Andean Precious Metals Corp · TSX:APM
Andean Precious Metals — Investor Presentation (October 2024)
37 slides from Andean Precious Metals's investor presentation, October 2024
Slide 1: Building a Mid-Tier Precious Metals Producer
APM ANPMF Building a Mid-Tier Precious Metals Producer OCTOBER 2024
Slide 2: Legal Disclaimers
Legal Disclaimers This presentation is informational purposes only and is solely to assist equivalents. The Company uses net debt to provide investors with Risk Factors interested parties in determining whether to seek additional transparency regarding the liquidity position of the Company. The The
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements and information contained in this presentation differ materially from those anticipated in forward-looking statements of economic evaluations; results of initial feasibility, pre-feasibility and constitute forward-looking information or forward-looking s
Slide 4: Building a Mid-Tier Producer
Building a Mid-Tier Producer
Slide 5: Investment Rationale 2023/2024: Pursuing Transformational Growth
Investment Rationale 2023/2024: Pursuing Transformational Growth - Objective met and going for more… Objective 2023/2024: Improve the company’s risk profile via a responsible M&A deal with little to no dilution to shareholders while always maintaining a strong cash balance. June 2023 June 2024 • Sin
Slide 6: Two Producing Assets in the Americas; Headquartered in Mexico
Two Producing Assets in the Americas; Headquartered in Mexico CALIFORNIA, USA Golden Queen MONTERREY, MEXICO 270 110 Corporate Headquarters Employees* Contractors* 21 Employees* POTOSI, BOLIVIA San Bartolomé 210 90 Employees* Contractors* *as at June 30, 2024 6
Slide 7: Increased Mineral Reserve and Resource Base
Increased Mineral Reserve and Resource Base Gold (oz Au) Silver (oz Ag) 2P M&I Inferred Reserves (including 2P) 2P M&I Inferred Reserves (including 2P) 822,000 19.0 11.9 11.2 484,675 6.9 5.2 53,000 0.7 San Golden San Golden San Golden Golden Queen Golden Queen Golden Queen Bartolomé Queen Bartolomé
Slide 8: Production Growth Expected in 2024 with ~50/50 Ag and Au Mix
Production Growth Expected in 2024 with ~50/50 Ag and Au Mix San Bartolomé Historical Annual Production Golden Queen Historical Annual Production (koz AgEq*) (koz AgEq*) 5,896 5,791 5,531 423 4,946 4,837 433 4,622 285 5,001 486 213 658 4,239 502 727 5,246 5,473 5,358 4,788 4,460 4,179 4,120 3,512 52
Slide 9: Strong Balance Sheet Provides Foundation for Growth Strategy
Strong Balance Sheet Provides Foundation for Growth Strategy Poised for a Significant Re-Rate Opportunity Positive Performance Strong Liquidity and Balance Sheet Focused on driving future $87M in liquid assets* and cash and profitability from negative net debt* (-$23M) two producing assets Compellin
Slide 10: Golden Queen
Golden Queen California, USA
Slide 11: Golden Queen: A Fully Permitted Producing Asset
Golden Queen: A Fully Permitted Producing Asset CALIFORNIA U S A Mineral Reserve & Resource Estimate (as of September 30, 2023) 485 822 53 5 San Francisco *Connected to the South California Edison electrical koz Au koz Au koz Au Years grid. Water production wells and a water treatment plant Proven &
Slide 12: Targeting Near- to Mid-Term Cost Savings
Targeting Near- to Mid-Term Cost Savings Mining Costs • New mine plan is expected to identify opportunities for cost savings and efficiency improvements. • Purchase of new trucks will reduce overhaul and contract maintenance costs while increasing availability. Mine Optimization • Optimize the drill
Slide 13: Exploration Potential
