ACHIEVED RECORD REVENUES OF $254 MILLION AND RECORD ADJUSTED EBITDA OF $62.9 MILLION
(All amounts in U.S. dollars unless otherwise indicated)
Toronto, Ontario--(Newsfile Corp. - March 18, 2025) - Andean Precious Metals Corp. (TSX: APM) (OTCQX: ANPMF) ("Andean" or the "Company") is pleased to report its operating highlights and financial results for the year ended December 31, 2024. This news release should be read together with Andean's management discussion and analysis ("MD&A") and the annual consolidated financial statements for the three and twelve months ended December 31, 2024 (the "Financial Statements"), which are available under the Company's profile on SEDAR+ (www.sedarplus.ca).
Alberto Morales, Executive Chairman and CEO, stated: “2024 was a transformative year for Andean Precious Metals. It marked our first full year with Golden Queen in our operating portfolio, and despite operating at close to the lower end of our production range, we achieved record revenues and record adjusted EBITDA, demonstrating the strength of the commodity markets and our operational efficiencies.”
Mr. Morales continued: "We also proudly uplisted to the TSX from the TSX Venture Exchange, which was an important milestone that enhances our market visibility and aligns with our long-term growth strategy. In addition, we renewed our Normal Course Issuer Bid program, reinforcing our confidence in Andean's future growth and our commitment to delivering value to shareholders.
"We kicked off an exploration program at Golden Queen which tested near-mine exploration targets, delivering promising results that could extend the open pit boundaries beyond the current design. Alongside this, we continue to make good progress on key scheduled investments to enhance operational stability and efficiency at Golden Queen. As we closed out 2024, we ended the year with a stronger balance sheet, reflecting solid free cash flow generation since acquiring Golden Queen in 2023 and positioning Andean for its next phase of growth.
"For 2025, we remain committed to value creation at our operating sites, while also pursuing both, organic and inorganic growth initiatives. Our guidance for 2025 is showing a conservative growth forecast in production with a mid-point projection of 110,000 gold equivalent ounces, as compared to 106,287 gold equivalent ounces for 2024. We expect to generate significant operating cash flow and EBITDA in 2025, and to use some of these proceeds in the outlay of CAPEX, which we estimate to be around $30 million. Overall, we expect 2025 to be a solid year for the Company.
"Finally, I am very pleased with the integration of Yohann Bouchard, our new President, to the Company. Yohann brings with him significant operational and strategic experience reinforcing our commitments toward improving our technical and operational excellence."
2024 Highlights:
Consolidated Results:
- Consolidated 2024 production of 106,287 gold equivalent ounces.
- Record consolidated revenue of $254.0 million from sales at an average realized gold price of $2,332/oz and an average realized silver price of $28.84/oz.
- The Company strengthened its financial position in 2024, ending the period with $81.6 million in liquid assets compared to $70.1 million in liquid assets in 2023.
- The Company generated record free cash flow of $34.5 million1.
- Gross operating income of $68.6 million, mainly due to strong average realized gold and silver prices and lower operating costs at San Bartolome.
- Net income and net income per share of $19.2 million and $0.12 (diluted basis), and Adjusted EBITDA and Adjusted EBITDA per share of $62.9 million and $0.41 (diluted basis), respectively.
Golden Queen Results:
- Golden Queen produced 54,275 gold equivalent ounces in 2024.
- Golden Queen operating cash costs ("OCC") of $1,501/oz and all-in sustaining costs ("AISC")1 of $2,015/oz for 2024.
San Bartolome Results:
- San Bartolome produced 4.5 million silver equivalent ounces in 2024.
- Achieved a strong cash gross operating margin ("CGOM") of $9.15 per ounce of silver equivalent sold and a gross margin ratio ("GMR")2 of 38.14% for 2024.
- Achieved an average recovery rate in 2024 of 82% when compared to an average recovery rate of 78% for 2023.
2025 Production and Cost Guidance:
- The Company expects consolidated production to be between 103K-117K gold equivalent ounces in 2025.
