Golden Minerals Reports Second Quarter 2024 Financial Results
Golden Minerals Company (NYSE-A: AUMN, TSX: AUMN) has released its Q2 2024 financial results, revealing a challenging financial position. The company reported a cash balance of $1.4 million as of June 30, 2024, down from $3.8 million at the end of 2023. Golden Minerals posted a net loss of $2.7 million ($0.19 per share) in Q2 2024, compared to a $1.5 million loss in Q2 2023. The company faces significant liquidity issues, with current assets of $2.5 million against current liabilities of $4.8 million. Golden Minerals is actively seeking additional funding through asset sales or external financing, as it projects needing $6-8 million to cover expenses through June 2025. Without new cash inflows, the company anticipates exhausting its resources by September 2024 and may consider bankruptcy filings for some Mexican subsidiaries.
La Golden Minerals Company (NYSE-A: AUMN, TSX: AUMN) ha pubblicato i suoi risultati finanziari del Q2 2024, rivelando una situazione finanziaria difficile. L'azienda ha registrato un saldo di cassa di 1,4 milioni di dollari al 30 giugno 2024, in calo rispetto ai 3,8 milioni di dollari alla fine del 2023. Golden Minerals ha riportato una perdita netta di 2,7 milioni di dollari (0,19 dollari per azione) nel Q2 2024, rispetto a una perdita di 1,5 milioni di dollari nel Q2 2023. L'azienda affronta significativi problemi di liquidità, con attivi correnti di 2,5 milioni di dollari contro passività correnti di 4,8 milioni di dollari. Golden Minerals sta cercando attivamente finanziamenti aggiuntivi attraverso la vendita di attivi o finanziamenti esterni, poiché prevede di aver bisogno di 6-8 milioni di dollari per coprire le spese fino a giugno 2025. Senza nuovi afflussi di cassa, l'azienda prevede di esaurire le sue risorse entro settembre 2024 e potrebbe considerare la possibilità di presentare istanze di fallimento per alcune filiali messicane.
Golden Minerals Company (NYSE-A: AUMN, TSX: AUMN) ha publicado sus resultados financieros del Q2 2024, revelando una situación financiera desafiante. La empresa reportó un saldo de efectivo de 1.4 millones de dólares al 30 de junio de 2024, disminuyendo desde 3.8 millones de dólares a finales de 2023. Golden Minerals presentó una pérdida neta de 2.7 millones de dólares (0.19 dólares por acción) en el Q2 2024, en comparación con una pérdida de 1.5 millones de dólares en el Q2 2023. La compañía enfrenta significativos problemas de liquidez, con activos corrientes de 2.5 millones de dólares frente a pasivos corrientes de 4.8 millones de dólares. Golden Minerals está buscando activamente financiamiento adicional a través de ventas de activos o financiamiento externo, ya que proyecta necesitar entre 6 y 8 millones de dólares para cubrir gastos hasta junio de 2025. Sin nuevos flujos de efectivo, la empresa anticipa agotar sus recursos para septiembre de 2024 y podría considerar solicitudes de quiebra para algunas subsidiarias mexicanas.
골든 미네랄스 컴퍼니 (NYSE-A: AUMN, TSX: AUMN)가 2024년 2분기 재무 결과를 발표하며 어려운 재정 상황을 드러냈습니다. 이 회사는 2024년 6월 30일 기준으로 140만 달러의 현금 잔고를 보고했으며, 이는 2023년 말의 380만 달러에서 감소한 수치입니다. 골든 미네랄스는 2024년 2분기에 270만 달러의 순손실 (주당 0.19 달러)을 기록했으며, 이는 2023년 2분기 150만 달러의 손실에 비해 증가한 수치입니다. 이 회사는 상당한 유동성 문제에 직면해 있으며, 현재 자산이 250만 달러이고 현재 부채가 480만 달러입니다. 골든 미네랄스는 자산 매각이나 외부 자금을 통한 추가 자금 확보를 적극적으로 모색하고 있으며, 2025년 6월까지의 비용을 충당하기 위해 600만에서 800만 달러가 필요할 것으로 예상하고 있습니다. 새로운 현금 유입이 없을 경우, 이 회사는 2024년 9월까지 자원을 고갈할 것으로 예상되며 일부 멕시코 자회사를 위한 파산 신청을 고려할 수 있습니다.
La Golden Minerals Company (NYSE-A: AUMN, TSX: AUMN) a publié ses résultats financiers du T2 2024, révélant une situation financière difficile. L'entreprise a signalé un solde de trésorerie de 1,4 million de dollars au 30 juin 2024, en baisse par rapport à 3,8 millions de dollars à la fin de 2023. Golden Minerals a enregistré une perte nette de 2,7 millions de dollars (0,19 dollars par action) au T2 2024, comparativement à une perte de 1,5 million de dollars au T2 2023. L'entreprise fait face à de significatifs problèmes de liquidité, avec des actifs courants de 2,5 millions de dollars contre des passifs courants de 4,8 millions de dollars. Golden Minerals cherche activement à obtenir un financement supplémentaire par la vente d'actifs ou le financement externe, car elle prévoit avoir besoin de 6 à 8 millions de dollars pour couvrir les dépenses jusqu'en juin 2025. Sans nouveaux flux de trésorerie, l'entreprise prévoit d'épuiser ses ressources d'ici septembre 2024 et pourrait envisager de déposer le bilan pour certaines filiales mexicaines.
