Golden Minerals Reports Year‐end 2017 Results
Page 1 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
4265123.1
GOLDEN MINERALS REPORTS YEAR‐END 2017 RESULTS
GOLDEN, CO ‐ /GLOBE NEWSWIRE/ ‐ March 1, 2018 – Golden Minerals Company (“Golden Minerals”,
“Golden” or the “Company”) (NYSE American and TSX: AUMN) has today announced financial results for
the full year ending December 31, 2017.
2017 Financial Highlights
Cash and equivalents $3.3 million as of December 31, 2017, $0.7 million higher than the $2.6
million on hand as of December 31, 2016
Received $1.0M in February 2018 for an amendment of the Celaya farm‐out agreement
Zero debt, unchanged from year end 2016
Loss from operations narrowed by 39 percent to $3.9 million in 2017 from $6.3 million in 2016
Net loss narrowed by 63 percent to $3.9 million in 2017 from $10.7 million in 2016
Revenue of $6.7 million and operating margin of $4.5 million from the lease of Velardeña’s oxide
plant to Hecla Mining Company (“Hecla”), compared to $6.4 million and $4.4 million, respectively,
in 2016
Received $1.9 million net cash from Hecla in exchange for granting an option to extend the lease
of our oxide plant through 2020
Generated an additional $2.6 million cash from the sale and farm‐out of non‐strategic properties
and equipment and from Argentina tax refunds, and raised an additional $0.7 million from the
issuance of common stock through the Company’s ATM program
Business Summary
Oxide Mill Lease
2017 marked the second full year of the Company’s lease to Hecla of its oxide mill located at the Velardeña
Properties in Durango State, Mexico. In August, Golden granted Hecla an option to extend the lease for
an additional period of up to two years past the then‐current expiration date of December 31, 2018, in
exchange for a $1.0 million cash payment and the purchase of $1.0 million, or approximately 1.8 million
shares, of the Company’s common stock. Hecla must exercise the option to extend the lease no later than
October 3, 2018.
During 2017, Hecla processed approximately 131,000 tonnes of material through the plant, resulting in
total revenue to Golden of approximately $6.7 million, which was comprised of approximately $3.0 million
for direct plant charges, plus fixed fees and other net reimbursable costs totaling approximately $3.7
Page 2 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
million. Golden incurred expenses of approximately $2.1 million related to the services it provides under
the lease, resulting in a net operating margin of $4.5 million.
El Quevar
In the third quarter 2017, the Company began a re‐modeling project designed to identify a smaller
but higher ‐grade mineral resource within the Yaxtché deposit, an area representing a two ‐
kilometer strike length located within the much larger 57,000 ‐hectare El Quevar project. In
support of this effort, the Company retained Amec Foster Wheeler E&C Services, Inc, a Wood Group
PLC company (“Wood”), to complete an updated Mineral Resource estimate in accordance with
Canadian National Instrument 43‐101 (“NI 43‐101”). The estimate is based on the same drilling
data as the 2012 technical report prepared by RPMGlobal (formerly Pincock Allen & Holt; “RPM”)
but uses updated geologic controls and a modeling approach designed to delineate the higher ‐
grade mineralization. The results of that project were presented in a recent news release dated
February 28, 2018 that highlighted an updated NI 43‐101 mineral resource at El Quevar consisting of 2.6M
tonnes of indicated sulfide material at 487 grams per tonne (“gpt”) silver and 0.3 M tonnes of inferred
sulfide material at 417 gpt silver based on a 250 gpt silver cutoff grade. The new resource is in an
underground minable setting. See the section of this release entitled El Quevar Resource Estimate
Information for additional details.
In the next several months, Golden plans to proceed with a Preliminary Economic Assessment that will
use the new Yaxtché resource as a basis. The Company plans to advance El Quevar as much as possible
within the limits of its current exploration budget, and remains open to finding a partner to contribute to
the funding of further exploration and development.
Santa Maria
Through the end of 2017, Golden drilled 14 holes totaling approximately 3,300 meters and received
completed assay results showing mineralized intercepts in most of the holes. The Company increased the
drill program from an original 2,000 meters to about 4,800 meters due to geologic complexity along the
eastern extension and newly encountered mineralization on the western extension of the vein system.
Based on the results of the 2017 drilling program, the Company anticipates being able to increase the size
of the existing resource estimate, although the extent of that increase has not yet been determined.
Golden is continuing to drill in 2018 and has completed 1,000 meters in five drill holes. The Company will
likely complete another 500 meters in three additional drill holes before completing the program, after
which all drill results will be reviewed and the existing mineral resource and PEA updated.