- At Golden Queen, OCC and AISC to be between $1,500 - $1,800/oz and $1,950-$2,150 /oz respectively.
- At San Bartolome, CGOM and GMR to be between $6.50-$8.40/oz and 29%-36%/oz respectively.
- The Company expects the total capital expenditures for 2025 to be between $28 - $32 million.
Corporate Updates:
- Effective January 9, 2025, the Company's shares began trading on the TSX under the ticker symbol APM.
- On January 12, 2024, the Company announced it entered an automatic share purchase plan in conjunction with its normal course issuer bid and renewed the program on January 2, 2025.
- Health and Safety Performance: During the fourth quarter of 2024, no lost time injuries ("LTI") have been reported at Golden Queen or San Bartolome. As of December 31, 2024, San Bartolome reached 118 days without LTI and Golden Queen reached 561 days without LTI.
Summary of Financial and Operating Results
| OPERATING HIGHLIGHTS | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |||||||||
| Gold ounces (Au, Oz) | |||||||||||||
| Produced | 11,560 | 5,818 | 50,348 | 7,088 | |||||||||
| Sold | 11,948 | 7,290 | 50,448 | 7,705 | |||||||||
| Average realized gold price ($/oz) 1 | 2,505 | 2,028 | 2,332 | 2,023 | |||||||||
| | |||||||||||||
| Silver ounces (Ag, K-Oz) | |||||||||||||
| Produced | 1,411 | 1,245 | 4,817 | 4,602 | |||||||||
| Sold | 1,385 | 1,393 | 4,727 | 4,541 | |||||||||
| | |||||||||||||
| Average realized silver price ($/oz) 1 | 30.96 | 24.42 | 28.84 | 24.16 | |||||||||
| Gold equivalent ounces (Au Eq, Oz) | |||||||||||||
| Produced | 27,676 | 19,896 | 106,287 | 62,620 | |||||||||
| Sold | 27,429 | 23,137 | 105,352 | 62,500 | |||||||||
| Golden Queen | |||||||||||||
| OCC ($ / Gold Ounces Sold)1 | 1,537 | 1,804 | 1,501 | 1,804 | |||||||||
| AISC ($ / Gold Ounces Sold) 1 | 2,139 | 1,738 | 2,015 | 1,738 | |||||||||
| | |||||||||||||
| San Bartolome | |||||||||||||
| CGOM ($ / Silver Equivalent Ounces Sold)1 | 11.09 | 2.83 | 9.15 | 2.70 | |||||||||
| GMR / Silver Equivalent Ounces Sold (%)1 | 43.26 | 15.51 | 38.41 | 16.16 |
1Average realized gold price, average realized silver price, free cash flow, OCC, AISC, CGOM, and GMR are measures of financial performance with no prescribed definition under IFRS. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section of this news release for further detail, including a reconciliation of these metrics to the financial statements.
| FINANCIAL HIGHLIGHTS | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |||||||||
| (In thousands of US dollars, except for net income per share and adjusted EBITDA per share) | |||||||||||||
| Revenue | 72,803 | 48,821 | 254,000 | 125,324 | |||||||||
| Gross operating income | 23,806 | 5,106 | 68,561 | 14,201 | |||||||||
| Net income | 1,706 | 41,474 | 19,224 | 41,938 | |||||||||
| Net income per share | |||||||||||||
| -Basic | 0.01 | 0.26 | 0.13 | 0.27 | |||||||||
| -Diluted | 0.01 | 0.23 | 0.12 | 0.24 | |||||||||
| Adjusted EBITDA1 | 18,942 | 5,091 | 62,934 | 10,539 | |||||||||
| | |||||||||||||
| Adjusted EBITDA per share1 | |||||||||||||
| -Basic | 0.13 | 0.03 | 0.42 | 0.07 | |||||||||
| -Diluted | 0.12 | 0.03 | 0.41 | 0.06 | |||||||||
| Capital expenditures | 7,044 | 6,956 | 31,658 | 9,571 | |||||||||
| Free cash flow[1] | 17,879 | (1,432 | ) | 34,525 | 4,558 | ||||||||
| Cash and cash equivalents | 62,441 | 64,907 | 62,441 | 64,907 | |||||||||
| Liquid assets1 | 81,575 | 70,069 | 81,575 | 70,069 | |||||||||
2025 Production and Cost Guidance
Production Guidance
The Company's 2025 annual gold and silver production guidance for Golden Queen and San Bartolome:
| Gold Production (Thousand Ounces) | Silver Production (Million Ounces) | Gold Equivalent Production2 (Thousand Ounces) | |
| Golden Queen San Bartolome | 50.0 - 55.0 1.8 - 2.2 | 0.2 - 0.5 4.4 - 4.9 | 52.2 - 60.6 50.7 - 56.6 |
| Total | 51.8 - 57.2 | 4.6 - 5.4 | 102.9 - 117.2 |
2For 2025 guidance commodity price assumptions the Company is using $2,500 per ounce of gold and $27.78.