Die Golden Minerals Company (NYSE-A: AUMN, TSX: AUMN) hat ihre finanziellen Ergebnisse für Q2 2024 veröffentlicht und zeigt eine herausfordernde finanzielle Lage. Das Unternehmen berichtete von einem Barbestand von 1,4 Millionen US-Dollar zum 30. Juni 2024, ein Rückgang von 3,8 Millionen US-Dollar zum Ende des Jahres 2023. Golden Minerals verzeichnete einen Nettoverlust von 2,7 Millionen US-Dollar (0,19 US-Dollar pro Aktie) im Q2 2024, verglichen mit einem Verlust von 1,5 Millionen US-Dollar im Q2 2023. Das Unternehmen hat erhebliche Liquiditätsprobleme, mit kurzfristigen Vermögenswerten von 2,5 Millionen US-Dollar im Gegensatz zu kurzfristigen Verbindlichkeiten von 4,8 Millionen US-Dollar. Golden Minerals sucht aktiv nach zusätzlicher Finanzierung durch den Verkauf von Vermögenswerten oder externe Finanzierungen, da prognostiziert wird, dass es 6 bis 8 Millionen US-Dollar benötigt, um die Ausgaben bis Juni 2025 zu decken. Ohne neue Barmittelströme wird das Unternehmen voraussichtlich seine Ressourcen bis September 2024 erschöpfen und könnte in Betracht ziehen, für einige mexikanische Tochtergesellschaften Insolvenz zu beantragen.
- Zero debt as of June 30, 2024
- Received $2.5 million from the sale of Velardeña Property assets
- Collected $2.6 million in VAT receivables from the Mexican Government
- Cash and equivalents decreased to $1.4 million from $3.8 million in six months
- Net loss increased to $2.7 million in Q2 2024 from $1.5 million in Q2 2023
- Current liabilities ($4.8 million) exceed current assets ($2.5 million)
- Company projects cash resources will be exhausted by September 2024
- Buyer of oxide plant is in default, with $2.5 million payment outstanding
- Company is considering bankruptcy filings for several Mexican subsidiaries
Insights
Golden Minerals' Q2 2024 results reveal a critical financial situation. The company's cash position has significantly deteriorated, dropping from
The net loss of
The sale of Velardeña Properties, while providing some cash influx, highlights Golden Minerals' strategic shift away from active mining operations. The
The company's focus on selling El Quevar and Yoquivo projects further confirms its exit from mining operations. With no active mines and dwindling cash, Golden Minerals appears to be in a terminal decline phase, unable to sustain exploration or development activities. This situation raises serious doubts about the company's long-term viability in the mining sector.
Golden Minerals is clearly in financial distress, necessitating immediate and drastic action. The company's consideration of bankruptcy for Mexican subsidiaries indicates a potential restructuring strategy. However, with assets remaining and ongoing cash burn, options are severely constrained.
The company urgently needs to accelerate asset sales, aggressively pursue the defaulted payment for the oxide plant and drastically cut all non-essential expenses. A debt-for-equity swap or a reverse merger might be considered to avoid liquidation. However, given the current financial state, attracting investors or merger partners will be extremely challenging. The likelihood of total liquidation appears high unless a rapid and significant cash infusion is secured.
Second Quarter Financial Summary
-
Cash and equivalents balance was
as of June 30, 2024, compared to$1.4 million as of December 31, 2023.$3.8 million -
Current liabilities were
as of June 30, 2024, compared to$4.8 million as of December 31, 2023.$5.7 million - Zero debt as of June 30, 2024, unchanged from December 31, 2023.
-
Net loss was
or$2.7 million per share in the second quarter 2024, compared to a net loss of$0.19 or$1.5 million per share in the second quarter 2023.$0.21
Cash Inflows and Expenditures
Cash expenditures during the six months ended June 30, 2024 totaled
-
from the loss on discontinued Velardeña operations, which includes$5.1 million of loss from operations and$4.1 million of severance payments to employees who were terminated during the six months ended June 30, 2024;$1.0 million -
in general and administrative expenses;$2.1 million -
in exploration expenditures; and$0.8 million -
in care and maintenance costs at the El Quevar project, net of zero reimbursements from Barrick Gold Corporation (“Barrick”) pursuant to the Earn-in Agreement between the Company and Barrick.$0.3 million
The above expenditures were partially offset by cash inflows of
-
from the collection of VAT receivables from the Mexican Government;$2.6 million -
of proceeds received from the sale of the Velardeña Property assets; and$2.5 million -
of other working capital changes.$0.8 million
Liquidity and Capital Resources
The Company does not currently have sufficient resources to meet its expected cash needs during the twelve months ended June 30, 2025. At June 30, 2024, the Company had current assets of approximately
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 June 30, 2025, it will need approximately
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 June 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
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) whether the Buyer will make the remaining payments due on the oxide plant; (ii) the Company’s anticipated near-term capital needs, and potential sources of capital; (iii) the anticipated timing of exhaustion of the Company’s cash resources in the absence of additional cash inflows; (iv) the Company considering filing bankruptcy for several of its Mexican subsidiaries; (v) the Company being forced to cease operations and liquidate if it is unable to obtain additional cash resources; and (vi) the Company’s capital inflow needs to satisfy the Company’s projected general, administrative, exploration and other expenses through June 30, 2025. These statements are subject to risks and uncertainties, including the failure by the buyer of the Company’s assets in
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Golden Minerals Company
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Source: Golden Minerals Company
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