Golden Minerals is a precious metals exploration mining company that offers investors leverage to gold and silver prices. The company holds independently-prepared Technical Report Summaries (SEC S-K 1300-compliant) and Preliminary Economic Assessments (NI 43-101-compliant) on three of its precious metals projects.
Golden holds a number of exploration projects in our pipeline, including several which have shown potential through drill results to date, including the Sarita Este gold prospect in Argentina and the El Quevar silver project in Argentina. With an effective date of February 24, 2023, an initial mineral resource estimate was completed for the Yoquivo silver-gold project that estimates an inferred mineral resource of 937,000 tonnes at 570 g/t Ag eq (equivalent ounces are calculated using prices of $1,840/oz Au and $24.00/oz Ag) on five veins that had enough drill density to support mineral resources. The company intends to focus on exploration activities at its El Quevar project as funding allows.
The Company does not currently have sufficient resources to meet its expected cash needs during the twelve months ended March 31, 2025. At March 31, 2024, the Company had current assets of approximately $5.3 million, including cash and cash equivalents of approximately $2.4 million. On the same date, it had accounts payable and other current liabilities of approximately $6.5 million. Because the Company has ceased mining at the Velardeña mine, its only near-term opportunity to generate cash flow is from the sale of assets and equity financings.
Golden Minerals will require further sources of capital. In order to satisfy the Company’s projected general, administrative, exploration and other expenses through March 31, 2025, the Company will need approximately $6.0 to $8.0 million in total capital inflows. These capital inflows may take the form of asset sales such as from the anticipated closing of the sale of Velardeña assets for $5.5 million, collection of the Company’s outstanding receivable, equity financing activities, or otherwise.
As of March 31, 2024, Golden Minerals had VAT receivable in Mexico of approximately $1.1 million. Although the Company believes it is likely it will receive some material portion of this receivable in the second and third quarters of 2024, there is no certainty as to the timing and amount of such payment.
Argentina: El Quevar, Sarita Este, Desierto Mexico: Yoquivo, Flechas, Velardeña, Rodeo USA: Sand Canyon (Nevada)
1 Resources prepared under SK-1300 guidelines include only Velardeña and Yoquivo, as reported in the company's 2023 Form 10-K. The data exclude El Quevar.
2 Technical Reports include reports prepared under both U.S. SEC S-K 1300 (TRS reports) and Canadian NI 43-101 (PEA reports) guidelines, as noted below:
Velardeña:
Tetra Tech, August 2023. “Velardeña Project Technical Report Summary.” Initial Assessment for the property as defined under U.S. SEC Regulation S-K 1300. Two economic models were prepared for the Project: one includes Inferred Mineral Resources (MII Plan) in the analysis, and the second excludes the Inferred material (MI Plan). The economic model results are based on Mineral Resources that, by definition, are not Mineral Reserves, and do not have demonstrated economic viability. The TRS assumes prices of $1,826/oz gold, $22.71/oz silver, $1.02/pound (“lb”) lead (“Pb”) and $1.31/lb zinc (“Zn”). Mineral resources were calculated having an effective date of June 1, 2023, as diluted to a minimum of 0.7 meters and are reported at a $195 NSR cutoff. NPV calculated using an 8% discount rate.
Yoquivo:
Mine Technical Services, Ltd., February 24, 2023. “NI 43-101 Technical Report on Mineral Resource Estimate”. Mineral Resources have been classified using the 2014 CIM Definition Standards. Mineral Resources assume a traditional underground cut-and-fill mining method; a silver price of US $24/oz, a gold price of US $1,840/oz, a minimum mining width of 1 m; assumed silver and gold metallurgical recovery of 85%; an average mining cost of US $75/t mined; average processing and general and administrative cost of US $50/t processed; transportation and selling cost of US $0.95/oz Ag and US $15/oz Au; and a gold and silver royalty of 2%.
El Quevar:
• PEA: Wood Group. NI 43-101 Technical Report on PEA. Sept. 4, 2018. NPV calculated using a 5% discount rate.
• Resource: Amec Foster Wheeler E&C Services Inc. a Wood Group PLC company. NI 43-101 Technical Report on Updated Mineral Resource Estimate. Feb. 26, 2018.
1 Key Employee Long Term Incentive Plan 2 As of March 31, 2024.
Numbers may not sum due to rounding.