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• Andean reported Q3 financial results that beat our estimates with revenue of $90.4M (+32% YoY) vs. our estimate of $89.1M and OCF (before WC) of $35.4M (+75% YoY) vs. our estimate of $27.4M.
• GQ had strong financials with profitability largely beating our expectations, while SB’s profitability was affected by the ore-processing model.
• APM ended the quarter with $70.8M in net cash, positioning the Company to pursue additional M&A opportunities.
Andean Precious Metals (APM:TSX, ANPMF:OTC) reported Q3 financial results that beat our estimates. Production results were pre-released on October 15th, which were mixed relative to our estimates (read our note here), but nevertheless consolidated production was up 6% sequentially. Today’s results were quite strong with APM generating $35.4M in OCF (before WC) vs. $27.4M expected. Management stated that it is on track for the low end of guidance. We are maintaining our BUY rating and our C$11.00/share target price on APM.
Financial Highlights
• Q3 revenue of $90.4M (+32% YoY) vs. our estimate of $89.1M. The quarter was driven by solid results from both assets.
• Q3 gross margin came in at 41% vs. our estimate of 38% and 35% in Q3/24.
• Adjusted EBITDA for the quarter was $36.0M (40% margin, +84% YoY), vs. our estimate of $34.5M and $19.6M in Q3/24.
• OCF (before WC) was $35.4M vs. our $27.4M estimate and $20.3M in Q3/24, and free cash flow was $12.4M vs. $16.9M in Q3/24 due to ($22.4M) in non-cash working capital changes (mostly inventory). APM only spent $0.6M in capex during the quarter.
• Net income was $43.7M or $0.29/share (basic) vs. $8.2M or $0.05/share in Q3/24.
• The Company finished the quarter with $123.5M in cash & marketable securities and $52.7M in debt.
APM: Another Quarter of Strong Cashflow
What you need to know:• Andean reported Q3 financial results that beat our estimates with revenue of $90.4M (+32% YoY) vs. our estimate of $89.1M and OCF (before WC) of $35.4M (+75% YoY) vs. our estimate of $27.4M.
• GQ had strong financials with profitability largely beating our expectations, while SB’s profitability was affected by the ore-processing model.
• APM ended the quarter with $70.8M in net cash, positioning the Company to pursue additional M&A opportunities.
Andean Precious Metals (APM:TSX, ANPMF:OTC) reported Q3 financial results that beat our estimates. Production results were pre-released on October 15th, which were mixed relative to our estimates (read our note here), but nevertheless consolidated production was up 6% sequentially. Today’s results were quite strong with APM generating $35.4M in OCF (before WC) vs. $27.4M expected. Management stated that it is on track for the low end of guidance. We are maintaining our BUY rating and our C$11.00/share target price on APM.
Financial Highlights
• Q3 revenue of $90.4M (+32% YoY) vs. our estimate of $89.1M. The quarter was driven by solid results from both assets.
• Q3 gross margin came in at 41% vs. our estimate of 38% and 35% in Q3/24.
• Adjusted EBITDA for the quarter was $36.0M (40% margin, +84% YoY), vs. our estimate of $34.5M and $19.6M in Q3/24.
• OCF (before WC) was $35.4M vs. our $27.4M estimate and $20.3M in Q3/24, and free cash flow was $12.4M vs. $16.9M in Q3/24 due to ($22.4M) in non-cash working capital changes (mostly inventory). APM only spent $0.6M in capex during the quarter.
• Net income was $43.7M or $0.29/share (basic) vs. $8.2M or $0.05/share in Q3/24.
• The Company finished the quarter with $123.5M in cash & marketable securities and $52.7M in debt.
Underlying
ANDEAN PRECIOUS METALS CORP
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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