Andean Precious Metals Reports Third Quarter 2024 Operating and Financial Results

About this update from Andean Precious Metals Corp

ACHIEVED A RECORD $98.1 MILLION IN CASH AND INVESTMENTS DRIVEN BY RECORD $17 MILLION IN FREE CASH FLOW 1 AND $23.4 MILLION IN OPERATING CASH FLOW (All amounts in U.S. dollars unless otherwise indicated) Toronto, Ontario--(Newsfile Corp. - November 11, 2024) - Andean Precious Metals Corp. (TSXV: APM) (OTCQX: ANPMF) (" Andean " or the " Company ") is pleased to report its operating highlights and financial results for the three and nine months ended September 30, 2024. This news release should be read together with Andean's management discussion and analysis (" MD&A ") and condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 (the " Financial Statements ") which are available under the Company's profile on SEDAR+ ( www.sedarplus.ca ). Third Quarter 2024 Highlights Consolidated Results: Consolidated revenue of $68.4 million from sales at an average realized gold price of $2,413/oz and an average realized silver price of $31.40/oz. The Company strengthened its financial position in Q3 2024 ending the period with a record position of $98.1 million in cash, cash equivalents, marketable securities, and short-term investments. The Company generated record free cash flow 1 of $17.0 million despite additional capital expenditures ("CAPEX") incurred during the third quarter, supported by $23.4 million in operating cash flow. Gross profit of $21.4 million, mainly due to strong average realized gold and silver prices and lower operating costs at San Bartolomé driven by lower underlying cost of production. Net income of $8.2 million, EBITDA 1 and Adjusted EBITDA 1 were $20.1 million and $19.2 million, respectively. Consolidated Q3 2024 production of 29,284 gold equivalent ("AuEq") ounces or its equivalent of 2.3 million silver equivalent ("AgEq") ounces. Golden Queen Results: Golden Queen produced 14,025 AuEq ounces compared to 16,986 AuEq ounces in Q2 2024 . Golden Queen operating cash costs ("OCC") 1 of $1,557/oz and all-in sustaining costs ("AISC") 1 of $2,300/oz for the quarter. During Q3 2024, OCC was primarily impacted by lower production due to a temporary suspension of the crusher circuit at Goden Queen which impacted AuEq production. Furthermore, to improve reliability, the Company is investing in new equipment, with additional CAPEX aimed at enhancing performance through late 2024 and 2025. San Bartolomé Results: San Bartolomé produced 1.2 million AgEq ounces, compared to 1.07 million AgEq ounces in Q2 2024. Achieved a strong cash gross operating margin ("CGOM") 2 of $12.30 per ounce of silver equivalent sold and a gross margin ratio ("GMR") 2 of 46.56%, based on reported costs of sales of $18.87 million. Recovery increased in Q3 2024 to 83% when compared to 79% in Q2 2024. 2024 Guidance Update: The Company reaffirms its 2024 guidance of 60 koz AuEq at Golden Queen and 5.0 Moz AgEq at San Bartolomé (+/- 5%) . The Company expects consolidated production to be close to the lower end of the 2024 guidance. In line with the Company's 2024 production guidance, the Company anticipates a decline in OCC and AISC per gold ounce sold at Golden Queen for Q4 2024, when compared to Q3 2024, primarily driven by anticipated higher AuEq production during Q4 2024. The Company is increasing its 2024 GMR and CGOM guidance for San Bartolome to 30% and $7.00 respectively. For Golden Queen, its 2024 AISC guidance is increasing to $1,950 per ounce of gold sold arising from additional sustaining CAPEX incurred. Corporate Update: Strengthened management team with the addition of Dominik Kizek joining the Company as Vice President, Finance and Corporate Controller at the Toronto, Corporate office. Mr. Kizek is a CPA, CA and has 20 years of public company experience including previous roles at New Gold Inc., Battle North Gold Inc., and Agnico Eagle Mines Ltd. Health and Safety Performance : San Bartolomé recorded one lost time injury (LTI) in Q3 2024. Golden Queen reported zero LTIs for the nine months ending September 30, 2024, achieving 503 consecutive days without an LTI. Alberto Morales, Executive Chairman and CEO stated "Our third quarter has been marked by record financial performance, driven by strong