Andean Precious Metals posts strong Q2 results as its silver production in Bolivia up 60%
(Kitco News) - Andean Precious Metals (TSXV: APM), a Latin-American focused precious metals production and exploration company, today reported that its revenue for Q2 2021 was $38.0 million, an increase of 202% compared to $12.6 million in Q2 2020.
The company said that its Q2 2021 revenue growth was driven by a year-over-year increase in silver equivalent sales volumes of 92% to 1.4 million silver equivalent ounces and higher realized prices of $26.71 per ounce of silver in Q2 2021 compared with $17.00 per ounce of silver for Q2 2020.
Cost of sales, including direct costs and mining royalty taxes, were $24.4 million compared to $7.6 million in Q2 2020, corresponding to the increase in sales. As a result, the company said that its income from mine operations increased to $11.3 million from $2.9 million in Q2 2020.
The company’s adjusted EBITDA was $10.3 million, an increase of $8.1 million compared to Q2 2020, and net income was $3.9 million compared to a net loss of $0.3 million in Q2 2020.
The company added that it produced 1.4 million silver equivalent ounces in Q2 2021, an increase of 60% compared to Q2 2020.
President and CEO Luis da Silva stated, "Our strong financial results continue to enhance Andean's treasury position whilst maintaining a clean capital structure. During such time as we review sector diversification opportunities, we shall build on our strong cash position, which is rather unique among junior producers. For the second half of 2021, we will continue to advance our exploration program and the evaluation of the tailings reprocessing opportunity at the San Bartolomé plant."
Andean Precious Metals is a Canadian silver producer operating in Bolivia. The company produced 5.9M silver equivalent ounces in 2020 at an all-in sustaining cost of $14.75 USD per ounce from its own mineral claims, contracts with the state mining company of Bolivia (COMIBOL), and from a high margin third-party ore sourcing business. All processing takes place at the company's 1.65M tonne per year San Bartolomé plant which has the capacity to produce silver doré bars.