GOLDEN, Colo., Feb. 28, 2014 /PRNewswire/ -- Golden
Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or
"the Company") announces financial results for the full year ending
December 31, 2013.
For the year ending December 31,
2013 Golden Minerals recorded revenue of $10.7 million and costs of metals sold of
$17.5 million for a negative gross
margin of $6.9 million related to the
sale of metals at the Velardena Properties in Mexico. The
Company suspended mining operations at Velardena on June 19, 2013 due to depressed precious metals
prices in order to conserve the asset until the Company is able to
create new mining and processing plans that at then-current silver
and gold prices indicate a sustainable cash margin. The
Company recorded a 2013 net loss of $240.4
million, of which $210.7
million is attributable to non-cash impairment charges, net
of tax. Approximately $204.2
million of the net impairment charges were recorded in the
second quarter 2013 related to lower metals prices and to the
suspension of mining and processing activities at Velardena in
June 2013. The remaining $6.5 million in non-cash impairment charges, net
of tax, were recorded during the fourth quarter 2013.
In addition to the negative gross margin and impairment charges
noted above, the net loss includes $6.9
million for non-cash depreciation and amortization-related
expense; $6.4 million related to
Velardena shutdown, care and maintenance activities; $5.6 million for general and administrative
expense; $4.6 million for exploration
expense; $3.1 million for project
expenses at Velardena; and $2.6
million of expense associated with the El Quevar
project. These expenses were partially offset by other
operating income of $3.5 million
related primarily to the sale of certain Peruvian exploration
properties in the first quarter 2013 and $4.7 million related to current and deferred tax
benefits.
The Company's cash and cash equivalents balance totaled
$19.1 million at December 31, 2013 compared to $44.6 million at December
31, 2012. The $25.5
million decrease during 2013 resulted primarily from the
cash expenses noted above plus $4.8 million in Velardena Properties capital
and development expenditures and a decrease in working capital of
$1.4 million primarily related to a
reduction in inventories and receivables at the Velardena
Properties.
Current Activities
We continue to evaluate plans for a restart of mining at the
Velardena Properties, with the objective of implementing a plan
that at then-current prices for silver and gold indicates a
sustainable cash margin for mining. We have been mapping and
sampling underground veins containing higher grade shoots to verify
mine modeling in support of restart planning. We are
analyzing the potential of mining from a combination of different
veins at our Velardena Properties based primarily on grades and
metallurgy. Additionally, we are reviewing alternative high-grade,
narrow-vein mining methods to determine the most beneficial mining
method for a potential restart. In these efforts, we are
using our own technical personnel as well as independent third
party consultants. During the first quarter 2014 we commenced
a 5,000-meter underground drill program at the Velardena mine in
order to obtain additional information to assist us in creating our
restart plan. The drill program is being conducted in known
but previously undrilled areas located outside the current 43-101
resource. We expect to receive the drill results in the
second quarter 2014. Separately, Golden continues to pursue outside feed
sources for the processing facilities at the Velardena
Properties. Such a third-party agreement could permit an
earlier restart of the Velardena facilities than would otherwise be
the case.
During the fourth quarter 2013, the Company began a planned
2,000-meter drilling program at the Los Azules exploration property
located in Chihuahua, Mexico. The Company announced
high-grade gold drill intersections associated with this drilling
program in a February 27, 2014 press
release. Based on program results to date, the Company has
approved an additional $1.1 million
for drilling focused on definition of a target gold and silver
resource within the first 250 vertical meters along the strike of
the vein beneath areas of historic mining activity.
Separately, the Company continues to seek a partner for its
El Quevar silver project located in the Salta Province of
Argentina.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden,
Colorado. The Company is primarily focused on efforts
to create a new mining and processing plan for its Velardena
Properties, the advancement of its El Quevar advanced exploration
property in Argentina, and the
exploration of properties in Argentina and Mexico.
Forward-Looking Statements 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 laws, including statements
regarding the continuing evaluation of plans for a restart of
mining at the Velardena Properties and related technical work
including review of alternative mining methods, underground
drilling and the pursuit of outside feed sources for the processing
facilities which might permit an earlier restart; the drilling
program at Los Azules and continuation of efforts to seek a partner
for the El Quevar silver project. These statements are
subject to risks and uncertainties, including unexpected events at
the Velardena Operations, including higher than anticipated
suspension or care and maintenance costs, accidents or damage to
equipment or environmental or permitting problems; difficulties in
or inability to develop a new operating plan for production at a
sustainable cash positive margin, which could be caused by, among
other things, unfavorable results from the underground drilling
program, inability to confirm the new mine modeling and other
technical information, variations in ore grade and relative
amounts, grades and metallurgical characteristics of oxide and
sulfide ores; labor or union problems; delays or failure in
receiving or maintaining required government approvals or
permits; technical, permitting, mining, metallurgical or processing
issues; inability to identify a treatment option to improve gold
recoveries; further decreases or insufficient increases in
silver and gold prices; loss of and inability to adequately replace
skilled mining and management personnel; interpretations and
changes in interpretations of geologic information; volatility or
other changes in the U.S. and Canadian securities markets;
availability and cost of materials, supplies and electrical power
required for mining operations and exploration; fluctuations in
costs and general economic conditions; changes in political
conditions, tax, environmental and other laws; and diminution of
physical safety of employees in Mexico, and other conditions in the countries
in which the Company operates. Additional risks relating to
Golden Minerals Company may be found in the periodic and current
reports filed with the Securities Exchange Commission by Golden
Minerals Company, including the Annual Report on Form 10-K for the
year ended December 31, 2013.
