Golden Minerals Announces Third Quarter Results and $2.0 Million in Exploration Property Sales
Published : November 08, 2012
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Golden Minerals Announces Third Quarter Results and $2.0 Million in Exploration Property Sales

GOLDEN, Colo., Nov. 8, 2012 /CNW/ - Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) announces results for the quarter ending September 30, 2012 and $2.0 million in fourth quarter exploration property sales.


Financial Results

For the third quarter 2012, Golden Minerals recorded a 45 percent increase in revenue to $7.1 million from the sale of metals at its Velardena Operations in Mexico, as compared to revenue of $4.9 million in the second quarter 2012. Also during the third quarter, the Company recorded a $57.2 million non-cash reduction in goodwill related to its September 2011 transaction with ECU Silver Mining Inc. The goodwill was initially established primarily as a result of recognizing, for accounting purposes, a deferred tax liability for the difference between the fair value of the Velardena property acquired in the ECU transaction and the Mexican tax basis of the property. Since September 2011, an approximate 20% decrease in forecasted future gold and silver prices and certain changes to assumptions related to the long term operating plan for the Velardena Operations has resulted in the reduction of goodwill. There was no reduction in the carrying value of the long-lived Velardena property.

The Company's cash and short term investments balance increased by $30.9 million during the quarter to $54.0 million as of September 30, 2012. The increase is due to $36.9 million in net proceeds received from a registered offering and private placement of our securities during the quarter, offset by the expenditures described above plus capital expenditures of $2.0 million and an increase in net working capital of $2.2 million, both related primarily to the Velardena Operations.


The Company is continuing plans for a two-phased expansion of the Velardena Operations. Phase One is underway and the Company expects production to achieve a rate of 850 tonnes throughput per day during the third quarter 2013. The Company is continuing work on its plans for a subsequent Phase Two expansion to 1,150 tonnes per day throughput.

During the third quarter 2012 we began to open access to new stopes for mining. Due to the acquisition of additional equipment and the arrival of equipment from Argentina, we are increasing mine development activity. We accessed non-exploited ore zones in the Santa Juana mining area in the third quarter 2012 and expect to increase ore extraction in non-exploited vein areas during the fourth quarter 2012.

We have completed the installation and commissioning of a new flotation circuit at the end of the oxide plant leach circuit. The new flotation circuit is intended to recover gold and silver from material that has been leached in the oxide plant, and it is currently producing a lead/silver concentrate that will be sold with the lead/silver concentrate produced at the sulfide plant. The Company is performing additional test work to determine whether the remaining gold bearing pyrites in the tailings are best recovered using flotation or gravity concentration methods. During the third quarter 2012 we continued to advance the San Mateo ramp, which is expected to connect with the lower Santa Juana workings in the fourth quarter 2013. This connection will provide new access to facilitate ore removal from the lower Santa Juana workings and other veins that are accessed by the San Mateo ramp unit. We also have continued to improve ventilation and ore control procedures in the mine and to optimize the oxide and sulfide plants. We expect to complete a significant expansion of the laboratory at about year-end 2012, which will permit improved plant response to changing metallurgical conditions.

In early November 2012 the Company began a 2,000-meter, 10-hole drilling program at the Quevar Norte and Sur areas at El Quevar in northwestern Argentina, focused on outlining new mineralized zones. Also, the Company has identified two prospects with potential to host economic precious metal mineralization on currently held ground in Mexico, unrelated to Velardena or our holdings in Zacatecas. The Company plans to drill one of these prospects in 2012.

Exploration Property Sales

In October 2012, the Company closed on the sale of 100 percent of its interest in two of its exploration subsidiaries, Silex Bolivia S.A. and Minera Memisa S.A., to a subsidiary of Sumitomo Corporation for $250,000.

