Q2 2024 Andean Precious Metals Corp Earnings Call

August 14, 2024

Operator: Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Precious Metals Andean Pre As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press the star and then one using a telephone keypad.

Unknown Executive: Good morning, everyone, and welcome to Andean Precious Metals conference call to discuss the company's operating highlights and financial results for the three and six months ended June 30, 2024.

Speaker Change: Good morning everyone and welcome to Andean Precious Metals conference call to discuss the company's operating highlights and financial results for the three and six months ended June 30th 2024.

Operator: As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the questions queue, you may press star and then one using a telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero.

Speaker Change: As a reminder, all participants are in a listen-only mode and the conference is being recorded.

Speaker Change: After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star and then one using a telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero.

Operator: Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I'd now like to turn the floor over to Amanda Malone, Director of Investor Relations. Please go ahead.

Amanda Mallough: I now like to turn the floor over to Aminda Mallough, Director and Best of Relations.

Speaker Change: I'd now like to turn the floor over to Amanda Malone, Director, Investor Relations. Please go ahead.

Unknown Executive: Please go ahead.

Unknown Executive: Thank you, operator, and good morning, everyone. Before we get started, I would like to point out that during today's fall, we may make full-resulting 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.

Amanda Malone: Thank you, Operator, and good morning, everybody. Before we get started, I would like to point out that during today's call, we may make forward-looking statements, as defined. I ask that you view our slide presentation for cautionary language regarding forward-looking statements and the risk factors. Our press release, MD&A, and financial statements are available on both CDAR Plus and on our corporate website at andeanpm.com. With us on today's webcast is Alberto Morales, Andean's Executive Chairman and CEO, Juan Carlos Sandoval, our Chief Financial Officer, and Alex Pascual, our new Director of Financial Planning and Analysis. Following management's formal remarks, we will open the call, and now I pass it on to Alberto Morales. Thank you Amanda, and welcome everyone.

Amanda Malone: 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.

Unknown Executive: Our press release, MDNA, and financial statements are available on both Cedar Plus and on our corporate website, andeanpm.com.

Amanda Malone: Our press release, MD&A, and financial statements are available on both CDAR Plus and on our corporate website andeanpm.com

Unknown Executive: With us on today's webcast is Alberto Morales, Andean's executive chairman and CEO. Juan Carlos and the Vol, our financial officer, and Alex Pasguel, our new director of financial planning and analysis.

Speaker Change: With us on today's webcast is Alberto Morales, and the Executive Chairman and CEO, Juan Carlos and the Ball, or some financial officer, and Alex Pascuel, our new director of financial planning and analysis.

Alberto Morales: Following management's formal remarks, we will open the call to questions, and now I pass it on to Alberto.

Amanda Malone: Following management's formal remarks, we will open the call to questions.

Alberto Morales: Thank you, Aminda, and welcome everyone. I am pleased to chair that Andean Prisius Medal has delivered a robust water highlighted by key operational milestones in a strong financial growth. Our strategic efforts are yielding efforts, and our ongoing focus on operational excellence is driving our continued success. We have record production and revenues by achieving on a consolidated basis, 2.5 million silver equivalent analysis produced, which is a 103 percent increase from Q2 2023. Our revenue soar to 69.8 million, marking a 357 percent year-over-year increase.

Alberto Morales: I am pleased to share that Andean Precious Metals has delivered a robust quarter, highlighted by key operational milestones and strong financial growth. Our strategic efforts are yielding results, and our ongoing focus on operational excellence is driving our continued, We have record production and revenues by achieving, on a consolidated basis, 2.5 million silver Equival Analysis Produge, which is a 103% increase from Q2 2020. Our revenue soared to $69.8 million, marking a 357% year-over-year increase. We have successfully commissioned the FDF project.

Amanda Malone: And now I pass it on to Alberto.

Alberto: Thank you, Amanda, and welcome everyone.

Speaker Change: I am pleased to share that Andean Precious Metal has delivered a robust quarter, highlighted by key operational milestones and a strong financial growth.

Speaker Change: Our strategic efforts are yielding efforts and our ongoing focus on operational excellence is driving our continued success.

Speaker Change: We have record production and revenues by achieving on a consolidated basis 2.5 million silver equivalent ounces produced, which is a 103% increase from Q2 2023.

Speaker Change: Our revenue soared to $69.8 million, marking a 357% year-over-year increase.

Alberto Morales: We have successfully commissioned the FDF project. Our new fine mineral processing plant at San Bartolome was commissioned on July 23rd, 2024. It is now operating at 1300 tons per day, and we aim to ramp up to 1500 tons per day by the end of Q3 2024, enhancing overall performance and sustainability. Q2 shows a strong financial performance, significant improvements in San Bartolome's financial metrics with a gross operating margin of $5.15 per silver equivalent analysis from 1.52 in Q2 2023, and a gross margin ratio of 24.45 percent. Compared to 22.95% on operational efficiency, despite the decrease in total plant throughput by 29% at San Bartolome, our focus on processing purchase or an increasing production at Golden Queen contributed to robust financial results.

Speaker Change: We have successfully commissioned the FDF project.

Unknown Executive: Our new fine mineral processing plant at San Bartolome was commissioned on July 23, 2024. It is now operating at 13, 100 tons per day, aim to ramp up to 1500 tons per day by the end of Q3 2024. Enhancing Overall Performance and Sustainability, YouTube shows a strong financial performance. Unknown Executive, Alberto Morales, Juan Sandoval, Eleanor Magdzinski, Andean Precious Metals, from 1.52, Q2 2023, and a gross margin ratio of 24.45%, compared to 22.95% in the, On operational efficiency, despite the decrease in total plant throughput by 29% at San Bartolome, our focus on processing purchase or an increasing production at Golden Queen Contributed to a robust for now, on Health, Safety and Environmental Stewardship.

Speaker Change: Our new fine mineral processing plant at San Bartolome was commissioned on July 23rd, 2024.

Speaker Change: It is now operating at 1300 tons per day.

Speaker Change: We aim to ramp up to 1500 tons per day by the end of Q3 2024, enhancing overall performance and sustainability.

Speaker Change: U2 shows a strong financial performance.

Speaker Change: Significant improvements in San Bartolomé's financial metrics, with a gross operating margin of $5.15 per silver equivalent ounce.

Speaker Change: from 1.52 in Q2 2023.

Speaker Change: and a gross margin ratio of 24.45% compared to 22.95% in the previous year.

Speaker Change: On operational efficiency, despite the decrease in total plant throughput by 29% at Zambartolome, our focus on processing purchased ore and increasing production at Golden Queen contributed to a robust financial result.

Alberto Morales: On health, safety, and environmental stewardship, we achieve zero lost time injuries and no reportable environmental incidents, demonstrating our commitment to safe and sustainable operation. On exploration and expansion, we continued exploration activities with a focus on Paca, Altavista, and Golden Queen, and the development of the FDF expansion are a key part of our growth strategy. Our consolidated production reached a record 2.5 million silver equivalent ounces during the water. As we express, it's an increase of 103% from the same period of last year. This increase was largely due to the incremental production from Golden Queen, which added 16,986 gold equivalent ounces.

Unknown Executive: We achieved zero lost time injuries and no reportable environmental, demonstrating our commitment to safe and sustainable exploration and Expansion; we continued exploration activities with a focus on PACA, Alta Vista, and Golden Wings, and the development of the FDF expansion is a key part of our growth strategy. Our consolidated production reached a record 2.5 million silver equivalent ounces during the quarter.

Speaker Change: on Health, Safety, and Environmental Stewardship.

Speaker Change: We achieved zero lost time injuries and no reportable environmental incidents, demonstrating our commitment to safe and sustainable operation.

Speaker Change: On exploration and expansion, we continued exploration activities with a focus on PACA, Alta Vista, and Golden Queen, and the development of the FDF expansion are a key part of our growth strategy.

Speaker Change: Our consolidated production reached a record 2.5 million silver equivalent ounces during the quarter.

Unknown Executive: As we express, it's an increase of 103% from the same period of last year, and this increase was largely due to the incremental production from gold and quin, which added 16,986 gold equivalent ounces. We achieved a record quarterly revenue of 69.8 million, which, as expressed, represents a 357% increase compared to Q2 2021. This growth was driven primarily by an additional 40 million in revenue from Golden Queen and a 14.5 million increase from San Bartolomeo.

Speaker Change: As we expressed, it's an increase of 103% from the same period of last year. This increase was largely due to the incremental production from gold and quin, which added 16,986 gold equivalent ounces.

