Golden Minerals
Golden Minerals, based in Golden, Colorado, is a mining company with projects in Mexico, Argentina, and Nevada, focusing on silver and gold. The company concluded operations at the Rodeo mine in 2023 and is advancing its Yoquivo and El Quevar properties.
History
Golden Minerals is based in Golden, Colorado, and has been active in the mining sector with multiple projects in Mexico, Argentina, and Nevada. The company concluded its gold-silver mining operations at the Rodeo open pit mine in the third quarter of 2023. The Rodeo mine generated over $57 million in revenue and $18 million in net operating margin throughout its operations. Golden Minerals has also restarted mining activities at the Velardeña properties in December 2023, but halted operations in February 2024 due to operational issues.
Projects
Golden Minerals has several ongoing projects, primarily focusing on the Yoquivo property in Mexico and the El Quevar silver property in Argentina. Yoquivo has an inferred mineral resource of 937,000 tonnes at 570 g/t Ag eq, with an initial mineral resource estimate completed in February 2023. The El Quevar project spans 56,719 hectares in Salta Province, Argentina, and contains a high-grade silver deposit at the Yaxtché deposit. Additionally, Golden Minerals is involved in the Sarita Este project, a gold-silver-copper exploration in Salta Province, and the Sand Canyon project in northwestern Nevada.
Financial Position
As of March 31, 2024, Golden Minerals had current assets of approximately $5.3 million, including cash and cash equivalents of $2.4 million. The company faced accounts payable and current liabilities totaling around $6.5 million. With insufficient resources to meet its expected cash needs through March 31, 2025, Golden Minerals plans to raise capital through the sale of its Velardeña assets for $5.5 million. The company also had a VAT receivable of approximately $1.1 million in Mexico as of the same date.
Strategic Partnerships
Golden Minerals has partnered with Barrick Gold Corporation for the development of the El Quevar project in Salta, Argentina, under an Earn-In Agreement from April 2020 to April 2024. During this period, Barrick spent over $6.0 million on work expenditures at El Quevar. The collaboration aimed to enhance the exploitation of the high-grade silver deposits present at the site.
Investments and Leverage
Golden Minerals positions itself as an investment opportunity that offers leverage to silver and gold prices. The company's diverse portfolio includes approximately 12 properties located across Mexico, Nevada, and Argentina. Potential investors may find value in its diverse project pipeline, including the sale of the Velardeña assets and continued development of key properties like Yoquivo and El Quevar.