Andean Precious Metals Corp · TSX:APM
Andean Precious Metals — Investor Presentation (June 2023)
28 slides from Andean Precious Metals's investor presentation, June 2023
Slide 1: Building a Multi-Asset Mid-Tier Precious Metals Producer
BUILDING A MULTI-ASSET MID-TIER PRECIOUS METALS PRODUCER TSX-V: APM OTCQX: ANPMF Investor Presentation June 2023
Slide 2: Legal Disclaimers
Legal Disclaimers Disclaimer This presentation is informational purposes only and is solely to assist interested parties in determining whether to seek additional information. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities of Andean Preciou
Slide 3: Forward-looking Statements
Forward-looking Statements Certain statements contained in this presentation constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. These statements relate to future events or the Company’s f
Slide 4: Corporate Overview
Corporate Overview • Corporate office in Monterrey, Mexico • Registered office in British Columbia, Canada • Listed on TSXV (APM) in March 2021 • Listed on OTCQX (ANPMF) in July 2022 • Wholly own San Bartolomé plant in Bolivia ̶ Tax rate: 32% ̶ Mining royalty: 7% • Global workforce of ~500 (Dec 31,
Slide 5: Investment Rationale: Pursuing Transformational Growth
Investment Rationale: Pursuing Transformational Growth Two-pronged growth strategy Positive cash Organic growth Active M&A mandate Clean debt-free generation opportunities in Bolivia in wider Americas balance sheet* from established including near- to mid- to grow responsibly with $84M in liquid pro
Slide 6: Bolivia: Nearly Years of Mining Activity and Still Going Strong
Bolivia: Nearly 500 Years of Mining Activity and Still Going Strong ONE OF THE WORLD’S RICHEST MINERAL REGIONS A MODERN MINING CODE ADOPTED IN 2014 WITH AN EXPERIENCED MINING WORKFORCE AND A SIMPLE TAX AND ROYALTY STRUCTURE ● In 2022, Bolivia ranked globally as: ● Government mandate to attract forei
Slide 7: Green Industry Accelerates Demand for Silver
Green Industry Accelerates Demand for Silver AUTOMOTIVE DEMAND FOR SILVER EXPECTED PHOTOVOLTAIC SOLAR PANELS ACCOUNT FOR 10% TO REACH 90M OUNCES/YEAR BY 2025 OF TOTAL SILVER DEMAND 100 90 180 80 Million Ounces Silver Ounces (Millions) 160 70 140 60 120 GW 50 100 APM Corporate Presentation 40 80 30 6
Slide 8: San Bartolomé: Bolivia's Largest Oxide Plant
FAST FACTS FAST FACTS (FY2022)(FY2022) San Bartolomé: Bolivia’s Largest Oxide Plant Ore milled:Ore Head Head grade: 1.6milled: Mt grade: 120 1.6 Mt g/t 120 g/t Silver produced: Silver produced: 5.0 Moz 5.0 Moz 1.8MTPA DESIGNED CAPACITY PLANT BUILT BY COEUR MINING IN 2008 FOR $190M Recovery: 77%Recov
Slide 9: Andean's Ownership of San Bartolomé: A Brief History
Andean’s Ownership of San Bartolomé: A Brief History 2008 2018 2021 San Bartolomé achieved Coeur Mining sells San Ag-Mining completes a qualifying commercial production in Bartolomé to Ag-Mining transaction (RTO and amalgamation); June 2008. Investments AB. resulting entity is named Andean Precious
Slide 10: Track Record of Positive Cash Gross Profit
Track Record of Positive Cash Gross Profit* $48M $49M $17M Cash Gross Profit Cash Gross Profit Cash Gross Profit $144 $131 $108 $95 $91 $83 A Corporate Presentation FY 2020 FY 2021 FY 2022 2023 Revenue Operating Costs *Cash gross profit is calculated by adding back depreciation to income from mine o
Slide 11: Strong Growth Potential in Bolivia
Strong Growth Potential in Bolivia ANDEAN’S TARGETED AND MULTI-FACETED DOMESTIC GROWTH STRATEGY 1 Secure additional oxides from Bolivian government 2 Increase high-grade oxides from independent miners 3 4 Acquisitions Tailings in Bolivia reprocessing APM Corporate Presentation 2023 11
Slide 12: Current Feed Sources
Current Feed Sources SAN BARTOLOMÉ PLANT HAS BEEN IN OPERATION SINCE JUNE 2008 Cerro Rico Deposits 1 Antuco BOLIVIA 2 Santa Rita 3 Huacajchi 7 1 6 Feed Material Sourcing 2 3 4 Cachi Laguna POTOSI DEPARTMENT 5 Tatasi Portugalete 6 Cerro Rico Oxides APM Corporate Presentation 7 Rural Oxides 5 4 San Ba
Slide 13: Opportunities to Expand Oxide Material Purchases
Opportunities to Expand Oxide Material Purchases • Key priority is to secure long-term oxide agreements with private owners • Focused on mining Current Suppliers 300 km 200 km 100 km 50 km districts with significant Potential Future Suppliers Exploration geological potential San Bartolomé (plant) AP
Slide 14: Third-Party Material Purchasing
Third-Party Material Purchasing THIRD-PARTY MATERIAL PURCHASES REPRESENT ~45% OF ANDEAN’S 2022 PRODUCTION, AND EXTEND THE LIFE OF ANDEAN’S NI 43-101 MATERIAL, POTENTIALLY IMPROVING GRADE PROCESSED 1 2 3 4 5 6 Supplier Material Material Purchase Payment & Material Evaluation Reception Review Controls
