Q4 2025 Andean Precious Metals Corp Earnings Call

March 25, 2026

Operator: At this time, I would like to welcome everyone to the Andean Precious Metals Q4 and Year-End Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Amanda Mallough, Director of Investor Relations. You may begin.

Speaker #2: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad.

Speaker #2: If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Amanda Malo, Director of Investor Relations.

Speaker #2: You may begin. Thank you. Good morning, everyone, and thank you for joining Andean Precious Metals' conference call to discuss our financial and operating results for the three and twelve months ended December 31, 2025.

Amanda Mallough: Thank you. Good morning, everyone, and thank you for joining Andean Precious Metals conference call to discuss our financial and operating results for the three and twelve months ended December 31, 2025. Our press release, MD&A, and financial statements are available on SEDAR+ and on our corporate website at andeanpm.com. Before we begin, I would like to remind listeners that today's discussion will include forward-looking statements. Please refer to our cautionary language in our filing. Joining me on the call today are Alberto Morales, Executive Chairman and CEO, Yohann Bouchard, our President, Juan Carlos Sandoval, our Chief Financial Officer, and Dom Kizek, our Vice President of Finance and Corporate Controller. Following prepared remarks, we will open the line for questions. With that, I'll now turn the call over to Alberto.

Amanda Mallough: Thank you. Good morning, everyone, and thank you for joining Andean Precious Metals conference call to discuss our financial and operating results for the three and 12 months ended December 31, 2025. Our press release, MD&A, and financial statements are available on SEDAR+ and on our corporate website at andeanpm.com. Before we begin, I would like to remind listeners that today's discussion will include forward-looking statements. Please refer to our cautionary language in our filing. Joining me on the call today are Alberto Morales, Executive Chairman and CEO, Johan Bouchard, our President, Juan Carlos Sandoval, our Chief Financial Officer, and Dom Kizek, our Vice President of Finance and Corporate Controller. Following prepared remarks, we will open the line for questions. With that, I'll now turn the call over to Alberto.

Speaker #2: Our press release MDNA and financial statements are available on Cedar Plus and on our corporate website at andeanpm.com. Before we begin, I would like to remind listeners that today's discussion will include forward-looking statements.

Speaker #2: Please refer to our cautionary language in our filings. Joining me on the call today are Alberto Morales, Executive Chairman and CEO; Yohann Bouchard, our President; Juan Carlos Sandoval, our Chief Financial Officer; and Dom Kizek, our Vice President of Finance and Corporate Controller.

Speaker #2: Following prepared remarks, we will open the line for questions, and with that, I'll now turn the call over to Alberto.

Speaker #3: Thank you, Amanda, and good morning, everyone. 2025 marked a step change for Andean where we deliver focused financial record financial results and fundamentally strengthen our balance sheet.

Alberto Morales: Thank you, Amanda, and good morning, everyone. 2025 marked a step change for Andean, where we deliver focused financial results and fundamentally strengthen our balance sheet. We achieved record revenue, adjusted EBITDA and net income, alongside with strong free cash flow generation, and exited the year with a record $167 million in liquid assets. This level of cash flow generation fundamentally changes our positioning as a company. We enter 2026 with a strong balance sheet and the financial flexibility to fund growth initiatives and evaluate opportunities to expand our asset base. Operationally, both assets contributed to this performance. At San Bartolomé, the operation delivered consistent production and strong margins, supported by efficient processing and strong silver prices. At Golden Queen, production strengthened into Q4, supporting higher consolidated gold production and contributing to our record financial results.

Alberto Morales: Thank you, Amanda, and good morning, everyone. 2025 marked a step change for Andean, where we deliver focused record financial results and fundamentally strengthen our balance sheet. We achieved record revenue, adjusted EBITDA, and net income, alongside with strong free cash flow generation, and exited the year with a record $167 million in liquid assets. This level of cash flow generation fundamentally changes our positioning as a company. We enter 2026 with a strong balance sheet and the financial flexibility to fund growth initiatives and evaluate opportunities to expand our asset base. Operationally, both assets contributed to this performance. At San Bartolomé, the operation delivered consistent production and strong margins, supported by efficient processing and strong silver prices. At Golden Queen, production strengthened into Q4, supporting higher consolidated gold production and contributing to our record financial results.

Speaker #3: We achieved record revenue, adjusted EBITDA, and net income, alongside strong free cash flow generation and exited the year with a record $167 million in liquid assets.

Speaker #3: This level of cash flow generation fundamentally changes our positioning as a company. We entered 2026 with a strong balance sheet and the financial flexibility to fund growth initiatives and evaluate opportunities to expand our asset base.

Speaker #3: Operationally, both assets contributed to this performance. At San Bartolomé, the operation delivered consistent production and strong margins, supported by efficient processing and strong silver prices.

