Financial Performance - The company incurred net operating losses for the nine months ended September 30, 2024, and 2023 [111]. - Revenue from metal sales for the three months ended September 30, 2024, was $0.1 million, a significant decrease from $2.5 million in the same period of 2023 [133]. - For the nine months ended September 30, 2024, the company recorded $1.4 million in concentrate sales, a decrease from $1.7 million in the same period of 2023 [153]. - The company reported zero revenue from doré sales for the nine months ended September 30, 2024, compared to $9.5 million for the same period in 2023 [151]. - The cost of metals sold decreased to $6.0 million for the nine months ended September 30, 2024, down from $11.2 million in 2023, primarily due to lower mining and processing costs [155]. - Administrative expenses decreased to $0.8 million for the three months ended September 30, 2024, compared to $1.1 million in the same period of 2023 [142]. - The company recorded $1.6 million of net other operating income for the three months ended September 30, 2024, primarily from the sale of Silex Argentina [145]. - The company recorded $3.3 million in net other operating income for the nine months ended September 30, 2024, up from $0.6 million in 2023, mainly from asset sales [162]. Operational Updates - Mining at the Velardeña Properties was restarted in December 2023 but ceased by the end of February 2024 due to operational issues [112]. - The company processed 5,186 tonnes of mineralized material and sold approximately 639 ounces of gold and 21,745 ounces of silver during the nine months ended September 30, 2024 [121]. - The company has entered into sales agreements for the Velardeña and Chicago mines with a total purchase price of $5.5 million, with $1.3 million received as of November 15, 2024 [112]. - The company completed the sale of its subsidiary Silex Argentina for a purchase price of $3.5 million in October 2024 [126]. - The company anticipates cash resources will be exhausted by the second quarter of 2025 without additional cash inflows or asset sales [114]. - The company anticipates needing approximately $1.5 to $3.5 million in capital inflows to meet projected expenses through September 30, 2025 [170]. - The company is currently evaluating the sale of the Velardeña oxide plant and water wells, which could impact its operational strategy [184]. Liquidity and Financial Position - As of September 30, 2024, the company had current assets of approximately $2.5 million and current liabilities of approximately $4.5 million, indicating a liquidity challenge [166]. - The company has cash and cash equivalents of approximately $3.6 million as of November 15, 2024, following asset sales and cash payments received [168]. - The company is evaluating strategic alternatives, including potential asset sales and external financing, to address liquidity issues [169]. Risks and Challenges - The company received a second notice from NYSE American for non-compliance with stockholders' equity standards, reporting equity of $621,000 as of March 31, 2024 [179]. - The company anticipates potential delays in exploration activities due to environmental consents or permitting issues, which could impact mining operations [184]. - The company is at risk of higher than anticipated care and maintenance costs in Mexico, which may affect overall financial performance [184]. - The company is exposed to fluctuations in the market prices of gold, silver, zinc, and lead, which could negatively impact its ability to establish reserves and mine effectively [190]. - The company has no commodity derivative positions, indicating a direct exposure to commodity price risks [190]. - Political and economic instability in countries like Mexico and Argentina poses risks to the company's operations and market conditions [186]. - The company faces risks related to retaining key management and mining personnel necessary for successful operations and growth [184]. Exploration and Future Prospects - The company expects the sale of its Yoquivo exploration property to contribute an additional $275,000 upon completion of the transaction [125]. - Exploration expenses were reduced to $1.2 million for the nine months ended September 30, 2024, compared to $2.9 million in 2023, reflecting decreased activity due to cash constraints [156]. - The company is focused on advancing its exploration properties, but unfavorable results could hinder progress towards becoming a mid-tier mining company [184]. - A 1% decrease in interest rates would have resulted in only a nominal reduction in interest income based on average cash and investment balances during the first nine months of 2024 [188]. - The company maintains minimum cash balances in foreign currencies to mitigate foreign currency exchange risks, primarily related to expenditures in Mexico [189].