In early November 2012, the Company completed the sale of four claims in Mexico to Exploraciones Mineras Parreña, a subsidiary of Fresnillo PLC. The claims total over 16,000 hectares and are located approximately 40 kilometers southwest of the city of Fresnillo. The sales price of the transaction was approximately $1.7 million.

These asset sales will be included in the Company's fourth quarter 2012 results.

Additional information regarding third quarter 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, primarily engaged in the ramp-up and expansion of existing production at the Velardena operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina.

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 of the timing of anticipated production ramp-up at the Velardena Operations to 850 tonnes per day and 1,150 tonnes per day throughput rates; the timing of anticipated opening of new stopes for mining, plant optimization efforts, the sufficiency of mobile mining and other equipment on site for mine development activities, the potential expansion of Velardena Operations throughput rates to 1,150 tonnes per day using autoclave processing and the possible timing and processing components of such an expansion; and planned exploration drilling. These statements are subject to risks and uncertainties, including timing and availability of external funding to complete the planned expansion to 1,150 tonnes per day throughput; unexpected events at the Velardena Operations, including further delays or problems in mine development and plant optimization; operational changes or problems; variations in ore grade and relative amounts, grades and metallurgical characteristics of oxide and sulfide ores; delays or failure in receiving required board or government approvals or permits; technical, permitting, mining, metallurgical or processing issues; failure to achieve anticipated production and improvements in head grades, recoveries and concentrate production and quality at the Velardena Operations; delays in or failure to realize anticipated benefits of plant optimization efforts; failure to realize anticipated metal production increases from the addition of the bulk flotation process at the oxide plant; failure to realize anticipated production or increases in production from the anticipated increase in mine development and the commencement of mining in new stopes; loss of and inability to adequately replace skilled mining and management personnel; possible disputes with customers or joint venture partners; failure of undeveloped ore or veins to meet expectations; 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 silver, gold, zinc and lead prices, 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, 2011.

Golden Minerals Company
Jerry W. Danni
(303) 839-5060
Executive Vice President



(Expressed in United States dollars)


September 30,

December 31,



(in thousands, except share data)


Current assets

Cash and cash equivalents

$ 53,561

$ 48,649




Trade receivables






Value added tax receivable



Prepaid expenses and other assets



Total current assets



Property, plant and equipment, net






Prepaid expenses and other assets



Total assets

$ 359,727

$ 413,015

Liabilities and Equity

Current liabilities

Accounts payable and other accrued liabilities

$ 6,034

$ 8,070

Other current liabilities



Total current liabilities



Asset retirement obligation



Deferred tax liability



Other long term liabilities



Total liabilities



Commitments and contingencies


Common stock, $.01 par value,

100,000,000 shares authorized; 42,578,333 and 35,690,035 shares issued and outstanding, respectively



Additional paid in capital



Accumulated deficit



Accumulated other comprehensive loss



Parent company's shareholder's equity



Total liabilities and equity

$ 359,727

$ 413,015



(Expressed in United States dollars) (Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,





(in thousands, except share data)


Sale of metals

$ 7,063

$ -

$ 18,384

$ -

Costs and expenses:

Costs applicable to sale of metals (exclusive

of depreciation shown below)





Exploration expense





El Quevar project expense





Velardena project expense





Administrative expense





Severence and acquisition related cost





Stock based compensation





Reclamation and accretion expense





Goodwill Impairment





Other operating income & (expenses), net





Depreciation, depletion and amortization





Total costs and expenses





Loss from operations





Other income and expenses:

Interest and other income





Royalty income





Interest expense





Gain (loss) on foreign currency





Total other income and expenses





Loss from operations before income taxes





Income taxes benefit





Net loss

$ (63,316)

$ (11,744)

$ (81,087)

$ (46,260)

Comprehensive loss:

Unrealized gain (loss) on securities





Comprehensive loss

$ (63,150)

$ (11,493)

$ (80,980)

$ (46,569)

Net loss per common share – basic and diluted


$ (1.74)

$ (0.59)

$ (2.27)

$ (2.79)

Weighted average common stock outstanding - basic and diluted (1)






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

SOURCE: Golden Minerals Company

For further information:

PRN Photo Desk,

Data and Statistics for these countries : Argentina | Bolivia | Mexico | All
Gold and Silver Prices for these countries : Argentina | Bolivia | Mexico | All

Golden Minerals

ISIN : US3811191069
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Golden Minerals is a gold and silver development stage company based in United states of america.