gross margin growth and significant free cash flow generation. We ended the quarter with strong cash, cash equivalents, and investments of $98.1 million, which strengthens our balance sheet and provides a solid foundation for future growth opportunities. Operationally, it hasn't been without its challenges. At Golden Queen, we faced some setbacks due to necessary maintenance on aging equipment. We have responded with a proactive CAPEX program to address historical underinvestment in property, equipment, and processes. Since acquiring Golden Queen, we have appointed a new management team and launched a comprehensive maintenance, CAPEX, and operational overhaul program. This investment in upgrading key equipment and processes is a deliberate step to drive greater reliability and efficiency, with anticipated results beginning in Q4 and throughout 2025." Mr. Morales continued, "Our robust financial position provides the flexibility to pursue strategic initiatives and explore accretive expansion opportunities. While we expect to meet the lower end of our 2024 production guidance, optimizing operations remains a top priority. In addition, we are continuing with our goal to diversify our portfolio and expand in North America with high value assets. I'm also pleased to report continued safety milestones, with Golden Queen achieving over 500 days without a lost-time injury and no reportable environmental incidents, a testament to our team's commitment to maintaining high safety and environmental standards. Looking ahead, we remain committed to prudent cost management, operational resilience, and sustainable practices, which will drive both, our business growth, and the well-being of the communities in which we operate." Summary of Financial and Operating Results (In thousands except for net income per share and oz)   Q3 2024 Q3 2023 (a) Change YTD 2024 YTD 2023 (a) Change   Financial Performance   Revenue   $ 68,348 $ 38,174 $ 79% 181,197 $ 76,503 137% Cost of sales   41,635 30,892 35% 121,141 63,880 90% Depreciation and depletion   5,272 1,009 422% 15,301 3,528 334% Gross profit   21,441 6,273 242% 44,755 9,095 392% Net income (after tax)   8,210 76 10703% 17,518 464 3675% Net income per share               -Basic   0.05 0.00 100% 0.12 0.00 100% -Diluted   0.05 0.00 100% 0.11 0.00 100% Net cash provided from (used in) operating activities   23,444 8,661 171% 31,751 (955 ) 3425% Free cash flow   16,949 6,904 145% 16,646 (3,570 ) 566% EBITDA   20,058 4,280 369% 48,156 9,453 409% Adjusted EBITDA   19,202 6,799 182% 43,872 12,200 260% Capital expenditures   (15,937 ) (1,757 ) (807%) (24,547 ) (2,615 (839%) Ending cash and cash equivalents   58,074 76,823 (24%) 58,074 76,823 (24%) Marketable securities and investments   40,065 4,269 839% 40,065 4,269 839% Total cash and short-term investments     98,139      81,082      21%       98,139      81,092      21%                                           (In thousands except for metal price per oz)     Q3 2024       Q3 2023     Change       YTD 2024       YTD 2023 (g)     Change   Operating highlights               Production               Golden Queen               Silver (koz)   130 - 100% 395 - 100% Gold (oz)   12,366 - 100% 37,661 - 100% Total AuEq ounces produced (oz)   14,025 - 100% 42,501 - 100% San Bartolomé               Silver (koz)   1,118 1,190 (6%) 2,981 3,357 (11%) Gold (oz)   680 640 6% 1,128 1,270 (11%) Total AgEq ounces produced (koz)   1,176 1,242 (5%) 3,077 3,459 (11%) Consolidated               Golden Queen AgEq ounces (koz)   1,081 - 100% 3,464 - 100% San Bartolomé AgEq ounces (koz)   1,176 1,242 (5%) 3,077 3,460 (11%) Total Consolidated AgEq ounces produced (koz)   2,251 1,242 81% 6,536 3,460 89% Golden Queen AuEq ounces (oz)   14,025 - 100% 42,501 - 100% San Bartolomé AuEq ounces (oz)   15,259 15,426 (1%) 37,784 42,690 (12%) Total Consolidated AuEq ounces produced (oz)   29,284 15,426 90% 80,285 42,690 88%               Sales               Golden Queen               Silver (koz)   134 - 100% 394 - 100% Gold (oz)   12,018 - 100% 37,581 - 100% Total AuEq ounces sold (oz)   13,174 - 100% 42,405 - 100% San Bartolomé               Silver (koz)   1,080 1,552 (30%) 2,948 3,154 (7%) Gold (oz)   512 200 156% 920 415 122% Total AgEq ounces sold (koz)   1,119 1,568 (28%) 