skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. APM: Do you have any thoughts on APM? [Andean Precious Metals Corp.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Do you have any thoughts on APM? If I understand correctly the California mine produces gold using heap leaching which can be problematic. The Bolivian mine produces silver primarily. I believe Eric Sprott is increasing his share count but not sure how much that means. They report on Nov 11th.
Thanks,
Jim
Asked by James on November 05, 2024
5i Research Answer:

Eric shows as owning 23.1M shares of the company, or 15.5%, with a recent purchase of 84,000 shares. Heap leaching is an extremely common method of extracting gold, but it can indeed cause environment issues when there are problems. VGCX exprienced a breach in the Yukon this year which has essentially killed the company. APM is up 159% this year, has a strong balance sheet and is quite profitable. It is cheap at 8X earnings. The balance sheet has $30M net cash. It produced 2.5 silver equivalent ounces in the Q2. All-in production costs are on the high side but still OK. Two producing mines are performing well. We would consider it a pretty solid mid cap producer, with typical small company, mining and sector risks. Shares are very tightly held with PMB Partners owning 53% and insiders directly at 4.4%.