Andean Precious Metals Corp.

Thank you. Good morning, everyone, and thank you for joining Andean Precious Metals Conference Call to discuss our financial and operating results for the 3 and 12 months ended December 31, 2025.

Our press release, MD&A and financial statements are available on SEDAR+ and on our corporate website at andeanpm.com. Before we begin, I would like to remind listeners that today's discussion will include forward-looking statements.

Please refer to our cautionary language in our filings. Joining me on the call today are Alberto Morales, Executive Chairman and CEO; Yohann Bouchard, our President; Juan Carlos Sandoval, our Chief Financial Officer; and Dom Kizek, our Vice President of Finance and Corporate Controller.

Following prepared remarks, we will open the line for questions. And with that, I'll now turn the call over to Alberto.

Thank you, Amanda, and good morning, everyone. 2025 marked a step change for Andean where we delivered focused financial -- record financial results and fundamentally strengthened our balance sheet.

We achieved record revenue, adjusted EBITDA and net income alongside with strong free cash flow generation and exited the year with a record $167 million in liquid assets. This level of cash flow generation fundamentally changes our positioning as a company.

We entered 2026 with a strong balance sheet and the financial flexibility to fund growth initiatives and evaluate opportunities to expand our asset base. Operationally, both assets contributed to this performance.

At San Bartolome, the operation delivered consistent production and strong margins, supported by efficient processing and strong silver prices. At Golden Queen, production strengthened into the fourth quarter, supporting higher consolidated gold production and contributing to our record financial results.

For the year, we maintained a balanced production profile with approximately 57% of revenue coming from silver and 43% from gold. Looking ahead, we expect several important milestones in 2026, including our planned New York Stock Exchange listing and the updated technical report at Golden Queen.

Overall, 2025 demonstrated the strength of our platform, a business capable of generating meaningful cash flow, maintaining strong margins and positioning itself for the next phase of growth. With that, I will turn it over to Yohann.

Well, thank you, Alberto, and good morning, everyone. For the fourth quarter, Andean produced 27,777 gold equivalent ounces, bringing full year production slightly below 100,000 gold equivalent ounces.

While production finished near the low end of guidance, both operations delivered strong cost performance and margin generation, supporting record financial results. At San Bartolome, the operation continued to perform consistently.

For the year, the operation delivered 4.5 million ounces of silver, contributing to a total of gold equivalent production of 53,854 ounces. Operational performance remained strong for the full year with cash gross operating margin of $16.11 per silver ounce and gross margin ratio of 42.75%.

These results reflect continued efficiency in ore sourcing, stable throughput and strong realized silver prices. At Golden Queen, the operation produced 45,311 gold equivalent ounces in 2025, comprised of 41,627 ounce of gold and 331,000 silver ounces.

Production improved into the fourth quarter, supporting stronger consolidated results. For the year, cash costs were $1,698 per gold ounce and all-in sustaining cost was $2,194 per gold ounce.

The operation continued to focus on optimizing stacking, blending and recoveries, which are expected to support improved performance going forward. From an operational perspective, both assets are well positioned heading into 2026 with stable production and strong margins.

Production is expected to be weighted approximately 45% in the first half of the year and 55% in the second half, driven by mining sequence at Golden Queen and ore delivery timing at San Bartolome. With that, I will turn it over to J.C.

Thank you, Yohann, and good morning, everyone. From a financial perspective, 2025 was a record year across all key metrics.

In the fourth quarter, we delivered strong results across the board, including revenue of $134 million and adjusted EBITDA of $47 million. For the full year, revenue reached $359 million, adjusted EBITDA was $133 million, and net income was $118 million or $0.78 per share.

Free cash flow totaled $36 million in the fourth quarter and $59 million for the year, reflecting strong cash generation. Our balance sheet strengthened significantly over the year.

Total assets increased to $434 million, while total liabilities declined to $170 million, reflecting debt repayment and strong cash generation. We ended the year with $167 million in liquid assets, a record for the company.

This was comprised of $79 million in cash and cash equivalents, $38 million in treasuries and money markets and $49 million in strategic equity investments. During the year, we fully repaid our legacy credit facilities and established a new $40 million revolving credit facility with National Bank further enhancing our financial flexibility.

This positions the company with strong liquidity and financial flexibility moving into 2026. With that, I'll turn it back to Yohann for an update on our exploration programs.

