Andean Precious Metals Q1 Earnings Call Highlights

Key Points

• Andean Precious Metals posted a record Q1 2026, with revenue of $163.1 million, adjusted EBITDA of $71 million, net income of $48.2 million, and about $40 million in free cash flow. The company ended the quarter with more than $204 million in liquid assets.
• San Bartolomé was the main growth driver, with production up sharply year over year and margins expanding as stronger silver prices outpaced higher ore costs. Management said the operation benefited from higher throughput, better grades, and improved supply relationships.
• The company reiterated full-year 2026 guidance and said production is expected to be weighted toward the second half of the year. Andean also highlighted its planned NYSE listing, ongoing exploration at Golden Queen, and openness to opportunistic acquisitions.

Andean Precious Metals TSE: APM reported a record first quarter for 2026, with management citing higher production, stronger realized gold and silver prices, and improved performance across its San Bartolomé and Golden Queen operations.

Executive Chairman and Chief Executive Officer Alberto Morales said the company delivered “an excellent start to 2026,” with consolidated production up approximately 28% from the first quarter of 2025 and also higher than the fourth quarter of 2025. Quarterly revenue rose to $163.1 million, while adjusted EBITDA reached $71 million and net income was $48.2 million.

Morales said approximately 64% of total revenue in the quarter came from silver production and 36% from gold production, underscoring what he described as the strength of the company’s diversified precious metals platform and its exposure to silver prices. The company generated about $40 million in free cash flow and ended the quarter with more than $204 million in liquid assets.

San Bartolomé Drives Margin Expansion

Chief Financial Officer Juan Carlos Sandoval said San Bartolomé produced approximately 15,847 gold equivalent ounces in the first quarter, a 56% increase from the prior-year period. On a silver basis, the operation produced about 1.23 million ounces, up roughly 45% year over year.

Sandoval attributed the performance to higher ore purchase volumes, improved grades and increased throughput. Average daily throughput rose to approximately 4,500 tons per day, while average head grades increased about 28% from a year earlier.

The operation also benefited from stronger silver prices. Sandoval said San Bartolomé’s cash gross operating margin increased to more than $36 per silver equivalent ounce sold, compared with about $13 in the prior-year period. The gross margin ratio exceeded 45%.

Although ore purchase costs increased due to higher silver prices and increased purchase volumes, Sandoval said realized silver prices “significantly outpaced cost increases,” leading to margin expansion. He said the company remains focused on strengthening long-term ore supply relationships, optimizing logistics and improving operating efficiencies.

Golden Queen Performs in Line With Expectations

At Golden Queen, Sandoval said operations performed in line with expectations. The mine produced approximately 11,500 gold equivalent ounces, including roughly 10,600 ounces of gold. Revenue increased year over year to about $55 million, primarily due to higher realized gold prices.

Operating cash costs were approximately $1,596 per ounce sold, while all-in sustaining costs were approximately $1,859 per ounce sold. Sandoval said the year-over-year reduction in all-in sustaining costs was mainly driven by lower sustaining capital expenditures during the quarter, reflecting the timing of planned capital deployment.

Management said sustaining and growth capital expenditures are expected to increase through the remainder of 2026 in line with guidance. Planned initiatives at Golden Queen include leach pad expansion work, mobile fleet investments and operational optimization projects intended to support long-term performance and mine life extension.

Exploration also continued during the quarter. Sandoval said the 2026 Phase 1 drill program of approximately 10,000 meters is expected to be completed in mid-June. The company is assessing a second phase of exploration for 2026, including geophysics, mapping, sampling and additional drilling. Results of an updated technical report for Golden Queen are expected toward the end of the third quarter and will include all 2025 drilling.

Company Reiterates 2026 Guidance

Morales said Andean Precious Metals is reiterating its full-year 2026 guidance across production, costs and margins. He said the production profile remains weighted toward the second half of the year because of planned mine sequencing at Golden Queen and ore delivery timing at San Bartolomé.

The company continues to expect approximately 45% of annual production in the first half of the year and approximately 55% in the second half. Morales also said the company continues to monitor geopolitical events and their effect on commodity prices and monetary policies.

During the quarter, average realized gold prices were approximately $4,856 per ounce, while average realized silver prices were approximately $79.49 per ounce, according to Sandoval. Gross operating income rose to approximately $75.6 million from about $23 million in the prior-year period. Net income was approximately $48 million, or $0.32 per diluted share.

Sandoval said the company ended the quarter with approximately $204 million in liquid assets and long-term bank debt of about $39 million. He said Andean remains focused on disciplined capital allocation, operational execution and maintaining financial flexibility.

NYSE Listing and Growth Opportunities

Morales highlighted several strategic initiatives during the quarter. In January, PMB Partners completed a non-dilutive secondary offering intended to increase Andean’s public float and enhance trading liquidity on the TSX. Morales said the company did not issue shares and did not receive proceeds from the transaction.

In March, the company announced its intention to pursue a listing on the New York Stock Exchange. Morales said the proposed listing is expected to broaden the investor base, improve liquidity and increase visibility among North American institutional investors. He said the company anticipates being listed by late September.

Andean also appointed Victor Flores as senior vice president of exploration, operations and growth. Morales said Flores brings operational, technical and capital markets experience and is expected to play an important role in advancing operational and growth initiatives.

Analysts Ask About CapEx, Taxes and Acquisitions

During the question-and-answer session, Justin Chan of SCP Resource Finance asked about lower capital expenditures relative to guidance and whether spending would ramp up later in the year. Sandoval said the lower first-quarter spending reflected timing and that the company is reaffirming its capital expenditure guidance.

Dom Kizak, vice president of finance, said there were no unusual tax items in the quarter and that the first-quarter tax expense fairly represented the company’s tax exposure and effective tax rate for modeling purposes.

Chan also asked about costs and margins, including whether higher fuel prices could affect results. Sandoval said San Bartolomé’s costs depend partly on silver prices because some ore purchases are made at market-based prices. For Golden Queen, he said costs have been stable and he does not foresee major changes in the cost structure over the next few quarters.

Riley Venton of Atrium Research asked about San Bartolomé’s margins and how the company moderated costs as silver prices increased. Management said the operation uses a blend of spot purchases and longer-term contracts, including arrangements with different pricing mechanisms, which it said has created a resilient business model.

Venton also asked about capital allocation and acquisitions. Management said the company continues to evaluate additional acquisition opportunities and wants to be opportunistic about timing. The company said first-quarter results strengthened the balance sheet and provided liquidity that could be used for those purposes.

Morales closed the call by saying the company was encouraged by its first-quarter results and looked forward to the remainder of the year.

About Andean Precious Metals TSE: APM

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.

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