GOLDEN, Colo., Aug. 11, 2016 /PRNewswire/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN and TSX: AUM) announces results for the second quarter ended June 30, 2016.
Second Quarter Summary
The Company reported a net loss of $3.9 million in the second quarter 2016 compared to a net loss of $3.9 million in the second quarter 2015. The 2016 net loss includes $1.2 millionof non-cash derivative losses related to the Company's warrants and convertible loan. (See Notes 11 and 18 in the Company's Form 10-Q for the period ending June 30, 2016 for complete details.) The 2015 net loss of $3.9 million included non-cash derivative income of $0.2 million related to the Company's warrants. Revenue of $1.6 million in the second quarter 2016, which is wholly related to the lease of the Company's oxide plant, was lower than revenue of $2.0 million in the second quarter 2015 which was generated from mining and processing activities at Golden Minerals' Velardena Properties. Operating costs in the second quarter 2016 were $4.2 million, lower than $6.5 million in the 2015 period, with the decrease largely due to $2.8 million costs of metals sold incurred in the 2015 period.
Also in the second quarter 2016, the Company recorded $1.3 million of non-operating expenses related to its outstanding warrants and to the one-year convertible loan with The Sentient Group ("Sentient"), of which $1.2 million are non-cash expenses. Details are as follows:
The Company's cash and cash equivalents balance of $3.9 million on June 30, 2016 was $0.2 million lower than the year-end 2015 balance of $4.1 million. The primary uses of cash during the first six months of 2016 were as follows:
These items were offset in part by:
The Company currently expects it will have sufficient cash to continue its business plan into 2017 without external funding. In addition to the $3.9 million cash balance at June 30, 2016, the Company expects to receive approximately $2.4 million in net operating margin from the lease of the oxide plant in the remaining two quarters of 2016 and has received $0.6 millionfrom the sale of non-strategic exploration properties in the third quarter. The Company currently plans to spend approximately $3.9 million during the remaining two quarters of 2016, resulting in a projected cash balance at year-end 2016 of approximately $3.0 million:
Additional information regarding second quarter 2016 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.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on acquiring and advancing mining properties near its Velardena processing plants and the exploration of properties in Mexico and Argentina.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and applicable Canadian securities legislation, including statements regarding including the Company's planned expenditures during the remainder of 2016 and anticipated cash balance at year-end 2016; net cash flow expected to be received in the remainder of 2016 from a third party lease of the Velardena oxide mill; and planned exploration and anticipated drill results at certain properties in Mexico, including our Santa Maria and Rodeo properties. These statements are subject to risks and uncertainties, including: lower than anticipated net cash flow from the oxide plant lease due to problems at the third party's mine or the oxide plant resulting in less than anticipated production or due to processing delays or cancellation of the lease due to inability to obtain required permits or for other reasons; unfavorable results from exploration at the Santa Maria, Rodeo or other exploration properties and whether we will be able to advance these or other exploration properties; potential delays in our exploration activities or other activities to advance properties towards mining resulting from environmental events or permitting delays or problems, accidents, problems with contractors, disputes under agreements related to exploration properties, unanticipated costs and other unexpected events; increases in costs and declines in general economic conditions; inability to raise external financing on acceptable terms or at all; and changes in political conditions, in tax, royalty, environmental and other laws in Mexico, and financial market conditions. Golden Minerals assumes no obligation to update this information. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
Golden Minerals Company
Director of Investor Relations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
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SOURCE Golden Minerals Company