Andean Precious Metals Issues 2021 Guidance Following Strong Growth in Revenue and Profitability in 2020
Andean Precious Metals Corp. (TSXV: APM) ("Andean" or the "Company"), a precious metals production, development and exploration company today reported its operational and financial results for the fourth quarter and year ended December 31, 2020, and issued guidance for fiscal 2021. The Company's common shares began trading on the TSX Venture Exchange as a tier-one issuer on March 29, 2021. All amounts are expressed in U.S. dollars unless indicated otherwise.
FY2021 Guidance Highlights
"Fiscal 2020 year was an impressive year for Andean Precious Metals. Our strong cash generation demonstrates the importance of our flagship San Bartolomé operation as a significant primary silver producer even in a volatile price environment and despite the impact of COVID-19 on the operations. We look forward to building on the success of the team during 2021 and beyond, now as a publicly-traded company." - Luis da Silva, President and CEO of Andean Precious Metals.
Revenue for the fourth quarter of 2020 was $55.6 million compared to $23.0 million in the fourth quarter of 2019. Revenue growth was attributable to an increase in silver sales volumes of 60% to 2.0 million ounces in 2020 as well as higher realized prices of $24.99 per ounce of silver in 2020 compared with $18.31 per ounce of silver for the fourth quarter of 2019. Cost of sales, including royalty expenses, remained consistent with the increase in sales volumes and commodity prices, rising from $19.0 million in the fourth quarter of 2019 to $32.8 million in the fourth quarter of 2020, representing an increase of 72%. As a result, income from mine operations increased from $0.3 million in the fourth quarter of 2019 to $20.5 million in the fourth quarter of 2020.
During the fourth quarter of 2020, due to the impact of rising silver prices, the Company recognized a deferred tax recovery of $19.0 million related to the expected utilization of accumulated tax loss carryforwards in Bolivia. Overall, net income for the fourth quarter of 2020 was $39.0 million compared to a net loss of $3.3 million in the fourth quarter of 2019.
Outlook and Guidance
The Company's objectives in fiscal 2021 are to continue to process its surface deposits at the San Bartolomé (inclusive of Antuco, Santa Rita and Huacajchi) and Cachi Laguna areas, as well as reclaiming silver bearing mine waste stockpiles under contract with COMIBOL at El Asiento and Tatasi-Portugalete. The Company will also continue to purchase ore from its community mining partners.
The Company seeks to expand its mine life by completing a technical study on the economic viability of reprocessing approximately 10 million tonnes contained in its tailings facilities, estimated from Manquiri's production records to contain silver and tin grades of approximately 40 grams per tonne silver and 0.25% tin, respectively. Additionally, the Company commenced exploration activities on its San Pablo and Rio Blanco properties in February 2021. At San Pablo, a 10,000m diamond drilling program is underway, while mapping, IP and geophysical studies will begin in the second quarter of 2021 at Rio Blanco. Further, San Bartolomé is the only large-scale commercial oxide processing plant in the country, which the Company is leveraging to expand its third-party ore sourcing business. In tandem, the Company is assessing acquisition opportunities in South and Central America.
Mr. da Silva continued, "The Company is focused on expanding its mineral resource inventory within Bolivia by continuing to build on its strong relationship with COMIBOL, and outside Bolivia using its management expertise and strong balance sheet."
By mid-2021, the Company expects to complete the mining and processing of remaining mineral reserves in the Antuco area, moving production to the Santa Rita and Huacajchi areas. In addition, the Company plans to begin production at the higher grade Tatasi-Portugalete area by mid-2021. Production will continue to be mined from the El Asiento area and purchased through existing contracts with RALP and local miners.
The Company's production for fiscal 2021 is expected to result in silver equivalent production of 5.8 to 6.1 million ounces at an AISC of $17.50 to $19.50 per silver ounce sold, on a by-product basis. Andean's assumed commodity prices supporting this estimate are $24.00/ounce silver and $1,750/ounce gold.
AISC compared to fiscal 2020 is expected to rise as a result of the Company's royalties and other costs linked to commodity prices. Additional general and administrative costs are also expected as a result of regulatory compliance activities from the Company's recent listing on the TSX-V.