Speaker #3: At Golden Queen, production strengthened into the fourth quarter, supporting higher consolidated gold production and contributing to our record financial results. For the year, we maintained a balanced production profile, with approximately 57% of revenue coming from silver and 43% from gold.

Alberto Morales: For the year, we maintained a balanced production profile, with approximately 57% of revenue coming from silver and 43% from gold. Looking ahead, we expect several important milestones in 2026, including our planned New York Stock Exchange listing and the updated technical report at Golden Queen. Overall, 2025 demonstrated the strength of our platform, a business capable of generating meaningful cash flow, maintaining strong margins, and positioning itself for the next phase of growth. With that, I will turn it over to Yohann.

Speaker #3: Looking ahead, we expect several important milestones in 2026, including our planned New York Stock Exchange listing and the updated technical report at Golden Queen.

Speaker #3: Overall, 2025 demonstrated the strength of our platform—a business capable of generating meaningful cash flow, maintaining strong margins, and positioning itself for the next phase of growth.

Speaker #3: With that, I will turn it over to Johan.

Speaker #4: Well, thank you, Alberto, and good morning, everyone. For the fourth quarter, Andean produced 27,777 gold equivalent ounces, bringing full-year production slightly below 100,000 gold equivalent ounces.

Yohann Bouchard: Well, thank you, Alberto, and good morning, everyone. For the Q4, Andean produced 27,777 gold equivalent ounces, bringing full-year production slightly below 100,000 gold equivalent ounces. While production finished near the low end of guidance, both operations delivered strong cost performance and margin generation, supporting record financial results. At San Bartolomé, the operation continued to perform consistently. For the year, the operation delivered 4.5 million ounces of silver, contributing to a total of gold equivalent production of 53,854 ounces. Operational performance remained strong for the full year, with cash gross operating margin of $16.11 per silver ounce and gross margin ratio of 42.75%. These results reflect continued efficiency in ore sourcing, stable throughput, and strong realized silver prices.

Yohann Bouchard: Well, thank you, Alberto, and good morning, everyone. For Q4, Andean produced 27,777 gold equivalent ounces, bringing full-year production slightly below 100,000 gold equivalent ounces. While production finished near the low end of guidance, both operations delivered strong cost performance and margin generation, supporting record financial results. At San Bartolomé, the operation continued to perform consistently. For the year, the operation delivered 4.5 million ounces of silver, contributing to a total of gold equivalent production of 53,854 ounces. Operational performance remained strong for the full year, with cash gross operating margin of $16.11 per silver ounce and gross margin ratio of 42.75%. These results reflect continued efficiency in ore sourcing, stable throughput, and strong realized silver prices.

Speaker #4: While production finished near the low end of guidance, both operation delivered strong cost performance and margin generation, supporting record financial results. At San Bartolomé, the operation continued to perform consistently.

Speaker #4: For the year, the operation delivered 4.5 million ounces of silver, contributing to a total of gold equivalent production of 53,854 ounces. Operational performance remained strong for the full year, with cash growth operating margin of $16.11 per silver ounce and gross margin ratio of 42.75%.

Speaker #4: These results reflect continued efficiency in ore sourcing, stable throughput, and strong realized silver prices. At Golden Queen, the operation produced 45,311 gold equivalent ounces in 2025, comprised of 41,627 ounces of gold and 331,000 silver ounces.

Yohann Bouchard: At Golden Queen, the operation produced 45,311 gold equivalent ounces in 2025, comprised of 41,627 ounces of gold and 331,000 silver ounces. Production improved into Q4, supporting stronger consolidated results. For the year, cash costs were $1,698 per gold ounce, and all-in sustaining costs was $2,194 per gold ounce. The operation continued to focus on optimizing stacking, blending, and recoveries, which are expected to support improved performance going forward. From an operational perspective, both assets are well-positioned heading into 2026 with stable production and strong margins.

Speaker #4: Production improved into the fourth quarter, supporting stronger consolidated results. For the year, cash costs were $1,698 per gold ounce, and all-in sustaining costs were $2,194 per gold ounce.

Speaker #4: The operation continued to focus on optimizing stacking, blending, and recoveries, which are expected to support improved performance going forward. From an operational perspective, both assets are well-positioned, adding into 2026 with stable production and strong margins.

Speaker #4: Production is expected to be weighted approximately 45% in the first half of the year and 55% in the second half, driven by mining sequence at Golden Queen and ore delivery timing at San Bartolomé.

Yohann Bouchard: Production is expected to be weighted approximately 45% in H1 and 55% in H2, driven by mining sequence at Golden Queen and ore delivery timing at San Bartolomé. With that, I will turn it over to JC.

Speaker #4: With that, I will turn it over to JC.

