Andean Precious Metals Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Andean Precious Metals (OTCQX: ANPMF, TSX: APM) reported Q2 2026 results marked by a strategic deferral of metal sales. Q2 revenue was $67.6 million versus $73.7 million in Q2 2025, with a net loss of $14.0 million versus prior-year net income of $17.4 million, largely due to unsold inventory and marketable securities and FX impacts.
Year-to-date 2026 revenue rose about 70% to $230.8 million, with income from operations up to $76.3 million and Adjusted EBITDA to $86.6 million. Liquid Assets reached $170.8 million, including finished inventory of roughly 731,939 oz silver and 2,585 oz gold, later sold for $56.3 million. Consolidated Q2 production was 25,388 GEOs, up ~4% year-over-year, and 52,730 GEOs YTD, up ~15%. The company reduced its revolving credit facility balance to $14.5 million, launched a normal course issuer bid, repurchased about 2.1 million shares, and continues to target a New York Stock Exchange listing in 2026.
Positive
- YTD 2026 revenue rose ~70% year-over-year to $230.8 million
- Liquid Assets increased to $170.8 million, including finished metal inventory, with cash and equivalents of $52.2 million
- YTD income from operations grew to $76.3 million from $43.5 million in YTD 2025
- YTD Adjusted EBITDA increased to $86.6 million from $50.8 million year-over-year
- Gold equivalent production reached 52,730 ounces YTD 2026, about 15% above YTD 2025
- Deferred metal inventory sale after quarter-end generated approximately $56.3 million in gross proceeds
- Revolving credit facility balance was reduced by $15.5 million to $14.5 million as of June 30, 2026
- Normal course issuer bid saw 2,096,330 shares repurchased for about C$12.7 million, all to be cancelled
Negative
- Q2 2026 revenue declined to $67.6 million from $73.7 million in Q2 2025
- Q2 2026 net result was a loss of $14.0 million versus net income of $17.4 million in Q2 2025
- Free cash flow was an outflow of $55.5 million in Q2 2026 versus an inflow of $12.3 million in Q2 2025
- Net cash from operating activities was a use of $50.9 million versus $20.3 million provided in Q2 2025
- San Bartolome gross margin ratio fell to 33.31% in Q2 2026 from 45.89% in Q2 2025
- Golden Queen AISC increased to $2,159/oz in Q2 2026 from $2,049/oz in Q2 2025
News Explained
Deferred metal was sold, but its revenue and margin will be recognized in the September 30 quarter; the share-buyback authorization remains capped.
Andean Precious Metals reports that the finished metal inventory deferred at June 30 was sold after quarter-end; the related revenue and margin move into the results for the three months ending
The inventory comprised approximately
The normal course issuer bid remains authorized for up to
AI-generated analysis. How Rhea-AI works. Not financial advice.
Year-to-Date Revenue Up
(All amounts in U.S. dollars unless otherwise indicated)
Toronto, Ontario--(Newsfile Corp. - August 11, 2026) - Andean Precious Metals Corp. (TSX: APM) (OTCQX: ANPMF) ("Andean" or the "Company") is pleased to report its financial results for the three and six months ended June 30, 2026. This news release should be read together with Andean's management's discussion and analysis ("MD&A") and condensed interim consolidated financial statements for the three and six months ended June 30, 2026 (the "Financial Statements") which are available under the Company's profile on SEDAR+ (www.sedarplus.ca).
Alberto Morales, Executive Chairman and CEO stated: "The second quarter was defined by our decision to defer the sale of a significant portion of our production for strategic treasury management purposes. We ended the quarter with finished inventory of approximately 732,000 ounces of silver and 2,585 ounces of gold, carried at a cost of
Subsequent to June 30, 2026, we sold the deferred finished inventory at weighted average realized prices of
Operationally, San Bartolome delivered another strong quarter, with silver equivalent production up
We reiterate our full-year 2026 production, cost and margin guidance and, even with the elevated price of diesel, we continue to expect to deliver within these ranges, supported by disciplined execution and our focus on free cash flow generation. Bolivia's transition to a flexible exchange-rate regime is indicative of a more market-focused economy, and the continued depreciation of the boliviano against the U.S. dollar, our reporting currency, is currently working in our favour.
