Bloor Street Capital

Andean Precious Metals: Gold & Silver Producer in the Americas | JC Sandoval and Jimmy Connor

Andean Precious Metals, founded in 2017, transformed a distressed Bolivian oxide‑processing plant into a steady silver‑producing operation while adding the Golden Queen gold mine in California. The company went public in 2021 and, by early 2023, amassed nearly $100 million in cash with no debt, royalties or other balance‑sheet encumbrances, positioning it for strategic growth. The Golden Queen asset now delivers 40‑50 thousand ounces of gold annually at an all‑in sustaining cost of roughly $2,000 per ounce, after $80 million of capital upgrades that include new trucks, shovels and a refreshed block model. Meanwhile, the Bolivian plant processes ore sourced from 15‑20 artisanal miners and the state‑owned COMIBOL, achieving a gross margin of 35‑45% through a mix of spot purchases and fixed‑price contracts that naturally hedge commodity price swings. JC Sandoval highlighted the company’s robust cash position—over $160 million in cash and equivalents—and its disciplined capital allocation, noting free cash flow of about $60 million last year. He emphasized ongoing optimization programs, equipment refreshes, and a life‑of‑mine extension study for Golden Queen, with a new technical report slated for year‑end, while also underscoring the firm’s intent to pursue a third acquisition in the Americas, potentially targeting gold, silver, or even copper projects. If the life‑of‑mine extension materializes and a third asset is secured, Andean could diversify its portfolio, enhance cash generation, and offer investors balanced exposure to both gold and silver. The company’s low‑debt, high‑margin model and strategic growth pipeline make it a compelling play in the precious‑metals sector amid volatile commodity markets.