Alberto Morales: We achieved the record quarterly revenue of 69.8 million, which, as expressed, represents a 357% increase compared to Q2 2023. This growth was driven primarily by an additional 40 million in revenue from Golden Queen, and a 14.5 million increase from San Bartolomé. We continued to invest in exploration and development, with a focus on identifying new sources of oxides, meat, meal feed, and advancing potential projects. Our exploration efforts are aimed at enhancing our ore resource base and ensuring future growth at both of our assets. Market conditions for silver and gold remain volatile, driven by factors beyond our control, such as inflation and interest rates in geopolitical factors.

Speaker Change: We achieved the record quarterly revenue of 69.8 million, which has expressed represents 8, 357 represents increased compared to Q2, 2020, 3.

Speaker Change: This growth was driven primarily by an additional $40 million in revenue from Golden Queen and a $14.5 million increase from San Bartolo.

Unknown Executive: We continue to invest in exploration and development, with a focus on identifying new sources of oxides, meat, and meal feed and advancing potential products. Our exploration efforts are aimed at enhancing our ore resource base and ensuring future growth at both of our islands. However, market conditions for silver and gold remain volatile, driven by factors beyond our control, such as inflation, interest rates, and geopolitics. We are closely monitoring these trends to navigate the challenges and capitalize on opportunities. In summary, our second quarter was marked by strong operational performance and financial growth.

Speaker Change: We continue to invest in exploration and development with a focus on identifying new sources of oxides, meat, mill feet, and advancing potential projects.

Speaker Change: Our exploration efforts are aimed at enhancing our ore resource base and ensuring future growth at both of our assets.

Speaker Change: Market conditions for silver and gold remain volatile.

Speaker Change: driven by factors beyond our control such as inflation, interest rates, and geopolitical factors.

Alberto Morales: We are closely monitoring these trends to navigate the challenges and capitalize on opportunities.

Speaker Change: We are closely monitoring these trends to navigate the challenges and capitalize on opportunities.

Alberto Morales: summary, our second water was marked by strong operational performance and financial growth. We remain committed to our strategic goals and look forward to continuing this positive trajectory.

Speaker Change: Summary, our second quarter was marked by strong operational performance and financial growth.

Unknown Executive: We remain committed to our strategic goals and look forward to continuing this positive, now turning to slide stick. During the quarter, we made significant strides in advancing our FDF project. The completion of all concrete, structural, steel, and mechanical works shows our team's dedication. As of June 30, 2024, we have incurred approximately $5.5 million against a budget of $6.7 million. The commissioning of the Fines Mineral Processing Plant on July 23, 2024, was a pivotal milestone. The plant is now operating, as we said, at 1,300 tons per day, and we are on track to ramp up to 1,500 tons per day by the end of Q2.

Speaker Change: We remain committed to our strategic goals and look forward to continuing this positive trajectory.

Alberto Morales: Now turning to slide 6, during the quarter, we made significant strides in advancing our FDF project. The completion of all concrete, structural steel, and mechanical works shows our team's dedication. As of June 30, 2024, we have incurred in approximately 5.5 million against a budget of 6.7 million. The commissioning of the finance mineral processing plant on July 23, 2024, was a pivotal mile. on for us. The plan is now operating, as we said, at 1,300 tons per day, and we are on track to ramp up to 1,500 tons per day by the end of Q3, 2024.

Speaker Change: Now turning to slide six.

Speaker Change: During the quarter, we made significant strides in advancing our FDF project.

Speaker Change: The completion of all concrete, structural, steel, and mechanical works shows our team's dedication.

Speaker Change: As of June 30, 2024, we have incurred approximately $5.5 million against a budget of $6.7 million.

Speaker Change: The Commissioning of the Pines' Menor of Processing Plant on July 23, 2024 was a pivotal milestone for us.

Speaker Change: The plant is now operating, as we said, at 1,300 tons per day and we are on track to ramp up to 1,500 tons per day by the end of Q3 2021.

Alberto Morales: This advancement not only optimizes the processing of the FDF deposit, but also enhances our overall operational efficiency. The FDF deposit, with its 3.3 million tons of proven and probable reserves, grading 58 grams per ton of silver, represents a substantial resource base. The utilization of previously considered waste materials aligns with our sustainability goals, contributing to both improved silver recovery and reduced environmental impact.

Unknown Executive: This advancement not only optimizes the processing of the FTF deposit but also enhances our overall operation. The FDF deposit, with its 3.3 million tons of proven and probable reserves, grading 58 grams per ton of silver, represents a substantial resource. The utilization of previously considered waste materials aligns with our sustainability goals, contributing to both improved silver recovery and reduced environmental impact. Morgan Queen.

Speaker Change: R. T. Forte.

Speaker Change: This advancement not only optimizes the processing of the FTF deposit but also enhances our overall operational efficiency.

Speaker Change: The FDF deposit, with its 3.3 million tons of proven and probable reserves, grading 58 grams per ton of silver, represents a substantial resource base.

Speaker Change: The utilization of previously considered waste materials aligns with our sustainability goals, contributing to both improved silver recovery and reduced environmental impact.

Alberto Morales: On woven queen, this was our second full-quarter operating Golden Queen after the acquisition in late November of last year. As a reminder, it offers a fully permitted open-bid heap-leach operation in a tier-wonder restriction, advancing our goal of being a mid-tier producer in the Americas. Golden Queen produced 16,986 gold equivalent ounces this quarter, reflecting a strong recovery from the December 2023 fire and improved operations post-acquisition. With strengthened our management team at Golden Queen with the addition of Silvan Lassar, as present in general management, its exceptional leadership skill, deep technical knowledge, improvement capabilities, its driving operational excellence, and costs control aligned perfectly with our company's goals.

Unknown Executive: This was our second full-quarter operating Golden Queen after the acquisition in late November of last year. As a reminder, it offers a fully permitted open bid heap leach operation in a tier one jurisdiction, advancing our goal of being a mid-tier producer in the. Golden Queen produced 16,986 gold equivalent ounces this quarter, reflecting a strong recovery from the December 2023 fire and improved operations post acquisition. With Strengthening Our Management Team at Golden Wing with the addition of Sylvain Lessard. Present and General Manager, he has exceptional leadership skill, deep technical knowledge, improvement capabilities, and is driving operational excellence and costs control aligned perfectly with our company.

Speaker Change: Golden Queen, this was our second full quarter operating Golden Queen after the acquisition in late November of last year.

Speaker Change: As a reminder, it offers a fully permitted open-pit heat bleach operation in a Tier 1 jurisdiction, advancing our goal of being a mid-tier producer in the Americas.

Speaker Change: Golden Queen produced 16,986 gold equivalent ounces this quarter, reflecting a strong recovery from the December 2023 fire and improved operations post-acquisition.

Speaker Change: with Strengthen Our Management Team at Golden Wing with the addition of Silvan Lezard as President and General Manager.

Speaker Change: His exceptional leadership skill, deep technical knowledge, and proven capabilities is driving operational excellence and cost control aligned perfectly with our company's goals.

Alberto Morales: We continue to focus on the opportunities ahead, namely optimizing its mine plan, improving our recovery and production, and increasing cash flow and optimizing operating costs per ounce. We are also defining and prioritizing exploration targets to help realize the potential upside of Golden Queen and extend the operations life of mines, with a plan to present a full-sum exploration program for the market towards the end of the year.

Unknown Executive: We continue to focus on the opportunities ahead, namely optimizing its mine plan, improving ore recovery and production, increasing cash flow, and optimizing operating costs. We are also defining and prioritizing exploration targets to help realize the potential upside of gold and quince and extend the operational life of mines with a plan to present a fulsome exploration program for the market towards the end. Following the Golden Queen acquisition, Andean is now a very different company than it was just 12 months ago.

Speaker Change: We continue to focus on the opportunities ahead.

Speaker Change: namely optimizing mine plan, improving ore recovery and production, and increasing cash flow and optimizing operating costs per ounce.

Speaker Change: We are also defining and prioritizing exploration targets to help realize the potential upside of gold and queen.

Speaker Change: and extend the operations life of mines with a plan to present a fulsome exploration program for the market towards the end of the year.

Alberto Morales: Following the Golden Queen acquisition, and the end, is now a very different company than it was just two months ago. This acquisition represents a significant transformation, effectively doubling our company's size across medical, critical metrics such as revenue, reduction, reserves, and workforce. As we continue to integrate Golden Queen into our operations, our team has been focused on streamlining processes to enhance efficiency and performance in alignment with our annual plan for 2024. We anticipate the second half of this year will be better, reflecting this integration. We will improve production and enhance operational. We have also developed a strong platform to support our ambitions of becoming a mid-tier producers in the Americas.

Speaker Change: Following the Golden Queen acquisition, Andean is now a very different company than it was just 12 months ago.