LEGEND Exploration Potential N Current Topography Project Boundary Reserves Pit Resources Pit Soledad/Starlight SE Extension Target Zone Alphason Target Zone 1 Silver Queen SE Extension Sheeted Vein Target Landon Clay Target • 5 DD holes completed along the vein system PHASE 1 Soledad/Starlight Targ
Slide 14: Creating Value at Golden Queen
Creating Value at Golden Queen Exploration Mine optimization, Expand aggregate ore control, cost savings & business operational efficiencies 14
Slide 15: San Bartolomé
San Bartolomé Potosi, Bolivia
Slide 16: Bolivia’s Largest Oxide Processing Facility
Bolivia’s Largest Oxide Processing Facility Mineral Reserve & Resource Estimate* (as of December 1, 2023) Bolivia 11.9 19.0 5.0 4.6 Moz Ag Moz Ag Moz Ag Years Proven & Probable M+I Resources Inferred Operating Reserves Including 2P Reserves Resources Life (5.1Mt grading 93 g/t Ag) (6.1Mt grading 98
Slide 17: Averaging ~5 Moz Silver Equivalent Production Since Commissioning in 2008
Averaging ~5 Moz Silver Equivalent* Production Since Commissioning in 2008 Silver Equivalent* Production 5.9 Moz 5.8 Moz 5.0 Moz 5.0 Moz 4.7 Moz FY 2020 FY 2021 FY 2022 FY 2023 FY 2024E * Silver equivalent ounces include gold ounces and are converted to a silver equivalent based on a ratio of realiz
Slide 18: Fines Disposal Facility Project
Fines Disposal Facility Project • Fully commissioned within the budget of $6.7M • Commissioned Fine Minerals Processing Plant on July 23, 2024, operating at 1,300 tonnes/day, ramping to 1,500 tonnes/day by Q3 2024 • FDF deposit holds 3.3M tonnes of proven and probable reserves grading 58 g/t silver
Slide 19: Driving Cash Flow & Profitability From Various Sources Throughout the Country
Driving Cash Flow & Profitability From Various Sources Throughout the Country • San Bartolomé has successfully transitioned from conventional mining to strictly processing Feed Material Sourcing • During 2023, the Company signed mid to long-term contracts for 1 Cachi Laguna ~1Mt of mill feed, includ
Slide 20: Third-Party Material Purchasing: Focused on Operating Margin
Third-Party Material Purchasing: Focused on Operating Margin • In 2024, 100% of feedstock is being sourced from either FDF or third-party purchased material • Sliding scale payment calculation based on: ̶ Silver spot price ̶ Ore grade ̶ Weight / tonnage ̶ Recovery ̶ Transportation costs • Process fr
Slide 21: Pursuing Growth
Additional oxides from Bolivian government Tailings reprocessing SELECTIVELY BUT FIRMLY Pursuing Growth IN BOLIVIA New M&A purchase contracts for third-party ore 21
Slide 22: Sustainability: Working Towards International Standards
Sustainability: Working Towards International Standards SOCIAL LICENSE • Our social license to operate in Bolivia allows us to enhance the social and economic development of the communities associated with our operations • We work with communities and other stakeholders to build IMPORTANT TO LOCAL A
Slide 23: 2024 Production on Track to double to 10.4 Moz from 5.2 Moz in 2023
2024 Production on Track to double to 10.4 Moz from 5.2 Moz in 2023 2024 Production Guidance (koz) 2024 Guidance Range +/- 5% -5% 5% Golden Queen gold equivalent ounces* 60 57 63 San Bartolomé silver equivalent ounces* 5,000 4,750 5,250 Consolidated silver equivalent ounces* 10,429 9,908 10,950 * Si
Slide 24: Capital Structure & Shareholders
Capital Structure & Shareholders Capital Structure Andean Share Ownership $64M / -$23M ETF 5% Debt / Net Debt* (as at June 30, 2024) INSTITUTIONS 28% ~$87M & RETAIL Liquid Assets* (as at June 30, 2024) ERIC SPROTT 14% 149.6M Shares Outstanding (as at June 30, 2024) INSIDERS 53% C$235M Market Capital
Slide 25: Poised for Significant Re-Rate Opportunity
Poised for Significant Re-Rate Opportunity Enterprise Value vs. Production (Moz AgEq) 1,400 EV/Production Multiple ORL $/oz (Bubble Size) 1,200 $100/oz $50/oz 1,000 $25/oz KNT MAG Enterprise Value ($M) 800 WDO SIL 600 VGCX EDR KRR 400 GATO MUX SVM 200 FTCO CERT MND * GORO - ELVT (200) - 2 4 6 8 10 1
