Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Andean Silver Advances Cerro Bayo Restart Plans After Resource Expansion
Highlights
Andean Silver Limited (ASX: ASL) outlined progress towards reviving its Cerro Bayo silver-gold project in Chile in half-year results announced on 2 September 2026. Covering the six months ended 30 June 2026, the update combined a larger mineral resource with increased exploration expenditure, a deeper loss and fresh fundraising plans.
Resource Growth Builds Restart Foundation
Cerro Bayo’s updated resource comprises 20.0 million tonnes averaging 211 grams per tonne silver equivalent. Contained metals include 55 million ounces of silver and 1.0 million ounces of gold, collectively representing 136 million silver-equivalent ounces.
Open-pit resources contribute 44 million silver-equivalent ounces, while underground resources account for 92 million ounces. Of the overall estimate, 60 million silver-equivalent ounces sit within the indicated category, supporting more detailed development assessments.
Exploration focused on the Laguna Verde Mining Complex near the existing processing plant. Drilling at Trinidad delivered an intersection of 2.4 metres averaging 15,558 grams per tonne silver equivalent, providing another target for follow-up work.
Exploration Spending Pressures Finances
Andean’s half-year net loss reached approximately AU$11.56 million, compared to AU$9.36 million in the corresponding period. Total income, comprising interest and other income, increased to approximately AU$1.56 million, compared to AU$0.92 million.
Cash used in operating activities totalled AU$8.87 million, compared to AU$5.50 million. Payments for exploration and evaluation increased to AU$10.64 million, compared to AU$8.02 million.
Cash reserves finished June at AU$42.70 million, compared to AU$56.09 million at the end of December 2025. These movements reflect the continuing cost of exploration, project preparation and maintaining the site ahead of any production restart.
Outlook Centres on Development Studies
The company announced an institutional placement on 2 September to raise approximately AU$40 million through shares priced at AU$2.45 each. The planned funding would complement existing reserves and support drilling, restart preparations, technical studies, early works and working capital.
Further mining, metallurgical and geotechnical assessments will help determine the project’s development pathway. While resource expansion strengthens its geological foundation, the next challenge is establishing how that inventory can support an economically viable operation. Progress in resource classification and technical studies will therefore be important measures of advancement.
Note- All data presented is based on information available at the time of writing.
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