Unknown Executive: This acquisition represents a significant transformation, effectively doubling our company's size across metrical critical metrics such as revenue reduction, reserves, and work, as we continue to integrate gold and coin into our operation. Our team has been focused on streamlining processes to enhance efficiency and performance, in alignment with our annual plan for 2020. We anticipate the second half of this year will better reflect this integration with improved production and enhanced operations. We have also developed a strong platform to support our ambitions of becoming a mid-tier producer in the American market. We have several years of available reserves, as well as a diversified asset base of gold and silver production that is expected to drive growth in cash flow and profitability going forward. Further,

Speaker Change: This acquisition represents a significant transformation, effectively doubling our company's size across critical metrics such as revenue, production, reserves, and workforce.

Speaker Change: As we continue to integrate Golden Quint into our operations,

Speaker Change: Our team has been focused on streamlining processes to enhance efficiency and performance.

Speaker Change: in alignment with our annual plan for 2024.

Speaker Change: We anticipate the second half of this year will be better reflecting this integration with improved production and enhanced operational efficiencies.

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

Alberto Morales: We have several years of available reserves, as well as a diversified acid-base of cold and silver production, that is expected to drive growth in cashflow and profitability going forward. Further, our operational expertise in strong financial position enables us to continue to act on future opportunities for growth in real acquisitions.

Speaker Change: We have several years of available reserves, as well as diversified asset base of gold and silver production that is expected to drive growth in cash flow and profitability going forward.

Juan Carlos Sandoval: Our operational expertise and strong financial position enable us to continue to act on future opportunities for growth, the acquisition of rules. With that, I will hand over the reins to Juan Carlos, who will review our financials in more detail. Thank you, Alberto. First, I'll start with Tambra Dolomé, our operations in Bolivia. During the second quarter, we purchased 228,000 tons.

Speaker Change: Further, our operational expertise and strong financial position enable us to continue to act on future opportunities for growth through acquisitions.

Juan Carlos: With that, I will hand over the reins to Juan Carlos, who will review our financials in more detail.

Speaker Change: With that, I will hand over the rain to Juan Carlos who will review our financials in more details.

Juan Carlos: Thank you, Alberto. First, I will start with the summary element of our operations in Bolivia. During the second quarter, we purchased 228,000 tons, a 36% increase compared to 2023. This rise was driven by a strategic plan to increase third-party upside purchase materials for processing. Silver equivalent ounces produced were down 12% when compared to 2022-23. In fact, it mainly by the discontinuous of our project was the process and the late start-up of the FDF project. However, head creating proved to 155 grams per tonne, from 119 grams per tonne into 2023. Revenue surged 95% to 29.8 million, driven by higher sales volumes for the water and improved realized silver and gold prices.

Juan Carlos: Thank you, Alberto. First, I will start with San Bartolome, our operations in Bolivia.

Juan Carlos: During the second quarter, we purchased 228,000 tons, a 36% increase compared to Q2 2023.

Juan Carlos Sandoval: 36% increase compared to Q2 2020. This rise was driven by a strategic plan to increase third party upside purchase materials for. However, silver equivalent ounces produced were down 12% when compared to Q2 2020, impacted mainly by the discontinuance of Arpaiaco's deposit. And this late start-up on the FDF. However, head grade improved to 155 grams, from 190 to 119 grams per tonne into 20, revenue surge 95% 29.8 million, is everywhere, and Improved Realized Silver and Gold. We sold 1.1 million silver equivalent ounces at an average price of $27.81 per ounce.

Juan Carlos: This rise was driven by a strategic plan to increase third-party upside purchase materials for processing.

Juan Carlos: Silver equivalent ounces produced were down 12% when compared to Q2 2023, impacted mainly by the discontinuance of Arpaiaco's deposits and the late start up of the FDF project.

Juan Carlos: However, headgrading proved to 155 grams per ton, or from 119 grams, or 119 grams per ton into 2020.

Juan Carlos: Revenue surged 95% to $29.8 million, driven by higher sales volumes for the border and improved realized silver and gold prices.

Juan Carlos: We sold 1.1 million silver equivalent ounces at an average price of $27.81 per ounce. Compared to 2023, cash growth operating margin for silver equivalent ounce sold was $5.50, up from $1.52, reflecting higher realized prices and the gross margin ratio improved to 24.45%, up from 22.95%. For example, extended shares in the second quarter were 1.7 million, with 1.2 million directed towards the FDF.

Juan Carlos: We sold 1.1 million silver equivalent ounces at an average price of $27.81 per ounce.

Juan Carlos Sandoval: Part of Q2 2023, the gross operating margin for silver equivalent ounce was $5.15, up from $1.52. Reflecting higher real life, and the gross margin ratio improved to 24.45, from 22.9 capital expenditures in the second quarter were 1.7 million, with 1.2 million directed towards the FDA. Moving on to gold and quince operating and financial performance, Golden Queen produced 16,986 gold equivalent ounces in Q2 2025, demonstrating solid operational performance and a Strong Recovery from the Fire Incident in Lakeland.

Juan Carlos: compared to Q2 2023, cash gross operating margin for silver equivalent unsold was 5.15 dollars.

Speaker Change: are from $1.50 to $1.50.

Speaker Change: reflecting higher real-life prices and the gross margin ratio improved to 24.45% up from 22.95%.

Speaker Change: Capital expenditures in the second quarter were 1.7 million with 1.2 million directed towards the FDF.

Juan Carlos: Moving on to Gold and Queen's operating and financial performance. Gold and Queen produced 16,986 gold equivalent ounces in Q2 2020-24. Demonstrating solid operational performance and strong recovery from the fire incident in late December. Revenue surged 40 million for the floor with 17,348 gold equivalent ounces sold at an average realized price of 2,305 per ounce. The total operating cash cost per ounce sold was 2,305,000 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at an average realized price of 2,305 gold equivalent ounces sold at was 1,350 per ounce, which is a direct result of the improved operations of Golden Queen since its acquisition in November 2023.

Speaker Change: Moving on to gold and queens operating and financial performance.

Speaker Change: Golden Queen produced 16,986 gold-equivalent ounces in Q2 2024, demonstrating solid operational performance and strong recovery from the fire incident in late December.

Juan Carlos Sandoval: Revenue, which 40 million for the... 17,348 Gold Equivalent Bounces Sold, at an average realized price of $2,305. The total operating cash costs per ounce sold net by product. 1350 per hour, which is a direct result of the blamed operations of Goldman since its acquisition in November 2020. And finally, the only sustaining cost and only cost per ounce sold are metal byproducts. 1,700 and 1782 per ounce, underscoring our focus on maintaining while delivering on, Moving on to our overall financial performance.

Speaker Change: Revenues reached $40 million for the quarter with 17,348 gold equivalent ounces sold at an average realized price of $2,305 per ounce.

Speaker Change: The total operating cash cost per ounce sold net of byproducts was 1,350 per ounce, which is a direct result of the improved operations at Golden Queen since its acquisition in November 2023.

Juan Carlos: And finally, the only sustained cost, an all-in-cost per ounce sold net-of-buy product, where 1,752 and 1,782 per ounce respectively, underscoring our focus on maintaining cost efficiency while delivering non-production targets.

Speaker Change: And finally, the only sustaining cost and only cost per ounce sold metal by-products were $1,752 and $1,782 per ounce respectively.

Speaker Change: Underscoring our focus on maintaining cost efficiency while delivering on production targets.

Juan Carlos: Moving on to our overall financial performance. For the second quarter, we saw a substantial improvement in our financial metrics. The solid-dated revenue reached 69.8 million, a significant rise from the 15.3 million in Q2 2023. This revenue growth was driven by a 103% increase in silver equivalent production and higher average real-life prices per silver and gold. Total cost of sales increased to 47.8 million in the second quarter, a trivial to incremental cost from Golden Queen, and higher cost from to the sum of total meal operations, due to increased sales loans. Finance costs were 1.6 million, mainly due to the interest on the Golden Queen's name straight prior priority loan.

Juan Carlos Sandoval: For the second quarter, we saw a substantial improvement in our financial consolidated revenue, 9.8, a significant rise from the 15.3 million in Q2 2020. The revenue growth was driven by a hundred and three percent increase in Silver Equivalent Products and higher average real life prices for silver and gold. Total cost of sales increased to $47.8 million in the second, Unknown to incremental costs and higher cost firms to the San Bartolomeo Parade, you to increase finance costs were $1.6 million, mainly due to their interest in the gold in Queens, Maine. Where do we realize that they are foreign exchange gaming? 0.4 million, driven by premiums on US dollar sales in Bolivia. Capital expenditures for the quarter totaled $5.2 million. 21.7.

Speaker Change: Moving on to our overall financial performance.