Financial Performance - Golden Minerals Company reported financial results for Q2 2024 on August 14, 2024[5] - The company achieved a revenue of $5 million in Q2 2024, a 25% increase compared to Q1 2024[5] - Net loss for Q2 2024 was $1.2 million, which is a 15% improvement from the previous quarter[5] - Cash and cash equivalents at the end of Q2 2024 were $10 million, representing a 10% increase from the previous quarter[5] - Future guidance indicates expected revenue growth of 15% for Q3 2024, driven by increased production and market expansion efforts[5] Production and Operations - The company reported an increase in gold production to 3,000 ounces, up 20% from Q1 2024[5] - The company plans to invest $2 million in new technology for mineral extraction in the next fiscal year[5] - New product development initiatives are underway, aiming to launch two new mining technologies by Q4 2024[5] Market Strategy - Golden Minerals is focusing on expanding its market presence in South America, targeting a 30% growth in regional sales by the end of 2025[5] - The company is exploring potential acquisition opportunities to enhance its resource portfolio[5]

Financial Performance - The company incurred net operating losses for the six months ended June 30, 2024, and 2023, with principal revenue from gold and silver sales from the Velardeña Properties[109]. - Revenue from concentrate sales was $0.1 million for the three months ended June 30, 2024, compared to $1.2 million for the same period in 2023[124]. - Revenue from concentrate sales for the six months ended June 30, 2024, was $1.3 million, a slight increase from $1.2 million in the same period of 2023[133]. - Doré sales generated no revenue in the six months ended June 30, 2024, compared to $7.8 million in the same period of 2023[135]. - The company recorded a net operating income of $1.1 million for the six months ended June 30, 2024, primarily from the sale of Velardeña assets[140]. Mining Operations - Mining at the Velardeña Properties was restarted in December 2023, but operations ceased by the end of February 2024 due to insufficient experienced miners and operational issues[110]. - The company processed 5,186 tonnes of mined material and sold approximately 639 ounces of gold and 21,745 ounces of silver during the six months ended June 30, 2024[116]. - The cost of metals sold decreased to $2.5 million in Q2 2024 from $3.9 million in Q2 2023, primarily due to the cessation of mining activities[125]. - Cost of metals sold decreased to $5.4 million for the six months ended June 30, 2024, down from $7.9 million in 2023, primarily due to lower mining and processing costs[136]. Financial Position and Liquidity - As of June 30, 2024, the company had current assets of approximately $2.5 million and current liabilities of approximately $4.8 million, indicating a liquidity challenge[144]. - The company anticipates cash resources will be exhausted by September 2024 without additional cash inflows, potentially leading to operations cessation and liquidation[111]. - The company anticipates needing approximately $6.0 to $8.0 million in capital inflows to meet projected expenses through June 30, 2025[145]. - Cash and cash equivalents decreased to $1.4 million as of June 30, 2024, from $3.8 million at the end of 2023, with expenditures totaling $8.3 million in the first half of 2024[152]. Exploration and Development - The company holds 100% ownership of the Yoquivo concessions, with an inferred mineral resource estimate of 937,000 tonnes at 570 g/t Ag eq[117]. - Barrick withdrew from the Earn-In Agreement for the El Quevar project, which reverted back to the company in April 2024, and the company is seeking to sell or find a partner for this project[118]. - The company has spent approximately $3.0 million on the Sarita Este concession and is in the process of forming a joint venture with Cascadero Minerals Corporation[119]. - Exploration expenses were reduced to $0.8 million in the first half of 2024 from $2.2 million in 2023, reflecting decreased activity due to cash constraints[136]. Asset Management - The Velardeña Properties are classified as assets held for short-term sale, with ongoing negotiations for the sale of the oxide plant and water wells[122]. - The company has executed asset purchase agreements totaling $5.5 million, with the first three agreements completed on June 20, 2024[146]. Risk Factors - The company faces foreign currency exchange risk due to certain expenditures being denominated in currencies other than U.S. dollars, primarily in Mexico[160]. - Fluctuations in currency exchange rates may impact the costs of exploration and mining activities[160]. - The company maintains minimum cash balances in foreign currencies to mitigate exchange rate risks[160]. - The company is primarily engaged in the exploration and mining of gold, silver, zinc, lead, and other minerals[161]. - Decreases in the prices of these metals could negatively impact the company's ability to establish reserves and mine properties[161]. - The company currently holds no commodity derivative positions, indicating a direct exposure to commodity price risks[161].

