Golden Minerals(US:AUMN)2019-05-01 21:38Revenue and Financial Performance - Revenue from the oxide plant lease increased to approximately $1.9 million for the three months ended March 31, 2019, compared to $1.6 million in the same period of 2018, primarily due to higher throughput [131]. - Hecla processed approximately 40,000 tonnes of material through the oxide plant, resulting in a net operating margin of approximately $1.3 million for the three months ended March 31, 2019 [120]. - The company expects a net operating margin of approximately $5.0 million for the full year 2019 from the oxide plant lease, contingent on Hecla's continued processing activities [120]. - The company recorded $0.1 million of other operating income for the three months ended March 31, 2019, compared to $1.2 million in the same period of 2018 [139]. - As of March 31, 2019, the company has a cash balance of $2.2 million and expects to receive approximately $4.8 million in net operating margin from the lease of the oxide plant over the next twelve months [146]. Exploration and Development Activities - The company initiated a 3,000 meter drilling program at the Yaxtché deposit with an estimated cost of approximately $0.6 million to further define mineralized material [118]. - Exploration expenses totaled $0.9 million for both the three months ended March 31, 2019, and March 31, 2018, primarily incurred in Mexico [133]. - The Yoquivo property was acquired in 2017, with recent surface sampling indicating potential economic interest in gold and silver [123]. - Budgeted expenditures for the twelve months ending March 31, 2020, include approximately $2.0 million for exploration activities, $1.5 million for care and maintenance at Velardeña Properties, $1.0 million for the El Quevar project, and $3.0 million for general and administrative costs [146]. Financial Position and Funding - Cash and cash equivalents decreased to $2.2 million as of March 31, 2019, down from $3.3 million at December 31, 2018 [144]. - The company plans to take actions such as selling non-strategic exploration assets or raising additional equity capital due to budgeted expenditures exceeding available resources [147]. - The actual cash received and expenditures incurred may vary significantly from budgeted amounts, influenced by factors such as care and maintenance costs and revenues from the oxide plant lease [148]. - The company's long-term operations depend on securing sufficient funding and generating profitable operations, with the recoverability of assets tied to positive cash flows [149]. - There is no assurance of future profitable operations or securing additional funding on acceptable terms, although the company believes it will have sufficient cash to meet obligations beyond one year [150]. Risks and Market Conditions - Forward-looking statements include expectations regarding the oxide plant lease, El Quevar project, and financial outlook for 2019 and early 2020, with potential risks identified [154][155]. - Risks include lower than anticipated revenues, higher maintenance costs, and challenges in raising necessary capital, which could impact the company's ability to operate and grow [156]. - The company is exposed to market risks such as interest rate fluctuations, foreign currency exchange risks, and commodity price risks, which could affect financial performance [158][159][160]. Accounting and Reporting Changes - The company adopted new accounting standards related to leases and revenue recognition, which may affect financial reporting and disclosures [151][152].