3,026 3,188 (5%) Consolidated ounces sold               Golden Queen AgEq ounces (koz)   1,057 - 100% 3,455 - 100% San Bartolomé AgEq ounces (koz)   1,119 1,568 (29%) 3,026 3,188 (5%) Total Consolidated AgEq ounces sold (koz)   2,176 1,568 39% 6,479 3,188 103% Golden Queen AuEq ounces (oz)   13,174 - 100% 42,405 - 100% San Bartolomé AuEq ounces (oz)   14,600 19,476 (25%) 37,021 39,333 (6%) Total Consolidated AuEq ounces sold (oz)   28,314 19,476 45% 79,426 39,333 102%               Average realized silver price ($/oz)   $ 31.40 $ 24.34 29% 27.97 $ 24.00 17% Average market silver price ($/oz)   $ 29.43 $ 23.57 25% 27.23 $ 23.40 16%               Average realized gold price ($/oz)   $ 2,413 $ 1,960 23% 2,278 $ 1,945 17% Average market gold price ($/oz)   $ 2,474 $ 1,952 27% 2,296 $ 1,931 19%   2024 Outlook and Guidance Production guidance The Company reaffirms its 2024 annual gold and silver equivalent production guidance for Golden Queen and San Bartolomé with production expected to be close to the low end of the guidance ranges: 2024 AuEq ounces Guidance 3 +/- 5% 2024 AgEq ounces Guidance 3 +/- 5% Golden Queen (koz) 60 5,429 San Bartolomé (koz) 55 5,000 Consolidated (koz) 115 10,429   Cost guidance The Company revises its full-year 2024 cost guidance for both San Bartolomé and Golden Queen. San Bartolomé 2024 full-year CGOM and GMR is now expected to be $7.00 and 30.00%, respectively, as the Company expects continued low operating expenses and cost savings that have been realized in the three- and nine-months ending September 30, 2024. In line with our higher CAPEX expenditures at Golden Queen, the Company now expects 2024 full-year AISC to be $1,950 per gold ounce sold. As noted above, the Company has implemented a significant CAPEX and equipment overhaul program in 2024 and anticipates greater reliability and improved operational best practices on a go forward basis. The increase in AISC for 2024 is primarily a result of the increased sustaining CAPEX investment. Initial 2024 Guidance +/- 5% Revised 2024 Guidance +/- 5% San Bartolomé CGOM (per AgEq oz) $ 3.88 $ 7.00 GMR (per AgEq oz) 19.50% 30.00% Golden Queen     OCC (per gold ounce sold, on a by-product credit basis) $ 1,500 $ 1,500 AISC (per gold ounce sold, on a by-product credit basis) $ 1,750 $ 1,950   Capital expenditures guidance The Company revises its full-year 2024 CAPEX guidance to $35.5 million. As noted above, the Company has implemented a significant CAPEX and equipment overhaul program in 2024 and anticipates significantly greater reliability and vastly improved operational best practices on a go forward basis as a result of these capital expenditures. In $'000     Initial 2024 Guidance +/- 5%     Revised 2024 Guidance +/- 5%   Sustaining capital   Golden Queen   $ 10,300 $ 13,000 San Bartolomé   3,400 4,500 Total sustaining capital   $ 13,700 $ 17,500       Growth capital       Golden Queen   $ 9,500 $ 16,000 San Bartolomé   840 2,000 Total growth capital   $ 10,340 $ 18,000       Total capital       Golden Queen   $ 19,800 $ 29,000 San Bartolomé   4,240 6,500 Total capital expenditures   $ 24,040 $ 35,500   Q3 2024 Conference Call and Webcast Tuesday, November 12 th , at 9:00 AM ET Participants may listen to the webcast by registering on our website at www.andeanpm.com or via the following link https://www.gowebcasting.com/13704 Participants may also listen to the conference call by calling North American toll free 1-844-763-8274, or 1-647-484-8814 outside the U.S. or Canada An archived reply of the webcast will be available for 90 days at : https://www.gowebcasting.com/13704 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 8 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). Mr. Birak has visited Manquiri's various sites frequently, most recently in January 2024. For more information, please contact: Amanda Mallough Director, Investor Relations [email protected] T: +1 647 463 7808 Neither the TSX Venture Exchange, Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 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 2024 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 nine months ended September 30, 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. The following is a description of the non-GAAP financial measures, non-GAAP