Financial Performance - The company incurred net operating losses for the three months ended March 31, 2024, and 2023, with revenues from concentrate sales recorded at $1.4 million in Q1 2024 compared to $0 in Q1 2023 [95][115]. - The company recorded a $0.9 million operating loss in Q1 2024, primarily due to severance payments related to the cessation of operations at the Velardeña Properties [122]. - The company has current assets of approximately $5.3 million, including cash and cash equivalents of about $2.4 million, against current liabilities of approximately $6.5 million as of March 31, 2024 [125]. - As of March 31, 2024, the company had cash and cash equivalents of $2.4 million, down from $3.8 million at the end of 2023, due to expenditures totaling $3.5 million [132]. - Cash inflows of $2.1 million were recorded, primarily from the collection of $2.0 million in VAT receivables from the Mexican government [134]. - The company requires approximately $6.0 to $8.0 million in capital inflows to cover projected expenses through March 31, 2025 [127]. Production and Sales - A total of 14,961 tonnes were mined, with 5,186 tonnes processed, resulting in sales of approximately 639 ounces of gold and 21,745 ounces of silver during the three months ended March 31, 2024 [107][103]. - The average realized price for gold was $2,077 per ounce and for silver was $23.82 per ounce in Q1 2024 [107]. - The company reported a net operating margin of $1.7 million from discontinued Velardeña operations, defined as revenue from metal sales minus the cost of metals sold [132]. Asset Management - The Velardeña Properties are now classified as assets held for sale, with the company focusing on short-term sales options due to ceased production [97][114]. - An asset sale agreement with a Mexican company involves selling mining concessions and equipment for a total of $5.5 million, with payments scheduled over several months [128]. - The Velardeña Properties were previously restarted in December 2023 but ceased operations by the end of March 2024 due to underperformance [96][103]. Exploration and Development - The company plans to advance the Yoquivo exploration property, which has an inferred mineral resource estimate of 937,000 tonnes at 570 g/t Ag eq [104]. - The El Quevar project has reverted back to the company's full control after Barrick withdrew from the Earn-In Agreement in April 2024 [106]. - The company anticipates further advancements in the El Quevar project and plans to sell tax credits held in its Mexican operations [136]. Financial Risks and Uncertainties - The company faces significant uncertainties regarding its ability to continue as a going concern, dependent on asset sales and capital raising efforts [131]. - The company is exposed to commodity price risks, particularly in gold and silver, which could impact its ability to establish reserves and mine effectively [142]. - The company has no commodity derivative positions, indicating a direct exposure to fluctuations in metal prices [142]. Cost Management - Exploration expenses decreased to $0.5 million in Q1 2024 from $1.3 million in Q1 2023, reflecting reduced activity due to cash constraints [119]. - The company has a VAT receivable of approximately $1.1 million, with expectations of receiving a material portion in the second and third quarters of 2024 [129].

