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]

Golden Minerals Co (NYSE:AUMN) Q3 2021 Earnings Conference Call November 9, 2021 11:00 AM ET Company Participants Karen Winkler - Director, IR & Assistant Corporate Secretary Robert Vogels - SVP, Corporate Secretary & CFO Warren Rehn - President, CEO & Director Conference Call Participants Jacob Sekelsky - Alliance Global Partners Heiko Ihle - H.C. Wainwright & Co. Siddharth Rajeev - Fundamental Research Corp. Operator Greetings. Welcome to the Golden Minerals Company Third Quarter 2021 Earnings Webcast. [O ...

Financial Data and Key Metrics Changes - The company reported a narrow net loss of approximately $800,000 for Q2 2021, despite improved operating margins from the Rodeo operation, which increased to about $2.5 million [12][13] - Cash operating costs net of silver byproduct credits declined to just over $900 per payable ounce of gold produced, with expectations to maintain or slightly improve this cost level for the remainder of the year [11][12] - The company ended the quarter with approximately $7 million in cash and projected cash balances to grow to around $9.5 million to $11.5 million over the next 12 months [13][14] Business Line Data and Key Metrics Changes - The Rodeo goldmine has been operating well, with throughput exceeding expectations by nearly 100 tonnes per day since the commissioning of the new ball mill [6][11] - The company expects to produce between 12,000 and 14,000 ounces of gold this year from Rodeo, with plans for an average throughput of at least 500 tonnes per day [6][10] - Velardeña is progressing towards a potential restart by the end of 2021, with positive results from bulk sampling and precision mining tests [7][10] Market Data and Key Metrics Changes - Exploration at Rodeo has returned positive results, leading to the addition of a second drill rig to accelerate the drill program [8] - The company is also exploring the Sarita Este property in Argentina, adjacent to a significant copper deposit, with initial results expected soon [9] Company Strategy and Development Direction - The company plans for production growth and sustainable profitability, with Velardeña expected to produce about one million ounces of silver in 2022 [10] - The completion of the bio-oxidation facility is projected to add another one million silver equivalent ounces produced per year from gold in pyrite [10] - The company is focused on internal resource updates rather than a formal PEA update, with expectations for resource expansion based on ongoing drilling results [18][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive net income in the second half of 2021, driven by improved operating margins and cash flow from Rodeo [12][13] - The company anticipates a positive decision on the restart of Velardeña in Q4 2021, with a ramp-up to full production expected to take about three to six months [22][23] - Management noted that recovery rates at Rodeo were slightly lower than PEA estimates but expressed confidence in improving these rates moving forward [42] Other Important Information - The company is experiencing delays in VAT refund claims in Mexico due to COVID-19, but expects to collect all existing VAT receivables within a year [14] - The company has not yet made a go-ahead decision on Velardeña, with development capital expenditures still pending [44][45] Q&A Session Summary Question: When will broader updates on the Rodeo exploration program be available? - Management expects to have additional results in the next few weeks and anticipates an internal resource update by Q4 [18][20] Question: What is the ramp-up timeline for Velardeña after a positive restart decision? - A ramp-up to full production is expected to take about three to six months, with full production capacity around 300 tons per day [22][23] Question: What are the capital expenditures incurred during the quarter? - The company incurred approximately $700,000 in capital expenditures related to the reground mill circuit, with no significant additional costs anticipated [26][28] Question: What is Barrick looking for at the El Quevar project? - Barrick is conducting surface exploration and preparing for a drill program, targeting a world-class gold deposit of about five million ounces [35] Question: What is the expected development CapEx for Velardeña? - The estimated development CapEx for Velardeña is around $10 million, with costs spread over 2022 [45][46] Question: What is the analyst price target range for the company's stock? - Analysts have set price targets between $0.91 and $1.10 per share, indicating a valuation higher than the current market price [57]

