GOLDEN, Colo., July 16, 2015 /PRNewswire/ -- Golden
Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or
"the Company") announces results of mining activities for the
second quarter 2015 of approximately 125,000 ounces of payable
silver equivalent1, in line with the first quarter
2015.
Mill throughput was negatively impacted during the second
quarter by lower than planned amounts of material removed from
the mine. This resulted primarily from the Company's delay in
hiring new and replacement miners during union negotiations for a
one-year extension of its union contract, which were completed in
May 2015. The mill has processed up to 370 tonnes per day
(tpd), is operating well and averaged 225 tpd during the quarter.
The mill did not operate for 19 days during the quarter due
to insufficient material delivered from the mine. The
mill averaged 280 tpd on days that the mill operated during the
quarter.
Cash costs per payable silver ounce, net of by-product credits,
were approximately $26.00 in the
second quarter and are expected to decline as the mine ramps up in
the third quarter. Average grades of material processed
during the second quarter were 170 grams per tonne (gpt) silver and
2.78 gpt gold compared to 178 gpt silver and 2.66 gpt gold in the
first quarter 2015.
Golden Minerals has updated its guidance for the remainder of
2015. The Company has lowered forecasted metals prices to
$16 per ounce silver and $1,125 per ounce gold from $17 and $1,250,
respectively, and now anticipates approximately 400,000 payable
silver equivalent ounces during the remainder of 2015, primarily
due to the absence of pyrite concentrate sales due to lower gold
prices and to lower silver and gold grades than anticipated.
The Company now anticipates cash costs per payable ounce of silver,
net of byproduct credits, of between $15 and
$20 per ounce for the remainder of 2015, with the increase
primarily due to reduced metals sales.
1 Payable silver equivalent ounces
include silver and gold but exclude lead and zinc, with silver
equivalents calculated at 70:1 silver to gold.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden,
Colorado. The Company is primarily focused on mining its
Velardena Properties and the exploration of properties in
Argentina and Mexico.
Non-GAAP Financial Measures
Cash costs per payable silver ounce, net of by-product credits
is a non GAAP financial measure calculated by the Company as set
forth below, and may not be comparable to similar measures reported
by other companies.
Cash costs per payable silver ounce, net of by-product credits,
were calculated based on the mining plan and include all direct and
indirect costs associated with the physical activities that
generate concentrate products for sale to customers, including
mining to gain access to mineralized materials, mining of
mineralized materials and waste, milling, third-party related
treatment, refining and transportation costs, on-site
administrative costs and royalties. Cash costs do not include
depreciation, depletion, amortization, exploration expenditures,
reclamation and remediation costs, sustaining capital, financing
costs, income taxes, or corporate general and administrative costs
not directly or indirectly related to the Velardena Properties.
By-product credits include revenues from gold, lead and zinc
contained in the products sold to customers. Cash costs,
after by-product credits, were divided by the quantity of payable
silver sold in the period to determine cash costs, after by-product
credits, per payable ounce of silver. Cost of sales
calculated in accordance with GAAP, which includes adjustments for
inventory changes and excludes net revenue from by-products and
third-party treatment, refining and transportation costs, which are
reported as part of revenue in accordance with GAAP], is the most
comparable financial measure to cash costs.
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 guidance for
the second half of 2015 regarding payable silver equivalent output,
cash costs per payable silver ounce, net of by-product credits, and
assumed silver and gold prices, anticipated mine ramp up and the
timing of such ramp-up. 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, the anticipated ramp-up of mining,
processing, or making saleable concentrates at the Velardena
Properties; lower than expected silver and gold grades in mined and
processed material; 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 gold
and silver recoveries; failure to achieve 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; 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
including expectations of quantity and gold and silver grades;
failure of veins mined to meet expectations, including expectations
of quantity and gold and silver grades; 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
Director of Investor Relations
(303) 839-5060
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SOURCE Golden Minerals Company