Cost Guidance
The Company's 2025 annual cost guidance for Golden Queen and San Bartolome:
| Golden Queen | OCC ($ / Gold Ounces Sold) AISC ($ / Gold Ounces Sold) | $ 1,500 - $ 1,800 $ 1,950 - $ 2,150 |
| San Bartolome | CGOM ($ / Silver Equivalent Ounces Sold) GMR / Silver Equivalent Ounces Sold (%) | $ 6.50 - $8.40 29 % - 36 % |
CAPEX Guidance
The Company's 2025 capital expenditures guidance:
| In $ 000's | 2025 Guidance |
| Sustaining capital expenditures | |
| San Bartolome | 5,600 - 6,200 |
| Golden Queen | 12,700 - 14,000 |
| Total sustaining capital expenditures | 18,300 - 20,200 |
| | |
| Growth capital expenditures | |
| San Bartolome | 600 - 800 |
| Golden Queen | 9,300 - 11,000 |
| Total growth capital expenditures | 9,900 - 11,800 |
| | |
| Total capital expenditures | |
| San Bartolome | 6,200 - 7,000 |
| Golden Queen | 22,000 - 25,000 |
| Total capital expenditures | 28,200 - 32,000 |
At San Bartolome, sustaining capital expenditures are expected to be $5.6 million to $6.2 million largely due to tailings expansions and processing upgrade projects.
At Golden Queen, sustaining capital expenditures are expected to be $12.7 million to $14.0 million largely due to stacking system and process plant equipment replacement, overhauls of existing equipment, and upgrades to crushing equipment. Growth capital expenditures at Golden Queen are expected to be $9.3 million to $11.0 million, largely due to initial capital outlays for a new phase of the heap leach pad, purchase of new haul trucks, and spending on a new production water well for future mine production.
Q4 and FY 2024 Conference Call and Webcast
Wednesday, March 19, at 9:00 AM ET
Participants may listen to the webcast by registering via the following link https://www.gowebcasting.com/13970.
Participants may also listen to the conference call by calling North American toll free 1-833-821-0164, or 1-647-846-2305 outside the U.S. or Canada.
An archived reply of the webcast will be available for 90 days at: https://www.gowebcasting.com/13970 or the Company website at www.andeanpm.com.
About Andean Precious Metals
Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The Company owns and operates the San Bartolomé processing facility in Potosí, Bolivia and the Soledad Mountain mine in Kern County, California, and is well-funded to act on future growth opportunities. Andean's leadership team is committed to creating value; fostering safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset, mid-tier precious metals producer.
Qualified Person Statement
The scientific and technical content disclosed in this news release was reviewed and approved by Donald J. Birak, Independent Consulting Geologist to the Company, a Qualified Person as defined by National Instrument 43-101 - Standards for Disclosure for Mineral Projects, Registered Member, Society for Mining, Metallurgy and Exploration (SME), Fellow, Australasian Institute of Mining and Metallurgy (AusIMM).