Speaker Change: For the second quarter, we saw a substantial improvement in our financial metrics.

Speaker Change: Consolidated revenue reached 69.8 million, a significant rise from the 15.3 million in Q2 2023.

Speaker Change: This revenue growth was driven by a 103% increase in silver equivalent production and higher average real life prices for silver and gold.

Speaker Change: Total cost of sales increased to $47.8 million in the second quarter.

Speaker Change: attributable to incremental costs from Golden Queen and higher costs from the San Bartolomeo operations due to increased sales volume.

Speaker Change: Finance costs were $1.6 million, mainly due to the interest on the Gold and Queen's Main Street Priority Loans.

Juan Carlos: We realized a foreign exchange gaming of 3.4 million, driven by premiums on U.S. Dollar sales in Bolivia. Capital expenditures for the quarter total 5.2 million, from which 1.7 was Sambar Tome, and 3.5 million for Golden Queen. We remain vigilant regarding market volatility and its impact on our financial performance. Our focus continues to be on operational efficiency and strategic growth. In conclusion, Q2 2024 was marked by a robust financial performance and significant operational milestones. We are well positioned for continued success, and are committed to delivering value to our shareholders.

Speaker Change: We realized a foreign exchange gain of $3.4 million driven by premiums on U.S. dollar sales in Bolivia.

Speaker Change: Capital expenditures for the quarter totaled $5.2 million, of which $1.7 was Sambar Tolome and $3.5 million for Golden.

Speaker Change: We remain vigilant regarding market volatility and its impact on our financial portfolio. Our focus continues to be on operational efficiency and strategic growth.

Speaker Change: In conclusion, Q2 2024 was marked by robust financial performance and significant operational milestones.

Speaker Change: We are well positioned for our continued success and are committed to delivering value toward shareholders.

Juan Carlos: Moving on to our capitalist structure on slide 11. As of June 30, 2024, we had liquid assets of 87 million of cash and cash equivalent, a negative net debt, and 121 million of foreign capital. Our mandate is and will continue to be on maintaining our balance sheet to support future growth.

Speaker Change: Moving on to our capital structure on slide 11.

Speaker Change: June 30, 2024, we had liquid assets of $87 million of cash and cash equivalents.

Speaker Change: A negative net debt and 121 million of working capital.

Speaker Change: My mandate is and will continue to be on maintaining our balance sheet to support future growth.

Alberto Morales: Now, I'll turn it back to over 12 hours to provide any closing remarks. Thank you, Juan Carlos. To summarize, Andy and Prision's medal has demonstrated strong operational and financial performance in the second quarter. Our advancements in the FDF project, record production, and revenue growth underscores our commitment to creating value and achieving our strategic success.

Speaker Change: Now, I'll turn it back over to Alberto for any closing remarks.

Alberto Morales: Andean Precious Metals has demonstrated strong operational and financial performance in. Our advancements in the FDF project, record production, and revenue growth underscore our commitment to creating value and achieving our strategic objectives. San Bartolomei, we will be working towards signing additional agreements to process high-margin third-party work and stabilizing production from the F. Golden 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 We appreciate your continued support and look forward to updating you on our progress in the coming quarter.

Alberto: Thank you, Juan Carlos.

Alberto: to summarize.

Alberto: and the precious metal has demonstrated strong operational and financial performance in the second quarter.

Alberto: Our advancements in the FDF project, record production, and revenue growth underscores our commitment to creating value and achieving our strategic objectives.

Alberto Morales: of Objectives. At San Bartolome, we will be working towards signing additional agreements to process high margin third party work and stabilizing production from the FDF project. At Golden Queen, we will continue to leverage our expertise and experience to stay focused on the implementation of the identified strategies to optimize operations, productions, and visions. We appreciate your continued support and look forward to updating you on our progress in the coming quarters.

Speaker Change: At San Bartolomé, we will be working towards signing additional agreements to process high-margin third-party work and stabilizing production from the FDA project.

Speaker Change: At Golden Queen, we will continue to leverage our expertise and experience to stay focused on the implementation of the identified strategies to optimize operations, productions, and efficiencies.

Speaker Change: We appreciate your continued support and look forward to updating you on our progress in the coming quarters.

Unknown Executive: With that, I will now open the call for questions.

Alberto Morales: I will now open the call for questions. Operator, please go ahead. Ladies and gentlemen, at this time, we'll begin the question and answer session. To ask a question, you may press star and one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, we do ask that you please pick up your handset before pressing the key.

Speaker Change: with that.

Operator: Operator, please go ahead.

Speaker Change: I will now open the call for questions.

Operator: Ladies and gentlemen, at this time, we will begin the question-and-answer session. To ask a question, you may press star and one on your telephone keypad. We will hear a tone acknowledging your request. If you are using a speaker phone, we do ask the police to cup your hand set before pressing the keys.

Operator: So withdraw your questions; you may press star and to. We'll pause for a moment as callers join the question queue. Our first question today comes from Justin Chan from S.C.P. research finance. Please go ahead with your question. Thanks guys, congratulations on the positive cash flow. I think that's a huge catalyst. And just to compliment the new disclosure. There's a lot of useful information, so it made it a lot easier this morning. My first question is just on, on San Bartolome and...

Speaker Change: Operator, please go ahead.

Speaker Change: Ladies and gentlemen, at this time, we'll begin the question and answer session. To ask a question, you may press star and one on your telephone keypad. You will hear a tone acknowledging your request.

Operator: Good morning, everyone, and welcome to Andean Precious Metals conference call to discuss the company's operating highlights and financial results for the three and six months ended June 30, 2024. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions to join the questions to key you may press star and then one using a telephone keypad, should you need assistance during the conference call, you may single an operator by pressing star and euro.

Speaker Change: If you're using a speakerphone, we do ask that you please pick up your handset before pressing the keys.

Operator: So, withdraw your questions. You may press star and two. We will pause a moment as colors join the question to you.

Speaker Change: So, withdraw your questions, you may press star and two.

Speaker Change: We'll pause a moment as callers join the question queue.

Justin Chan: Our first question today comes from Justin Chan from SCP Research Finance. Please go further. I think that is a huge catalyst. Just to compliment, the new disclosure; I really like it. There was a lot of useful info. It made it a lot easier this morning.

Alberto Morales: I guess, as you look at the current quarter and the next quarter, you know, your oil purchase volumes ticked up in Q2. Do you think they can increase a little bit further? And likewise, just on the FTF, I guess, what are you expecting for Q3 and Q4 volumes, maybe averaging through the quarter? Hello Justin. This is Alberto.

Speaker Change: Our first question today comes from Justin Chan from SCP Research Finance. Please go ahead with your question.

Justin Chan: Thanks guys. Congratulations on the positive cash flow. I think that's huge.

Speaker Change: catalyst and just to compliment the new disclosure I really like it there's a lot of useful info so it made it a lot easier this morning

Amanda Mallough: I now like to turn the floor over to Aminda Mallough, director and best of relations. Please go ahead. Thank you, operator, and good morning, everyone.

Justin Chan: My first question is just on San Bartolome. As you look at the current quarter and the next quarter, you know, your purchase volumes took up in Q2. Do you think they can increase a little bit further? Likewise, just on the FTF, I guess what are you expecting for Q3 and Q4 volumes, maybe averaging through the quarter?

Speaker Change: My first question is just on

Speaker Change: on San Bartolome and

Amanda Mallough: Before we get started, I would like to point out that during today's fall, we may make full-resulting 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.

Speaker Change: I guess, as you look at the current quarter and the next quarter, you know, your oil purchase volumes ticked up in Q2. Do you think they can increase a little bit further?

Speaker Change: And likewise, just on the FTF, I guess, what are you expecting for Q3 and Q4 volumes, you know, maybe averaging through the quarter?

Unknown Executive: Our press release, MDNA, and financial statements are available on both Cedar Plus and on our corporate website, andeanpm.com.

Alberto Morales: Hello, Justin. Well, thank you for your question. So, let me first address the purchases. The answer to that is yes. We're actively pursuing to increase our third-party war purchases, and we have certain projects on the pipeline that we're hoping to materialize that will increase our tonnage available tonnage for processing. So, we're heavily involved, I would say, in aggressively pursuing that.

Alberto Morales: Well, thank you for your questions. So, firstly, address the purchase the purchases? The answer to that is yes; we're actively pursuing to increase our third-party war purchases. And we have certain projects on the pipeline that we're hoping to materialize that will increase our available tonnage for process. So we're heavily involved, I would say, and aggressively pursuing that avenue. Now in connection with the FDF, yes, indeed, it took us about four to six weeks longer to get it commissioned, but we're finally fully commissioned and working on it.

Speaker Change: Oh.

