Calle 14 de Calacoto y San- chez Bustamante Edif. Metrobol, Piso 1 La Paz Mexico Ignacio L. Vallarta No. 811 Sur Col. El Mirador Centro Monterrey, N.L. 64070 Canada
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
ANDEAN PRECIOUS METALS REPORTS SECOND QUARTER
RESULTS AND REAFFIRMS 2022 GUIDANCE
Production efficiencies and cost reduction measures
are being implemented to ensure production and cost guidance are met
TORONTO, Ontario, August 11, 2022 – Andean Precious Metals Corp. (TSX-V: APM)
(OTCQX: ANPMF) (“Andean” or the “Company”) today announced its financial and
operational results for the three and six months ended June 30, 2022 and provided a strategic
and business update. All currency amounts are expressed in U.S. dollars unless indicated
otherwise.
Highlights
• Debt-free balance sheet with $88.4 million in cash and $4.0 million in marketable se-
curities as at June 30, 2022
• Higher average head grade of 126 g/t silver compared with 115 g/t in Q2 2021
• Consistent processing plant throughput of 0.4 million tonnes, same as Q2 2021
• Revenues of $28.9 million from sales of 1.3 million silver equivalent ounces1 with cost
of sales of $24.5 million
• All-in sustaining costs (“AISC”)2 per silver ounce sold of $21.38; H1 2022 AISC per
ounce of $20.15
• Adjusted EBITDA2 of negative $0.7 million driven by lower revenues from a significant
decline in silver prices throughout Q2 2022; net loss of $6.2 million or $0.04 per share
• As part of its focus on growth, Andean increased its management bench strength with
the appointments of Ben McCormick as Vice President of Treasury and Corporate De-
velopment and Patricia Moran as Vice President of Investor Relations
“Andean finished the quarter with a strong balance sheet, including over $90 million in cash
and marketable securities, and no debt,” Simon Griffiths, President and CEO of Andean
commented. “Production and costs are expected to improve in the latter part of the year
following implementation of production efficiency measures. Additionally, we are closely
evaluating our cost base and are addressing input costs to offset soft silver prices. As a result,
we are reaffirming our 2022 production and cost guidance.”
Mr. Griffiths added, “As we enter the second half of the year, our strong cash position
provides a measure of insulation against wider economic volatility and allows us to act upon
strategic growth opportunities. Specifically, we remain committed to extending the mine life
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
at San Bartolomé by identifying new oxide feed sources. We will also continue to increase
our efforts to secure accretive M&A transactions in Bolivia and the wider America’s region.”
Operational and Financial Results
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Financial Performance2
Revenue $ 28,892 $ 38,038 $ 58,780 $ 76,385
Cost of sales $ 24,532 $ 24,373 $ 45,179 $ 49,019
Income from mine operations $ 3,613 $ 11,289 $ 10,037 $ 22,566
Net income $ (6,184) $ 3,870 $ (3,909) $ 2,348
Net cash from operating activities $ 45 $ 11,399 $ 2,748 $ 22,651
Free cash flow1 $ (633) $ 10,306 $ 1,579 $ 21,203
Adjusted EBITDA1 $ (715) $ 10,250 $ 4,653 $ 20,548
Ending cash and cash equivalents $ 88,449 $ 79,013 $ 88,449 $ 79,013
Capital expenditures $ 634 $ 1,093 $ 1,169 $ 1,448
Cash operating costs (by-product)2 $ 18.68 $ 16.47 $ 17.62 $ 16.17
All-in sustaining costs (by-product)2 $ 21.38 $ 18.97 $ 20.15 $ 18.15
1 Free cash flow, Adjusted EBITDA, cash operating costs (“COC”) and AISC are measures of financial performance with no
prescribed definition under IFRS. Refer to the "Non-IFRS Measures" section of this release for further details.
2 Figures in this table are presented in thousands except for COC and AISC.
In the second quarter of 2022, Andean sold 1.3 million silver equivalent ounces at an average
realized price of $22.24 per silver ounce and generated $28.9 million in revenue. This
compares to 1.4 million silver equivalent ounces sold at a higher average realized price of
$26.71 per silver ounce, for revenue of $38.0 million in Q2 2021.
Cost of sales, which comprise the full cost of operations excluding depreciation and depletion,
were $24.5 million during the quarter, compared to $24.4 million in Q2 2021.
General and administrative expenses for the quarter increased to $3.6 million from $2.2
million in Q2 2021, primarily driven by increased corporate development activity.
Net loss for the quarter was $6.2 million, or negative $0.04 per share, compared to net income
of $3.9 million, or $0.02 per share, in Q2 2021. The year-over-year decrease of $10.1 million
was mainly due to lower silver prices realized and a reduction in silver production volumes.
