Click here to close now.


News Feed Item

Golden Minerals Announces Second Quarter 2014 Results

GOLDEN, Colo., Aug. 6, 2014 /PRNewswire/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) today announced results for the quarter ending June 30, 2014.

Golden Minerals Company News Release Logo

Financial Results

The Company reported a net loss of $5.0 million in the second quarter 2014 compared to a net loss of $217.8 million in the second quarter 2013, with the difference attributable primarily to a $238.0 million impairment charge recorded in the second quarter 2013.  The Company reported zero gross margin in the current quarter as compared to a negative gross margin of $3.6 million in second quarter 2013, due to a suspension of mining activity at the Velardena Properties between mid-June 2013 and June 30, 2014.  Velardena care and maintenance costs were $1.2 million in the current quarter compared to $2.3 million in the second quarter 2013, with the difference due to the inclusion of shut down expenses in the 2013 figure.  Exploration expenses were $1.7 million in the second quarter 2014 compared to $1.2 million in the year ago period, with the difference attributable primarily to 2014 drilling at the Company's Los Azules property in Mexico.  Administrative expenses were $1.1 million in the current quarter compared to $1.6 million in the second quarter 2013.   

The Company's cash and short-term investments balance on June 30, 2014 was $10.4 million as compared to $19.1 million on December 31, 2013.  The $8.7 million decrease is due primarily to the expenditure of $2.5 million in care and maintenance and $1.0 million in drilling costs at our Velardena Properties; $2.3 million in other exploration expenditures; $0.8 million in maintenance and property holding costs at the El Quevar project; and $2.8 million in general and administrative expenses; offset in part by a reduction in working capital of $0.7 million primarily related to an increase in accounts payable for expenditures associated with drilling programs at the Velardena Properties and the Los Azules exploration project in Mexico.

Velardena Properties

During the second quarter 2014, Golden Minerals continued to evaluate plans for a restart of operations at the Velardena Properties, with the objective of implementing a plan that yields a sustainable cash margin for operations.  On June 18, 2014 the Company announced it would restart mining activities in July 2014, with plans to begin processing mined material during the fourth quarter 2014.  Mining started on July 1, 2014, and when mining and processing are ramped up through the second quarter 2015, the Company anticipates processing roughly an average of 285 tonnes per day at cash costs of between $12 to $15 per payable ounce of silver, net of gold, lead and zinc by-product credits.  At that time, the Company expects output of approximately 1.0 to 1.2 million silver equivalent ounces per annum (including silver and gold but excluding lead and zinc, and calculated at 60:1 silver to gold).  Restart plans assume silver and gold prices of $20 and $1,250 per ounce, respectively, and show positive cash flow for the Company after the second quarter 2015.  Please refer to the accompanying Form 10-Q for additional details related to Velardena's restart plan.

Also during the second quarter 2014, Golden completed a 9,000-meter drilling program at Velardena testing vein systems located largely outside the current 43-101 resource estimate.  An independent engineering firm participated in the preparation of the mining plan. Drill results have guided restart plans in which mining is expected to focus on the San Mateo, Terneras and Roca Negra veins.

Exploration and Other Updates

During the first quarter 2014, the Company completed an initial 2,000-meter drilling program at the 233-hectare Los Azules property in Chihuahua, Mexico to test down dip targets on the previously mined vein system.  Based upon phase one results, the Company subsequently conducted a phase two program and has now completed a total of 6,900 meters in 29 holes drilled from both surface and underground.  The Company has suspended drilling pending phase two results which it expects to receive in the third quarter 2014.

During the second quarter Golden continued efforts to actively solicit a partner to advance the El Quevar project located in Salta, Argentina.  Additionally, the Company continues to review strategic business opportunities, focusing on development or operating properties in North America, including Mexico.

Financial Outlook

The Company expects to have sufficient funding to continue its business strategy through 2014, ending the year with a cash balance of approximately $2.0 million.  The Company intends to spend approximately $8.5 million on the following amounts during the third and fourth quarters of 2014:  approximately $3.0 million of negative gross margin and start-up costs related to the restart of Velardena, $1.0 million of capital expenditures for mill improvements and slusher equipment; $0.5 million for ongoing maintenance and holding costs at El Quevar; $1.5 million on other exploration activities and property holding costs; and $2.0 million on general and administrative costs and $0.5 million in increased working capital.

Additional information regarding second quarter 2014 financial results may be found in the Company's 10-Q Quarterly Report which is available on the Golden Minerals website at

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado.  The Company is primarily focused on restarting operations at 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

NON GAAP Financial Measures

Cash costs, after by-product credits, per payable ounce of silver produced is a non-GAAP financial measure that is widely used in the mining industry.   Under generally accepted accounting principles in the United States (US GAAP), there is no standardized definition of cash cost, after by-product credits, per payable ounce of silver produced, and therefore the Company's forecasted cash costs may not be comparable to similar measures reported by other companies. 

