Up 118% in 2025, why is this All Ords ASX silver share crashing on Monday?

Investors are punishing this outperforming ASX silver share today. But why?

Key points
  • Andean Silver shares dropped by 12.4% to $1.83 after the company announced a $30 million capital raise at an 11.5% discount to the last closing price.
  • Despite the drop, shares remain up 117.9% in 2025, buoyed by high silver prices and operational successes.
  • The funds raised are intended to accelerate drilling at the Cerro Bayo Silver-Gold Project in Chile, targeting resource growth, conversion, and exploration, with a resource upgrade expected next year.

The All Ordinaries Index (ASX: XAO) is down 0.2% on Monday, and it's not getting any help from this plunging All Ords ASX silver share.

The falling miner in question is Andean Silver Ltd (ASX: ASL).

Andean Silver shares closed last Thursday at $2.09 each. Then the stock entered a trading halt on Friday pending the release of an announcement regarding a capital raising.

That announcement was released before market open today. And investors have responded by reaching for their sell buttons.

In late morning trade on Monday, the ASX silver share is trading for $1.83, down 12.4%. But don't feel too badly for longer-term shareholders. Amid record-setting silver prices and the miner's own operational successes, the share price remains up 117.9% in 2025.

Now, here's what's putting the Andean Silver share price under pressure today.

Silver bull statue next to silver bear statue.

Image source: Getty Images

All Ords ASX silver share raises $30 million at sharp discount

The Andean Silver share price is under heavy pressure after the company reported that it has received firm commitments from institutional and sophisticated investors to raise $30 million through the issue of just over 16.2 million shares.

While those new funds will be welcome, investors are selling the ASX silver share as the company is issuing the new shares for $1.85 each, or 11.5% below Thursday's closing price.

Andean Silver said it will also undertake a share purchase plan (SPP) to raise approximately $3 million. Those new shares will also be issued for $1.85 apiece.

The miner intends to use much of the roughly $33 million in expected new funds to fast-track the drilling campaign at its Cerro Bayo Silver-Gold Project, located in Chile. This was said to include resource growth, resource conversion, and regional exploration.

What did management say?

Commenting on the discounted capital raise that's pressuring the ASX silver share today, Andean Silver CEO Tim Laneyrie said, "We have an abundance of opportunities to drive growth and value creation."

Laneyrie added, "The proceeds from the Placement and SPP will help us unlock these opportunities through drilling programs, project studies and potential land acquisitions."

Looking ahead, he concluded:

We are on track to deliver a resource upgrade in the new year while ramping up our drilling to grow and upgrade the resource.

Andean is uniquely placed in the silver market with its significant existing infrastructure which will help deliver a capital-light restart in the quickest and most efficient manner. Being well supported and funded by shareholders will enable that groundwork to occur during 2026.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.  

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