For more information, please contact:
Amanda Mallough
Director, Investor Relations
amallough@andeanpm.com
T: +1 647 463 7808
Caution Regarding Forward-Looking Statements
Certain statements and information in this release constitute "forward-looking statements" within the meaning of applicable U.S. securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws, which we refer to collectively as "forward-looking statements". Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe", "predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this release include, but are not limited to, statements and information regarding the Company's production, cost outlook and capital expenditure expectations for 2025 and the Company's expectations regarding its CAPEX and equipment overhaul program. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the Company's ability to carry on exploration and development activities; the Company's ability to secure and to meet obligations under property and option agreements and other material agreements; the timely receipt of required approvals and permits; that there is no material adverse change affecting the Company or its properties; that contracted parties provide goods or services in a timely manner; that no unusual geological or technical problems occur; that plant and equipment function as anticipated and that there is no material adverse change in the price of silver, costs associated with production or recovery. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and you are cautioned not to place undue reliance on forward-looking statements contained herein.
Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this release include, but are not limited to: risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations; results of initial feasibility, pre-feasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks relating to possible variations in reserves, resources, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment breakdowns, labour disputes (including work stoppages and strikes) or other unanticipated difficulties with or interruptions in exploration and development; the potential for delays in exploration or development activities or the completion of feasibility studies; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; risks related to commodity price and foreign exchange rate fluctuations; the uncertainty of profitability based upon the cyclical nature of the industry in which the Company operates; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental or local community approvals or in the completion of development or construction activities; risks related to environmental regulation and liability; political and regulatory risks associated with mining and exploration; risks related to the uncertain global economic environment; and other factors contained in the section entitled "Risk Factors" in the Company's MD&A for the three and twelve months ended December 31, 2024.
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements included in this release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
NON-GAAP FINANCIAL MEASURES, RATIOS, AND SUPPLEMENTARY FINANCIAL MEASURES
This news release includes "specified financial measures" within the meaning of National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"), specifically the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures described below. Management believes that the use of these measures assists analysts, investors and other stakeholders of the Company in understanding the costs associated with producing silver and gold, understanding the economics of silver and gold mining, assessing operating performance, the Company's ability to generate free cash flow from current operations, and for planning and forecasting of future periods.
The specified financial measures used in this news release do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers, even as compared to other issuers who may be applying the World Gold Council ("WGC") guidelines. Accordingly, these measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Operating Cash Costs
OCC includes total production cash costs incurred at the Company's mining operations, which form the basis of the Company's cash costs, less by-product revenue.
The following table provides a reconciliation of the OCC per ounce sold on a by-product basis to the Financial Statements:
| Golden Queen | Three months ended December 31, | Year ended December 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Costs of sales, as reported | $ | 20,144 | $ | 11,961 | $ | 87,144 | $ | 11,961 | ||||||
| Less: by-product silver credits | (3,398 | ) | (1,410 | ) | (14,378 | ) | (1,410 | ) | ||||||
| Total OCC | $ | 16,746 | $ | 10,551 | $ | 72,766 | $ | 10,551 | ||||||
| Divided by Au ounces sold | 10,898 | 5,849 | 48,478 | 5,849 | ||||||||||
| OCC ($ / Gold Ounces Sold | $ | 1,537 | $ | 1,804 | $ | 1,501 | $ | 1,804 | ||||||
All-in Sustaining Costs
AISC on a by-product basis per ounce is a non-GAAP ratio calculated as AISC on a by-product basis divided by ounces of gold sold. AISC on a by-product basis is a non-GAAP financial measure calculated as the aggregate of production costs as recorded in the consolidated statements of income (loss), refining and transport costs, cash component of sustaining capital expenditures, lease payments related to sustaining assets, corporate general and administrative expenses and accretion expenses. When calculating AISC on a by-product basis, all revenue received from the sale silver at Golden Queen are treated as a reduction of costs incurred. The Company believes that AISC represents the total costs of producing gold from current operations and provides the Company and other stakeholders of the Company with additional information relating to the Company's operational performance and ability to generate cash flow.