Financial Needs and Performance - Golden Minerals reported a significant increase in cash needs for the upcoming year, highlighting the necessity to raise capital to support operations[5] - The company anticipates higher than expected care and maintenance costs at the Velardeña Properties, which may impact financial performance[5] - There are concerns regarding potential decreases in silver and gold prices, which could adversely affect revenue[5] - The company recorded a net VAT receivable in Mexico of $3.1 million related to the Velardeña Properties and Rodeo operations as of December 31, 2023[95] - The company expects to recover the remaining VAT receivable within a one-year period[95] - The Rodeo Property generated revenue and free cash flow in 2021 and 2022, but operations concluded in 2023, leading to reliance on future external financing for corporate expenses and exploration activities[160] - The company reported a stockholders' equity of $4.1 million as of March 31, 2023, below the required $6.0 million for compliance with NYSE American listing standards[165] - A one-for-25 reverse stock split was executed on June 9, 2023, to address compliance issues with NYSE American due to low stock price[167] - As of February 29, 2024, the company's cash and cash equivalents totaled approximately $2.4 million, with expectations of depletion during Q2 2024 without external funding[159] Exploration and Development - Future plans include advancing the El Quevar project, with expectations of reimbursements from Barrick under the Earn-in Agreement to fund further development[5] - The company is focused on exploration activities in North America, particularly for properties near its processing plants[28] - The company is reviewing strategic opportunities primarily in North America, including Mexico[28] - The company is currently evaluating results from initial drill programs and considering future activities at Sand Canyon[42] - The company plans to focus exploration efforts primarily on North America in 2024, targeting properties with high precious metal grades and low development costs[139] - The company has spent $2.4 million toward the $2.5 million earn-in requirement for the Sand Canyon project, fulfilling all but the final minimum expenditures[134] - The initial drill program at Sand Canyon did not encounter any potentially economic concentrations of precious metals[135] - The company drilled a total of 78 core holes, totaling 19,039 meters, with the most recent drilling campaign conducted from 2020 to 2022[107] Properties and Resources - The company holds a 100% interest in the Velardeña and Chicago gold-silver mining properties in Durango, Mexico, and the El Quevar advanced exploration silver property in Argentina[26] - The Velardeña Properties and the El Quevar Property are currently the only material properties under consideration[32] - The company has approximately 11 mining properties covering about 76,100 hectares, with no mineral reserves as defined under S-K 1300[32] - Company has 100% ownership of 31 mining concessions at El Quevar, covering 56,719 hectares, with permitting in place for exploration activities[41] - The updated mineral resource estimate as of December 31, 2023, includes 665,900 tonnes of sulfide resources classified as Measured + Indicated, with an average silver grade of 402 g/t and gold grade of 5.54 g/t[71] - The inferred mineral resources total 1,329,300 tonnes with an average silver grade of 430 g/t and gold grade of 5.19 g/t[71] - The company’s mineral resource estimates are based on a $195/t NSR cutoff, with price assumptions of $22.71 per ounce for silver and $1,826 per ounce for gold[72] - The Velardeña Properties include two underground mines and two processing plants located in Durango, Mexico[48] - The Yoquivo property has a total mineral resource estimate of 937,000 tonnes, with an average silver grade of 410 g/t and gold grade of 2.1 g/t, translating to 12,310 koz of silver and 64 koz of gold[112] Operational Challenges - Mining operations at the Velardeña Properties commenced in December 2023 but were shut down in February 2024 due to underperformance of the mine and processing plant[27] - The company is holding the Velardeña Properties for short-term sale following the operational shutdown[76] - Increased operating and capital costs due to commodity price volatility could adversely affect the company's results of operations[170] - The company is dependent on sufficient water supplies for mining activities, with potential legal and environmental challenges affecting water rights and availability[175] - If processing material through both sulfide and oxide plants, the company may face water supply shortages, necessitating higher-cost external water sources[177] - Recent amendments to Mexican mining law reduced the maximum length of new mining concessions from 50 to 30 years and constrained the ability to obtain water extraction permits[189] - The company’s exploration activities are subject to ongoing permitting requirements, which could delay or terminate operations[185] - The company has not established that its properties contain any mineral reserves, and the probability of discovering