Andean Precious Metals Reports First Quarter 2025 Financial Results

ACHIEVED ANOTHER RECORD IN QUARTERLY REVENUES OF $62 MILLION AND ADJUSTED EBITDA OF $22 MILLION.

(All amounts in U.S. dollars unless otherwise indicated)

Toronto, Ontario--(Newsfile Corp. - May 6, 2025) - Andean Precious Metals Corp. (TSX: APM) (OTCQX: ANPMF) ("Andean" or the "Company") is pleased to report its financial results for the three months ended March 31, 2025. This news release should be read together with Andean's management discussion and analysis ("MD&A") and condensed interim consolidated financial statements for the three months ended March 31, 2025 (the "Financial Statements") which are available under the Company's profile on SEDAR+ (www.sedarplus.ca).

First Quarter 2025 Highlights:

• Consolidated revenue of $62.0 million from sales at an average realized gold price of $2,694/oz and an average realized silver price of $31.91/oz for Q1 2025 versus consolidated revenue of $43.1 million from sales at an average realized gold price of $2,074/oz and an average realized silver price of $23.64/oz for Q1 2024.

• Consolidated Q1 2025 production of 21,361 gold equivalent ounces versus consolidated Q1 2024 production of 21,031 gold equivalent ounces.

• Gross operating income of $23.1 million for Q1 2025 versus $0.3 million for Q1 2024, mainly due to higher average realized gold and silver prices, higher sales volume, and lower operating costs at San Bartolome and Golden Queen.

• Income from operations of $18.9 million for Q1 2025 versus a net loss from operations of $1.6 million for Q1 2024, mainly due to higher gross operating income partially off-set by higher exploration and evaluation expenditures.

• Adjusted EBITDA of $21.9 million for Q1 2025 adjusted EBITDA of $1.0 million for Q1 2024.

• Net income and net income per share of $14.6 million and $0.10 (diluted basis), respectively for Q1 2025, net loss and net loss per share of $0.1 million and $0.00 (diluted basis) for Q1 2024.

• The Company ended Q1 2025 with $75.7 million in liquid assets as compared to $61.4 million in liquid assets at the end of Q1 2024.

• The Company strengthened its balance sheet with $320.0 million in total assets as compared to $315.1 million in total assets at the end of Q4 2024, and $155.1 million in total liabilities at the end of Q1 2025 as compared to $164.1 million at the end of Q4 2024.

Golden Queen Results:

• Golden Queen produced 11,189 gold equivalent ounces in Q1 2025 versus 11,490 gold equivalent ounces in Q1 2024.

• Golden Queen OCC of $1,459/oz and AISC of $2,213/oz for Q1 2025 versus OCC of $1,762/oz and AISC of $1,936/oz for Q1 2024.

San Bartolome Results:

• San Bartolome produced 10,172 gold equivalent ounces in Q1 2025 versus 9,541 gold equivalent ounces in Q1 2024.

• CGOM of $11.86 per silver equivalent ounce sold and a GMR of 42.11% for Q1 2025, versus a CGOM of $(0.73) per silver equivalent ounce sold and a GMR of (1.12) % for Q1 2024.

Corporate Updates:

• On May 1, 2025 the Company reported the results of the 2024 exploration program and outlined plans for its 2025 exploration program objectives and targets at Golden Queen.

• Effective January 9, 2025, the Company's shares began trading on the TSX under the ticker symbol APM.

• On January 12, 2025, the Company announced it entered an automatic share purchase plan in conjunction with its normal course issuer bid and renewed the program on January 2, 2025.

• On January 16, 2025, the Company released the initial drill results from the 2024 exploration program at Golden Queen.

• On February 24, 2025, the Company announced the appointment of Yohann Bouchard as President of the Company. Mr. Bouchard will continue to serve on the Board of Directors of the Company as a non-independent director.

