Golden Minerals Company (“Golden Minerals”, “Golden” or the
“Company”) (NYSE American: AUMN and TSX: AUMN) today provided
financial results and a business summary for the quarter ending
March 31, 2022.
First Quarter Financial Results – Highlights
(All currency expressed in approximate USD)
- Revenue of $7.5 million yielding a net operating margin of $3.2
million in the first quarter 2022, vs. $1.8 million revenue and a
net operating margin of $0.2 million in the first quarter 2021,
both from mining operations at the Company’s Rodeo gold-silver mine
in Mexico.
- $11.7 million cash and cash equivalents balance as of March 31,
2022, compared to $12.2 million as of December 31, 2021.
- Net loss of $0.00 per share or $0.3 million in the first
quarter 2022, compared to a net loss of $0.02 per share or $3.2
million in the first quarter 2021.
First Quarter Business Summary
- Produced 3,608 payable gold ounces and 13,944 payable silver
ounces (3,787 gold equivalent (“AuEq”) ounces) with total cash
costs, net of silver by-product credits, per payable ounce of gold
of $1,164.1
- Sold 4,040 AuEq oz. in doré, at average prices (before selling
and refining costs) of $1,888/oz Au and $24.24/oz Ag. Doré
inventory at March 31, 2022 consists of 375 payable oz. Au and
1,379 payable oz. Ag.
- Reported grades processed of 3.1 grams per tonne (“g/t”) gold
and 11.6 g/t silver during the quarter.
- Processed at an average rate of 527 tonnes per day (“tpd”)
during the quarter.
- Continued limited scale test mining activities at Velardeña for
use in final optimization of a bio-oxidation plant design and for
use in additional flotation separation studies; also testing mining
methods to determine whether the Company is able to control mining
dilution. Results are expected in the next few months, after which
time the Company anticipates making a decision on constructing the
BIOX plant and restarting the operation.
1 Gold equivalents are based on actual gold and silver prices
realized during the first quarter 2022: $1,888/oz Au and $24.24/oz
Ag.
Warren Rehn, President and Chief Executive Officer of Golden
Minerals, commented, “Rodeo continues to operate according to plan
providing cash flow for our exploration and development projects at
Yoquivo, Sarita Este, and of course, Velardeña. We are on track to
recommend a start-up plan for Velardeña within the next few months.
I am very pleased with our progress establishing Golden Minerals as
a sustainable gold and silver producer.”
Quarterly Conference Call and Webcast
Management will be hosting a conference call and webcast on
Wednesday, May 11, 2022 at 11:00 a.m. Eastern Daylight Time (“EDT”)
to discuss first quarter 2022 financial results and recent project
updates. You are invited to join the webcast at Golden Minerals Q1
2022 Earnings Call. Please plan to join 10 minutes prior to the
start time.
The webcast will also be available for replay on the Golden
Minerals website at http://www.goldenminerals.com after May 11,
2022.
First Quarter 2022 Financial Results
The Company reported revenue of $7.5 million from doré sales,
$4.3 million costs of metals sold and $3.2 million in net operating
margin in the first quarter 2022, all related to gold-silver
production at the Rodeo mine. Exploration expenditures were $1.7
million during the quarter and included a 2,500-meter RC drill
program at Rodeo that finished delineating the mineralized area on
the south side of the current pit, as well as other general
exploration and holding costs related to the Company’s portfolio of
exploration projects. Velardeña care and maintenance expenses were
$0.5 million in the quarter and include costs related to test
mining in advance of a production decision. El Quevar project
expense was $0.1 million and includes costs of exploration and
evaluation activities, care and maintenance, and property holding
costs, net of reimbursements from Barrick Gold under the terms of
an Earn-In Agreement. Administrative expenses totaled $1.3 million
and include costs associated with being a public company that are
incurred primarily by the Company’s corporate activities in support
of the Rodeo Property, the Velardeña Properties, the Yoquivo
project and the balance of the Company’s exploration portfolio. The
Company recorded a net loss of $0.3 million or $0.00 per share.
Twelve Month Financial Outlook
The Company ended the first quarter 2022 with a cash balance of
$11.7 million and anticipates receiving approximately $7.0 to $9.0
million in net operating margin (defined as revenue from the sale
of metals less costs of metals sold) from the Rodeo operation
during the 12 months ending March 31, 2023, assuming average gold
and silver prices during that period of $1,800 and $25.00 oz,
respectively. The Company is also scheduled to receive the final
installment of $2.0 million due from Fabled Silver Gold Corp. in
December 2022 under the terms of an agreement for the sale of the
Company’s Santa Maria project.
