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].

Financial Performance - Total revenue for the quarter ended March 31, 2023, was $4.217 million, a decrease of 43.5% compared to $7.506 million for the same period in 2022[17] - Net loss for the quarter was $3.266 million, compared to a net loss of $0.316 million in the same quarter of the previous year[17] - The company reported a loss from operations of $3.235 million for the quarter, compared to a loss of $0.303 million in the same quarter of 2022[17] - Revenue from doré sales for Q1 2023 was $4.2 million, down from $7.5 million in Q1 2022, due to 1,659 fewer gold equivalent ounces sold[159] - The realized price for gold in Q1 2023 was $1,891 per ounce, slightly higher than $1,888 per ounce in Q1 2022[159] - For the three months ended March 31, 2023, the company reported total cash operating costs of $4.1 million and a total operating margin of $0.2 million on sales of $4.2 million[133] Cash and Liquidity - Cash and cash equivalents at the end of the period were $2.001 million, down from $11.730 million at the end of March 31, 2022[20] - As of March 31, 2023, the company had cash resources of approximately $2.0 million, down from $4.0 million at December 31, 2022[173] - The company needs to raise additional cash in the near term to cover forecasted expenditures, potentially through asset sales or equity financing[35] - The company faces significant uncertainties regarding its ability to continue as a going concern due to insufficient resources to meet expected cash needs[171] - The company faces liquidity challenges and may require additional funding if VAT receivables are not collected in a timely manner[192] Expenditures and Forecasts - Forecasted expenditures for the twelve months ending March 31, 2024, total approximately $7.6 million, including $2.1 million for exploration expenses[31] - The forecasted net operating margin from the Rodeo Property is expected to be between $0.0 million and $0.5 million, while from the Velardeña Properties it is expected to be between $5.0 million and $5.5 million[34] - The anticipated net operating margin from the Velardeña Properties is not based on a full feasibility study, increasing uncertainty regarding estimates[170] - The company incurred total expenditures of $3.0 million for the three months ended March 31, 2023, including $1.3 million in exploration expenditures[173] Mining Operations and Properties - The company is concluding mining operations at the Rodeo Property and is engaged in further studies for a potential restart plan for Velardeña[29] - The company holds a 100% interest in multiple mining properties, including the Rodeo Property and Velardeña Properties, and is focused on advancing its exploration properties[28] - Mining operations at the Rodeo Property are expected to conclude in the second quarter of 2023, with ongoing evaluations for a potential restart plan for the Velardeña mine[125] - The Velardeña Properties are expected to restart production in Q3 2023 without the need for the BIOX facility, following improved concentrate sales terms[146] Legal and Regulatory Issues - A lawsuit in Mexico could potentially impact the company's operations, with Unifin seeking recovery of up to $12.5 million, although the company believes there is no basis for this claim[190] - Recent amendments to the Mexican mining law may complicate operations, reducing the maximum length of new mining concessions from 50 to 30 years and introducing a new mining profit tax[193] - The full impact of the mining law reform is uncertain and may be subject to legal challenges in Mexico[193] - The preliminary court hearing related to the lawsuit against Minera William has been rescheduled to June 2023[190] Tax and Receivables - The company expects to collect approximately $1.5 million in VAT accounts receivable from the Mexican government, although there may be delays[35] - The company has recorded approximately $2.3 million in receivables from the Mexican government related to value added tax (VAT) paid, with an expectation to recover about $1.5 million during the twelve months ending March 31, 2024[192] - The Company recognized approximately $51,000 of income tax expense for the three months ended March 31, 2023[85] - The Company had no deferred tax assets or liabilities as of March 31, 2023, due to a valuation allowance offsetting the net deferred tax assets[86] Stock and Shares - Weighted-average shares outstanding increased to 171,322,376 for the quarter ended March 31, 2023, from 162,511,278 in the same