Speaker #2: Thank you, Johan, and good morning, everyone. From financial perspective, all key metrics. In the fourth quarter, we delivered strong results across the board, including revenue of $134 million and adjusted EBITDA of $47 million.

Juan Carlos Sandoval: Thank you, Yohann, and good morning, everyone. From a financial perspective, 2025 was a record year across all key metrics.

Juan Carlos Sandoval: In Q4, we delivered strong results across the board, including revenue of $134 million and adjusted EBITDA of $47 million. For the full year, revenue reached $359 million, adjusted EBITDA was $133 million, and net income was $118 million or $0.78 per share. Free Cash Flow totaled $36 million in Q4 and $59 million for the year, reflecting strong cash generation. Our balance sheet strengthened significantly over the year. Total assets increased to $434 million, while total liabilities declined to $170 million, reflecting debt repayment and strong cash generation. We ended the year with $167 million in liquid assets, a record for the company.

Juan Carlos Sandoval: In Q4, we delivered strong results across the board, including revenue of $134 million and adjusted EBITDA of $47 million. For the full year, revenue reached $359 million, adjusted EBITDA was $133 million, and net income was $118 million or $0.78 per share. Free cash flow totaled $36 million in Q4 and $59 million for the year, reflecting strong cash generation. Our balance sheet strengthened significantly over the year. Total assets increased to $434 million, while total liabilities declined to $170 million, reflecting debt repayment and strong cash generation. We ended the year with $167 million in liquid assets, a record for the company.

Speaker #2: For the full year, revenue reached $359 million, adjusted EBITDA was $133 million, and net income was $118 million, or 78 cents per share. Free cash flow totaled $36 million in the fourth quarter and $59 million for the year, reflecting strong cash generation.

Speaker #2: Our balance sheet strengthened significantly over the year. Total assets increased to $434 million, while total liabilities declined to $170 million, reflecting debt repayment and strong cash generation.

Speaker #2: We ended the year with $177 million in liquid assets, a record for the company. This was comprised of $79 million in cash and cash equivalents, $38 million in treasuries and money markets, and $49 million in strategic equity investments.

Juan Carlos Sandoval: This was comprised of $79 million in cash and cash equivalents, $38 million in treasuries and money markets, and $49 million in strategic equity investments. During the year, we fully repaid our legacy credit facilities and established a new $40 million revolving credit facility with National Bank, further enhancing our financial flexibility. This positions the company with strong liquidity and financial flexibility moving into 2026. With that, I'll turn it back to Yohann for an update on our exploration programs.

Speaker #2: During the year, we fully repaid our legacy credit facilities, and established a new $40 million revolving credit facility with National Bank, further enhancing our financial flexibility.

Speaker #2: This positions the company with strong liquidity and financial flexibility moving into 2026. With that, I'll turn it back to Johan for an update on our exploration programs.

Speaker #4: Well, thank you, JC. Our exploration programs are focused on extending mine life and supporting long-term production across both operations. At Golden Queen, exploration remained focused on expanding known mineralization and supporting mine life extension.

Yohann Bouchard: Oh, thank you, JC. Our exploration programs are focused on extending mine life and supporting long-term production across both operations. At Golden Queen, exploration remains focused on expanding known mineralization and supporting mine life expansion. In 2025, we completed 47 core drill holes aiming at extending the existing mineralized zone. While the drilling program met our expectations, turnaround times at the independent assay lab were longer than anticipated. Consequently, we have decided to postpone the release of the technical report by a few months to include this new information. Looking ahead to 2026, our primary objective is to advance infill drilling to convert inferred resources into the measured and indicated categories. Our second objective is to follow up on the zone drilled in 2025 with additional infill drilling, which is intended to further extend mineral reserves along the trend of the existing mining area.

Speaker #4: In 2025, we completed 47 core drill holes aiming at extending the existing mineralized zones. While the drilling program met our expectations, turnaround times at the independent assay lab were longer than anticipated.

Speaker #4: Consequently, we have decided to postpone the release of the technical report by a few months to include this new information. Looking ahead to 2026, our primary objective is to advance infield drilling to convert inferior resources into the measured and indicated categories.

Speaker #4: Our second objective is to follow up on the zone drilled in 2025 with additional infield drilling, which is intended to further extend mineral reserves along the trend of the existing mining areas.

Speaker #4: Postponing the release of the technical report by a few months ensured the market receives a clearer and more complete picture of the asset's long-term value.

Yohann Bouchard: Postponing the release of a technical report by a few months ensures the market receives a clearer and more complete picture of the asset's long-term value. At San Bartolomé, exploration is focused on securing additional oxide resources to support long-term plant feed. We continue to advance exploration across multiple targets with the objective of increasing available resources and maximizing utilization of the plant's capacity. Overall, these programs are designed to enhance production, extend mine life, and support long-term value creation across both operations. With that, I will turn it back to Alberto, who will talk about the 2026 guidance.

