Golden Minerals Reports Second Quarter 2017 Results
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
4375818.1
GOLDEN MINERALS REPORTS SECOND QUARTER 2017 RESULTS
GOLDEN, CO, August 8, 2017 (GLOBE NEWSWIRE) ‐‐ Golden Minerals Company (“Golden Minerals”,
“Golden” or “the Company”) (NYSE American and TSX: AUMN) today announced financial results for the
second quarter ended June 30, 2017 and provided a 12‐month financial outlook.
Highlights
Cash and cash equivalents balance of (US) $2.7 million as of June 30, 2017, compared to $2.1
million as of March 31, 2017 and $2.6 million as of December 31, 2016
Additional $2.0 million cash to be received in August 2017 from Hecla Mining Company (“Hecla”)
as consideration for granting Hecla a lease extension option, including $1.0 million already
received for granting the option and an additional $1.0 million to be received before the end of
August in exchange for the issuance of approximately 1.8 million shares of Company common
stock
Cash balance forecasts of approximately $4.0 million at December 31, 2017 and $3.0 million at
June 30, 2018
$0.2 million in net proceeds received during the second quarter 2017 from the issuance of
common stock under the Company’s At the Market (“ATM”) program
Revenue of $1.7 million and net operating margin (oxide plant lease revenue less lease costs) of
$1.1 million related to the lease of the Company’s oxide plant in the second quarter 2017,
compared to revenue of $1.6 million and net operating margin of $1.1 million related to the oxide
plant lease in the second quarter 2016
Loss from operations of $0.5 million in the second quarter 2017 compared to a loss from
operations of $2.6 million in the second quarter 2016
Insignificant net loss of $0.04 million in the second quarter 2017, including a non‐cash derivative
gain of $0.4 million related to the Company’s warrants, compared to a net loss of $3.9 million in
the second quarter 2016 that included non‐cash derivative losses of $1.2 million related to the
Company’s warrants and convertible note
Zero debt
Second Quarter Financial Results
The Company reported revenue of approximately $1.7 million in the second quarter 2017 related to the
oxide plant lease and costs of approximately $0.5 million related to the services we provide under the
lease, for a net operating margin of $1.1 million. The Company also recorded other operating income of
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
$0.7 million during the second quarter, related primarily to approximately $0.2 million for a refund of
Argentina value added tax paid in prior years and $0.5 million from the sale of certain non‐strategic assets
and exploration properties. Golden Minerals also issued approximately 370,000 shares of common stock
through its ATM program at an average price of $0.64 per share during the second quarter 2017, resulting
in net proceeds to the Company of approximately $0.2 million. For the six‐month period ended June 30,
2017, the Company has sold approximately 1.0 million shares of common stock and received
approximately $0.7 million in net proceeds from the ATM program.
Exploration expense of $0.5 million during the second quarter 2017 was related primarily to work at the
Santa Maria, Rodeo, and other properties as well as holding costs and allocated administrative expenses,
compared to $1.2 million for the three months ended June 30, 2016. Exploration expense for both years
was incurred primarily in Mexico, and the higher 2016 expense was due primarily to test mining activity
at Santa Maria as well as drilling at the San Luis del Cordero property. Velardeña shutdown and care and
maintenance costs were $0.4 million in the second quarter 2017 compared to $0.5 million in the year ago
period. These costs relate to care and maintenance at the Company’s Velardeña Properties as a result of
the suspension of mining activity that occurred in November 2015. Administrative expenses were $0.9
million in the second quarter 2017 compared to $1.0 million in the second quarter 2016. Administrative
expenses include costs associated with being a publicly‐traded company, and are incurred primarily
through corporate activities in support of the Velardeña Properties, El Quevar and the Company’s
exploration portfolio.
Golden reported a net loss of $0.04 million in the second quarter 2017 compared to a net loss of $3.9
million in the year ago period. The 2017 figure includes a $0.4 million non‐cash gain related to a decrease
in the fair value of the liability recorded for warrants to acquire the Company’s common stock. The 2016
figure includes non‐cash losses of $1.1 million related to the Company’s warrants and $0.1 million related
to an increase in the fair value of the derivative liability associated with a convertible note that has since
been retired.
12‐Month Financial Outlook
In addition to the $2.7 million cash balance at June 30, 2017, in July 2017 the Company received
approximately $0.2 million from the refund of prior years’ value added taxes related to activities at the El
Quevar project in Argentina. In August 2017, Golden expects to receive $2.0 million from Hecla as
consideration for granting Hecla an option to extend the lease of the Company’s oxide plant for an
additional two years, through December 31, 2020, including $1.0 million already received for granting the
option and an additional $1.0 million to be received before the end of August in exchange for the issuance
of approximately 1.8 million shares of Company common stock. Looking forward, during the next 12
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
months, Golden also expects to receive approximately $4.8 million in net operating margin from the lease
of the oxide plant plus $0.8 million from the farm out of certain non‐strategic mineral claims in Zacatecas,
Mexico to Santacruz Silver Mining Ltd. With the transactions referred to above and if no additional sales
of common stock under the Company’s ATM program occur, Golden projects it would end 2017 with a
cash balance of approximately $4.0 million and end June 30, 2018 with a cash balance of approximately
$3.0 million, based on the following forecasted expenditures during the next 12 months:
$2.0 million on exploration activities and property holding costs related to exploration properties
located primarily in Mexico, including project assessment and development costs related to the
Santa Maria, Rodeo and other properties;
$1.5 million at the Velardeña Properties for care and maintenance;
$0.5 million on El Quevar maintenance activities and property holding costs; and
$3.5 million on general and administrative costs
Additional information regarding second quarter 2017 financial results may be found in the Company’s
10‐Q Quarterly Report which is available on the Golden Minerals website at www.goldenminerals.com.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused
on acquiring and advancing mining properties in Mexico with emphasis on areas near its Velardeña
processing plants.
