GOLDEN, CO--(Marketwired - Nov 7, 2017) - Golden Minerals Company ("Golden Minerals", "Golden" or "the Company") (NYSE American: AUMN) (TSX: AUMN) today provided a business summary and financial results for the third quarter ended September 30, 2017.
Third Quarter Financial Results
The Company reported revenue of approximately $1.8 million in the third quarter 2017 related to the oxide plant lease and costs of approximately $0.6 million related to the services Golden provides under the lease, for a net margin of $1.2 million. Exploration expense was $1.0 million during the third quarter, incurred primarily on drilling activity and property acquisition payments related to the Santa Maria and Mogotes properties. Golden also incurred $0.2 million of project expenses related primarily to holding costs at its El Quevar project, as well as $0.4 million related to care and maintenance at the Velardena Properties. Administrative expenses totaled $0.7 million during the third quarter compared to $0.9 million in the third quarter 2016. Golden reported a net loss of $0.3 million in the third quarter 2017 compared to a net loss of $0.8 million in the year ago period. The prior year figure included non-cash losses of $0.5 million related to certain of the Company's warrants which, subsequent to a change in accounting principle related to a recent pronouncement issued by the U.S. Financial Accounting Standards Board, have been reclassified from liabilities to equity retroactively to January 1, 2017.
Cash and Financial Outlook
The Company ended the third quarter with $5.0 million in cash and equivalents, or $2.4 million greater than the $2.6 million in similar assets held at December 31, 2016. The increase is due in part to the following expenditures and cash inflows during the first three quarters of 2017:
Expenditures totaled $6.2 million:
Cash inflows totaled $8.6 million:
In addition to the $5.0 million balance as of September 30, 2017, during the next 12 months the Company expects to receive approximately $4.6 million in net operating margin from the lease of the oxide plant and an additional $0.8 million from Santacruz related to the exploration property farm out noted above. With the transactions referred to above and if no additional sales of common stock under the Company's ATM program occur, Golden projects it would end 2017 with a cash balance of approximately $3.5 million and end September 30, 2018 with a cash balance of approximately $2.5 million, based on the following forecasted expenditures during the next 12 months:
Third Quarter Business Summary
Additional information regarding third quarter 2017 financial results may be found in the Company's 10-Q Quarterly Report which is available on the Golden Minerals website at www.goldenminerals.com.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on acquiring and advancing mining properties in Mexico with emphasis on areas near its Velardena processing plants.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation, including statements relating to expectations regarding the oxide plant lease; projected future cash balances; future drilling plans at, anticipated future resource estimates, and potential capital costs for development of Santa Maria; future drilling activities at the Mogotes project; and future results from the re-modeling project at El Quevar. These statements are subject to risks and uncertainties, including changes in interpretations of geological, geostatistical, metallurgical, mining or processing information and interpretations of the information resulting from future exploration, analysis or mining and processing experience, new information from drilling programs or other exploration or analysis, unexpected variations in mineral grades, types and metallurgy, fluctuations in silver and gold metal prices, increases in costs and declines in general economic conditions, and changes in political conditions, in tax, royalty, environmental and other laws in Mexico or Argentina, and financial market conditions. Golden Minerals assumes no obligation to update this information. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities and Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2016.
SOURCE: Golden Minerals Company
(1) Potentially dilutive shares have not been included because to do so would be anti-dilutive.