Golden Minerals Reports First Quarter 2024 Financial Results

Golden Minerals Company (“Golden Minerals,” “Golden” or the “Company”) (NYSE-A: AUMN and TSX: AUMN) has today released financial results and a business summary for the quarter ending March 31, 2024. (All figures are in approximate U.S. dollars.)

First Quarter Business Summary and Subsequent Events

• The Company restarted silver-gold production at the Company’s Velardeña Properties (Durango State, Mexico) in December 2023, but stopped mining at the end of February 2024 and stopped processing mineralized material at the end of March 2024, after determining the initial performance of the mine and processing plant did not achieve the expected mine production ramp-up schedule or initial expected plant concentrate production results. Operational issues at the mine were caused by a combination of insufficient experienced miners, and issues with mine ventilation and mining equipment availability.
• On March 27, 2024, Golden announced that Barrick Gold Corporation had notified the Company that it was withdrawing from the 2020 Earn-In Agreement between the two parties related to the Company’s El Quevar silver project (Salta Province, Argentina). The agreement’s termination was effective on April 20, 2024 and the El Quevar project has now reverted back into the full control of Golden Minerals. Golden now intends to focus on exploration activities at El Quevar as funding allows.
• On April 29, 2024, two of Golden’s Mexico subsidiaries, Minera William S.A. de C.V. (“Minera William”) and Minera Labri S.A. de C.V. (“Minera Labri”) entered into certain asset purchase and sale agreements with a privately held Mexican company whereby Minera William and Minera Labri agreed to sell certain mining concessions, equipment, land parcels and other assets to the buyer in exchange for an aggregate purchase price of $5.5 million in cash, plus Value-Added Tax (“VAT”). The assets being sold include the Velardeña and Chicago mines, both of the Company’s oxide and sulfide processing plants and related equipment. Under the terms of the purchase and sales agreements:
  • On April 29, 2024, the buyer paid a non-refundable advance payment of $1.0 million in cash to the Company;
  • On May 20, 2024, the buyer shall pay $2.0 million in cash, plus VAT (including VAT on the advance payment), to the Company, and
  • On July 1, 2024, the buyer shall pay $2.5 million in cash, plus VAT, to the Company.

Although the Company believes the transaction will be completed, there can be no assurance that the transaction will be completed on the terms described or at all.