Golden Minerals Reports Third Quarter 2022 Results
Golden Minerals Company (AUMN) reported third-quarter 2022 financial results, revealing revenue of $5.3 million and a net loss of $2.7 million, or $0.02 per share, compared to a net gain of $0.4 million in Q3 2021. The Rodeo mine produced 2,972 payable gold ounces and 11,907 payable silver ounces, with cash costs of $1,391.1 per payable gold ounce. With a cash balance of $6.5 million, the company anticipates $5.5 to $6.5 million in net operating margin over the next year, assuming stable commodity prices.
- Produced 2,972 payable gold ounces and 11,907 payable silver ounces.
- Anticipates $5.5 to $6.5 million in net operating margin over the next year.
- Revenue declined from $8.5 million in Q3 2021 to $5.3 million in Q3 2022.
- Net loss of $2.7 million in Q3 2022 compared to a gain of $0.4 million in Q3 2021.
- Cash balance decreased from $12.2 million at the end of 2021 to $6.5 million.
Third Quarter Financial Results - Highlights
(All currency expressed in approximate USD)
-
Revenue of
$5.3 million $0.9 million $8.5 million $4.2 million Mexico . -
$6.5 million September 30, 2022 , compared to$12.2 million December 31, 2021 . -
Net loss of
$0.02 $2.7 million $0.00 $0.4 million
Third Quarter Business Summary
-
The Rodeo mine (
Mexico ) produced 2,972 payable gold ounces and 11,907 payable silver ounces (3,103 gold equivalent (“AuEq”) ounces) with total cash costs, net of silver by-product credits, per payable ounce of gold of$1,391 -
Sold 3,145 AuEq oz. in doré at average prices of
$1,703 $18.72 September 30, 2022 , consisted of 277 payable gold ounces and 1,309 payable silver ounces. -
At the Velardeña Properties (
Mexico ), the Company continued its evaluation of modified mine plans and mining techniques to address dilution issues encountered during 1H 2022 test-mining activities. The Company also began testing ore sorting technology in the third quarter 2022 to evaluate its potential application at the Velardeña Properties. -
At the
Yoquivo gold prospect (Mexico ), the Company completed a third drill program of 5,693 meters in 24 drill holes inJuly 2022 and is currently conducting a fourth drill program of approximately 3,000 meters. The Company plans to complete a maiden resource estimate for the property for release in the first quarter 2023. -
Completed additional drilling at the Sarita Este gold prospect (
Salta, Argentina ) for a project total since inception of 4,925 meters in 51 core drill holes.
1 Gold equivalents are based on actual gold and silver prices realized during the third quarter 2022. “Cash costs, net of by-product credits, per payable gold ounce” is a non-GAAP financial measure. For further information, see “Non-GAAP Financial Measures” below.
Third Quarter 2022 Financial Results
The Company reported revenue of
Twelve-Month Financial Outlook
The Company ended the third quarter of 2022 with a cash balance of
Currently forecasted expenditures during the 12 months ending
-
$4.3 million Mexico ,Argentina andNevada , including project assessment and evaluation costs for exploration at Rodeo andYoquivo , plus costs associated with the potential restart of Velardeña and costs to increase its tailings facility which processes Rodeo’s mineralized material; -
$1.0 million -
$0.4 million -
$3.9 million
Additional information regarding third quarter 2022 financial results can be found in the Company’s 10-Q Quarterly Report which is available on the
Quarterly Conference Call and Webcast
Management will be hosting a conference call and webcast this morning,
The webcast will also be available for replay on the
About
Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS (US Dollars, unaudited) |
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2021 |
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2022 |
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(Restated)* |
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(in thousands, except share data) |
||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 6,504 |
|
$ | 12,229 |
|
||
| Short-term investments | 35 |
|
67 |
|
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| Inventories, net | 1,786 |
|
1,608 |
|
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| Value added tax receivable, net | 1,770 |
|
1,290 |
|
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| Prepaid expenses and other assets | 1,182 |
|
1,145 |
|
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| Total current assets | 11,277 |
|
16,339 |
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| Property, plant and equipment, net | 6,404 |
|
6,627 |
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| Investments | 225 |
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— |
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| Other long-term assets | 643 |
|
747 |
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| Total assets | $ | 18,549 |
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$ | 23,713 |
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| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other accrued liabilities | $ | 4,345 |
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$ | 3,509 |
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| Deferred revenue | 344 |
|
1,469 |
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| Other current liabilities | 276 |
|
721 |
|
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| Total current liabilities | 4,965 |
|
5,699 |
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| Asset retirement and reclamation liabilities | 3,805 |
|
3,569 |
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| Other long-term liabilities | 149 |
|
353 |
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| Total liabilities | 8,919 |
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9,621 |
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| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Common stock, |
1,675 |
|
1,628 |
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| Additional paid-in capital | 541,835 |
|
540,518 |
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| Accumulated deficit | (533,880 |
) |
(528,054 |
) |
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| Shareholders' equity | 9,630 |
|
14,092 |
|
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| Total liabilities and equity | $ | 18,549 |
