GOLDEN, Colo., July 16, 2015 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN;TSX :AUM ) ("Golden Minerals" or "the Company") announces results of mining activities for the second quarter 2015 of approximately 125,000 ounces of payable silver equivalent1, in line with the first quarter 2015.
Mill throughput was negatively impacted during the second quarter by lower than planned amounts of material removed from the mine. This resulted primarily from the Company's delay in hiring new and replacement miners during union negotiations for a one-year extension of its union contract, which were completed in May 2015. The mill has processed up to 370 tonnes per day (tpd), is operating well and averaged 225 tpd during the quarter. The mill did not operate for 19 days during the quarter due to insufficient material delivered from the mine. The mill averaged 280 tpd on days that the mill operated during the quarter.
Cash costs per payable silver ounce, net of by-product credits, were approximately $26.00 in the second quarter and are expected to decline as the mine ramps up in the third quarter. Average grades of material processed during the second quarter were 170 grams per tonne (gpt) silver and 2.78 gpt gold compared to 178 gpt silver and 2.66 gpt gold in the first quarter 2015.
Golden Minerals has updated its guidance for the remainder of 2015. The Company has lowered forecasted metals prices to $16 per ounce silver and $1,125 per ounce gold from $17 and $1,250, respectively, and now anticipates approximately 400,000 payable silver equivalent ounces during the remainder of 2015, primarily due to the absence of pyrite concentrate sales due to lower gold prices and to lower silver and gold grades than anticipated. The Company now anticipates cash costs per payable ounce of silver, net of byproduct credits, of between $15 and $20 per ounce for the remainder of 2015, with the increase primarily due to reduced metals sales.
1 Payable silver equivalent ounces include silver and gold but exclude lead and zinc, with silver equivalents calculated at 70:1 silver to gold.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on mining its Velardena Properties and the exploration of properties in Argentina and Mexico.
Non-GAAP Financial Measures
Cash costs per payable silver ounce, net of by-product credits is a non GAAP financial measure calculated by the Company as set forth below, and may not be comparable to similar measures reported by other companies.
Cash costs per payable silver ounce, net of by-product credits, were calculated based on the mining plan and include all direct and indirect costs associated with the physical activities that generate concentrate products for sale to customers, including mining to gain access to mineralized materials, mining of mineralized materials and waste, milling, third-party related treatment, refining and transportation costs, on-site administrative costs and royalties. Cash costs do not include depreciation, depletion, amortization, exploration expenditures, reclamation and remediation costs, sustaining capital, financing costs, income taxes, or corporate general and administrative costs not directly or indirectly related to the Velardena Properties. By-product credits include revenues from gold, lead and zinc contained in the products sold to customers. Cash costs, after by-product credits, were divided by the quantity of payable silver sold in the period to determine cash costs, after by-product credits, per payable ounce of silver. Cost of sales calculated in accordance with GAAP, which includes adjustments for inventory changes and excludes net revenue from by-products and third-party treatment, refining and transportation costs, which are reported as part of revenue in accordance with GAAP], is the most comparable financial measure to cash costs.
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 legislation, including statements regarding including the Company's guidance for the second half of 2015 regarding payable silver equivalent output, cash costs per payable silver ounce, net of by-product credits, and assumed silver and gold prices, anticipated mine ramp up and the timing of such ramp-up. These statements are subject to risks and uncertainties, including: lower than assumed silver and gold prices, higher than anticipated costs of mining and processing; delays or problems in mining, the anticipated ramp-up of mining, processing, or making saleable concentrates at the Velardena Properties; lower than expected silver and gold grades in mined and processed material; variations in material grade and metallurgical characteristics of processed material; delays or failures in receiving government approvals or permits or suspensions of existing approvals and permits; failure to achieve anticipated gold and silver recoveries; failure to achieve anticipated mining or processing results including expected quantities of anticipated saleable products; failures of new mine plan, stope development and slusher techniques to meet expectations; changes in interpretations of geological, geostatistical, metallurgical, mining or processing information and interpretations of the information resulting from future mining and processing experience; reliability of metallurgical testing results and changes in interpretation based on processing results; technical, permitting, mining, metallurgical, recovery or processing issues; problems that delay or reduce underground mine and stope construction; operational changes or problems; failure of mined material to meet expectations including expectations of quantity and gold and silver grades; failure of veins mined to meet expectations, including expectations of quantity and gold and silver grades; increases in costs and declines in general economic conditions; and changes in political conditions, in tax, royalty, environmental and other laws in Mexico, and financial market conditions. Golden Minerals assumes no obligation to update this information. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2014.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Director of Investor Relations
SOURCE Golden Minerals Company