Importantly, we strengthened our balance sheet by increasing our total assets and our total equity while also reducing our total liabilities reflecting a
During and subsequent to the quarter, we also advanced key corporate initiatives, including the relaunch of a normal course issuer bid, the election of Stephen Altmann to our Board of Directors, and continued progress toward our listing on the New York Stock Exchange, which we expect to be effective in 2026. We also look forward to the release of the updated technical report at Golden Queen, which we expect to announce in late September 2026 and believe will further enhance the Company's visibility and profile with the global investment community. Together with the appointment of Victor Flores to lead exploration, operations and growth, these steps position the Company well to continue executing on our strategy and delivering long-term value to shareholders."
Second Quarter 2026 Highlights:
- Liquid Assets1, ended Q2 2026 with
$170.8 million , compared to$90.5 million in Q2 2025. Effective Q2 2026, Liquid Assets includes metal at third-party refineries and doré inventory, measured at cost, which includes the finished inventory subject to the Company's strategic sales deferral.6 Cash and cash equivalents were$52.2 million as at June 30, 2026 (June 30, 2025:$36.1 million ).
- The Company continued to strengthen its balance sheet, repaying
$15.0 million on its Revolving Credit Facility during the quarter and reducing the outstanding balance to$14.5 million as at June 30, 2026, from$30.0 million as at December 31, 2025. Accounts payable were also reduced during the quarter. Total liabilities decreased to$152.0 million while total equity increased to$301.3 million .
- Consolidated Q2 production of 25,388 gold equivalent ounces2, an increase of approximately
4% over Q2 2025; YTD 2026 production of 52,730 gold equivalent ounces2 represents an increase of approximately15% over YTD 2025.
- Consolidated revenue of
$67.6 million , with60% derived from silver and40% from gold, compared to$73.7 million in Q2 2025, as the deferral of silver and gold sales was significantly offset by higher realized prices. YTD 2026 revenue increased approximately70% year-over-year to$230.8 million . Average realized gold price1 of$4,453 /oz and an average realized silver price1 of$76.82 /oz, an increase of approximately34% and124% , respectively, over Q2 2025.
- Strategic deferral of metal sales for treasury management purposes, resulting in finished inventory of approximately 731,939 ounces of silver and 2,585 ounces of gold at quarter-end. Consolidated gold equivalent ounce ("GEO")2 sales of 12,314 ounces represented approximately
49% of GEO production for the quarter; as this inventory was measured at cost, the margin on these ounces was not reflected in Q2 2026 results and will be recognized in the third quarter of 2026 following the sale of the deferred inventory subsequent to quarter-end (see below); reported financial metrics for the quarter do not fully reflect the Company's underlying operating performance.
- Gross Operating Income of
$23.6 million , compared to$29.4 million in Q2 2025, as lower sales volumes resulting from the strategic sales deferral was significantly offset by higher realized prices. YTD 2026 gross operating income increased to$99.1 million from$52.4 million .
- Income from Operations of
$10.9 million in Q2 2026, compared to$24.5 million in Q2 2025, mainly due to lower gross operating income as noted above, as well as higher exploration and share-based compensation expenditures. YTD 2026 income from operations increased to$76.3 million from$43.5 million .
- Adjusted EBITDA1 of
$15.7 million in Q2 2026, versus$28.9 million in Q2 2025; YTD 2026 Adjusted EBITDA of$86.6 million versus$50.8 million YTD 2025.
- Net Loss and Net Loss per Share of
$14.0 million and$0.09 (basic and diluted basis), respectively, primarily reflecting the deferral of silver and gold sales, a decrease in the fair value of marketable securities and a foreign exchange loss; YTD 2026 net income and net income per share of$34.2 million and$0.22 (diluted basis), respectively.
- Free cash flow1 was an outflow of
$55.5 million compared to an inflow of$12.3 million in Q2 2025, primarily due to the build-up of finished inventory resulting from the sales deferral, partially offset by lower capital expenditures. With the sale of the deferred inventory subsequent to quarter-end, the increase in free cash flow will be reflected in the Company's third-quarter results. Net cash used in operating activities, the most directly comparable IFRS measure, was$50.9 million for Q2 2026 (Q2 2025:$20.3 million provided).