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$ | 23,713 |
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* See Note 3, “Notes to the Condensed Consolidated Financial Statements” in the Form 10-Q.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (US dollars, unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2022 |
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2021 |
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2022 |
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2021 |
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(in thousands except per share data) |
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(in thousands, except per share data) |
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| Revenue: | ||||||||||||||||
| Sale of metals | $ | 5,268 |
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$ | 8,479 |
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$ | 18,700 |
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$ | 16,118 |
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| Total revenue | 5,268 |
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8,479 |
|
18,700 |
|
16,118 |
|
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| Costs and expenses: | ||||||||||||||||
| Cost of metals sold (exclusive of depreciation shown below) | (4,374 |
) |
(4,292 |
) |
(13,335 |
) |
(9,156 |
) |
||||||||
| Exploration expense | (2,376 |
) |
(2,146 |
) |
(7,038 |
) |
(4,021 |
) |
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| El Quevar project expense | (154 |
) |
(90 |
) |
(448 |
) |
(249 |
) |
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| Velardeña care and maintenance costs | (370 |
) |
(414 |
) |
(843 |
) |
(754 |
) |
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| Administrative expense | (918 |
) |
(911 |
) |
(3,466 |
) |
(3,451 |
) |
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| Stock-based compensation | (194 |
) |
(75 |
) |
(543 |
) |
(1,491 |
) |
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| Reclamation expense | (71 |
) |
(67 |
) |
(211 |
) |
(196 |
) |
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| Other operating income, net | 384 |
|
138 |
|
1,274 |
|
472 |
|
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| Depreciation and amortization | (89 |
) |
(143 |
) |
(241 |
) |
(466 |
) |
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| Total costs and expenses | (8,162 |
) |
(8,000 |
) |
(24,851 |
) |
(19,312 |
) |
||||||||
| (Loss) income from operations | (2,894 |
) |
479 |
|
(6,151 |
) |
(3,194 |
) |
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| Other income (expense): | ||||||||||||||||
| Interest and other expense, net | (3 |
) |
(13 |
) |
(17 |
) |
(336 |
) |
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| Gain on foreign currency transactions | 154 |
|
133 |
|
252 |
|
156 |
|
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| Total other income (expense) | 151 |
|
120 |
|
235 |
|
(180 |
) |
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| (Loss) gain from operations before income taxes | (2,743 |
) |
599 |
|
(5,916 |
) |
(3,374 |
) |
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| Income taxes | 46 |
|
(188 |
) |
90 |
|
(203 |
) |
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| Net (loss) income | $ | (2,697 |
) |
$ | 411 |
|
$ | (5,826 |
) |
$ | (3,577 |
) |
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| Net (loss) income per common share - basic | $ | (0.02 |
) |
$ | 0.00 |
|
$ | (0.04 |
) |
$ | (0.02 |
) |
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| Weighted-average shares outstanding - basic | 166,948,751 |
|
162,477,039 |
|
164,872,701 |
|
161,751,452 |
|
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Non-GAAP Financial Measures
“Total cash costs, net of by-product credits, per payable gold ounce,” is a non-GAAP measure, and includes all direct and indirect operating cash costs associated with the physical activities that would generate doré 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. Total 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 Rodeo project. By-product credits include revenues from silver contained in the products sold to customers during the period. “Total cash costs, net of by-product credits”, are divided by the number of payable gold ounces generated by the plant for the period to arrive at “Total cash costs, net of by-product credits, per payable gold ounce.”
“Cost of metals sold”, reported as a separate line item in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended
| Reconciliation of Costs of Metals Sold | ||||
| (GAAP) to Total Cash Costs, | ||||
| net of By-product Credits (Non-GAAP) | ||||
| (in thousands) | ||||
| Three Months Ended |
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| Total cash costs, net of by-product credits | $ | 4,133 |
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| Reconciliation to GAAP measure: | ||||
| Treatment and refining costs | $ | (95 |
) |
|
| Silver by-product credits | 217 |
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| Write down of inventories to net realizable value | (75 |
) |
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| Change in inventory (excluding depreciation, depletion and amortization) | 194 |
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| Cost of metals sold | $ | 4,374 |
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| Nine Months Ended |
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| Total cash costs, net of by-product credits | $ | 12,617 |
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| Reconciliation to GAAP measure: | ||||
| Treatment and refining costs | $ | (307 |
) |
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| Silver by-product credits | 865 |
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| Write down of inventories to net realizable value | (75 |
) |
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| Change in inventory (excluding depreciation, depletion and amortization) | 235 |
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| Cost of metals sold | $ | 13,335 |
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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, including statements regarding the Company’s plans to complete a maiden resource estimate for the
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FAQ
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