The following table provides a reconciliation of the AISC per ounce sold on a by-product basis to the Financial Statements:
| Three months ended December 31, | Year ended December 31, | |||||||||||||
| Golden Queen | 2024 | 2023 | 2024 | 2023 | ||||||||||
| OCC, net of by-product credits | $ | 16,746 | $ | 10,551 | $ | 72,766 | $ | 10,551 | ||||||
| General and administration-site and corporate allocation | 4,893 | (769 | ) | 13,504 | (769 | ) | ||||||||
| Sustaining capital expenditures | 1,583 | 337 | 11,030 | 337 | ||||||||||
| Accretion for decommissioning liability | 84 | 47 | 362 | 47 | ||||||||||
| Total AISC | $ | 23,306 | $ | 10,166 | $ | 97,662 | $ | 10,166 | ||||||
| Divided by Au ounces sold | 10,898 | 5,849 | 48,478 | 5,849 | ||||||||||
| AISC ($ / Gold Ounces Sold) | $ | 2,139 | $ | 1,738 | $ | 2,015 | $ | 1,738 | ||||||
Cash Gross Operating Margin
CGOM per silver equivalent ounce sold is calculated by subtracting the average cash cost of sale (cost of sales, allocated corporate administrative costs and business unit general and administration cost) per equivalent ounce sold from the average selling price per equivalent ounce. It is a measure of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers.
The following table provides a reconciliation of the CGOM per ounce to the Financial Statements and the most directly comparable IFRS measure:
| San Bartolome | Three months ended December 31, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Costs of sales, as reported | $ | 24,022 | $ | 30,051 | $ | 78,161 | $ | 93,931 | |||||
| General and administration-site and corporate allocation | 3,149 | 1,392 | 8,520 | 5,581 | |||||||||
| Total gross operating costs | $ | 27,171 | $ | 31,443 | $ | 86,680 | $ | 99,512 | |||||
| Divided by AgEq ounces sold (koz) | 1,368 | 1,456 | 4,394 | 4,643 | |||||||||
| Gross operating cost per AgEq ounce sold | $ | 19.86 | $ | 21.60 | $ | 19.73 | $ | 21.43 | |||||
| Average realized silver price per oz | $ | 30.95 | $ | 24.43 | $ | 28.88 | $ | 24.13 | |||||
| CGOM ($ / Silver Equivalent Ounces Sold) | $ | 11.09 | $ | 2.83 | $ | 9.15 | $ | 2.70 | |||||
Gross Margin Ratio
GMR is calculated by subtracting the cost of sale as reported in the income statement from the revenue of equivalent ounces divided by revenue from sales of equivalent ounces. GMR is a measure of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers.
The following table provides a reconciliation of the GMR per ounce to the most directly comparable IFRS measure:
| San Bartolome | Three months ended December 31, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Costs of sales, as reported | $ | 24,022 | $ | 30,051 | $ | 78,161 | $ | 93,931 | |||||
| Divided by AgEq ounces sold (koz) | 1,368 | 1,456 | 4,394 | 4,643 | |||||||||
| Costs of sales per AgEq oz sold | $ | 17.56 | $ | 20.64 | $ | 17.79 | $ | 20.23 | |||||
| Average realized silver price per oz | $ | 30.95 | $ | 24.43 | $ | 28.88 | $ | 24.13 | |||||
| GM per AgEq oz sold | $ | 13.39 | $ | 3.79 | $ | 11.09 | $ | 3.90 | |||||
| GMR per Silver Equivalent Ounces Sold (%) | 43.26 | 15.51 | 38.41 | 16.16 | |||||||||
Free Cash Flow
The Company has included free cash flow as a non-GAAP financial measure in this news release. The Company considers net cash provided from operating activities, less capital expenditures on property, plant and equipment, to be a measure that allows the Company and investors to evaluate the ability of the Company to generate cash flow. Accordingly, free cash flow is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The following table provides a reconciliation of free cash flow to the Financial Statements:
