Andean Precious Metals (APM) Q3 2024 earnings summary

Executive summary

• Achieved record consolidated Q3 2024 revenue of $68.4 million, driven by strong gold and silver prices and increased production from Golden Queen and San Bartolomé.

• Ended the quarter with $98.1 million in cash, cash equivalents, marketable securities, and short-term investments, supporting financial flexibility.

• Generated $17 million in free cash flow and $23.4 million in operating cash flow, despite higher CapEx.

• Net income for Q3 was $8.2 million, with gross profit of $21.4 million and EBITDA of $20.1 million.

• Golden Queen faced lower production due to equipment downtime, while San Bartolomé improved recovery rates and maintained strong safety performance.

Financial highlights

• Q3 revenue increased 79% year-over-year to $68.4 million; nine-month revenue up 137% to $181.2 million.

• Gross profit for Q3 was $21.4 million, with EBITDA at $20.1 million and adjusted EBITDA at $19.2 million.

• Free cash flow for Q3: $17 million, up 145% year-over-year; operating cash flow: $23.4 million, up 171%.

• Capital expenditures for Q3 totaled $15.9 million; 2024 CapEx guidance increased to $36 million.

• Ending Q3 cash, cash equivalents, and investments at $98.1 million, a 21% increase year-over-year.

Outlook and guidance

• 2024 production guidance reaffirmed at the lower end: 60,000 gold equivalent ounces at Golden Queen and 5 million silver equivalent ounces at San Bartolomé.

• Consolidated full-year target: 115,000 gold equivalent ounces or 10.4 million silver equivalent ounces, plus/minus 5%.

• All-in sustaining cost guidance for Golden Queen raised to $1,950/oz due to increased CapEx and equipment upgrades.

• San Bartolomé cash gross operating margin forecasted at $7/oz, gross margin ratio at 30%.

• Full-year CapEx guidance revised to $35.5 million, with significant equipment overhaul expected to improve reliability in 2025.