TRANSFORMATIONAL GROWTH IN BOLIVIA AND THE WIDER AMERICAS

Andean, which is a Canadian publicly-listed company, wholly owns Manquiri, the operator of the largest commercial silver oxide processing plant in the Cerro Rico in Bolivia - San Bartolomé. Responsible for operations on the ground at Manquiri is Humberto Rada Gómez, President of Manquiri.

Business Enquirer speaks to both leaders about the transformational growth opportunities of the Company and how people are at its core.

Bringing the Asset Back to Life

Purchased in 2017 from Coeur Mining when the asset had eight months of mine life remaining, Andean has continued to invest in San Bartolomé and extending its mine life. Now, it has two to three years left, with the potential to further extend by up to 10 years, and beyond. Since its inception in 2009, San Bartolomé has produced over 65 million ounces of silver equivalents.

The asset has also generated significant cash from its operations, and by the end of Q3 2022 boasted a cash balance of around $90 million with zero debt.

“Our strong balance sheet is a standout at a time when many junior mining companies need capital,” explained Alberto, “We are able to control our destiny. Andean has a strong foundation and a two-pronged growth strategy:

Andean Precious Metals Project

DIRECTED BY: GARY

SMITH

ARTICLE WRITTEN BY: LAURA

WATLING

ANDEAN PRECIOUS METALS - MINING

organic growth in Bolivia and growth via

M & A”.

Like many industries the world over, the last 12-18 months has seen global inflation. For the mining industry, Andean included, this has been compounded by by volatility in precious metals prices arising from the interest rates across the globe as they impact the sliver investment demand where the metal is considered as an alternative asset class for investment purposes.

“Despite the ups and downs, we achieved our 2022 annual production guidance and maintained our strong, and importantly, debt-free balance sheet,” shared Alberto. But, with challenge comes opportunity, and Andean foresees several opportunities to optimise production, reduce its costs, and grow organically in Bolivia and beyond.

The San Bartolomé plant treats ore from the Company’s Cerro Rico deposits and its ore sourcing business. As well, it is looking at ways to extract the silver from its fines disposal facility and process it.

“One of our most exciting and tangible organic growth initiatives involves our wet tailings, which has a significant silver and tin content. Currently, we are conducting metallurgy tests to assess the best way to extract the silver and are reviewing the financial feasibility,” said Alberto.

A Two-Pronged Approach

Andean is focussed on transformational growth, following a two-pronged strategy: organic growth in Bolivia and M&A in the wider Americas.

Within Bolivia, on top of its wet tailings initiative, it will look to secure new contracts third-party material sources which meet its criteria.

Metalci S.A. is one of the principal suppliers of spare and wear parts for Bolivia’s mining, cement, sugar, oil, and construction industries. Almost three decades in the game give us the necessary technology, specialized staff, and expertise to serve Bolivia and other regions with export-quality products.

We invite you to visit our website or get in touch to learn more about the company and the services we offer.

“If we can find the right opportunity we may seek to acquirea new mining operation in Bolivia. I am hoping to see significant advancements in Bolivia over the next one to two years,” shared Alberto. A vision for Andean is to become a multiasset producer, and it is actively reviewing potential M&A targets.

Whilst the processor is focussed on silver and gold producing assets, it isn’t opposed to stepping into green and other base metals.

“Ideally, it would be a producing asset, or one close to production, in the wider Americas,” explained Alberto, “Because most of our team members are from a Spanish culture, we’re particularly interested in jurisdictions such as Bolivia, Mexico and Peru”.