Golden Minerals Reports Third Quarter 2024 Financial Results
19 Novembro 2024 - 7:25PM
Business Wire
Golden Minerals Company (“Golden Minerals,” “Golden” or the
“Company”) (NYSE-A: AUMN and TSX: AUMN) has today released
financial results for the quarter ending September 30, 2024. (All
figures are in approximate U.S. dollars.)
Third Quarter Financial Summary
- The Company recorded no revenue related to gold and silver in
doré, but recorded revenue of $0.1 million from the sale of metals
at the Velardeña Properties during the third quarter 2024. This
revenue relates to concentrate shipments that were completed
earlier in 2024 but were finalized during the third quarter 2024.
In the third quarter 2023, the Company recorded $2.5 million of
revenue which was related to the sale of metals at its Rodeo
mine.
- The Company recorded $1.6 million of net other operating income
during the third quarter 2024 which was related primarily to the
sale of Silex Argentina and Minera Labri. In the third quarter
2023, the Company recorded $0.1 million of net other operating
income.
- Cash and cash equivalents balance was $1.8 million as of
September 30, 2024, compared to $3.8 million as of December 31,
2023.
- Zero debt as of September 30, 2024, unchanged from December 31,
2023.
- Net gain was $0.2 million or $0.01 per share in the third
quarter 2024, compared to a net loss of $3.2 million or $0.38 per
share in the third quarter 2023.
Cash Inflows and Expenditures
Cash expenditures during the nine months ended September 30,
2024 totaled $10.1 million and included:
- $5.9 million from the net loss on discontinued operations and
assets held for sale, which includes $4.6 million of net operating
costs, $0.9 million of severance payments made to employees in
Mexico who were terminated during the nine months ended September
30, 2024, and $0.4 million in care and maintenance costs at the El
Quevar project net of zero reimbursements from Barrick;
- $3.0 million in general and administrative expenses; and
- $1.2 million in exploration expenditures.
The above expenditures were partially offset by cash inflows of
$8.1 million from the following:
- $4.5 million of proceeds received from the sale of the assets
held for sale and discontinued operations as follows;
- $2.5 million of proceeds from the sale of the Velardeña and
Chicago mines, sulfide plant, mine equipment and mine
concessions
- $1.0 million of proceeds from the sale of Velardeña Plant 2 and
water wells
- $1.0 million of proceeds from the first two payments on the
sale of Silex Argentina
- $2.6 million from the collection of value added tax (“VAT”)
receivables from the Mexican Government;
- $0.4 million of proceeds received from the sale of Minera
Labri; and
- $0.6 million of other working capital changes.
Liquidity and Capital Resources
The Company does not currently have sufficient resources to meet
its expected cash needs during the twelve months ending September
30, 2025. At September 30, 2024, the Company had current assets of
approximately $2.5 million, including cash and cash equivalents of
approximately $1.8 million. On the same date, it had accounts
payable and other current liabilities of approximately $4.5
million, which includes $1.0 million in deferred revenue for the
sale of the Velardeña oxide plant and water wells. As previously
disclosed, the Company ceased mining at the Velardeña mines in
Mexico in the first quarter 2024, and subsequently sold the mines
and certain related assets. As of November 15, 2024, the Company is
still owed $1.7 million, plus VAT, of the purchase price for the
remaining Velardeña assets. The Company’s only near-term
opportunity to generate cash flow to meet its expected cash
requirements is from the sale of assets, equity or other external
financing. With the receipt of the proceeds from the sale of Silex
Argentina, and the cash payments received to date for the Yoquivo
Transaction, as of November 15, 2024 the Company has cash and cash
equivalents of approximately $3.6 million and accounts payable of
approximately $1.2 million. In the absence of additional cash
inflows, the Company anticipates that its cash resources will be
exhausted in the second quarter of 2025.
Golden Minerals will need to secure additional sources of
capital. In order to satisfy the Company’s projected general,
administrative, exploration and other expenses through September
30, 2025, it will need approximately $1.5 to $3.5 million in
capital inflows. These capital inflows may take the form of asset
sales, equity or other external financing activities, collection of
the outstanding amount due on the Velardeña sale, or from other
sources.
The Company is taking actions to address its liquidity and
financial stability concerns. As a part of these efforts, the
Company is pursuing various objectives, including the receipt of
the unpaid proceeds from the Velardeña sale, completion of the sale
of the Yoquivo gold-silver project, or obtaining equity or other
external financing. The Company also continues to evaluate other
strategic transactions. The proceeds from these transactions would
be directed toward addressing the Company’s ongoing operating
expenses and satisfying its liabilities, while seeking to maximize
any remaining value for its shareholders. If the Company is unable
to obtain additional resources, it may be forced to cease
operations and liquidate.
As previously disclosed, the Company has received notices from
the NYSE American LLC (the “NYSE American”) that it is not
compliant with the NYSE American listing standards. The Company has
until December 6, 2024 (the “Compliance Deadline”) in order to
regain compliance. The Company is continuing its efforts to regain
compliance; however, if the Company is unable to regain compliance
by the deadline, the Company expects the NYSE American to initiate
delisting proceedings.
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 September 30, 2024. This Form 10-Q is available on
the Company’s website at Golden Minerals Company - SEC Filings. It
has also been filed with the U.S. Securities and Exchange
Commission on EDGAR at www.sec.gov/edgar and with the Canadian
securities regulatory authorities on SEDAR at www.sedar.com.
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) the Company’s anticipated near-term
capital needs, and potential sources of capital; (ii) the
anticipated timing of exhaustion of the Company’s cash resources in
the absence of additional cash inflows; (iii) the Company being
forced to cease operations and liquidate if it is unable to obtain
additional cash resources; (iv) the Company’s capital inflow needs
to satisfy the Company’s projected general, administrative,
exploration and other expenses through September 30, 2025; (v) the
Company’s plans for and the timing of the Company’s receipt of the
outstanding amount owed of the purchase price for remaining
Velardeña assets; and (vi) the NYSE American staff initiating
delisting proceedings against the Company if it is not in
compliance with the NYSE American’s continued listing standards by
the Compliance Deadline. These statements are subject to risks and
uncertainties, including the failure by the buyer of the remaining
Velardeña assets to make the required payments due; whether the
Company continues to be listed on the NYSE American; the inability
of the Company to obtain sufficient capital to meet its
obligations; increases in costs and declines in general economic
conditions; changes in political conditions, in tax, royalty,
environmental and other laws in the United States, Mexico or
Argentina and other market conditions; and fluctuations in silver
and gold prices. 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
Securities & Exchange Commission by Golden Minerals, including
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2023.
Follow us at www.linkedin.com/company/golden-minerals-company/
and https://twitter.com/Golden_Minerals.
For additional information, please visit
http://www.goldenminerals.com/.
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