Forecasted cash costs were calculated based on the mining plan, and include all forecasted direct and indirect costs associated with the physical activities that would generate concentrate 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.  Forecasted 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 Velardena mine.  By-product credits include forecasted revenues from gold, lead, and zinc contained in the products sold to customers.  Cash costs, after by-product credits, were divided by the quantity of payable silver forecasted to be produced during the period to arrive at cash costs, after by-product credits, per payable ounce of silver produced.   Cost of sales is the most comparable financial measure, calculated in accordance with US GAAP, to cash costs.  As compared to cash costs, cost of sales includes adjustments for changes in inventory and excludes net revenue from by-products and third-party related treatment, refining and transportation costs, which are reported as part of revenue in accordance with US GAAP.

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 legislation, including statements regarding including the anticipated timing of restart activities at the Velardena Properties and ramp-up, mining and processing rates, veins to be mined and dilution levels; expected output amounts of salable and payable silver equivalent ounces; cash costs per ounce of payable silver net of by-product credits; expected cash outlay for re-start and ramp-up activities; anticipated positive net cash flow at the Velardena Properties and incremental cash for the Company at current silver and gold prices; anticipated expenditures in the second half of 2014 and anticipated year-end 2014 cash and cash equivalents.  These statements are subject to risks and uncertainties, including changes in geological, geostatistical and other interpretations of the information from drill programs and previous mining experience ; reliability of metallurgical testing results and changes in interpretation; unfavorable interpretations of geologic information; delays or problems in commencing mining or processing or the ramp-up of same; mining or processing problems; mining and processing costs in excess of those anticipated; unexpected variations in mineral grades, types and metallurgy; fluctuations in relevant metal prices; technical, permitting, mining, metallurgical, recovery or processing issues; problems that delay or reduce underground mine and stope construction; operational changes or problems; failure of mined material to meet expectations; failure to meet expectations regarding mining and processing rates, saleable metals, cash costs, cash flow at the Velardena Properties and incremental cash for the Company; failure of veins mined to meet expectations; higher than anticipated cash outlays to resume operations; fluctuations in silver, gold, zinc and lead prices, costs and general economic conditions; unanticipated expenses including potential expenses on strategic business opportunities; changes in political conditions, in tax, environmental and others laws in Mexico, and financial market conditions.  Golden Minerals Company assumes no obligation to update this information.  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 Company's Annual Report on Form 10-K for the year ended December 31, 2013.

Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839-5060
[email protected]




(Expressed in United States dollars)


June 30,

December 31,



(in thousands, except share data)


Current assets

Cash and cash equivalents 

$  10,400

$         19,146

Trade receivables






Value added tax receivable, net 



Prepaid expenses and other assets 



Total current assets



Property, plant and equipment, net 



Prepaid expenses and other assets, non-current 



Total assets

$  44,121

$         54,881

Liabilities and Equity

Current liabilities

Accounts payable and other accrued liabilities 

$     1,747

$           1,365

Other current liabilities 



Total current liabilities



Asset retirement obligation 



Other long term liabilities



Total liabilities



Commitments and contingencies 


Common stock, $.01 par value,

100,000,000 shares authorized; 43,530,833 shares issued and outstanding for both periods 



Additional paid in capital



Accumulated deficit 



Shareholder's equity 



Total liabilities and equity 

$  44,121

$         54,881




(Expressed in United States dollars) (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,





(in thousands, except share data)


Sale of metals 

$               -

$         4,467

$                -

$       10,297

Costs and expenses:

Costs applicable to sale of metals (exclusive 

of depreciation shown below) 





Exploration expense





El Quevar project expense





Velardena project expense





Velardena shutdown and care & maintenance costs





Administrative expense





Stock based compensation





Reclamation and accretion expense





Impairment of long lived assets





Impairment of goodwill





Other operating income, net





Depreciation, depletion and amortization





Total costs and expenses





Loss from operations





Other income and (expense):

Interest and other income, net





Gain on foreign currency





Total other income (expense)





Loss from operations before income taxes





Income tax benefit





Net loss

$       (5,043)

$   (217,805)

$     (10,701)

$   (224,065)

Comprehensive loss:

Unrealized gain on securities





Comprehensive loss

$       (5,043)

$   (217,805)

$     (10,701)

$   (223,975)

Net loss per common share – basic


$         (0.12)

$          (5.09)

$          (0.25)

$          (5.23)

Weighted average common stock outstanding - basic (1)





(1)  Potentially dilutive shares have not been included because to do so would be anti-dilutive.

Logo -

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
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
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.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.