The Company’s currently forecasted expenditures during the 12
months ending March 31, 2023, apart from Rodeo costs of metals sold
which are included in the net operating margin forecast, total
approximately $10.0 million as follows:
- $4.3 million on exploration activities and property holding
costs associated with the Company’s portfolio of exploration
properties located in Mexico, Argentina and Nevada, including
project assessment and evaluation costs relating to additional
exploration at Rodeo, Yoquivo and other properties;
- $1.1 million at the Velardeña Properties for care and
maintenance;
- $0.4 million at the El Quevar project to fund care and
maintenance and property holding costs, net of reimbursement from
Barrick;
- $3.7 million in general and administrative costs; and
- $0.5 million due to an increase in working capital.
Additional information regarding first quarter 2022 financial
results can be found in the Company’s 10-Q Quarterly Report which
is available on the Golden Minerals website at
www.goldenminerals.com.
About Golden Minerals
Golden Minerals is a growing gold and silver producer based in
Golden, Colorado. The Company is primarily focused on producing
gold and silver from its Rodeo Mine and advancing its Velardeña
Properties in Mexico and, through partner funded exploration, its
El Quevar silver property in Argentina, as well as acquiring and
advancing selected mining properties in Mexico, Nevada and
Argentina.
Financial Statements
CONDENSED CONSOLIDATED BALANCE
SHEETS
(US Dollars,
unaudited)
December 31, March 31,
2021
2022
(Restated) (in thousands, except share data)
Assets Current assets Cash and cash
equivalents $
11,730
$
12,229
Short-term investments
91
67
Inventories, net
1,963
1,608
Value added tax receivable, net
1,475
1,290
Prepaid expenses and other assets
1,122
1,145
Total current assets
16,381
16,339
Property, plant and equipment, net
6,563
6,627
Other long-term assets
693
747
Total assets $
23,637
$
23,713
Liabilities and Equity Current
liabilities Accounts payable and other accrued liabilities $
4,337
$
3,509
Deferred revenue
1,094
1,469
Other current liabilities
625
721
Total current liabilities
6,056
5,699
Asset retirement and reclamation liabilities
3,639
3,569
Other long-term liabilities
246
353
Total liabilities
9,941
9,621
Commitments and contingencies
Equity Common stock, $.01 par value, 350,000,000 shares
authorized; 163,927,992 and 162,804,612 shares issued and
outstanding respectively
1,639
1,628
Additional paid in capital
540,427
540,518
Accumulated deficit
(528,370
)
(528,054
)
Shareholders' equity
13,696
14,092
Total liabilities and equity $
23,637
$
23,713
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(US dollars,
unaudited)
Quarter Ended March 31,
2022
2021
(in thousands, except per share data) Revenue:
Sale of metals $
7,506
$
1,778
Total revenue
7,506
1,778
Costs and expenses: Cost of metals sold (exclusive of
depreciation shown below)
(4,322
)
(1,536
)
Exploration expense
(1,666
)
(781
)
El Quevar project expense
(117
)
(106
)
Velardeña care and maintenance costs
(536
)
(199
)
Administrative expense
(1,272
)
(1,548
)
Stock based compensation
(150
)
(429
)
Reclamation expense
(69
)
(66
)
Other operating income (expense), net
388
199
Depreciation and amortization
(65
)
(155
)
Total costs and expenses
(7,809
)
(4,621
)
Loss from operations
(303
)
(2,843
)
Other income (expense): Interest and other expense,
net
(3
)
(360
)
Other income
25
52
Gain (loss) on foreign currency transactions
50
(79
)
Total other income (loss)
72
(387
)
Loss from operations before income taxes
(231
)
(3,230
)
Income taxes
(85
)
52
Net Loss $
(316
)
$
(3,178
)
Net income (loss) per common share — basic Loss $
(0.00
)
$
(0.02
)
Weighted average Common Stock outstanding — basic
(1)
162,511,278
160,442,137
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended, and applicable Canadian securities legislation, including
statements regarding the results of limited scale test mining
activities at Velardeña; the decision to construct the BIOX plant
and restart the Velardeña operation; anticipated net operating
margin from the Rodeo operation during the 12 months ending March
31, 2023; the receipt of expected final installment due to Golden
Minerals from Fabled Silver Gold Corp.; and forecasted expenditures
during the 12 months ending March 31, 2023. These statements are
subject to risks and uncertainties, including the overall impact of
the COVID-19 pandemic, including the potential future re-suspension
of non-essential activities in Mexico, including mining; lower than
anticipated revenue or higher than anticipated costs at the Rodeo
mine, and mine testing activities at Velardeña; declines in general
economic conditions; changes in political conditions, in tax,
royalty, environmental and other laws in the United States, Mexico
or Argentina and other market conditions; and fluctuations in
silver and gold prices. Golden Minerals assumes no obligation to
update this information. Additional risks relating to Golden
Minerals may be found in the periodic and current reports filed
with the SEC by Golden Minerals, including the Company’s Annual
Report on Form 10-K for the year ended December 31, 2021.
For additional information please visit
http://www.goldenminerals.com/.
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version on businesswire.com: https://www.businesswire.com/news/home/20220510005543/en/
Golden Minerals Company Karen Winkler, Director of Investor
Relations (303) 839-5060
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