Golden Minerals(US:AUMN)2022-11-09 16:00Financial 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]