Andean Precious Metals Q4 2025 Earnings Report

Andean Precious Metals EPS Results

• Actual EPS: C$0.37
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Andean Precious Metals Revenue Results

• Actual Revenue: $179.00 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Andean Precious Metals Announcement Details

• Quarter: Q4 2025
• Date: 3/25/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, March 25, 2026
• Conference Call Time: 9:00AM ET

Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The Company owns and operates the San Bartolome processing facility in Potosí, Bolivia and the Golden Queen mine in Kern County, California, and is well-funded to act on future growth opportunities. Andean's leadership team is committed to creating value; fostering safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset, mid-tier precious metals producer.

Andean Precious Metals Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record 2025 financials: Revenue of $359M, Adjusted EBITDA $133M, net income $118M, free cash flow $59M for the year and a record $167M in liquid assets, with legacy debt repaid and a new $40M revolving credit facility.
• Neutral Sentiment: Production finished slightly below guidance at ~100,000 gold-equivalent ounces in 2025 (Q4: 27,777 GEO); 2026 consolidated guidance is 100,000–114,000 GEO with production weighted ~45% H1 / 55% H2.
• Negative Sentiment: The updated Golden Queen technical report was postponed by a few months to include 2025 drilling (47 core holes) after assay lab delays, delaying a near-term catalyst though management expects the added data to strengthen the report.
• Positive Sentiment: Strong cost and margin outlook — San Bartolomé reported a $16.11 cash gross operating margin per silver ounce (42.75% gross margin) in 2025, and Golden Queen’s 2026 cost guidance ($1,500–$1,800 cash costs; $1,850–$2,150 AISC per gold ounce) reflects expected optimization and improved performance.
• Positive Sentiment: Capital and corporate catalysts: 2026 sustaining capex $17–$24M and growth capex $21–$30M, a planned New York Stock Exchange listing, and financial flexibility to fund growth or pursue asset expansion.

Presentation

[Operator]

Thank you for standing by. At this time, I would like to welcome everyone to the Andean Precious Metals fourth quarter and year-end conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Amanda Mallough, Director of Investor Relations. You may begin.

[Amanda Mallough, Director of Investor Relations at Andean Precious Metals Corp]

Thank you. Good morning, everyone, and thank you for joining Andean Precious Metals conference call to discuss our financial and operating results for the three and 12 months ended December 31st, 2025. Our press release, MD&A, and financial statements are available on SEDAR+ and on our corporate website at andeanpm.com. Before we begin, I would like to remind listeners that today's discussion will include forward-looking statements. Please refer to our cautionary language in our filing. Joining me on the call today are Alberto Morales, Executive Chairman and CEO, Yohann Bouchard, our President, Juan Carlos Sandoval, our Chief Financial Officer, and Dom Kizek, our Vice President of Finance and Corporate Controller. Following prepared remarks, we will open the line for questions. With that, I'll now turn the call over to Alberto.

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

Thank you, Amanda, and good morning, everyone. 2025 marked a step change for Andean, where we record financial results and fundamentally strengthen our balance sheet. We achieved record revenue, Adjusted EBITDA and net income, alongside with strong free cash flow generation and exited the year with a record $167 million in liquid assets. This level of cash flow generation fundamentally changes our positioning as a company. We enter 2026 with a strong balance sheet and the financial flexibility to fund growth initiatives and evaluate opportunities to expand our asset base. Operationally, both assets contributed to this performance. At San Bartolomé, the operation delivered consistent production and strong margins, supported by efficient processing and strong silver prices. At Golden Queen, production strengthened into the fourth quarter, supporting higher consolidated gold production and contributing to our record financial results.

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

For the year, we maintained a balanced production profile with approximately 57% of revenue coming from silver and 43% from gold. Looking ahead, we expect several important milestones in 2026, including our planned New York Stock Exchange listing and the updated technical report at Golden Queen. Overall, 2025 demonstrated the strength of our platform, a business capable of generating meaningful cash flow, maintaining strong margins, and positioning itself for the next phase of growth. With that, I will turn it over to Yohann.

[Yohann Bouchard, President at Andean Precious Metals Corp]

Well, thank you, Alberto, and good morning, everyone. For the fourth quarter, Andean produced 27,777 gold equivalent ounces, bringing full-year production slightly below 100,000 gold equivalent ounces. While production finished near the low end of guidance, both operations delivered strong current performance and margin generation, supporting record financial results. At San Bartolomé, the operation continued to perform consistently. For the year, the operation delivered 4.5 million ounces of silver, contributing to a total of gold equivalent production of 53,854 ounces. Operational performance remained strong for the full year, with cash gross operating margin of $16.11 per silver ounce and gross margin ratio of 42.75%. These results reflect continued efficiency in ore sourcing, stable throughput and strong realized silver prices.