Golden Minerals produces gold, silver, copper, lead and zinc in Mexico, develops silver in Argentina, and holds various exploration projects in Mexico.

Its main assets in production are VELARDENA DISTRICT, SAN MATEO, SAN JUANES and SANTA JUANA in Mexico, its main asset in development is EL QUEVAR in Argentina and its main exploration properties are COCHABAMBA, JEHUAMARCA, CHAVIN and PALCA in Peru, ELISA DE BORDOS in Chile and SAN MIGUEL, SAN PEDRO, MATEHUAPIL, ZACATECAS, LA PINTA, SAN DIEGO, NAZAS and TERNERAS in Mexico.

Golden Minerals is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 76.2 millions as of today (US$ 58.5 millions, € 54.2 millions).

Its stock quote reached its highest recent level on March 05, 2010 at CA$ 9.99, and its lowest recent point on January 22, 2016 at CA$ 0.19.

Golden Minerals has 84 690 333 shares outstanding.

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Financings of Golden Minerals
9/10/2014Announces Closing Of Equity Financing
9/4/2014Announces Proposed Public Offering Of Common Stock And Warra...
9/19/2012Announces Closing Of Equity Financing
9/14/2012Announces Equity Financing
10/3/2011Announces Private Placement and Filing of Shelf Registration
Nominations of Golden Minerals
11/28/2012Announces Resignation Of Executive Vice President
3/14/2012Appoints Construction Manager for Velardena
Financials of Golden Minerals
7/15/2015Reports Second Quarter 2015 Velardena Performance
11/6/2014Reports Third Quarter Financial Results And Provides Busines...
8/6/2014Announces Second Quarter 2014 Results
5/1/2014Announces First Quarter 2014 Results
11/6/2013Announces Third Quarter 2013 Results
8/8/2013Announces Second Quarter 2013 Results
5/8/2013Announces First Quarter 2013 Results
3/1/2013Reports 2012 Year-End Results
5/9/2012Reports First Quarter 2012 Results
3/8/2012Reports 2011 Year-End Results
11/14/2011Reports Third Quarter 2011 Results and Operational Improveme...
8/8/2011Reports Second Quarter 2011 Results
5/4/2011Reports First Quarter 2011
2/17/2011Reports 2010 Year-End Results
Project news of Golden Minerals
6/21/2013Announces Suspension Of Production
1/25/2013(El Quevar)Reports Possible Extensions Of Mineralized Zones At El Queva...
10/11/2012Reports Production Increases of 28% for Silver and 27% for ...
8/24/2011(El Quevar)Provides an Update on the Drilling and Underground Drifting ...
4/8/2011(El Quevar)Provides an Update on the Development Drift at El Quevar and...
1/11/2011(El Quevar)Provides an Update on the El Quevar Project Including Result...
1/22/2008(San Cristobal)Provides Operations Update
12/31/2006(El Quevar)Drill hole intercepts
Corporate news of Golden Minerals
7/19/2016ETF’s with exposure to Golden Minerals Co. : July 19, 2016
7/19/2016Golden Minerals (AUMN) Looks Good: Stock Rises by 8.2%
6/30/2016Why Investors Have This Industrial Metals & Minerals' Stocks...
6/16/20165 Stocks Under $10 Set to Soar
6/13/2016Sentient Group Converts Remaining Debt To Golden Minerals Sh...
5/11/2016Golden Minerals Co. :AUM-CA: Earnings Analysis: Q1, 2016 By ...
5/3/2016Golden Minerals Announces $4 Million Registered Direct Offer...
4/29/2016Golden Minerals Reports First Quarter 2016 Results
