GOLDEN, CO - /BUSINESS WIRE/ - November 10, 2022 – 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 September 30, 2022.
Third Quarter Financial Results - Highlights
(All currency expressed in approximate USD)
Third Quarter Business Summary
1 Gold equivalents are based on actual gold and silver prices realized during the third quarter 2022. “Cash costs, net of by-product credits, per payable gold ounce” is a non-GAAP financial measure. For further information, see “Non-GAAP Financial Measures” below.
Third Quarter 2022 Financial Results
The Company reported revenue of $5.3 million from doré sales, $4.4 million costs of metals sold and $0.9 million in net operating margin in the third quarter 2022, all related to gold-silver production at the Rodeo mine. Exploration expenses, including property holding costs and allocated administrative expenses, totaled $2.4 million during the quarter. Exploration expenses were primarily related to costs to increase the capacity of the tailings dam at Velardeña to support processing of the Rodeo mineralized material, costs in support of the potential restart of Velardeña, exploration activities at the Yoquivo project in Mexico, and exploration activities at the Sarita Este project in Argentina. Velardeña care and maintenance expenses were $0.4 million in the quarter and include expenses related to care and maintenance as a result of the suspension of mining and processing activities in November 2015. El Quevar project expense was $0.2 million during the third quarter and includes holding and evaluation costs for the Yaxtché deposit at El Quevar, net of reimbursements from Barrick Gold under the terms of an Earn-In Agreement. Administrative expenses totaled $0.9 million and include costs associated with being a public company that were incurred primarily by the Company’s corporate activities in support of the Rodeo Property, the Velardeña Properties, the El Quevar project and the Company’s exploration portfolio. The Company reported a net loss of $2.7 million or $0.02 per share.
Twelve-Month Financial Outlook
The Company ended the third quarter of 2022 with a cash balance of $6.5 million and anticipates receiving approximately $5.5 to $6.5 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 September 30, 2023, assuming average gold and silver prices during that period of $1,800/oz and $25.00/oz, respectively. Current commodity prices have recently fallen below these thresholds and there is no assurance that our expectations regarding future prices will be realized. At average gold and silver prices of $1,700/oz and $20.00/oz, respectively, our expected net operating margin for the 12 months ending September 30, 2023 would decrease by approximately $1.5 million. The Company also anticipates receiving $1.75 million from Fabled Silver Gold Corp. related to the sale of the Company’s Santa Maria property during the 12-month period.
Currently forecasted expenditures during the 12 months ending September 30, 2023, apart from Rodeo costs of metals sold which are included in the net operating margin forecast, total approximately $9.6 million as follows:
Additional information regarding third 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.
Quarterly Conference Call and Webcast
Management will be hosting a conference call and webcast this morning, Thursday, November 10, 2022, at 11:00 a.m. Eastern Time (“ET”) to discuss third quarter 2022 financial results and recent project updates. You are invited to join the webcast at Q3 2022 AUMN Quarterly Conference Call and Webcast. 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 November 10, 2022.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(US Dollars, unaudited)
* See Note 3, “Notes to the Condensed Consolidated Financial Statements” in the Form 10-Q.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars, unaudited)
Non-GAAP Financial Measures
“Total cash costs, net of by-product credits, per payable gold ounce,” is a non-GAAP measure, and includes all direct and indirect operating cash costs associated with the physical activities that would generate doré products for sale to customers, including mining to gain access to mineralized materials, mining of mineralized materials and waste, milling, third-party related treatment, refining and transportation costs, on-site administrative costs and royalties. Total cash costs do not include depreciation, depletion, amortization, exploration expenditures, reclamation and remediation costs, sustaining capital, financing costs, income taxes, or corporate general and administrative costs not directly or indirectly related to the Rodeo project. By-product credits include revenues from silver contained in the products sold to customers during the period. “Total cash costs, net of by-product credits”, are divided by the number of payable gold ounces generated by the plant for the period to arrive at “Total cash costs, net of by-product credits, per payable gold ounce.”
“Cost of metals sold”, reported as a separate line item in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022, is the most comparable financial measure, calculated in accordance with GAAP, to “Total cash costs, net of by-product credits”. “Cost of metals sold” includes adjustments for changes in inventory and excludes third-party related treatment and refining costs, which are reported as part of revenue in accordance with GAAP. The following table presents a reconciliation for the three and nine months ended September 30, 2022, between the non-GAAP measure of “Total cash cost, net of by-product credits” to the most directly comparable GAAP measure, “Cost of metals sold”.
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 Company’s plans to complete a maiden resource estimate for the Yoquivo gold-silver project; anticipated net operating margin from the Rodeo operation during the 12 months ending September 30, 2023; the receipt of the expected final installment due to Golden Minerals from Fabled Silver Gold Corp.; and forecasted expenditures during the 12 months ending September 30, 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; continued volatility in prices for gold and silver; results of mine testing activities at Velardeña; the Company’s ability to recover VAT receivable in Mexico and the timing of such recovery; declines in general economic conditions; and changes in political conditions, in tax, royalty, environmental and other laws in the United States, Mexico or Argentina and other 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 SEC by Golden Minerals, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
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For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler, Director of Investor Relations
SOURCE: Golden Minerals Company