GOLDEN, Colo., March 1, 2013 /CNW/ – Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) (“Golden Minerals” or “the Company”) announces 2012 year-end results.
For the period January 1, 2012 through December 31, 2012, Golden Minerals recorded revenue of $26.1 million and costs of metals sold of $33.4 million for a negative gross margin of $7.3 million from the sale of metals at the Velardena Operations in Mexico. For the same period the Company recorded a total net loss of $92.0 million, which includes the negative gross margin at the Velardena Operations and $58.5 million associated with a non-cash goodwill impairment charge, $57.2 million of which was recorded previously in the third quarter. The net loss also includes $7.9 million for project expenses and mine development costs related to the Velardena Operations, $10.0 million of non-cash depreciation and amortization-related expense, $7.1 million of corporate general and administrative expense, $7.0 million of exploration expense and $5.1 million of expense associated with the El Quevar project. These expenses were partially offset by other operating income of $2.5 million related primarily to net gains on the sale of certain fixed assets and non-strategic mineral properties and interest and other income of $2.5 million related primarily to the sale of the Platosa net smelter royalty.
The Company’s cash and cash equivalents balance totaled $44.4 million at December 31, 2012 compared to $48.6 million at December 31, 2011. The $4.2 million decrease in cash and cash equivalents during 2012 resulted primarily from the cash operating expenditures described above plus $9.6 million in capitalized property and plant expenditures, incurred primarily at the Velardena Operations, offset by the Company’s receipt of approximately $37.0 million related to a public offering and private placement of units comprised of common stock and warrants in September 2012, plus $5.1 million received in net proceeds from asset sales.
About Golden Minerals
Golden Minerals Company is a Delaware corporation based in Golden, Colorado, primarily engaged in silver and gold mining at its Velardena Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler
(303) 839-5060
Director of Investor Relations
GOLDEN MINERALS COMPANY | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Expressed in United States dollars) | ||||||
December 31, | December 31, | |||||
2012 | 2011 | |||||
(in thousands, except share data) | ||||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ 44,406 | $ 48,649 | ||||
Investments | 242 | – | ||||
Trade receivables | 1,291 | – | ||||
Inventories | 3,388 | 5,312 | ||||
Value added tax receivable | 4,422 | 1,317 | ||||
Prepaid expenses and other assets | 1,044 | 3,119 | ||||
Total current assets | 54,793 | 58,397 | ||||
Property, plant and equipment, net | 280,905 | 284,199 | ||||
Assets held for sale | 575 | – | ||||
Goodwill | 11,666 | 70,155 | ||||
Prepaid expenses and other assets | 163 | 264 | ||||
Total assets | $ 348,102 | $ 413,015 | ||||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Accounts payable and other accrued liabilities | $ 6,232 | $ 8,070 | ||||
Other current liabilities | 7,074 | 7,505 | ||||
Total current liabilities | 13,306 | 15,575 | ||||
Asset retirement and reclamation liabilities | 2,259 | 3,781 | ||||
Deferred tax liability | 47,072 | 55,603 | ||||
Other long term liabilities | 193 | 288 | ||||
Total liabilities | 62,830 | 75,247 | ||||
Equity (deficit) | ||||||
Common stock, $.01 par value, | ||||||
100,000,000 shares authorized; 43,265,833 and 35,690,035 shares issued and outstanding, respectively | 433 | 355 | ||||
Additional paid in capital | 493,175 | 453,756 | ||||
Accumulated deficit | (208,246) | (116,221) | ||||
Accumulated other comprehensive income (loss) | (90) | (122) | ||||
Shareholders’ equity | 285,272 | 337,768 | ||||
Total liabilities and equity | $ 348,102 | $ 413,015 | ||||
GOLDEN MINERALS COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||
(Expressed in United States dollars) | ||||||||
The Years Ended December 31, | ||||||||
2012 | 2011 | 2010 | ||||||
(in thousands except per share data) | ||||||||
Revenue: | ||||||||
Sale of metals | $ 26,086 | $ 1,836 | $ – | |||||
Management service fees | – | – | 11,216 | |||||
Costs and expenses: | ||||||||
Cost of metals sold (exclusive of depreciation shown | ||||||||
below) | (33,369) | (6,086) | – | |||||
Costs of services | – | – | (2,566) | |||||
Exploration expense | (7,009) | (17,774) | (13,353) | |||||
El Quevar project expense | (5,115) | (27,342) | (15,755) | |||||
Velardena project and development expense | (7,912) | (587) | – | |||||
Administrative expense | (7,063) | (8,729) | (8,600) | |||||
Severance and acquisition related costs | – | (7,171) | – | |||||
Stock based compensation | (2,588) | (5,541) | (3,281) | |||||
Reclamation expense | (226) | (231) | – | |||||
Reversal of impairment of long live assets | – | – | 873 | |||||
(Impairment) of goodwill | (58,484) | – | – | |||||
Other operating income, net | 2,482 | 660 | 311 | |||||
Depreciation, depletion and amortization | (10,012) | (2,792) | (1,095) | |||||
Total costs and expenses | (129,296) | (75,593) | (43,466) | |||||
Loss from operations | (103,210) | (73,757) | (32,250) | |||||
Other income and expenses: | ||||||||
Interest and other income | 2,543 | 11,615 | 178 | |||||
Royalty income | 373 | 396 | 314 | |||||
Interest and other expense | (257) | (1,254) | – | |||||
Gain (loss) on foreign currency | 512 | (1,326) | (89) | |||||
Loss on extinguishment of debt | – | (474) | – | |||||
Other total income and expenses | 3,171 | 8,957 | 403 | |||||
Loss from operations before income taxes | (100,039) | (64,800) | (31,847) | |||||
Income taxes benefit (expense) | 8,014 | 2,129 | (1,427) | |||||
Net loss | $ (92,025) | $ (62,671) | $ (33,274) | |||||
Other comprehensive gain (loss): | ||||||||
Unrealized gain (loss) on securities, net of tax | $ 32 | $ (287) | $ 11 | |||||
Comprehensive loss | $ (91,993) | $ (62,958) | $ (33,263) | |||||
Net loss per common share basic and diluted | ||||||||
Loss | $ (2.45) | $ (2.94) | $ (3.72) | |||||
Weighted average Common Stock outstanding – basic and diluted | 37,522,871 | 21,280,916 | 8,947,739 | |||||
SOURCE: Golden Minerals Company