Slide 26: Building a Mid-Tier Precious Metals Producer Focused on the Americas
Advancing Our Vision Building a Mid-Tier Precious Metals Producer Focused on the Americas CREATE ADDITIONAL VALUE • Exploration • New ore contracts PRODUCTION PRODUCTION • Convert resources San Bartolomé Golden Queen • Mine optimization (Bolivia) (USA) • Ore control • Operating efficiencies • Cost s
Slide 27: Building a Mid-Tier Precious Metals Producer
APM ANPMF Building a Mid-Tier Precious Metals Producer For more information, please contact: Amanda Mallough Director, Investor Relations T: 647-463-7808 E: amallough@andeanpm.com
Slide 28: Appendix
JAN Appendix
Slide 29: Board of Directors
Board of Directors ALBERTO MORALES GRANT ANGWIN MICHELE ASHBY Executive Chair & CEO Lead Independent Director Independent Director Member of Nomination & Corporate Chair of Health, Safety, Environment, Social and Governance Committee Sustainability Committee, Chair of Compensation Committee, Member
Slide 30: Senior Leadership Team
Senior Leadership Team ALBERTO MORALES JUAN CARLOS SANDOVAL Executive Chairman & CEO MARCOS HOLANDA CFO COO Founder of Andean Precious Metals More than two decades of banking, A mining engineer with 35 years’ finance, accounting and M&A experience experience in the industry mostly focused on mining,
Slide 31: FY 2024 Cost Guidance
FY 2024 Cost Guidance Cost Guidance Range 2024 Guidance (+/-5%) -5% 5% Golden Queen (on a by-product credit basis) Operating cash cost per Au Eq oz produced $ 1,500 $ 1,425 $ 1,575 All-in sustaining costs per Au Eq oz sold $ 1,750 $ 1,663 $ 1,838 San Bartolomé Cash gross operating margin per Ag Eq o
Slide 32: FY 2024 Capex Guidance
FY 2024 Capex Guidance Capex Guidance 2024 Guidance Range +/- 5% -5% 5% Sustaining capital Golden Queen $ 10,300 $ 9,785 $ 10,815 San Bartolomé $ 3,400 $ 3,230 $ 3,570 Total sustaining capital $ 13,400 $ 12,730 $ 14,070 Growth capital Golden Queen $ 9,500 $ 9,025 $ 9,975 San Bartolomé $ 840 $ 798 $
Slide 33: San Bartolomé Flow Sheet
FAST FACTS: FY 2023 San Bartolomé Flow Sheet Ore milled: 1.5 Mt Head grade: 124 g/t Silver produced: 4.7 Moz Conventional Comminution, Leach (Cyanide), Merrill-Crowe Process, Refining Flowsheet Recovery: 78% • San Bartolomé mill capacity: 5,000 dmt/d • Pre-process / wash the feed ̶ to remove the Ag
Slide 34: Golden Queen Flow Sheet
Golden Queen Flow Sheet Heap Leach Pad and Merrill-Crowe Processing Facility • Open pit mine ore feeds primary jaw crusher at nominal rate of 12,329 tpd or 4.5 Mtpa • Primary crushed ore ground down to -5½” and stored at coarse ore stockpile • Once in the secondary cone crusher, the ore is further r
Slide 35: Qualified Persons
Qualified Persons Qualified Person for Andean Precious Metals Qualified Persons for Golden Queen mineral Qualified Persons for San Bartolomé mineral reserves and resources reserves and resources The scientific and technical content disclosed herein The following people served as the Qualified The fo
Slide 36: Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures
Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures This presentation contains “specified financial measures” within the meaning of The following is a description of the non-GAAP financial measures, non-GAAP National Instrument 52-112 – Non-GAAP and Other Financial Measures rati
Slide 37: Building a Mid-Tier Precious Metals Producer
APM ANPMF Building a Mid-Tier Precious Metals Producer For more information, please contact: Amanda Mallough Director, Investor Relations T: 647-463-7808 E: amallough@andeanpm.com
Andean Precious Metals — Investor Presentation (October 2024) on 6ix