ratios and supplementary financial measures used in this news release: (i) 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. (ii) 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. (iii) AIC represents AISC plus growth capital and non-sustaining exploration and evaluation costs. Non-sustaining exploration and evaluation costs represent costs associated with the Company's exploration portfolio. Certain other cash expenditures including tax payments, debt payments, dividends and financing costs are also not included in the calculation of AIC. The Company reports these measures on a per gold ounce sold basis. (iv) 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. (v) 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. (vi) EBITDA is defined as earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is a 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. A reconciliation of adjusted net income (loss) to the nearest IFRS measures is set out below. 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. (vii) Free cash flow is a non-GAAP financial measure calculated as cash provided by operating activities from continuing operations less property, plant and equipment additions. A reconciliation of free cash flow to the nearest IFRS measures is set out below. Management uses this measure to monitor the amount of cash available to reinvest in the Company and allocate for shareholder returns. (viii) Average realized price is a supplementary financial measure calculated by dividing the different components of precious metal sales by the number of ounces sold. Management uses this measure to monitor its sales of precious metal ounces against the average market gold price. OCC 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 September 30, Nine months ended September 30,   2024 2023 2024 2023 Costs of sales, as reported   $ 22,765 $ - $ 67,001 $ - Total OCC before by-product credits   22,765 - 67,001 - Less: by-product silver credits   (4,056 ) - (10,980 ) - Total OCC   18,709 $ - $ 56,021 $ - Divided by Au ounces sold   12,018 - 37,581 - OCC per Au sold, on a by-product basis   $ 1,557 $ - $ 1,491 $ -   AISC The following table provides a reconciliation of the AISC per ounce on a by-product basis to the Financial Statements:   Three months ended September 30, Nine months ended September 30, Golden Queen   2024 2023 2024 2023 OCC, net of by-product credits   $ 18,709 $ - $ 56,021 $ - General and administrative expenses 4   1,886 - 5,115 - Allocated corporate general and administrative expenses   1,852 - 3,431   Sustaining capital expenditures   5,114 $ - 9,447 - Accretion for decommissioning liability   83 - 278 - AISC   27,644 $ - $ 74,292 $ - Divided by Au ounces sold   12,018   37,581 - AISC per Au ounces sold, on a by-product basis   $ 2,300 $ - $ 1,977 $ -   AIC The following table provides a reconciliation of the AIC per ounce on a by-product basis to the Financials Statements: Golden Queen   Three months ended September 30, Nine months ended September 30,   2024 2023 2024 2023 AISC   $ 27,644 $ - $ 74,292 $ - Non-sustaining capital   7,541 - 11,188 - AIC   $ 35,185 - $ 85,480 $ - Divided by Au ounces sold   12,018 $ - 37,581 - AIC per Au ounce sold, on a by-product basis   $ 2,928 - $ 2,275 $ -   CGOM The following table provides a reconciliation of the CGOM per ounce to the Financial Statements and the most directly comparable IFRS measure: San Bartolomé   Three months ended September 30, Nine months ended September 30,   2024 2023 2024 2023 Costs of sales, as reported   $ 18,870 $ 30,893 $ 54,139 $ 63,881 Total cost of sales before by-product credits   18,870 30,893 54,139 63,881 General and administration-site   1,047 1,995 3,523 4,921 Allocated corporate general and administrative expenses   1,553 1,355 2,766 3,355 Total gross operating costs   $ 21,470 $ 34,243 $ 60,428 $ 70,532 Divided by AgEq ounces sold (koz)   1,124 1,568 3,026 3,188 Gross operating cost per AgEq ounce sold   $ 19.10 $ 21.84 $ 19.97 $ 22.13 Average realized silver price per oz 5   $ 31.40 $ 24.34 $ 27.97 $ 24.00 CGOM per AgEq oz   $ 12.30 $ 2.50 $ 8.00 $ 1.37   GMR The following table provides a reconciliation of the GMR per ounce to the most directly comparable IFRS measure: San Bartolomé   Three months ended September 