GOLDEN,
Colo., Feb. 28, 2014 /CNW/ - 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