Q1 2024 Andean Precious Metals Corp Earnings Call

May 14, 2024

Operator: Good morning. Welcome to Andean Precious Metals' conference call to discuss the company's financial and operating results for the three months ended March 31, 2024. As a reminder, this call is being recorded. Your host for today is Amanda Malou, Andean's new Director of Investor Relations. Ms. Malou, please go ahead.

Inaudible: [inaudible]

Good morning, welcome to M. D N precious metals conference call to discuss the company's financial and operating results were just three months ended March 31st 2024.

Speaker Change: A reminder, that this call is being recorded your host for today is from anthem, Although India user activity of the press relations.

Amanda Malou: Hello. Please go ahead.

Caller: Rachel Smith

Amanda Malou: Thank you, Operator, and good morning, everyone. Before we get started, I would like to point out that during today's call, we may make forward-looking statements as defined under Canadian securities law. I ask that you view our slide presentation for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our press release, MD&A, and financial statements are available both on CDAR Plus and our corporate website, andeanpm.com. With us today is Alberto Morales, Andean's Executive Chairman and CEO, Juan Carlos Sandoval, our Chief Financial Officer, and Chagán Ordenuga, our Executive Vice President of Finance. Following management's formal remarks, we will open the call to questions. With that, over to Alberto.

Amanda Malou: Thank you operator, and good morning, everyone before we get started I would like to point out that during today's call. We may make forward looking statements as defined under Canadian Securities Law.

Alberto: I'll bet you you arent slide presentation for cautionary language regarding forward looking statements and the risk factors pertaining to these statements.

Amanda Malou: Our press release MD&A and financial statements are available on both on SEDAR Plaza at our corporate website Andean P M Dot com.

Alberto Morales: With us today.

Speaker Change: And Alberta, Morales, and Dean's executive Chairman and CEO, Juan Carlos and the ball, our Chief Financial Officer Officer, and Sugar and other new Guy our executive Vice President of Finance.

Speaker Change: Following managements formal remarks, we will open the call to questions with that over 12.

Alberto Morales: Thank you, Amanda, and welcome, everyone. This quarter is our first quarter since the acquisition of Golden Queen. Our team has taken full control of the operations, and with the hire of our new COO, Marcos Orlando, we have gained a better understanding of the assets and have begun to implement strategic initiatives to optimize the operation and support future growth opportunities for the company. Despite the fire incident setback at Golden Queen and unusual weather conditions in Bolivia, our consolidated production for Q1 2024 reached 1.8 million silver equivalent ounces. Displaying resilience and adaptability.

Caller: Again, the company you're calling from, from AIRA, A-I-R-A, A-I-R-A, A-I-R-A.

Alberto: Thank you Amanda and welcome everyone.

Caller: from Aira, A-I-E-R-A. Thank you, James, for showing it to me.

Amanda Malou: This quarter is our first quarter since the acquisition of Golden week.

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Alberto Morales: Our team has taken full control of the operations and with the hire of our new CEO medical for London, We have gained a better understanding of the assets and have begun to implement our strategic initiatives to optimize the operation and support future growth opportunities for the company.

Alberto Morales: Despite the fire incident setback of Golden Green.

Alberto Morales: And unusual weather conditions in Bolivia, our consolidated production for Q1, 2024 reached one 8 million silver equivalent ounces.

Displaying resilience and adaptability.

Alberto Morales: Golden Queen's performance exceeded our expectations with 11,490 gold equivalent ounces, while San Bartolome experienced lower production due largely to a historical rainfall season and thunderstorms that affected road transportation. However, we anticipate significant production increases, revenue growth, and margin improvement in the upcoming quarters, reaffirming our guidance in accordance with our 2024 year. Turning to slide six, to discuss our vision for our operation in Bolivia.

Alberto Morales: <unk> performance exceeded our expectations with 11490, <unk> gold equivalent ounces, while somewhat total may experience lower production due largely to our historical rainfall season, and Thunder storms that affected the road transportation.