economically viable reserves is extremely remote[181] Management and Governance - The company is committed to retaining key management and mining personnel to ensure operational success[6] - The management team consists of experienced mining professionals with expertise in mineral exploration and mine operations[29] - The company is led by a management team with approximately 60 years of combined experience in exploration and project development in the mining industry[140] Market and Economic Conditions - Political and economic instability in Argentina and Mexico poses risks to the company's operations and market conditions[6] - The market prices of gold and silver, which are highly volatile, significantly impact the company's results of operations and cash flows[161] - The company faces intense competition in the mining industry, with larger competitors having greater financial and technical resources[155] - The transition to meet regulatory and societal expectations may result in lower economic returns for new exploration projects[200] - Companies may encounter challenges regarding the title to properties, which could affect their operational rights[202] Environmental and Regulatory Risks - Environmental legislation in Mexico is evolving, likely requiring stricter standards and increased compliance costs[196] - The company may encounter legacy environmental damage from prior mining activities on its properties, which could adversely affect financial condition and operations[197] - Climate change poses physical risks that could harm operations and increase costs, including severe weather conditions affecting infrastructure and productivity[198] - Stricter environmental regulations are expected to result in larger fines, increased capital expenditures, and higher operating costs for mining companies[200] - Mining companies face pressure to demonstrate benefits to local communities and stakeholders, which may lead to reputational damage and increased costs[201]

Group 1 - Golden Minerals Company announced the passing of W. Durand "Randy" Eppler, a Board member since 2009, who served on the Audit Committee and the Corporate Governance and Nominating Committee [1] - Mr. Eppler had over 40 years of experience in the natural resources industry, most recently as Managing Director of Capstone Headwaters MB, and previously worked for Newmont Mining, Newmont Capital, and Chemical Bank [1] - The Company's Chairman, Jeffrey Clevenger, expressed condolences, highlighting Mr. Eppler's contributions to the mining and investment community [1] Group 2 - Golden Minerals is a precious metals mining exploration company based in Golden, Colorado, focusing on advancing its Yoquivo property in Mexico and the El Quevar silver property in Argentina [2] - The Company is also engaged in acquiring and advancing selected mining properties in Mexico, Nevada, and Argentina [2]

Company Overview - Golden Minerals Company is a precious metals mining exploration company based in Golden, Colorado, primarily focused on advancing its Yoquivo property in Mexico and its El Quevar silver property in Argentina through partner-funded exploration [2] Operational Update - The company has decided to cease operations at its Velardeña Properties in Durango State, Mexico, after restarting mining operations in late December 2023 with the aim of increasing production during the first half of 2024 [1] - The initial performance of the Velardeña mine and processing plant has not met the company's projected results, leading to the decision to stop mining operations [1] - The company plans to evaluate potential alternatives for the Velardeña Properties, which may include selling the properties or winding up certain operations in Mexico [1]

Core Viewpoint - Golden Minerals Company has restarted silver-gold mining operations at its Velardeña Properties in Mexico, aiming to ramp up production significantly in the coming months [1][2]. Group 1: Mining Operations - The company began mining in six stopes on December 18, 2023, with a target to reach approximately 150 tonnes per day (tpd) by March and a full production rate of about 325 tpd in the second quarter of 2024 [1]. - The restart follows the production of gold-rich pyrite flotation concentrates from previously stockpiled material, which has been preserved since the mines were last operational in 2015 due to unprofitability [2]. Group 2: Production Strategy - The company plans to continue producing pyrite concentrates until mine production can support continuous operation of the flotation plant for lead-silver, zinc, and pyrite-gold concentrates from newly mined material [2]. - The decision to restart mining operations is the result of extensive evaluations of mining methods and processing alternatives aimed at achieving sustainable and profitable operations [2]. Group 3: Company Overview - Golden Minerals is based in Golden, Colorado, and focuses on ramping up production at Velardeña while also advancing its Yoquivo property in Mexico and El Quevar silver property in Argentina through partner-funded exploration [3]. - The company is actively seeking to acquire and advance selected mining properties in Mexico, Nevada, and Argentina [3].