quarter of 2022[17] - The Company sold an aggregate of 2,749,976 shares of common stock under the ATM Program at an average price of $0.27 per share, resulting in net proceeds of approximately $701,000 for the three months ended March 31, 2023[92] - The Company sold an aggregate of 4,636,368 shares of common stock under the ATM Program at an average price of $0.24 per share, generating net proceeds of approximately $1.1 million[119] - The Company had 9,803,846 common stock warrants outstanding as of March 31, 2023, with a weighted average exercise price of $0.34[101] Exploration and Resource Estimates - An inferred mineral resource estimate for Yoquivo indicates 937,000 tonnes at 570 g/t Ag eq, calculated using gold and silver prices of $1,840/oz and $24.00/oz, respectively[148] - The company plans to continue drilling at Yoquivo to expand the resource as funding allows, having completed 16,565 meters in 70 holes since 2020[149] - Barrick has met the minimum $1.0 million work expenditure requirement for the El Quevar project, and further exploration is expected to continue[150] Inventory and Assets - The total inventories at the Velardeña Properties amounted to $1.49 million as of March 31, 2023, an increase from $1.37 million at December 31, 2022[56] - The company’s property, plant, and equipment net value was $6.283 million as of March 31, 2023, down from $6.416 million at December 31, 2022[61] - The carrying value of the Santa Maria property as of March 31, 2023, is zero, following the reversion of the property to the Company[64] - The Company recorded an Asset Retirement Obligation (ARO) of approximately $4.1 million as of March 31, 2023, reflecting changes in estimates and accretion expense[75]

Financial Projections and Operations - The company anticipates expenditures and cash inflows for 2023, with specific projections regarding the Rodeo mine's production and costs[6] - The Rodeo project is expected to contribute significantly to the company's financial outlook, with specific production and cost metrics outlined[6] - The company is assessing the potential need for external financing to support its operations and growth strategies[6] - The company anticipates expenditures and cash inflows for 2023, with projections regarding the Rodeo mine including production, payable extraction, anticipated grades, estimated unit costs, and net operating margin[6] Mineral Resources and Exploration - Estimated mineral resources for the Rodeo project are included in the Rodeo Technical Report Summary, with projections for payable extraction and anticipated grades[6] - Future exploration activities are planned at properties including Yoquivo and Sarita Este, with an initial mineral resource expected to be released for Yoquivo[6] - The initial mineral resource estimate for the Yoquivo property, completed in February 2023, reports a total of 937,000 tonnes with an average grade of 2.1 g/t Au and 410 g/t Ag, equating to 64,000 ounces of gold and 12,300,000 ounces of silver[134] - The company has drilled a total of 78 core holes, totaling 19,039 meters, with an average true width of mineralization being about 50-80% of the core length[128] Project Challenges and Risks - Risks include potential inaccuracies in assumptions regarding the Rodeo project, including life of mine and mineral extraction expectations[7] - The company faces challenges related to the El Quevar project, including the need for joint venture partners and financing[7] - Economic and political instability in Argentina and Mexico may impact operations and market prices for minerals[7] - The company faces risks related to the El Quevar project, including the feasibility and economic viability of the project and the ability to secure financing[7] - The company is subject to potential delays in exploration activities due to environmental consents or permitting issues[7] Mining Operations and Properties - The Rodeo Property has produced a total of 26,380 oz of gold and 103,107 oz of silver through 2022, with production expected to continue until the second quarter of 2023[27] - The Rodeo Property consists of 2 concessions covering 1,866 hectares, with permitting complete and currently extracting minerals[37] - The Velardeña Properties include a 300 tonne per day flotation mill for sulfide material and a 550 tonne per day cyanide leach mill for oxide material, currently evaluating potential restart of mineral extraction[37] - The company holds a 100% interest in the Rodeo gold mine, Velardeña and Chicago gold-silver mining properties, and the El