Page 3 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
Celaya Farm‐out
In February 2018, Golden amended the agreement with Electrum Global Holdings L.P. (“Electrum”) to
permit Electrum to earn, at its option, an additional 20 percent interest in the project in exchange for a
$1.0 million payment. Electrum can now increase its total interest in the project to 80 percent by
contributing 100 percent of the $2.5 million of additional expenditures required in the second three‐year
earn‐in period. Following this second earn‐in period (after $5.0 million total is spent from inception),
Golden will have the right to maintain its 20 percent interest in the project or may elect to convert to a
carried 10 percent net profits interest.
Electrum has reported completing 12,400 meters of drilling on the property in 15 holes, with drilling
ongoing. Results to date show intercepts of epithermal quartz vein mineralization with grades for gold,
silver, lead and zinc that warrant further drill testing. In eight of the 14 holes assayed to date, intercepts
of quartz vein material carry gold and silver grades that are within the range of economic interest, if
sufficient volumes can be found in a configuration amenable to exploitation.
Mogotes
In the fourth quarter 2017 the Company completed a 2,580‐meter, 8‐hole drill program at its Mogotes
property located seven kilometers from the town of Velardeña in Durango State, Mexico. Results showed
low grade gold mineralization in two of the holes. The epithermal system appears to be more deeply
centered than the surface geochemical values initially indicated. Additional targeting work is being carried
out on the Mogotes claims including geologic mapping and sampling focused on several outcropping veins
in the northern portion of the claims and on the Company’s adjacent Pistachon claim, part of the Chicago
mine holdings.
Financial Results
The Company reported revenue of $6.7 million and a net operating margin of $4.5 million in 2017,
compared to $6.4 million and $4.4 million in 2016, respectively. Both are wholly attributable to the lease
of the Company’s Velardeña oxide plant to Hecla. Additionally, the Company recorded approximately $2.1
million in other operating income in 2017, or $0.3 million more than in 2016. The 2017 amount consists
primarily of net gains on the sales of varied fixed assets and non‐strategic exploration properties, and
includes approximately $0.1 million of the $1.0 million lease option extension payment received from
Hecla in August 2017. The remaining $0.9 million has been recorded as deferred revenue and will be
amortized to other operating income through December 31, 2020.
Total expenses of approximately $10.6 million in 2017 were $2.2 million or 17 percent lower than the
$12.7 million of total expenses recorded in 2016. Reductions were seen in areas including Velardeña care
Page 4 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
and maintenance, exploration expense and administrative expense. El Quevar project expense increased
by $0.3 million to $0.8 million in 2017, reflecting work around the re‐modeling project begun in the second
half of the year.
Loss from operations was $3.9 million in 2017, improving by 39 percent compared to a loss from
operations of $6.3 million in 2016. The Company reported a net loss of $3.9 million in 2017, compared to
a net loss of $10.7 million in 2016. Included in the 2016 net loss were non‐cash derivative losses of $2.5
million related to the Company’s warrants and to a now‐retired loan from The Sentient Group. Due to an
accounting principle change (See Note 3 in the Company’s 10‐K report for full details), the Company had
no warrant derivative gain or loss in 2017. Also included in the 2016 net loss was a $1.7 million non‐cash
loss associated with the extinguishment of The Sentient Group loan. The loan was retired in 2016 so there
was no comparable figure in 2017.
Cash and Financial Outlook
The Company reported a cash and equivalents balance of $3.3 million at year end 2017, $0.7 million higher
than the $2.6 million on hand at year end 2016. Cash inflows during 2017 totaled $9.7 million and included
the following:
• $4.5 million of net operating margin from the oxide plant lease
• $1.9 million from Hecla for the option to extend the oxide plant lease for an additional
period of up to two years
• $1.1 million in refunds of previous VAT payments made in Argentina during 2012 and 2013
• $1.0 million related to the sale of excess mining equipment and varied nonstrategic
exploration properties
• $0.7 million of net proceeds received from the issuance of common stock under the ATM
Program
• $0.5 million from the farm out of certain nonstrategic mineral claims to Santacruz
Cash expenditures during 2017 totaled $9.0 million and included the following:
• $3.1 million in exploration expenditures, including costs related to drilling at Santa Maria and
Mogotes
• $1.6 million in care and maintenance costs at the Velardeña Properties
• $0.8 million in evaluation activities, care and maintenance and property holding costs at El
Quevar
• $3.5 million in general and administrative expenses
Page 5 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
In addition to the $3.3 million cash balance at December 31, 2017, during 2018 Golden expects to receive
approximately $4.6 million in net operating margin from the oxide plant lease and $0.7 million from
Santacruz related to the Zacatecas farm‐out. In February 2018, the Company received $1.0 million from
Electrum related to an amendment of the Celaya farm out agreement. If no additional sales of common
stock under the ATM program occur, Golden projects it would end 2018 with a cash balance of $1.5 million
based on the following forecasted expenditures during 2018:
Approximately $2.0 million on exploration activities and property holding costs, including
project assessment and evaluation costs related to Santa Maria, Yoquivo and other properties
Approximately $1.5 million at the Velardeña Properties for care and maintenance
• Approximately $1.0 million at El Quevar to fund ongoing exploration and evaluation activities,
care and maintenance and property holding costs
• Approximately $3.4 million on general and administrative costs
• Approximately $0.2 million on other working capital
Additional information regarding full year 2017 financial results may be found in the Company’s Annual
Report on Form 10‐K 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, and on advancing its El Quevar project located in Salta, Argentina.