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Operational Performance
Tonnes mined1 (k dmt) 540 473 1,019 887
Average ore mined grade (Ag g/t) 102 96 99 99
Tonnes purchased2 (k dmt) 117 136 234 266
Average purchased ore grade (Ag g/t) 221 198 216 195
Tonnes milled3 (k dmt) 407 430 813 850
Daily average throughput (dmt) 4,769 4,888 4,714 4,830
Average head grade (Ag g/t) 126 115 121 116
Silver recovery (%) 75 84 76 85
Silver production (k ozs) 1,236 1,326 2,387 2,711
Gold production (ozs) 902 1,314 1,800 2,818
Silver equivalent production4 (k ozs) 1,310 1,415 2,530 2,901
Silver sales (k ozs) 1,225 1,334 2,398 2,751
Gold sales (ozs) 900 1,326 1,571 2,577
Silver equivalent sales4 (k ozs) 1,299 1,424 2,526 2,924
1 Tonnes mined includes ore mined from the Company’s permitted areas, including Santa Rita, Huacajchi, Antuco, El Asiento,
Monserrat and Tatasi-Portugalete during 2022 and 2021. Tonnes mined is reported as run-of-mine (“ROM”).
2 Tonnes purchased includes oxidized material purchased from local mining cooperatives as well as through the Company’s
contract with RALP.
3 Tonnes milled is reported as +8 mesh.
4 Silver equivalent production and silver equivalent sales include gold production and sales, respectively. Equivalent ounces are
calculated using the Company’s realized gold and silver prices during the referenced period.
Silver equivalent production by source (kozs) Q2 2022 Q2 2021 YTD 2022 YTD 2021
Pallacos 329 526 842 1,127
Mine reclamation stockpiles 305 200 395 416
Cachi Laguna 242 128 414 234
Oxide purchases 434 561 879 1,124
Total 1,310 1,415 2,530 2,901
2022 Outlook and Guidance
Andean will continue to process ore from its surface deposits (termed “Pallacos”) at San
Barolomé and reclaim silver bearing mine waste stockpiles. While silver recoveries in the
processing plant were impacted throughout the quarter, recoveries have begun to increase
and silver equivalent production is expected to normalize during the second half of 2022.
These factors, together with an ongoing review of cost reduction opportunities, are expected
to lower unit costs.
The Company also continues to advance its technical understanding of the processing
options to recover silver and tin at the San Bartolomé fines disposal facility (“FDF”) and the
dry-stack tailings (“DSF”). Andean has now received the latest test work from the FDF study
and has also completed a drill programme on the DSF to define tonnes and grade. A
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
dedicated press release will be issued shortly to provide an update on the progress of these
technical studies.
Andean reiterates that it expects fiscal 2022 silver equivalent production to be between 5.3
and 5.8 million ounces at an AISC (by-product) of $17.25 to $18.75 per silver ounce sold.
Reasons for lower metallurgical recoveries at one of the mill feed sources have been
identified and the corrective actions taken, which is expected to contribute to lower AISC in
the second half of the year. The following table sets out Andean’s year-to-date results against
its full year 2022 production and AISC guidance:
YTD 2022 Actual 2022 Guidance1
Silver equivalent production 2.5M oz 5.3M to 5.8M oz
AISC (by-product) $20.15/Ag oz $17.25 to $18.75/Ag oz
1 Andean’s commodity price assumptions supporting this estimate are $23.00/ounce silver and $1,750/ounce gold.
Andean’s complete financial statements and management’s discussion & analysis are
available for viewing on its website and under its company profile on SEDAR at
www.sedar.com.
Expanding the Team
Andean is pleased to welcome Ben McCormick as Vice President of Treasury and Corporate
Development. Ben joins Andean from Rincon where he led the successful sale of the lithium
assets in Argentina to Rio Tinto. Prior to Rincon, Ben was employed at Newcrest Mining for
15 years.. Ben will be focusing on Andean’s growth and capital strategy.
In addition, Patricia (Trish) Moran has joined as Vice President of Investor Relations, bringing
over 25 years’ experience to Andean. Prior to joining Andean, she was with Endeavour Silver
as Interim Head of Investor Relations and was Vice President of Investor Relations at
Teranga Gold. Trish will refresh the IR strategy, focusing on attracting new investors to the
Company.
“I would like to welcome Trish and Ben to the team,” Simon Griffiths said. “Their combined
prior experience and deep industry expertise will prove invaluable as we accelerate our
efforts to execute on M&A objectives and deliver value to our stakeholders.”
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
Notice of Conference Call and Webcast
Management of Andean will host a conference call today, August 11, 2022, at 8:30 a.m. ET
to discuss its second quarter financial results. All interested parties may join the conference
call by dialing 1-800-319-4610 in Canada and the United States, or 1-604-638-5340
internationally, approximately 15 minutes prior to the call to secure a line.
