Andean Precious Metals Corp · TSX:APM
Andean Precious Metals — Investor Presentation (October 2022)
23 slides from Andean Precious Metals's investor presentation, October 2022
Slide 1: Building a Multi-Asset Mid-Tier Precious Metals Producer
BUILDING A MULTI-ASSET MID-TIER PRECIOUS METALS PRODUCER Investor Presentation: October 2022 1 TSX-V: APM OTCQX: ANPMF
Slide 2: Legal Disclaimers
Legal Disclaimers Disclaimer This presentation is informational purposes only and is solely to assist interested parties in determining whether to seek additional information. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities of Andean Preciou
Slide 3: Forward-looking Statements
Forward-looking Statements Certain statements contained in this presentation constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. These statements relate to future events or the Corporation
Slide 4: Investment Rationale: Pursuing Transformational Growth
Investment Rationale: Pursuing Transformational Growth Strong cash flow Organic growth Aggressive Debt-free generator in Bolivia M&A mandate balance sheet from established including near-to-mid term to grow responsibly with $92M cash/securities producing silver mine in opportunities to extend mine b
Slide 5: Bolivia: Nearly Years of Mining Activity and Still Going Strong
Bolivia: Nearly 500 Years of Mining Activity and Still Going Strong ONE OF THE WORLD’S RICHEST MINERAL REGIONS A MODERN MINING CODE ADOPTED IN 2014 WITH AN EXPERIENCED MINING WORKFORCE AND A SIMPLE TAX AND ROYALTY STRUCTURE ● Mining accounts for ~30% of national economy ● Federal mandate for foreign
Slide 6: Green Industry Accelerates Demand for Silver
Green Industry Accelerates Demand for Silver AUTOMOTIVE DEMAND FOR SILVER EXPECTED PHOTOVOLTAIC SOLAR PANELS ACCOUNT FOR 10% TO REACH 90M OUNCES/YEAR BY 2025 OF TOTAL SILVER DEMAND 100 90 180 80 160 Silver Ounces (Millions) 70 140 Million Ounces 60 120 GW 50 100 40 80 30 60 20 40 10 20 0 0 San Barto
Slide 7: Energy and Technology Expected to Drive Future Demand for Tin
Energy and Technology Expected to Drive Future Demand for Tin BOLIVIA IS WORLD’S 6TH LARGEST TIN PRODUCER Direct 3% applications 7% 1% by refined tin usage (2020) 11% Solder Chemicals Tinplate Other Batteries Alloys 47% 17% 14% 9% 8% 5% Global tin consumption 47% by country Tin expected to Lithium T
Slide 8: San Bartolomé: Bolivia's Only Commercial Oxide Plant
San Bartolomé: Bolivia’s Only Commercial Oxide Plant – 1.7Mtpa Capacity BUILT BY COEUR MINING IN 2008 FOR $190M APM Corporate Presentation FAST FACTS (FY2021) • Mill feed: 1.715 Mt • Head grade: 115g/t • Ag Eq produced: 5.791 Moz • PCST per DMT: $20.12 • PCST $/Ag Eq oz: $5.96 2022 • Recovery: 84% 8
Slide 9: Track Record of Strong Free Cash Flow at San Bartolomé
Track Record of Strong Free Cash Flow at San Bartolomé TOTAL OF $65M FREE CASH FLOW* IN 2020 AND 2021 5.9Moz 5.95Moz 5.3-5.8Moz APM Corporate Presentation FY'20 Production FY'21 Production FY'22 Production Guidance 2022 *Free cash flow is a non-IFRS measure. For more information, please see the “Non
Slide 10: Growth by Extending the Mine Life at San Bartolomé
Growth by Extending the Mine Life at San Bartolomé 11.34 Moz Resources1 Government Contracts (NI 43-101) 16.2 Moz (new deposits) in Tailings1 (NI 43-101) Ore Purchasing2 (studies ongoing) Regional M&A (non-NI 43-101) APM Corporate Presentation Andean looking to Seeking re-rate on San Bartolomé (net
Slide 11: Mineral Resources
Mineral Resources Source Tonnes (M) Silver g/t Silver Ounces (M) Tin % Tin tonnes (K) Measured and Indicated Resources Pallacos (Cerro Rico) 3.063 87.5 8.62 - - Tatasi - Portugalete 0.262 323.0 2.72 - - Pallacos & Tatasi 3.325 106.1 11.34 - - Mineralized stockpile (FDF only) 10.148 49.5 16.20 0.12 1
Slide 12: Growth in Bolivia: San Pablo Target Drill Hole SP22-03 Cross Section
Growth in Bolivia: SAN PABLO TARGET: DRILL HOLE SP22-03 CROSS SECTION Exploration at San Pablo 2.60 m at 1.97 g/t Au, 331.23 g/t Ag, 1.78% Cu, 2.20% Pb and 4.93% Zn in hole SP22-03 GEOLOGICAL SECTION SP H-H SP21-01 SP21-03 HIGH SULFIDATION AND GOLD PORPHYRY SYSTEM TREND NE 15º SW 140.55 -142.55 = 2.
