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APM: Ore Purchase Model And Drilling Expansion Will Support Upcoming Margin Gains

Update shared on 01 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
488.5%
7D
-4.6%

Analysts have raised their price target for Andean Precious Metals to $9.92 per share from the previous level. They cite improved profit margin forecasts and a lower anticipated future P/E ratio as key drivers of the revision.

What's in the News

  • Arbitration hearing completed in November 2025 regarding Silver Elephant's claim that Andean failed to pay USD 1,000,000 under the Master Services and Sales and Purchase Agreements. A decision is expected before the end of 2025 (Key Developments).
  • The 2025 Exploration Program at the Golden Queen mine entered Phase 3 with 4,300 metres of core drilling focused on extending mine life and expanding current mining zones. Initial results indicate promising mineralization, and an additional 3,800 metres of drilling has been approved (Key Developments).
  • San Bartolome operation fully transitioned to a mineral purchase business model, underpinned by a 10-year exclusive agreement with COMIBOL to purchase up to 7 million tonnes of oxide ore. Ongoing exploration and infill drilling aim to expand the resource base (Key Developments).
  • Consolidated Q3 2025 operating results show silver production rose to 1,373,000 ounces, while gold production declined to 10,429 ounces compared to the previous year (Key Developments).

Valuation Changes

  • Fair Value Estimate remains unchanged at $9.92 per share.
  • Discount Rate has risen slightly from 7.19% to 7.20%.
  • Revenue Growth projection remains steady at 5.53% year-over-year.
  • Net Profit Margin has increased significantly from 17.02% to 22.60%.
  • Future P/E Ratio has fallen considerably from 21.26x to 16.07x.

Disclaimer

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