Alberto Morales: However, we anticipate significant production increase.

Alberto Morales: Revenue growth and margin improvement in the upcoming quarters reaffirming our guidance in accordance with our 2024 year of his life.

Alberto Morales: Turning to slide six to discuss our vision for our operation in Bolivia.

Alberto Morales: As we have stated, the country has an exceptional mineral endowment that remains underexplored. Bolivia is continuing to attract a wide variety of mining and resource companies, and it relies heavily on the mining industry's positive economic impact and capacity to generate foreign revenue. We know the country very well and believe it remains a jurisdiction in which we can do business and create further value for our stakeholders. Going forward, we see a strong potential for further growth for San Bartolomé and, in particular, in expanding our ore purchase program.

Alberto Morales: As we have expressed in the country. It wasn't exceptional mineral endowment that remains under explored Bolivia has attractive is continuing to attract a wide variety of mining and resource company and it relies heavily on the mining industry positive economic impact and capacity to generate revenue.

Alberto Morales: We know the country very well and believe it remains in jurisdiction in which we can do business and create further value to our stakeholders going forward, we see a strong potential for further growth for example, and then particular on expanding our or purchase programs.

Alberto Morales: As mentioned, this was our first full-quarter operating Golden Queen after the acquisition in late November. As a reminder, it offers a fully-permitted, open-peat, heap-leach operation in a Tier 1 jurisdiction, advancing our goal of being a mid-tier producer in the Americas. Considering the fire incident at Golden Queen, this quarter showed better than expected performance and revenue growth with a slight increase in operating costs, which Juan Carlos will touch on later in this presentation. As mentioned before, gold equivalent performance exceeded 11,490 gold equivalent hours.

Alberto Morales: As mentioned.

Alberto Morales: Thank you, Amanda, and welcome everyone. This quarter is our first quarter since the acquisition of Golden Queen. Our team has taken full control of the operations, and with the hire of our new COO, Marcos Orlando, we have gained a better understanding of the assets and have begun to implement strategic initiatives to optimize the operation and support future growth opportunities for the company. Despite the fire incident set back at Golden Queen and unusual weather conditions in Bolivia, our consolidated production for Q1 2024 reached 1.8 million silver equivalent ounces, displaying resilience and adaptability.

Alberto Morales: This was our first full quarter operating Goldman clean after the acquisition in late November.

Alberto Morales: As a reminder, it offers a fully permitted opened.

Alberto Morales: As we have expressed, the country has an exceptional mineral endowment that remains underexploited. Bolivia is continuing to attract a wide variety of mining and resource companies, and it relies heavily on the mining industry's positive economic impact and capacity to generate foreign revenue. We know the country very well and believe it remains a jurisdiction in which we can do business and create further value for stakeholders.

Alberto Morales: Hip Leach operation in a tier one jurisdiction advancing our goal of being a mid tier producer in the Americas.

Alberto Morales: Going forward, we see a strong potential for further growth for San Bartolomé and, in particular, expanding our ore purchase program. As I mentioned, this was our first full quarter operating Golden Queen after the acquisition in late November. As a reminder, it offers a fully-permitted, open-peat, heap-leach operation in a Tier 1 jurisdiction, advancing our goal of being a mid-tier producer in the Americas. Considering the fire incident at Golden Queen, this quarter showcased better than expected performance and revenue growth, with a slight increase in operating costs, which Juan Carlos will touch on later in this presentation. As mentioned before, gold equivalent performance exceeded 11,490 gold equivalent ounces.

Speaker Change: Considering the fire incident, the Golden Green this quarter shrunk as did better than expected performance in revenue growth with slight increase in operating costs, which Kevin will touch on later in this presentation as.

Alberto Morales: As mentioned before Golden point performance exceeded 11490, <unk> gold equivalent ounces.

