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
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, provided the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” used open source attack tools that are free and available for download by anybody. Attendees learned where to find and how to operate these tools for the purpose of testing their own IT infrastructure. The...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...