Update shared on 01 Nov 2025
Fair value Increased 19%Analysts have raised their price target for Andean Precious Metals from $8.30 to $9.89, citing an updated outlook based on changing profit margin expectations and future earnings estimates.
What's in the News
- Launched Phase 3 of the 2025 Golden Queen Exploration Program, drilling 3,903 metres at the Hilltop area and receiving positive assay results for 6 core holes. Plans are in place to expand drilling to 8,100 metres by the end of 2025 (Key Developments).
- Expanded exploration and mineral purchase activities at the San Bartolome operation, including partnerships with COMIBOL and new shallow core drilling at several projects. The goal is to delineate 800,000 tonnes of new oxide material (Key Developments).
- Reported third quarter production results with 1,373,000 ozs silver and 10,429 ozs gold produced. Nine-month totals reached 3,414,000 ozs silver and 33,452 ozs gold (Key Developments).
- Completed repurchase of 2,101,921 shares, representing 1.41% of shares outstanding as part of the previously announced share buyback program (Key Developments).
- Reaffirmed 2025 production guidance: 51,800 to 57,200 ozs gold; 4.6 to 5.4 million ozs silver; and 102,900 to 117,200 gold equivalent ozs (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen from $8.30 to $9.89, reflecting a revised assessment of the company's intrinsic worth.
- The Discount Rate has increased slightly from 6.75% to 6.78%, suggesting a modest change in the risk outlook applied to future cash flows.
- Revenue Growth remains unchanged at approximately 5.33%.
- The Net Profit Margin has fallen significantly from 71.77% to 21.34%, indicating a notable shift in expected profitability.
- The Future P/E Ratio has increased sharply from 4.58x to 18.40x, signaling higher valuation expectations based on future earnings.
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