Qualified Person Statement
Donald J. Birak, Registered Member SME and Fellow AusIMM and independent qualified person as defined under NI 43-101, has reviewed and approved the scientific and technical information presented herein.
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.
() Silver equivalent ounces include gold ounces produced or sold and are converted to a silver equivalent based on a ratio of realized silver and gold prices during the periods discussed.
() Free cash flow, EBITDA, COC and AISC are measures of financial performance with no prescribed definition under IFRS. Please refer to the Company's Management Discussion and Analysis for the year ended December 31, 2020 filed at www.sedar.com for a reconciliation of these items to the Company's financial statements.
() Andean's commodity price assumptions are US$24.00/oz Ag and US$1,750/oz Au.
() Figures are presented in US millions, other than COC, AISC and per share figures.
Source: Andean Precious Metals Corp.
GR Silver Mining Reports High-Grade and Wide Silver Mineralization From Drilling in the San Juan Area
The common shares of Andean Precious Metals Corp. began trading on the TSX Venture Exchange in Canada as a tier-one issuer under the symbol "APM" at market open today. Further to its news release of March 19, 2021, the Company has completed its previously announced “Qualifying Transaction,” raising approximately US$20.8 million. The company acquired its public listing by way of a three-cornered amalgamation where 1271860 B.C. Ltd., a wholly-owned subsidiary of Andean, amalgamated with 1254688 B.C. Ltd. (the "Target") a private British Columbia corporation with operating subsidiaries in Bolivia which are engaged in the exploration, exploitation, treatment, refining and commercialization of ore containing silver and gold, which it extracts from its own mining rights and also through purchases from third parties' ore.
Andean Precious Metals is a growth-focused precious metals company with its flagship asset being San Bartolomé in Potosi, Bolivia. The 5,500 tonnes per day oxide plant was built by Coeur Mining for approximately US$188 million and sold to the predecessor company of Andean Precious Metals in 2018.
The plant is an operating mine recovering silver from mineralized gravel, which mantle the flanks of Cerro Rico; a prominent, +4,800 meter-elevation peak located just south of the city of Potosi. Access to San Bartolomé is by paved and well-travelled gravel roads leading from the city. Mining operations and ore processing and related facilities encompass an area of nearly 1,817.6 hectares. The San Bartolomé mill is the only commercial silver oxide plant in Bolivia.
Coeur held mining rights through agreements with COMIBOL and several mining cooperatives to the San Bartolomé open-pit silver mine via its wholly-owned subsidiary, Manquiri. The mine and associated milling operation had been in production since 2008. Coeur sold Manquiri to AG-Mining (now Andean Precious Metals) in 2018. Prior to Manquiri, there was no silver production from the San Bartolomé gravel-hosted deposits around the summit of Cerro Rico.
In 2020, Andean Precious Metals produced approximately 6 million equivalent ounces of silver at an all-in sustaining cost of approximately US$15 per ouncefrom the San Bartolomé processing plant, which has a capacity of 1.65 Mtpa.
The company has a strong balance sheet with US$70 million in cash and metal inventory or CDN$0.57 per share, and strong free cash flow generation - US$23 million in free cash flow in the fourth quarter of 2020.
Other interesting things of note, Andean Precious Metals has an expanding high margin third-party ore-sourcing business and has integrated forward-thinking corporate social responsibility practices into the business through the use of Dry Stack Tailings at San Bartolomé. Andean also holds a portfolio of earlier-stage mineral properties located in Bolivia and is currently conducting exploration activities on these properties.
 Unaudited full year 2020 estimate, production of 5,473,000 ounces silver 5,335 ounces gold
October 19, 2020 / Vancouver, BC / NRG Metals Inc. (“NRG” or the “Company”) (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt OGPN), announces a private placement (the “Private Placement”) of up to 8,000,000 units (the “Units”) at a price of $0.22.5 per Unit for gross proceeds of up to $1,800,000. Each Unit will be comprised of one common share (the “Shares”) and one transferable common share purchase warrant (the “Warrants”). Each Warrant will allow the holder to purchase one Share of the Company at a price of $0.35 per Share for a period of five years from the date of closing of the Private Placement.