Quevar advanced exploration silver property[26] Management and Team - The management team comprises experienced mining professionals with extensive expertise in mineral exploration, mine construction, and operations[29] - The management team has approximately 60 years of combined experience in mining, with executives having held senior positions at major companies like Barrick Gold and INCO Limited[163] - The company is committed to retaining key management and mining personnel essential for business success[7] Market Conditions and Competition - The company faces aggressive competition in the mining industry, with competitors having greater financial and technical resources, impacting the ability to acquire and advance mineral properties[177] - The silver market is experiencing growth in industrial applications, particularly in electronics and solar panel industries, which may influence future demand[168] - The company is focused on advancing new and existing silver and gold properties to maintain a competitive position in the market[177] Environmental and Regulatory Considerations - The company holds environmental licenses and impact assessments necessary for operating its mines and processing plants at the Velardeña Properties[102] - Mining concession holders are required to pay an annual special duty of 7.5% on mining-related profits and a 0.5% royalty on revenues from the sale of silver, gold, and platinum[112] Financial Obligations and Royalties - The company is required to make annual royalty payments of $40,000 to La Cuesta for the Rodeo concession and a 2% net smelter return royalty on material produced from Rodeo 2[54][55] - The company expects to pay approximately $40,000 in canon payment fees for the El Quevar concessions in 2023, up from $12,000 in 2022[144] Technological Developments - The updated Preliminary Economic Assessment (PEA) for the Velardeña project includes the incorporation of bio-oxidation treatment, which achieved gold recoveries of 92% from pyrite-arsenopyrite concentrates, significantly higher than the sub-30% recoveries from 2015[94] - The company is evaluating modified mine plans and mining techniques, including new test work on automated ore sorting, expected to be completed by mid-2023[87] Production and Processing - The Velardeña oxide plant, which processes mined material from the Rodeo Property, has a throughput capacity of up to 550 tonnes per day, with an average throughput of 521 tonnes per day in Q3 2022 and 573 tonnes per day in Q4 2022[50] - The oxide processing plant at Velardeña has an operating capacity of up to 550 tons per day (tpd) and is currently processing material from the Rodeo Mine[100]

Financial Data and Key Metrics Changes - In Q3 2022, the company reported revenue of $5.3 million, cost of sales of $4.4 million, and a net operating margin of just under $1 million, significantly impacted by lower metals prices [4][17] - The net operating margin from the Rodeo mine was approximately $0.9 million, with negative after-tax income of about $2.7 million [17] - Cash costs per payable gold ounce net of silver credits were lower at $1,391 compared to $1,426 in Q2 2022 [12] Business Line Data and Key Metrics Changes - The Rodeo mine produced just under 3,000 payable ounces of gold and 11,900 payable ounces of silver in Q3 2022, slightly lower than the previous quarter [11] - Year-to-date production at the Rodeo mine was just under 9,600 payable gold ounces at cash costs averaging $1,316 per payable gold ounce net of silver credits [11] - Full year 2022 production guidance for gold is maintained at 12,000 to 14,000 ounces, with silver production projected between 47,000 and 50,000 ounces [6] Market Data and Key Metrics Changes - Average realized prices for gold and silver are estimated at $1,800 and $25 per ounce, respectively, for the full year 2022 [13] - The company expects a net operating margin between $6 million and $8 million for the full year 2022 [18] Company Strategy and Development Direction - The company is focusing on optimizing mining techniques and addressing dilution issues at the Velardeña properties before making a production restart decision [15] - Exploration efforts are ongoing at the Yoquivo Gold-Silver project and Sarita Este project, with plans to publish a maiden resource estimate for Yoquivo in Q1 2023 [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that lower metals prices have significantly impacted margins and highlighted the need to control mining dilution for future production decisions [4][25] - The company is