Golden Minerals (AUMN) - Live Conference Circuit Starts Again

Golden Minerals Company is a Colorado-based precious metal junior gold-silver producer with a pipeline of exploration projects that offer investors leverage on silver and gold prices. The company seeks to establish itself as a premier mid-tier precious metals mining company, with efforts focused on properties in Mexico, Argentina, and Nevada. 

Matt Gordon caught up with Warren Rehn, President, Director, and CEO, Golden Minerals Company. Warren was appointed the role of CEO and Director in September 2015. He previously held the position of Senior Vice President, Exploration, and Chief Geologist in the company. He has previously worked for Barrick Gold Exploration, Inc., and Placer Dome Exploration Inc. Warren has also held Senior Geologist positions in Noranda Exploration, Inc, and Gold Fields Mining Corp. His educational credentials include a Master of Science degree in Geology from the Colorado School of Mines and a Bachelor of Science degree in Geological Engineering from the University of Idaho. 

Company Overview

Golden Minerals Company is a precious metals development and exploration company. It was founded in 1996 and is headquartered in Colorado, the United States. The company is listed on the Toronto Stock Exchange (TSX-V: AUMN), and the New York Stock Exchange (NYSE: AUMN).

The company's subsidiaries include ASM Services S.a.r.l., the San Cristobal mine, Silex Ecuador SA, Minera Silex Peru SRL, Apex Silver Mines, Apex Silver Finance Ltd. Minera Largo S de RL de CV, Minera El Quevar S.A., Apex Silver Mines Sweden AB, Apex Luxembourg S.a.r.l., Minera William, S.A. de SV, Blm Minera Mexicana S.A De CV, Minera De Cordilleras, S. De R.L. De C.V, Apex Metals Marketing GmbH, and Golden Minerals Services Corp. 

The Metals Investor Forum

Golden Minerals Company recently attended the Metals Investor Forum, the first in-person conference for 2021 post the pandemic. The company is looking to attract interest from both retail and institutional investors at the forum. Canadian retail investors have also shown an increased interest in the mining industry in recent times.

Following the recent announcements regarding the inflationary measures taken by the Federal Government, there has been increased activity around gold purchases in the market. Goldman Sachs also made a recent statement projecting the 2022 gold price. Golden Minerals Company anticipates that gold will observe a bullish run in the coming months. 

The Rodeo Mine

Golden Minerals is a gold and silver producer in Mexico. The company entered production earlier than originally planned and was able to achieve great success with its Rodeo Mine in Durango, Mexico. The company posted highly-favorable production numbers at this asset. According to a recent press release, Golden Minerals has uncovered gold reserves of 20m at 8.2g. This grade was discovered through RC drilling at an intercept. 

The company is looking for near-pit expansion opportunities at this high-grade interval. It is looking to demonstrate that the high-grade zone continues further than originally anticipated in the resource estimate. The company has also observed extensions towards the north and south along with parallel structures. It is looking to include these structures as part of the pit through a small expansion. This will further help in extending the life of the Rodeo mine. 

As Golden Minerals Company entered production in Mexico, the company has been able to strike a balance between the generated cash flow and the expenses for project advancement. The company is looking at near-pit expansions as a way to continue generating a healthy cash flow. This will also remove the need to raise additional capital from the equity market. 

Cash Position

The Golden Minerals Company recently published its Q3, 2021 financial results. In this quarter, the company generated $8.5M revenue with $4.2M in net operating margin. This was the company's first profitable quarter achieved from mine production. Since the company also invested funds towards drilling and exploration, its profit post expenses were $0.5M. 

The company is currently processing a 500t gold supply through the mill on a daily basis. It is looking to increase gold recoveries further by optimizing plant operations. The average grade for Q3 was 4g/t gold. The company anticipates that in case of a drop in grade, the increase in recovery will balance out the net operating revenue. 

Ongoing Operations

The company continues to carry out drill operations at Yoquivo, Chihuahua uncovering favorable drill intercepts. The company is currently awaiting assay results to proceed further. 

In Argentina, the company is advancing both the Sarita Esta project and the El Quevar asset. It is seeking additional farm-in opportunities at the fully-owned Velardeña asset for longer-term and larger-sized assets. This asset features 2 underground mines and 2 mills (oxide and sulphide), producing silver and gold along with lead and zinc as by-products. 

M&A Activity

Golden Minerals Company has an expansive portfolio of assets. The company is currently in the process of offloading its non-core projects, including the Santa Maria asset in Chihuahua, Mexico. 

Targets 2021 and Beyond

Golden Minerals Company was successful in de-risking the Rodeo mine. The company developed the resource model for the asset and later found that the model is highly accurate. This has enabled the company to carry on operations as originally planned. It anticipates that over time, new discoveries will help further expand the mine life. The company produced 12,000oz-14,000oz gold in 2021 and is looking to surpass these targets by producing 10,000oz gold in Q1, 2022. 

To find out more, go to the Golden Minerals Website