For additional information please visit
http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler
(303) 839-5060
Director of Investor Relations
GOLDEN MINERALS
COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
(Expressed in
United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
(in
thousands, except share data)
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
19,146
|
|
$
44,406
|
|
Investments
|
|
-
|
|
242
|
|
Trade
receivables
|
|
25
|
|
1,291
|
|
Inventories
|
|
449
|
|
3,388
|
|
Value added tax
receivable
|
|
1,765
|
|
4,422
|
|
Prepaid expenses and
other assets
|
|
1,091
|
|
1,044
|
|
|
Total current
assets
|
|
22,476
|
|
54,793
|
Property, plant and
equipment, net
|
|
32,375
|
|
280,905
|
Assets held for
sale
|
|
-
|
|
575
|
Goodwill
|
|
-
|
|
11,666
|
Prepaid expenses and
other assets
|
|
30
|
|
163
|
|
|
Total
assets
|
|
$
54,881
|
|
$
348,102
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
|
$
1,365
|
|
$
6,232
|
|
Other current
liabilities
|
|
4,405
|
|
7,074
|
|
|
Total current
liabilities
|
|
5,770
|
|
13,306
|
Asset retirement and
reclamation liabilities
|
|
2,602
|
|
2,259
|
Deferred tax
liability
|
|
-
|
|
47,072
|
Other long term
liabilities
|
|
53
|
|
193
|
|
|
Total
liabilities
|
|
8,425
|
|
62,830
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Equity
|
|
|
|
|
|
Common stock, $.01
par value,
|
|
|
|
|
|
|
100,000,000 shares
authorized; 43,530,833 and 43,265,833 shares issued and
outstanding, respectively
|
|
435
|
|
433
|
|
Additional paid in
capital
|
|
494,647
|
|
493,175
|
|
Accumulated
deficit
|
|
(448,626)
|
|
(208,246)
|
|
Accumulated other
comprehensive income loss
|
|
-
|
|
(90)
|
|
|
Shareholders'
equity
|
|
46,456
|
|
285,272
|
|
|
Total liabilities and
equity
|
|
$
54,881
|
|
$ 348,102
|
GOLDEN MINERALS
COMPANY
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(Expressed in
United States dollars)
|
|
|
|
|
|
The Years Ended
December 31,
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
(in thousands except
per share data)
|
Revenue:
|
|
|
|
|
|
Sale of
metals
|
|
$
10,680
|
|
$
26,086
|
Costs and
expenses:
|
|
|
|
|
|
Cost of metals sold (exclusive of depreciation
shown below)
|
|
(17,534)
|
|
(33,369)
|
|
Exploration
expense
|
|
(4,575)
|
|
(7,009)
|
|
El Quevar project
expense
|
|
(2,628)
|
|
(5,115)
|
|
Velardena project
expense
|
|
(3,052)
|
|
(7,912)
|
|
Velardena shutdown
and care & maintenance costs
|
|
(6,374)
|
|
-
|
|
Administrative
expense
|
|
(5,610)
|
|
(7,063)
|
|
Stock based
compensation
|
|
(1,555)
|
|
(2,588)
|
|
Reclamation
expense
|
|
(184)
|
|
(226)
|
|
Impairment of long
lived assets
|
|
(243,985)
|
|
-
|
|
Impairment of
goodwill
|
|
(11,666)
|
|
(58,489)
|
|
Other operating
income, net
|
|
3,526
|
|
2,487
|
|
Depreciation,
depletion and amortization
|
|
(6,927)
|
|
(10,012)
|
|
|
Total costs and
expenses
|
|
(300,564)
|
|
(129,296)
|
|
Loss from
operations
|
|
(289,884)
|
|
(103,210)
|
Other income and
(expenses):
|
|
|
|
|
|
Interest and other
income
|
|
444
|
|
2,543
|
|
Royalty
income
|
|
-
|
|
373
|
|
Interest and other
expense
|
|
-
|
|
(257)
|
|
(Loss) gain on
foreign currency
|
|
(626)
|
|
512
|
|
|
Other total income
and (expenses)
|
|
(182)
|
|
3,171
|
|
Loss from operations
before income taxes
|
|
(290,066)
|
|
(100,039)
|
|
Income taxes
benefit
|
|
49,686
|
|
8,014
|
|
Net loss
|
|
$
(240,380)
|
|
$
(92,025)
|
Other
comprehensive gain:
|
|
|
|
|
|
Unrealized gain on
securities, net of tax
|
|
$
90
|
|
$
32
|
|
Comprehensive
loss
|
|
$
(240,290)
|
|
$
(91,993)
|
Net loss per
common share – basic and diluted
|
|
|
|
|
|
Loss
|
|
$
(5.61)
|
|
$
(2.45)
|
Weighted average
Common Stock outstanding - basic and diluted
|
|
42,838,735
|
|
37,522,871
|
|
|
|
|
|
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SOURCE Golden Minerals Company