Uncategorized
Golden Minerals Reports Third Quarter 2022 Results
Golden Minerals Company (NYSE American: AUMN) (TSX: AUMN) provided financial results and a business summary for the quarter ending September 30, 2022.
Third Quarter Financial Results – Highlights
(All currency expressed in approximate USD)
- Revenue of $5.3 million yielding a net operating margin of $0.9 million in the third quarter 2022, vs. $8.5 million revenue and a net operating margin of $4.2 million in the third quarter 2021, both from mining operations at the Company’s Rodeo gold-silver mine in Mexico.
- $6.5 million cash and cash equivalents balance as of September 30, 2022, compared to $12.2 million as of December 31, 2021.
- Net loss of $0.02 per share or $2.7 million in the third quarter 2022, compared to a net gain of $0.00 per share or $0.4 million in the third quarter 2021.
Third Quarter Business Summary
- The Rodeo mine (Mexico) produced 2,972 payable gold ounces and 11,907 payable silver ounces (3,103 gold equivalent (“AuEq”) ounces) with total cash costs, net of silver by-product credits, per payable ounce of gold of $1,391.1
- Sold 3,145 AuEq oz. in doré at average prices of $1,703/oz Au and $18.72/oz Ag (before costs of selling and refining). Doré inventory on September 30, 2022, consisted of 277 payable gold ounces and 1,309 payable silver ounces.
- At the Velardeña Properties (Mexico), the Company continued its evaluation of modified mine plans and mining techniques to address dilution issues encountered during 1H 2022 test-mining activities. The Company also began testing ore sorting technology in the third quarter 2022 to evaluate its potential application at the Velardeña Properties.
- At the Yoquivo gold prospect (Mexico), the Company completed a third drill program of 5,693 meters in 24 drill holes in July 2022 and is currently conducting a fourth drill program of approximately 3,000 meters. The Company plans to complete a maiden resource estimate for the property for release in the first quarter 2023.
- Completed additional drilling at the Sarita Este gold prospect (Salta, Argentina) for a project total since inception of 4,925 meters in 51 core drill holes.
1 Gold equivalents are based on actual gold and silver prices realized during the third quarter 2022. “Cash costs, net of by-product credits, per payable gold ounce” is a non-GAAP financial measure. For further information, see “Non-GAAP Financial Measures” below.
Third Quarter 2022 Financial Results
The Company reported revenue of $5.3 million from doré sales, $4.4 million costs of metals sold and $0.9 million in net operating margin in the third quarter 2022, all related to gold-silver production at the Rodeo mine. Exploration expenses, including property holding costs and allocated administrative expenses, totaled $2.4 million during the quarter. Exploration expenses were primarily related to costs to increase the capacity of the tailings dam at Velardeña to support processing of the Rodeo mineralized material, costs in support of the potential restart of Velardeña, exploration activities at the Yoquivo project in Mexico, and exploration activities at the Sarita Este project in Argentina. Velardeña care and maintenance expenses were $0.4 million in the quarter and include expenses related to care and maintenance as a result of the suspension of mining and processing activities in November 2015. El Quevar project expense was $0.2 million during the third quarter and includes holding and evaluation costs for the Yaxtché deposit at El Quevar, net of reimbursements from Barrick Gold under the terms of an Earn-In Agreement. Administrative expenses totaled $0.9 million and include costs associated with being a public company that were incurred primarily by the Company’s corporate activities in support of the Rodeo Property, the Velardeña Properties, the El Quevar project and the Company’s exploration portfolio. The Company reported a net loss of $2.7 million or $0.02 per share.
Twelve-Month Financial Outlook
The Company ended the third quarter of 2022 with a cash balance of $6.5 million and anticipates receiving approximately $5.5 to $6.5 million in net operating margin (defined as revenue from the sale of metals less costs of metals sold) from the Rodeo operation during the 12 months ending September 30, 2023, assuming average gold and silver prices during that period of $1,800/oz and $25.00/oz, respectively. Current commodity prices have recently fallen below these thresholds and there is no assurance that our expectations regarding future prices will be realized. At average gold and silver prices of $1,700/oz and $20.00/oz, respectively, our expected net operating margin for the 12 months ending September 30, 2023 would decrease by approximately $1.5 million. The Company also anticipates receiving $1.75 million from Fabled Silver Gold Corp. related to the sale of the Company’s Santa Maria property during the 12-month period.