4/11/2016Golden Minerals Issues No Corporate Development Statement
4/6/2016ETF’s with exposure to Golden Minerals Co. : April 6, 2016
3/25/2016ETF’s with exposure to Golden Minerals Co. : March 25, 2016
3/7/2016Golden Minerals Co. :AUM-CA: Earnings Analysis: Q4, 2015 By ...
3/2/2016Golden Minerals Begins Drill Program at San Luis del Cordero
12/18/2015Golden Minerals Provides Financial And Meeting Updates
12/11/2015Golden Minerals Acquires Mining Rights For Cordero Property
12/11/2015Golden Minerals Reports Third Quarter 2015 Results
12/1/2015Golden Minerals Co. Earnings Q3, 2015
11/16/2015Golden Minerals Acquires Mining Rights For Cordero Property
11/16/2015Golden Minerals Reports Third Quarter 2015 Results
10/29/2015Golden Minerals Provides Update
8/19/2015Golden Minerals Co. Earnings Q2*, 2015
8/9/201510-Q for Golden Minerals Co.
8/6/2015Golden Minerals Reports Second Quarter 2015 Financial Result...
7/31/2015Golden Minerals Announces CEO Retirement
7/15/2015Golden Minerals Reports Second Quarter 2015 Velardena Perfor...
7/15/2015Golden Minerals Leases Oxide Plant To Hecla
7/7/2015Golden Minerals Discovers New Silver And Gold Mineralization...
5/27/2015Warren Rehn Named President Of Golden Minerals Company
5/6/2015Golden Minerals Reports First Quarter 2015 Financial Results
4/20/2015Golden Minerals Announces Mineral Resource Estimates For San...
4/20/2015Announces Mineral Resource Estimates For Santa Maria And Los...
4/17/2015Golden Minerals Provides Information Regarding Its Upcoming ...
4/14/2015Golden Minerals Reports Velardena Performance In Line With G...
4/14/2015Reports Velardena Performance In Line With Guidance
3/2/201510-K for Golden Minerals Co.
2/28/2015Golden Minerals Reports 2014 Year-End Results
2/27/2015Golden Minerals Reports 2014 Year-End Results
12/23/2014Provides Update For Velardena Mine Restart
7/14/2014' Mining Underway; Additional Vein Added To Plan
2/27/2014Reports High-Grade Gold Drill Intersections
11/1/2013Initiates Succession Planning
4/11/2013Announces Record First Quarter 2013 Production Of Silver
2/13/2013Announces 2013 Operating Plan
11/8/2012Announces Third Quarter Results and $2.0 Million in Expl...
9/27/2012To Present At The John Tumazos Very Independent Research, LL...
5/31/2012Announces Sale of Platosa Royalty for $2.4 Million and Engag...
5/18/2012Announces High Grade Resource Estimate for Velardena Propert...
5/4/2012Provides Update of First Quarter Production and Full Year Gu...
4/10/2012(El Quevar)Announces Significant Increase to Indicated Silver Resources...
3/28/2012Tag and Golden Minerals Amend San Diego Joint Venture Terms
2/7/2012Appoints Vice President of Exploration
1/11/2012Reports Significant Operational Improvements at Velardena an...
12/8/2011Continues to Drill High Grade Silver With Wide Intercepts at...
8/30/2011and ECU Silver Mining Inc. Announce Results of Special Meeti...
6/24/2011Company and ECU Silver Mining Inc. Announce Merger of Equals...
6/2/2008the Sale of the Rights to Deferred Payments to Sumitomo for ...
2/29/2008Reports 2007 Year-End Results
2/25/2008Provides Operations Update
10/4/2005Follow up N° 16
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