optimistic about the ore sorting technology being evaluated, which could enhance head grades and reduce costs [29] Other Important Information - The tailings expansion project at the oxide plant has begun earlier than planned, with an estimated cost of around $2.2 million [14] - The company ended the quarter with approximately $6.5 million in cash, with a negative net cash flow of $3.0 million primarily due to cash used in operating activities [19] Q&A Session Summary Question: Inquiry about cost reductions in the current inflationary environment - Management noted that cost reductions were achieved through efficient operations and prior blasting activities, despite increases in commodity prices [22][23] Question: Impact of metal price volatility on Velardeña test work - Management confirmed that while volatility has slowed some progress, testing is still ongoing [25] Question: Details on the ore sorting technology being tested - The company is working with Metso Outotec on ore sorting technology, which aims to reduce dilution and improve head grades [29] Question: Timeline for production decision at Velardeña - A production decision is expected by mid-2023, contingent on the results of ore sorting tests [37] Question: Capital expenditure estimates for the BIOX plant - Initial estimates for the BIOX plant are around $10 million, with expectations of upward pressure on costs due to inflation [41] Question: Updates on exploration projects and resource estimates - The company anticipates moving to a Preliminary Economic Assessment (PEA) following the maiden resource estimate for Yoquivo [42][45]

Financial Performance - Total revenue for the three months ended September 30, 2022, was $5,268,000, a decrease of 38.8% compared to $8,479,000 for the same period in 2021[14] - Net loss for the nine months ended September 30, 2022, was $5,826,000, compared to a net loss of $3,577,000 for the same period in 2021, reflecting a 62.8% increase in losses[14] - The company reported a net cash used in operating activities of $6,401,000 for the nine months ended September 30, 2022, compared to $2,093,000 for the same period in 2021, indicating a significant increase in cash outflow[17] - The company experienced a net loss of $2.697 million for the quarter ended September 30, 2022[33] - The Company recognized a net loss of $5.826 million for the nine months ended September 30, 2022, compared to a net loss of $3.577 million for the same period in 2021[104] Cash and Assets - Cash and cash equivalents decreased to $6,504,000 at the end of September 2022, down from $12,229,000 at the end of December 2021, representing a decline of 46.8%[11] - Total current assets decreased to $11,277,000 as of September 30, 2022, from $16,339,000 at December 31, 2021, a reduction of 30.7%[11] - The company reported cash and cash equivalents of $6.5 million, with approximately $153,000 restricted due to a court order[32] - The company’s total property, plant, and equipment, net, decreased to $6.404 million as of September 30, 2022, from $6.627 million at December 31, 2021[46] - The company holds approximately 1,500,000 shares of Golden Gryphon Explorations Inc. (GGE) at a purchase price of $225,000[37] Liabilities and Equity - Total liabilities decreased to $8,919,000 as of September 30, 2022, down from $9,621,000 at December 31, 2021, a decline of 7.3%[11] - The company’s accumulated deficit increased to $533,880,000 as of September 30, 2022, from $528,054,000 at December 31, 2021[11] - The total equity as of September 30, 2022, was $9.630 million, reflecting a decrease from previous periods[33] Revenue and Costs - For the nine months ended September 30, 2022, total revenue reached $18.700 million, with total costs of $13.335 million, yielding a gross profit of $5.365 million[113] - Revenue from doré sales for the nine months ended September 30, 2022, was $18.7 million, up from $16.1 million in the same period of 2021[158] - The cost of metals sold for the three months ended September 30, 2022, was $4,374,000, compared to $4,292,000 for the same period in 2021, reflecting an increase of 1.9%[14] - Total cash costs, net of by-product credits, for the nine months ended September 30, 2022, were $12.6 million, compared to $9.2 million for the same period in 2021[139] Exploration and Operations - The company holds a 100% interest in the Rodeo property and is focused on mining operations there, having begun activities in December 2020[24] - The company is also advancing the El Quevar exploration property in Argentina through an earn-in agreement