Golden Minerals(AUMN) - 2022 Q4 - Annual Report

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]