GOLDEN, CO--(Marketwire - May 4, 2011) - Golden Minerals Company ("Golden Minerals" or the "Company") (
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 | ||||||||