| Three months ended December 31, | Year ended December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided from operating activities | $ | 24,887 | $ | 10,262 | $ | 56,638 | $ | 9,307 | ||||||
| Less: Capital Expenditures on property, plant and equipment | (7,008 | ) | (3,402 | ) | (22,113 | ) | (6,017 | ) | ||||||
| Free cash flow | $ | 17,879 | $ | 6,860 | $ | 34,525 | $ | 3,290 | ||||||
EBITDA, Adjusted EBITDA and Adjusted EBITDA per share
EBITDA, Adjusted EBITDA, and Adjusted EBITDA per share are non-GAAP financial measure calculated by adjusting net income (loss) as recorded in the condensed interim consolidated statements of income (loss) for items not associated with ongoing operations. The Company believes that this generally accepted industry measure allows the evaluation of the results of income-generating capabilities and is useful in making comparisons between periods. This measure adjusts for the impact of items not associated with ongoing operations. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to the Financial Statements:
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income | $ | 1,706 | $ | 41,474 | $ | 19,224 | $ | 41,938 | |||||||||||
| Add: | |||||||||||||||||||
| Income taxes | (496 | ) | 79 | 9,691 | 4,386 | ||||||||||||||
| Finance costs | 2,492 | 860 | 7,642 | 2,014 | |||||||||||||||
| Depreciation and depletion | 4,833 | 1,703 | 20,134 | 5,231 | |||||||||||||||
| EBITDA | $ | 8,535 | $ | 44,116 | $ | 56,691 | $ | 53,569 | |||||||||||
| Less: Bargain purchase gain | - | (39,910 | ) | - | (39,910 | ) | |||||||||||||
| Add: Corporate development cost | 310 | 3,870 | 924 | 5,286 | |||||||||||||||
| Add: Other Income (loss) | 4,559 | (1,021 | ) | (214 | ) | (4,059 | ) | ||||||||||||
| Add: Foreign Exchange gain (loss) | 5,538 | (1,964 | ) | 5,533 | (4,347 | ) | |||||||||||||
| Adjusted EBITDA | $ | 18,942 | $ | 5,091 | $ | 62,934 | $ | 10,539 | |||||||||||
| | |||||||||||||||||||
| Adjusted EBITDA per share | |||||||||||||||||||
| Basic | 0.13 | 0.03 | 0.42 | 0.07 | |||||||||||||||
| Diluted | 0.12 | 0.03 | 0.41 | 0.06 | |||||||||||||||
| Weighted average number of common shares outstanding | |||||||||||||||||||
| Basic | 149,280,571 | 156,674,152 | 150,690,631 | 157,720,394 | |||||||||||||||
| Diluted | 152,410,880 | 177,410,660 | 154,046,907 | 178,107,059 | |||||||||||||||
Average Realized Gold and Silver Prices Per Ounce
The Company has included average realized prices as a supplementary non-GAAP financial measure in this news release. The Company quantifies average realized price per ounce as revenue per the Statement of Income (loss), bifurcated by gold or silver revenue and divided by ounces of gold or silver sold, respectively. Management uses this measure to monitor sales of silver and gold ounces against the average market silver and gold prices.
The following table provides a reconciliation of average realized prices to the most directly comparable IFRS measure:
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Silver revenue | $ | 42,872 | $ | 34,010 | $ | 136,351 | $ | 109,706 | |||||||
| Silver sold (k oz) | 1,385 | 1,392 | 4,727 | 4,541 | |||||||||||
| Average realized silver price per oz | $ | 30.96 | $ | 24.42 | $ | 28.84 | $ | 24.16 | |||||||
| Gold revenue | $ | 29,930 | $ | 14,781 | $ | 117,649 | $ | 15,587 | ||||
| Gold sold (oz) | 11,948 | 7,290 | 50,448 | 7,705 | ||||||||
| Average realized gold price per oz | $ | 2,505 | $ | 2,028 | $ | 2,332 | $ | 2,023 |
Liquid Assets
The Company believes this non-GAAP financial performance measure provides further transparency and assists analysts, investors, and other stakeholders of the Company in assessing the Company's financial position.
