Investors

Overview

Golden Minerals Company offers investors leverage to gold and silver prices. We are transitioning from exploration company to producer and intend to begin profitable gold production at our Rodeo gold project (Durango State, Mexico) in early 2021. We hold independently-prepared Preliminary Economic Assessments (NI 43-101-compliant) on four of our precious metals projects that total $164M in net present value – with all PEA’s prepared based upon gold and silver prices well below current levels. The Rodeo gold project presents a low capital cost/high profit margin opportunity to realize significant cashflow that can be used to self-fund production start-up at the larger silver/gold Velardeña Properties. Repeated testing of sulfide concentrates using bio-oxidation processing technology demonstrates improved gold recovery from pyrite concentrates and potential for Velardeña to become a highly profitable operation over at least a 10-year mine life. Both Velardeña and our district-scale El Quevar silver project in Salta, Argentina present additional upside in the form of significant resource expansion and thus value appreciation.

Why Invest in Golden Minerals Company?

Cash Flow

  • ~$4-5M operating margin from oxide mill lease in Mexico (2016-2019); approximately $3.5-4M expected in 2020
  • 2021 projected after-tax cash flow from Rodeo of $12.6 Million2 

Resources

  • M&I resources:  82M oz AgEq1  
  • Inferred resources:  49M oz AgEq

Value

  • $164M total PEA values -- with all PEAs assuming Au/Ag prices well below current levels
  • Velardeña PEA $85.9M NPV (2020)2
  • El Quevar PEA $44.9M NPV (2018)2 
  • Rodeo PEA $22.5M NPV (2020) 2
  • Santa Maria PEA  $10.6M NPV (2018)2
  • Velardeña mine & 300 tpd sulfide mill on stand-by

Cash

$8.7M (as of 9/30/2020) 

Debt

None

Project
Pipeline

Argentina:  El Quevar
Mexico:  Velardeña, Rodeo, Yoquivo, Santa Maria, Flechas
USA:  Sand Canyon (Nevada)

Experience

Experienced management and directors; strong technical staff

1   Silver equivalents calculated using Ag:Au ratios of 74:1 (Santa Maria), 80.6:1 (Velardeña) and 113:1 (Rodeo).

 PEA and resource information is shown below. Rodeo 2021 anticipated after tax cash flow assumes Sep. 30, 2020 market prices of $1887/oz Au and $23.73/oz Ag.

Velardeña:

PEA and Resource: Tetra Tech, PEA NI 43-101 Technical Report, issue date May 8, 2020. PEA assumes metal prices of $1,324/oz Au and $16.23/oz Ag.
Metal prices for NSR cutoff & AgEq calcs are 3-year trailing average as of December 2019: (US) $16.30/troy oz Ag, $1,305/troy oz Au, $0.99/lb Pb and $1.27/lb Zn. AgEq = 80.6:1.

El Quevar:

PEA:  Wood Group. NI 43-101 Technical Report on PEA. Sept. 4, 2018.  NPV calculated using 5% discount rate.
Resource:  Amec Foster Wheeler E&C Services Inc. a Wood Group PLC company. NI 43-101 Technical Report on Updated Mineral Resource Estimate. Feb. 26, 2018.

Santa Maria:

PEA:  Tetra Tech. NI 43-101 Technical Report & Updated PEA. Sept. 14, 2018.  NPV calculated using 5% discount rate.

Rodeo:

PEA:  Mineral Resources Engineering, effective date April 1, 2020, assumes metal prices of $1,622/oz Au and $14.38/oz Ag. Resource:  Tetra Tech, NI 43-101 Technical Report – Mineral Resource Estimate, Jan. 26, 2017.

 

Capital Structure

Capital Structure as of November 5, 2020

Shares Issued & Outstanding  152M
    Warrant Shares  23M
    Restricted Stock Units  4M
    KELTIP Units 1 4M
Fully Diluted Shares  182M
Cash and Short-Term Investments 2  $8.7M

1 Key Employee Long Term Incentive Plan
2 As of September 30, 2020. 

All figures rounded to the nearest million except cash.

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