El Quevar Resource Estimate Information
Wood is an independent engineering consultancy. Mr. Gordon Seibel, RM SME, a Principal Geologist with
Wood, reviewed and approved the portions of this press release regarding the new Mineral Resource
estimates and data verification.
The drill data supporting the Mineral Resource estimate were collected between 2006 and 2011, and
there has been no drilling on the property since 2011. Qualified Persons from independent engineering
consulting firm Pincock Allen and Holt (PAH) and now part RPMGlobal visited the site during the 2011 drill
program. PAH observed and interviewed Golden Minerals personnel in the procedures of core handling,
sampling, logging and sample security that were performed at the Golden Minerals base camp. PAH
concluded that the drilling density, core recovery, and drill hole location surveying were industry standard
and acceptable for use in resource estimation.
Page 6 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
PAH also reviewed sample preparation procedures, assaying methods and QA/QC protocols when all drill
results were available. PAH noted that overall the sample preparation, analysis and security are industry
standard and would not introduce a general bias into resource estimation.
Wood independently compiled the assay data directly from the assay laboratories and compared the data
to the database supplied by Golden Minerals which included all of the drill data that had previously been
verified by PAH. Wood considers the database to be acceptable to support Mineral Resource estimation.
The technical contents of this press release have been reviewed and approved by Warren M. Rehn, M.Sc.,
a Qualified Person for the purposes of NI 43‐101. Mr. Rehn has over 33 years of mineral exploration
experience and is a QP member (01449QP) of the Mining and Metallurgical Society of America. Mr. Rehn
is President, Chief Executive Officer and a Director of Golden Minerals Company.
The resource estimate is preliminary in nature and includes Inferred mineral resources that are considered
too speculative geologically to have the economic considerations applied to them that would enable them
to be categorized as mineral reserves.
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 its duration; future activities at El Quevar, including the timing of a PEA based
on the new Yaxtché resource, the likelihood of future expansion of the deposit, and the possibility of
future development; expectations related to our Santa Maria property, including planned exploration
and other evaluation work and the possibility of increasing the size of the existing resource estimate; and
statements regarding our financial outlook, including anticipated 2018 income and expenditures, and our
estimated year‐end cash balance. 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, the reasonability
of the economic assumptions at the basis of the Santa Maria PEA, changes in interpretations of geological,
geostatistical, metallurgical, mining or processing information and interpretations of the information
resulting from future exploration, analysis or mining and processing experience; new information from
drilling programs or other exploration or analysis; unexpected variations in mineral grades, types and
metallurgy; fluctuations in silver and gold metal prices; failure of mined material or veins mined to meet
expectations; 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
Page 7 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
Minerals may be found in the periodic and current reports filed with the SEC by Golden Minerals, including
the Company’s Annual Report on Form 10‐K for the year ended December 31, 2017.
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
Page 8 of 9
GOLDEN MINERALS COMPANY
350 Indiana Street – Suite 800 – Golden, Colorado 80401 – Telephone (303) 839-5060 – Fax (303) 839-5907
GOLDEN MINERALS COMPANY
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
Assets
Current assets
Cash and cash equivalents $3 , 2 5 0 $ 2,588
Short‐term investments 238 334
Lease receivables 314 380
Inventories, net 242 245
Value added tax receivable, net 148 5
Related party receivable — 643
Prepaid expenses and other assets 745 578
Total current assets 4,937 4,773
Property, plant and equipment, net 8,140 9,235
Total assets $ 13,077 $ 14,008
Liabilities and Equity
Current liabilities
Accounts payable and other accrued liabilities $1 , 5 5 6 $ 1,224
Deferred revenue, current 293 —
Other current liabilities 9 24
Total current liabilities 1,858 1,248
Asset retirement and reclamation liabilities 2,495 2,434
Deferred revenue, non‐current 600 —
Warrant liability ‐ related party — 976
Warrant liability — 922
Other long term liabilities 43 66
Total liabilities 4,996 5,646
Commitments and contingencies
Equity
Common stock, $.01 par value, 200,000,000
shares authorized; 91,929,709 and 89,020,041
shares issued and outstanding, respectively
919 889
Additional paid in capital 516,284 495,455
Accumulated deficit (509,082) (488,037)
Accumulated other comprehensive (loss) income (40) 55
Shareholders' equity 8,081 8,362
Total liabilities and equity $1 3 , 0 7 7 $ 14,008
December 31, December 31,
2017 2016
(in thousands, except share data)