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New Listing: Andean Precious Metals Commences Trading On The TSX Venture Exchange

Mar. 29, 2021 1:52 PM ET
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Seeking Alpha Analyst Since 2020


  • Common shares began trading on the TSX Venture Exchange as a tier-one issuer under the symbol "APM" at market open.
  • Andean completed its previously announced “Qualifying Transaction” earlier this month, raising approximately US$20.8 million.
  • The established silver producer is positioned to become a mid-tier consolidator.

The San Bartolomé plant

The common shares of Andean Precious Metals Corp. began trading on the TSX Venture Exchange in Canada as a tier-one issuer under the symbol "APM" at market open today. Further to its news release of March 19, 2021, the Company has completed its previously announced “Qualifying Transaction,” raising approximately US$20.8 million. The company acquired its public listing by way of a three-cornered amalgamation where 1271860 B.C. Ltd., a wholly-owned subsidiary of Andean, amalgamated with 1254688 B.C. Ltd. (the "Target") a private British Columbia corporation with operating subsidiaries in Bolivia which are engaged in the exploration, exploitation, treatment, refining and commercialization of ore containing silver and gold, which it extracts from its own mining rights and also through purchases from third parties' ore.

Investment Highlights:

  • Produced 5.9M of silver equivalent ounces in 2020 at an all-in sustaining cost of approx. $15 USD per ounce[1] from its wholly-owned 1.65 Mtpa San Bartolomé processing plant
  • Strong balance sheet and free cash flow generation
  • Expanding high-margin third-party ore-sourcing business
  • Extensive portfolio of precious metals exploration and development assets in Bolivia

Andean Precious Metals is a growth-focused precious metals company with its flagship asset being San Bartolomé in Potosi, Bolivia. The 5,500 tonnes per day oxide plant was built by Coeur Mining for approximately US$188 million and sold to the predecessor company of Andean Precious Metals in 2018.

The plant is an operating mine recovering silver from mineralized gravel, which mantle the flanks of Cerro Rico; a prominent, +4,800 meter-elevation peak located just south of the city of Potosi. Access to San Bartolomé is by paved and well-travelled gravel roads leading from the city. Mining operations and ore processing and related facilities encompass an area of nearly 1,817.6 hectares. The San Bartolomé mill is the only commercial silver oxide plant in Bolivia.

Coeur held mining rights through agreements with COMIBOL and several mining cooperatives to the San Bartolomé open-pit silver mine via its wholly-owned subsidiary, Manquiri. The mine and associated milling operation had been in production since 2008. Coeur sold Manquiri to AG-Mining (now Andean Precious Metals) in 2018. Prior to Manquiri, there was no silver production from the San Bartolomé gravel-hosted deposits around the summit of Cerro Rico.

In 2020, Andean Precious Metals produced approximately 6 million equivalent ounces of silver at an all-in sustaining cost of approximately US$15 per ouncefrom the San Bartolomé processing plant, which has a capacity of 1.65 Mtpa.

Production – Cerro Rico MiningThe company has a strong balance sheet with US$70 million in cash and metal inventory or CDN$0.57 per share, and strong free cash flow generation - US$23 million in free cash flow in the fourth quarter of 2020.

Other interesting things of note, Andean Precious Metals has an expanding high margin third-party ore-sourcing business and has integrated forward-thinking corporate social responsibility practices into the business through the use of Dry Stack Tailings at San Bartolomé. Andean also holds a portfolio of earlier-stage mineral properties located in Bolivia and is currently conducting exploration activities on these properties.

[1] Unaudited full year 2020 estimate, production of 5,473,000 ounces silver 5,335 ounces gold

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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