A Look at Andean Precious Metals (TSX:APM) Valuation After Securing New US$40M Credit Facility

Andean Precious Metals (TSX:APM) has secured a new two-year US$40 million revolving credit facility with National Bank of Canada. This move streamlines its debt structure and boosts its financial flexibility as it pursues future growth.

See our latest analysis for Andean Precious Metals.

Momentum has picked up for Andean Precious Metals, with the share price jumping nearly 13% in one day and achieving a 620% year-to-date share price return. This surge has followed news of a simplified debt structure and improved liquidity, while arbitration proceedings with Silver Elephant Mining remain in focus. Over three years, total shareholder return stands at 980%, reflecting long-term performance that is drawing attention among mining investors.

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After such a dramatic climb in share price, the key question for investors is whether Andean Precious Metals remains undervalued given its recent financial restructuring, or if the surge has already captured future growth prospects.

Most Popular Narrative: 12.9% Undervalued

Compared to its last close at CA$8.64, the most widely followed narrative sees Andean Precious Metals as trading below its estimated fair value of CA$9.92. The valuation is based on several operating and financial improvements expected in the next few years.

The long-term purchase agreement with COMIBOL will grant access to 7 million tonnes of additional oxide ore beginning in 2026. This is expected to unlock previously underutilized processing capacity at San Bartolomé and provide a new source of feedstock, laying the groundwork for sustained production growth and revenue stability.

Read the complete narrative.

Curious how analysts justify upside? Their numbers blend ambitious output growth, margin expansion, and a future profit multiple that is more conservative than today's. Wondering which projections gave them confidence in this valuation? Dive in to see the specific financial assumptions that may surprise you.

Result: Fair Value of $9.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, operational setbacks at Golden Queen or delays in crucial permitting for new ore supply at San Bartolomé could quickly reverse the current optimism.

Find out about the key risks to this Andean Precious Metals narrative.

Build Your Own Andean Precious Metals Narrative

Prefer to chart your own course or see things differently? You can analyze the numbers and craft your own narrative in just a few minutes. Do it your way.

A great starting point for your Andean Precious Metals research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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