct, and you are cautioned not
to place undue reliance on forward-looking statements contained herein.
Some of the risks and other factors which could cause actual results to differ materially from those
expressed in the forward -looking statements contained in this release include, but are not limited to:
risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of
mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and
feasibility studies, and the possibility that future exploration, development or mining results will not be
consistent with the Company’s expectations; risks relating to possible variations in reserves, resources,
grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as
plans continue to be refined; mining and development risks, including risks related to accidents,
equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated
difficulties with or interruptions in exploration and development; the potential for delays in exploration or
development activities or the completion of feasibility studies; risks related to the inherent uncertainty of
production and cost estimates and the potential for unexpected costs and expenses; risks related to
commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the
cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate
financing on a timely basis and on acceptable terms or delays in obta ining governmental or local
community approvals or in the completion of development or construction activities; risks related to
environmental regulation and liability; political and regulatory risks associated with mining and
exploration; risks related to the uncertain global economic environment; and other factors contained in
the section entitled “Risk Factors” in the Company’s MD&A dated March 31, 2024.
Although the Company has attempted to identify important factors that could cause actual results or
events to differ materially from those described in the forward -looking statements, you are cautioned
that this list is not exhaustive and there may be othe r factors that the Company has not identified.
Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements
included in this release if these beliefs, estimates and opinions or other circumstances should change,
except as otherwise required by applicable law.
Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures
This news release “specified financial measures” within the meaning of National Instrument 52 -112 –
Non-GAAP and Other Financial Measures Disclosure , specifically the non -GAAP financial measures,
non-GAAP ratios and supplementary financial measures described below. Management believes that
the use of these measures assists analysts, investors and other stakeholders of the Company in
understanding the costs associated with producing silver and gold, understanding the economics of
silver and gold mining, assessing operating performance, the Company’s ability to generate free cash
flow from current operations and on an overall Company basis, and for planning and forecasting of future
periods.
The specified financial measures used in this news release do not have any standardized meaning
prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even
as compared to other issuers who may be applying the World Gold Council guidelines. Accordingly,
these measures are intended to provide additional information and should not be considered in isolation
or as a substitute for measures of performance prepared in accordance with IFRS.
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The following is a description of the non-GAAP financial measures, non-GAAP ratios and supplementary
financial measures used in this news release:
(i) OCC includes total production cash costs incurred at the Company’s mining operations, which
form the basis of the Company’s cash costs, less by-product revenue.
(ii) AISC on a by-product basis per ounce is a non-GAAP ratio calculated as AISC on a by-product
basis divided by ounces of silver equivalent ounces sold for San Bartolomé operations. For
Golden Queen operations, AISC on a by-product basis per ounce is calculated on a by-product
basis divided by ounces of gold equivalent ounces sold. AISC on a by -product basis is a non -
GAAP financial measure calculated as the aggregate of production costs as recorded in the
consolidated statements of income (loss), refining and transport costs, cash component of
sustaining capital expenditures, lease payments related to sustaining assets, corporate general
and administrative expenses and accretion expenses. When calculating AISC on a by -product
basis, all revenue received from the sale of gold at San Bartolomé or silver at Golden Queen are
treated as a reduction of costs incurred. The Company believes that AISC represents the total
costs of producing silver and gold from current operations and provides the Company and other
stakeholders of the Company with additional information relating to the Company’s operational
performance and ability to generate cash flow.
(iii) AIC represents AISC plus growth capital and non-sustaining exploration and evaluation costs.
Non-sustaining exploration and evaluation costs represent costs associated with the Company’s
exploration portfolio, primarily relating to activities at the FDF and DSF. Certain other cash
expenditures including tax payments, debt payments, dividends and financing costs are also not
included in the calculation of AIC. The Company reports these measures on a per silver or gold
ounce sold basis.
(iv) CGOM per equivalent ounce sold is calculated by subtracting the average cash cost of sale (cost
of sales, allocated corporate administrative costs and business unit general and administration
cost) per equivalent ounce sold from the average selling price per equivalent ounce. It is a
measure of financial performance with no prescribed definition under IFRS and may not be
comparable to similar financial measures disclosed by other issuers.
(v) GMR is calculated by subtracting the cost of sale as reported in the income statement from the
revenue of equivalent ounces divided by revenue from sales of equivalent ounces. GMR is a
measure of financial performance with no prescribed definition under IF RS and may not be
comparable to similar financial measures disclosed by other issuers.
(vi) EBITDA is defined as earnings before interest, tax, depreciation and amortization. Adjusted
EBITDA is a non-GAAP financial measure calculated by adjusting net income (loss) as recorded
in the condensed interim consolidated statements of income (loss) for items not associated with
ongoing operations. The Company believes that this generally accepted industry measure allows
the evaluation of the results of income -generating capabilities and is useful in making
comparisons between periods. This measure adjusts for the impact of items not associated with
ongoing operations. A reconciliation of adjusted net income (loss) to the nearest IFRS measures
is set out below. Management uses this measure to monitor and plan for the operating
performance of the Company in conjunction with other data prepared in accordance with IFRS.
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(vii) Free cash flow is a non -GAAP financial measure calculated as cash provided by operating
activities from continuing operations less property, plant and equipment additions. A
reconciliation of free cash flow to the nearest IFRS measures is set out below. Ma nagement
uses this measure to monitor the amount of cash available to reinvest in the Company and
allocate for shareholder returns.
(viii) Average realized price is a supplementary financial measure calculated by dividing the
different components of precious metal sales by the number of ounces sold. Management uses
this measure to monitor its sales of precious metal ounces against the average market gold
price.
OCC
The following table provides a reconciliation of the OCC per ounce sold on a by -product basis to the
Financial Statements:
Golden Queen FY 2024 FY 2023
Costs of sales, as reported $ 18,997 $ -
Total OCC before by-product credits 18,997 -
Less: by-product silver credits (2,534) -
Total OCC $ 16,463 $ -
Divided by Au ounces sold 10,121 -
OCC per Au sold, on a by-product basis $ 1,627 $ -
AISC
The following table provides a reconciliation of the AISC per ounce on a by-product basis to the Financial
Statements:
Golden Queen Q1 2024 Q1 2023
OCC, net of by-product credits $ 16,463 $ -
General and administrative expenses 6 1,374 -
Allocated corporate general and
administrative expenses 538
Sustaining capital expenditures 111 -
Accretion for decommissioning liability 1,109 -
AISC $ 19,595 $ -
Divided by Au ounces sold 10,121 -
AISC per Au ounces sold, on a by-product
basis $ 1,936 $ -
AIC
The following table provides a reconciliation of the AIC per ounce on a by-product basis to the Financial
Statements:
Golden Queen Q1 2024 Q1 2023
AISC $ 19,595 $ -
.