Andean Precious Metals Corp · TSX:APM
Andean Precious Metals — Investor Presentation (March 2024)
32 slides from Andean Precious Metals's investor presentation, March 2024
Slide 1: Building a Mid-Tier Precious Metals Producer
APM ANPMF Building a Mid-Tier Precious Metals Producer Investor Presentation March 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 Known and unknown risks, uncertainties and other factors may cause the geology, grade and continuity of mineral deposits and conclusions constitute forward-looking information or forward-looking statements a
Slide 4: Two Producing Assets in the Americas; Headquartered in Mexico
Two Producing Assets in the Americas; Headquartered in Mexico CALIFORNIA, USA Golden Queen MONTERREY, MEXICO 250 20 Corporate Headquarters Employees* Contractors* 27 Employees* POTOSI, BOLIVIA San Bartolomé 232 20 Employees* Contractors* *as at December 31, 2023 4
Slide 5: 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 $72.8M in liquid assets* and cash and profitability from negative net debt* of ($17.4M) two producing assets (as
Slide 6: San Bartolomé
San Bartolomé Potosi, Bolivia
Slide 7: 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 8: 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 9: Pursuing Growth
Additional oxides from Bolivian government Tailings reprocessing ACTIVELY Pursuing Growth IN BOLIVIA New M&A purchase contracts for third-party ore 9
Slide 10: 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 Recovery: 78% Conventional Comminution, Leach (Cyanide), Whole Feed Merrill-Crowe Process, Refining Flowsheet Run-of-Mine Ore Merril–Crowe Plant • San Bartolomé mill capacity: 5,000 dmt/d Apr
Slide 11: Driving Cash Flow & Profitability Through Long-Term Feed Purchase Contracts
Driving Cash Flow & Profitability Through Long-Term Feed Purchase Contracts • San Bartolomé has successfully transitioned from conventional mining to strictly processing Feed Material Sourcing • During 2023, the Company signed mid to long-term 1 Cachi Laguna contracts for ~1Mt of mill feed, includin
Slide 12: Third-Party Material Purchasing: Focused on Operating Margin
Third-Party Material Purchasing: Focused on Operating Margin • In 2024, 100% of feedstock will be 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 fro
Slide 13: 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 14: Golden Queen
Golden Queen California, USA
Slide 15: 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 16: 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 17: Targeting Near- to Mid-Term Cost Savings
Targeting Near- to Mid-Term Cost Savings Mining Costs • New mine plan expected to identify areas of cost savings and efficiencies • Purchase new trucks to reduce overhaul and contract maintenance costs and increase availability Procurement Contracts • Renegotiate certain contracts such as insurance
Slide 18: Creating Value at Golden Queen
Creating Value at Golden Queen Exploration Mine optimization, Expand aggregate M&A ore control, cost business savings & operational efficiencies 18
Slide 19: Exploration Potential
LEGEND Current Topography N Exploration Potential Project Boundary Reserves Pit Resources Pit Soledad/Starlight SE Extension Target Zone Alphason Target Zone 1 Sheeted Vein Zone Sheeted Vein Target Landon Clay Target • New resource estimate defined from drilling in PHASE 1 Soledad/Starlight Target S
Slide 20: Building a Mid-Tier Producer
Building a Mid-Tier Producer
Slide 21: 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 19.0 11.9 11.2 11.2 484,675 6.9 53,000 San Golden San Golden San Golden Golden Queen Golden Queen Golden Queen Bartolomé Queen Bartolom
Slide 22: 2024 Production Expected to Double to 10.4 Moz from 5.2 Moz in 2023
2024 Production Expected 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 23: FY 2024 Cost Guidance
x 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
Slide 24: FY 2024 Capex Guidance
x 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 25: Capital Structure & Shareholders
Capital Structure & Shareholders Capital Structure Andean Share Ownership (as of February 29, 2024) $47.5M / -$17.4M ETF 5% Debt / Net Debt* (as at December 31, 2023) INSTITUTIONS & RETAIL 27% ~$72.8M Liquid Assets* (as at December 31, 2023) ERIC SPROTT 14% 156.7M Shares Outstanding (as at December
Slide 26: Advancing Our Vision
Advancing Our Vision CREATE ADDITIONAL VALUE • Exploration Building a PRODUCTION PRODUCTION • New ore contracts Mid-Tier • Convert resources San Bartolomé Golden Queen • Mine optimization Precious Metals (Bolivia) (USA) • Ore control Producer Focused • Operating efficiencies • Cost savings on the Am
Slide 27: Appendix
POS Appendix
Slide 28: 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 29: Senior Leadership Team
Senior Leadership Team ALBERTO MORALES JUAN CARLOS SANDOVAL HUMBERTO RADA Executive Chairman & CEO CFO President, Manquiri Founder of Andean Precious Metals Former Country Manager and GM for More than two decades of banking, Coeur Mining and Newmont. President of finance, accounting and M&A experien
Slide 30: 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 31: 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 32: Building a Mid-Tier Precious Metals Producer
APM ANPMF Building a Mid-Tier Precious Metals Producer For more information, please contact Trish Moran at tmoran@andeanpm.com
Andean Precious Metals — Investor Presentation (March 2024) on 6ix