Andean Precious Metals Corp.

Reported Q2 revenue was $67.6 million versus $73.7 million in Q2 2025, down about 8%. Gross operating income was $23.6 million versus $29.4 million last year, adjusted EBITDA was $15.7 million versus $28.9 million, and the company posted a net loss of $14 million, or $0.09 per share. Q2 average realized prices were $4,453 per gold ounce and $76.82 per silver ounce, up about 34% and 124% year over year, respectively. Consolidated production was 25,388 gold equivalent ounces, up about 4% year over year, while year-to-date production was 52,730 ounces, up about 15%. On a year-to-date basis, revenue increased about 70% to $230.8 million, adjusted EBITDA rose to $86.6 million, and net income was $34.2 million, or $0.22 per diluted share. Looking ahead, management reiterated full-year 2026 production, cost and margin guidance, said Golden Queen year-to-date all-in sustaining cost of $1,970 per ounce remains within its $1,850 to $2,150 range, and noted the deferred inventory was sold after quarter end for approximately $56.3 million at prices above quarter-end levels.

Alberto Morales framed Q2 as an unusual quarter driven by a deliberate decision to defer metal sales for treasury management, arguing that the company monetized those ounces later at better prices. He emphasized that operating performance remained strong, especially at San Bartolome, and pointed to a stronger second-half production profile, continued balance-sheet strength, and upcoming catalysts such as the NYSE listing and Golden Queen technical report. His tone was confident and matter-of-fact, with repeated emphasis that the strategy was designed to maximize value for the company.

Juan Sandoval highlighted that San Bartolome production rose to about 16,820 gold equivalent ounces, with silver equivalent output up 31% and cash gross operating margin improving to $25.56 per silver equivalent ounce sold from $15.79 a year ago. At Golden Queen, he noted lower production from mine sequencing and grade timing, with revenue of about $32 million, operating cash costs of $1,779 per ounce sold, and all-in sustaining cost of $2,159 per ounce sold; year-to-date AISC was $1,970 and within guidance. He also said free cash flow was an outflow of $55.5 million in Q2 and $16 million year to date because of finished inventory buildup and a $15 million revolver paydown, while the balance sheet ended with just under $171 million in liquid assets, about $52 million in cash, and total debt of about $30 million including equipment financing.

Analysts focused on whether the NCIB could be expanded, what changes to expect in the upcoming Golden Queen technical report, the production cadence needed to hit full-year guidance, and whether the sales-deferral strategy might be repeated. Management said the NCIB authorization is for up to 4 million shares and only about half has been executed so far, with future repurchases dependent on market conditions. They said the Golden Queen technical report should be released around Sept. 30, likely extending mine life to about 2035, and reiterated that full-year guidance remains intact with most Golden Queen capex concentrated in Q3 and Q4.