Revenue and Sales Performance - The principal source of revenue for the company during the nine months ended September 30, 2023, was from the sale of 31,126 ounces of gold and 126,151 ounces of silver from the Rodeo Property[136]. - Doré sales revenue for Q3 2023 was $2.1 million, down from $5.3 million in Q3 2022, attributed to 2,046 fewer gold equivalent ounces sold[168]. - Total revenue from doré sales for the nine months ended September 30, 2023, was $9.7 million, compared to $18.7 million for the same period in 2022[180]. Production and Operations - Mining operations at the Rodeo Property ceased in Q2 2023, with only 30,841 tonnes processed in Q3 2023, resulting in a negative operating margin of $1.0 million on sales of $2.3 million for that quarter[146]. - The Velardeña Properties are expected to restart production in Q4 2023, with cash receipts of approximately $1.5 million generated from concentrate sales during the nine months ended September 30, 2023[158]. - The company processed an average of 335 tonnes per day in Q3 2023, with a plant recovery rate of 71.6% for gold and 85.6% for silver[141]. - The Rodeo mine produced a total of 4,746 ounces of payable gold and 23,044 ounces of payable silver during the nine months ended September 30, 2023[141]. Costs and Expenses - The average cash cost per payable gold ounce, net of silver by-product credits, was $1,275 during the period from January 2021 to September 30, 2023[139]. - Total cash operating costs for the nine months ended September 30, 2023, were $10.154 million, with total cash costs, net of by-product credits, amounting to $9.865 million[145]. - Cost of metals sold for the nine months ended September 30, 2023, was $11.2 million, down from $13.3 million in 2022, primarily due to lower mining costs[182]. - Exploration expenses for the nine months ended September 30, 2023, totaled $2.9 million, significantly lower than $7.0 million in the same period of 2022[183]. - Administrative expenses for the nine months ended September 30, 2023, were $3.7 million, slightly up from $3.5 million in 2022[185]. - The company incurred approximately $0.3 million in stock-based compensation for the nine months ended September 30, 2023, down from $0.5 million in the same period of 2022, indicating a 40% decrease[188]. - Other operating income for the nine months ended September 30, 2023, was $0.6 million, compared to $1.3 million in 2022, representing a 53.8% decline[189]. Financial Position and Liquidity - Cash and cash equivalents as of September 30, 2023, were approximately $1.6 million, a decrease from $4.0 million at December 31, 2022, reflecting a 60% reduction[200]. - Current liabilities as of September 30, 2023, were approximately $5.6 million, indicating a tight liquidity position against current assets of $5.9 million[192]. - The company faces significant uncertainties regarding its ability to continue as a going concern, dependent on securing sufficient funding and generating positive cash flows[199]. Future Plans and Investments - The Velardeña mine's restart is contingent upon obtaining sufficient capital, with internal cash flow models indicating a positive net operating margin within six months of restarting operations[158]. - Projected capital spending for restarting production at Velardeña is estimated to be between $3.0 million and $3.5 million over the first five months[193]. - The company anticipates positive cash flow from Velardeña by the end of Q2 2024, contingent on successful production restart[196]. - A non-binding letter of intent for the sale of the Santa Maria property includes initial cash proceeds of $1.5 million and a 1.5% net smelter return royalty, which could provide additional funding[197]. - The company anticipates closing a transaction to sell the Santa Maria concessions in Q4 2023[166]. Exploration and Resource Development - The company holds an additional portfolio of approximately 12 properties in Mexico, Nevada, and Argentina for potential sale or advancement[137]. - Yoquivo holds an inferred mineral resource estimate of 937,000 tonnes at 570 g/t Ag eq, with further drilling planned to expand the resource[160]. - Barrick has met the minimum $1.0 million work expenditure requirement for the El Quevar project, and additional exploration is expected to continue[161]. - The company has spent approximately $3.0 million on the Sarita Este concession, exceeding the drilling requirement and moving towards a joint venture[162]. - The updated independent technical report for the Velardeña resource validates internal economic models, with conservative cash flow projections being utilized[159].