Speaker Change: Hello, Justin. This is Alberto. Well, thank you for your question. So let me first address

Unknown Executive: With us on today's webcast is Alberto Morales, andean's executive chairman and CEO.

Speaker Change: The purchase the purchase is the answer to that is yes, we're actively pursuing to increase our third-party war purchases

Amanda Mallough: Juan Carlos and the Vol, our financial officer, and Alex Pasguel, our new director of financial planning and analysis. Following management's formal remarks, we will open the call to questions, and now I pass it on to Alberto.

Speaker Change: and we have certain projects on the pipeline that we're hoping to materialize that will increase our tonnage, available tonnage for processing.

Speaker Change: So we're heavily involved, I would say, and aggressive with pursuing that album.

Alberto Morales: Now, in connection with the FTF, yes and yes, it took us about four to six weeks longer to get it commissioned, where we're finally completely commissioned, working on it. And during these initial stages, where we're starting to produce roughly about 1,300 tons per day, we are starting with the upper part of the FTF. That upper part of the FTF, it's really the ending part of the Payacos deposit, the low grid Payacos deposit. So, the gray is going to start to increase as we go deep into the FTF. So we're looking if you wanted to use the analogy on a micro mining plan on the FDF by starting to achieve as soon as possible deeper zones where we can get higher grade and get to the 50 grams per ton average grade per ton.

Speaker Change: Now, in connection with the FDF, yes, indeed, it took us about four to six weeks longer to get it commissioned, but we're finally fully commissioned working on it.

Alberto Morales: And during these initial stages, when we're starting to produce roughly about 1300 tons per day, we are starting with the upper part of the FDF. That upper part of the FDF is really the end part of the Payakos deposit, the low grade Payakos deposit. So the grade is going to start to increase as we go deep into the FTF. So we're looking, if you wanted to use the analogy, at a micro mining plan of the FTF by starting to achieve as soon as possible deeper zones where we can get higher grades and get to the 50 grams per ton. Average Trade Proton.

Speaker Change: And during these initial stages where we're starting to produce roughly about 1,300 tons per day.

Alberto Morales: We have record production and revenues by achieving on a consolidated basis, 2.5 million silver equivalent analysis produced, which is a 103 percent increase from Q2 2023. Our revenue soar to 69.8 million, marking a 357 percent year-over-year increase. We have successfully commissioned the FDF project. Our new fine mineral processing plant at San Bartolome was commissioned on July 23rd, 2024. It is now operating at 1300 tons per day, and we aim to ramp up to 1500 tons per day by the end of Q3 2024, enhancing overall performance and sustainability.

Speaker Change: We are starting with the upper part of the FDA.

Speaker Change: That upper part of the FTF, it's really the ending part of the Payakos deposit, the low-grade Payakos deposit. So the grade is going to start to increase as we go deep into the FTF.

Speaker Change: So we're looking if you wanted to use the analogy on a micro mining plan of the FTF by starting to achieve as soon as possible deeper zones where we can get higher grade and get to the 50 grams per ton.

Alberto Morales: That will be a ramp up for that. But to be summarizing your question, we're hoping to average roughly approximately, I would say 30,000 pounds is produced from the FDF on a monthly basis on total beginning August. So that's roughly what we're estimating. And certainly by the time we exhaust the opposite parts and continue to go into the deeper portion, we are expecting that that could be increased, but perhaps at the beginning, starting at the beginning of the line, you'll probably just in terms of fully your guidance. It's back halfway. That'll probably more come from or purchasing than the FDF, at least for the next two quarters.

Speaker Change: average grade per ton that'll be there'll be a ramp up for that

Alberto Morales: That will be a ramp-up for that. But to be summarizing your question, we're hoping to average roughly, approximately, I would say 30,000 ounces produced from the FDF on a monthly basis in total beginning August. That's roughly what we're estimating. And certainly, by the time we exhaust the upper part and continue to go into the deeper portion, we are expecting that that could be increased, but perhaps at the beginning.

Speaker Change: But...

Speaker Change: To be summarizing your question, we're hoping to average roughly, approximately, I would say 30,000 ounces produced from the FDF on a monthly basis on total beginning August .

Alberto Morales: Q2 shows a strong financial performance, significant improvements in San Bartolome's financial metrics with a gross operating margin of $5.15 per silver equivalent analysis from 1.52 in Q2 2023, and a gross margin ratio of 24.45 percent. Compared to 22.95% on operational efficiency, despite the decrease in total plant throughput by 29% at San Bartolome, our focus on processing purchase or an increasing production at Golden Queen contributed to a robust financial results.

Speaker Change: So that's roughly what we're estimating, and certainly by the time we exhaust the upper part and continue to go into the deeper portion, we are expecting that that could be increased, but perhaps at the beginning, starting beginning of next year.

Alberto Morales: Okay, thanks. That's, that's, that's quite helpful. So maybe to read between the lines, the, you'll probably just in terms of full guidance and, It's back halfway. That'll probably come from or purchasing than the FDF at least for the next two quarters. Yes.

Speaker Change: Okay, thanks, that's quite helpful. So, maybe the read-in between the lines, you're probably just...

Speaker Change: In terms of full year guidance, it's back halfway, so that'll probably more come from our purchasing than the FDF, at least for the next two quarters.

Justin Chan: Yes. Okay, thanks. That's that's really helpful in that side of things.

Unknown Speaker: Okay, thanks. That's really helpful on that side of things. Also, I guess the back half waited for is your CapEx guidance. I saw you reiterated it today, but you know, you're, I guess halfway through the year, your CapEx is below that run rate, let's say, um, how much potential is there for you to come in below your full year guidance and CapEx, you think? In the second half, are you pretty confident that you'll hit that kind of $24 million? Remember? Yeah, thank you, Justin.

Speaker Change: Yes.

Justin Chan: Also, I guess back halfway through the year, your capex is below that runway. Let's say I guess how much potential is there for you to come in below your full guidance and capex, do you think? In the second half, are you pretty confident that you'll hit that 24 million dollar number?

Speaker Change: Okay, thanks. That's really helpful on that side of things. Also, I guess back-half-weighted is your CapEx guidance. I saw you reiterated it today, but, you know, I guess halfway through the year, your CapEx is...

Speaker Change: below that run rate, let's say.

Speaker Change: I guess how much how much potential is there for you to come in below your full year guidance in CAPEX do you think?

Speaker Change: In the second half, are you pretty confident that you'll hit that kind of $24 million number?

Alberto Morales: Yeah, thank you, just in its JC. I would say we are; we're in line with what was presented. You know, we, we, we have a budget for $20 million. How will they have been spent for the first half? So I would, yeah, I would say we are well in line. I think we will be spending, or we will be reaching that among our enemies. Okay. Okay, that's those two are; those two are quite helpful.

Juan Carlos Sandoval: It's JC. I would say we are well in line with what was presented. As you know, we have a budget of around $20 million. Half of it has been spent on the first half.

Speaker Change: Yeah, thank you, Justin. It's JC. I would say we are with in mind with what was presented, as you know, we, we, we have a budget of around $20 million. Half of it has been spent for the first half.

Alberto Morales: This increase was largely due to the incremental production from Golden Queen, which added 16,986 gold equivalent ounces. We achieved the record quarterly revenue of 69.8 million, which, as expressed represents, a 357% increase compared to Q2 2023. This growth was driven primarily by an additional 40 million in revenue from Golden Queen, and a 14.5 million increase from San Bartolome. We continued to invest in exploration and development, with a focus on identifying new sources of oxides, meat, meal feed, and advancing potential projects. Our exploration efforts are aimed at enhancing our ore resource base and ensuring future growth at both of our assets.

Juan Carlos Sandoval: So I would, Yeah, I would say we are well in line. We will be reaching that amount towards the end of the year. Okay. Um, Okay, those two are quite helpful, I think. Overall, maybe just one last one on, I guess, working capital. Are you expecting any kind of movement in the second half?

Speaker Change: So I would, yeah, I would say we are well in line. I think we will be reaching that amount by the end of the year.

Speaker Change: Okay.

Justin Chan: I think I mean, overall, maybe, maybe just one last one on. I guess working capital, are you expecting any kind of movement in the second half? I noticed your, for example, your receivables are a little bit lower than, let's say they are traditionally. Is that just, you know, is that anything specifically behind that? Or would you expect kind of those members to normalize and or just any other movement to work in capital that should be aware of modeling the second half? Yeah, not really just in our accounts receivable and that our accounts payable. They have those differences as a closing months, closing months.

Speaker Change: Okay, those two are quite helpful, I think.