Speaker #4: At San Bartolomé, exploration is focused on securing additional oxide resources to support long-term plant feed. We continue to advance exploration across multiple targets, with the objective of increasing available resources and maximizing utilization of the plant capacity.

Speaker #4: Overall, these programs are designed to enhance production, extend mine life, and support long-term value creation across both operations. With that, I will turn it back to Alberto, who will talk to the 2026 guidance.

Speaker #5: Thank you, Johan. As we look ahead to 2026, we have already provided detailed production cost and capital guidance to the market. We expect consolidated production to be in the range of 100,000 to 114,000 gold equivalent ounces, with production expected to be weighted approximately 45% in the first half of the year and 55% in the second half, reflecting mine sequencing and ore delivery timing.

Alberto Morales: Thank you, Yohann. As we look ahead to 2026, we have already provided detailed production, cost, and capital guidance to the market. We expect consolidated production to be in the range of 100,000 to 114,000 gold equivalent ounces, with production expected to be weighted approximately 45% in H1 and 55% in H2, reflecting mine sequencing and ore delivery timing. At Golden Queen, we expect cash costs between $1,500 and $1,800 per gold ounce, and all-in sustaining costs between $1,850 and $2,150 per gold ounce. At San Bartolomé, we expect cash gross operating margins between $20 and $35 per silver ounce and gross margin ratios between 35% and 45%.

Alberto Morales: Thank you, Yohann. As we look ahead to 2026, we have already provided detailed production, cost, and capital guidance to the market. We expect consolidated production to be in the range of 100,000 to 114,000 gold equivalent ounces, with production expected to be weighted approximately 45% in H1 of the year and 55% in H2, reflecting mine sequencing and ore delivery timing. At Golden Queen, we expect cash costs between $1,500 and $1,800 per gold ounce, and all-in sustaining costs between $1,850 and $2,150 per gold ounce. At San Bartolomé, we expect cash gross operating margins between $20 and $35 per silver ounce and gross margin ratios between 35% and 45%.

Speaker #5: At Golden Queen, we expect cash costs between $1,500 and $1,800 per gold ounce, and audience sustaining costs between $1,850 and $2,150 per gold ounce.

Speaker #5: At San Bartolomé, we expect cash gross operating margins between 20% and 35% per silver ounce, and gross margin ratios between 35% and 45%. Overall, this positions the company to continue generating strong margins and cash flows across the range of a commodity price environment.

Alberto Morales: Overall, this positions the company to continue generating strong margins and cash flows across the range of a commodity price environments. Our capital program for 2026 is aligned with our strategy of driving long-term value while maintaining financial discipline. We expect sustaining capital of approximately $17 to 24 million and growth capital of approximately $21 to 30 million. At Golden Queen, capital will focus on leach pad expansion, development and infrastructure, equipment additions supporting mine life extensions. At San Bartolomé, capital will be directed towards processing improvements, plant optimization initiatives, and sustaining infrastructure. Overall, 2026 plan is designed to enhance operational flexibility, support mine life extension, and positions the company for continued free cash flow generation and long-term growth. To close, 2025 marked a significant step forward for Andean. We delivered record financial results, generated meaningful free cash flow, and transformed our balance sheet.

Alberto Morales: Overall, this positions the company to continue generating strong margins and cash flows across a range of commodity price environments. Our capital program for 2026 is aligned with our strategy of driving long-term value while maintaining financial discipline. We expect sustaining capital of approximately $17 to 24 million and growth capital of approximately $21 to 30 million. At Golden Queen, capital will focus on leach pad expansion, development, and infrastructure, equipment additions supporting mine life extensions. At San Bartolomé, capital will be directed towards processing improvements, plant optimization initiatives, and sustaining infrastructure. Overall, the 2026 plan is designed to enhance operational flexibility, support mine life extension, and position the company for continued free cash flow generation and long-term growth. To close, 2025 marked a significant step forward for Andean. We delivered record financial results, generated meaningful free cash flow, and transformed our balance sheet.

Speaker #5: Our capital program for 2026 is aligned with our strategy of driving long-term value while maintaining financial discipline. We expect sustaining capital of approximately $17 to $24 million, and growth capital of approximately $21 to $30 million.

Speaker #5: At Golden Queen, capital will focus on leach pad expansion, development and infrastructure, equipment additions supporting mine life extensions. At San Bartolomé, capital will be directed towards processing improvements and plant optimization initiatives, and sustaining infrastructure.

Speaker #5: Overall, the 2026 plan is designed to enhance operational flexibility, support mine life extension, and position the company for continued free cash flow generation and long-term growth.

