• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Assessing Andean Precious Metals (TSX:APM) Valuation After New Credit Facility and Capital Structure Simplification

    Simply Wall St·12/08/2025 18:08:40
    Listen to the news

    Andean Precious Metals (TSX:APM) just reshaped its balance sheet, securing a fresh US$40 million revolving credit facility with National Bank of Canada while retiring older, more complex loans to streamline financing.

    See our latest analysis for Andean Precious Metals.

    The refinancing sits against a powerful backdrop, with Andean’s 30 day share price return of 37.15 percent and year to date share price return of 638.33 percent signalling strong, building momentum, while its three year total shareholder return of 794.95 percent underlines how sustained the rerating has been.

    If this kind of momentum has your attention, it could be a smart moment to scan the market for other fast moving opportunities using our screener for fast growing stocks with high insider ownership.

    With the balance sheet now cleaner and momentum running hot, investors face a pivotal question: is Andean Precious Metals’ rapid rerating still leaving room for upside, or is the market already pricing in the next leg of growth?

    Most Popular Narrative: 10.6% Undervalued

    With Andean Precious Metals last closing at CA$8.86 against a narrative fair value of CA$9.92, the story points to meaningful upside driven by operational expansion and margin gains.

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

    Read the complete narrative.

    Curious how moderate top line growth, rising margins and a lower future earnings multiple still add up to a higher fair value than today’s price? The narrative leans on detailed revenue and profit forecasts, plus a specific discount rate, to bridge that gap between current momentum and long term cash generation. Want to see exactly how those assumptions stack up over the next few years and why they justify that valuation band? Read on to unpack the full playbook behind this pricing thesis.

    Result: Fair Value of $9.92 (UNDERVALUED)

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

    However, that upside hinges on timely permits for the COMIBOL ore deal and stable Bolivian politics, both of which could quickly derail expansion plans.

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

    Build Your Own Andean Precious Metals Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a fresh narrative in just 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.

    Looking for more investment ideas?

    Before momentum cools, put your watchlist to work by using the Simply Wall St Screener to uncover fresh opportunities that match your strategy and risk profile.

    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.