Forward‐Looking Statements
This press release contains forward‐looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended,
and applicable Canadian securities legislation, including statements relating to expectations regarding the
oxide plant lease including, revenues and receipt of full payment under the recently granted lease
extension option, and statements regarding our financial outlook for the remainder of 2017 and through
the end of the second quarter 2018, including anticipated income and expenditures for those periods.
These statements are subject to risks and uncertainties, including lower than anticipated revenue from
the oxide plant lease as a result of delays or problems at the third party’s mine or the oxide plant, earlier
than expected termination of the lease or other causes, fluctuations in silver and gold metal prices,
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
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
found in the periodic and current reports filed with the Securities and Exchange Commission by Golden
Minerals, including the Company’s Annual Report on Form 10‐K for the year ended December 31, 2016.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839‐5060
SOURCE: Golden Minerals Company
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
GOLDEN MINERALS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 2,726 $ 2,588
Short-term investm ents 231 334
Trade receivables 473 380
Inventories, net 281 245
V alue added tax receivable, net 185 5
Related party receivable — 643
Prepaid ex penses and other assets 650 578
Total current assets 4,546 4,773
Property, plant and equipment, net 8,709 9,235
Total assets $ 13,255 $ 14,008
Liab ilities and E q uity
Current liabilities
Accounts payable and other accrued liabilities $ 1,400 $ 1,224
Other current liabilities 26 24
Total current liabilities 1,426 1,248
As s et retirement and reclamation liabilities 2,402 2,434
Warrant liability - related party 813 976
Warrant liability 721 922
Other long term liabilities 55 66
Total liabilities 5,417 5,646
Com m itm ents and contingencies
Equity
Common stock, $.01 par value, 200,000,000 and
100,000,000 shares authorized; 90,031,347 and
89,020,041 shares issued and outstanding,
respectively
899 889
Additional paid in capital 496,194 495,455
Accumulated deficit (489,207) (488,037)
Accum ulated other com prehensive (loss) incom e (48) 55
Shareholders' equity 7,838 8,362
Total liabilities and equity $ 13,255 $ 14,008
June 30, December 31,
2017 2016
(in thousands, except share data)
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GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
GOLDEN MINERALS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Expressed in United States dollars) (Unaudited)
(1) Potentially dilutive shares have not been included because to do so would be anti‐dilutive.
Revenue:
Ox ide plant lease $ 1,692 $ 1,576 $ 3,336 $ 3,039
Total revenue 1,692 1,576 3,336 3,039
Cos ts and expe ns es :
Ox ide plant lease costs (548) (455) (1,085) (929)
Ex ploration ex pense (457) (1,162) (991) (1,938)
El Quevar project ex pense (192) (210) (341) (373)
V elardeña shutdown and care and
m aintenance costs (369) (546) (719) (1,133)
Adm inistrative ex pense (872) (1,026) (1,898) (2,244)
Stock based com pensation (242) (539) (307) (571)
Reclamation ex pense (48) (46) (97) (97)
Other operating incom e, net 705 205 862 244
Depreciation and amortization (130) (421) (318) (971)
Total costs and ex penses (2,153) (4,200) (4,894) (8,012)
Loss from operations (461) (2,624) (1,558) (4,973)
Other income and (expense):
Interest expense — (72) — (515)
Interest and other incom e 4 32 22 35
Warrant derivative gain (loss) 425 (1,096) 363 (2,276)
Derivative loss — (130) — (778)
G ain (loss) on debt ex tinguishm ent — 13 — (1,653)
(Loss) gain on foreign currency (3) (38) 3 (42)
Total other incom e (ex pense) 426 (1,291) 388 (5,229)
Loss from operations before income tax es (35) (3,915) (1,170) (10,202)
Incom e tax benefit — 26 — 26
Net loss $ (35) $ (3,889) $ (1,170) $ (10,176)
Comprehensive loss, net of tax:
Unrealized (loss) gain on securities (51) 89 (103) 171
Com prehensive loss $ (86) $ (3,800) $ (1,273) $ (10,005)
Net loss per common share — basic
Los s $ - $ (0.05) $ (0.01) $ (0.14)
Weighted average Common Stock
outstanding - basic (1) 89,618,677 82,817,778 89,485,223 74,343,257
(in thousands except per share data) (in thousands, except per share data)
T hree Months E nded Six Months E nded
June 30, June 30,
2017 2016 2017 2016