Thank you, J.C.. Our exploration programs are focused on extending mine life and supporting long-term production across both operations.

At Golden Queen, exploration remains focused on expanding known mineralization and supporting mine life extension. In 2025, we completed 47 core drill holes aiming at extending the existing mineralized zone.

While the drilling program met our expectations, turnaround times at the independent assay lab were longer than anticipated. Consequently, we have decided to postpone the release of the technical report by a few months to include this new information.

Looking ahead to 2026, our primary objective is to advance infill drilling to convert inferred resources into the measured and indicated categories. Our second objective is to follow up on the zone drilled in 2025 with additional infill drilling, which is intended to further extend mineral reserves along the trend of the existing mining areas.

Postponing the release of the technical report by a few months ensure the market receives a clearer and more complete picture of the asset long-term value. At San Bartolome, exploration is focused on securing additional oxide resources to support long-term plant feed.

We continue to advance exploration across multiple targets with the objective of increasing available resources and maximizing utilization of the plant capacity. Overall, these programs are designed to enhance production, extend mine life and support long-term value creation across both operations.

With that, I will turn it back to Alberto, who will talk to the 2026 guidance.

Thank you, Yohann. As we look ahead to 2026, we have already provided detailed production, cost and capital guidance to the market.

We expect consolidated production to be in the range of 100,000 to 114,000 gold equivalent ounces, with production expected to be weighted approximately 45% in the first half of the year and 55% in the second half, reflecting mine sequencing and ore delivery timing. At Golden Queen, we expect cash cost between $1,500 and $1,800 per gold ounce and all-in sustaining costs between $1,850 and $2,150 per gold ounce.

At San Bartolome, we expect cash gross operating margins between $20 and $35 per silver ounce and gross margin ratios between 35% and 45%. Overall, this positions the company to continue generating strong margins and cash flows across the range of a commodity price environment.

Our capital program for 2026 is aligned with our strategy of driving long-term value while maintaining financial discipline. We expect sustaining capital of approximately $17 million to $24 million and growth capital of approximately $21 million to $30 million.

At Golden Queen, capital will focus on leach pad expansion, development and infrastructure, equipment additions supporting mine life extensions. At San Bartolome, capital will be directed towards processing improvements, plant optimization initiatives and sustaining infrastructure.

Overall, 2026 plan is designed to enhance operational flexibility, support mine life extension and positions the company for continued free cash flow generation and long-term growth. To close, 2025 marked a significant step forward for Andean.

We delivered record financial results, generated meaningful free cash flow and transformed our balance sheet. As we move into 2026, we are focused on delivering against our guidance, continuing to generate strong margins and cash flow and advancing key initiatives across both of our operations.

We are entering 2026 from a position of strength with a clear path to continue scaling the business and delivering long-term value for the shareholders. With a strong balance sheet, a clear operating plan and upcoming catalysts, including our planned New York Stock Exchange listing, we are well positioned to execute on the next phase of growth.

Thank you, everyone, for your continued support. And operator, I would like to please open the line for questions.

Congrats for cash generating year. Just my first question is on the, I guess, the timing of the updated resource at Golden Queen.

I guess maybe can you give a bit more color on -- will you be doing more drilling in the first -- I guess, will drilling from the first quarter of the year go into the update? Like what's the cutoff for data going into it?

And then if you could give us kind of the flow of timing from cutting off drilling data and then when you expect to release it?

Yohann here, and thanks for the question. So the main reason for postponing by, say, 3 to 4 months, the technical report is really to make sure that we include all of the information from 2025, which is pretty exciting.

I mean we got 47 holes that we drilled in the extension, and we believe that everything can make its way into resource, but -- and we feel that by rushing the report, I mean, we're not giving full value to that report basically. I would say postponing the report has very little to do with drilling that we're doing in 2026.

We're going to try to include some of those holes if we can, but this is not the end game here. The end game is really to include all the information that we have drilled in 2025, which is meaningful, I think, for the operation.

Understood. Got you.

So it's not like you need to do any more infill. It's just a matter of enough time to actually model up the data you already have.

Absolutely. We are very satisfied with the drilling of 2025.

Again, I mean, this is out of our control. I mean, the lab was quite busy, and we had some delay with that.

And I believe that everybody is winning by postponing a little bit and providing something that can give a clearer picture to the market.