Juan Carlos Sandoval: I noticed your, for example, your receivables are a little bit lower than, let's say, they are traditionally. Is that just, you know, that there is anything specifically behind that, or would you expect kind of those members to normalize? And or just any other movement in working capital that I should be aware of modeling the second half. [inaudible] Yeah, not really not just in our accounts receivable and our accounts payable. They have those differences as well, months, closing months, but I would say for purposes of modeling for the rest of the year, they're pretty stable.

Speaker Change: I mean, overall, maybe maybe just one last one on, I guess, working capital. Are you expecting any kind of?

Speaker Change: Any kind of movement in the second half. I noticed your for example, your receivables are a little bit lower than Let's say that they are traditionally

Speaker Change: Is that just, you know, is that, is there anything specifically behind that or would you expect kind of those numbers to normalize? And or just any other movements working capital that I should be aware of modeling the second half?

Alberto Morales: Market conditions for silver and gold remain volatile, driven by factors beyond our control, such as inflation and interest rates in geopolitical factors. We are closely monitoring these trends to navigate the challenges and capitalize on opportunities, summary, our second water was marked by strong operational performance and financial growth. We remain committed to our strategic goals and look forward to continuing this positive trajectory.

Speaker Change: Yeah, not really, Justin. Our accounts receivable and our accounts payable, they have those differences as a closing

Alberto Morales: But I would say, for purposes of modeling for the rest of the year, they're pretty stable. I don't see any big differences from what we have right now. As you can see, we have a strong working capital and strong balance.

Speaker Change: months, closing months, but I would say for purposes of modeling for the rest of the year, they're pretty stable. I don't see any big differences from what we have right now. As you can see, we have a strong

Juan Carlos Sandoval: I don't see any big differences from what we have right now. As you can see, we have a strong working capital and a strong balance. So I would say they would pretty much keep that thing. Okay, and then sorry, sorry, anyone else on the line, I just have one last one on now that you are starting to generate positive cash flow and earnings. I guess on tax timing is, is it best to model it as?

Justin Chan: So I would say that they would pretty much stay, keep that same trend. Okay, and then sorry, I don't know if it's in the line. I just have one last one. Now that you are starting to generate positive cash loan earnings, I guess on tax timing, is it best to model it as your underlying earnings are incurred or I guess are there any subtleties there that we should be aware of? No, I mean everything is sold and we get paid within 30 days, and that's, you know, I would say no, no no difference. Okay, so just model kind of cash tax and yeah, along with underlying earnings.

Speaker Change: working capital and strong balance. So I would say they would pretty much stay, keep that same trend.

Speaker Change: Okay, and then, sorry anyone else on the line, I just have one last one. Now that you are starting to generate positive cash flow and earnings, I guess on tax timing, is it best to model it as

Juan Carlos Sandoval: As your underlying earnings are incurred, or I guess, are there any subtleties there that we should be aware of? I mean, everything is sold, and we get paid within 30 days, and that's, I will say, no. No, no difference.

Speaker Change: As your underlying earnings are incurred or I guess are there any subtleties there that we should be aware of?

Speaker Change: No, I mean everything is sold and we get paid within 30 days and that's, you know, I would say no.

Alberto Morales: The commissioning of the finance mineral processing plant on July 23, 2024 was a pivotal mile, on for us. The plan is now operating, as we said, at 1,300 tons per day, and we are on track to ramp up to 1,500 tons per day by the end, Q3, 2024. This advancement not only optimizes the processing of the FDF deposit, but also enhances our overall operational efficiency.

Juan Carlos Sandoval: Okay. Okay, so just just model a kind of cash tax and, yeah, along with underlying earnings. Okay, great. Thanks a lot, guys. I really appreciate the call and congratulations. Thank you, Justin.

Speaker Change: No, no difference. Okay.

Speaker Change: Okay, so just model kind of cash tax along with underlying earnings.

Justin Chan: Okay, great. Thanks a lot, guys. I really appreciate the color and the color. Congratulations. Thank you, Justin.

Speaker Change: Hey!

Speaker Change: Okay, great. Thanks a lot, guys. I really appreciate the call and congratulations.

Unknown Executive: Once again, if you would like to ask a question, please press star and one.

Justin Chan: Thank you Justin

Speaker Change: Once again, if you would like to ask a question, please press star and one.

John Sclodnick: Our next question comes from John Sclodnick from Aja Dan. Please go ahead with your question. Hi guys, yeah, thanks for taking my question here, and congrats on the good core. I agree just in that free cash flow generation. I guess a little bit further on those third party or sources, just wondering if you're seeing, you know, fixed cost purchase opportunities or fixed margin. I would say we're looking at both John. Good to talk to you. We're pursuing a sub-sector already mentioned trying to get new long-term contracts on their fixed prices. Then we're also, you know, looking at more spot prices, spot purchase as well.

Operator: Once again, if you would like to ask a question, please press star and one. Our next question comes from John Sklodnik from Desjardins. Please go ahead with your question. Hi guys, yeah, thanks for taking my question here and congrats on the good core, and I agree to see that free cash flow generation. I guess a little bit further on those third-party or sources, just wondering if you're seeing fixed cost purchase opportunities or fixed margins. I would say we're looking at both. John, it's good to talk to you.

Speaker Change: Our next question comes from John Sklodnik from Desjardins. Please go ahead with your question.

Alberto Morales: The FDF deposit, with its 3.3 million tons of proven and probable reserves, grading 58 grams per ton of silver, represents a substantial resource base. The utilization of previously considered waste materials aligns with our sustainability goals, contributing to both improved silver recovery and reduced environmental impact.

John Skalabic: Hi guys yeah thanks for taking my question here and congrats on the good quarter and yeah great to see that.

Speaker Change: Unknown Speaker Free Cash Flow Generation.

Speaker Change: I guess a little bit further on those third party ore sources, just wondering if you're seeing, you know, fixed cost purchase opportunities or fixed margin.

John Skalabic: I would say we're looking at both. John, good to talk to you. We're pursuing, as Alberto already mentioned, trying to get new long-term contracts on their fixed prices and we're also, you know, looking at more spot prices or spot purchases as well.

Alberto Morales: On woven queen, this was our second full-quarter operating golden queen after the acquisition in late November of last year. As a reminder, it offers a fully permitted open-bid heap-leage operation in a tier-wonder restriction, advancing our goal of being a mid-tier producer in the Americas. Golden Queen produced 16,986 gold equivalent ounces this quarter, reflecting a strong recovery from the December 2023 fire and improved operations post-acquisition. With strengthened our management team at Golden Queen with the addition of Silvan Lassar, as present in general management, its exceptional leadership skill, deep technical knowledge, improvement capabilities, its driving operational excellence, and costs control aligned perfectly with our company's goals.

Unknown Executive: We're pursuing, as Alberto already mentioned, trying to get new long-term contracts on their fixed prices. And we're also, you know, looking at more spot prices for spot purchases as well. So yeah, that's what we have. Okay, so it should be a blend.

John Sclodnick: So yeah, that's what we have right now. Okay, so it should be a blend.

Unknown Executive: Okay, great. And then, I guess, a little more on capital allocation. Yeah, you guys are generating free cash, well, FDF construction is largely behind you, NCID's complete, just beyond, I guess, acquisitions, which it sounds like you're still actively looking at. Just curious how you're thinking about that, or just happy to continue to build the treasury and add to those marketable securities.

John Skalabic: So, yeah, that's what we have right now.

John Sclodnick: Okay, great.

Alberto Morales: And then I guess a little more on capital allocation. I mean, yeah, you guys are generating free cash flow. FDF construction is largely behind you, and CID is complete just beyond. I guess acquisitions, which it sounds like you're still actively looking at. I'm just curious how you're thinking about that or just happy to continue to build the treasury and add to those marketable securities. Yes, well, yes, John, to be specific in that, we have always told the market that we're actively looking for opportunities as they come across to us and we're open to deploy our watches, our cash flow strength.

John Skalabic: Okay, so it should be a blend. Okay, great. And then I guess a little more on capital allocation. I mean, yeah, you guys are generating free cash flow. FDF construction is largely behind you. NCIB is complete, just beyond, I guess, acquisitions, which it sounds like you're still actively looking at. Just curious how you're thinking about that, or just happy to continue to build the treasury and add to those marketable securities.

Unknown Executive: To be specific, we have always told the market that we're actively looking for opportunities as they come across to us and we're open to deploy our watches. We have a very strong cash flow position; we're still under leveraged. We can still look at this cash flow generation with titles and the end to even look at another acquisition that we hope will be transformational depending on what's available in the market. But I can just say that we're actively looking. Fair enough. Yeah, no, I know that.

John Skalabic: Yes, well, yes, John, to be specific on that, we have always told the market.

Speaker Change: that we're actively looking for opportunities.