- Subsequent to June 30, 2026, the Company sold the finished metal inventory held at third-party refineries at quarter-end, comprising approximately 731,939 ounces of silver and 2,585 ounces of gold, at weighted average realized prices of
$62.26 per silver ounce and$4,168 per gold ounce, for gross proceeds of approximately$56.3 million . This inventory was carried at a cost of$37.6 million as at June 30, 2026, and the related revenue will be recognized in the Company's results for the three months ending September 30, 2026.
Golden Queen Results:
- Golden Queen produced 8,568 gold equivalent ounces2 in Q2 2026, comprising 7,792 oz of gold and 66,024 oz of silver, with the decrease over the prior-year period primarily due to mine sequencing and grade timing.
- Golden Queen OCC1 of
$1,779 /oz and AISC1 of$2,159 /oz for Q2 2026; YTD 2026 AISC of$1,970 /oz remains within the Company's full-year guidance range. Golden Queen cost of sales, the most directly comparable IFRS measure, was$15.8 million for Q2 2026 (Q2 2025:$21.6 million ).
San Bartolome Results:
- San Bartolome produced 16,820 gold equivalent ounces2 in Q2 2026, comprising 1.32 Moz of silver and 1,312 oz of gold, an increase of
31% in silver equivalent production over Q2 2025.
- Cash Gross Operating Margin ("CGOM")1 of
$25.56 per silver equivalent ounce sold and a Gross Margin Ratio ("GMR")1 of33.31% for Q2 2026. The decrease in GMR from Q2 2025 primarily reflects higher ore purchase costs linked to the spot price of silver, partially offset by higher average realized silver prices. San Bartolome cost of sales, the most directly comparable IFRS measure, was$23.6 million for Q2 2026 (Q2 2025:$18.7 million ).
Corporate Updates:
- Effective April 20, 2026, Victor Flores was appointed Senior Vice President, Exploration, Operations and Growth. Mr. Flores brings over 35 years of experience across geology, mine development, operations, and investments, and has held senior leadership positions at Orion Resource Partners, Paulson & Co., and HSBC.
- On June 28, 2026, the Company announced that the Toronto Stock Exchange had accepted its notice of intention to make a normal course issuer bid ("NCIB"). Under the NCIB, the Company may purchase up to 4,000,000 common shares, representing approximately
2.65% of its issued and outstanding common shares, during the 12-month period commencing July 2, 2026 and ending no later than July 1, 2027. Subsequent to quarter-end, the Company purchased 2,096,330 common shares at a weighted average price of C$6.04 per share, for total consideration of approximately C$12.7 million . All shares purchased under the NCIB have been, or will be, cancelled.
- On June 30, 2026, at the Company's Annual General Meeting of Shareholders, Stephen J. Altmann was elected to the Board of Directors as an independent director. Mr. Altmann is a senior mining executive, investment banker and public company director with more than 30 years of experience in the mining sector. Shareholders also approved the appointment of Ernst & Young LLP as the Company's auditors, replacing KPMG LLP.
- The Company continues to progress its listing on the New York Stock Exchange. The Company expects its common shares to commence trading on the NYSE in 2026, under a new ticker symbol to be announced, subject to the satisfaction of customary listing conditions and completion of remaining regulatory steps. The Company's common shares will continue to trade on the TSX under the symbol "APM."
- The Company is advancing the release of an updated technical report for the Golden Queen mine, which it expects to announce by news release in late September 2026, with the technical report to be filed on SEDAR+ thereafter.
