Northwire Canada EditionTuesday, November 10, 2026
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Earnings

Andean Precious Metals Reports Third Quarter 2026 Financial Results

Golden Queen guide cut 17%; silver margins sag despite record prices

By The Northwire Desk — AI Analysis Nov 10, 2026 · 17:01 APM · 5.13 Andean Precious Metals Corp.
Executive Summary
  • Q3 2026 (reported November 10, 2026, after close): record revenue of $196.6M, up 117% from $90.4M, on record sales of 39,178 GEOs — which included the finished inventory whose sale was deferred at the end of Q2. Realized prices $4,287/oz gold (+24%) and $63.49/oz silver (+58%). Silver was 71% of revenue.
  • Net income $32.3M ($0.22 basic / $0.21 diluted) versus $43.7M ($0.29) in Q3 2025, which the company attributes to prior-year unrealized gains on marketable securities. Nine-month net income $66.5M ($0.44) versus $75.8M — a 12% decline year over year on a 89% revenue increase.
  • Adjusted EBITDA $54.4M (+51%); free cash flow $69.8M versus $12.4M. Nine-month FCF $53.9M.
  • Production 27,262 GEOs, up 6% year over year and 7% sequentially; nine-month 79,992 GEOs, up 12%.
  • Costs: Golden Queen OCC $2,088/oz (Q3 2025: $1,623) and AISC $2,216/oz (Q3 2025: $1,682). San Bartolome CGOM $18.13/AgEq oz (Q3 2025: $17.56), GMR 28.55% versus 43.76%.
  • Guidance revised: consolidated GEOs narrowed to 101,000–109,000 (original 100,000–114,000); Golden Queen gold cut to 37,000–40,000 oz from 43,000–50,000 oz with OCC raised to $1,800–2,000 and AISC to $2,100–2,300; San Bartolome silver raised to 4.8–5.2 Moz from 4.4–4.8 Moz with CGOM/GMR unchanged; consolidated capex halved to $17–28M from $38–54M.
  • The capex cut is specific: the Golden Queen heap leach pad expansion is deferred and the Merrill-Crowe plant upgrade is "under review in conjunction with the updated technical report." Growth capex falls to $3–9M from $21–30M.
  • Bolivia FX: first full quarter under the flexible regime; costs recognized at an average 11.58 BOB/USD versus an original assumption of 9.00, with 12.00 assumed for Q4.
  • Other: 2,348,530 shares repurchased in Q3 at C$6.14 for C$14.5M (US$10.7M), total 2,893,530 shares for C$17.6M of the 4,000,000 authorized; 200,000 oz of physical silver purchased September 30 for $12.1M as a treasury holding; NYSE listing now expected in 2027 under a new ticker (previously 2026); Golden Queen technical report now expected by end-2026.
Material Impact
  • The genuinely new information in this release is the mine-level guide-down and the margin structure at San Bartolome, not the record revenue headline.
  • Golden Queen is the gold half of the business and its output guide is cut 17.2% at the midpoint while its cost guide rises 10% (AISC) to 15% (OCC) at the midpoint. On the release's own numbers, the quarterly run-rate is worse than the annual range suggests: nine-month Golden Queen AISC of $2,067 on 27,156 oz sold implies a Q4 AISC of roughly $2,450–3,150/oz to land inside the revised $2,100–2,300 full-year band (assuming Q4 gold sales of ~10,000–13,000 oz). The revised range does not describe the current cost run-rate; it averages it against a better first half.
  • San Bartolome's gross margin ratio fell to 28.55% from 43.76% while realized silver rose 58%. Cost of sales per silver-equivalent ounce sold rose 101% ($22.57 to $45.37) against a 58% price gain. Ore purchase costs are spot-silver-linked, so Andean's silver leverage is structurally capped — the release frames this as a pass-through, but the pass-through is running at roughly 1.7x the price move.
  • Gross margin compressed to 28.2% of revenue in Q3 2026 from 40.7% in Q3 2025 — a 12.5-point decline in the same quarter that realized gold rose 24% and silver 58%. That is the single most important number in the release and management does not mention it.
  • The capex cut is presented as "disciplined approach to prioritizing investment." It is also the removal of the two projects underpinning the previously telegraphed 6%–10% leach-pad production uplift and the mine-life extension thesis, and it defers a decision until the delayed technical report lands.
  • What management emphasized: record revenue, +51% Adjusted EBITDA, $69.8M free cash flow, $195.8M liquid assets, the buyback, the silver purchase. What it downplayed: the 17% gold guide cut, the 32% year-over-year AISC increase at Golden Queen, the 15-point GMR collapse, the second slippage of the NYSE listing, and the fact that Q3's cash flow was substantially a liquidation of the June 30 inventory position rather than operating surplus.
  • The market was already positioned defensively: the shares are down 31.6% since the Q2 release (C$7.50 on August 11 to C$5.13 on November 10) and 56% from the January high, against sharply higher metal prices. Direction of travel was anticipated; the specific arithmetic of Q4 Golden Queen costs and the removal of the growth capex catalyst is new.
APM · Price
Company Overview
  • Andean Precious Metals Corp., headquartered in Toronto, listed on the TSX (APM) and OTCQX (ANPMF), with an NYSE listing now targeted for 2027.
  • Golden Queen mine: open-pit, heap-leach gold mine in Kern County, California, operating since 2016, 1,100 hectares, grid-connected, permitted water supply, and a permitted 40-year aggregate business that offsets closure costs. Acquired January 2025 — a recent acquisition that is the source of most of the current operating disappointment.
  • San Bartolome: silver oxide processing facility near Potosí, Bolivia, operating since 2008, designed capacity 1.8 Mtpa, fed predominantly by third-party ore (87% in 2025) under a 60/40 contracted-to-spot blend, with a long-term COMIBOL agreement for up to 7 Mt.
  • Product mix in Q3 2026 was 71% silver by revenue — the company describes itself as a gold-silver producer but is currently a silver processor with a gold mine attached.
  • Jurisdictions: California (permitting-intensive, high labour and energy costs) and Bolivia (flexible exchange-rate regime adopted June 29, 2026, 7% mining royalty, 25% corporate tax, elevated political risk).
Read the original news release →

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