Welcome!

News Feed Item

Golden Minerals Reports 2013 Year-End Results

GOLDEN, Colo., Feb. 28, 2014 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") announces financial results for the full year ending December 31, 2013.

Golden Minerals Company News Release Logo

For the year ending December 31, 2013 Golden Minerals recorded revenue of $10.7 million and costs of metals sold of $17.5 million for a negative gross margin of $6.9 million related to the sale of metals at the Velardena Properties in Mexico.  The Company suspended mining operations at Velardena on June 19, 2013 due to depressed precious metals prices in order to conserve the asset until the Company is able to create new mining and processing plans that at then-current silver and gold prices indicate a sustainable cash margin.  The Company recorded a 2013 net loss of $240.4 million, of which $210.7 million is attributable to non-cash impairment charges, net of tax.  Approximately $204.2 million of the net impairment charges were recorded in the second quarter 2013 related to lower metals prices and to the suspension of mining and processing activities at Velardena in June 2013. The remaining $6.5 million in non-cash impairment charges, net of tax, were recorded during the fourth quarter 2013.

In addition to the negative gross margin and impairment charges noted above, the net loss includes $6.9 million for non-cash depreciation and amortization-related expense; $6.4 million related to Velardena shutdown, care and maintenance activities; $5.6 million for general and administrative expense; $4.6 million for exploration expense; $3.1 million for project expenses at Velardena; and $2.6 million of expense associated with the El Quevar project.  These expenses were partially offset by other operating income of $3.5 million related primarily to the sale of certain Peruvian exploration properties in the first quarter 2013 and $4.7 million related to current and deferred tax benefits.

The Company's cash and cash equivalents balance totaled $19.1 million at December 31, 2013 compared to $44.6 million at December 31, 2012. The $25.5 million decrease during 2013 resulted primarily from the cash expenses noted above plus $4.8 million in Velardena Properties capital and development expenditures and a decrease in working capital of $1.4 million primarily related to a reduction in inventories and receivables at the Velardena Properties.

Current Activities

We continue to evaluate plans for a restart of mining at the Velardena Properties, with the objective of implementing a plan that at then-current prices for silver and gold indicates a sustainable cash margin for mining.  We have been mapping and sampling underground veins containing higher grade shoots to verify mine modeling in support of restart planning.  We are analyzing the potential of mining from a combination of different veins at our Velardena Properties based primarily on grades and metallurgy. Additionally, we are reviewing alternative high-grade, narrow-vein mining methods to determine the most beneficial mining method for a potential restart.  In these efforts, we are using our own technical personnel as well as independent third party consultants.  During the first quarter 2014 we commenced a 5,000-meter underground drill program at the Velardena mine in order to obtain additional information to assist us in creating our restart plan.  The drill program is being conducted in known but previously undrilled areas located outside the current 43-101 resource.  We expect to receive the drill results in the second quarter 2014.  Separately, Golden continues to pursue outside feed sources for the processing facilities at the Velardena Properties.  Such a third-party agreement could permit an earlier restart of the Velardena facilities than would otherwise be the case. 

During the fourth quarter 2013, the Company began a planned 2,000-meter drilling program at the Los Azules exploration property located in Chihuahua, Mexico.  The Company announced high-grade gold drill intersections associated with this drilling program in a February 27, 2014 press release.  Based on program results to date, the Company has approved an additional $1.1 million for drilling focused on definition of a target gold and silver resource within the first 250 vertical meters along the strike of the vein beneath areas of historic mining activity.  Separately, the Company continues to seek a partner for its El Quevar silver project located in the Salta Province of Argentina.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado.  The Company is primarily focused on efforts to create a new mining and processing plan for its Velardena Properties, the advancement of its El Quevar advanced exploration property in Argentina, and the exploration of properties in Argentina and Mexico.