Revenue and Sales - The principal source of revenue for the company during the six months ended June 30, 2023, was from the sale of 30,289 ounces of gold and 122,384 ounces of silver from the Rodeo Property[133]. - Revenue from doré sales for the three months ended June 30, 2023, was $3.5 million, down from $5.9 million for the same period in 2022, due to 1,398 fewer gold equivalent ounces sold[169]. - For the six months ended June 30, 2023, doré sales revenue was $7.8 million, down from $13.4 million for the same period in 2022, attributed to 3,191 fewer gold equivalent ounces sold[180]. - The company recorded $1.2 million in concentrate sales for the three months ended June 30, 2023, with no concentrate sales in the same period of 2022[172]. - The company sold 656 tonnes of gold-rich pyrite concentrate, 118 tonnes of silver-rich lead concentrate, and 63 tonnes of zinc concentrate, generating cash receipts of approximately $1.3 million for the six months ended June 30, 2023[157]. Production and Operations - Mining operations at the Rodeo Property ceased in Q2 2023, with the only near-term cash flow opportunity coming from the Velardeña mine, which requires additional capital to restart production[135]. - The company plans to restart production at Velardeña during the third quarter of 2023, contingent on raising sufficient capital[158]. - The company processed 50,787 tonnes in Q2 2023, with an average gold grade of 1.6 grams per tonne and a silver grade of 5.8 grams per tonne[139]. - For the full year 2023, the company estimates processing between 105,000 and 120,000 tonnes in the oxide plant, with payable extraction of approximately 4,200 to 4,400 ounces of gold and 20,000 to 23,000 ounces of silver[144]. Costs and Expenses - The average cash cost per payable gold ounce, net of silver by-product credits, was $1,228 during the period from January 2021 to June 30, 2023[136]. - Total cash operating costs for Q2 2023 were $3.564 million, with total cash costs, net of by-product credits, at $3.459 million[141]. - Exploration expenses decreased to $2.1 million for the three months ended June 30, 2023, compared to $4.7 million for the same period in 2022[173]. - Exploration expenses for the six months ended June 30, 2023, were $2.2 million, a decrease of 53.2% from $4.7 million in the same period of 2022[182]. - Administrative expenses remained constant at $2.5 million for both the six months ended June 30, 2023, and 2022, with employee compensation and directors' fees accounting for $0.9 million each[184][185]. Financial Position - Cash and cash equivalents as of June 30, 2023, totaled $3.4 million, down from $4.0 million at December 31, 2022, reflecting a decrease of 15%[199]. - The company forecasts total expenditures of approximately $7.6 million for the twelve months ending June 30, 2024, including $1.4 million for exploration expenses and $5.1 million for administrative expenses[191]. - Additional financing of approximately $2 to $3 million is required to restart production at the Velardeña mine, with an additional $1 to $3 million needed for general and administrative expenses for the twelve months ending June 30, 2024[192]. - Total cash expenditures for the six months ended June 30, 2023, were $5.6 million, offset by cash inflows of $5.0 million, resulting in a net cash outflow[199][201]. Legal and Regulatory Issues - A lawsuit in Mexico against a subsidiary could potentially impact the company's ability to restart production at the Velardeña mine, with claims seeking recovery of up to $12.5 million[215]. - The lawsuit has resulted in a preliminary court order freezing approximately $153,000 in bank accounts, but does not affect operations at the Rodeo mine[215]. - The preliminary hearing for the lawsuit was postponed to allow for settlement discussions, with no definitive terms agreed upon to date[215]. Exploration and Future Plans - The company is focused on evaluating mining opportunities in North America and advancing exploration properties in Mexico and Argentina[134]. - The Velardeña Properties have been under evaluation for potential profitable operations since mining activities were suspended in late 2015 due to unprofitability[151]. - In early 2023, the company improved terms for the sale of gold-rich pyrite concentrates, allowing for the potential reopening of the Velardeña Properties' mines without the BIOX™ plant[156]. - The initial mineral resource estimate for Yoquivo indicates an inferred resource of 937,000 tonnes at 570 g/t Ag eq, with further drilling planned to expand the resource[159]. - The company has entered into a non-binding agreement to sell the Santa Maria concessions, anticipating a potential closing in the third quarter of 2023[167]. Risk Management - The company is engaged in the exploration and mining of gold, silver, zinc, lead, and other minerals, with potential negative impacts on reserves and mining capabilities due to decreases in commodity prices[210]. - The company maintains minimum cash balances in foreign currencies to mitigate foreign currency exchange risk, primarily related to expenditures in Mexico[209]. - The company invests substantially all excess cash in U.S. government and investment-grade debt securities, with a nominal reduction in interest income expected from a 1% decrease in interest rates based on average cash balances during the first half of 2023[208]. Internal Controls - As of June 30, 2023, the company's disclosure controls and procedures were evaluated as effective by the CEO and CFO, ensuring timely and accurate reporting[212]. - There have been no changes in internal control over financial reporting that materially affected the company's financial reporting during the reporting period[213].