[Yohann Bouchard, President at Andean Precious Metals Corp]

At Golden Queen, the operation produced 45,311 gold equivalent ounces in 2025, comprised of 41,627 ounce of gold and 331,000 silver ounces. Production improved into the fourth quarter, supporting stronger consolidated results. For the year, cash costs were $1,698 per gold ounce, and all-in sustaining costs was $2,194 per gold ounce. The operation continued to focus on optimizing stacking, blending, and recovery, which are expected to support improved performance going forward. From an operational perspective, both assets are well-positioned heading into 2026 with stable production and strong margins.

[Yohann Bouchard, President at Andean Precious Metals Corp]

Production is expected to be weighted approximately 45% in the first half of the year and 55% in the second half, driven by mining sequence at Golden Queen and ore delivery timing at San Bartolomé. With that, I will turn it over to JC.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Thank you, Yohann, and good morning, everyone. From a financial perspective, 2025 was a record year across all key metrics.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

In the fourth quarter, we delivered strong results across the board, including revenue of $134 million and Adjusted EBITDA of $47 million. For the full year, revenue reached $359 million, Adjusted EBITDA was $133 million, and net income was $118 million or $0.78 per share. Free cash flow totaled $36 million in the fourth quarter and $59 million for the year, reflecting strong cash generation. Our balance sheet strengthened significantly over the year. Total assets increased to $434 million, while total liabilities declined to $170 million, reflecting debt repayment and strong cash generation. We ended the year with $167 million in liquid assets, a record for the company.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

This was comprised of $79 million in cash and cash equivalents, $38 million in treasuries and money markets, and $49 million in strategic equity investments. During the year, we fully repaid our legacy credit facilities and established a new $40 million revolving credit facility with National Bank, further enhancing our financial flexibility. This positions the company with strong liquidity and financial flexibility moving into 2026. With that, I'll turn it back to Yohann for an update on our exploration programs.

[Yohann Bouchard, President at Andean Precious Metals Corp]

Oh, thank you, JC. Our exploration programs are focused on extending mine life and supporting long-term production across both operations. At Golden Queen, exploration remains focused on expanding known mineralization and supporting mine life expansion. In 2025, we completed 47 core drill holes aiming at extending the existing mineralized zone. While the drilling program met our expectations, turnaround times at the independent assay lab were longer than anticipated. Consequently, we have decided to postpone the release of the technical report by a few months to include this new information. Looking ahead to 2026, our primary objective is to advance infill drilling to convert inferred resources into the measured and indicated categories. Our second objective is to follow up on the zone drilled in 2025 with additional infill drilling, which is intended to further extend mineral reserves along the trend of the existing mining area.

[Yohann Bouchard, President at Andean Precious Metals Corp]

Postponing the release of the technical report by a few months ensures the market receives a clearer and more complete picture of the asset's long-term value. At San Bartolomé, exploration is focused on securing additional oxide resources to support long-term plant feed. We continue to advance exploration across multiple targets with the objective of increasing available resources and maximizing utilization of the plant's capacity. Overall, these programs are designed to enhance production, extend mine life, and support long-term value creation across both operations. With that, I will turn it back to Alberto, who will talk about the 2026 guidance.

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

Thank you, Yohann. As we look ahead to 2026, we have already provided detailed production, cost, and capital guidance to the market. We expect consolidated production to be in the range of 100,000-114,000 gold equivalent ounces, with production expected to be weighted approximately 45% in the first half of the year and 55% in the second half, reflecting mine sequencing and ore delivery timing. At Golden Queen, we expect cash costs between $1,500-$1,800 per gold ounce, and all-in sustaining costs between $1,850-$2,150 per gold ounce. At San Bartolomé, we expect cash gross operating margins between $20-$35 per silver ounce and gross margin ratios between 35%-45%.

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

Overall, this positions the company to continue generating strong margins and cash flows across the range of a commodity price environments. Our capital program for 2026 is aligned with our strategy of driving long-term value while maintaining financial discipline. We expect sustaining capital of approximately $17 million-$24 million and growth capital of approximately $21 million-$30 million. At Golden Queen, capital will focus on leach pad expansion, development and infrastructure, equipment additions supporting mine life extensions. At San Bartolomé, capital will be directed towards processing improvements, plant optimization initiatives, and sustaining infrastructure. Overall, 2026 plan is designed to enhance operational flexibility, support mine life extension, and positions the company for continued free cash flow generation and long-term growth.