Alberto Morales: However, as mentioned, we do anticipate significant production, revenue growth, and margin improvement in the coming quarters, reaffirming our guidance in accordance with our year. Most importantly, Golden Queen comes with the opportunity to enable our team to do what we have been doing best, which is to create value out of an undervalued asset. Earlier this quarter, we released a new technical report and updated mineral resources and reserves estimates for gold and queen that fully met our base case expectations.

Alberto Morales: However, as mentioned, we do anticipate significant production, revenue growth, and margin improvement in the coming quarters, reaffirming our guidance in accordance with our year. Most importantly, Golden Queen comes with the opportunity to enable its team to do what we have been doing best, which is to create value out of an undervalued product. Earlier this quarter, we released a new technical report and updated mineral resources and reserves estimates for gold and queen that fully met our base case expectations.

Alberto Morales: However, as mentioned, we do anticipate significant production revenue growth and margin improvement in the coming quarters reaffirming our guidance in accordance with our gear plant.

Alberto Morales: Most importantly closing when it comes with the opportunity to enable our teams to do what we have been doing best which is to create value out of an undervalued assets.

Alberto Morales: Earlier this quarter, we released.

Alberto Morales: <unk> Technical report, an updated mineral resources and reserves estimate for Goldman Queen at fully met our base case expectations.

Alberto Morales: We continue to focus on the opportunities ahead, namely optimizing the mine plan, improving ore recovery and production, and increasing cash flow and optimizing operating costs per annum. We're also defining and prioritizing exploration targets to help realize the potential upside of gold and clean and extend the operational life of the mine with an exploration drilling program, kicking off this following the Golden Queen acquisition. Andean is now a very different company than it was 12 months ago.

Alberto Morales: We continue to focus on the opportunities ahead, namely optimizing the mine plan, improving ore recovery and production, increasing cash flow, and optimizing operating costs per annum. We're also defining and prioritizing exploration targets to help realize the potential upside of Golden Queen and extend the operational life of the mine with an exploration drilling program, kicking off the... Following the Golden Queen acquisition, Andean is now a very different company than it was 12 months ago.

Speaker Change: We continue to focus on the opportunities ahead, namely optimizing the mine plan, improving our recovery and production and increasing cash flow and optimizing operating cost per ounce.

Alberto Morales: We're also defining and prioritizing exploration targets to help realize the potential upside with Goldman <unk> and extend the operational life of mine with an exploration drilling program kicking off this month.

Alberto Morales: Yes.

Speaker Change: Following the Goldman Queen acquisition.

Alberto Morales: And India is now a very different company.

Alberto Morales: It was 12 months ago.

Alberto Morales: Our acquisition of Golden Queen represents a significant transformation, effectively doubling our company size across metrics such as revenue, production, reserves, and workforce. As we integrate gold and green into our operations this quarter, our team has been focused on streamlining processes to enhance efficiencies and performance in alignment with our annual plan for 2020. We anticipate the upcoming quarters will reflect this integration and improve production and enhance operations. We have also developed a strong platform to support our ambition of becoming a mid-tier precious metal producer.

Alberto Morales: Our acquisition of Golden Queen represents a significant transformation, effectively doubling our company size across metrics such as revenue, production, reserves, and work. As we integrate gold and green into our operations this quarter, our team has been focused on streamlining processes to enhance efficiencies and performance in alignment with our annual plan for 2020. We anticipate the upcoming quarters will reflect this integration and improve production and enhance operations. We have also developed a strong platform to support our ambition of becoming a mid-tier precious metal producer.

Andean: Our acquisition of Golden Queen represents a significant transformation effectively doubling our company size across metrics such as revenue production reserves.

Alberto Morales: Workforce.

Speaker Change: As we integrate <unk> into our operations this quarter.

Alberto Morales: Our team has been focused on streamlining processes to enhance efficiencies and performance in alignment with our annual plan for 2024.