Currently forecasted expenditures during the 12 months ending September 30, 2023, apart from Rodeo costs of metals sold which are included in the net operating margin forecast, total approximately $9.6 million as follows:
- $4.3 million on exploration activities and property holding costs associated with the Company’s portfolio of exploration properties located in Mexico, Argentina and Nevada, including project assessment and evaluation costs for exploration at Rodeo and Yoquivo, plus costs associated with the potential restart of Velardeña and costs to increase its tailings facility which processes Rodeo’s mineralized material;
- $1.0 million at the Velardeña Properties for care and maintenance;
- $0.4 million at the El Quevar project to fund care and maintenance and property holding costs, net of reimbursement from Barrick; and
- $3.9 million in general and administrative costs.
Additional information regarding third quarter 2022 financial results can 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 growing gold and silver producer based in Golden, Colorado. The Company is primarily focused on producing gold and silver from its Rodeo Mine and advancing its Velardeña Properties in Mexico and, through partner funded exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.
Financial Statements
| CONDENSED CONSOLIDATED BALANCE SHEETS
(US Dollars, unaudited) |
||||||||
| December 31, | ||||||||
| September 30, | 2021 | |||||||
| 2022 | (Restated)* | |||||||
| (in thousands, except share data) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 6,504 | $ | 12,229 | ||||
| Short-term investments | 35 | 67 | ||||||
| Inventories, net | 1,786 | 1,608 | ||||||
| Value added tax receivable, net | 1,770 | 1,290 | ||||||
| Prepaid expenses and other assets | 1,182 | 1,145 | ||||||
| Total current assets | 11,277 | 16,339 | ||||||
| Property, plant and equipment, net | 6,404 | 6,627 | ||||||
| Investments | 225 | — | ||||||
| Other long-term assets | 643 | 747 | ||||||
| Total assets | $ | 18,549 | $ | 23,713 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other accrued liabilities | $ | 4,345 | $ | 3,509 | ||||
| Deferred revenue | 344 | 1,469 | ||||||
| Other current liabilities | 276 | 721 | ||||||
| Total current liabilities | 4,965 | 5,699 | ||||||
| Asset retirement and reclamation liabilities | 3,805 | 3,569 | ||||||
| Other long-term liabilities | 149 | 353 | ||||||
| Total liabilities | 8,919 | 9,621 | ||||||
| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Common stock, $.01 par value, 350,000,000 shares authorized; 167,477,992 and 162,804,612 shares issued and outstanding respectively | 1,675 | 1,628 | ||||||
| Additional paid-in capital | 541,835 | 540,518 | ||||||
| Accumulated deficit | (533,880 | ) | (528,054 | ) | ||||
| Shareholders’ equity | 9,630 | 14,092 | ||||||
| Total liabilities and equity | $ | 18,549 | $ | 23,713 | ||||
* See Note 3, “Notes to the Condensed Consolidated Financial Statements” in the Form 10-Q.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (US dollars, unaudited) |
||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| (in thousands except per share data) | (in thousands, except per share data) | |||||||||||||||
| Revenue: | ||||||||||||||||
| Sale of metals | $ | 5,268 | $ | 8,479 | $ | 18,700 | $ | 16,118 | ||||||||
| Total revenue | 5,268 | 8,479 | 18,700 | 16,118 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of metals sold (exclusive of depreciation shown below) | (4,374 | ) | (4,292 | ) | (13,335 | ) | (9,156 | ) | ||||||||
| Exploration expense | (2,376 | ) | (2,146 | ) | (7,038 | ) | (4,021 | ) | ||||||||
| El Quevar project expense | (154 | ) | (90 | ) | (448 | ) | (249 | ) | ||||||||
| Velardeña care and maintenance costs | (370 | ) | (414 | ) | (843 | ) | (754 | ) | ||||||||
| Administrative expense | (918 | ) | (911 | ) | (3,466 | ) | (3,451 | ) | ||||||||
