GOLDEN, Colo., Nov. 06, 2018 (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 third quarter ended September 30, 2018.
Third quarter Summary Financial Results
Third Quarter Business Summary
The Company reported revenue of approximately $1.9 million in the third quarter 2018 related to the oxide plant lease and costs of approximately $0.7 million related to the services Golden provides under the terms of the lease, for a net margin of $1.2 million. Other operating income of $3.2 million included $3.0 million from the sale of Golden’s remaining interest in the Celaya project to The Electrum Group LLC, as well as pro-rated income from the farm-out of the Company’s Zacatecas properties to Santacruz Silver. El Quevar project expense was $0.4 million in the third quarter 2018 and includes costs associated with the recently-announced PEA as well as project evaluation and property holding costs. Exploration expenses were $1.1 million in the third quarter, reflecting increased exploration and project evaluation activities at the Santa Maria as well as other projects in Mexico. Exploration expenses also include property holding costs and allocated administrative expenses for all Company exploration projects other than El Quevar. Administrative expenses (including all costs associated with being a public company, costs incurred in support of our exploration properties and other administrative expenses and professional fees) were $0.7 million in the third quarter. Golden reported net income of $1.6 million or $0.02 per share in the third quarter 2018 compared to a net loss of $0.3 million or $0.00 per share in the year ago period.
Twelve Month Financial Outlook
The Company ended the third quarter 2018 with a cash balance of $5.0 million and expects to receive approximately $4.6 million in net operating margin from the lease of the oxide plant during the 12 months ending September 30, 2019. Assuming no sales of common stock under the Company’s At The Market Offering Agreement or Lincoln Park Capital programs occur, the Company projects it would end 2018 with a cash balance of $3.5 million and end September 30, 2019 with a cash balance of $1.0 million, based on the following forecasted expenditures during the next 12 months:
Additional information regarding third quarter 2018 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.
CONDENSED CONSOLIDATED BALANCE SHEETS(US Dollars, unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(US dollars, unaudited)
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on advancing its El Quevar property in Argentina and in acquiring and advancing mining properties in Mexico with emphasis on areas near its Velardeña processing plants.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation, including statements relating to the anticipated net operating margin from the Velardeña oxide plant lease; assumptions regarding future activity under the Company’s ATM and Lincoln Park Capital programs; potential future operations at Santa Maria and El Quevar; and the anticipated cash balance based on forecasted expenditures on care and maintenance at the Velardeña Properties and El Quevar project, exploration and evaluation expenditures at the El Quevar Project, property holding costs at the El Quevar project, general and administrative costs, working capital expenditures, and expenditures on exploration activities and holding costs related to properties in Mexico, including evaluations and assessment costs at Santa Maria and other properties. These statements are subject to risks and uncertainties, including: lower than anticipated revenue from the oxide plant lease as a result of delays or problems at the third party’s mine or the oxide plant; earlier than expected termination of the lease or other causes; the reasonability of the economic assumptions at the basis of the results of the El Quevar PEA and the Santa Maria PEA; changes in interpretations of geological, geostatistical, metallurgical, mining or processing information and interpretations of the information resulting from future exploration, analysis or mining and processing experience; new information from drilling programs or other exploration or analysis; unexpected variations in mineral grades, types and metallurgy; fluctuations in silver and gold metal prices; failure of mined material or veins mined to meet expectations; increases in costs and declines in general economic conditions; and changes in political conditions, in tax, royalty, environmental and other laws in Mexico and Argentina, 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 SEC by Golden Minerals, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler, Director of Investor Relations
SOURCE: Golden Minerals Company