Alberto Morales: We have anticipated the upcoming orders will reflect this integration.

Alberto Morales: And improved production and enhance operational efficiencies.

Speaker Change: We have also developed a strong platform to support our ambition of becoming a mid tier precious metal producers in the Americas.

Alberto Morales: We have years of available reserves in both of our assets, as well as identified assets based on gold and silver production that is expected to drive growth in cash flow and profitability going forward. Furthermore, our operational expertise and strong financial position enable us to identify and act on future opportunities for growth through acquisition. In short, we are in a strong position to grow both organically and through M&A. With that, I'll hand over the reins to Juan Carlos, who will review our financials in more detail.

Alberto Morales: We have years of available reserves in both of our assets as well as identified assets based on gold and silver production that is expected to drive growth in cash flow and profitability going forward.

Juan Sandoval: Further our operational expertise and strong financial position enabled us to identify and act on future opportunities for growth through acquisitions.

Alberto Morales: In short.

Alberto Morales: We are in a strong position to grow both organically and through M&A.

Alberto Morales: With that I'll.

Juan Sandoval: I'll hand over the reins to Carlos who will review our financials in more details.

Juan Carlos Sandoval: Thank you, Alberto. Good morning.

Juan Sandoval: Thank you, Alberto. Good morning.

Juan Sandoval: Thank you Alberto good morning.

Juan Sandoval: Moving on to slide 10, Golden Queen Operational and Financial Highlights. As already mentioned by Alberto, Golden Queen exceeded our expectations by producing 11,490 gold equivalent ounces. This increase was driven by higher ore tonnage and stacked ore on the leach pad that are yielding better than expected production. Our total operating cash costs per gold equivalent ounce produced stood at 2,140, primarily impacted by the elevated fuel and maritime consumable crisis. On the other hand, operating cash costs per ounce sold total $1,627, which reflects the adjustment for production not sold.

Juan Carlos Sandoval: Moving on to slide 10, Goldman clean operational and financial highlights.

Juan Sandoval: So already mentioned by vertical.

Juan Carlos Sandoval: Queen exceeded our expectations by producing 11490, <unk> gold equivalent ounces.

Juan Carlos Sandoval: This increase was driven by.

Speaker Change: By higher ore tonnes mined and stacked ore on the leach pad are yielding better than expected production.

Juan Sandoval: Our total operating cash cost per gold equivalent ounce produced.

Juan Carlos Sandoval: 202140 <unk>.

Juan Sandoval: Primarily impacted by elevated fuel and Merrill Crowe consumable prices.

Juan Carlos Sandoval: On the other hand operating cash cost per ounce sold.

Speaker Change: $1627, which reflects the adjustment of production not so.

Juan Sandoval: All-in sustaining costs per ounce sold amounted to $1,936, reflecting heightened total operating cash costs per ounce sold, site corporate admin, corporate G&A allocation, and sustaining capital expenditures. In summary, this inaugural operational quarter under Andean's management showcased robust production achievements and revenue expansion, accompanied by a minor increase in operating expenses. Nonetheless, we remain confident in our ability to meet our previously announced guidance.

Speaker Change: All in sustaining cost per ounce sold amounted to $1936, reflecting heightened pole operating cash cost per ounce sold.

Speaker Change: Corporate admin corporate G&A allocation and sustaining capital expenditures.

Juan Carlos: In summary.

Speaker Change: You think narrow operating operational quarter on there under <unk> management showcase school bus production achievements and revenue expansion.

Juan Sandoval: A complaint by minor increasing operating expenses.

Juan Carlos Sandoval: Nonetheless, we remain confident in our ability to meet our previously announced guidance.