| Stock-based compensation | (194 | ) | (75 | ) | (543 | ) | (1,491 | ) | ||||||||
| Reclamation expense | (71 | ) | (67 | ) | (211 | ) | (196 | ) | ||||||||
| Other operating income, net | 384 | 138 | 1,274 | 472 | ||||||||||||
| Depreciation and amortization | (89 | ) | (143 | ) | (241 | ) | (466 | ) | ||||||||
| Total costs and expenses | (8,162 | ) | (8,000 | ) | (24,851 | ) | (19,312 | ) | ||||||||
| (Loss) income from operations | (2,894 | ) | 479 | (6,151 | ) | (3,194 | ) | |||||||||
| Other income (expense): | ||||||||||||||||
| Interest and other expense, net | (3 | ) | (13 | ) | (17 | ) | (336 | ) | ||||||||
| Gain on foreign currency transactions | 154 | 133 | 252 | 156 | ||||||||||||
| Total other income (expense) | 151 | 120 | 235 | (180 | ) | |||||||||||
| (Loss) gain from operations before income taxes | (2,743 | ) | 599 | (5,916 | ) | (3,374 | ) | |||||||||
| Income taxes | 46 | (188 | ) | 90 | (203 | ) | ||||||||||
| Net (loss) income | $ | (2,697 | ) | $ | 411 | $ | (5,826 | ) | $ | (3,577 | ) | |||||
| Net (loss) income per common share – basic | $ | (0.02 | ) | $ | 0.00 | $ | (0.04 | ) | $ | (0.02 | ) | |||||
| Weighted-average shares outstanding – basic | 166,948,751 | 162,477,039 | 164,872,701 | 161,751,452 | ||||||||||||
Posted November 10, 2022
MORE or "UNCATEGORIZED"
Critical Metals Corp Achieves Breakthrough Tanbreez Heavy Rare Earth Results: >99% Dissolution of Eudialyte Concentrate Into 19 Ultra-High-Purity Rare Earth Products; Refinery Study Projects US$1.8–2.2b in Annual Refinery Revenue
Critical Metals Corp. (Nasdaq: CRML) a leading critical minerals ... READ MORE
September 16, 2026
Metalsource Mining Extends High Grade Mineralization at Depth as Silver Hill Exploration Enters Major Expansion Phase
Holes SH26-22 and SH26-23 return up to 930 g/t AgEq within broade... READ MORE
September 16, 2026
Pasinex Completes Sale of High-Grade Zinc Sulphide Material and Provides Pinargozu Operations Update
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) a growing zinc-fo... READ MORE
September 16, 2026
Aya Gold & Silver Reports High-Grade Silver Exploration Results Near Pit and at Depth at Zgounder
Aya Gold & Silver Inc. (TSX: AYA; NASDAQ: AYA) is pleased to... READ MORE
September 16, 2026
New Break Resources Ltd. (CSE: NBRK) (OTCQB: NBRKF) (FSE: O91) has received results from the last four holes of a ten-hole, 1,996 metre summer drilling program in the Zavitz gold zone at the Company's 100% owned Moray gold project. In total, New Break has completed 5,372 metres of drilling in 32 drillholes in 2026. Moray is located 49 km southeast of Timmins, Ontario and 32 km northwest of the Young-Davidson gold mine operated by Alamos Gold Inc. Select results from the final four of ten holes drilled in the summer drilling program are presented below in Table 1, while drillhole collar locations are detailed in Table 2 in Appendix A. Table 1 – Moray Summer 2026 Final Drill Results Hole ID Length (m) From (m) To (m) Width (1) (m) Au Grade (2) (g/t) NBR-26-29 322.0 77.3 78.8 1.5 0.42 and 138.0 139.1 1.1 0.38 and 162.5 173.3 10.8 (3) 1.61 and 227.4 229.0 1.6 1.21 and 231.5 232.1 0.6 1.72 NBR-26-30 250.0 37.0 38.0 1.0 0.30 and 102.8 103.5 0.7 0.60 and 121.5 122.5 1.0 0.36 and 124.5 125.5 1.0 0.33 and 128.5 129.0 0.5 0.90 and 131.0 132.0 1.0 0.36 and 169.8 174.0 4.2 2.65 and 178.0 179.5 1.5 0.77 and 183.5 186.6 3.1 1.22 and 190.0 190.5 0.5 1.06 and 191.5 192.5 1.0 1.48 and 196.0 200.5 4.5 2.53 and 203.5 204.0 0.5 2.15 and 206.5 212.0 5.5 1.57 NBR-26-31 274.0 169.0 170.5 1.5 0.37 and 184.5 186.0 1.5 0.51 and 197.0 200.0 3.0 0.94 and 201.5 202.0 0.5 0.50 and 203.5 210.0 6.5 (3) 3.12 NBR-26-32 352.0 73.5 74.0 0.5 0.44 and 174.0 174.6 0.6 0.52 and 194.0 195.0 1.0 0.66 and 199.8 203.3 3.5 2.29 and 227.3 228.0 0.7 0.97 (1) Intervals are drill intersections and do not necessarily represent true widths. (2) All intervals are presented