Mining Operations - The company reported total tonnes mined of 336,859 for the six months ended June 30, 2021, with an average of 318 tonnes processed per day [148]. - Payable gold produced in doré was 4,841 ounces for the six months ended June 30, 2021, while payable silver produced was 23,612 ounces [148]. - The plant recovery rates for gold and silver were 80.0% and 84.8%, respectively, for the six months ended June 30, 2021 [148]. - The company anticipates total tonnes processed for the full year 2021 to be approximately 135,000 to 140,000, an increase from the previous forecast of 125,000 to 135,000 [154]. - Rodeo Exploration program includes approximately 2,000 meters of drilling, with potential to extend mine life beyond 2.25 years [165]. - Velardeña Properties have resumed limited scale mining activities to optimize bio-oxidation plant design and flotation separation studies [167]. - Yoquivo property drilling identified four vein systems with grades up to 4,050 g/t silver and 27.7 g/t gold, with a second phase drill program planned [171]. - The current life of the Rodeo mine is estimated to run through the first quarter of 2023, assuming no additional resources are discovered [144]. Financial Performance - Revenue from doré sales for Q2 2021 was $5.9 million, compared to $0 for Q2 2020 [176]. - Six-month revenue from doré sales for 2021 was $7.6 million, with no revenue recorded for the same period in 2020 [188]. - Total revenue for the three months ended June 30, 2021, was $5.861 million, a decrease from $7.639 million in the same period of 2020, representing a decline of approximately 23.3% [13]. - The net loss for the six months ended June 30, 2021, was $810 thousand, compared to a net loss of $3.988 million for the same period in 2020, indicating an improvement of approximately 79.7% [13]. - The company reported a total cost and expenses of $6.691 million for the three months ended June 30, 2021, compared to $11.312 million for the same period in 2020, a decrease of approximately 40.5% [13]. - The company reported a loss from operations before income taxes of $743 thousand for the three months ended June 30, 2021, compared to a loss of $3.973 million for the same period in 2020, indicating an improvement of approximately 81.3% [13]. - The company recognized approximately $2.4 million in revenue and $1.0 million in related costs from the lease of the Velardeña Properties oxide plant during the six months ended June 30, 2020 [119]. Costs and Expenses - Total cash operating costs for the six months ended June 30, 2021, were $6.209 million, with total cash costs net of by-product credits at $5.763 million [153]. - Costs of metals sold for Q2 2021 were $3.3 million, with no costs recorded in Q2 2020 [177]. - Total exploration expenses for Q2 2021 were $1.1 million, up from $0.8 million in Q2 2020, primarily due to increased activity at Rodeo [180]. - Administrative expenses for Q2 2021 totaled $1.0 million, compared to $0.8 million in Q2 2020 [182]. - Total administrative expenses for the first half of 2021 were $2.5 million, up from $1.9 million in the first half of 2020 [191]. - Stock-based compensation for Q2 2021 was approximately $1.0 million, compared to $0.6 million in Q2 2020 [183]. - The company incurred exploration expenditures of $1.9 million and capital expenditures of $1.2 million during the six months ended June 30, 2021 [197]. Cash and Liquidity - As of June 30, 2021, the company's cash and cash equivalents totaled $6.9 million, down from $9.7 million at December 31, 2020 [197]. - Cash and cash equivalents at the end of the period were $6.866 million, an increase from $3.557 million at the end of June 30, 2020, reflecting a growth of approximately 93.5% [16]. - The company expects to receive approximately $11.0 million to $13.0 million in net operating margin from the Rodeo Property for the twelve months ending June 30, 2022, based on projected average gold and silver prices of $1,800 and $25.00 per ounce, respectively [201]. - The company anticipates cash resources of approximately $18.0 million to $20.0 million, which exceeds the forecasted expenditures [202]. Assets and Liabilities - Total liabilities increased to $6.990 million as of June 30, 2021, compared to $6.334 million at the end of 2020, marking an increase of approximately 10.4% [11]. - Shareholders' equity rose to $12.115 million as of June 30, 2021, up from $11.972 million at the end of 2020, representing an increase of approximately 1.2% [11]. - The Company has recorded inventories of $2.003 million at the Rodeo operation as of June 30, 2021, including $873,000 in doré inventory and $512,000 in in-process inventory [41]. - The Company holds property, plant, and equipment valued at $35.261 million as of June 30, 2021, with accumulated depreciation of $28.753 million [47]. - Accounts payable and other accrued liabilities increased to $2.669 million as of June 30, 2021, up from $1.318 million at December 31, 2020 [63]. Legal and Regulatory Matters - The company is facing a lawsuit in Mexico related to its subsidiary Minera William, with claims amounting to as much as US$12.5 million [125]. - A preliminary court order has frozen Minera William's bank accounts, limiting access to approximately US$153,000 [126]. - The restrictions on Minera William's bank accounts do not affect the company's operations at the Rodeo mine or its evaluation plans for the Velardeña mine restart [128]. - The company believes there is no basis for the lawsuit and has not accrued any amount related to this matter in its financial statements as of June 30, 2021 [128]. Stock and Equity - The weighted average common stock outstanding for the six months ended June 30, 2021, was 162,365,584 shares, compared to 161,382,645 shares for the same period in 2020, showing a slight increase [13]. - The Company had 14,303,846 common stock warrants outstanding as of June 30, 2021, with an average exercise price of $0.39 [110]. - The company had approximately $2.2 million remaining available for issuance under the ATM Program as of June 30, 2021 [99]. - The company did not sell any shares of common stock to LPC under the Commitment Purchase Agreement during the six months ended June 30, 2021 [93]. - The company granted 335,000 shares of restricted stock during the six months ended June 30, 2021, with a total stock compensation expense of approximately $113,000 recognized for the period [100]. - The Company granted 1,605,000 KELTIP Units during the six months ended June 30, 2021, recognizing approximately $1.0 million in stock compensation expense, compared to 1,400,000 KELTIP Units and $0.5 million in stock compensation expense during the same period in 2020 [108].