CONSOLIDATED FINANCIAL HIGHLIGHTS
| (In thousands of US dollars, except for net income per share metrics) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 | ||||||||
| Silver revenue | 40,254 | 35,930 | 144,962 | 68,747 | ||||||||
| Gold revenue | 27,383 | 37,809 | 85,795 | 66,970 | ||||||||
| Total Revenue | 67,637 | 73,739 | 230,757 | 135,717 | ||||||||
| 23,564 | 29,381 | 99,136 | 52,404 | |||||||||
| Gross operating income | ||||||||||||
| Income from operations | 10,911 | 24,538 | 76,290 | 43,460 | ||||||||
| (14,012) | 17,413 | 34,234 | 32,021 | |||||||||
| Net income (loss) | ||||||||||||
| Net income (loss) per share | ||||||||||||
| -Basic | (0.09) | 0.12 | 0.23 | 0.22 | ||||||||
| -Diluted | (0.09) | 0.12 | 0.22 | 0.21 | ||||||||
| 15,657 | 28,895 | 86,612 | 50,833 | |||||||||
| Adjusted EBITDA 1 | ||||||||||||
| 4,617 | 9,043 | 8,762 | 17,596 | |||||||||
| CAPEX 1,3 | ||||||||||||
| (55,508) | 12,265 | (15,958) | 10,727 | |||||||||
| Free cash flow 1 | ||||||||||||
| 52,237 | 36,073 | 52,237 | 36,073 | |||||||||
| Cash and cash equivalents | ||||||||||||
| Liquid Assets1,5,6 | 170,771 | 90,537 | 170,771 | 90,537 |
CONSOLIDATED OPERATING HIGHLIGHTS
| Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 | |||||||||
| Gold ounces (Au, Oz) | ||||||||||||
| Produced | 9,102 | 11,946 | 21,091 | 23,024 | ||||||||
| Sold | 6,149 | 11,403 | 18,179 | 22,227 | ||||||||
| Average realized gold price ($/oz) 1 | 4,453 | 3,316 | 4,719 | 3,013 | ||||||||
| Silver ounces (Ag, K-Oz) | ||||||||||||
| Produced | 1,384 | 1,115 | 2,689 | 2,041 | ||||||||
| Sold | 524 | 1,046 | 1,841 | 2,074 | ||||||||
| Average realized silver price ($/oz) 1 | 76.82 | 34.36 | 78.73 | 33.14 | ||||||||
| Gold equivalent ounces (Au Eq, Oz) 2 | ||||||||||||
| Produced | 25,388 | 24,340 | 52,730 | 45,701 | ||||||||
| Sold | 12,314 | 23,024 | 39,841 | 45,275 | ||||||||
| Golden Queen | ||||||||||||
| OCC ($ / Gold Ounces Sold)1,4 | 1,779 | 1,717 | 1,664 | 1,593 | ||||||||
| AISC ($ / Gold Ounces Sold) 1,4 | 2,159 | 2,049 | 1,970 | 2,058 | ||||||||
| San Bartolome | ||||||||||||
| CGOM ($ / Silver Equivalent Ounces Sold)1,4 | 25.56 | 15.79 | 33.47 | 14.62 | ||||||||
| GMR / Silver Equivalent Ounces Sold (%)1,4 | 33.31 | 45.89 | 42.32 | 44.08 |
Q2 2026 Conference Call and Webcast
Wednesday, August 12, at 9:00 AM ET
Participants may listen to the webcast by registering via the following link https://www.gowebcasting.com/14762
Participants may also listen to the conference call by calling North American toll free 1-800-715-9871, or 1-647-932-3411 outside the U.S. or Canada, and quoting Conference ID 8567391.
An archived replay of the webcast will be available for 90 days at: https://www.gowebcasting.com/14762 or the Company website at www.andeanpm.com.
About Andean Precious Metals
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.
Qualified Person Statement
The scientific and technical content disclosed in this news release was reviewed and approved by Donald J. Birak, Independent Consulting Geologist to the Company, a Qualified Person as defined by National Instrument 43-101 - Standards for Disclosure for Mineral Projects, Registered Member, Society for Mining, Metallurgy and Exploration (SME), Fellow, Australasian Institute of Mining and Metallurgy (AusIMM).
For more information, please contact:
Dom Kizek
Vice President, Finance & Corporate Controller
dkizek@andeanpm.com
T: +1 416 565 9723
Caution Regarding Forward-Looking Statements
Certain statements and information in this release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which we refer to collectively as "forward-looking statements". Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this release include, but are not limited to, statements and information regarding: the Company's production guidance and expectations for sustaining and growth capital expenditures; expectations regarding production costs, exchange rates and commodity prices; the recognition in the third quarter of 2026 of revenue from the sale of the finished inventory that was subject to the Company's strategic sales deferral, including the final settlement of the sale and the expected recovery of free cash flow; the Company's ability to generate free cash flow and maintain strong liquidity; the intended use of available liquidity to fund growth initiatives, advance exploration and evaluate strategic opportunities; the Company's ability to execute its business strategy and deliver long-term value to shareholders; the advancement of exploration, development and growth opportunities; the expected timing of the release and filing of an updated technical report for the Golden Queen mine; potential purchases of common shares under the Company's normal course issuer bid; and the potential listing of the Company's common shares on the NYSE, including the timing, approval and expected benefits thereof.
Forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the Company's ability to carry on exploration and development activities; the Company's ability to execute its strategic initiatives and growth plans; the Company's ability to secure and meet obligations under property and option agreements and other material agreements; the timely receipt of required regulatory approvals and permits including in connection with a potential listing on the NYSE; that there is no material adverse change affecting the Company or its properties, and that the Company's assets continue to operate consistent with expectations; that contracted parties provide goods and services in a timely manner; that no unusual geological or technical problems occur; that plant and equipment function as anticipated; the availability of labour and key personnel; and that there are no material adverse changes in commodity prices, foreign exchange rates, inflationary pressures (including diesel and energy costs), or general economic conditions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation: risks relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies; risks that exploration, development or mining results will not be consistent with the Company's expectations; risks relating to variations in reserves, resources, grades, planned mining dilution, ore loss or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated operational difficulties; risks relating to delays in exploration, development, permitting or construction activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price volatility and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to inflation and increases in input costs, including fuel, energy and consumables; risks related to the Company's ability to maintain liquidity and effectively allocate capital; risks associated with capital markets conditions and the Company's ability to obtain adequate financing on a timely basis and on acceptable terms; risks relating to delays in the completion of development or construction activities, or in obtaining local community, governmental or regulatory approvals, including in connection with a potential listing on the NYSE; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the global economic environment; risks related to the timing and prices at which the finished inventory subject to the Company's sales deferral is ultimately sold, including the risk that such sales do not occur within the currently expected timeframe; risks related to the volatility of the Bolivian boliviano under the flexible exchange-rate regime; and other risk factors described in the Company's annual information form for the year ended December 31, 2025, and its MD&A for the three and six months ended June 30, 2026.
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and undue reliance should not be placed on forward-looking statements. The forward-looking statements contained in this release are made as of the date of this release, and the Company undertakes no obligation to update or revise any forward-looking statements included in this release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
NON-GAAP FINANCIAL MEASURES, RATIOS, AND SUPPLEMENTARY FINANCIAL MEASURES
This news release includes "specified financial measures" within the meaning of National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"), specifically the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of these measures assists analysts, investors and other stakeholders of the Company in understanding the costs associated with producing silver and gold, understanding the economics of silver and gold mining, assessing operating performance, the Company's ability to generate free cash flow from current operations, and for planning and forecasting of future periods.
The specified financial measures used in this news release do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even as compared to other issuers who may be applying the World Gold Council ("WGC") guidelines. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Operating Cash Costs
OCC includes total production cash costs incurred at the Company's mining operations, which form the basis of the Company's cash costs, less by-product revenue.
Beginning in 2025 with impact on prior-year comparative periods, the Company reclassed mine-site general and administrative expenses to operating expenses which has a corresponding impact on the calculation of OCC.
The following table provides a reconciliation of the OCC per ounce sold on a by-product basis to the Financial Statements:
| Golden Queen | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Costs of sales, as reported | 15,781 | 21,617 | 36,695 | 38,695 | ||||||||
| Less: by-product silver credits | (4,840 | ) | (2,948 | ) | (9,218 | ) | (5,395 | ) | ||||
| Total OCC | 10,941 | 18,669 | 27,478 | 33,299 | ||||||||
| Divided by Au ounces sold | 6,149 | 10,871 | 16,510 | 20,900 | ||||||||
| OCC ($ / Au ounces sold) 4,5 | 1,779 | 1,717 | 1,664 | 1,593 | ||||||||
| Consolidated | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Costs of sales, as reported | 39,398 | 40,356 | 121,464 | 76,336 | ||||||||
| Less: by-product silver credits | (40,254 | ) | (35,931 | ) | (144,962 | ) | (68,747 | ) | ||||
| Total OCC | (856 | ) | 4,425 | (23,498 | ) | 7,589 | ||||||
| Divided by Au ounces sold | 6,149 | 11,403 | 18,179 | 22,227 | ||||||||
| OCC ($ / Au ounces sold) 4,5 | (139 | ) | 388 | (1,293 | ) | 341 | ||||||
All-in Sustaining Costs
AISC on a by-product basis per ounce is a non-GAAP ratio calculated as AISC on a by-product basis divided by ounces of gold sold. AISC on a by-product basis is a non-GAAP financial measure calculated as the aggregate of production costs as recorded in the consolidated statements of income (loss), refining and transport costs, cash component of sustaining capital expenditures, lease payments related to sustaining assets, corporate general and administrative expenses and accretion expenses. When calculating AISC on a by-product basis, all revenue received from the sale silver at Golden Queen are treated as a reduction of costs incurred. The Company believes that AISC represents the total costs of producing gold from current operations and provides the Company and other stakeholders of the Company with additional information relating to the Company's operational performance and ability to generate cash flow.