Juan Sandoval: Turning to slide 11, San Bartolomeo Operational and Financial Highlights. In Q1 2024, we made a strategic shift in our purchasing strategy, resulting in a 102% increase in tonnage purchased compared to Q1 2023. This shift focused on acquiring oxide material, which led to a decrease in average head grade of 179 grams per ton due to the composition of materials purchased. Therefore, our total plant throughput experienced an important reduction compared to Q1 2023. This decline can be attributed to heavy rainfall and thunderstorms around the Potosi area, which adversely affected our operations during the quarter and delays in third-party material delivery.

Speaker Change: Turning on to slide 11, somebody <unk> operational and financial highlights.

Juan Carlos: In Q1 2024.

Speaker Change: Made a strategic shift in our purchasing strategy, we sold being in a 102% increase in tonnage purchase compared to Q1 2023.

Juan Carlos: This shift focused on acquiring oxide material, which led to a decrease in average head grade of 179 grams per tonne.

Speaker Change: So the composition of materials purchase.

Juan Sandoval: Our total planned through good experience, an important reduction compared to Q1 2023.

Juan Sandoval: This decline can be attributed to heavy rainfalls and thunderstorms around the potency area, which adversely affected our operations during the quarter and delays in third party material deliveries.

Juan Sandoval: Beginning January 1, 2024, we adopted new metrics to measure our performance, including cash cross operating margin per equivalent ounces sold and cross margin ratio. These metrics better reflect our transition to exclusively processing activities during Q4 2023. Total cash operating cost per silver equivalent ounce sold, which consists of total cost of sales, allocated corporate administrative cost, and site and general administrative cost, during Q1 2024 were $20.1 million, or $24.38 per silver equivalent ounce sold, compared to $23.4 million, or $23.37 per silver equivalent ounce sold in Q1 2023.

Speaker Change: Beginning January one 2024, we adopted new metrics to measure our performance, including cash gross operating margin per equivalent ounces sold.

Juan Carlos Sandoval: And cross margin ratio.

Juan Sandoval: These metrics better reflect our transition to exclusively processing activities during Q4 and 2023.

Juan Sandoval: Total cash operating cost per silver equivalent ounce sold.

Speaker Change: Which consists of total cost of sales allocated corporate administrative cost and size and general administrative cost during Q1, 'twenty 'twenty four 'twenty.

Juan Carlos Sandoval: $20 1 million or $24 38 per silver equivalent ounce sold.

Speaker Change: Compared with $23 4 million or $23 37 per silver equivalent ounce sold in Q1 2020.

Juan Sandoval: This resulted in a cash gross operating margin per silver equivalent downsold of negative 0.72 cents for Q1 2024 compared to negative 0.33 cents in Q1 2020. The increase was largely impacted by lower silver equivalent ounces sold and higher cost of material purchased due to the increase in the volume purchased during Q1 2024 compared to Q1 2023. The other new metric, cross-margin ratio for the Q120-24, which is calculated by subtracting the cost of sale, excluding depreciation, depletion, and amortization as reported in the income statements from the net revenue from sales of silver equivalent bounces divided by net revenue from sales, was 6.47% in Q1 2024 compared to 7.9 in Q1 2023.

Juan Sandoval: This resulted in the cash across operating margin per silver equivalent ounce sold of Mega.

Speaker Change: At $8.72 for Q1, 2024 comparable negative <unk> 33 in Q1 2023.

Juan Sandoval: The increase was largely impacted by lower silver equivalent ounces sold and higher cost of materials purchased due to the increase in the volume purchase during Q1 2024 compared to Q1 2023.

Speaker Change: The other second lien metric cross margin ratio or the Q1 'twenty 'twenty four.

Juan Sandoval: Which is calculated by subtracting the cost of sales, excluding depreciation depletion and amortization as reported in the income statement from the net revenue from sales of silver equivalent ounces divided by net revenue from sales was 647% in <unk>.

Juan Carlos Sandoval: 1024, compared to seven nine in Q1 2023.

