Investors

Overview

Golden Minerals 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 four of its precious metals projects. The company is currently focused on restarting operations at its Velardeña Properties, which contain two underground silver-gold mines located in Durango State, Mexico. Given the company concluded production at its Rodeo gold mine earlier in 2023, the only near-term opportunity to generate cash flow from mining to support continued operations is the Velardeña mine.

On November 8, 2023, the company entered into a Securities Purchase Agreement with certain purchasers providing for the issuance and sale by Golden Minerals of shares of its common stock and related warrants and pre-funded warrants. (See the Prospectus Form 424B4 dated Nov. 8, 2023, available on EDGAR and the company's website.) This offering raised $4.2 million and netted approximately $3.8 million after expenses. Golden Minerals does not currently have sufficient resources to meet its expected cash needs during the twelve months ended September 30, 2024. At September 30, 2023, it had current assets of approximately $5.9 million, including cash and cash equivalents of approximately $1.6 million, and accounts payable and other current liabilities of approximately $5.6 million. The company will require further sources of capital.

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 (currently farmed out to Barrick; Barrick has reported interesting initial drill results in its search for gold on the property). 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.

Why Invest in Golden Minerals Company?

Cash Flow

  • 2021 net operating margin from Rodeo gold-silver operations:  $12.3 million
  • 2022 net operating margin from Rodeo:  $5.7 million
  • 2023 net operating margin from Rodeo through Q3:  $0.5 million

Resources

  • M&I resources as defined under S-K 1300 guidelines:  13.1M oz Ag + 220k oz Au1  
  • Inferred resources as defined under S-K 1300 guildelines:  32.2M oz Ag + 328koz Au

Value

  • Technical report-estimated values 2
    • Velardeña -$87.6M NPV (2023 TRS, MII Plan) or $52.3M (2023 TRS, MI Plan)
    • El Quevar - $44.9M NPV (2018 PEA)
    • Santa Maria - $10.6M NPV (2018 PEA)

Cash

$1.6M (as of Sept. 30, 2023) 

Debt

None

Project
Pipeline

Argentina:  El Quevar, Sarita Este, Desierto
Mexico:  Velardeña, 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 Velardeña, Rodeo and Yoquivo, as reported in the company's 2022 Form 10-K. The data exclude El Quevar and Santa Maria.

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.

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.
 
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.

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 November 8, 2023)

Shares Issued & Outstanding  14.1M
    Warrant Shares  11.3M
    Restricted Stock Units  0.3M
    KELTIP Units 1 0.2M
Fully Diluted Shares  25.8M
Cash and Short-Term Investments 2  $1.6M

1 Key Employee Long Term Incentive Plan
2 As of September 30, 2023. 

Numbers may not sum due to rounding.

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