Key Highlights

  • Andean Precious Metals operates a silver-focused processing site in Bolivia and a heap leach gold mine in California, giving a compact team exposure to high-value metal sales.
  • Revenue per employee is elevated because precious metals command high prices per ounce, though metal price swings and sales timing can shift the figure sharply.
  • The outlook relies on ore Supply in Bolivia, grade and sequencing at Golden Queen, cost control, inventory sales and execution of planned listings and technical studies.

Company Overview and Business Model

Andean Precious Metals Corp. (TSX:APM) is a precious metals producer that acquires, explores, develops and operates mineral properties. The shares trade at a current share price of CAD 4.75.

Its San Bartolome processing Facility in Potosi, Bolivia, is run through the Subsidiary Empresa Minera Manquiri and treats oxide material to produce silver and gold. Golden Queen, the Soledad Mountain heap leach operation in Kern County, California, contributes mostly gold. Together the two sites produced 99,165 gold equivalent ounces in 2025, with 53,854 from San Bartolome and 45,311 from Golden Queen.

Ore supply at San Bartolome has been a focus. Agreements with the Bolivian state Mining entity COMIBOL provide access to up to 7 million tonnes of oxide ore, with first deliveries expected by the end of 2026,.

Fiscal 2025 delivered record Revenue of USD 359.8 million, Net Income of USD 118.2 million and adjusted EBITDA of USD 133.7 million.

Revenue Per Employee: A Key Measure of Operational Efficiency

Revenue per employee compares annual sales with the number of people on the payroll. For a precious metals producer, the figure is heavily influenced by metal prices, because each ounce sold carries a very high value relative to the labour needed to process it.

Based on the financial year ended December 31, 2025, Andean Precious Metals reported approximately USD 359.8 million in total revenue and roughly 548 employees and contractors across its operations and corporate offices. The company reports in US dollars, which have been converted at about 1.38 Canadian dollars per US dollar for comparison.

Revenue Per Employee = Annual Revenue ÷ Total Employees

Using these figures, Andean Precious Metals generated approximately CAD 917.49 thousand in annual revenue per employee.

The headcount combines employees, part-time staff at the operating subsidiaries and full-time consultants at the corporate offices, so a different definition would move the result.

Because revenue depends on metal prices and inventory sale timing, the ratio can swing without any change in productivity. Currency conversion is a further caveat, and the figure does not measure individual output.

What Drives the Company's High Revenue Per Employee?

A handful of structural factors explain why sales per person at Andean are comparatively high.

High Unit Value of Output: Gold and silver trade at prices that make each ounce worth far more than most industrial commodities, so modest production volumes translate into sizeable revenue.

Processing-Led Operations: San Bartolome concentrates on treating ore through an established plant, with throughput up 21% in 2025, which spreads fixed labour over larger volumes.

Heap Leach Efficiency: The California operation uses heap leaching, a method that needs fewer people per ounce than many underground alternatives, and planned leach pad and recovery circuit upgrades are designed to add capacity.

Lean Corporate Structure: Roughly 40 people staff the corporate offices.

Price Leverage: Realized prices averaged USD 4,171 per ounce for gold and USD 59.88 for silver in the fourth quarter of 2025.

Even so, high sales per person does not guarantee high profit. Operating costs, royalties, taxes, reinvestment and metal price reversals all determine what remains for shareholders.

Risks Investor Needs to Consider

Metal Price Volatility: Revenue and margins rise and fall with gold and silver prices, and a pullback would reduce the ratio quickly.

Ore Supply and Jurisdiction: San Bartolome depends on supply agreements and a stable operating framework in Bolivia, where policy and community relations can change.

Grade and Sequencing: Golden Queen output fell in the second quarter of 2026 due to mine sequencing and grade timing, a reminder that production can be uneven.

Cost Pressure: Golden Queen all-in sustaining costs ran at USD 2,159 per ounce in the second quarter of 2026, slightly above the full-year guidance range, although the year-to-date figure of USD 1,970 per ounce remained within it, and Inflation could widen the gap to realized prices.

Execution of Corporate Plans: A planned New York listing and updated technical work require time and attention, and delays are possible.

A concentration of output at only two sites means an operational interruption at either would affect consolidated results meaningfully.

What Does the ESG Investment Case Look Like?

For a producer with operations in Bolivia and California, sustainability performance affects permitting, community relations and operating continuity.

Environmental: The company applies environmental management systems and monitoring programs at its sites. Heap leach and tailings operations involve water and solution management responsibilities that require ongoing attention.

Social: Local engagement matters at both sites, and the company reported no material labour disruptions in 2025.

Governance: A board committee oversees health, safety, environment, social and sustainability matters.

A credible sustainability case will require consistent disclosure of safety and environmental results, which the company can strengthen by publishing more current operating metrics.

Latest Corporate Developments and Growth Catalysts

Second-quarter 2026 revenue was USD 67.6 million versus USD 73.7 million a year earlier, and the company recorded a net loss of USD 14.0 million as it built finished inventory. Year-to-date revenue of USD 230.8 million is about 70% higher than the prior-year period.

After the quarter closed, the company sold the deferred inventory of roughly 731,939 ounces of silver and 2,585 ounces of gold for about USD 56.3 million gross, which will be recognized as third-quarter revenue. Liquid assets were USD 170.8 million at June 30, 2026, and the revolving Credit balance was reduced to USD 14.5 million.

Production reached 52,730 gold equivalent ounces in the first half of 2026, up about 15%, in line with guidance of 100,000 to 114,000 ounces for the year. A buyback program allows repurchases of up to 4,000,000 shares through July 2027.

The company expects its shares to begin trading on the New York Stock Exchange in 2026, and an updated technical report for Golden Queen was scheduled for late September 2026.

What Investors Need to Watch Next

The next quarterly results should show how the sale of deferred inventory flows through revenue and whether the Working Capital build reverses. A confirmed release date was not located.

Cost trends at both sites merit attention, particularly Golden Queen sustaining costs and San Bartolome cash gross operating margin, which was USD 25.56 per silver equivalent ounce in the second quarter.

Corporate milestones also matter, including the New York listing, the Golden Queen technical update and the first oxide ore deliveries from COMIBOL agreements. Shares rose 3.26% in the latest session.

Shifts in headcount or metal prices will alter future revenue-per-employee comparisons.