Andean Precious Metals (TSX: APM) swung to a second quarter net loss of $14.0 million, or $0.09 a share, from net income of $17.4 million a year earlier, after the company chose to sit on roughly half of what it produced rather than sell it.
Revenue slipped to $67.6 million from $73.7 million, and adjusted EBITDA fell to $15.7 million from $28.9 million. The comparison with the first quarter is starker still. Andean booked $163.1 million of revenue and $48.2 million of net income in the three months to March.
The gap is largely a matter of timing. Andean sold 12,314 gold equivalent ounces in the quarter, about 49% of production, deferring the rest for what it called strategic treasury management. The withheld inventory, consisting of 731,939 ounces of silver and 2,585 ounces of gold, carried at $37.6 million, was sold after the quarter closed for gross proceeds of about $56.3 million, with the revenue landing in third quarter results.
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The loss also reflected a decline in the fair value of marketable securities, a $3.7 million foreign exchange loss and $9.6 million in income taxes. Free cash flow was an outflow of $55.5 million, against a $12.3 million inflow a year earlier, and a $39.6 million inflow in Q1, as the unsold ounces piled up.
Cash and equivalents stood at $52.2 million at June 30, down from $114.5 million three months earlier but well above the $36.1 million held a year ago. Liquid assets totalled $170.8 million. Drawings on the revolving credit facility fell to $14.5 million from $30.0 million at the end of 2025.
Operationally, production rose 4% to 25,388 gold equivalent ounces. San Bartolomé contributed 16,820 ounces, helped by a 31% jump in silver output to 1.32 million ounces, while Golden Queen produced 8,568 ounces, held back by mine sequencing and grade timing. First half production of 52,730 ounces is tracking inside full-year guidance of 100,000 to 114,000 ounces.
Golden Queen’s all in sustaining cost was $2,159 an ounce for the quarter, above the $1,850-to-$2,150 guidance range, though the year to date figure of $1,970 remains within it. San Bartolomé’s cash gross operating margin of $25.56 per silver equivalent ounce sat inside guidance, but its gross margin ratio of 33.3% fell short of the 35% to 45% target.
Chief Executive Officer Alberto Morales said the reported results “do not fully reflect the underlying operating performance of the business,” and reiterated full year production, cost and margin guidance.
Andean Precious Metals last traded at $7.50 on the TSX.