A live audio webcast of the call will be available at https://bit.ly/Q22022APM. Please connect
at least 15 minutes prior to the conference call to ensure adequate time for any software
download that may be required to join the webcast. An archived replay of the webcast will be
available for 90 days.
Qualified Person Statement
The scientific and technical content disclosed in this press release was reviewed and
approved by Donald J. Birak, Independent Consulting Geologist to the Company, a Qualified
Person as defined by Canadian National Instrument 43-101, Registered Member, Society for
Mining, Metallurgy and Exploration (SME), Fellow, Australasian Institute of Mining and
Metallurgy (AusIMM).
About Andean Precious Metals Corp.
Andean Precious Metals is a Canadian headquartered, growth-focused silver producer that
owns and operates the San Bartolomé project located in the department of Potosí, Bolivia.
San Bartolomé has been operating continuously since 2008, producing an average of over
five million ounces of silver equivalents per year. The Company is also exploring its wholly
owned San Pablo and Rio Blanco gold projects and seeking other accretive opportunities in
Bolivia and Latin America. Andean is committed to fostering safe, sustainable and
responsible operations. For more information, please visit www.andeanpm.com.
Company Contact North America Europe
Trish Moran
VP Investor Relations
T: +1 416 564 4290
Anna Speyer
NATIONAL Capital Markets
T: +1 416-848-1376
Charles Vivian
Tavistock
T: +44 20 7920 3150
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.
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
Caution Regarding Forward-Looking Statements
This press release contains statements which constitute "forward-looking statements" and "forward-looking infor-
mation" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including
statements regarding the plans, intentions, beliefs and current expectations of Andean with respect to future busi-
ness activities and operating performance. Forward-looking statements are often identified by the words "may",
"would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expres-
sions. Forward-looking statements in this news release include without limitation, statements regarding production
and costs improving in the latter part of the year, Andean’s commitment to extending the mine life at San Bar-
tolomé by identifying new oxide feed sources, Andean’s increase in efforts to secure accretive M&A transaction
in Bolivia and in the wider Latin America region, statements made under the heading Andean’s 2022 Outlook and
Guidance, statements regarding Andean’s plans to continue to process ore from its surface deposits at San Bar-
tolomé and reclaim silver bearing mine waste stockpiles, Andean’s expectation that silver equivalent production
will normalize in the second half of 2022, Andean’s expectation that unit costs will be lower through year end, the
statement regarding Andean’s position for growth in the future and statements regarding Andean’s fiscal 2022
production and AISC guidance.
Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect An-
dean's expectations, estimates or projections concerning future results or events based on the opinions, assump-
tions and estimates of management considered reasonable at the date the statements are made. Although An-
dean believes that the expectations reflected in such forward-looking statements are reasonable, such statements
involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable
factors could have material adverse effects on future results, performance or achievements of Andean. Among
the key factors that could cause actual results to differ materially from those projected in the forward-looking
statements are the following: changes in general economic, business and political conditions, including changes
in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; com-
pliance with extensive government regulation; the risks and uncertainties associated with foreign markets. These
forward-looking statements may be affected by risks and uncertainties in the business of Andean and general
market conditions, including COVID-19 and the ongoing conflict between Russia and Ukraine and any actions
taken by other countries in response thereto, such as sanctions or export controls.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-
looking statements prove incorrect, actual results may vary materially from those described herein as intended,
planned, anticipated, believed, estimated or expected. Although Andean has attempted to identify important risks,
uncertainties and factors which could cause actual results to differ materially, there may be others that cause
results not to be as anticipated, estimated or intended and such changes could be material. Andean does not
intend, and does not assume any obligation, to update the forward-looking statements except as otherwise re-
quired by applicable law.
