GOLDEN, Colo., Aug. 06, 2020 (GLOBE NEWSWIRE) — Golden Minerals Company (“Golden Minerals”, “Golden” or the “Company”) (NYSE American and TSX: AUMN) today announced financial results and a business summary for the quarter ending June 30, 2020.Second Quarter Summary Financial ResultsRevenue of $1.2 million and a net operating margin (oxide plant lease revenue less lease costs) of $0.8 million related to the lease of the Company’s oxide plant in the second quarter 2020, compared to a $1.3 million net operating margin realized in the second quarter 2019. (All currency in USD.)$3.7 million in funding received in conjunction with the signing of an Earn-In Agreement with Barrick Gold Corporation (“Barrick”) ($0.9 million net), and from an equity offering and private placement of Golden common shares and warrants completed in April 2020 ($2.8 million net).Cash and cash equivalents balance of $3.6 million as of June 30, 2020 compared to $4.6 million at year-end 2019. Subsequent to June 30, 2020, additional funding of $7.9 million (net) received in July 2020 from an equity offering without warrants.Exploration expenses of $0.8 million compared to $1.3 million in the year ago period.Net loss of $2.3 million or $0.02 per share in the second quarter 2020, compared to a net loss of $2.5 million or $0.03 per share in the second quarter 2019.Second Quarter Business SummaryPublished Preliminary Economic Assessments (“PEA”) for the Velardeña Properties and the Rodeo gold project (May 2020).Submitted permits for the Rodeo gold project (June 2020), with mining operations possible for Q1 2021 pending receipt of permits.Signed an Earn-in Agreement for the El Quevar silver project with Barrick (April 2020).Golden Minerals’ President and Chief Executive Officer, Warren Rehn, commented, “With the recent capital raise completed, we have a significant cash balance and are now in an excellent position to fund a start-up of production at the Rodeo deposit early next year, assuming that the results of our confirmatory drilling program are satisfactory and providing we receive the necessary government approvals. We are also moving forward with additional engineering studies for a bio-oxidation plant at Velardeña. We can now advance our exploration plans at several properties, including drilling at the Yoquivo District in Chihuahua, Mexico. The recent dramatic increase in gold and silver prices has greatly improved our projections of potential cash flow from both Rodeo and Velardeña. We will continue to advance our plans to become a gold and silver producer again as quickly as possible.”Financial ResultsThe Company reported revenue of $1.2 million in the second quarter 2020 related to the oxide plant lease and costs of approximately $0.4 million related to the services Golden provides under the terms of the lease, for a net margin of $0.8 million. Revenue and net operating margins were lower in the current period compared to the $1.3 million in the second quarter 2019 due to (1) a suspension of operations during portions of April and May related to COVID-19, and (2) a contract amendment permitting a lower variable price per tonne of ore processed beginning in January 2020. During the second quarter 2020 as noted above, Golden also received $3.7 million in net proceeds from the sale of common stock related to an Earn-In Agreement with Barrick and an offering of the Company’s common stock.Exploration expenses were $0.8 million in the second quarter 2020 and include work at the Sand Canyon, Rodeo and other properties, as well as property holding costs and their allocated administrative expenses. El Quevar project expense was $0.2 million in the quarter which includes costs of exploration and evaluation activities, care and maintenance and property holding costs. Administrative expenses totaled $0.8 million in the second quarter 2020. These expenses, including costs associated with being a public company, are incurred primarily by the Company’s corporate activities in support of the Velardeña Properties, the El Quevar project and the Company’s exploration portfolio. Golden reported a net loss of $2.3 million or $0.02 per share in the second quarter 2020 compared to a net loss of $2.5 million or $0.03 per share in the year ago period. Twelve Month Financial OutlookThe Company ended the second quarter 2020 with a cash balance of $3.6 million. Cash inflows for the 12-month period ending June 30, 2021 are projected as follows (all figures are approximate):$7.9 million in net proceeds related to a July 2020 public equity offering;$1.3 million in net operating margin and $0.4 million from the collection of receivables following the termination of the oxide plant lease on November 30, 2020; and$0.5 million in the third quarter 2020 relating to the sale of the Santa Maria project.The Company’s currently budgeted expenditures during the 12 months ending June 30, 2021 total $9.8 million and are as follows (all figures are approximate):$1.5 million on mine development costs, capital expenditures, working capital and other start-up related activities ahead of a potential first quarter 2021 commencement of milling and processing operations at the Rodeo property,$2.0 million on evaluation activities, exploration and property holding costs related to the Company’s portfolio of exploration properties located in Mexico, Nevada and Argentina, including costs at El Quevar, Yoquivo and other properties;$1.6 million at the Velardeña Properties for care and maintenance;$1.1 million for repayment of a related party loan to Sentient;$0.5 million for repayment of the remaining Autlán deposit associated with a cancelled 2019 agreement; and$3.1 million on general and administrative costs.These projections are current as of the date of this news release but could be negatively impacted if further interruptions related to COVID-19 occur in Mexico. The Company currently includes anticipated expenditures for the potential start-up of mining at the Rodeo gold project in the first quarter 2021, but an estimate of revenues has not been included pending the results of a confirmatory drilling program in the third quarter 2020 and receipt of operating permits estimated to occur in late 2020.Additional information regarding second quarter 2020 financial results may be found in the Company’s 10-Q Quarterly Report which is available on the Golden Minerals website at www.goldenminerals.com.Financial Statements
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