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]