The Private Placement will be open to all existing shareholders of the Company and interested parties who can rely upon an exemption from the registration and prospectus requirements of applicable securities laws to participate. The Warrants are subject to, at the option of the Company, an expiry acceleration provision whereby if the Company’s Shares close at or above $ 0.40 per Share for more than 10 consecutive trading days, the holder will have 30 days from that date to exercise the Warrant or it will expire. A finder’s fee of 8% cash and 8% warrants is payable in connection with this transaction.
All securities issued will be subject to a four month hold period.
Proceeds of the Private Placement will be used to advance the HMN Lithium Project, located in Salta Province, Argentina. The project is located on the Hombre Muerto Salar, the premier lithium producing salar in Argentina. The property is adjacent to land under development by Korean multinational corporation POSCO, who acquired their ground from Galaxy Resources Ltd. for $ US 280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, and the property has two pumping wells installed. The next phase of development will include moving the project to a pre-feasibility. In addition, NRG is evaluating several new extraction technologies for lithium production which may be applicable to the project.
To better reflect the current direction of the Company, subject to regulatory approval, the Company will change its name to Lithium South Development Corporation (Lithium South). The name change will become effective prior to closing of the above private placement funding.
On behalf of the board of directors of NRG Metals Inc.:
Adrian F. C. Hobkirk
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
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September 29 , 2020 / Vancouver, BC / NRG Metals Inc. (“NRG” or the “Company”) (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt: OGPN) the Company is pleased to announce an update on the Hombre Muerto North Lithium Project (HMN Project), Argentina. Test work is being conducted by Sino Lithium Materials Pty Ltd (Sino Lithium) and Chengdu Chemphys Chemical Industry Co. (Chemphys)( collectively Sino LI) for the advancement and development to potential lithium production, of the Hombre Muerto North Lithium Project (HMN Li Project), located in Salta and Catamarca Provinces, Argentina.
Sino LI is developing a direct lithium extraction process which could represent an alternative to the conventional evaporation process currently used by the industry. The process under development would potentially shorten lithium recovery time and provide higher recovery of lithium. The on- site environmental footprint is projected to be significantly smaller than current industry methods which require the construction of large evaporation ponds. Work to date by an eleven member technical team has been conducted at the Chemphys’ Production & Technology Center outside Chengdu, China, which is an ISO 9000 and ISO 14001 certified facility.
To validate test work completed to date by Sino LI and Chemphys, Hains Technology Associates of Toronto, Ontario, Canada have been retained to provide a technical review and Qualified Person validation. Upon the completion of check sampling currently underway, the Company will provide further information and full technical results. Hains will be working with Carlos Galli who will provide support for any local work required in Argentina. Hains and Carlos Galli are recognized for their lithium industry expertise and have conducted studies for numerous lithium resource companies.
Sino Li and Chemphys have completed bench scale test work of the new technology, and results are now under review by Hains, expected to be released in Q4 2020. The pilot test unit has been constructed and is undergoing commissioning in China. Pilot test work will involve bulk samples of HMN brine with test work due to be completed at the end of Q4 2020. Upon completion of pilot test work in China, it is expected that the unit will be shipped to Argentina in 2021 and tested on site at the Hombre Muerto Salar, subject to covid-19 restrictions.
The HMN Project is located on the Hombre Muerto Salar, the premier lithium producing salar in Argentina. The property is adjacent to land under development by Korean multinational corporation POSCO, whom acquired their ground from Galaxy Resources Ltd. for $ US 280 million. The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, using conventional extraction technology. The project is located in a mining friendly province and has two pumping wells installed.
Chemphys was established in 1998 and have operated their ISO9001:2000 certified facilities since 2000.
On behalf of the board of directors of NRG Metals Inc.:
Adrian F. C. Hobkirk
Neither the TSX Venture Exchange nor its Regulation Services Provider ( as that term is defined in policies of the TSX
This news release contains certain “forward- looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward- looking statements. We seek safe harbor.
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