Juan Sandoval: The 18% decrease in gross margin ratio was due to lower volumes of silver equivalent ounces sold and an increase in average cost of sales per ounce sold in Q1 2024 of $22.13, compared to $21.21 in Q1 2023. The increase in average cost of sales per ounce sold of $0.92 was due to an increase in materials or purchasing costs.

Speaker Change: The 18% decrease in gross margin ratio was due to lower volumes of silver equivalent ounces sold and an increase in average cost of sales per ounce sold in Q1 2024 of $22 30, 13th.

Juan Carlos Sandoval: Compared to $21 21 in Q1 2020 to me.

Juan Sandoval: The increase in average cost of sales per ounce sold of 92.

Juan Sandoval: While he was still the increase in materials or purchasing and materials or purchasing costs.

Juan Sandoval: In terms of capital expenditure, sustaining capital decreased to $2.3 million in Q1 2024, while non-sustaining capital expenditures amounted to $2 million. The majority of this expenditure was associated with the development of the FDF project in Bolivia. Moving on to slide 12, financial performance, we achieved a milestone with a record production of 1.8 million silver equivalent bounces and quarterly revenues of sales reaching 43.1 million, reflecting an increase of 82% and 87%, respectively, from Q1 2023.

Juan Sandoval: In terms of capital expenditure sustaining capital decreased to.

Juan Sandoval: $2 3 million in Q1 2024.

Juan Sandoval: Non sustaining capital expenditures amounted to $2 million.

Juan Sandoval: The majority of this expenditure was associated with the development of the FTF project in Bolivia.

Juan Sandoval: Moving on to slide 12 financial performance.

Juan Sandoval: We achieved a milestone with a record production of 1.8 million silver equivalent ounces and quarterly revenues of sales, reaching 43 to $43 1 million.

Juan Sandoval: Reflecting an increase of 82% and 87% respectively from Q1 2023.

Juan Sandoval: This surge was fueled by incremental revenue from Golden Queen, partly mitigated the decrease from San Bartolomeo's operation. Total cost of sales thus saw an uptick to $37.3 million, largely attributed to incremental costs from gold and quince. Our general and administrative expenses rose to $4.5 million, including incremental costs from Golden Queen and other strategic growth initiatives. Finance cost was $1.7 million, primarily linked to the interest payment on Golden Queen's debt. We realized other income of $2.3 million arising from a foreign exchange gain of $1.7 million, primarily due to premiums realized on the selling of U.S. dollars to Bolivianos and interest income from short-term investments. Total income tax recovery increased $2.6 million, driven by tax loss and deferred tax timing difference benefits realized for Bolivia and Golden Queen.

Juan Sandoval: This surge was fueled by incremental revenue from Golden Queen partly mitigated the decrease from San Bartolome operations.

Juan Sandoval: Total cost of sales saw an uptick to $37 3 million.

Juan Sandoval: Largely attributed to incremental costs from Goldman.

Juan Sandoval: Our general and administrative expenses rose to <unk> $5 million, including incremental costs from Golden Queen another strategic growth initiatives.

Speaker Change: Finance cost was $1 7 million.

Juan Sandoval: Primarily linked to the interest payment on Golden Queens debt.

Juan Sandoval: We realized other income of $2 3 million arising from a foreign exchange gain of $1 7 million.

Juan Sandoval: Primarily due to premiums realized on the selling of the U S dollars to Bali, the animals and interest income from short term investments.

Juan Sandoval: Total income tax recovery increased $2 6 million driven by tax loss and deferred tax timing difference benefits realized for Bolivia and Goldman Queen.

Juan Sandoval: To conclude, Q1 2024 is our first full quarter of combined operation. While we face challenges during Q1 2024, we reiterate our guidance based on positive trends up to date in accordance with our 2024 year plan. Moving on to our capital structure on slide 13, as of March 31st, 2024, we had liquid assets of nearly 73 million in cash and cash equivalents, a negative net debt, and 108 million in working capital. Our mandate is, and will continue to be, to maintain our balance sheet, our strong balance sheet to support our future.

