Golden Minerals Reports First Quarter 2011
GOLDEN, CO -- (Marketwire) -- 05/04/11 -- Golden Minerals Company ('Golden Minerals' or the 'Company') (NYSE Amex: AUMN) (TSX: AUM) announces results for the first quarter 2011.
First Quarter 2011 Financial Results
For the first quarter 2011, Golden Minerals recorded a net loss of $15.9 million, which included $8.7 million of expense related to the El Quevar project, $3.7 million of exploration expense and $2.2 million of administrative expense.
At March 31, 2011, Golden Minerals' aggregate cash and short-term investments totaled $106.1 million, which included $104.3 million of cash and cash equivalents and $1.8 million in short term investments.
For the remainder of 2011, pursuant to the Company's long term business strategy, Golden Minerals expects to spend approximately $40.0 to $48.0 million at the El Quevar project to fund ongoing exploration drilling, underground drifting, and related technical engineering and project assessment to confirm the mine model and further define the extent of the resource. Golden Minerals expects to spend approximately $12.0 million to fund exploration activities and property holding costs including the drilling of two targets in Argentina, three in Peru and four in Mexico. Additional amounts may be spent during the remainder of 2011 for early and advanced stage drilling programs, depending on the success of the Company's targeted exploration program and generative exploration activities. The Company expects to spend an estimated $5.5 million through the end of 2011 on general and administrative costs, working capital and other corporate purposes.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its pipeline of exploration projects in Mexico and South America. The Company has a portfolio of more than 40 exploration projects, including the feasibility stage El Quevar project in the Salta Province of northwestern Argentina, and advanced stage drilling projects in Mexico and Peru. The Company's experienced management team has proven in-house ability to explore, develop and operate mining projects.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and applicable Canadian securities laws, including statements regarding the anticipated expenditures and planned activities during the remainder of 2011 on the El Quevar project, early and advanced stage exploration, property holding costs, and general and administrative costs. These statements are subject to risks and uncertainties, including results of exploration including additional exploration at El Quevar and generative exploration, changes in geological interpretations, geostatistical and other interpretations of the El Quevar deposit including the interpretation of mineralized structures encountered in the development drift and changes at El Quevar and other projects resulting from additional drilling or other exploration work; whether exploration results will be indicative of future exploration results; availability of drills; unexpected variations in ore grade, types and metallurgy; uncertainties regarding whether the El Quevar resource and mine models will be conformed and what variations from the current model may be developed; technical or other difficulties that could be encountered in advancement of the development drift; unexpected increases in costs of materials and supplies used in exploration activities; fluctuations in silver and other metal prices; technical and permitting issues; title problems; and financial market conditions. Golden Minerals Company assumes no obligation to update this information. Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Annual Report on Form 10-K for the year ended December 31, 2010.
For additional information please visit http://www.goldenminerals.com/ or contact:
GOLDEN MINERALS COMPANY
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
(Unaudited)
March 31, December 31,
2011 2010
---------------- ----------------
(in thousands, except share data)
Assets
Current assets
Cash and cash equivalents $ 104,328 $ 120,990
Investments 1,764 601
Prepaid expenses and other assets 2,161 1,695
---------------- ----------------
Total current assets 108,253 123,286
Property, plant and equipment, net 12,836 10,139
Assets held for sale - 1,795
Long term receivable 772 -
Prepaid expenses and other assets 373 398
---------------- ----------------
Total assets $ 122,234 $ 135,618
================ ================
Liabilities and Equity
Current liabilities
Accounts payable and other accrued
liabilities $ 4,431 $ 2,931
Other current liabilities 91 67
---------------- ----------------
Total current liabilities 4,522 2,998
Other long term liabilities 779 802
---------------- ----------------
Total liabilities 5,301 3,800
---------------- ----------------
Equity
Common stock, $.01 par value,
50,000,000 shares authorized;
15,239,467 and 15,124,567 shares
issued and outstanding 152 152
Additional paid in capital 186,230 185,051
Accumulated deficit (69,475) (53,550)
Accumulated other comprehensive income
(loss) 26 165
---------------- ----------------
Parent company's shareholder's equity 116,933 131,818
---------------- ----------------
Total liabilities and equity $ 122,234 $ 135,618
================ ================
GOLDEN MINERALS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in United States dollars)
(Unaudited)
Three Months Ended
March 31,
----------------------------------
2011 2010
---------------- ----------------
(in thousands, except share data)
Revenue:
Management service fees $ - $ 3,173
Costs and expenses:
Costs of services - (1,617)
Exploration expense (3,686) (3,226)
El Quevar project expense (8,737) (2,469)
Administrative expense (2,239) (2,296)
Stock based compensation (1,179) (522)
Impairment of long lived assets - (113)
Other operating income & (expenses),
net 444 425
Depreciation, depletion and
amortization (389) (109)
---------------- ----------------
Total costs and expenses (15,786) (9,927)
---------------- ----------------
Loss from operations (15,786) (6,754)
Other income and expenses:
Interest and other income 33 270
Royalty income 56 -
Interest and other expense - (25)
Gain (loss) on foreign currency (146) 13
---------------- ----------------
Total other income and expenses (57) 258
---------------- ----------------
Loss from operations before income
taxes (15,843) (6,496)
Income taxes (82) (543)
---------------- ----------------
Net loss $ (15,925) $ (7,039)
Other comprehensive loss:
Unrealized loss on securities (139) (288)
---------------- ----------------
Comprehensive loss $ (16,064) $ (7,327)
================ ================
Net loss per Common Share - basic and
diluted
Loss $ (1.08) $ (1.57)
================ ================
Weighted average Common Stock
outstanding - basic and diluted 14,777,817 4,497,126
================ ================