with Barrick Gold Corporation[25] - The Rodeo Property produced 24,014 ounces of gold and 90,408 ounces of silver from January 2021 to September 30, 2022, with average cash costs per payable gold ounce at $1,089[121] - The company is focused on advancing its El Quevar exploration property in Argentina and evaluating mining opportunities in North America, particularly near the Velardeña Properties[119] Stock and Compensation - The Company granted 1,700,000 Restricted Stock Units (RSUs) during the nine months ended September 30, 2022, with an average grant date fair value of $0.40 per share[87] - For the nine months ended September 30, 2022, the Company recognized approximately $163,000 of stock compensation expense related to restricted stock grants[85] - The company incurred approximately $0.5 million in stock-based compensation for the nine months ended September 30, 2022, down from $1.5 million in the same period of 2021[162] Legal and Regulatory Risks - A lawsuit in Mexico could result in a claim of up to US $12.5 million against a subsidiary, but the company believes there is no basis for this claim[186] - The lawsuit has led to a preliminary court order freezing approximately US $153,000 in bank accounts, but it does not impact the company's operations at the Rodeo mine[186] - The company is facing political and economic instability in Mexico and Argentina, which may impact operations and future government actions regarding nationalization and taxation policies[180] Future Outlook - The company expects to receive approximately $5.5 million to $6.5 million in net operating margin from the Rodeo Property during the twelve months ending September 30, 2023[169] - Forecasted expenditures for the twelve months ending September 30, 2023, total approximately $9.6 million, including $4.3 million for exploration activities[171] - The anticipated cash resources of approximately $13.5 million to $15.5 million exceed the forecasted expenditures, indicating a positive cash flow outlook[172]

Golden Minerals Company (NYSE:AUMN) Q2 2022 Earnings Conference Call August 15, 2022 11:00 AM ET Company Participants Karen Winkler - Director, Investor Relations Warren Rehn - President and Chief Executive Officer Julie Weedman - Chief Financial Officer John Galassini - Chief Operating Officer Conference Call Participants Jacob Sekelsky - Alliance Global Partners Sid Rajeev - Fundamental Research Corp Operator Greetings. Welcome to the Golden Minerals Company Second Quarter 2022 Quarterly Conference Call a ...

Company Overview - Golden Minerals is a gold and silver focused company with assets in Mexico, Argentina, and Nevada (USA)[6, 10] - The company aims to increase shareholder value through sustained profitable production, growth with two mines producing in 2023, and continued exploration success[5] Financial Performance & Valuation - Rodeo mine generated a net operating margin of $12.3 million in 2021 and $4.5 million through June 30, 2022[7] - Technical reports estimate the following Net Present Values (NPV): Velardeña - $119 million (MII Plan) or $48 million (MI Plan), El Quevar - $44.9 million, Rodeo - $23 million[10] - As of August 2, 2022, the company had $9.5 million in cash and no debt[53] Rodeo Mine - A Technical Report Summary (TRS) for Rodeo was completed in March 2022, estimating profitable operation through Q3 2023, with an NPV8% of $22.9 million[24] - Rodeo's measured and indicated high-grade resources as of December 31, 2021, were 329,600 tonnes with 3.02 g/t Au, containing 32,000 ounces of gold and 13.02 g/t Ag, containing 137,900 ounces of silver[26] - Rodeo's measured and indicated low-grade (stockpile) resources as of December 31, 2021, were 256,500 tonnes with 1.23 g/t Au, containing 10,100 ounces of gold and 9.11 g/t Ag, containing 75,100 ounces of silver[26] Velardeña Properties - Velardeña has measured and indicated resources of 1,268,800 tonnes with 319 g/t silver and 5.09 g/t gold, containing 13.03 million ounces of silver and 208,000 ounces of gold[30] - The 2022 TRS for Velardeña estimates a pre-tax NPV8% of $119 million (MII Plan) with average production of 1.9 million ounces of silver equivalent per year or $48 million (MI Plan) with average production of 1.9 million ounces of silver equivalent per year[31] El Quevar Project - El Quevar has an NI 43-101 NPV5 of $44.9 million from a 2018 PEA, projecting 4.8 million ounces of silver production per year at the Yaxtché deposit[39] - Barrick Gold has an earn-in agreement with Golden Minerals, targeting a 5 million+ ounce gold deposit[40]