Speaker #5: To close, 2025 marked a significant step forward for Andean. We delivered record financial results, generated meaningful free cash flow, and transformed our balance sheet. As we move into 2026, we are focused on delivering against our guidance, continuing to generate strong margins and cash flow, and advancing key initiatives across both of our operations.

Alberto Morales: As we move into 2026, we are focused on delivering against our guidance, continuing to generate strong margins and cash flow, and advancing key initiatives across both of our operations. We are entering 2026 from a position of strength, with a clear path to continue scaling the business and delivering long-term value for the shareholders. With a strong balance sheet, a clear operating plan, and upcoming catalysts, including our planned New York Stock Exchange listing, we are well-positioned to execute on the next phase of growth. Thank you everyone for your continued support. Operator, I would like to please open the line for questions.

Speaker #5: We are entering 2026 from a position of strength, with a clear path to continue scaling the business and delivering long-term value for the shareholders.

Speaker #5: With a strong balance sheet, a clear operating plan, and upcoming catalysts, including our planned New York Stock Exchange listing, we are well positioned to execute on the next phase of growth.

Speaker #5: Thank you, everyone, for your continued support and cooperation. I would like to please open the line for questions.

Operator: At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We will pause for a moment to compile a Q&A roster. Your first question comes from the line of Justin Chan with SCP Resource Finance. Please go ahead.

Speaker #6: At this time, I would like to remind everyone that in order to ask a question, please press star, then the number one on your telephone keypad.

Speaker #6: We will pause for a moment to compile a Q&A roster. And your first question comes from the line of Justin Chan with SCP Resource Finance.

Speaker #6: Please go ahead.

Speaker #7: Hi, guys. Thanks, Scott, for cash generating here. Just my first question is on the, I guess, the timing of the updated resource at Golden Queen.

Justin Chan: Hi, guys. Thanks and congrats for a cash generating year. Just my first question's on the, I guess, the timing of the updated resource at Golden Queen. I guess maybe can you give a bit more color on, I guess, will drilling from Q1 of the year go into the update? Like, what's the cutoff for data going into it? And then, yeah, if you could give us kind of the flow of timing from cutting off drilling data and then when you expect to release it.

Justin Chan: Hi, guys. Thanks and congrats for a cash generating year. Just my first question's on the, I guess, the timing of the updated resource at Golden Queen. I guess maybe can you give a bit more color on will you be doing more drilling I guess will drilling from Q1 of the year go into the update? Like, what's the cutoff for data going into it? Yeah, if you could give us kind of the flow of timing from cutting off drilling data and then when you expect to release it.

Speaker #7: I guess maybe can you give a bit more color on will you be doing more drilling in the first, I guess, will drilling from the first quarter of the year go into the update, like what's the cutoff for data going into it, and then yeah, if you could give us kind of the flow of timing from cutting off drilling data and then when you expect to release it.

Speaker #5: Yeah, good morning. Yohann here, and thanks for the question. So, the main reason for postponing by CSA three to four months the technical report is really to make sure that we include all of the information from 2025.

Yohann Bouchard: Yeah. Good morning. Yohann here, and thanks for that question. The main reason for postponing the technical report by 3 to 4 months is really to make sure that we include all of the information from 2025, which is very exciting. I mean, we got 47m hole that we do in the extension, and we believe that everything can make its way into resource. We feel that by rushing the report, I mean, we're not getting full value to that report, basically. I would say postponing the report has very little to do with drilling that we're doing in 2026. We're gonna try to include some of those holes if we can, but this is not the end game here.

Yohann Bouchard: Good morning. Yohann here, and thanks for that question. The main reason for postponing by 2 to 4 months the technical report is really to make sure that we include all of the information from 2025. Which is very exciting. I mean, we got 47-meter hole that we do in the extension, and we believe that everything can make its way into resource. We feel that by rushing the report, I mean, we're not getting full value to that report, basically. I would say postponing the report has very little to do with drilling that we're doing in 2026. We're gonna try to include some of those holes if we can, but this is not the end game here. The end game is really to include all the information we have drilled in 2025, but which is meaningful, I think, for the operation.

Speaker #5: It's very exciting. I mean, we got 47 of all that—we're doing the extension, and we believe that everything can make its way into resource.

Speaker #5: But as we feel that by rushing the report—I mean, we're not giving full value to that report, basically. I would say postponing the report has very 2026.

Speaker #5: We're going to try to include some of those all if we can. But this is not the end game here. The end game is really to include all the information that we have drilled in 2025, which is meaningful, I think, for the operation.

Yohann Bouchard: The end game is really to include all the information we have drilled in 2025, but which is meaningful, I think, for the operation.

Speaker #7: Understood. Gotcha. So it sounds like you don’t need any more info. It’s just a matter of enough time to actually model up the data you already have.

