Golden Minerals(US:AUMN)2023-08-08 16:00Revenue and Sales - The principal source of revenue for the company during the six months ended June 30, 2023, was from the sale of 30,289 ounces of gold and 122,384 ounces of silver from the Rodeo Property[133]. - Revenue from doré sales for the three months ended June 30, 2023, was $3.5 million, down from $5.9 million for the same period in 2022, due to 1,398 fewer gold equivalent ounces sold[169]. - For the six months ended June 30, 2023, doré sales revenue was $7.8 million, down from $13.4 million for the same period in 2022, attributed to 3,191 fewer gold equivalent ounces sold[180]. - The company recorded $1.2 million in concentrate sales for the three months ended June 30, 2023, with no concentrate sales in the same period of 2022[172]. - The company sold 656 tonnes of gold-rich pyrite concentrate, 118 tonnes of silver-rich lead concentrate, and 63 tonnes of zinc concentrate, generating cash receipts of approximately $1.3 million for the six months ended June 30, 2023[157]. Production and Operations - Mining operations at the Rodeo Property ceased in Q2 2023, with the only near-term cash flow opportunity coming from the Velardeña mine, which requires additional capital to restart production[135]. - The company plans to restart production at Velardeña during the third quarter of 2023, contingent on raising sufficient capital[158]. - The company processed 50,787 tonnes in Q2 2023, with an average gold grade of 1.6 grams per tonne and a silver grade of 5.8 grams per tonne[139]. - For the full year 2023, the company estimates processing between 105,000 and 120,000 tonnes in the oxide plant, with payable extraction of approximately 4,200 to 4,400 ounces of gold and 20,000 to 23,000 ounces of silver[144]. Costs and Expenses - The average cash cost per payable gold ounce, net of silver by-product credits, was $1,228 during the period from January 2021 to June 30, 2023[136]. - Total cash operating costs for Q2 2023 were $3.564 million, with total cash costs, net of by-product credits, at $3.459 million[141]. - Exploration expenses decreased to $2.1 million for the three months ended June 30, 2023, compared to $4.7 million for the same period in 2022[173]. - Exploration expenses for the six months ended June 30, 2023, were $2.2 million, a decrease of 53.2% from $4.7 million in the same period of 2022[182]. - Administrative expenses remained constant at $2.5 million for both the six months ended June 30, 2023, and 2022, with employee compensation and directors' fees accounting for $0.9 million each[184][185]. Financial Position - Cash and cash equivalents as of June 30, 2023, totaled $3.4 million, down from $4.0 million at December 31, 2022, reflecting a decrease of 15%[199]. - The company forecasts total expenditures of approximately $7.6 million for the twelve months ending June 30, 2024, including $1.4 million for exploration expenses and $5.1 million for administrative expenses[191]. - Additional financing of approximately $2 to $3 million is required to restart production at the Velardeña mine, with an additional $1 to $3 million needed for general and administrative expenses for the twelve months ending June 30, 2024[192]. - Total cash expenditures for the six months ended June 30, 2023, were $5.6 million, offset by cash inflows of $5.0 million, resulting in a net cash outflow[199][201]. Legal and Regulatory Issues - A lawsuit in Mexico against a subsidiary could potentially impact the company's ability to restart production at the Velardeña mine, with claims seeking recovery of up to $12.5 million[215]. - The lawsuit has resulted in a preliminary court order freezing approximately $153,000 in bank accounts, but does not affect operations at the Rodeo mine[215]. - The preliminary hearing for the lawsuit was postponed to allow for settlement discussions, with no definitive terms agreed upon to date[215]. Exploration and Future Plans - The company is focused on evaluating mining opportunities in North America and advancing exploration properties in Mexico and Argentina[134]. - The Velardeña Properties have been under evaluation for potential profitable operations since mining activities were suspended in late 2015 due to unprofitability[151]. - In early 2023, the company improved terms for the sale of gold-rich pyrite concentrates, allowing for the potential reopening of the Velardeña Properties' mines without the BIOX™ plant[156]. - The initial mineral resource estimate for Yoquivo indicates an inferred resource of 937,000 tonnes at 570 g/t Ag eq, with further drilling planned to expand the resource[159]. - The company has entered into a non-binding agreement to sell the Santa Maria concessions, anticipating a potential closing in the third quarter of 2023[167]. Risk Management - The company is engaged in the exploration and mining of gold, silver, zinc, lead, and other minerals, with potential negative impacts on reserves and mining capabilities due to decreases in commodity prices[210]. - The company maintains minimum cash balances in foreign currencies to mitigate foreign currency exchange risk, primarily related to expenditures in Mexico[209]. - The company invests substantially all excess cash in U.S. government and investment-grade debt securities, with a nominal reduction in interest income expected from a 1% decrease in interest rates based on average cash balances during the first half of 2023[208]. Internal Controls - As of June 30, 2023, the company's disclosure controls and procedures were evaluated as effective by the CEO and CFO, ensuring timely and accurate reporting[212]. - There have been no changes in internal control over financial reporting that materially affected the company's financial reporting during the reporting period[213].