CORRECTING and REPLACING Golden Minerals Reports First Quarter 2024 Financial Results
The release reads:
First Quarter Business Summary and Subsequent Events
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The Company restarted silver-gold production at the Company’s Velardeña Properties (Durango State,
Mexico ) inDecember 2023 , but stopped mining at the end ofFebruary 2024 and stopped processing mineralized material at the end ofMarch 2024 , after determining the initial performance of the mine and processing plant did not achieve the expected mine production ramp-up schedule or initial expected plant concentrate production results. Operational issues at the mine were caused by a combination of insufficient experienced miners, and issues with mine ventilation and mining equipment availability. -
On
March 27, 2024 ,Golden announced that Barrick Gold Corporation had notified the Company that it was withdrawing from the 2020 Earn-In Agreement between the two parties related to the Company’s El Quevar silver project (Salta Province ,Argentina ). The agreement’s termination was effective onApril 20, 2024 and the El Quevar project has now reverted back into the full control ofGolden Minerals .Golden now intends to focus on exploration activities at El Quevar as funding allows. -
On
April 29, 2024 , two of Golden’sMexico subsidiaries,Minera William S.A. de C.V. (“Minera William”) andMinera Labri S.A. de C.V. (“Minera Labri”) entered into certain asset purchase and sale agreements with a privately held Mexican company whereby Minera William and Minera Labri agreed to sell certain mining concessions, equipment, land parcels and other assets to the buyer in exchange for an aggregate purchase price of$5.5 million in cash, plus Value-Added Tax (“VAT”). The assets being sold include the Velardeña andChicago mines, both of the Company’s oxide and sulfide processing plants and related equipment. Under the terms of the purchase and sales agreements:-
On
April 29, 2024 , the buyer paid a non-refundable advance payment of$1.0 million in cash to the Company; -
On
May 20, 2024 , the buyer shall pay$2.0 million in cash, plus VAT (including VAT on the advance payment), to the Company, and -
On
July 1, 2024 , the buyer shall pay$2.5 million in cash, plus VAT, to the Company.
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On
Although the Company believes the transaction will be completed, there can be no assurance that the transaction will be completed on the terms described or at all.
First Quarter Financial Summary
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Revenue from discontinued operations was
$1.2 million in the first quarter 2024 and included sales of concentrate, slag material and doré from the Velardeña discontinued operations. Revenue was$4.2 million in the first quarter 2023, which was related to the sale of metals in doré from the Rodeo mine (Durango State,Mexico ). -
Net operating margin from discontinued operations (defined as revenue from the sale of metals less cost of metals sold) was negative
$1.7 million in the first quarter 2024, which was related to the Velardeña discontinued operations. Net operating margin was positive$0.2 million in the first quarter 2023, which was related to the sale of metals in doré from the Rodeo mine. -
Cash and equivalents balance as of
March 31, 2024 was$2.4 million , compared to$3.8 million onDecember 31, 2023 . -
Zero debt as of
March 31, 2024 , unchanged fromDecember 31, 2023 . -
Net loss was
$4.6 million or$0.32 per share in the first quarter 2024, compared to a net loss of$3.3 million or$0.47 per share in the first quarter 2023.
Cash Inflows and Expenditures
Cash expenditures during the three months ended
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$1.0 million in general and administrative expenses; -
$0.5 million in exploration expenditures; -
$0.1 million in care and maintenance costs at the El Quevar project, net of zero reimbursements from Barrick; -
$1.7 million of net operating margin from the Velardeña discontinued operations (defined as revenue from the sale of metals less the cost of metals sold); and -
$0.2 million in changes in working capital (mainly due to an increase in accounts receivable associated with the sales made near the end of the first quarter).
The above expenditures were offset by cash inflows of
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$2.0 million from the collection of VAT receivables from the Mexican Government; and -
$0.1 million of proceeds received from the sale of non-core assets in working capital.
Capital Resources and 12-Month Financial Outlook
The Company does not currently have sufficient resources to meet its expected cash needs during the twelve months ended
As of
Quarterly Report on Form 10-Q
The Company’s consolidated financial statements and management’s discussion and analysis, as well as other important disclosures, may be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended
About
Forward-Looking Statements
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, such as statements regarding (i) buyer’s scheduled payments to the Company pursuant to the purchase and sale agreements, (ii) the Company’s anticipated near-term capital needs, and potential sources of capital; (iii) the Company’s plans to undertake further exploration activities El Quevar project, as funding allows; (iv) expectations pertaining to the recovery of VAT refunds from the Mexican government; (v) projected revenue and spending for the twelve months ending
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(303) 839-5060
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