Andean Precious Metals Reports Second-Quarter 2026 Financial Results

Andean Precious Metals Corp. reported its financial results for the three and six months ended June 30, 2026. The company’s quarterly performance was influenced by a strategic decision to defer the sale of a substantial portion of its silver and gold production. Higher precious-metal prices and stronger first-half production supported the company’s overall financial performance.

Key Financial Highlights

Andean Precious Metals generated revenue of approximately $67.6 million during the second quarter of 2026, compared with $73.7 million during the same period in 2025. The decline was mainly related to lower reported sales volumes after the company temporarily retained a significant amount of finished metal inventory.

Silver contributed approximately 60% of quarterly revenue, while gold accounted for the remaining 40%. Although reported sales volumes were lower, stronger realized commodity prices helped offset part of the impact.

For the first six months of 2026, revenue reached approximately $230.8 million. This represented an increase of about 70% compared with revenue of approximately $135.7 million during the first half of 2025.

Higher Realized Metal Prices

Andean benefited from a stronger pricing environment during the second quarter. The company reported the following average realized prices:

Average realized gold price of approximately $4,453 per ounce.
Average realized silver price of approximately $76.82 per ounce.
Gold prices increased by approximately 34% compared with the second quarter of 2025.
Silver prices increased by approximately 124% year over year.

Higher gold and silver prices supported revenue generation despite the reduction in ounces sold during the quarter.

Strategic Inventory Decision

A major factor affecting Andean’s second-quarter results was the company’s decision to defer sales of finished silver and gold inventory. At June 30, 2026, the company held approximately 731,939 ounces of silver and 2,585 ounces of gold at third-party refineries.

The inventory was recorded on the balance sheet at a cost of approximately $37.6 million. Since the metals had not been sold by the end of the reporting period, the related revenue and operating margin were not included in the second-quarter financial results.

After the quarter ended, Andean sold the deferred inventory. The metals were sold at weighted average realized prices of approximately $62.26 per ounce for silver and $4,168 per ounce for gold. The transactions generated gross proceeds of approximately $56.3 million.

The related revenue is expected to be recognized in the company’s results for the three months ending September 30, 2026. Therefore, the second-quarter figures do not fully reflect the company’s underlying production and sales potential.

Effect on Quarterly Earnings

Gross operating income was approximately $23.6 million in the second quarter of 2026, compared with $29.4 million during the second quarter of 2025. Lower sales volumes were the primary reason for the decline, although stronger metal prices provided some support.

Income from operations was approximately $10.9 million, compared with $24.5 million in the prior-year quarter. The company said deferred metal sales, higher exploration expenses and share-based compensation costs affected operating income.

Andean recorded a net loss of approximately $14.0 million, or $0.09 per basic and diluted share. The quarterly loss was also influenced by a decline in the fair value of marketable securities and a foreign-exchange loss.

For the first six months of 2026, the company reported net income of approximately $34.2 million, equal to diluted earnings of $0.22 per share.

Production Performance

Andean produced approximately 25,388 gold equivalent ounces during the second quarter of 2026. This represented an increase of about 4% compared with approximately 24,340 gold equivalent ounces produced during the same period in 2025.

First-half production reached approximately 52,730 gold equivalent ounces, an increase of nearly 15% compared with the 45,701 gold equivalent ounces produced during the first six months of 2025.

The company’s production was supported by operations at the Golden Queen mine in California and the San Bartolome facility in Bolivia.

Golden Queen Mine

Golden Queen produced approximately 8,568 gold equivalent ounces during the second quarter. Production included approximately 7,792 ounces of gold and 66,024 ounces of silver.

Production was lower than in the comparable quarter, primarily because of mine sequencing and the timing of ore grades. The operation reported cash costs of approximately $1,779 per gold ounce sold during the quarter.

All-in sustaining costs were approximately $2,159 per gold ounce sold during the second quarter. For the first six months of 2026, Golden Queen’s all-in sustaining cost was approximately $1,970 per ounce, remaining within the company’s full-year guidance range.

Golden Queen’s cost of sales was approximately $15.8 million, compared with $21.6 million during the second quarter of 2025.

San Bartolome Facility

San Bartolome delivered a stronger operating performance during the quarter. The facility produced approximately 16,820 gold equivalent ounces, including about 1.32 million ounces of silver and 1,312 ounces of gold.

Silver-equivalent production increased by approximately 31% year over year. The improvement was supported by higher ore purchase volumes, stronger grades and increased processing throughput.

San Bartolome reported a cash gross operating margin of approximately $25.56 per silver-equivalent ounce sold. Its gross margin ratio was approximately 33.31%.

Higher ore purchase costs, which were linked to the spot price of silver, reduced the gross margin ratio compared with the prior-year period. However, stronger realized silver prices helped offset part of the cost pressure.

Balance Sheet Strength

Andean ended the second quarter with approximately $52.2 million in cash and cash equivalents. This compared with $36.1 million at June 30, 2025.