The following table provides a reconciliation of this non-GAAP financial metric to the Financial Statements:
| As at December 31, | |||||||
| 2024 | 2023 | ||||||
| Cash and cash equivalents | $ | 62,441 | $ | 64,907 | |||
| Add: Marketable securities and other investments | 38,541 | 5,162 | |||||
| Less: Revolving line of credit | 19,407 | - | |||||
| Liquid assets | $ | 81,575 | $ | 70,069 | |||
Consolidated Statements of Financial Position
(all amounts in US dollar, except share amounts)
| Notes | December 31, 2024 | December 31, 2023 | ||||||||||||||
| ASSETS | ||||||||||||||||
| Current | ||||||||||||||||
| Cash and cash equivalents | $ | 62,441 | $ | 64,907 | ||||||||||||
| Marketable securities and other investments | 6 | 38,541 | 5,162 | |||||||||||||
| Accounts receivables | 7 | 1,665 | 888 | |||||||||||||
| Inventories | 8 | 81,345 | 68,391 | |||||||||||||
| Other current assets | 9 | 9,143 | 15,251 | |||||||||||||
| Total current assets | 193,135 | 154,599 | ||||||||||||||
| | ||||||||||||||||
| Non-Current | ||||||||||||||||
| Property, plant and equipment | 10 | 106,392 | 92,353 | |||||||||||||
| Long term inventory | 8 | 3,941 | 3,047 | |||||||||||||
| Deferred income tax asset | 17 | 3,087 | 6,156 | |||||||||||||
| Other assets | 9 | 8,539 | 13,735 | |||||||||||||
| Total non-current assets | 121,959 | 115,291 | ||||||||||||||
| Total assets | $ | 315,094 | $ | 269,890 | ||||||||||||
| | ||||||||||||||||
| LIABILITIES | ||||||||||||||||
| | ||||||||||||||||
| Current | ||||||||||||||||
| Accounts payable and accrued liabilities | 11 | $ | 35,711 | $ | 29,719 | |||||||||||
| Short-term debt | 12 | 39,242 | 8,870 | |||||||||||||
| Current income taxes payable | 17 | 10,330 | 7,353 | |||||||||||||
| Other current liabilities | 14 | 4,395 | 8,285 | |||||||||||||
| Total current liabilities | 89,678 | 54,227 | ||||||||||||||
| | ||||||||||||||||
| Non-Current | ||||||||||||||||
| Long term debt | 12 | 31,075 | 38,588 | |||||||||||||
| Provisions for reclamation | 13 | 29,091 | 26,735 | |||||||||||||
| Deferred income tax liability | 17 | 14,032 | 13,430 | |||||||||||||
| Other liabilities | 14 | 179 | 1,544 | |||||||||||||
| Total non-current liabilities | 74,377 | 80,297 | ||||||||||||||
| Total liabilities | 164,055 | 134,524 | ||||||||||||||
| | ||||||||||||||||
| EQUITY | ||||||||||||||||
| Issued capital | 18 | 18,720 | 22,826 | |||||||||||||
| Accumulated other comprehensive loss | 390 | 390 | ||||||||||||||
| Contributed surplus | 18 | 2,876 | 2,322 | |||||||||||||
| Retained earnings | 129,053 | 109,828 | ||||||||||||||
| Total equity | 151,039 | 135,366 | ||||||||||||||
| Total liabilities and equity | $ | 315,094 | 269,890 | |||||||||||||
Consolidated Statements of Income
(all amounts in US dollar, except share amounts)
| Year Ended December 31, | ||||||||
| Notes | 2024 | 2023 | ||||||
| Revenue | 15 | $ | 254,000 | $ | 125,324 | |||
| Cost of sales | 16(a) | 165,305 | 105,892 | |||||
| Depreciation and depletion | 10 | 20,134 | 5,231 | |||||
| Gross operating income | 68,561 | 14,201 | ||||||
| General and administrative | 16(b) | 20,558 | 8,227 | |||||