Justin Chan: Understood. Gotcha. It's not like you need to do any more infill. It's just a matter of enough time to actually model up the data you already have.

Yohann Bouchard: Absolutely. We are very satisfied with the drilling of 2025. Again, I mean, this is out of our control. I mean, the lab was quite busy, and we have some delay with that. I believe that everybody's winning by postponing a little bit and providing something that gives a clearer picture to the market.

Speaker #5: Absolutely. We are very satisfied with the drilling of 2025. Again, I mean, this is out of our control. The market—I mean, the lab was quite busy, and we had some delay with that.

Speaker #5: And I believe that everybody's winning by postponing a little bit and providing something that gives a clearer picture to the market.

Speaker #7: Gotcha. Thanks. And then I have a question on just the marketable securities and I guess there was some movement overall, I'd say, especially this quarter in terms of the FX impact on your cash and also I think quite a bit like about $10 million worth of revaluation in the marketable securities.

Justin Chan: Gotcha. Thanks. I have a question on just the marketable securities. I guess there was some movement overall, I'd say especially this quarter, in terms of the FX impact on your cash and also, I think quite a bit, like about $10 million worth of revaluation of the marketable securities. Could you give us a bit more color on. It sounds like you have a mix of treasuries and also or money market, let's call it debt instruments, but also equities. I'm just curious, I guess, how that revaluation might work in future periods.

Justin Chan: Gotcha. Thanks. Then, I have a question on just the marketable securities. I guess there was some movement overall, I'd say especially this quarter, in terms of the FX impact on your cash and also, I think quite a bit, like about $10 million worth of revaluation of the marketable securities. Could you give us a bit more color on it. It sounds like you have a mix of treasuries and also, or money market, let's call it debt instruments, but also equities. I'm just curious, I guess, how that revaluation might work in future periods.

Speaker #7: Could you give us a bit more color on it sounds like you have a mix of treasuries and also or money market. Let's call it debt instruments, but also equities.

Speaker #7: I'm just curious, I guess, how that revaluation might work in future periods.

Speaker #5: Yeah. Thank you, Justin. It's JC. So yes, as you know, as part of our cash management strategy, we hold three things: cash, marketable securities, which is mostly composed of treasuries, whether—

Juan Carlos Sandoval: Yeah. Thank you, Justin. It's JC. Yes, as you know, as part of our cash management strategy, we hold three things: cash, marketable securities, which is mostly composed of treasuries, whether it be short-term or up to three years, and then our strategic equity investments, right? Yes, as we have seen over the last few weeks, there has been more volatility, especially in mining companies. Yes, we've seen a reduction in the valuation of our equity investments. However, we believe that, you know, when we present our Q1 numbers, we'll compensate some of that loss that we have seen on the market overall.

Juan Carlos Sandoval: Yeah. Thank you, Justin. It's JC. Yes, as you know, as part of our cash management strategy, we hold three things: cash, marketable securities, which is mostly composed of treasuries, whether it be short-term or up to three years, and then our strategic equity investments, right? Yes, as we have seen over the last few weeks, there has been more volatility, especially in mining companies. Yes, we have seen a reduction in the valuation of our equity investments. However, we believe that, you know, when we present our Q1 numbers, we'll compensate some of that loss that we have seen on the market overall.

Speaker #5: Be short-term or up to three years. And then our strategic equity investments, right? Yes, as we have seen over the last few weeks, there has been more volatility, especially in mining companies.

Speaker #5: So yes, we've seen a reduction in the valuation of our equity investments. However, we believe that when we present our first quarter numbers, we'll compensate for some of that loss that we have seen in the market overall.

Justin Chan: Gotcha. Just, and the equities themselves, they're accounted for as part of the marketable securities, short and long term. Is that right?

Justin Chan: Gotcha. Just, the equities themselves, they're accounted for as part of the marketable securities, short and long term. Is that right?

Speaker #7: Gotcha. And just and the equities themselves, they're accounted for as part of the marketable securities short and long-term. Is that right?

Juan Carlos Sandoval: Yeah, that's correct.

Speaker #5: Yeah. That's correct.

Justin Chan: Okay. Gotcha. Then just the last one, and I'll free up the line. I mean, I would expect less impact given where your operations are, but just, I guess good housekeeping that I've been asking on other calls. Given the volatility in global supply chains, oil prices, et cetera, I'd imagine your locations are less impacted, but can you just flag any impacts that we should consider?

Speaker #7: Okay, gotcha. And then just the last one, and I'll free up the line. I mean, I would expect less impact given where your operations are, but just—I guess good housekeeping that I've been asking on other calls.

Speaker #7: Given the volatility and global supply chains, oil prices, etc., I'd imagine your locations are less impacted, but can you just flag any impacts that we should consider?