30, Nine months ended September 30,   2024 2023 2024 2023 Costs of sales, as reported   $ 18,870 $ 30,893 $ 54,139 $ 63,881 Divided by AgEq ounces sold (koz)   $ 1,124 1,568 3,026 3,188 Costs of sales per AgEq oz sold   $ 16.79 $ 19.70 $ 17.89 $ 20.04 Average realized silver price per oz   $ 31.40 $ 24.34 $ 27.97 $ 24.00 GM per AgEq oz sold   $ 14.62 $ 4.64 $ 10.08 $ 3.96 GMR per AgEq oz sold   46.56% 19.06% 36.03% 16.50%   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 (used in) operating cash flow less capital expenditures 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 September 30, Nine months ended September 30,   2024 2023 2024 2023 Net cash flow from operating activities   $ 23,444 $ 8,661 $ 31,751 $ (955 ) Less:           Expenditures on property, plant and equipment (net of vendor financing)   (6,495 ) (1,757 ) (15,105 ) (2,615 ) Free cash flow   $ 16,949 $ 6,904 $ 16,646 $ (3,570 )   EBITDA and Adjusted EBITDA The Company has included EBITDA and Adjusted EBITDA as a non-GAAP financial measure in this news release. The Company excludes certain items from net income (loss) to provide a measure which allows the Company and investors to evaluate the results of the underlying core operations of the Company and its ability to generate cash flow. Accordingly, it 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 Adjusted EBITDA to the Financial Statements:   Three months ended September 30, Nine months ended September 30,   2024 2023 2024 2023 Net (loss) income   $ 8,210 $ 76 $ 17,518 $ 464 Add:           Income taxes   4,700 2,848 10,187 4,307 Finance costs   1,876 347 5,150 1,154 Depreciation and depletion   5,272 1,009 15,301 3,528 EBITDA   $ 20,058 $ 4,280 $ 48,156 $ 9,453 Add: Non-sustaining exploration and                             Corporate development cost   643 903 1,671 1,416 Add: Change in fair value of derivative                             contracts   (1,371 ) 175 (4,203 ) (797 ) Add: Change in fair value of marketable                             securities   (128 ) 1,441 (1,752 ) 2,128 Adjusted EBITDA   $ 19,202 $ 6,799 $ 43,872 $ 12,200   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) divided by ounce of gold or silver sold. 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 September 30, Nine months ended September 30,   2024 2023 2024 2023 Silver revenue   $ 38,110 $ 37,781 $ 93,478 $ 75,696 Silver sold (k oz)   1,213 1,552 3,342 3,154 Average realized silver price per oz   $ 31.40 $ 24.34 $ 27.97 $ 24.00                             Gold revenue   $ 30,238 $ 392 $ 87,719 $ 807 Gold sold (oz)   12,530 200 38,501 415 Average realized gold price per oz   $ 2,413 $ 1,960 $ 2,278 $ 1,945   Condensed Interim Consolidated Statements of Financial Position (in thousands of US dollars, Unaudited) Notes   September 30, 2024 December 31, 2023                   ASSETS                     Current   Cash and cash equivalents   $ 58,074 $ 64,907 Marketable securities and short-term investments 4   40,065 5,162 Accounts receivables   1,815 888 Inventories 5   72,408 68,391 Other current assets 6   13,707 15,251 Total current assets   186,069 154,599       Non-Current       Property, plant and equipment 7   108,095 92,353 Non-current inventories 5   3,159 3,047 Deferred income tax asset   4,517 6,156 Other assets 6   15,775 13,735 Total non-current assets   131,546 115,291 Total assets   $ 317,615 $ 269,890       LIABILITIES             Current       Accounts payable and accrued liabilities 8   $ 29,322 $ 29,719 Current portion of long-term debt 9   9,953 8,870 Current income taxes payable   9,101 7,353 Other liabilities 10   9,893 8,294 Total current liabilities   58,269 54,236       Non-Current       Long-term debt 9   60,989 38,588 Provisions for reclamation   30,223 26,726 Deferred income tax liability   17,542 13,430 Other liabilities 10   4,982 4,941 Total non-current liabilities   113,736 83,685 Total liabilities   172,005 137,921       EQUITY       Issued capital 14   18,539 22,826 Accumulated other comprehensive loss   390 390 Contributed surplus   2,732 2,322 Retained earnings   123,949 106,431 Total equity   145,610 131,969 Total liabilities and equity   $ 317,615 $ 269,890   Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (in thousands of US dollars, except per share