Andean Precious Metals Reports Third Quarter 2025 Financial Results

Executive Summary

• Record Q3 2025 consolidated revenue of $90.4 M and net income of $43.7 M (diluted EPS $0.29), driven by higher realized gold ($3,448/oz) and silver ($40.09/oz) prices.
• Consolidated production reached 25,688 gold‑equivalent ounces in the quarter (71,388 oz YTD); Golden Queen delivered 10,083 oz GE, San Bartolome 15,606 oz GE.
• Strong cash generation: liquid assets $121.4 M; free cash flow $12.4 M; CAPEX restrained to $0.6 M.

Key Details

• Financial Highlights (Q3 2025 vs Q3 2024)
• Revenue: $90.4 M vs $68.3 M
• Gross operating income: $36.8 M vs $23.7 M
• Income from operations: $30.8 M vs $19.9 M
• Adjusted EBITDA: $36.0 M vs $19.6 M
• Net income: $43.7 M vs $8.2 M (diluted EPS $0.29 vs $0.05)

• Free cash flow: $12.4 M vs $18.5 M (lower due to reduced operating cash flow)

• Operating Metrics

• Golden Queen OCC: $1,623/oz; AISC: $1,807/oz – both within guidance.
• San Bartolome CGOM: $16.13 per silver‑equivalent ounce; GMR: 43.76%.

• Consolidated cash gross operating margin: $16.13 (silver equivalent) and gross margin ratio 43.76%.

• Production

• Golden Queen Q3 production: 10,083 GE oz (33,484 GE oz YTD).

• San Bartolome Q3 production: 15,606 GE oz (37,906 GE oz YTD).

• Balance Sheet

• Total assets increased to $370.8 M; total liabilities decreased to $145.2 M.

• Liquid assets (cash + marketable securities – revolving credit) $121.4 M at quarter‑end.

• Capital Expenditure

• Q3 CAPEX: $0.642 M (primarily sustaining capital).

• Revised reporting methodology now reflects cash‑flow basis for CAPEX.

• Corporate Updates

• Board change: Peter Gundy stepped down on Aug 29 2025.

• Filed a base shelf prospectus permitting up to $200 M of securities over the next 25 months (no immediate offering).

• Forward‑Looking Statements

• Expect production at Golden Queen to finish the year below the lower end of guidance due to leach‑cycle timing; San Bartolome expected near the top of its range.
• Anticipate continued cost discipline and CAPEX in line with expectations.

Notable Quotes

• Alberto Morales, Executive Chairman & CEO: “The third quarter was another strong period for Andean, marked by record revenue and net income driven by higher metal prices, disciplined cost management, and solid margin performance.”

Materiality Assessment: Material – Positive (record financial results, significant cash generation, and guidance implications).