Golden Minerals(AUMN) - 2023 Q1 - Quarterly Report

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]