GOLDEN, Colo., May 9, 2017 /PRNewswire/ -- Golden Minerals Company ("Golden Minerals", "Golden" or "the Company") (NYSE MKT and TSX: AUMN) today provided a business update and financial results for the first quarter ended March 31, 2017.
First Quarter Business Update
First Quarter Summary Results
The Company reported revenue of approximately $1.6 million in the first quarter 2017 related to the oxide plant lease and costs of approximately $0.5 million related to the services we provide under the lease, for a net margin of $1.1 million. Exploration expense of $0.5 million during the first quarter was related primarily to work at the Santa Maria and Rodeo properties as well as holding costs and allocated administrative expenses. Golden reported a net loss of $1.1 million in the first quarter 2017 compared to a net loss of $6.3 million in the year ago period. The year ago figure included, as noted above, non-cash losses of $1.8 million related to the Company's warrants and convertible note, plus a non-cash loss on debt extinguishment of $1.7 million relating to a $5.0 million convertible loan.
In addition to the $2.1 million cash balance at March 31, 2017, in April 2017 the Company received approximately $0.8 million representing final payment for the August 2016 sale of excess mining equipment, and in May 2017 received $0.3 million related to the farm out of a non-strategic exploration property as provided for in the 2016 purchase agreement with Santacruz Silver Mining Ltd. The Company also expects to receive $4.8 million in net operating margin from the lease of the oxide plant and an additional $0.3 million from the aforementioned exploration property farm out during the during the next 12 month period ending March 31, 2018. With the transactions referred to above and if no additional sales of common stock under the Company's ATM program occur, Golden projects it would end 2017 with a cash balance of $1.5 million and end March 31, 2018 with a cash balance of $1.1 million, based on the following forecasted expenditures during the next 12 months:
Additional information regarding first quarter 2017 financial results may 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 Delaware corporation based in Golden, Colorado. The Company is primarily focused on acquiring and advancing mining properties in Mexico with emphasis on areas near its Velardena processing plants.
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 relating to expectations regarding the oxide plant lease including, revenues and future processing capabilities, expectations related to our Santa Maria property, including planned work to optimize mining plans and planned exploration work and costs, expectations related to our Rodeo property, including planned exploration and other evaluation work and costs, and statements regarding our financial outlook, including anticipated income and expenditures for the remainder of 2017 and through the end of the first quarter 2018. These statements are subject to risks and uncertainties, including lower than anticipated revenue from the oxide plant lease as a result of delays or problems at the third party's mine or the oxide plant, earlier than expected termination of the lease or other causes, the reasonability of the economic assumptions at the basis of the Santa Maria PEA and Rodeo 43-101, changes in interpretations of geological, geostatistical, metallurgical, mining or processing information and interpretations of the information resulting from future exploration, analysis or mining and processing experience, new information from drilling programs or other exploration or analysis, unexpected variations in mineral grades, types and metallurgy, fluctuations in silver and gold metal prices, increases in costs and declines in general economic conditions, 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. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities and Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2016.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Director of Investor Relations
(1) Potentially dilutive shares have not been included because to do so would be anti-dilutive.