Forward-Looking Statements  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 laws, including statements regarding the continuing evaluation of plans for a restart of mining at the Velardena Properties and related technical work including review of alternative mining methods, underground drilling and the pursuit of outside feed sources for the processing facilities which might permit an earlier restart; the drilling program at Los Azules and continuation of efforts to seek a partner for the El Quevar silver project.  These statements are subject to risks and uncertainties, including unexpected events at the Velardena Operations, including higher than anticipated suspension or care and maintenance costs, accidents or damage to equipment or environmental or permitting problems; difficulties in or inability to develop a new operating plan for production at a sustainable cash positive margin, which could be caused by, among other things, unfavorable results from the underground drilling program, inability to confirm the new mine modeling and other technical information, variations in ore grade and relative amounts, grades and metallurgical characteristics of oxide and sulfide ores; labor or union problems; delays or failure in receiving or maintaining required  government approvals or permits; technical, permitting, mining, metallurgical or processing issues; inability to identify a treatment option to improve gold recoveries; further decreases  or insufficient increases in silver and gold prices; loss of and inability to adequately replace skilled mining and management personnel; interpretations and changes in interpretations of geologic information; volatility or other changes in the U.S. and Canadian securities markets; availability and cost of materials, supplies and electrical power required for mining operations and exploration; fluctuations in costs and general economic conditions; changes in political conditions, tax, environmental and other laws; and diminution of physical safety of employees in Mexico, and other conditions in the countries in which the Company operates.  Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Annual Report on Form 10-K for the year ended December 31, 2013.

For additional information please visit http://www.goldenminerals.com/ or contact:

Golden Minerals Company
Karen Winkler
(303) 839-5060
Director of Investor Relations

 

GOLDEN MINERALS COMPANY

CONSOLIDATED BALANCE SHEETS

(Expressed in United States dollars)













December 31,


December 31,





2013


2012





 (in thousands, except share data)

Assets





Current assets






Cash and cash equivalents


$   19,146


$    44,406


Investments 


-


242


Trade receivables


25


1,291


Inventories 


449


3,388


Value added tax receivable 


1,765


4,422


Prepaid expenses and other assets 


1,091


1,044



Total current assets


22,476


54,793

Property, plant and equipment, net 


32,375


280,905

Assets held for sale 


-


575

Goodwill 


-


11,666

Prepaid expenses and other assets 


30


163



Total assets


$   54,881


$  348,102

Liabilities and Equity





Current liabilities






Accounts payable and other accrued liabilities 


$     1,365


$      6,232


Other current liabilities 


4,405


7,074



Total current liabilities


5,770


13,306

Asset retirement and reclamation liabilities 


2,602


2,259

Deferred tax liability 


-


47,072

Other long term liabilities 


53


193



Total liabilities


8,425


62,830








Commitments and contingencies 





Equity 






Common stock, $.01 par value,







100,000,000 shares authorized; 43,530,833 and 43,265,833 shares issued and outstanding, respectively 


435


433


Additional paid in capital


494,647


493,175


Accumulated deficit 


(448,626)


(208,246)


Accumulated other comprehensive income loss


-


(90)



Shareholders' equity 


46,456


285,272



Total liabilities and equity 


$  54,881


$ 348,102

 

GOLDEN MINERALS COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Expressed in United States dollars)






The Years Ended December 31,





2013


2012





(in thousands except per share data)

Revenue:






Sale of metals 


$       10,680


$       26,086

Costs and expenses:






Cost of metals sold (exclusive of depreciation shown below) 


(17,534)


(33,369)


Exploration expense


(4,575)


(7,009)


El Quevar project expense


(2,628)


(5,115)


Velardena project expense


(3,052)


(7,912)


Velardena shutdown and care & maintenance costs


(6,374)


-


Administrative expense


(5,610)


(7,063)


Stock based compensation


(1,555)


(2,588)


Reclamation expense


(184)


(226)


Impairment of long lived assets 


(243,985)


-


Impairment of goodwill 


(11,666)


(58,489)


Other operating income, net


3,526


2,487


Depreciation, depletion and amortization


(6,927)


(10,012)



Total costs and expenses


(300,564)


(129,296)


Loss from operations


(289,884)


(103,210)

Other income and (expenses):






Interest and other income


444


2,543


Royalty income


-


373


Interest and other expense


-


(257)


(Loss) gain on foreign currency


(626)


512



Other total income and (expenses)


(182)


3,171


Loss from operations before income taxes


(290,066)


(100,039)


Income taxes benefit 


49,686


8,014


Net loss


$    (240,380)


$      (92,025)

Other comprehensive gain:






Unrealized gain on securities, net of tax


$               90


$               32


Comprehensive loss


$    (240,290)


$      (91,993)

Net loss per common share – basic and diluted






Loss


$          (5.61)


$          (2.45)

Weighted average Common Stock outstanding - basic and diluted


42,838,735


37,522,871






Logo - http://photos.prnewswire.com/prnh/20120803/LA52082LOGO

SOURCE Golden Minerals Company

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software sec...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...