Non-IFRS Measures
COC and AISC
COC and AISC are non-IFRS performance measures. COC include total production cash costs incurred at the
Company’s mining operations, which form the basis of the Company’s cash costs, less by-product revenues from
gold sales. AISC includes COC plus sustaining capital expenditures, general and administrative expenses, sus-
taining exploration and evaluation costs and reclamation cost accretion. Reclamation and closure costs represent
the gradual unwinding of the discounted liability to rehabilitate the area around San Bartolomé at the end of its
mine life. The Company reports these measures on a silver ounce sold basis. The Company believes that AISC
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
represents the total costs of producing silver from current operations and provides the Company and other stake-
holders of the Company with additional information relating to the Company’s operational performance and ability
to generate cash flows. These measures are used by management to assess the Company’s performance and
its expected future performance; however, these measures do not have any standardized meaning. As such,
there are likely to be differences in the method of computation when compared to similar measures presented by
other issuers. Accordingly, these measures are intended to provide additional information and should not be con-
sidered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The following table provides a reconciliation of the cash operating cost per silver ounce sold on a by-product
basis:
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Costs of sales, as reported $ 24,532 $ 24,373 $ 45,179 $ 49,019
Total cash operating cost before by-product
credits 24,532 24,373
45,179
49,019
Less: by-product gold credits (1,648) (2,408) (2,931) (4,524)
Total cash operating costs 22,884 21,965 42,248 44,495
Divided by silver ounces sold (k ozs) 1,225 1,334 2,398 2,751
COC per silver ounce sold, on a by-product
basis $ 18.68 $ 16.47 $ 17.62 $ 16.17
The following table provides a reconciliation of the all-in sustaining cost per silver ounce on a by-product basis:
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Cash costs, net of by-product credits $ 22,884 $ 21,965 $ 42,248 $ 44,495
General and administrative expenses1 2,352 1,999 4,332 3,479
Sustaining capital expenditures2 634 1,093 1,081 1,448
Lease payments 44 - 88 -
Accretion for decommissioning liability 282 248 564 477
Sustaining exploration and evaluation2 - 1 - 19
All-in sustaining costs 26,196 25,306 48,313 49,918
Divided by silver ounces sold (k ozs) 1,225 1,334 2,398 2,751
AISC per silver ounce sold, on a by-product
basis $ 21.38 $ 18.97 $ 20.15 $ 18.15
1 For the three and six months ended June 30, 2022, general and administrative expenses exclude corporate development costs of $749 and
$1,056, respectively; and non-cash share-based compensation costs of $446 and $1,034, respectively.
2 Sustaining capital expenditures and exploration and evaluation reflect costs necessary to maintain current production.
Adjusted EBITDA
The Company has included adjusted EBITDA as a non-IFRS performance measure. The Company excludes
certain items from net income to provide a measure, which allows the Company and investors to evaluate the
results of the underlying core operations of the Company and its ability to generate cash flows. As this measure
does not have any standardized meaning, there are likely to be differences in the method of computation when
compared to similar measures presented by other issuers. Accordingly, it is intended to provide additional infor-
mation and should not be considered in isolation or as a substitute for measures of performance prepared in
accordance with IFRS.
Bolivia
Calle 14 de Calacoto y San-
chez Bustamante
Edif. Metrobol, Piso 1
La Paz
Mexico
Ignacio L. Vallarta No. 811 Sur
Col. El Mirador Centro
Monterrey, N.L.
64070
Canada
161 Bay Street, Suite 2700
Toronto, Ontario
M5J 2S1
andeanpm.com
Leveraging a position of strength in Bolivia.
The following table provides a reconciliation of adjusted EBITDA:
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Net income (loss) $ (6,184) $ 3,870 $ (3,909) $ 2,348
Add:
Income taxes 1,501 7,497 4,159 13,161
Finance costs 339 327 660 608
Depreciation and depletion 747 2,376 3,564 4,800
EBITDA $ (3,597) $ 14,070 $ 4,474 $ 20,917
Add: RTO Transaction costs - - - 3,451
Add: Change in fair value of marketable se-
curities1 2,882 -
179
-
Less: Santacruz loan recovery - (3,820) - (3,820)
Adjusted EBITDA $ (715) $ 10,250 $ 4,653 $ 20,548
1 These amounts refer to mark-to-market adjustments on securities held of Santacruz Silver.
Free Cash Flow
The Company has included free cash flow as a non-IFRS performance measure. The Company considers oper-
ating cash flow plus capital expenditures to provide a measure, which allows the Company and investors to eval-
uate the ability of the Company to generate cash flows. As this measure does not have any standardized meaning,
there are likely to be differences in the method of computation when compared to similar measures presented by
other issuers. Accordingly, it is 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.
The following table provides a reconciliation of free cash flow:
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Operating cash flows $ 45 $ 11,399 $ 2,748 $ 22,651
Less:
Expenditures on property, plant and
equipment (634) (1,064)
(1,081)
(1,312)
Lease payments (44) (29) (88) (136)
Free cash flow $ (633) $ 10,306 $ 1,579 $ 21,203
Realized Gold and Silver Prices
The Company has included realized prices as a non-IFRS performance measure. The Company quantifies aver-
age realized price as revenue per the Statement of Operations divided by ounces of silver or gold sold. As this
measure does not have any standardized meaning, there are likely to be differences in the method of computation
when compared to similar measures presented by other issuers. Accordingly, it is 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.
The following table provides a reconciliation of realized prices:
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Silver revenue $ 27,244 $ 35,630 $ 55,849 71,861
Silver oz sold (k ozs) 1,225 1,334 2,398 2,751
Average realized silver price $ 22.24 $ 26.71 $ 23.29 26.12
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Gold revenue $ 1,648 $ 2,408 $ 2,931 4,524
Gold oz sold (ozs) 900 1,326 1,571 2,577
Average realized gold price $ 1,831 $ 1,815 $ 1,866 $ 1,755