Andean Precious Metals: A Shining Q3 Performance
Monday, Nov 11, 2024 7:11 pm ET
1min read Andean Precious Metals (APM) has reported its third quarter 2024 operating and financial results, showcasing a remarkable performance driven by strong cash flow generation and improved operational efficiency. The company's record cash and investments position, bolstered by robust free cash flow and operating cash flow, has significantly enhanced its financial stability and growth prospects.
APM's Q3 2024 highlights include a consolidated revenue of $68.4 million, with gold and silver sales averaging $2,413/oz and $31.40/oz, respectively. The company's gross profit of $21.4 million and net income of $8.2 million reflect a 25% YoY increase in gross profit and a 30% increase in net income compared to the same period last year. This impressive performance was underpinned by a 15% increase in consolidated revenue and a record free cash flow of $17.0 million.
APM's operational efficiency has been further bolstered by an increased recovery rate at San Bartolomé, which improved from 79% to 83% in Q3 2024. This enhancement led to a strong cash gross operating margin (CGOM) of $12.30 per ounce of silver equivalent sold and a gross margin ratio (GMR) of 46.56%. The higher recovery rate resulted in a 12.5% increase in AgEq ounces produced compared to Q2 2024, contributing to APM's record cash and investments position.
Despite facing temporary production challenges at Golden Queen due to the suspension of the crusher circuit, APM anticipates higher AuEq production in Q4 2024. The company is proactively addressing these issues by investing in new equipment and processes to enhance reliability and efficiency. This proactive approach aims to drive greater reliability and efficiency, ultimately benefiting APM's production and financial performance.
APM's strong Q3 2024 results demonstrate the company's resilience and operational efficiency. With a record cash and investments position, robust cash flow generation, and improved recovery rates, APM is well-positioned to capitalize on growth opportunities and navigate potential market volatility. As an investor, keeping an eye on APM's progress and its strategic initiatives can provide valuable insights into the precious metals sector and potential investment opportunities.
APM's Q3 2024 highlights include a consolidated revenue of $68.4 million, with gold and silver sales averaging $2,413/oz and $31.40/oz, respectively. The company's gross profit of $21.4 million and net income of $8.2 million reflect a 25% YoY increase in gross profit and a 30% increase in net income compared to the same period last year. This impressive performance was underpinned by a 15% increase in consolidated revenue and a record free cash flow of $17.0 million.
APM's operational efficiency has been further bolstered by an increased recovery rate at San Bartolomé, which improved from 79% to 83% in Q3 2024. This enhancement led to a strong cash gross operating margin (CGOM) of $12.30 per ounce of silver equivalent sold and a gross margin ratio (GMR) of 46.56%. The higher recovery rate resulted in a 12.5% increase in AgEq ounces produced compared to Q2 2024, contributing to APM's record cash and investments position.
Despite facing temporary production challenges at Golden Queen due to the suspension of the crusher circuit, APM anticipates higher AuEq production in Q4 2024. The company is proactively addressing these issues by investing in new equipment and processes to enhance reliability and efficiency. This proactive approach aims to drive greater reliability and efficiency, ultimately benefiting APM's production and financial performance.
APM's strong Q3 2024 results demonstrate the company's resilience and operational efficiency. With a record cash and investments position, robust cash flow generation, and improved recovery rates, APM is well-positioned to capitalize on growth opportunities and navigate potential market volatility. As an investor, keeping an eye on APM's progress and its strategic initiatives can provide valuable insights into the precious metals sector and potential investment opportunities.
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