Slide 15: State-of-the Art Tailings Facilities Offer Silver & Tin Opportunities
State-of-the Art Tailings Facilities Offer Silver & Tin Opportunities • Announced initial resource for DSF: ̶ 18.11 million tonnes of inferred mineral Fines Disposal Facility (“FDF”) resources, grading 43.2 grams per tonne silver and 0.16% tin* • Combining the DSF with the FDF mineral resource (effe
Slide 16: Extending the Mine Life at San Bartolomé
Extending the Mine Life at San Bartolomé 16.2 Moz State Mining Company Contracts 5.9 Moz in FDF Tailings1 (new deposits) M&I Resources1 (NI 43-101) (NI 43-101) (studies ongoing) Regional M&A 1.3 Moz Material Purchasing2 xx 8.7Moz MozOre Material Purchasing 2 Purchasing 2 APM Corporate Presentation (
Slide 17: Active M&A Mandate
Active M&A Mandate RESPONSIBLE GROWTH SUPPORTED BY SPECIFIC ACQUSITION CRITERIA Annual production Gold, silver Located in Bolivia 5+ years Low cost ACQUISITION CRITERIA target: 5Moz Ag / and/or base metals or wider Americas mine life producer 100koz Au APM A 2023 2023 Corporate Corporate Presentatio
Slide 18: Capital Structure & Shareholders
Capital Structure & Shareholders CLEAN CAPITAL STRUCTURE SHARE OWNERSHIP (as of May 31, 2023) Debt Cash, VAT Receivable & (as at March 31, 2023) Marketable Securities ETF 3.0% (as at March 31, 2023) NIL US$84M Institutions & Retail 31.3% Insiders 52.2% APM Corporate Presentation Shares Outstanding M
Slide 19: ESG: Working Towards International Standards
ESG: Working Towards International Standards LOCAL SOURCING 66% of annual spending is made to Bolivian entities APM Corporate Presentation IMPORTANT TO LOCAL AND NATIONAL ECONOMIES EMPLOYMENT JOBS • San Bartolomé has a significant impact on the economy of Bolivia 96% 264 + 230 • An economic impact s
Slide 20: A Solid Foundation... A Promising Future
A Solid Foundation . . . . . . A Promising Future STRONG BALANCE SHEET & GROWTH POTENTIAL UPCOMING MILESTONES & CATALYSTS Debt-free balance sheet* Additional oxide Potential M&A San Bartolomé mine material in Bolivia transaction expansion study • $84M in cash, marketable securities and VAT certifica
Slide 21: Appendix
Appendix BOARD OF DIRECTORS SENIOR LEADERSHIP TEAM BOLIVIA: FAST FACTS BOLIVIA: BRIEF HISTORY SAN BARTOLOMÉ RESOURCE STATEMENT SAN BARTOLOMÉ FLOWSHEET APM Corporate Presentation 2023 21
Slide 22: Board of Directors
Board of Directors ALBERTO MORALES GRANT ANGWIN YOHANN BOUCHARD Executive Chair and CEO Lead Independent Director, Chair of Health, Independent Director Member of the Nomination Safety, Environment, Social and Sustainability & Corporate Governance Committee, Chairman of the Compensation Committee Co
Slide 23: Senior Leadership Team
Senior Leadership Team ALBERTO MORALES JUAN CARLOS SANDOVAL HUMBERTO RADA Executive Chairman CFO President, Manquiri & CEO Former Country More than two decades of Manager and GM for Founder of Andean banking, finance, accounting and Coeur Mining and Precious Metals M&A experience mostly focused Newm
Slide 24: Bolivia: Fast Facts
Bolivia: Fast Facts Capital city: La Paz (executive and legislative) Sucre (constitutional and judicial) Population: 12.1 million (2022), including 1.75 million in Santa Cruz, the largest city Religion: 89% Christianity Currency: Bolivian Boliviano (Bs) has remained pegged to US$ since October 2011
Slide 25: Bolivia: Brief History
Bolivia: Brief History 1545 1847 1964 2006 2014 2020 Founding of Bolivia Military coup marks Evo Morales elected New mining code Luis Arce elected Cerro Rico independence beginning of 18-year president enacted 67th president recognized dictatorship (minister of finance 2006- 2017) Bolivia 1825 1952
Slide 26: Mineral Resources Statement
Notes to Table Mineral Resources Statement • Mineral resources cited herein are not mineral reserves and do not have (as at December 31, 2022) demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserve. • Mine
Slide 27: San Bartolomé Flow Sheet
FAST FACTS San Bartolomé Flow Sheet FY 2022 Ore milled: 1.6 Mt Head grade: 120 g/t Silver produced: 5.0 Moz CONVENTIONAL COMMINUTION, LEACH (CYANIDE), Recovery: 77% MERRILL-CROWE PROCESS, REFINING FLOWSHEET • San Bartolomé pre-processes Whole (washes) the feed from pallacos Feed Run-of-Mine Ore ̶ to
Slide 28: For more information, please contact Trish Moran
For more information, please contact Trish Moran, VP Investor Relations at tmoran@andeanpm.com28
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