The company reported liquid assets of approximately $170.8 million, compared with $90.5 million during the second quarter of 2025. The liquid-assets measure includes cash, investments, metal held at third-party refineries and doré inventory.

During the quarter, Andean made a $15 million repayment on its revolving credit facility. The outstanding balance declined to approximately $14.5 million at June 30, 2026, compared with $30 million at the end of 2025.

Total liabilities decreased to approximately $152 million, while total equity increased to approximately $301.3 million. The company said the changes reflected a stronger financial position and debt reduction during the period.

Cash Flow Considerations

Free cash flow was negative at approximately $55.5 million during the second quarter, compared with positive free cash flow of approximately $12.3 million during the same quarter in 2025.

The main reason for the cash outflow was the accumulation of finished silver and gold inventory associated with the company’s decision to delay sales. Capital expenditures were lower than in the prior-year quarter, which helped limit the overall cash impact.

Net cash used in operating activities was approximately $50.9 million. The company expects proceeds from the post-quarter-end inventory sale to support free cash flow during the third quarter of 2026.

Corporate Developments

Andean continued to advance several corporate initiatives during and after the second quarter.

Victor Flores was appointed Senior Vice President of Exploration, Operations and Growth. The company said he has more than 35 years of experience in geology, mine development, mining operations and investment-related activities.

Andean also relaunched a normal course issuer bid. Under the program, the company may purchase up to 4 million common shares, representing approximately 2.65% of its issued and outstanding shares during the authorized period.

After the quarter ended, Andean purchased approximately 2.1 million shares at an average price of C$6.04 per share. The total consideration was approximately C$12.7 million, and the acquired shares have been or will be cancelled.

Stephen J. Altmann was elected as an independent director at the company’s annual shareholders’ meeting. Andean is also continuing to work toward a potential listing of its common shares on the New York Stock Exchange during 2026, subject to regulatory and listing requirements.

Golden Queen Technical Report

Andean is preparing an updated technical report for the Golden Queen mine. The company expects to announce the report in late September 2026 and file it through the applicable Canadian securities-disclosure system.

The updated report could provide investors with additional information about the mine’s resources, operating outlook and potential development opportunities. However, the timing and conclusions remain subject to the completion of technical work and applicable regulatory requirements.

2026 Guidance Reaffirmed

Andean reaffirmed its full-year 2026 production, cost and margin guidance. Management said the company continues to expect performance within its previously announced ranges despite elevated diesel prices.

The company highlighted disciplined operating execution, a focus on free-cash-flow generation and favorable foreign-exchange effects resulting from the depreciation of Bolivia’s currency against the U.S. dollar.

Future results will depend on several factors, including precious-metal prices, production levels, operating expenses, fuel costs, foreign-exchange movements and the timing of inventory sales.

What Investors Should Watch

Investors may focus on the following developments during the second half of 2026:

Recognition of revenue from the deferred inventory sale.
Improvement in free cash flow following the receipt of approximately $56.3 million in gross proceeds.
Production and cost performance at Golden Queen.
Continued operating growth at San Bartolome.
Release of the updated Golden Queen technical report.
Progress toward a potential New York Stock Exchange listing.
Additional share purchases under the normal course issuer bid.

Although Andean reported a quarterly loss, the results should be considered alongside the company’s production growth, stronger commodity prices, substantial liquid assets and the sale of deferred inventory after the reporting period.

Frequently Asked Questions

What was Andean Precious Metals’ revenue in the second quarter of 2026?

Andean reported approximately $67.6 million in revenue for the second quarter of 2026.

Why did quarterly revenue decline despite higher metal prices?

Revenue declined because the company deferred the sale of a significant amount of finished silver and gold production. Higher realized prices only partly offset the effect of lower reported sales volumes.

How much silver and gold inventory did Andean hold?

At June 30, 2026, Andean held approximately 731,939 ounces of silver and 2,585 ounces of gold at third-party refineries.

When will the deferred inventory be included in revenue?

The inventory was sold after June 30, 2026. The associated revenue is expected to be included in the financial results for the quarter ending September 30, 2026.

How much gold equivalent did Andean produce?

The company produced approximately 25,388 gold equivalent ounces during the second quarter and 52,730 gold equivalent ounces during the first six months of 2026.

Did Andean reaffirm its 2026 guidance?

Yes. Andean reaffirmed its full-year 2026 production, cost and margin guidance.

What were Andean’s liquid assets at the end of the quarter?

Andean reported approximately $170.8 million in liquid assets at June 30, 2026. The measure includes cash, investments and certain metal inventories.

Did Andean reduce its debt during the quarter?

Yes. The company made a $15 million repayment on its revolving credit facility, reducing the outstanding balance to approximately $14.5 million.

External References

Disclaimer

This article is original editorial content prepared from publicly reported company information. It is intended for informational purposes only and should not be considered investment advice. Readers should review the company’s official financial statements and regulatory filings before making investment decisions.

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