The following table provides a reconciliation of the AISC per ounce sold on a by-product basis to the Financial Statements:
| Golden Queen | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| OCC, net of by-product credits | 10,941 | 18,669 | 27,478 | 33,299 | ||||||||
| Sustaining capital expenditures | 2,225 | 3,488 | 4,837 | 9,485 | ||||||||
| Accretion for decommissioning liability | 108 | 114 | 216 | 222 | ||||||||
| Total all in sustaining cost | 13,275 | 22,271 | 32,531 | 43,006 | ||||||||
| Divided by Au ounces sold | 6,149 | 10,871 | 16,510 | 20,900 | ||||||||
| AISC ($ / Au ounces sold) 4 | 2,159 | 2,049 | 1,970 | 2,058 | ||||||||
| Consolidated | Three months ended June 30, | Six months ended June 30, | ||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||
| OCC, net of by-product credits | (856) | 4,425 | (23,498 | ) | 7,589 | |||||
| General and administration corporate allocation | 6,859 | 4,037 | 12,919 | 7,116 | ||||||
| Sustaining capital expenditures | 2,915 | 4,172 | 6,448 | 10,358 | ||||||
| Accretion for decommissioning liability | 374 | 315 | 738 | 637 | ||||||
| Total all in sustaining cost | 9,293 | 12,950 | (3,393 | ) | 25,700 | |||||
| Divided by Au ounces sold | 6,149 | 11,403 | 18,179 | 22,227 | ||||||
| AISC ($ / Au ounces sold) 4 | 1,511 | 1,136 | (187 | ) | 1,156 | |||||
Cash Gross Operating Margin
CGOM per silver equivalent ounce sold is calculated by subtracting the average cash cost of sale (operating expenses and business unit general and administration cost) per equivalent ounce sold from the average selling price per equivalent ounce. It is a measure of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers.
The following table provides a reconciliation of the CGOM per ounce to the Financial Statements and the most directly comparable IFRS measure:
| San Bartolome | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Costs of sales, as reported | 23,617 | 18,740 | 84,769 | 37,641 | ||||||||
| Divided by AgEq ounces sold (koz) | 462 | 1,006 | 1,858 | 2,030 | ||||||||
| Gross operating cost per AgEq ounce sold | 51.16 | 18.62 | 45.61 | 18.55 | ||||||||
| Average realized silver price per oz | 76.72 | 34.41 | 79.08 | 33.16 | ||||||||
| CGOM ($ / Silver Equivalent Ounces Sold) 4 | 25.56 | 15.79 | 33.47 | 14.62 | ||||||||
Gross Margin Ratio
GMR is calculated by subtracting the cost of sale as reported in the income statement from the revenue of equivalent ounces divided by revenue from sales of silver equivalent ounces. GMR is a measure of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers.
Beginning in 2025 with impact on prior-year comparative periods, the Company reclassed mine-site general and administrative expenses to cost of sales which has a corresponding impact on the calculation of GMR.