using a cut-off grade of 0.3 g/t Au and internal dilution of no more than 1.0 metres at grades less than 0.3 g/t Au and assays are not capped (see QA/QC Procedures). (3) Drill core photos shown in Appendix B. Figure 1 – Newly Reported Drillholes NBR-26-29, 30 Figure 2 – Newly Reported Drillholes NBR-26-30, 31, 32 Note: The bottom of NBR-26-30 deviated southeast and is represented in both sections. Figure 1: Section B-B1 incorporates drillholes NBR-26-06, 07, 08, 25, 26, 27, 28, 29 and part of 30. Gold mineralization extends southeast into the syenite as exhibited in NBR-26-29. NBR-26-30 is identified in both sections A-A1 and B-B1 as the drillhole was collared along section A-A1 but deviated southeast, intersecting gold mineralization in the mafic volcanics in section B-B1. Figure 2: A-A1 incorporates drillholes NBR-26-03, 04, 05, 23, 24, 30, 31 and 32. NBR-26-31 exhibits gold mineralization both within the syenite (at the contact) and within a "flow breccia" within the hematite altered mafic volcanic at the contact. NBR-26-32 is typified by blocky faulted ground with lamprophyre dykes and gold mineralization in the hematite altered mafic volcanics in a brecciated quartz vein with angular syenitic fragments. William Love, Chief Executive Officer of New Break commented, "Ongoing drilling this summer in the Zavitz gold zone continues to deliver significant gold values, with gold mineralization intercepted in every drillhole. As depicted in Figures 1 and 2, gold mineralization has been encountered predominantly within the mafic volcanics. Importantly, drillholes NR-26-29 and NR-26-32, the deepest drilled to date, demonstrate that gold mineralization extends into the syenite to the southeast at the contact with the mafic volcanics." He further noted, "The intrusive-mafic volcanic contact in the Zavitz gold zone has a distinctive magnetic high. This could be reflective of the higher proportion of iron in these mafic volcanics, which is associated with the higher gold values. This same magnetic and IP signature has been identified elsewhere in areas also believed to be along the intrusive-mafic volcanic contact. Drilling these never before tested targets with the goal of identifying gold mineralization similar to that encountered in the Zavitz zone represents the potential for significantly expanding the Moray gold discovery. There is also the belief that the Zavitz zone could represent the first of a series of stacked mineralized gold zones, which would point to the potential for a much larger gold system at depth. We plan to test this through deeper drilling directly into the Zavitz zone." About the Moray Gold Project The Moray property is located in the heart of the Ontario Abitibi greenstone belt, 49 km southeast of Timmins surrounded by a number of significant gold producing companies and existing mills (see Figure 3). The Young-Davidson gold mine operated by Alamos Gold Inc., with its 8,000 tonne per day mill is the closest and within a short trucking distance of approximately 45 km by road from Moray. The understanding of gold mineralization at Moray continues to evolve with each round of drilling. The occurrence of gold mineralization extending into the syenite to the southeast of the Zavitz zone and in the deepest drillholes is noteworthy given the presence of syenite-hosted mineralization at Young-Davidison. More recent examination of the drill core also suggests that the gold mineralization discovered to date may resemble an intrusion related style of deposit like Agnico Eagle's Upper Beaver gold deposit east of Kirkland Lake, as opposed to a structurally hosted gold system. Both Young-Davidson and Upper Beaver host multi-million ounce gold deposits. Figure 3 – Moray Location Map: Surrounding Gold Producers and Upper Beaver Gold Project Technical Content and Qualified Person The scientific and technical information contained