Investors

Overview

Golden Minerals Company offers investors leverage to gold and silver prices. We transitioned from exploration company to gold-silver producer when we commenced production at our Rodeo gold-silver open pit mine (Durango State, Mexico) in January 2021.

We hold independently-prepared Technical Report Summaries (U.S. SEC S-K 1300-compliant) and Preliminary Economic Assessments (NI 43-101-compliant) on four of our precious metals projects. The Rodeo gold project presents a low capital cost/high profit margin opportunity to realize significant cashflow that can be used in part to self-fund production start-up at the larger silver/gold Velardeña Properties. Repeated testing of sulfide concentrates using bio-oxidation processing technology demonstrates improved gold recovery from pyrite concentrates and potential for Velardeña to become a highly profitable operation over at least an 11-year mine life. Both Velardeña and our district-scale El Quevar silver project in Salta, Argentina present additional upside in the form of significant resource expansion and thus value appreciation.

Why Invest in Golden Minerals Company?

Cash Flow

  • 2021 net operating margin from Rodeo gold-silver operations:  $12.3 million
  • Q1 2022 net operating margin from Rodeo:  $3.2 million

Resources

  • M&I resources as defined under S-K 1300 guidelines:  13.2M oz Ag + 250k oz Au1  
  • Inferred resources as defined under S-K 1300 guildelines:  19.9M oz Ag + 264koz Au

Value

  • Technical report-estimated values 2
    • Velardeña -$119M NPV (2022 TRS, MII Plan) or $48M (2022 TRS, MI Plan)
    • El Quevar - $44.9M NPV (2018 PEA)
    • Rodeo - $23M NPV (2022 TRS)
    • Santa Maria - $10.6M NPV (2018 PEA)
  • Velardeña mine & 300 tpd sulfide mill on stand-by

Cash

$11.7M (as of 3/31/2022) 

Debt

None

Project
Pipeline

Argentina:  El Quevar, Sarita Este, Desierto
Mexico:  Velardeña, Rodeo, Yoquivo, Santa Maria, Flechas
USA:  Sand Canyon (Nevada)

Experience

Experienced management and directors; strong technical staff

1 Resources prepared under SK-1300 guidelines include only Rodeo and Velardeña, as outlined in Mar. 2022 Technical Report Summaries ("TRS"). All inferred material attributable to Velardeña.

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, March 2022. “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 $1,744/oz gold, $23.70/oz silver, $0.97/pound (“lb”) lead (“Pb”) and $1.15/lb zinc (“Zn”).  Mineral resources were calculated having an effective date of February 28, 2022, as diluted to a minimum of 0.7 meters and are reported at a $175 NSR cutoff. NPV calculated using an 8% discount rate.

Rodeo:

• Tetra Tech, March 2022. “Rodeo Project Technical Report Summary.” Initial Assessment for the property as defined under U.S. SEC Regulation S-K 1300. The Rodeo mine is currently in operation and the Rodeo TRS assumes a life of mine (“LOM”) starting point of November 1, 2021. The TRS assumes prices of $1,800/oz Au and $25.00/oz Ag. Mineral resources were calculated by Tetra Tech with an effective date of October 31, 2021 as shown in the Technical Report Summary.  After adjusting for mineral extraction at Rodeo for November and December 2021, the estimate of mineral resources at the Rodeo Property at December 31, 2021 is shown in the table above.  Aaron Amoroso, an employee of the Company and “qualified person” pursuant to S-K 1300, prepared the estimate.  The resources are reported at a cutoff of 1 g/t for stockpiling and 1.6 g/t for processing.  Numbers reported as mineral resource are constrained to a mine design of 1 g/t.

 

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.

Santa Maria:

• PEA:  Tetra Tech. NI 43-101 Technical Report & Updated PEA. Sept. 14, 2018.  NPV calculated using 5% discount rate.

 

Capital Structure

Capital Structure as of May 6, 2022

Shares Issued & Outstanding  164M
    Warrant Shares  13M
    Restricted Stock Units  4M
    KELTIP Units 1 4M
Fully Diluted Shares  185M
Cash and Short-Term Investments 2  $11.7M

1 Key Employee Long Term Incentive Plan
2 As of March 31, 2022. 

All figures rounded to the nearest million except cash.

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