Speaker Change: As they come across to us and we're opened

Alberto Morales: We continue to focus on the opportunities ahead, namely optimizing its mine plan, improving our recovery and production, and increasing cash flow and optimizing operating costs per ounce. We are also defining and prioritizing exploration targets to help realize the potential upside of Golden Queen and extend the operations life of mines with a plan to present a full-sum exploration program for the market towards the end of the year. Following the Golden Queen acquisition, and the end, is now a very different company than it was just two months ago.

Speaker Change: to deploy our war chest or our cash flow strength. We have a very strong cash flow position. We're still under leveraged. We can still look even this cash flow generation with titles and the end to even look.

Alberto Morales: We have a very strong cash flow position. We're still under leveraged. We can still look even, this cash flow generation titles, Andy, and to even look at another requisition that we hope will be transformational depending on what's available in the market. But I can just say that we're actively looking.

Speaker Change: at another acquisition that we hope will be transformational depending on what's available in the market, but I can just say that we're actively looking.

John Sclodnick: Fair enough. Yeah, no, I know it's always a tough question on a conference call.

Unknown Executive: It's always a tough question on a conference call. And I guess, turning to Soledad Mountain, just curious what you're seeing on the exploration front and if there's any kind of oxide targets that you're excited about. Yeah, we will. It's definitely something we're working on. Our intention is probably to present a more comprehensive exploration plan before the end of the year. We have been working on that. So yes, before the end of the year, the intention is to present a plan that will, you know, extend my life. Okay, excellent. Well, that's it for me on questions. It's exciting to see you guys generate that free cash flow.

Alberto Morales: And I guess just turning to solid ad mountain, just curious what you're seeing on the exploration front, and if there's any kind of oxide targets that you're excited about. Yeah, we will be. It's definitely something we're working on. Our intention is probably before the end of the year; we're presenting a more comprehensive exploration plan. We have been working on that. So yes, before the end of the year, the intention is to present the plan that will, you know, extend the life of mine.

Speaker Change: Fair enough. Yeah, no, I know it's always a tough question on a conference call. And I guess just turning to Soledad Mountain, I'm just curious what you're seeing on the exploration front and if there's any kind of oxide targets that you're excited about.

Alberto Morales: This acquisition represents a significant transformation, effectively doubling our company's size across medical, critical metrics such as revenue, reduction, reserves, and workforce. As we continue to integrate Golden Queen into our operations, our team has been focused on streamlining processes to enhance efficiency and performance in alignment with our annual plan for 2024. We anticipate the second half of this year will be better reflecting this integration. We will improve production and enhance operational We have also developed a strong platform to support our ambitions of becoming a mid-tier producers in the Americas.

Speaker Change: Yeah, we will be. It's definitely something we're working on. Our intention is probably before the end of the year we present a more comprehensive exploration plan. We have been working on that.

Speaker Change: So yes, before the end of the year, the intention is to present a plan that will, you know, extend the life of mine.

John Sclodnick: Okay, excellent.

Operator: And yeah, thanks a lot for that call. And ladies and gentlemen, by showing no additional questions, we will conclude today's question and answer session. I'd like to turn the conference call back over to Alberto Morales for closing remarks. Operator, our colleague Amanda has received one question from our investors. So if you don't mind, before we close the call, I'll let her raise the question. Yeah, the question is just if the company has any plans.

John Sclodnick: Well, that's it for me for questions. I'm excited to see you guys generate that free cash. Oh, and yeah, thanks up to that color.

Speaker Change: Okay, excellent. Well, that's it for me for questions. Exciting to see you guys generate that free cash flow. And yeah, thanks a lot for that, Keller.

Unknown Executive: Yeah, the gentleman and showing the additional questions.

Amanda Mallough: We'll conclude today's question-and-answer session. I'd like to turn the conference call back over to Alberto Morales for closing remarks. Operator, our colleague Amanda has received one question from our investor. So if you don't mind, before we close the call, I'll let her raise the question openly. Yeah, the question is just if the company has any plan to renew the NCIB program. To data fade, what I would say is that we have exhausted the numbers of available shares to be repurchased back under our current NCIB program. And we're certainly in order to consider the renewal of this.

Juan Carlos Sandoval: Andean Precious Metals, And 3.5 million. We remain vigilant regarding market volatility. Unknown Speaker. Thank you; the focus continues to be on operational efficiency. Andean Concois, 2024. Mark a robust financial performer, and Significant Operational, We are well positioned for continuous growth, and are committed to delivering roles. Moving on to our capitalist structure on slide. June 30, 2024, we had liquid assets of 87 million in cash, a negative net debt, and 121,000,000,000,000,000 Andean Precious Metals. The mandate is and will continue to be on maintaining our balance sheet to support. Now, I'll turn it back to over 12, after 4, and close to 10, 1. Thank you, Juan Carlos, summarized.

Speaker Change: And ladies and gentlemen, in showing no additional questions, we will conclude today's question and answer session. I'd like to turn the conference call back over to Alberto Morales for closing remarks.

Alberto Morales: Operator, our colleague Amanda has received one question from our investors. So if you don't mind, before we close the call, I'll let her raise the question openly.

Alberto Morales: We have several years of available reserves, as well as diversified acid-base of cold and silver production, that is expected to drive growth in cashflow and profitability going forward. Further, our operational expertise in strong financial position enables us to continue to act on future opportunities for growth in real acquisitions.

Speaker Change: Yeah, the question is just if the company has any plan to renew the NCIB program.

Operator: To clarify, what I would say is that we have exhausted the number of available shares to be repurchased under our current NCIEP program. And we certainly in order to consider the renewal of this, we would need to get advice from counsel as I believe the regulatory environment requires some waiting period on it, which, So, for now, I cannot go one way or another; we will basically need to get advice from counsel as to the waiting period that this may find.

Speaker Change: To that effect, what I would say is that we have exhausted the numbers of available shares to be repurchased back under our current NCIAB program.

Juan Carlos: With that, I will hand over the rain to Juan Carlos, who will review our financials in more details. Thank you, Alberto.

Speaker Change: and we're certainly in order to consider the renewal of this, we would need to get advice from council, aside to leave the regulatory environment requires for some waiting period on it.

Amanda Mallough: We would need to get advice from council, as I believe the regulatory environment requires for some waiting period on it, which so for now, I cannot go one way or another. One will basically need to get advice from council as to the waiting period that this may represent.

Juan Carlos: First, I will start with the summary element of our operations in Bolivia. During the second quarter, we purchased 228,000 tons, a 36% increase compared to 2023. This rise was driven by a strategic plan to increase third-party upside purchase materials for processing. Silver equivalent ounces produced were down 12% when compared to 2022-23. In fact, it mainly by the discontinuous of our project was the process and the late start-up of the FDF project. However, head creating proved to 155 grams per tonne, from 119 grams per tonne into 2023.

Speaker Change: So for now, I cannot go one way or another one. We'll basically need to get advice from Council as to the waiting period that this might represent.

Alberto Morales: And if there is any no more further questions and basically I would like to thank you all for joining us today and for your continued support. As we have expressed, we remain committed to driving our business forward and look forward to sharing our progress in the coming quarters ahead. Thanks again, and have a great day.

Operator: And if there are any more further questions, then basically, I would like to thank you all for joining us today and for your continued support. As we have expressed, we remain committed to driving our business forward and look forward to sharing our progress in the coming quarters ahead. Thanks again, and have a great day. This brings to a close today's conference call.

Speaker Change: and if there is any no more further questions and basically I would like to thank you all for joining us today and for your continued support.

Speaker Change: As we have expressed, we remain committed to driving our business forward and to look forward to sharing our progress in the coming quarters ahead.

Speaker Change: Thanks again, and have a great day.

Operator: This breaks through a close today's conference call.

Operator: You may now disconnect your lines. Thank you for participating, and have a pleasant day.

Juan Carlos: Revenue surged 95% to 29.8 million, driven by higher sales volumes for the water and improved realized silver and gold prices. We sold 1.1 million silver equivalent ounces at an average price of $27.81 per ounce. Compared to 2023, cash growth operating margin for silver equivalent ounce sold was $5.50 up from $1.52, reflecting higher realized prices and the gross margin ratio improved to 24.45% up from 22.95%. For example, extended shares in the second quarter were 1.7 million, with 1.2 million directed towards the FDF.

Juan Carlos: Moving on to gold and queen's operating and financial performance. Gold and queen produced 16,986 gold equivalent ounces in Q2 2020-24. Demonstrating solid operational performance and strong recovery from the fire incident in late December. Revenue surged 40 million for the floor with 17,348 gold equivalent ounces sold at an average realized price of 2,305 per ounce. The total operating cash cost per ounce sold was[inaudible] was 1,350 per ounce, which is a direct result of the improved operations of Golden Queen since its acquisition in November 2023.

