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• Andean reported Q2 financial results that came in well above our expectations. The beat was driven by the higher metals prices and lower than expected costs.
• Revenue was $73.7M (+6% YoY) vs. our estimate of $64.7M. OCF came in at $26.7M (+47% YoY) vs. our estimate of $13.0M.
• APM ended the quarter with $35M in net cash. We are increasing our target price on the Company given the strong cashflow performance.
Yesterday evening, Andean Precious Metals (APM:TSX, ANPMF:OTC) reported Q2 financial results that were largely ahead of our expectations. Production results were pre-released on July 17th, which were slightly lower than our estimates (read our note here), but the increased gold price made up for the difference. Notably, APM generated $26.7M in OCF (before WC), up 47% YoY. We are maintaining our BUY rating and increasing our target price to C$6.00/share (previously C$4.50) on APM.
Financial Highlights
• Q2 revenue of $73.7M (+6% YoY) vs. our estimate of $64.7M. The beat was driven by the higher gold and silver prices when compared to our model.
• Q2 gross margin came in at 40% vs. our estimate of 20% and 17% in Q2/24.
• Adjusted EBITDA for the quarter was $28.9M (39% margin, +68% YoY), largely beating our estimate of $17.0M and $17.2M in Q2/24.
• OCF (before WC) was $26.7M vs. our $13.0M estimate and $18.2M in Q2 last year, and free cash flow was $12.3M vs. $8.2M in Q2 last year.
• Net income was $17.4M or $0.12/share (basic) vs. $9.4M in Q2/24 or $0.06/share.
• The Company finished the quarter with $87.3M in cash & marketable securities and $52.0M in debt.
• In H1, APM repurchased 2.1M shares at an average price of C$1.42/share.
APM: Q2 Financial Results Well Ahead of Expectations
What you need to know:• Andean reported Q2 financial results that came in well above our expectations. The beat was driven by the higher metals prices and lower than expected costs.
• Revenue was $73.7M (+6% YoY) vs. our estimate of $64.7M. OCF came in at $26.7M (+47% YoY) vs. our estimate of $13.0M.
• APM ended the quarter with $35M in net cash. We are increasing our target price on the Company given the strong cashflow performance.
Yesterday evening, Andean Precious Metals (APM:TSX, ANPMF:OTC) reported Q2 financial results that were largely ahead of our expectations. Production results were pre-released on July 17th, which were slightly lower than our estimates (read our note here), but the increased gold price made up for the difference. Notably, APM generated $26.7M in OCF (before WC), up 47% YoY. We are maintaining our BUY rating and increasing our target price to C$6.00/share (previously C$4.50) on APM.
Financial Highlights
• Q2 revenue of $73.7M (+6% YoY) vs. our estimate of $64.7M. The beat was driven by the higher gold and silver prices when compared to our model.
• Q2 gross margin came in at 40% vs. our estimate of 20% and 17% in Q2/24.
• Adjusted EBITDA for the quarter was $28.9M (39% margin, +68% YoY), largely beating our estimate of $17.0M and $17.2M in Q2/24.
• OCF (before WC) was $26.7M vs. our $13.0M estimate and $18.2M in Q2 last year, and free cash flow was $12.3M vs. $8.2M in Q2 last year.
• Net income was $17.4M or $0.12/share (basic) vs. $9.4M in Q2/24 or $0.06/share.
• The Company finished the quarter with $87.3M in cash & marketable securities and $52.0M in debt.
• In H1, APM repurchased 2.1M shares at an average price of C$1.42/share.
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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