in this news release has been reviewed and approved by Peter C. Hubacheck, P. Geo, consulting geologist to New Break, and an independent Qualified Person as defined by National Instrument 43-101. Mr. Hubacheck certifies that this news release fairly and accurately reflects the technical information and data presented. New Break conducts its exploration activities in accordance with CIM Best Practices Guidelines. QA/QC Procedures QA/QC procedures were executed to ensure all work is conducted in accordance with best practices. All drill core was sawn in half with one half of the core prepared for shipment and the other half retained for future verification. All core is under watch from the drill site to the core processing facility. Drill core is BQTK size and sample intervals range from 0.5 metres to 1.0 metres in length. Commercially prepared certified reference material ("CRM") standards and blanks were inserted with each shipment at a rate of 1 QAQC sample in every 12 core samples. Samples from New Break's 2026 Moray drilling program were analyzed at Activation Laboratories in Timmins, Ontario, which is ISO 17025 certified, by 30-gram fire assay with atomic absorption finish. Any sample assaying greater than 10.0 g/t Au was re-assayed with fire assay gravimetric analysis. Grade composite intervals over core lengths are calculated using a weighted average grade with a cut-off grade of 0.3 g/t Au. Up to 1.0 m of internal dilution (consecutive interval below cut-off grade) are included within specific geologic domains and alteration assemblages, except as otherwise noted. The composites are constrained geologically by metasomatic alteration processes sourcing from the Fiset syenite intrusion and contact mafic volcanic rocks. Elevated gold values are coincident with hematite, silica, sericite and pyrite mineralization within structurally prepared brecciated corridors flanking the intrusion. Intervals are not true widths and no top cutting has been applied to the higher gold values. About New Break Resources Ltd. New Break is a Canadian mineral exploration company focused on its Moray gold project located 49 km southeast of Timmins, Ontario, in a well-established mining camp within proximity to existing infrastructure, and 32 km northwest of the Young-Davidson gold mine, operated by Alamos Gold Inc. Shareholders are also leveraged to exploration success in Nunavut, Canada, through New Break's 20% carried interest in the Sundog gold project and ownership of 6.0 million shares of Guardian Exploration Inc. (TSXV: GX). The Company is supported by a highly experienced team of mining professionals. Appendix A – Drillhole Data and Locations Table 2 – Moray Summer 2026 Drillhole Collar Locations Hole ID Length (m) UTM Easting UTM Northing UTM Elevation Azimuth (degrees) Dip (degrees) NBR-26-29 322.0 492703 5320285 363 220 -70 NBR-26-30 250.0 492708 5320329 363 220 -47 NBR-26-31 274.0 492708 5320329 363 220 -60 NBR-26-32 352.0 492708 5320329 363 220 -70 Total 1,198.0 Coordinates are reported in UTM Zone 17 North, with units in metres. Figure 4 – Zavitz Gold Zone – Surface Traces of 2025 and 2026 Drillholes. All of the drilling at Moray has been completed by Enviro North Exploration Inc. out of Sturgeon Falls, Ontario. Drilling in the Zavitz gold zone is shown in figure 4, with the 1,996 metres in 10 holes drilled this summer depicted in red, the 2,807 metres in 20 holes drilled from January to April 2026 shown in blue and the 1,817 metres in 8 holes drilled in 2025 shown in black. In total, 6,620 metres in 38 drillholes have been completed in the Zavitz gold zone, while New Break has completed a total of 5,372 metres in 32 drillholes of our planned 2026, 10,000 metre drilling program. Appendix B – Drill Core Photos From NBR-26-29 and NBR-26-31
New Break Resources Ltd. (CSE: NBRK) (OTCQB: NBRKF) (FSE: O91) ha... READ MORE
September 16, 2026