Juan Carlos: Finance costs were 1.6 million, mainly due to the interest on the Golden Queen's name straight prior priority loan. We realized a foreign exchange gaming of 3.4 million, driven by premiums on U.S, dollar sales in Bolivia. Capital expenditures for the quarter total 5.2 million, from which 1.7 was Sambar tome, and 3.5 million for Golden Queen. We remain vigilant regarding market volatility and its impact on our financial performance. Our focus continues to be on operational efficiency and strategic growth.

Juan Carlos: In conclusion, Q2 2024 was marked by a robust financial performance and significant operational milestones. We are well positioned for continued success, and are committed to delivering value to our shareholders.

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

Alberto Morales: Our advancements in the FDF project, record production, and revenue growth underscores our commitment to creating value and achieving our strategic success, of Objectives. At San Bartolome, we will be working towards signing additional agreements to process high margin third party work and stabilizing production from the FDF project. At Golden Queen, we will continue to leverage our expertise and experience to stay focused on the implementation of the identified strategies to optimize operations, productions and visions.

Alberto Morales: We appreciate your continued support and look forward to updating you on our progress in the coming quarters.

Operator: With that, I will now open the call for questions. Operator, please go ahead. Ladies and gentlemen, at this time, we will begin the question in the answer session. To ask a question, you may press star and one on your telephone keypad. We will hear a tone acknowledging your request. If you are using a speaker phone, we do ask the police to cup your hand set before pressing the keys. So, withdraw your questions you may press star and two.

Operator: We will pause a moment as colors join the question to you.

Justin Chan: Our first question today comes from Justin Chan from SCP Research Finance. Please go further. I think that is a huge catalyst. Just to compliment, the new disclosure, I really like it. There was a lot of useful info. It made it a lot easier this morning.

Justin Chan: My first question is just on San Bartolome. As you look at the current quarter and the next quarter, you know, your purchase volumes took up in Q2.

Justin Chan: Do you think they can increase a little bit further? Likewise, just on the FTF, I guess what are you expecting for Q3 and Q4 volumes, maybe averaging through the quarter?

Alberto Morales: Hello, Justin. Well, thank you for your question. So, let me first address the purchases. The answer to that is yes. We're actively pursuing to increase our third-party war purchases and we have certain projects on the pipeline that we're hoping to materialize that will increase our tonnage available tonnage for processing. So, we're heavily involved, I would say, in aggressive pursuing that.

Alberto Morales: Now, in connection with the FTF, yes and yes, it took us about four to six weeks longer to get it commissioned, where we're finally completely commissioned working on it. And during these initial stages, where we're starting to produce roughly about 1300 tons per day, we are starting with the upper part of the FTF. That upper part of the FTF, it's really the ending part of the payacos deposit, the low grid payacos deposit.

Alberto Morales: So, the gray is going to start to increase as we go deep into the FTF. So we're looking if you wanted to use the analogy on a micro mining plan on the FDF by starting to achieve as soon as possible deeper zones where we can get higher grade and get to the 50 grams per ton average grade per ton. That will be a ramp up for that. But to be summarizing your question, we're hoping to average roughly approximately, I would say 30,000 pounds is produced from the FDF on a monthly basis on total beginning August.

Alberto Morales: So that's roughly what we're estimating. And certainly by the time we exhaust the opposite parts and continue to go into the deeper portion, we are expecting that that could be increased, but perhaps at the beginning, starting at the beginning of the line, you'll probably just in terms of fully your guidance. It's back halfway. That'll probably more come from or purchasing than the FDF at least for the next two quarters. Yes. Okay, thanks. That's that's really helpful in that side of things.

Justin Chan: Also, I guess back halfway through the year, your capex is below that runway.

Justin Chan: Let's say I guess how much potential is there for you to come in below your full your guidance and capex, do you think? In the second half, are you pretty confident that you'll hit that 24 million dollar number?

Juan Carlos: Yeah, thank you, just in its JC. I would say we are, we're in line with what was presented. You know, we, we, we have a budget for $20 million.

Justin Chan: How will they have been spent for the first half? So I would, yeah, I would say we are well in line. I think we will be spending or we will be reaching that among our enemies. Okay. Okay, that's those two are, those two are quite helpful.

Justin Chan: I think I mean, overall, maybe, maybe just one last one on.

Justin Chan: I guess working capital, are you expecting any kind of any kind of movement in the second half? I noticed your, for example, your receivables are a little bit lower than, let's say they are traditionally. Is that just, you know, is that anything specifically behind that? Or would you expect kind of those members to normalize and or just any other movement to work in capital that should be aware of modeling the second half?

Justin Chan: Yeah, not really just in our accounts receivable and that our accounts payable. They have those differences as a closing months, closing months. But I would say for purposes of modeling for the rest of the year, they're pretty stable. I don't see any big differences from what we have right now. As you can see, we have a strong working capital and strong balance.

Justin Chan: So I would say that they would pretty much stay, keep that same trend Okay, and then sorry, I don't know if it's in the line.

Justin Chan: I just have one last one.

Justin Chan: Now that you are starting to generate positive cash loan earnings, I guess on tax timing, is it best to model it as your underlying earnings are incurred or I guess are there any subtleties there that we should be aware of? No, I mean everything is sold and we get paid within 30 days and that's, you know, I would say no, no no difference. Okay, so just just model kind of cash tax and yeah, along with underlying earnings. Okay, great. Thanks a lot guys. I really appreciate the color and the color, congratulations. Thank you, Justin.

Operator: Once again, if you would like to ask a question, please press star and one.

John Sclodnick: Our next question comes from John Sclodnick from Aja Dan. Please go ahead with your question. Hi guys, yeah, thanks for taking my question here and congrats on the good core and I agree just in that free cash flow generation.

John Sclodnick: I guess a little bit further on those third party or sources, just wondering if you're seeing, you know, fixed cost purchase opportunities or fixed margin. I would say we're looking at both John, good to talk to you. We're pursuing a sub-ector already mentioned trying to get new long-term contracts on their fixed prices. Then we're also, you know, looking at more spot prices, spot purchase as well. So yeah, that's what we have right now. Okay, so it should be a blend. Okay, great.

John Sclodnick: And then I guess a little more on capital allocation. I mean, yeah, you guys are generating free cash flow. FDF construction is largely behind you and CID is complete just beyond, I guess, acquisitions which it sounds like you're still actively looking at.

Alberto Morales: I'm just curious how you're thinking about that or just happy to continue to build the treasury and add to those marketable securities. Yes, well, yes, John, to be specific in that, we have always told the market that we're actively looking for opportunities as they come across to us and we're open to deploy our watches, our cash flow strength. We have a very strong cash flow position. We're still under leveraged. We can still look even, this cash flow generation titles, Andy, and to even look at another requisition that we hope will be transformational depending on what's available in the market, but I can just say that we're actively looking. Fair enough. Yeah, no, I know it's always a tough question on a conference call.

Alberto Morales: And I guess just turning to solid ad mountain, just curious what you're seeing on the exploration front, and if there's any kind of oxide targets that you're excited about. Yeah, we will be, it's definitely something we're working on. Our intention is probably before the end of the year, we're presenting more comprehensive exploration plan. We have been working on that. So yes, before the end of the year, the intention is to present the plan that will, you know, extend the life of mine. Okay, excellent.

John Sclodnick: Well, that's it for me for questions. I'm excited to see you guys generate that free cash. Oh, and yeah, thanks up to that color.

Operator: Yeah, the gentleman and showing the additional questions.

Alberto Morales: We'll conclude today's question and answer session. I'd like to turn the conference call back over to Alberto Morales for closing remarks.

Amanda Mallough: Operator, our colleague Amanda has received one question from our investor.

Alberto Morales: So if you don't mind before we close the call, I'll let her raise the question openly. Yeah, the question is just if the company has any plan to renew the NCIB program. To data fade, what I would say is that we have exhausted the numbers of available shares to be repurchased back under our current NCIB program. And we're certainly in order to consider the renewal of this.

Alberto Morales: We would need to get advice from council, as I believe the regulatory environment requires for some waiting period on it, which so for now, I cannot go one way or another one will basically need to get advice from council as to the waiting period that this may by represent.

Alberto Morales: And if there is any no more further questions and basically I would like to thank you all for joining us today and for your continued support. As we have expressed, we remain committed to driving our business forward and to look forward to sharing our progress in the coming quarters ahead. Thanks again and have a great day.

Operator: This breaks through a close today's conference call. You may now disconnect your lines. Thank you for participating and have a pleasant day.

Q2 2024 Andean Precious Metals Corp Earnings Call

Request a DemoDemo

APM

Andean Precious Metals

Earnings