Andean Precious Metals Delivers Strong Q1 2025 Results Amid Rising Precious Metal Prices

Andean Precious Metals Corp. has reported its strongest first-quarter performance in history, driven by surging precious metal prices, operational efficiencies, and strategic cost management. The Canadian miner’s Q1 2025 results reflect a turnaround from its prior-year performance, with key metrics such as revenue, gross operating income, and net income all showing dramatic improvements.

Operational Highlights: Cost Discipline and Margin Growth

The company’s two flagship operations—Golden Queen Mine in Nevada and the San Bartolome processing facility in Bolivia—both contributed to the record results. At Golden Queen, production dipped slightly to 11,189 gold equivalent ounces (Au Eq Oz) from 11,490 in Q1 2024, but operating cash costs (OCC) fell by 17% to $1,459/oz, underscoring cost-saving initiatives such as deferred stripping adjustments and capital investments in infrastructure. However, all-in sustaining costs (AISC) rose to $2,213/oz, reflecting higher sustaining capital expenditures.

Meanwhile, San Bartolome saw a 6.6% production increase to 10,172 Au Eq Oz, with its gross margin ratio (GMR) skyrocketing from -1.12% to 42.11%. This improvement was fueled by higher silver prices, better ore recovery rates, and the favorable Boliviano exchange rate, which reduced currency-related expenses. The facility’s cash gross operating margin (CGOM) also turned positive, reaching $11.86 per silver equivalent ounce sold versus a loss of $0.73 in Q1 2024.

Financial Turnaround: From Loss to Profit

The financial metrics paint an even clearer picture of Andean’s progress. Consolidated revenue jumped by 43.8% to $62.0 million, while gross operating income surged from $0.3 million to $23.1 million. Perhaps most notably, the company reversed its net loss of $0.1 million in Q1 2024 to a net income of $14.6 million ($0.10 diluted per share).

The company’s liquidity also strengthened, with $75.7 million in liquid assets at quarter-end—up 23.3% from Q1 2024—and total liabilities reduced by 5.4% to $155.1 million. This financial resilience positions Andean to pursue its exploration goals and sustain capital projects, such as the new haulage road at Golden Queen, expected to cut transportation costs starting in Q2.

Strategic Moves and Risks

CEO Alberto Morales emphasized the alignment of Q1 results with 2025 guidance, citing the completion of the haulage road and continued focus on exploration. The company’s 2024 drill results at Golden Queen, which identified potential resource expansion zones, are a key pillar of its long-term growth strategy. Additionally, the recent appointment of Yohann Bouchard as President signals a renewed emphasis on operational execution.

However, risks remain. Commodity price volatility—a critical factor for precious metal producers—could pressure margins if gold or silver prices decline. The company also faces geological uncertainties in its exploration projects and potential cost overruns in capital expenditures.

Conclusion: A Miner Positioned for Growth

Andean Precious Metals has delivered a compelling first-quarter performance, leveraging both external factors (higher metal prices) and internal improvements (cost reductions, margin expansion). With a 21% increase in gold equivalent ounces produced year-over-year and a 2,126% rise in adjusted EBITDA, the company is well-positioned to capitalize on its strategic initiatives.

The liquidity buffer of $75.7 million and net income of $14.6 million provide financial flexibility for exploration and infrastructure investments, while the TSX listing (ticker: APM) opens the door to broader institutional investor participation. If the company can sustain its operational discipline and execute its exploration roadmap, Andean could solidify its position as a high-margin, growth-oriented precious metals producer.

Investors should monitor APM’s stock performance against gold price movements and track the impact of the haulage road on Golden Queen’s AISC. With a strong start to the year, Andean’s trajectory appears promising—but execution in the quarters ahead will be critical to sustaining this momentum.