Golden Minerals(US:AUMN)2021-08-04 16:00Mining Operations - The company reported total tonnes mined of 336,859 for the six months ended June 30, 2021, with an average of 318 tonnes processed per day [148]. - Payable gold produced in doré was 4,841 ounces for the six months ended June 30, 2021, while payable silver produced was 23,612 ounces [148]. - The plant recovery rates for gold and silver were 80.0% and 84.8%, respectively, for the six months ended June 30, 2021 [148]. - The company anticipates total tonnes processed for the full year 2021 to be approximately 135,000 to 140,000, an increase from the previous forecast of 125,000 to 135,000 [154]. - Rodeo Exploration program includes approximately 2,000 meters of drilling, with potential to extend mine life beyond 2.25 years [165]. - Velardeña Properties have resumed limited scale mining activities to optimize bio-oxidation plant design and flotation separation studies [167]. - Yoquivo property drilling identified four vein systems with grades up to 4,050 g/t silver and 27.7 g/t gold, with a second phase drill program planned [171]. - The current life of the Rodeo mine is estimated to run through the first quarter of 2023, assuming no additional resources are discovered [144]. Financial Performance - Revenue from doré sales for Q2 2021 was $5.9 million, compared to $0 for Q2 2020 [176]. - Six-month revenue from doré sales for 2021 was $7.6 million, with no revenue recorded for the same period in 2020 [188]. - Total revenue for the three months ended June 30, 2021, was $5.861 million, a decrease from $7.639 million in the same period of 2020, representing a decline of approximately 23.3% [13]. - The net loss for the six months ended June 30, 2021, was $810 thousand, compared to a net loss of $3.988 million for the same period in 2020, indicating an improvement of approximately 79.7% [13]. - The company reported a total cost and expenses of $6.691 million for the three months ended June 30, 2021, compared to $11.312 million for the same period in 2020, a decrease of approximately 40.5% [13]. - The company reported a loss from operations before income taxes of $743 thousand for the three months ended June 30, 2021, compared to a loss of $3.973 million for the same period in 2020, indicating an improvement of approximately 81.3% [13]. - The company recognized approximately $2.4 million in revenue and $1.0 million in related costs from the lease of the Velardeña Properties oxide plant during the six months ended June 30, 2020 [119]. Costs and Expenses - Total cash operating costs for the six months ended June 30, 2021, were $6.209 million, with total cash costs net of by-product credits at $5.763 million [153]. - Costs of metals sold for Q2 2021 were $3.3 million, with no costs recorded in Q2 2020 [177]. - Total exploration expenses for Q2 2021 were $1.1 million, up from $0.8 million in Q2 2020, primarily due to increased activity at Rodeo [180]. - Administrative expenses for Q2 2021 totaled $1.0 million, compared to $0.8 million in Q2 2020 [182]. - Total administrative expenses for the first half of 2021 were $2.5 million, up from $1.9 million in the first half of 2020 [191]. - Stock-based compensation for Q2 2021 was approximately $1.0 million, compared to $0.6 million in Q2 2020 [183]. - The company incurred exploration expenditures of $1.9 million and capital expenditures of $1.2 million during the six months ended June 30, 2021 [197]. Cash and Liquidity - As of June 30, 2021, the company's cash and cash equivalents totaled $6.9 million, down from $9.7 million at December 31, 2020 [197]. - Cash and cash equivalents at the end of the period were $6.866 million, an increase from $3.557 million at the end of June 30, 2020, reflecting a growth of approximately 93.5% [16]. - The company expects to receive approximately $11.0 million to $13.0 million in net operating margin from the Rodeo Property for the twelve months ending June 30, 2022, based on projected average gold and silver prices of $1,800 and $25.00 per ounce, respectively [201]. - The company anticipates cash resources of approximately $18.0 million to $20.0 million, which exceeds the forecasted expenditures [202]. Assets and Liabilities - Total liabilities increased to $6.990 million as of June 30, 2021, compared to $6.334 million at the end of 2020, marking an increase of approximately 10.4% [11]. - Shareholders' equity rose to $12.115 million as of June 30, 2021, up from $11.972 million at the end of 2020, representing an increase of approximately 1.2% [11]. - The Company has recorded inventories of $2.003 million at the Rodeo operation as of June 30, 2021, including $873,000 in doré inventory and $512,000 in in-process inventory [41]. - The Company holds property, plant, and equipment valued at $35.261 million as of June 30, 2021, with accumulated depreciation of $28.753 million [47]. - Accounts payable and other accrued liabilities increased to $2.669 million as of June 30, 2021, up from $1.318 million at December 31, 2020 [63]. Legal and Regulatory Matters - The company is facing a lawsuit in Mexico related to its subsidiary Minera William, with claims amounting to as much as US$12.5 million [125]. - A preliminary court order has frozen Minera William's bank accounts, limiting access to approximately US$153,000 [126]. - The restrictions on Minera William's bank accounts do not affect the company's operations at the Rodeo mine or its evaluation plans for the Velardeña mine restart [128]. - The company believes there is no basis for the lawsuit and has not accrued any amount related to this matter in its financial statements as of June 30, 2021 [128]. Stock and Equity - The weighted average common stock outstanding for the six months ended June 30, 2021, was 162,365,584 shares, compared to 161,382,645 shares for the same period in 2020, showing a slight increase [13]. - The Company had 14,303,846 common stock warrants outstanding as of June 30, 2021, with an average exercise price of $0.39 [110]. - The company had approximately $2.2 million remaining available for issuance under the ATM Program as of June 30, 2021 [99]. - The company did not sell any shares of common stock to LPC under the Commitment Purchase Agreement during the six months ended June 30, 2021 [93]. - The company granted 335,000 shares of restricted stock during the six months ended June 30, 2021, with a total stock compensation expense of approximately $113,000 recognized for the period [100]. - The Company granted 1,605,000 KELTIP Units during the six months ended June 30, 2021, recognizing approximately $1.0 million in stock compensation expense, compared to 1,400,000 KELTIP Units and $0.5 million in stock compensation expense during the same period in 2020 [108].