GOLDEN, Colo., Feb. 27, 2015 /CNW/ -- Golden Minerals Company
(NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company")
today announced financial results for the full year ending
December 31, 2014.
For the year ending December 31,
2014 Golden Minerals recorded revenue of $0.2 million and costs of metals sold of
$1.7 million at the Velardena
Properties in Mexico for a
negative gross margin of $1.5
million. Included in the cost of metals sold is a
$1.2 million write down of finished
goods inventory to estimated net realizable value. Revenue
and cost of sales figures reflect approximately two months of
testing the refurbished plant and processing of low grade material
primarily mined for development. Mining recommenced in
July 2014 and processing in
November 2014 after mining activity
was suspended in June 2013. The
Company recorded a 2014 net loss of $18.8
million.
In addition to the negative gross margin noted above, the net
loss includes the following expenditures: $5.5 million on
exploration expenses; $4.6 million on
administrative expenses; $3.1 million
on project expenses at Velardena
incurred during start-up of mining and processing activities;
$3.1 million on non-cash depreciation
and amortization-related expense; $2.5
million related to Velardena shutdown, care and maintenance
activities prior to the resumption of mining activities in
June 2014; and $1.6 million of expense associated with the El
Quevar project. These expenses were partially offset by other
operating income of $0.7 million
related primarily to the sale of certain exploration properties in
the third quarter 2014, $1.6 million
related to the reduction of a tax liability contingency, and
$1.7 million related to the reduction
of a warrant derivative liability.
The Company's cash and cash equivalents balance totaled
$8.6 million at December 31, 2014 compared to $19.1 million at December
31, 2013. The Company expects to end 2015 with a
cash balance of approximately $2.0
million, which takes into account the December 31, 2014 cash balance and positive gross
margin during 2015 from the Velardena Properties of approximately
$2.5 million, reduced by expenditures
during 2015 of approximately $3.0
million for exploration activities, $1.0 million for El Quevar, $4.5 for general and administrative costs, and
$0.6 million for sustaining capital
and increased working capital related to the Velardena Properties.
In arriving at the forecast of positive gross margin for
Velardena, the Company assumed a
price for silver and gold of $17.00
and $1,250 per ounce,
respectively.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden,
Colorado. The Company is primarily focused on operations at
its Velardena Properties 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 legislation, including statements regarding
including the Company's anticipated cash and cash equivalents
balance at year-end 2015, anticipated positive gross margins from
the Velardena Properties in 2015, anticipated expenditures during
2015, assumed silver and gold prices for the forecast of positive
gross margins. These statements are subject to risks and
uncertainties,
These statements are subject to risks and uncertainties,
including: lower than assumed silver and gold prices, higher than
anticipated costs of mining and processing; delays or problems in
mining or processing or the anticipated ramp-up in making saleable
concentrates at the Velardena Properties; variations in material
grade and metallurgical characteristics of processed material;
delays or failures in receiving government approvals or permits or
suspensions of existing approvals and permits; failure to achieve
anticipated metal recoveries or anticipated mining or processing
results including expected quantities of anticipated saleable
products; failures of new mine plan, stope development and slusher
techniques to meet expectations; changes in interpretations of
geological, geostatistical, metallurgical, mining or processing
information and interpretations of the information resulting from
future mining and processing experience; new information from
drilling programs; reliability of metallurgical testing results and
changes in interpretation based on processing results; technical,
permitting, mining, metallurgical, recovery or processing issues;
problems that delay or reduce underground mine and stope
construction; operational changes or problems; failure of mined
material to meet expectations; failure of 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 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, 2014.