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

To close, 2025 marked a significant step forward for Andean. We delivered record financial results, generated meaningful free cash flow, and transformed our balance sheet. As we move into 2026, we are focused on delivering against our guidance, continuing to generate strong margins and cash flow, and advancing key initiatives across both of our operations. We are entering 2026 from a position of strength with a clear path to continue scaling the business and delivering long-term value for the shareholders. With a strong balance sheet, a clear operating plan, and upcoming catalysts, including our planned New York Stock Exchange listing, we are well-positioned to execute on the next phase of growth. Thank you everyone for your continued support. Operator, I would like to please open the line for questions.

[Operator]

At this time, I would like to remind everyone in order to ask a question, press star then 1 on your telephone keypad. We will pause for a moment to compile a Q&A roster. Your first question comes from the line of Justin Chan with SCP Resource Finance. Please go ahead.

[Justin Chan, Head of Research at SCP Resource Finance]

Hi, guys. Thanks, congrats for a cash-generating year. Just my first question is on the, I guess the timing of the updated resource at Golden Queen. I guess maybe can you give a bit more color on, will you be doing more drilling? I guess, will drilling from the first quarter of the year go into the update? Like, what's the cutoff for data going into it? Then, yeah, if you could give us kind of the flow of timing from cutting off drilling data and then when you expect to release it?

[Yohann Bouchard, President at Andean Precious Metals Corp]

Good morning. Yohann here, and thanks for that question. The main reason for postponing by let's say three to four months the technical report is really to make sure that we include all of the information from 2025. Which is very exciting. I mean, we got 47-meter hole that's within the extension, and we believe that everything can make its way into resource. As we feel that by rushing the report, I mean, we're not getting full value to that report, basically. I would say postponing the report has very little to do with drilling that we're doing in 2026. We're gonna try to include some of those holes if we can, but this is not the end game here.

[Yohann Bouchard, President at Andean Precious Metals Corp]

The end game is really to include all the information we have drilled in 2025, but which is meaningful, I think, for the operation.

[Justin Chan, Head of Research at SCP Resource Finance]

Understood. Gotcha. It's not like you need to do any more info. It's just a matter of enough time to actually model up the data you already have.

[Yohann Bouchard, President at Andean Precious Metals Corp]

Absolutely. We are very satisfied with the drilling of 2025. Again, I mean, this is out of our control. I mean, the lab was quite busy, and we have some delay with that. I believe that everybody's winning by postponing a little bit and providing something that give a clearer picture to the market.

[Justin Chan, Head of Research at SCP Resource Finance]

Gotcha. Thanks. I have a question on just the marketable securities, and I guess there was some movement overall, I'd say, especially this quarter in terms of the FX impact on your cash and also I think quite a bit like about $10 million worth of revaluation of the marketable securities. Could you give us a bit more color on. It sounds like you have a mix of treasuries and also or money market, let's call it debt instruments, but also equities. I'm just curious, I guess how that revaluation might work in future periods?

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Yeah. Thank you, Justin. It's JC. Yes, as you know, as part of our cash management strategy, we hold three things, cash, marketable securities, which is mostly composed of treasuries, whether it be short-term or up to three years, and then our strategic equity investments, right? Yes, as we have seen over the last few weeks, there has been more volatility, especially in mining companies. Yes, we've seen a reduction in the valuation of our equity investments. However, we believe that, you know, when we present our first quarter numbers, we'll compensate some of that loss that we have seen on the market overall.

[Justin Chan, Head of Research at SCP Resource Finance]

Gotcha. Just the equities themselves, they're accounted for as part of the marketable securities, short- and long-term. Is that right?

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Yeah, that's correct.

[Justin Chan, Head of Research at SCP Resource Finance]

Okay. Gotcha. Just the last one, and I'll free up the line. I mean, I would expect less impact given where your operations are, but just, I guess good housekeeping that I've been asking on other calls. Given the volatility in global supply chains, oil prices, et cetera, I'd imagine your locations are less impacted, but can you just flag any impacts that we should consider?