Juan Carlos Sandoval: Yeah. Obviously, everyone's being impacted. If oil prices remain above $100 per barrel, it will have an impact. We are working on that. Yes, as you say, at least in the US, it will be less of an impact compared to the international markets. I mean, right now we don't really know where it's going to end up, but it, you know, it's again, if oil prices continue to be where they are, yes, it will have an impact on our overall bottom line.

Speaker #5: Yeah, so obviously, everyone's being impacted. It's clear that if oil prices remain above $100 per barrel, it will have an impact. We are working on that.

Speaker #5: But yes, as you say, at least in the US, it will be less of an impact compared to the international markets. But yeah, I mean, right now, we don't really know where it's going to end up, but again, if oil prices continue to be where they are, yes, it will have an impact on our overall bottom line.

Alberto Morales: Yeah, I mean, right now we don't really know where it's going to end up, but you know, again, if oil prices continue to be where they are, yes, it will have an impact on our overall bottom line.

Justin Chan: Okay. Got you. It sounds like it's limited to more just the price of oil as opposed to like, you know, supply of any consumables or anything else.

Speaker #7: Okay, gotcha. But it sounds like it's limited more to just the price of oil, as opposed to the supply of any consumables or anything else.

Juan Carlos Sandoval: Energy-driven inflation, basically.

Yohann Bouchard: Energy-driven inflation, basically.

Speaker #5: Energy-driven inflation, basically.

Alberto Morales: It's mostly diesel and fuel. Some of the consumables might also be affected as well. It's mostly fuel and diesel, Justin.

Juan Carlos Sandoval: It's mostly diesel and fuel. Some of the consumables might also be affected as well. It's mostly fuel and diesel, Justin.

Speaker #7: It's mostly diesel and fuel. But some of the consumables might also be affected as well. But it's mostly fuel and diesel. Justin.

Justin Chan: Yeah. It's a pricing rather than availability issue.

Speaker #8: Yeah. And it's a pricing rather than availability issue.

Alberto Morales: Correct. Yeah, absolutely.

Juan Carlos Sandoval: Correct. Yeah, absolutely.

Speaker #5: Correct. Yeah. Absolutely.

Justin Chan: Okay, great. Thanks very much.

Speaker #7: Okay. Great. Thanks very much.

Alberto Morales: Thank you, Justin.

Juan Carlos Sandoval: Thank you, Justin.

Speaker #5: Thank you, Justin.

Operator: Your next question comes from the line of Ben Pirie with Atrium Research. Please go ahead.

Speaker #4: Your next question comes from the line of Ben Perry with Atrium Research. Please go ahead.

Ben Pirie: Hi, all. Congrats on another strong quarter and closing out 2025. Just going and piggybacking off Justin's question there with the resource, can you just confirm, so now this is being pushed to the end of Q2, early Q3, or is it three months further than that?

Speaker #9: Hi, all. Congrats on another strong quarter and closing out 2025. Just going piggybacking off Justin's question there with the resource, can you just confirm—so now this is being pushed to the end of Q2, early Q3, or is it three months further than that?

Yohann Bouchard: The way I see it, I mean, there's gonna be pushed toward the end of Q3.

Alberto Morales: The way I see it, I mean, there's gonna be pushed toward the end of Q3.

Speaker #5: The way I see it, I mean, there's going to be posts, or our DM, of Q3.

Ben Pirie: Okay. Understood. Thank you. Just confirming.

Speaker #9: Okay. Okay. Understood. Thank you. Just confirming. And then at the Golden Queen, can you just touch on the increasing costs between Q3 and Q4 of 2025?

Yohann Bouchard: Yeah.

Ben Pirie: at the Golden Queen, can you just touch on the increasing costs between Q3 and Q4 of 2025? Going beyond that, you know, we're looking at the AISC guidance $1,850 to 2,150 for 2026. Can you just touch on what's sort of gonna change from Q4 2025 to bring those costs back down to that range, and just sort of give investors some confidence around the cost going forward here?

Ben Pirie: At the Golden Queen, can you just touch on the increasing costs between Q3 and Q4 of 2025? Going beyond that, you know, we're looking at the AISC guidance $1,850 to $2,150 for 2026. Can you just touch on what's sort of gonna change from Q4 2025 to bring those costs back down to that range, and just sort of give investors some confidence around the cost going forward here?

Speaker #9: And then, going beyond that, we're looking at the ASIC guidance—$1,850 to $2,150—for 2026. Can you just touch on what's sort of going to change from Q4 '25 to bring those costs back down to that range?

Speaker #9: And just sort of give investors some confidence around the costs going forward here.

Dom Kizek: Hey, Ben, it's Don here. Interesting question. Q4, we had some catch-up costs, including some inventory adjustments there. Going forward, we have reiterated our guidance, so we do expect those costs to be within that guidance, as okay.

