Andean Precious Metals (APM) Q2 2024 earnings summary

Executive summary

• Achieved record consolidated production of 2.5 million silver equivalent ounces and 29,888 gold equivalent ounces in Q2 2024, with revenue of $69.8 million, driven by Golden Queen acquisition, operational improvements, and increased ore purchases.

• Golden Queen production rose 48% from Q1 2024, reflecting recovery from a prior fire and successful integration post-acquisition.

• San Bartolomé production increased 30% from Q1 2024, driven by higher purchased ore volumes.

• Maintained strong liquidity with $87 million in liquid assets and $121 million in working capital, with no net debt as of June 30, 2024.

• Zero lost time injuries and no reportable environmental incidents, reflecting strong safety and sustainability performance.

Financial highlights

• Revenue reached $69.8 million in Q2 2024, up 357% year-over-year and 62% sequentially; gross profit was $14.5 million, up 494% year-over-year.

• Net income for Q2 2024 was $9.4 million, a 5,453% increase year-over-year; EBITDA was $24.5 million, up 570%; adjusted EBITDA was $21.7 million.

• Free cash flow was $7.8 million in Q2 2024, compared to negative $5.6 million in Q2 2023.

• Gross operating margin per silver equivalent ounce sold rose to $5.15 from $1.52 in Q2 2023; gross margin ratio improved to 24.45%.

• Ending cash and short-term investments stood at $87 million.

Outlook and guidance

• 2024 consolidated production guidance maintained at 115,000 gold equivalent ounces or 10.4 million silver equivalent ounces.

• Fine Minerals Processing Plant commissioned in July 2024, ramping to 1,500 tons/day by end of Q3 2024.

• Capital investment for 2024 expected at $24 million, with CapEx in Q2 2024 at $5.2 million.

• Production expected to be weighted toward the second half of 2024, with increased ore purchases and FDF output driving H2 performance.

• Working capital and tax treatment expected to remain stable for the remainder of the year.