Golden Minerals(US:AUMN)2021-08-10 18:55Financial Data and Key Metrics Changes - The company reported a narrow net loss of approximately $800,000 for Q2 2021, despite improved operating margins from the Rodeo operation, which increased to about $2.5 million [12][13] - Cash operating costs net of silver byproduct credits declined to just over $900 per payable ounce of gold produced, with expectations to maintain or slightly improve this cost level for the remainder of the year [11][12] - The company ended the quarter with approximately $7 million in cash and projected cash balances to grow to around $9.5 million to $11.5 million over the next 12 months [13][14] Business Line Data and Key Metrics Changes - The Rodeo goldmine has been operating well, with throughput exceeding expectations by nearly 100 tonnes per day since the commissioning of the new ball mill [6][11] - The company expects to produce between 12,000 and 14,000 ounces of gold this year from Rodeo, with plans for an average throughput of at least 500 tonnes per day [6][10] - Velardeña is progressing towards a potential restart by the end of 2021, with positive results from bulk sampling and precision mining tests [7][10] Market Data and Key Metrics Changes - Exploration at Rodeo has returned positive results, leading to the addition of a second drill rig to accelerate the drill program [8] - The company is also exploring the Sarita Este property in Argentina, adjacent to a significant copper deposit, with initial results expected soon [9] Company Strategy and Development Direction - The company plans for production growth and sustainable profitability, with Velardeña expected to produce about one million ounces of silver in 2022 [10] - The completion of the bio-oxidation facility is projected to add another one million silver equivalent ounces produced per year from gold in pyrite [10] - The company is focused on internal resource updates rather than a formal PEA update, with expectations for resource expansion based on ongoing drilling results [18][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive net income in the second half of 2021, driven by improved operating margins and cash flow from Rodeo [12][13] - The company anticipates a positive decision on the restart of Velardeña in Q4 2021, with a ramp-up to full production expected to take about three to six months [22][23] - Management noted that recovery rates at Rodeo were slightly lower than PEA estimates but expressed confidence in improving these rates moving forward [42] Other Important Information - The company is experiencing delays in VAT refund claims in Mexico due to COVID-19, but expects to collect all existing VAT receivables within a year [14] - The company has not yet made a go-ahead decision on Velardeña, with development capital expenditures still pending [44][45] Q&A Session Summary Question: When will broader updates on the Rodeo exploration program be available? - Management expects to have additional results in the next few weeks and anticipates an internal resource update by Q4 [18][20] Question: What is the ramp-up timeline for Velardeña after a positive restart decision? - A ramp-up to full production is expected to take about three to six months, with full production capacity around 300 tons per day [22][23] Question: What are the capital expenditures incurred during the quarter? - The company incurred approximately $700,000 in capital expenditures related to the reground mill circuit, with no significant additional costs anticipated [26][28] Question: What is Barrick looking for at the El Quevar project? - Barrick is conducting surface exploration and preparing for a drill program, targeting a world-class gold deposit of about five million ounces [35] Question: What is the expected development CapEx for Velardeña? - The estimated development CapEx for Velardeña is around $10 million, with costs spread over 2022 [45][46] Question: What is the analyst price target range for the company's stock? - Analysts have set price targets between $0.91 and $1.10 per share, indicating a valuation higher than the current market price [57]