Andean Precious Metals Corp. (TSXV: APM) ("Andean" or the "Company"), a Latin-American focused, precious metals production and exploration company, today reported its operational and financial results for the second quarter ended June 30, 2021. All amounts are expressed in U.S. dollars unless indicated otherwise. Q2 2021 Highlights
"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." - Luis da Silva, President and CEO of Andean Precious Metals. Andean Precious Metals Q2 2021 Earnings Call - August 25, 2021 Revenue for the second quarter of 2021 was $38.0 million compared to $12.6 million in the second quarter of 2020. 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 the second quarter of 2021 compared with $17.00 per ounce of silver for the second quarter of 2020. Cost of sales, including direct costs and mining royalty taxes, were $24.4 million compared to $7.6 million in the second quarter of 2020, corresponding to the increase in sales. As a result, income from mine operations increased to $11.3 million from $2.9 million in the first quarter of 2020.
General and administrative costs increased to $2.2 million compared to $1.2 million in the second quarter of 2020. The significant components of these expenses include the costs of salaries and office administration, management fees, and community relations expenses. Deferred income taxes of $7.1 million were recorded during the second quarter of fiscal 2021, relative to none during the second quarter of fiscal 2020. Overall, the net income for the second quarter of 2021 totaled $3.9 million. 2021 Outlook Update and Guidance The Company produced 2.9 million silver equivalent ounces from its operations during the first half of 2021 from its mineral reserves and its third-party ore sourcing business. During the remainder of 2021, the Company will focus mining production at the Santa Rita Pallacos area. Mining will also continue at the Company's high-grade mine waste stockpile areas. In July 2021, production commenced at the Monserrat mine waste stockpile area, which contains higher grade material than the Company's Pallacos areas. The Company has commenced sonic drilling of the tailings facility which will inform a mineral resource estimate followed by a technical study on the economic viability of reprocessing approximately 10 million tonnes contained in its tailings facilities. Manquiri's production records suggest potentially economic quantities of recoverable silver and tin exists in the tailings. The Company continues to expand its third-party ore sourcing business from locations outside Cerro Rico. As the San Bartolomé operation contains the only large-scale commercial oxide plant in the country, the Company is leveraging this advantage with its strong working capital position and actively reviewing additional purchasing opportunities throughout Bolivia. The Company currently purchases ore from 32 out of approximately 1,700 mining cooperatives within Bolivia. Growth Program In addition to Andean's production profile and ore sourcing business, the Company also has an active exploration program for two highly prospective properties that Andean owns: Rio Blanco and San Pablo. At Rio Blanco, Andean began a diamond drilling campaign comprising 22 holes over 5,500 metres with three drill rigs in July 2021. The Company also advanced reconnaissance geological work including trenching totaling 1,500 metres replicating the historic work performed in 1998. This work programme is intended to supplement the drilling campaign. At San Pablo, Andean completed the first phase of a 10,000 metre diamond drilling campaign, drilling 12 holes totaling 3,580 metres at varying depths in May 2021 with multiple gold bearing zones encountered. The Company also seeks to complete ground-based geophysical surveys in its second phase. The Company expects to release results on the first phase in due course. About Andean Precious Metals Corp. Andean Precious Metals (TSXV: APM) is a Canadian, growth-focused 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. Andean Precious Metals is committed to fostering safe, sustainable and responsible operations. For more information, please visit www.andeanpm.com. Source: Andean Precious Metals Corp.
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