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Yeah. So obviously, everyone's being impacted. If oil prices remain above $100 per barrel, it will have an impact. We are working on that. Yes, as you say, at least in the U.S., it will be less of an impact compared to the international markets. Yeah, I mean, right now we don't really know where it's going to end up, but you know, it's again, if oil prices continue to be where they are, yes, it will have an impact on our overall bottom line.

[Justin Chan, Head of Research at SCP Resource Finance]

Okay. Got you. It sounds like it's limited to more just the price of oil as opposed to like, you know, supply of any consumables or anything else?

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

Energy-driven inflation, basically.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

It's mostly diesel and fuel. Some of the consumables might also be affected as well. It's mostly fuel and diesel, Justin.

[Justin Chan, Head of Research at SCP Resource Finance]

Yeah. It's a pricing rather than availability issue?

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Correct. Yeah, absolutely.

[Justin Chan, Head of Research at SCP Resource Finance]

Okay, great. Thanks very much.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Thank you, Justin.

[Operator]

Your next question comes from the line of Ben Pirie with Atrium Research. Please go ahead.

[Ben Pirie, Co-Founder & Research Analyst at Atrium Research]

Hi, all. Congrats on another strong quarter and closing out 2025. Just piggybacking off Justin's question there with the resource, can you just confirm, so now this is being pushed to the end of Q2, early Q3, or is it three months further than that?

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

The way I see it, I mean, there's gonna be full power at the end of Q3.

[Ben Pirie, Co-Founder & Research Analyst at Atrium Research]

Okay. Understood. Thank you. Just confirming.

[Alberto Morales, Executive Chairman and CEO at Andean Precious Metals Corp]

Yeah.

[Ben Pirie, Co-Founder & Research Analyst at Atrium Research]

At the Golden Queen, can you just touch on the increasing costs between Q3 and Q4 of 2025? Going beyond that, you know, we're looking at the AISC guidance $1,850-$2,150 for 2026. Can you just touch on what's sort of gonna change from Q4 2025 to bring those costs back down to that range, and just sort of give investors some confidence around the cost going forward here?

[Dom Kizek, VP of Finance and Corporate Controller at Andean Precious Metals Corp]

Hey, Ben, it's Don here. This is Q4 we had some catch-up costs, including some inventory adjustments there. Going forward, we have reiterated our guidance, so we do expect those costs to be within that guidance, as of today.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

All-in sustaining costs increased as well during Q4 because yes, if you look at the CapEx, we accelerated some CapEx in that fourth quarter. That's why for that fourth quarter, all-in sustaining costs did increase a bit, but it was mostly related to that CapEx allocated during the fourth quarter.

[Ben Pirie, Co-Founder & Research Analyst at Atrium Research]

Okay. Understood. Thank you. Then just, I guess lastly, if I don't have too much, but on San Bartolomé, can you just talk to us about how the volatility in the gold price over the last couple months might impact margins, just given, you know, it is a margin business?

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Bear in mind that we have a processing facility, right? Part of our feed is coming from long-term contracts, and part of it is coming from spot purchases. On the spot purchases, yes, we are paying for ore at market prices, obviously higher prices. As we've mentioned in our guidance, we have a very profitable margin. Well, on the fixed contracts, it's a fixed price per ton. On those contracts, we are more exposed to commodity prices. In this high price environment, you know, it's becoming more profitable. The combination of both, as I have said, still make it a very profitable business, but less risky overall because on the spot purchases, we have sort of like a natural hedge, right?

[Ben Pirie, Co-Founder & Research Analyst at Atrium Research]

Yeah. In a sharp sort of decline like we saw with gold over the last couple weeks bouncing back this morning, there's a little bit of a margin compression in that environment. Again, the trend has been up and to the right for the gold price, so it has been benefiting you with this business positively.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Yeah, that is correct then.

[Ben Pirie, Co-Founder & Research Analyst at Atrium Research]

Okay, great. Well, again, congrats on a strong year, and that's all I have today.

[Ben Pirie, Co-Founder & Research Analyst at Atrium Research]

Thank you.

[Juan Carlos Sandoval, Chief Financial Officer at Andean Precious Metals Corp]

Thank you, Ben.

[Operator]

There are no further questions at this time. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Participants

Executives

• Alberto Morales, Executive Chairman and CEO
• Amanda Mallough, Director of Investor Relations
• Dom Kizek, VP of Finance and Corporate Controller
• Juan Carlos Sandoval, Chief Financial Officer
• Yohann Bouchard, President

Analysts

• Ben Pirie, Co-Founder & Research Analyst at Atrium Research
• Justin Chan, Head of Research at SCP Resource Finance