GOLDEN, Colo., Feb. 25, 2016 /PRNewswire/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) has today announced financial results for the full year ending December 31, 2015.
The Company reported a net loss of $25.4 million for the full year 2015, related primarily to an impairment charge of $13.2 million to the net book value of the Velardena Properties mineral resource, compared to a net loss of $18.8 million in 2014. The Company wrote down the mineral resource value pursuant to a valuation assessment related to the shutdown of mining and milling activities that occurred in November 2015. The remaining difference in net loss between 2015 and 2014 is primarily attributable to the following:
The Company's December 31, 2015 $4.1 million cash and cash equivalents balance is $4.5 million lower than the year-end 2014 $8.6 million amount. The primary uses of cash during 2015 were as follows:
These items were offset in part by:
With the $4.1 million cash balance at December 31, 2015 and assuming we receive $4.8 million of net cash flow from the oxide plant lease in 2016 and the remaining principal and interest under the Sentient loan are converted into the Company's common stock prior to the loan's October 27, 2016 maturity date, the Company plans to spend approximately $8.4 million during 2016, resulting in a balance of cash and cash equivalents of approximately $0.5 million at December 31, 2016:
Additional information regarding full year 2015 financial results may be found in the Company's Annual Report on Form 10-K which is available on the Golden Minerals website at www.goldenminerals.com.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on acquiring and advancing mining properties near its Velardena processing plants and the exploration of properties in Mexico and Argentina.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and applicable Canadian securities legislation, including statements regarding including the Company's planned activities and expenditures during 2016, anticipated cash and cash equivalents balance at year-end 2016, and net cash flow expected to be received in 2016 under a third party lease of the Velardena oxide mill. These statements are subject to risks and uncertainties, including: suspensions of existing approvals and permits or delays in obtaining or failure to obtain required approvals and permits; lower than anticipated net cash flow from the oxide plant lease due to problems at the third party's mine or at the oxide plant resulting in less than anticipated production; termination of the oxide plant lease earlier than anticipated; unexpected increases in the costs of holding exploration properties or maintaining the Velardena and El Quevar properties on care and maintenance; increases in costs and declines in general economic conditions; unfavorable results of exploration on the San Luis del Cordero property or other properties; and changes in political conditions, in tax, royalty, environmental and other laws in Mexico, and financial market conditions. Golden Minerals assumes no obligation to update this information except as required by law. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
Golden Minerals Company
Director of Investor Relations
1 Silver equivalent ounces include silver and gold but exclude lead and zinc and are calculated at a ratio of 70 silver ounces to 1 gold ounce.
To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/golden-minerals-reports-year-end-2015-results-300226400.html
SOURCE Golden Minerals Company