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• APM reported its Q2 production results, producing 24.3Koz AuEq between its Golden Queen and San Bartolome assets, softer than our estimates (primarily due to seasonality that we have now adjusted for).
• Management reiterated that 60% of its annual production will be mined in H2 and that it remains on track for the top end of guidance. APM remains set up to generate large cash flow in the quarter, growing into H2.
• The Company plans to release its Q2 financials after market close on August 12th, with the conference call being held on August 13th at 9AM ET.
Yesterday after market close, Andean Precious Metals (APM:TSX, ANPMF:OTC) announced its Q2/25 operational results that were slightly weaker than our expectations but trending towards the top end of guidance. Management highlighted that it expects 40% of its production in H1 and 60% in H2, explaining the difference between our model and the reported results. We have now adjusted our model to better reflect the seasonality at San Bart. On a consolidated basis, APM produced 24.3Koz AuEq and sold 23.0Koz AuEq, declining YoY due to the shifted cadence.
Given the rising gold and silver prices, we have updated our model to now assume $2,700/oz for gold and $31/oz for silver (previously $2,400/oz and $30/oz). Additionally, multiples have expanded across the sector, and we have decided to increase our target multiple from 6.0x 2025E OCF to 6.5x, resulting in an increased target price. We are maintaining our BUY rating and increasing our target price to C$4.50/share (previously C$3.75/share) on APM.
Golden Queen Production Highlights
• Q2 AuEq production came in at 12.2Koz (-28% YoY) compared to our estimate of 14.4Koz, consisting of 11.2Koz Au and 89Koz Ag.
• Q2 AuEq sold of 11.8Koz, consisting of 10.9Koz Au and 87Koz Ag.
San Bartolome Production Highlights
• Q2 AuEq production came in at 12.1Koz (-9% YoY) compared to our estimate of 12.2Koz AuEq or 1.1Moz AgEq. This was comprised of 0.7Koz Au and 1.0Moz Ag.
• Q2 AuEq sold was 11.2Koz, including 0.5Koz Au and 1.0Moz Ag.
APM: Q2 Production Results; Expecting Large Cashflow
What you need to know:• APM reported its Q2 production results, producing 24.3Koz AuEq between its Golden Queen and San Bartolome assets, softer than our estimates (primarily due to seasonality that we have now adjusted for).
• Management reiterated that 60% of its annual production will be mined in H2 and that it remains on track for the top end of guidance. APM remains set up to generate large cash flow in the quarter, growing into H2.
• The Company plans to release its Q2 financials after market close on August 12th, with the conference call being held on August 13th at 9AM ET.
Yesterday after market close, Andean Precious Metals (APM:TSX, ANPMF:OTC) announced its Q2/25 operational results that were slightly weaker than our expectations but trending towards the top end of guidance. Management highlighted that it expects 40% of its production in H1 and 60% in H2, explaining the difference between our model and the reported results. We have now adjusted our model to better reflect the seasonality at San Bart. On a consolidated basis, APM produced 24.3Koz AuEq and sold 23.0Koz AuEq, declining YoY due to the shifted cadence.
Given the rising gold and silver prices, we have updated our model to now assume $2,700/oz for gold and $31/oz for silver (previously $2,400/oz and $30/oz). Additionally, multiples have expanded across the sector, and we have decided to increase our target multiple from 6.0x 2025E OCF to 6.5x, resulting in an increased target price. We are maintaining our BUY rating and increasing our target price to C$4.50/share (previously C$3.75/share) on APM.
Golden Queen Production Highlights
• Q2 AuEq production came in at 12.2Koz (-28% YoY) compared to our estimate of 14.4Koz, consisting of 11.2Koz Au and 89Koz Ag.
• Q2 AuEq sold of 11.8Koz, consisting of 10.9Koz Au and 87Koz Ag.
San Bartolome Production Highlights
• Q2 AuEq production came in at 12.1Koz (-9% YoY) compared to our estimate of 12.2Koz AuEq or 1.1Moz AgEq. This was comprised of 0.7Koz Au and 1.0Moz Ag.
• Q2 AuEq sold was 11.2Koz, including 0.5Koz Au and 1.0Moz Ag.
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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