Slide 13: Strong Growth in Bolivia
Strong Growth in Bolivia ANDEAN’S TARGETED AND MULTI-FACETED DOMESTIC GROWTH STRATEGY 1 Secure additional oxides from Bolivian government 2 Increase high-grade oxides from independent miners 3 4 Exploration at Tailings reprocessing San Pablo gold for silver and tin APM Corporate Presentation porphyr
Slide 14: Aggressive M&A Mandate
Aggressive M&A Mandate RESPONSIBLE GROWTH SUPPORTED BY SPECIFIC ACQUSITION CRITERIA Located in Annual production AISC/oz of Gold, silver 6+ years Acquisition Criteria Bolivia or wider target: 6Moz Ag / less than and/or copper mine life Americas 100koz Au $14-$15 APM Corporate Presentation 2022 14
Slide 15: Capital Structure & Shareholders
Capital Structure & Shareholders CLEAN CAPITAL STRUCTURE SHARE OWNERSHIP (as of Septembre 30, 2022) Debt Cash + Marketable Securities (as at June 30, 2022) 1 (as at June 30, 2022) 1 NIL $92M 29.3% 55.8% 1.4% 13.5% APM Corporate Presentation Shares Outstanding Market Capitalization (as at September 1
Slide 16: ESG: Working Towards International Standards
ESG: Working Towards International Standards SOCIAL LICENSE • Our social license to operate in Bolivia allows us to enhance the social and economic development of the communities associated with our operations • We work with communities and other stakeholders to build IMPORTANT TO LOCAL AND NATIONAL
Slide 17: A Solid Foundation . . . An Exciting Future
A Solid Foundation . . . An Exciting Future INVESTMENT HIGHLIGHTS UPCOMING MILESTONES & CATALYSTS Strong balance sheet and positive free cash flow1 Exploration Additional Potential M&A San Bartolomé • $92M in cash + securities results oxides in transaction mine expansion • No debt – San Pablo Bolivi
Slide 18: Appendix
Appendix BOARD OF DIRECTORS SENIOR LEADERSHIP TEAM SAN BARTOLOMÉ ORE SOURCES SAN BARTOLOMÉ FLOWSHEET 18
Slide 19: Board of Directors
Board of Directors ALBERTO MORALES SIMON GRIFFITHS GRANT ANGWIN Executive Chair, Member of the Director, President and Independent Director, Chair of Health, Nomination & Corporate Chief Executive Officer Safety, Environment, Social and Sustainability Governance Committee Committee, Member of the Au
Slide 20: Senior Leadership Team
Senior Leadership Team JEFF CHAN HUMBERTO RADA DANTE RODRIGUEZ SIMON GRIFFITHS CFO President, Manquiri COO, Bolivia President and CEO Former Country Exploration and operational Operational and technical Former financial executive of Manager and GM for management with Starcore management with Orvana M
Slide 21: San Bartolomé: Ore Sources
San Bartolomé: Ore Sources SAN BARTOLOMÉ PLANT HAS BEEN IN OPERATION SINCE JUNE 2008 – COMMISSIONED BY COEUR MINING AT A COST OF $190 MILLION Cerro Rico Deposits 1 Antuco BOLIVA 2 Santa Rita 3 Huacajchi 7 1 6 Ore Sourcing 2 3 4 Cachi Laguna POTOSI DEPARTMENT 5 Tatasi Portugalete 6 Cerro Rico Oxides
Slide 22: San Bartolomé: Flow Sheet
FAST FACTS (FY2021) San Bartolomé: Flow Sheet Mill feed: 1.715 Mt Head grade: 115g/t Silver produced: 5.791 Moz PCST per DMT: $20.12 CONVENTIONAL COMMINUTION, LEACH (CYANIDE), PCST $/Ag Eq oz: $5.96 MERRILL-CROWE PROCESS, REFINING FLOWSHEET Recovery: 84% • San Bartolomé pre-processes (washing) Run-o
Slide 23: For more information, please contact Trish Moran
For more information, please contact Trish Moran, 23 VP Investor Relations at [email protected]
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