Golden Minerals Reports 2012 Year-End Results

GOLDEN, Colo., March 1, 2013 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") announces 2012 year-end results.

(Logo: http://photos.prnewswire.com/prnh/20120803/LA52082LOGO)

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



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