Andean Precious Metals (TSX: APM) reported a modest 6% year-over-year rise in Q2 2025 revenue to $73.7 million, driven by sharply higher realized prices—$3,316 per ounce for gold versus $2,305 per ounce a year ago and $34.36 per ounce for silver versus the prior $27.80 per ounce.
Gross operating income more than doubled to $29.4 million from $11.7 million, with the gross margin expanding to 39.8% from 16.7% on a comparable basis. Operating income climbed to $24.5 million from $9.8 million, leading to net income rising 85% to $17.4 million, or $0.12 per diluted share, from $9.4 million, or $0.06.
Adjusted EBITDA increased to $28.9 million from $17.2 million, implying a 39.2% margin versus 24.6% last year. The bridge to adjusted EBITDA included $10.3 million in income taxes, $1.2 million in finance costs, $4.0 million in depreciation and depletion, a negative $8.7 million line for “other gains,” and a $4.4 million foreign-exchange loss versus a gain in Q2 2024.
Operating cash flow strengthened to $20.3 million from $13.0 million, while capital expenditures rose to $8.0 million from $5.2 million, resulting in free cash flow of $12.3 million versus last year’s claimed Q2 free cash flow of $8.15 million, but the reconciliation table shows $7.79 million.
Liquid assets increased to $87.3 million from $72.0 million at Q2 2024, even as cash and equivalents alone declined to $36.1 million from $47.0 million year over year, reflecting a rotation into marketable securities.
Companywide Q2 gold-equivalent production fell 19% year over year to 24,341 ounces, with gold-equivalent sales down 24% to 23,024 ounces. Gold ounces sold decreased 27% to 11,403 ounces and silver ounces sold fell 14% to 1.046 million ounces.
Golden Queen’s unit costs deteriorated. OCC increased 17% to $1,717 per ounce, and AISC rose 28% to $2,245 per ounce from $1,752 per ounce, consistent with lower throughput: Q2 2025 gold-equivalent production was 12,213 ounces versus 16,986 ounces a year earlier.
San Bartolomé offset some of that pressure with markedly better margins. Cash gross operating margin rose to $13.89 per silver-equivalent ounce from $5.03. The site produced 12,128 gold-equivalent ounces versus 12,795 last year. The company raised its 2025 San Bartolomé cost guidance ranges: CGOM to $8.00–$13.00 (from $6.50–$8.40).
Management reaffirmed 2025 production and capex guidance for both operations and highlighted a 7-million-tonne purchase agreement with state-owned COMIBOL, targeting first ore in H2 2026 to expand oxide feed and better utilize San Bartolomé’s plant.
Andean Precious Metals last traded at $4.42 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
