Golden Minerals(AUMN) - 2023 Q3 - Quarterly Report

Revenue and Sales Performance - The principal source of revenue for the company during the nine months ended September 30, 2023, was from the sale of 31,126 ounces of gold and 126,151 ounces of silver from the Rodeo Property[136]. - Doré sales revenue for Q3 2023 was $2.1 million, down from $5.3 million in Q3 2022, attributed to 2,046 fewer gold equivalent ounces sold[168]. - Total revenue from doré sales for the nine months ended September 30, 2023, was $9.7 million, compared to $18.7 million for the same period in 2022[180]. Production and Operations - Mining operations at the Rodeo Property ceased in Q2 2023, with only 30,841 tonnes processed in Q3 2023, resulting in a negative operating margin of $1.0 million on sales of $2.3 million for that quarter[146]. - The Velardeña Properties are expected to restart production in Q4 2023, with cash receipts of approximately $1.5 million generated from concentrate sales during the nine months ended September 30, 2023[158]. - The company processed an average of 335 tonnes per day in Q3 2023, with a plant recovery rate of 71.6% for gold and 85.6% for silver[141]. - The Rodeo mine produced a total of 4,746 ounces of payable gold and 23,044 ounces of payable silver during the nine months ended September 30, 2023[141]. Costs and Expenses - The average cash cost per payable gold ounce, net of silver by-product credits, was $1,275 during the period from January 2021 to September 30, 2023[139]. - Total cash operating costs for the nine months ended September 30, 2023, were $10.154 million, with total cash costs, net of by-product credits, amounting to $9.865 million[145]. - Cost of metals sold for the nine months ended September 30, 2023, was $11.2 million, down from $13.3 million in 2022, primarily due to lower mining costs[182]. - Exploration expenses for the nine months ended September 30, 2023, totaled $2.9 million, significantly lower than $7.0 million in the same period of 2022[183]. - Administrative expenses for the nine months ended September 30, 2023, were $3.7 million, slightly up from $3.5 million in 2022[185]. - The company incurred approximately $0.3 million in stock-based compensation for the nine months ended September 30, 2023, down from $0.5 million in the same period of 2022, indicating a 40% decrease[188]. - Other operating income for the nine months ended September 30, 2023, was $0.6 million, compared to $1.3 million in 2022, representing a 53.8% decline[189]. Financial Position and Liquidity - Cash and cash equivalents as of September 30, 2023, were approximately $1.6 million, a decrease from $4.0 million at December 31, 2022, reflecting a 60% reduction[200]. - Current liabilities as of September 30, 2023, were approximately $5.6 million, indicating a tight liquidity position against current assets of $5.9 million[192]. - The company faces significant uncertainties regarding its ability to continue as a going concern, dependent on securing sufficient funding and generating positive cash flows[199]. Future Plans and Investments - The Velardeña mine's restart is contingent upon obtaining sufficient capital, with internal cash flow models indicating a positive net operating margin within six months of restarting operations[158]. - Projected capital spending for restarting production at Velardeña is estimated to be between $3.0 million and $3.5 million over the first five months[193]. - The company anticipates positive cash flow from Velardeña by the end of Q2 2024, contingent on successful production restart[196]. - A non-binding letter of intent for the sale of the Santa Maria property includes initial cash proceeds of $1.5 million and a 1.5% net smelter return royalty, which could provide additional funding[197]. - The company anticipates closing a transaction to sell the Santa Maria concessions in Q4 2023[166]. Exploration and Resource Development - The company holds an additional portfolio of approximately 12 properties in Mexico, Nevada, and Argentina for potential sale or advancement[137]. - Yoquivo holds an inferred mineral resource estimate of 937,000 tonnes at 570 g/t Ag eq, with further drilling planned to expand the resource[160]. - Barrick has met the minimum $1.0 million work expenditure requirement for the El Quevar project, and additional exploration is expected to continue[161]. - The company has spent approximately $3.0 million on the Sarita Este concession, exceeding the drilling requirement and moving towards a joint venture[162]. - The updated independent technical report for the Velardeña resource validates internal economic models, with conservative cash flow projections being utilized[159].