Dom Kizek: Hey, Ben, it's Dom here. Interesting question. Q4, we had some catch-up costs, including some inventory adjustments there. Going forward, we have reiterated our guidance, so we do expect those costs to be within that guidance, as okay.

Speaker #6: Hey, Ben. It's Don here. This is my question. Q4, we had some catch-up costs including some inventory adjustments there. But going forward, we have reiterated our guidance.

Speaker #6: So, we do expect those costs to be within that guidance as of today.

Juan Carlos Sandoval: all-in sustaining costs increased as well during Q4 because yes, if you look at the CapEx, we accelerated some CapEx in that Q4. That's why for that Q4, all-in sustaining costs did increase a bit, but it was mostly related to that CapEx allocated during the Q4.

Alberto Morales: All-in sustaining costs increased as well during Q4 because yes, if you look at the CapEx, we accelerated some CapEx in that Q4. That's why for that Q4, all-in sustaining costs did increase a bit, but it was mostly related to that CapEx allocated during the Q4.

Speaker #5: And all-in sustaining cost increased as well during Q4, because if you look at the CAPEX, we accelerated some CAPEX in that fourth quarter.

Speaker #5: So, that's why for that fourth quarter, all-in sustaining costs did increase a bit, but it was mostly related to that CAPEX allocated during the fourth quarter.

Ben Pirie: Okay. Understood. Thank you. Then just, I guess lastly, if I don't have too much, but on San Bartolomé, can you just talk to us about how the volatility in the gold price over the last couple months might impact margins, just given, you know, it is a margin business.

Speaker #7: Okay, understood. Thank you. And then just, I guess lastly—I don't have too much—but on Sam Bartolome, can you just talk to us about how the volatility in the gold price over the last couple of months might impact margins?

Speaker #7: Just given it is a margin business.

Yohann Bouchard: Yeah. Bear in mind then that we have a processing facility, right? Part of our feed is coming from long-term contracts, and part of it is coming from spot purchases. On the spot purchases, yes, we are paying for ore at market prices, obviously higher prices. But as we've mentioned in our guidance, we have a very profitable margin. On the fixed contracts, well, it's a fixed price per ton. On those contracts, we are more exposed to commodity prices. In this high price environment, we're, you know, it's becoming more profitable. But the combination of both, as I have said, still make it a very profitable business, but less risky overall because on the spot purchases, we have sort of like a natural hedge, right?

Juan Carlos Sandoval: Yeah. Bear in mind that we have a processing facility, right? Part of our feed is coming from long-term contracts, and part of it is coming from spot purchases. On the spot purchases, yes, we are paying for ore at market prices, obviously higher prices. As we've mentioned in our guidance, we have a very profitable margin. On the fixed contracts, well, it's a fixed price per ton. On those contracts, we are more exposed to commodity prices. In this high price environment, we're, you know, it's becoming more profitable. The combination of both, as I have said, still make it a very profitable business, but less risky overall because on the spot purchases, we have sort of like a natural hedge, right?

Speaker #5: Yeah, so bear in mind, Ben, that we have a processing facility, right? Part of our feed is coming from long-term contracts, and part of it is coming from spot purchases.

Speaker #5: On the spot purchases, yes, we are paying at market prices—obviously, higher prices. But as we've mentioned in our guidance, we have a very profitable margin, and then on the fixed contracts, well, it's a fixed price per ton.

Speaker #5: So, on those contracts, we are more exposed to commodity prices. So, in this high-priced environment, it's becoming more profitable. But the combination of both, as I have said, still make it a very profitable business, but less risky overall because on the spot purchases, we have sort of like a natural hedge, right?

Ben Pirie: Yeah. In a sharp sort of decline like we saw with gold over the last couple weeks, bouncing back this morning, there's a little bit of a margin compression in that environment. Again, the trend has been up and to the right for the gold price, so it has been benefiting you with this business positively.

Speaker #7: Yeah. And so in a sharp sort of decline, like we saw with gold over the last couple of weeks, bouncing back this morning, there's a little bit of a margin compression in that environment.

Speaker #7: But again, the trend has been up and to the right for the gold price, so it has been benefiting you with this business model, possibly.

Yohann Bouchard: That is correct then.

Speaker #5: Yeah. That is correct, Ben.

Juan Carlos Sandoval: That is correct then.

Ben Pirie: Okay, great. Well, again, congrats on a strong year, and that's all I have today.

Speaker #7: Okay, great. Well, again, congrats on a strong year. And that's all I have today.

Yohann Bouchard: Thank you.

Dom Kizek: Thank you.

Alberto Morales: Thank you, Ben.

Speaker #6: Thank you.

Speaker #5: Thank you, Ben.

Operator: There are no further questions at this time. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Q4 2025 Andean Precious Metals Corp Earnings Call

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