The following table provides a reconciliation of the GMR per ounce to the most directly comparable IFRS measure:
| San Bartolome | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Costs of sales, as reported | 23,617 | 18,740 | 84,769 | 37,641 | ||||||||
| Divided by AgEq ounces sold (koz) | 462 | 1,006 | 1,858 | 2,030 | ||||||||
| Costs of sales per AgEq oz sold | 51.16 | 18.62 | 45.61 | 18.55 | ||||||||
| Average realized silver price per oz | 76.72 | 34.41 | 79.08 | 33.16 | ||||||||
| GM per AgEq oz sold | 25.56 | 15.79 | 33.47 | 14.62 | ||||||||
| GMR per Silver Equivalent Ounces Sold (%) | 33.31 | 45.89 | 42.32 | 44.08 | ||||||||
Free Cash Flow
The Company has included free cash flow as a non-GAAP financial measure in this news release. The Company considers net cash provided from operating activities, less capital expenditures on property, plant and equipment, to be a measure that allows the Company and investors to evaluate the ability of the Company to generate cash flow. Accordingly, free cash flow is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The following table provides a reconciliation of free cash flow to the Financial Statements:
| Consolidated | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net cash provided from (used in) operating activities | (50,891 | ) | 20,260 | (7,196 | ) | 27,275 | ||||||
| Less: Capital Expenditures on property, plant and equipment | (4,618 | ) | (7,995 | ) | (8,762 | ) | (16,548 | ) | ||||
| Free cash flow | (55,509 | ) | 12,265 | (15,958 | ) | 10,727 | ||||||
Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP financial measure calculated by adjusting net income (loss) as recorded in the condensed interim consolidated statements of income (loss) for items not associated with ongoing operations. The Company believes that this generally accepted industry measure allows the evaluation of the results of income-generating capabilities and is useful in making comparisons between periods. This measure adjusts for the impact of items not associated with ongoing operations. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to the Financial Statements:
| Consolidated | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net income (loss) | (14,012 | ) | 17,413 | 34,234 | 32,021 | |||||||
| Add: | ||||||||||||
| Income taxes | 9,558 | 10,278 | 24,348 | 12,427 | ||||||||
| Finance costs | 1,338 | 1,180 | 2,796 | 2,867 | ||||||||
| Depreciation and depletion | 4,675 | 4,002 | 10,157 | 6,977 | ||||||||
| EBITDA | 1,559 | 32,873 | 71,535 | 54,292 | ||||||||
| Corporate development expenses | 71 | 355 | 165 | 396 | ||||||||
| Other losses (gains) | 10,374 | (8,743 | ) | 13,164 | (13,626 | ) | ||||||
| Foreign Exchange loss (gain) | 3,653 | 4,410 | 1,748 | 9,771 | ||||||||
| Adjusted EBITDA | 15,657 | 28,895 | 86,612 | 50,833 | ||||||||
Average Realized Gold and Silver Prices Per Ounce
The Company has included average realized prices as a supplementary non-GAAP financial measure in this news release. The Company quantifies average realized price per ounce as revenue per the Statement of Income (loss), bifurcated by gold or silver revenue and divided by ounces of gold or silver sold, respectively. Management uses this measure to monitor sales of silver and gold ounces against the average market silver and gold prices.
The following table provides a reconciliation of average realized prices to the most directly comparable IFRS measure:
| Consolidated | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Gold revenue | 27,383 | 37,808 | 85,795 | 66,970 | ||||||||
| Divided by gold sold (oz) | 6,149 | 11,403 | 18,179 | 22,227 | ||||||||
| Average realized gold price per oz | 4,453 | 3,316 | 4,719 | 3,013 | ||||||||
| Silver revenue | 40,254 | 35,931 | 144,962 | 68,747 | ||||||||
| Divided by silver sold (k oz) | 524 | 1,046 | 1,841 | 2,074 | ||||||||
| Average realized silver price per oz | 76.82 | 34.36 | 78.73 | 33.14 | ||||||||
Liquid Assets
The Company believes this non-GAAP financial performance measure provides further transparency and assists analysts, investors, and other stakeholders of the Company in assessing the Company's financial position.