Juan Sandoval: To conclude Q1 2020 for sure first full quarter of combined operations.

Juan Sandoval: While we faced challenges here in Q1 2024, we reiterate our guidance based on positive trends up to date in accordance with our 2024 year plan.

Juan Sandoval: Moving onto our capital structure on slide 13.

Juan Sandoval: As of March 31, 'twenty 'twenty, four we had liquid assets of nearly $73 million of cash and cash equivalents.

Juan Sandoval: A negative net debt and.

Juan Sandoval: And $108 million of working capital.

Juan Sandoval: Our mandate is and will continue to be on maintaining on our balance sheet, our strong balance sheet to support our future growth.

Juan Sandoval: Turning now to our 2024 guidance on page 14. As mentioned, we are reaffirming our full-year consolidated guidance that was provided to the market, to the market backing market. With that, I conclude my remarks, and back to you, Alberto.

Juan Sandoval: Turning now to our 2020 forward guidance on page 14.

Juan Sandoval: As mentioned, we are reaffirming our full year consolidated guidance.

Juan Sandoval: <unk> provided to the market to the market back in March.

Juan Sandoval: With that I conclude my remarks and back to you over time.

Alberto Morales: Thank you, Juan Carlos. Looking ahead to the remainder of the year, we have many key catalysts, milestones, and opportunities on the horizon at San Bartolome. We will be working towards signing additional agreements to close this high-margin third-party org and commissioning the FDF Silver Recovery Project before the end of this second quarter. At Goldman Queen, we will continue to leverage our expertise and experience to stay focused on the implementation of the identified strategies to optimize operations, production, and efficiency.

Juan Sandoval: Thank you Juan Carlos.

Juan Sandoval: Looking ahead to the remainder of the year.

Juan Sandoval: We have many key catalysts milestones and opportunities on the horizon.

Juan Carlos Sandoval: Tom Bartolome, we will be working towards signing additional agreements to causes higher margin third party reward and on commissioning the FTF silver recovery project before the end of this second quarter.

Juan Carlos Sandoval: Our Golden Quinn, who will continue to leverage our expertise and experience to stay focused on the implementation of the identified strategies to optimize operation.

Juan Sandoval: The auction and deficiencies and.

Alberto Morales: And finally, we will continue to focus on growth and the M&A process. Our board and management team are firm believers in the Andean story. And finally... During this quarter, we repurchased 5.3 million common shares for $2.8 million through the normal course-issued bid program. This now concludes our formal remarks, and I would like to open the line for questions. Operator. Thank you. We will now begin the question and answer session.

Juan Sandoval: And finally.

Juan Sandoval: And we will continue to focus on growth and M&A prospects.

Juan Sandoval: Our board and management team are firm believers in the <unk> story.

Juan Sandoval: And finally.

Juan Sandoval: During this quarter, we repurchased five 3 million common shares for $2 8 million through the normal course issuer bid programs.

Juan Sandoval: This now concludes our formal remarks, and I would like to open the line for questions operator.

Operator: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. Pause for a moment as Carlos joins the queue. Once again, if you have a question, please press star then 1. There are no questions from the phone lines at the moment.

Juan Sandoval: Thank you we will now.

Speaker Change: Ill begin the question and answer session.

Speaker Change: The question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.

Juan Sandoval: Phosphorylcholine is clearly showing the Q.

Juan Carlos Sandoval: Okay.

Speaker Change: Once again, if you have a question. Please press Star then one.

Juan Sandoval: There are no questions from the phone lines at the moment.

Juan Carlos Sandoval: Oh.

Operator: We received a couple questions yesterday after the news release went out that we would like to address on the call. So the first one being, on March 29th, 0.9 million was still available for the NCIB. Six weeks later, the budget will have run out. Does Andean have plans to start a new NCIB this year?

