Andean Precious Metals (TSE:APM) used its fourth-quarter and year-end earnings call to highlight what management described as a “step change” in 2025 results, driven by record financial performance, strong free cash flow, and a significantly strengthened balance sheet. Executives pointed to contributions from both the San Bartolomé silver operation and the Golden Queen gold operation, while outlining 2026 production, cost, and capital expectations and providing an update on exploration and an upcoming technical report at Golden Queen.
Record 2025 financial performance and stronger liquidity
Executive Chairman and CEO Alberto Morales said the company delivered record revenue, adjusted EBITDA, and net income in 2025, alongside “strong free cash flow generation,” and ended the year with a record $167 million in liquid assets. Morales said the cash flow generation “fundamentally changes” the company’s positioning, providing flexibility to fund growth initiatives and evaluate opportunities to expand its asset base.
Sandoval added that the balance sheet strengthened over the year, with total assets rising to $434 million and total liabilities declining to $170 million, which he attributed to debt repayment and cash generation. The $167 million in liquid assets included $79 million in cash and cash equivalents, $38 million in treasuries and money markets, and $49 million in strategic equity investments.
During 2025, the company fully repaid its legacy credit facilities and established a new $40 million revolving credit facility with National Bank, which management said further enhances financial flexibility heading into 2026.
Operational performance: San Bartolomé steady; Golden Queen improves into Q4
President Yohann Bouchard said Andean produced 27,777 gold equivalent ounces in the fourth quarter, bringing full-year production to slightly below 100,000 gold equivalent ounces. While production finished “near the low end of guidance,” he said both operations delivered strong performance and margin generation that supported record financial results.
At San Bartolomé, Bouchard said the operation produced 4.5 million ounces of silver in 2025, contributing to total gold equivalent production of 53,854 ounces. He reported a cash gross operating margin of $16.11 per silver ounce and a gross margin ratio of 42.75%, citing efficiency in ore sourcing, stable throughput, and strong realized silver prices.
At Golden Queen, Bouchard said 2025 production was 45,311 gold equivalent ounces, consisting of 41,627 ounces of gold and 331,000 ounces of silver. He said production strengthened into the fourth quarter. For the year, Bouchard reported cash costs of $1,698 per gold ounce and all-in sustaining costs (AISC) of $2,194 per gold ounce. He said the operation continued to focus on optimizing stacking, blending, and recovery, which are expected to support improved performance.
Management also noted the company maintained a balanced production profile in 2025, with approximately 57% of revenue coming from silver and 43% from gold.
Exploration and Golden Queen technical report delayed
On exploration, Bouchard said the company is focused on extending mine life and supporting long-term production across both operations. At Golden Queen, he said 47 core drill holes were completed in 2025 to extend the existing mineralized zone. While the drilling met expectations, Bouchard said longer-than-anticipated turnaround times at an independent assay lab led the company to postpone release of the updated technical report by “a few months” so the new information can be included.
In the Q&A session, Bouchard elaborated that the delay is primarily intended to incorporate the 2025 drilling results, and only secondarily, if possible, any 2026 holes. He described the 2025 information as meaningful and said postponing would provide a clearer picture to the market.
Asked about timing, management indicated the report is expected around the end of the third quarter.
At San Bartolomé, Bouchard said exploration is focused on securing additional oxide resources to support long-term plant feed, with work advancing across multiple targets aimed at increasing available resources and maximizing plant capacity utilization.
2026 guidance: production, costs, and capital plans
Morales said the company has provided detailed 2026 production, cost, and capital guidance and expects consolidated production of 100,000 to 114,000 gold equivalent ounces. Production is expected to be weighted about 45% in the first half and 55% in the second half, reflecting mine sequencing at Golden Queen and ore delivery timing at San Bartolomé.
- Golden Queen 2026 guidance: cash costs of $1,500 to $1,800 per gold ounce; AISC of $1,850 to $2,150 per gold ounce.
- San Bartolomé 2026 guidance: cash gross operating margins of $20 to $35 per silver ounce; gross margin ratios of 35% to 45%.
- 2026 capital program: sustaining capital of approximately $17 million to $24 million; growth capital of approximately $21 million to $30 million.
Morales said Golden Queen capital will focus on leach pad expansion, development and infrastructure, and equipment additions supporting mine life extensions. At San Bartolomé, he said capital will be directed toward processing improvements, plant optimization initiatives, and sustaining infrastructure.
Q&A: marketable securities volatility, costs, and inflation sensitivity
During Q&A, Sandoval discussed the company’s cash management strategy, which includes cash, marketable securities (primarily treasuries with durations up to three years), and strategic equity investments. He noted recent volatility in mining equities and said the company has seen a reduction in the valuation of its equity investments, but added management expects some of that to be offset when first-quarter results are reported.
Asked about higher Golden Queen costs from the third to fourth quarter of 2025, Vice President of Finance and Corporate Controller Dom Kizek said the fourth quarter included “catch-up costs,” including inventory adjustments. He also said AISC increased in the quarter because the company accelerated some capital expenditures into the fourth quarter.
On macro factors, management said oil prices could impact results if they remain above $100 per barrel, primarily through diesel and fuel costs and broader energy-driven inflation. Management characterized the issue as more related to pricing than availability of consumables.
Management also discussed San Bartolomé’s exposure to commodity prices, noting that some feed comes from long-term fixed-price contracts and some from spot purchases. On spot purchases, management said higher commodity prices also raise ore costs, providing what it described as a “natural hedge,” while fixed-price contracts make the business more exposed to commodity prices and more profitable in a high-price environment.
Looking ahead, Morales said the company is entering 2026 “from a position of strength,” citing a strong balance sheet, an operating plan guided by margin and cash flow generation, and upcoming catalysts including a planned New York Stock Exchange listing.
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.