The following table provides a reconciliation of this non-GAAP financial metric to the Financial Statements:
| Consolidated | Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Cash and cash equivalents | 52,237 | 36,073 | 52,237 | 36,073 | ||||||||
| Add: Marketable securities and other investments | 40,599 | 51,221 | 40,599 | 51,221 | ||||||||
| Add: Long-term marketable securities and other investments | 23,914 | - | 23,914 | - | ||||||||
| Add: Metal at third-party refinery inventory | 37,632 | 219 | 37,632 | 219 | ||||||||
| Add: Doré inventory | 16,389 | 3,024 | 16,389 | 3,024 | ||||||||
| Liquid assets 5,6 | 170,771 | 90,537 | 170,771 | 90,537 | ||||||||
CAPEX
The Company believes this non-GAAP financial performance measure provides further transparency and assists analysts, investors, and other stakeholders of the Company in assessing the Company's all-in cost of production costs which includes capital expenditures.
| Consolidated | Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in thousands of US dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||
| San Bartolome sustaining capital | 679 | 684 | 1,600 | 873 | |||||||||
| San Bartolome growth capital | 228 | 288 | 457 | 400 | |||||||||
| Golden Queen sustaining capital | 2,225 | 3,488 | 4,837 | 9,485 | |||||||||
| Golden Queen growth capital | 1,484 | 3,740 | 1,857 | 6,838 | |||||||||
| Corporate sustaining capital | - | - | 11 | - | |||||||||
| Expenditures on property, plant, and equipment per consolidated statement of cash flows | 4,617 | 9,043 | 8,762 | 17,596 | |||||||||
ENDNOTES
(1) Average realized gold price, average realized silver price, OCC, AISC, CGOM, GMR, Free Cash Flow, EBITDA, Adjusted EBITDA, Liquid Assets, and CAPEX are non-IFRS financial performance measures with no standardized definition under IFRS and may not be comparable to similar measures disclosed by other issuers. Refer to the "Non-IFRS Financial Measures, Ratios and Supplementary Financial Measures" section of this news release for further information, including a reconciliation of these measures to the Company's financial statements.
(2) Effective January 1, 2025, gold equivalent ounces are calculated by applying the ratio of the prevailing silver price to the prevailing gold price to silver ounces produced or sold in the applicable period. For 2025, the Company applied a conversion factor of 90. For 2026, the Company has updated its conversion factor to 85, reflecting current market price assumptions. This change has been applied on a prospective basis.
(3) Effective Q3 2025, the Company revised its methodology for reporting CAPEX to a cash flow basis, consistent with expenditures on property, plant and equipment as reported in the statement of cash flows. This change aligns the Company's CAPEX reporting with industry practice and peer disclosure and has been applied retrospectively to all prior-period comparative figures.
(4) Effective January 1, 2026, the Company has revised its methodology for calculating mine site operating income, OCC, AISC, and CGOM on a retrospective basis to exclude the allocation of corporate general and administrative expenses from these metrics. Management believes this change better reflects the operating cost performance of each mine site on a standalone basis and improves comparability with industry peers. Prior period figures have been restated to conform with the current presentation. In addition, the Company now separately discloses a consolidated OCC and AISC metric that includes corporate G&A costs, providing investors with a consolidated view of the Company's cost structure on a per-ounce basis. Readers are encouraged to refer to both the site-level and consolidated metrics when evaluating the Company's overall cost performance. See the "Non-GAAP Financial Measures" section of this news release for further detail on the calculation and reconciliation of these metrics.
(5) In 2025, the Company's revolving line of credit represented a back-to-back facility secured by, and linked to, the Company's cash and investments. As a result, in periods where amounts were drawn, the outstanding balance was deducted from Liquid Assets in the reconciliation, as the facility did not represent incremental liquidity available to the Company. Beginning in 2026, the Company's Revolving Credit Facility operates on a standalone basis, unlinked to any cash or investment balances. Accordingly, no deduction has been applied, and the full value of the components presented in the reconciliation is reflected in the Liquid Assets measure.
(6) Effective Q2 2026, the Company revised the composition of its Liquid Assets non-GAAP measure to include metal held at third-party refineries and doré inventory, as reported in the Company's Financial Statements and the notes thereto. These inventories are measured at cost and are readily convertible into cash, and management believes their inclusion provides a more complete measure of the liquid resources available to the Company, including the finished inventory subject to the Company's strategic sales deferral. As this inventory is measured at cost, the Liquid Assets measure does not reflect the margin expected to be realized upon the eventual sale of this inventory. This change has been applied on a retrospective basis.
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