Juan Sandoval: We received a couple of questions yesterday. After the news release went out that we would like to address on the call. So the first one being on on March $29 9 million was still available for the NCI be six weeks later the budget will have run out.

Speaker Change: Does it and then have plans to start a new ANSI IP this year.

Alberto Morales: With respect to that question, I would like to clarify that we still have a little bit more than one million shares pending to be purchased under the current program, and we intend to continue purchasing that amount of shares. Once the full allotment of shares that has been authorized by the TSX-V has been exhausted, then we will reassess if we were to ask... for a new MCAV.

Juan Sandoval: With respect to that question I would like to clarify that we still have a little bit more than 1 million shares spending to be purchased under the current program and we intend to continue.

Juan Sandoval: Purchasing that amount of shares.

Juan Sandoval: Once the full allotment of shares that had been authorized by the TSA fee has been exhausted.

Juan Sandoval: We will be reassessing, if we were to ask.

Juan Sandoval: For our new <unk> program.

Juan Carlos Sandoval: Yeah.

Amanda Malou: The next question is, is SRK already done with their recommendations for Golden Queen? Will they start with the new mine plan this year?

Speaker Change: Next question as is.

Speaker Change: As F RK already done with their recommendations for Golden Queen well.

Juan Sandoval: All they start with the new mine plan model.

Alberto Morales: Yeah, thank you, Amanda. So, what we can say at this point is that we are still working with SRK. We're making progress, and I think announcements will be made.

Juan Sandoval: Yeah. Thank you Amanda so yes, what we can say at this point, we are still working with that start game, we're making progress and I think announcements will be made.

Juan Sandoval: In due course.

Amanda Malou: Great. And finally, has the bad weather in Bolivia delayed the start of the FDF project, and when is the first production estimated? Yes, there were certain delays, but like Alberto mentioned, we are

Juan Sandoval: And finally.

Speaker Change: Has the bad weather in Bolivia delayed the start of the MTF project and when is the first production estimate it.

Alberto Morales: Yes, there were certain delays, but like Alberto mentioned, we are very close to commissioning the FDF, which should be ready during this second quarter.

Juan Sandoval: Yes, there were a certain delay, but I'd like to mention we are very close from commissioning the FTF, which should be ready during this second quarter.

Juan Sandoval: That's everything.

Juan Sandoval: Thank you.

Juan Carlos Sandoval: Yeah.

Operator: Operator, back to you. This concludes the question and answer session. I'd like to hand the conference back over to Alberto Morales for any closing remarks.

Speaker Change: Operator back to your question.

Speaker Change: This concludes the question answer session I would like to hand, the conference back over to Alberta more outlets for any closing remarks.

Alberto Morales: Thank you, Operator. Well, I just wanted to thank everyone for joining us, and we'll certainly be, as we expressed, looking forward to next quarter's financials, and certainly we'll be making announcements as we make progress and progress with respect to these questions that we have been addressing. So thank you very much, everyone, for attending.

Juan Sandoval: Thank you operator, well I just wanted to thank everyone for joining us and we'll certainly be as we expressed are looking forward for next quarters.

Juan Sandoval: Actuals and certainly we'll be making announcements as we make progress in due course with respect to this question I said, we have been addressing.

Speaker Change: So thank you very much everyone for attending.

Operator: This concludes today's conference call. You may disconnect your line. Thank you for participating and have a pleasant day.

Speaker Change: This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

BF-WATCH TV: A film by J.R.R. Tolstoy Directed by J.R.R. Tolstoy Written by J.R.R. Tolstoy Directed by J.R.R. Tolstoy Music by J.R.R. Tolstoy © BF-WATCH TV 2021 ?? ?? ?? ?? ?? ??

Juan Carlos Sandoval: [music].

Juan Carlos Sandoval: Hum.

Juan Carlos Sandoval: Yeah.

Juan Carlos Sandoval: [music].

Juan Carlos Sandoval: Mhm.

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