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

Jimmy Connor Apr 8, 2026 16:30

Summary

Andean's two-asset model pairs a 100% third-party ore processing plant in Bolivia with a producing gold mine in California, balancing silver and gold exposure.

Blending fixed-price contracts with spot purchases at San Bartolome creates a natural price hedge, keeping margins intact through metal price swings.

Golden Queen's AISC sits near $2,000, elevated by heavy equipment reinvestment that should taper as the operation matures.

With over $160 million in cash and $30 million of debt, Andean is actively hunting a third Americas-based acquisition, preferring gold, silver, or copper.

The near-term catalyst is a year-end 2026 43-101 technical report expected to extend Golden Queen's mine life beyond the current two-year estimate.

Key points on Andean Precious Metals Corp

  • Andean operates two producing, cash-flowing assets — the San Bartolomé silver processing plant in Bolivia and the Golden Queen gold mine in California — and JC Sandoval flags Golden Queen life-of-mine extension as the main near-term catalyst.
  • Balance sheet stands at over $160 million in cash and cash equivalents against just $30 million in bank debt, after generating more than $60 million in free cash flow last year, supporting both organic growth and a search for a third asset.
  • Golden Queen produces 40,000–50,000 ounces of gold annually at all-in sustaining costs of around $2,000 per ounce, with more than $50 million invested post-acquisition and another $30 million allocated to stabilize production and extend the mine life.
  • San Bartolomé runs a third-party ore processing model — roughly 50% spot purchases (35–45% target gross margin) and 50% long-term fixed-price contracts from 15–20 suppliers including state-owned COMIBOL — which JC argues provides a natural hedge against silver-price swings.
  • The company is actively pursuing M&A for a third asset in the Americas (Canada, US, Mexico, with some South America), preferring gold or silver exposure and open to copper projects tied to the energy transition.

JC Sandoval's takeaways

  • Top takeaway JC Sandoval frames Golden Queen life-of-mine extension as Andean's main catalyst, with an updated 43.1.1-compliant technical report expected by year-end 2026 backed by an active three-rig exploration program entirely within existing permitted boundaries.
  • He argues the $160 million cash position and $60 million-plus annual free cash flow justify inorganic growth, and is actively searching for a third producing or development asset in the Americas, preferring gold or silver and open to copper tied to the energy transition.
  • He defends San Bartolomé's third-party ore model as a proven, lower-risk business, citing the mix of spot purchases (35–45% target gross margin) and fixed-price contracts from 15–20 suppliers including COMIBOL as a natural hedge.
  • He credits more than $50 million in post-acquisition capex at Golden Queen — nine new haul trucks, replaced shovels and loaders, a new stacker and agglomeration drum, plus an updated block model — for the roughly $2,000 per ounce all-in sustaining cost and more stable production.
  • He positions the management team as proven operators who have already turned around two distressed acquisitions, using that track record to support the case for a successful third-asset deal.