Alberto Morales, Executive Chairman and CEO, stated, "We delivered a strong financial performance in the first quarter, highlighted by significant growth in revenue, operating income, and net income compared to the same period last year. These results reflect the benefit of higher realized metal prices, disciplined cost management at both San Bartolome and Golden Queen, and our ongoing focus on generating strong cash flow. Operationally, production of 21,361 gold equivalent ounces in line with expectations and we anticipate stronger production over the balance of the year, keeping us well positioned to meet our 2025 guidance.

"At San Bartolome, we achieved a meaningful improvement in margins, primarily driven by higher average realized silver prices, better recoveries, larger ore purchases and favorable movements in the Boliviano foreign exchange rate. At Golden Queen, operating costs decreased compared to the same period last year, benefiting from a cash inventory adjustment, the reallocation of deferred stripping costs to sustaining capital expenditures, and the capitalization of earthworks related to the construction of a new, more efficient haulage road. This road is expected to be completed early in the second quarter and is designed to reduce cycle times and haulage costs."

Mr. Morales continued, "Beyond our financial results, we are encouraged by the momentum building at Golden Queen. The recently announced results from our 2024 exploration program highlight the strong potential to expand the existing resource base and enhance the long-term value of the operation. Our 2025 exploration objectives at Golden Queen are focused on targeting near-mine extensions and testing new zones that could support future growth and mine life extension. Exploration remains a core pillar of our growth strategy, and we are energized by the opportunities we see ahead.

"We have a solid balance sheet, a seasoned leadership team, a well-defined growth strategy, and are well positioned to advance with our objective to create substantial and lasting value for our shareholders."

Summary of Financial and Operating Results

¹ Average realized gold price, average realized silver price, OCC, AISC, CGOM, and GMR are measures of financial performance with no prescribed definition under IFRS. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section of the news release for further detail, including a reconciliation of these metrics to the financial statements.
² Beginning in 2025, gold equivalent ounces of silver produced or sold in a quarter are computed using a consistent ratio of silver price to the gold price and multiplying this ratio by silver ounces produced or sold during that quarter. The Company is using a conversion factor of 90 using a price assumption of $2,500 per ounce of gold and $27.78 per ounce of silver.
³ 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 OCC, GMR, and gross operating income.

¹ 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 OCC, GMR, and gross operating income.
² Free cash flow, EBITDA, Adjusted EBITDA, and Liquid Assets are measures of financial performance with no prescribed definition under IFRS. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section of the news release for further detail, including a reconciliation of these metrics to the financial statements.

Q1 2025 Conference Call and Webcast

• Wednesday, May 7^th, at 9:00 AM ET
  
  
• Participants may listen to the webcast by registering via the following link https://www.gowebcasting.com/14022.
  
  
• Participants may also listen to the conference call by calling North American toll free 1-833-821-0164, or 1-647-846-2305 outside the U.S. or Canada.
  
  
• An archived reply of the webcast will be available for 90 days at: https://www.gowebcasting.com/14022 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).

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 and expectations for. Such 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 secure and to meet obligations under property and option agreements and other material agreements; the timely receipt of required approvals and permits; that there is no material adverse change affecting the Company or its properties; that contracted parties provide goods or services in a timely manner; that no unusual geological or technical problems occur; that plant and equipment function as anticipated and that there is no material adverse change in the price of silver, price of gold, costs associated with production or recovery. 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 anticipated in such forward-looking statements. 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 you are cautioned not to place undue reliance on forward-looking statements contained herein. Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this release include, but are not limited to: risks and uncertainties 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, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, resources, grade, planned mining dilution and 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 difficulties with or interruptions in exploration and development; the potential for delays in exploration or development 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 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 failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental or local community approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment; and other factors contained in the section entitled "Risk Factors" in the Company's MD&A for the three months ended March 31, 2025.

Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore, 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 cost of sales 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:

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:

Cash Gross Operating Margin

CGOM per silver equivalent ounce sold is calculated by subtracting the average cash cost of sale (cost of sales, allocated corporate administrative costs 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:

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 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:

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:

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:

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:

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:

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251033