| Share base compensation | 16(c) | 1,466 | 666 | |||||
| Exploration and evaluation | 16(c) | 4,661 | 5,286 | |||||
| Income from operations | 41,876 | 22 | ||||||
| Other income (loss) | 16(d) | 214 | 4,059 | |||||
| Finance costs | 16(e) | (7,642 | ) | (2,014 | ) | |||
| Purchase gain | - | 39,910 | ||||||
| Foreign exchange gain (loss) | (5,533 | ) | 4,347 | |||||
| Net income before income taxes | 28,915 | 46,324 | ||||||
| | ||||||||
| Income taxes | ||||||||
| Income tax expense | 17 | 9,691 | 4,386 | |||||
| Net income | $ | 19,224 | $ | 41,938 | ||||
| Earnings per share: | ||||||||
| Basic net income per share | 19 | 0.13 | 0.27 | |||||
| Diluted net income per share | 19 | 0.12 | 0.24 | |||||
| Weighted average number of common shares outstanding | ||||||||
| Basic | 150,690,631 | 157,720,394 | ||||||
| Diluted | 154,046,907 | 178,107,059 | ||||||
Consolidated Statements of Cash Flows
(in thousands of US dollars)
| Year ended December 31, | |||||||
| Notes | 2024 | 2023 | |||||
| | |||||||
| Net income (loss) | $ | 19,224 | $ | 41,938 | |||
| | |||||||
| Adjustments: | |||||||
| Depreciation and depletion | 10 | 20,134 | 5,231 | ||||
| Accretion on provision for reclamation | 13 | 2,812 | 4,758 | ||||
| Reclamation liability payments | (101 | ) | (385 | ) | |||
| Share-based compensation | 18(b) | 1,030 | 668 | ||||
| Unrealized derivative loss (gain) | 16(d) | 1,072 | (139 | ) | |||
| Loss on disposal of equipment | 16(d) | 518 | 516 | ||||
| Purchase gain | - | (39,910 | ) | ||||
| Net change in fair value of marketable securities | 6 | 525 | 1,257 | ||||
| Income tax expense | 17 | 9,691 | (1,172 | ) | |||
| Foreign exchange (gain) loss | 5,533 | (4,347 | ) | ||||
| Operating cashflow before changes in non-cash working capital | 60,438 | 8,415 | |||||
| Changes in non-cash working capital | 24(a) | (758 | ) | (3,193 | ) | ||
| Income tax paid | (3,042 | ) | 4,085 | ||||
| Net cash provided from operating activities | 56,638 | 9,307 | |||||
| Investing activities | |||||||
| Acquisition of Golden Queen | 14 | (4,606 | ) | (12,919 | ) | ||
| Expenditures on property, plant and equipment | 22(b) | (22,113 | ) | (6,017 | ) | ||
| Disposal on property, plant and equipment | 10 | 1,554 | - | ||||
| Investment in marketable securities and other investments | 6 | (35,116 | ) | (1,220 | ) | ||
| Net cash used in investing activities | (60,281 | ) | (20,516 | ) | |||
| Financing activities | |||||||
| Shares repurchased for cancellations | 18(a) | (4,582 | ) | (1,660 | ) | ||
| Draw down from revolving credit facility | 12 | 19,407 | - | ||||
| Proceeds from disposal of marketable securities | 6 | 1,700 | 139 | ||||
| Payment of equipment loan | 12 | (2,082 | ) | - | |||
| Payment of debt | 12 | (7,733 | ) | (7,799 | ) | ||
| Net cash provided from (used in) financing activities | 6,710 | (9,320 | ) | ||||
| Effect of exchange rate changes on cash | (5,533 | ) | 4,347 | ||||
| Net decrease in cash during the period | (2,466 | ) | (15,822 | ) | |||
| Cash, beginning of year | 64,907 | 80,729 | |||||
| Cash, end of year | $ | 62,441 | $ | 64,907 | |||
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