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,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
(in
thousands, except share data)
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
8,579
|
|
$
19,146
|
|
Trade
receivables
|
|
-
|
|
25
|
|
Inventories
|
|
1,497
|
|
449
|
|
Value added tax
receivable
|
|
1,316
|
|
1,765
|
|
Prepaid expenses and
other assets
|
|
835
|
|
1,091
|
|
|
Total current
assets
|
|
12,227
|
|
22,476
|
|
Property, plant and
equipment, net
|
|
29,031
|
|
32,375
|
|
Prepaid expenses and
other assets
|
|
-
|
|
30
|
|
|
Total
assets
|
|
$
41,258
|
|
$
54,881
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
other accrued liabilities
|
|
$
1,639
|
|
$
1,365
|
|
Other current
liabilities
|
|
2,551
|
|
4,405
|
|
|
Total current
liabilities
|
|
4,190
|
|
5,770
|
|
Asset retirement and
reclamation liabilities
|
|
2,685
|
|
2,602
|
|
Warrant
liability
|
|
1,554
|
|
-
|
|
Other long term
liabilities
|
|
95
|
|
53
|
|
|
Total
liabilities
|
|
8,524
|
|
8,425
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Common stock, $.01
par value, 100,000,000 shares
authorized; 53,162,833 and 43,530,833 shares issued and
outstanding, respectively
|
|
532
|
|
435
|
|
Additional paid in
capital
|
|
484,197
|
|
494,647
|
|
Accumulated
deficit
|
|
(451,995)
|
|
(448,626)
|
|
|
Shareholders'
equity
|
|
32,734
|
|
46,456
|
|
|
Total liabilities and
equity
|
|
$
41,258
|
|
$
54,881
|
|
GOLDEN MINERALS
COMPANY
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
(Expressed in
United States dollars)
|
|
|
|
|
|
The Years Ended
December 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
(in thousands except
per share data)
|
|
Revenue:
|
|
|
|
|
|
Sale of
metals
|
|
$
235
|
|
$ 10,680
|
|
Costs and
expenses:
|
|
|
|
|
|
Cost of metals sold
(exclusive of depreciation shown below)
|
|
(1,655)
|
|
(17,534)
|
|
Exploration
expense
|
|
(5,528)
|
|
(4,575)
|
|
El Quevar project
expense
|
|
(1,597)
|
|
(2,628)
|
|
Velardena project
expense
|
|
(3,126)
|
|
(3,052)
|
|
Velardena shutdown
and care & maintenance costs
|
|
(2,457)
|
|
(6,374)
|
|
Administrative
expense
|
|
(4,642)
|
|
(5,610)
|
|
Stock based
compensation
|
|
(926)
|
|
(1,555)
|
|
Reclamation
expense
|
|
(199)
|
|
(184)
|
|
Impairment of long
lived assets
|
|
-
|
|
(243,985)
|
|
Impairment of
goodwill
|
|
-
|
|
(11,666)
|
|
Other operating
income, net
|
|
691
|
|
3,526
|
|
Depreciation,
depletion and amortization
|
|
(3,128)
|
|
(6,927)
|
|
|
Total costs and
expenses
|
|
(22,567)
|
|
(300,564)
|
|
Loss from
operations
|
|
(22,332)
|
|
(289,884)
|
|
Other income and
(expenses):
|
|
|
|
|
|
Interest and other
income
|
|
1,708
|
|
444
|
|
Warrant derivative
income
|
|
1,693
|
|
-
|
|
Gain (loss) on
foreign currency
|
|
108
|
|
(626)
|
|
|
Other total income
and (expenses)
|
|
3,509
|
|
(182)
|
|
Loss before income
taxes
|
|
(18,823)
|
|
(290,066)
|
|
Income taxes
benefit
|
|
-
|
|
49,686
|
|
Net loss
|
|
$ (18,823)
|
|
$ (240,380)
|
|
Other
comprehensive gain:
|
|
|
|
|
|
Unrealized gain on
securities, net of tax
|
|
$
-
|
|
$
90
|
|
Comprehensive
loss
|
|
$ (18,823)
|
|
$ (240,290)
|
|
Net loss per
common share – basic and diluted
|
|
|
|
|
|
Loss
|
|
$
(0.41)
|
|
$
(5.61)
|
|
Weighted average
Common Stock outstanding - basic and diluted
|
|
45,862,419
|
|
42,838,735
|
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SOURCE Golden Minerals Company