Got you. And then I have a question on just the marketable securities.

And I guess there was some movement overall, I'd say, especially this quarter in terms of the FX impact on your cash and also, I think, quite a bit like about $10 million worth of revaluation of the marketable securities. Could you give us a bit more color on -- it sounds like you have a mix of treasuries and also or money market, let's call it, debt instruments, but also equities.

I'm just curious, I guess, how that revaluation might work in future periods.

Yes. Thank you, Justin.

It's J.C. So yes, as you know, as part of our cash management strategy, we hold 3 things: cash, marketable securities, which is mostly composed of treasuries, whether it be short term or up to 3 years and then our strategic equity investments, right?

Yes, as you -- as we have seen over the last few weeks, there has been more volatility, especially in mining companies. So yes, we've seen a reduction in the valuation of our equity investments.

However, we believe that when we present our first quarter numbers, we will compensate some of that loss that we have seen on the market overall.

Got you. And just -- and the equities themselves, they're accounted for as part of the marketable securities short and long term.

Is that right?

Yes, that's correct.

Okay. Got you.

And then just the last one, and I'll free up the line. I mean I would expect less impact given where your operations are, but just, I guess, good housekeeping that I've been asking on other calls.

Given the volatility in global supply chains, oil prices, et cetera, I'd imagine your locations are less impacted, but can you just flag any impacts that we should consider?

Yes. So obviously, everyone is being impacted.

If oil prices remain above $100 per barrel, it will have an impact. We are working on that.

But yes, as you say, at least in the U.S., it will be less of an impact compared to the international markets. But yes, I mean, right now, we don't really know where it's going to end up, but it's -- again, if oil prices continue to be where they are, yes, it will have an impact on our overall bottom line.

Okay. Got you.

But it sounds like it's limited to more just the price of oil as opposed to like supply of any consumables or anything else?

Energy-driven inflation basically.

It's mostly diesel and fuel, but some of the consumables might also be affected as well. But it's mostly fuel and diesel, Justin.

Yes. And it's a pricing rather than availability issue?

Correct. Yes, absolutely.

Congrats on another strong quarter and closing out 2025. Just going -- piggybacking off Justin's question there with the resource.

Can you just confirm -- so now this is being pushed to the end of Q2, early Q3? Or is it 3 months further than that?

The way I see it, I mean, there's going to be pushed towards the end of Q3.

Okay. Okay.

Understood. And then at the Golden Queen, can you just touch on the increase in costs between Q3 and Q4 of 2025?

And then going beyond that, we're looking at the AISC guidance, $1,850 to $2,150 for 2026. Can you just touch on what's sort of going to change from Q4 '25 to bring those costs back down to that range and just sort of give investors some confidence around the cost going forward here?

Ben, it's Dom here. This is the question.

Q4, we had some catch-up costs, including some inventory adjustments there. But going forward, we have reiterated our guidance.

So we do expect those costs to be within that guidance as of today.

And all-in sustaining costs increased as well during Q4 because if you look at the CapEx, we accelerated some CapEx in that fourth quarter. So that's why for that fourth quarter, all-in sustaining costs did increase a bit, but it was mostly related to that CapEx allocated during the fourth quarter.

Okay. Understood.

And then just, I guess, lastly, I don't have too much. But on San Bartolome, can you just talk to us about how the volatility in the gold price over the last couple of months might impact margins just given it is a margin business?

Yes. So bear in mind, Ben, that we have a processing facility, right?

Part of our feed is coming from long-term contracts and part of it is coming from spot purchases. On the spot purchases, yes, we are paying ore at market prices, obviously, higher prices.

But as we've mentioned in our guidance, we have a very profitable margin. And then on the fixed contracts, well, it's a fixed price per ton.

So on those contracts, we are more exposed to commodity prices. So in this high price environment, we're -- it's becoming more profitable.

But the combination of both, as I have said, still make it a very profitable business, but less risky overall because on the spot purchases, we have sort of like a natural hedge, right?

Yes. And so in a sharp sort of decline like we saw with gold over the last couple of weeks bouncing back this morning, there's a little bit of a margin compression in that environment.

But again, the trend has been up and to the right for the gold price has been benefiting you with this business as of late.

That is correct.

Okay. Great.

Well, again, congrats on a strong year and that's all I have today.