amounts, unaudited)   Three months ended September 30 Nine months ended September 30 Notes   2024 2023 2024 2023                       Revenues 11   $ 68,348 $ 38,174 $ 181,197 $ 76,503 Cost of sales 12(a)   41,635 30,892 121,141 63,880 Depreciation and depletion 7   5,272 1,009 15,301 3,528 Gross profit   21,441 6,273 44,755 9,095           General and administrative 12(b)   6,254 2,017 14,480 6,651 Share based compensation   245 159 527 524 Exploration and corporate development   643 903 1,671 1,416 Income from operations   14,299 3,194 28,077 504           Other income (loss) 12(c)   550 (872 ) 4,773 3,038 Finance costs 12(d)   (1,876 ) (347 ) (5,150 ) (1,154 ) Foreign exchange gain (loss)   (63 ) 949 5 2,383 Net income before income taxes   12,910 2,924 27,705 4,771           Income tax expense 13   4,700 2,848 10,187 4,307 Net income and comprehensive income   $ 8,210 $ 76 $ 17,518 $ 464 Earnings per share           Basic net income per share 15   $ 0.05 0.00 0.12 0.00 Diluted net income per share 15   $ 0.05 0.00 0.11 0.00     Weighted average number of common shares outstanding Basic   149,317,556 157,023,512 151,096,013 158,072,974 Diluted   151,732,704 157,596,978 153,868,460 158,279,855   Condensed Interim Consolidated Statements of Cash Flows (in thousands of US dollars, unaudited)   Nine months ended September 30 Notes   2024 2023   Net income   $ 17,518 $ 464       Adjustments:       Depreciation and depletion 7   15,301 3,528 Accretion on provision for reclamation   1,225 998 Share-based compensation 14(b)   705 490 Accretion on deferred payment liability 12(d)   412 - Loss on disposal of equipment   376 - Unrealized derivative gain   (4,203 ) (797 ) Change in fair value of marketable securities 4   (1,752 ) 2,128 Reclamation payments   (207 ) (130 ) Current income taxes expense   7,643 4,410 Deferred income taxes expense (recovery)   2,544 (103 ) Foreign exchange gain   (5 ) (2,383 ) Operating cashflow before changes in non-cash working capital   39,557 8,605 Changes in non-cash working capital 19(a)   (7,806 ) (9,560 ) Net cash provided (used in) from operating activities   31,751 (955 ) Investing activities       Expenditures on property, plant and equipment 7   (15,105 ) (2,615 ) Net investment in marketable securities and other investments 4   (32,944 ) (1,198 ) Net cash used in investing activities   (48,049 ) (3,813 ) Financing activities       Shares repurchased for cancellations 14(a)   (4,582 ) (1,660 ) Drawn down of line of credit 9(c)   15,511 - Payment of debt 9   (1,469 ) - Proceeds from disposal of marketable securities   - 139 Net cash provided (used in) from financing activities   9,460 (1,521 ) Effect of exchange rate changes on cash   5 2,383 Net decrease in cash during the period   (6,833 ) (3,906 ) Cash, beginning of year   64,907 80,729 Cash, end of the period   $ 58,074 $ 76,823   ________________________ 1 Free cash flow, OCC, AISC, EBITDA and Adjusted EBITDA are measures of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section below for further detail, including a reconciliation of these metrics to the Financial Statements. 2 Cash gross operating margin (CGOM) per silver equivalent ounce sold and gross margin ratio (GMR) are measures of financial performance with no prescribed definition under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures" section below for further detail, including a reconciliation of these metrics to the Financial Statements. 3 Assuming gold equivalent ounces were calculated on a consolidated basis for the Company, the expected guidance of 10.4 million AgEq ounces would equate to approximately 115,00 AuEq ounces. AuEq production and AuEq sales both include silver production and sales. Equivalent ounces are calculated using the Company's average realized gold and silver prices during the referenced period. For 2024 guidance commodity price assumptions supporting this estimate are $21 per ounce of silver and $1,900 per ounce of gold. 4 For Q1 2024 general and administrative expenses reflect the operating segment information only. 5 Average realized silver price is specific to San Bartolomé revenue from sale of silver equivalent ounces. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229529

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