What you need to know: • Andean Precious Metals is generating growing cash flows from its San Bartolomé processing plant in Bolivia and Golden Queen mine in California. • APM has an excellent balance sheet, with $27M in net cash, allowing the Company to pursue organic growth, M&A, and share buybacks. • APM is tightly held, with its CEO owning 53% and Eric Sprott owning 15%. • APM trades at 2.2x/1.9x 2024E/2025E EBITDA, a discount to its peers. Andean Precious Metals (APM:TSX, ANPMF:OTC) owns and operates the San Bartolomé processing facility in Bolivia and the Golden Queen mine in California. San Bartolomé generates steady cash flow through processing third party purchased material, while the recently acquired Golden Queen asset has been in production since mid-2016 and is expected to produce 57Koz Au in 2024. Andean has an excellent balance sheet with $27M in net cash which will be deployed into operational improvements, M&A, and share buybacks. We are initiating coverage on APM with a BUY rating and a target price of C$3.50/share. Investment Thesis Summary Balance Sheet Primed to Pursue Growth. APM has $98.1M in cash and marketable securities compared to $70.9M in debt. As such, APM is set up to pursue organic growth opportunities at its two assets such as optimizing its mine plan, improving ore control, and securing long-term contracts. Additionally, the balance sheet allows APM to pursue M&A and share buybacks, having built the Company via successful acquisitions and buying back 3% of its share count annually since 2022. Track Record of Strategic Acquisitions. Andean has grown via acquisition since its inception, having acquired San Bartolomé in 2018 and Golden Queen in 2023. Golden Queen was acquired for a $67M total consideration, compared to the $28M in EBITDA that we expect the asset to generate in 2024, making the deal highly accretive and value-added to shareholders. Cash Flow Generation & Operational Improvements. Both of APM’s assets are generating strong cash flows due to the increased gold and silver prices. In Q3/24, San Bartolomé generated $13.5M in EBITDA while Golden Queen generated $7.7M. For 2025E, we are expecting $70M in EBITDA and $59M in OCF, adding to the stellar balance sheet. APM has laid out plans to target near to mid-term cost savings at its Golden Queen operations while at San Bartolomé, management is focused on signing long-term contracts to boost future growth. Exposure to Gold and Silver. APM stock has exhibited a 1.3x beta to the silver price and 2.4x beta to the gold price over the last six months, making it an ideal investment for investors looking for additional precious metals exposure. Management & Ownership. APM’s Founder, Executive Chairman, and CEO, Alberto Morales brings over 30 years of experience in M&A, finance, and restructuring, alongside a highly technical and motivated management team and board. Mr. Morales owns 53% of the shares outstanding and Eric Sprott owns 15%. Valuation. APM trades at 2.2x/1.9x 2024E/2025E EBITDA, placing it at a strong discount to metals processors at 5.9x/4.9x and small/mid-cap producers at 7.5x/5.4x.