SOURCE: Golden Minerals Company

Golden Minerals Company

February 22, 2010 08:00 ET

Golden Minerals Reports 2009 Year-End Results

GOLDEN, CO--(Marketwire - February 22, 2010) - Golden Minerals Company ("Golden Minerals" or the "Company") (TSX: AUM) (PINKSHEETS: GDMN) today announced 2009 year-end results.

2009 Financial Results

For the period March 25, 2009 through December 31, 2009, Golden Minerals recorded a total net loss of $20.3 million, which included among other items, $7.3 million in revenue net of associated costs for management services; interest, royalties and other income of $1.4 million; and a net gain on the disposal of assets of $0.3 million. These items were offset during the period by an impairment of long lived assets of $1.7 million, $8.4 million of administrative expense, $1.0 million of reorganization costs, $12.6 million of exploration expense, and a loss of $2.2 million on the sale of the Company's remaining ARS investments.

At December 31, 2009 Golden Minerals' aggregate cash and short-term investments totaled $9.0 million, including $8.6 million of cash and cash equivalents and $0.4 million of short term investments. During the period March 25, 2009 through December 31, 2009, Golden Minerals received $3.7 million in proceeds from the sale of assets, including the sale of an office building in Bolivia for $0.7 million and the sale of three mining claims and a 49% joint venture interest in Mexico for $3.0 million. During this period the Company also received $3.4 million from the sale of investments, including the sale of the Company's remaining ARS investments for $3.0 million.

Recent Developments

In January 2010, the Company completed a transaction with MH Argentina S.A., a wholly owned subsidiary of Hochschild, pursuant to which Golden Minerals acquired Hochschild's 35% interest in Minera El Quevar, an Argentine company in which the Company held the other 65% interest. Minera El Quevar controls approximately 10,000 hectares of the 64,000 hectare El Quevar project, including the Yaxtché target area. The Company issued 400,000 shares of common stock, and warrants to acquire an additional 300,000 shares exercisable for three years at an exercise price of $15.00 per share.

In January 2010, Golden Minerals completed a private placement with The Sentient Group, an independent private equity firm in the global resources industry with approximately $1.3 billion under management. In the private placement, the Company sold to Sentient a total of 844,694 shares of its common stock at a price of Cdn$7.06 per share, resulting in gross proceeds to the Company of approximately $5.75 million. Sentient became Golden Minerals largest stockholder, holding 19.9% of the outstanding common stock, not including restricted stock held by employees.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its exploration projects and in providing mine management services. The Company has a portfolio of 30 exploration projects, primarily located in Argentina, Mexico and Peru, including the advanced stage El Quevar project in the Salta Province of northwestern Argentina. The Company's experienced management team has proven in house ability to explore, develop and operate mining projects. Golden Minerals operates the San Cristobal mine in Bolivia for Sumitomo Corporation under a Management Services Agreement.


                         GOLDEN MINERALS COMPANY
   CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
                  (Expressed in United States Dollars)


                          For The      For The
                          Period       Period
                         March 25,    January 1,
                           2009         2009      The Years Ended December
                          Through      Through               31,
                        December 31,  March 24,   ------------------------
                           2009         2009         2008         2007
                        -----------  -----------  -----------  -----------
                        (Successor)*       (Predecessor)*
                                     (in thousands except per
                                            share data)
Revenue:
  Management service
   fees                 $    11,067  $     1,350  $     5,400  $     5,400
Costs and expenses:
  Costs of services          (3,751)           -            -            -
  Exploration expense       (12,617)      (3,482)     (25,397)     (15,357)
  Administrative
   expense                   (8,430)      (4,779)     (17,348)     (17,664)
  Stock based
   compensation              (1,666)      (2,717)      (2,852)      (2,609)
  Depreciation,
   depletion and
   amortization                (626)        (102)        (527)        (533)
                        -----------  -----------  -----------  -----------
     Total costs and
      expenses              (27,090)     (11,080)     (46,124)     (36,163)
                        -----------  -----------  -----------  -----------
  Loss from operations      (16,023)      (9,730)     (40,724)     (30,763)

Other income and
 expenses:
  Interest and other
   income                     1,042        1,010        5,553       19,432
  Royalty income                399           88          351        1,319
  Interest and other
   expense                        -         (345)     (15,848)      (5,733)
  Gain on disposal of
   assets, net                  261            -            -            -
  Impairment of long
   lived assets              (1,687)           -            -            -
  Loss on foreign
   currency                     (69)         (13)         (32)         (48)
  Gain on extinguishment
   of debt                        -      248,165            -            -
  Loss on auction rate
   securities                (2,199)        (828)     (16,263)     (34,537)
  Reorganization
   costs, net                (1,032)      (3,683)      (2,153)           -
  Fresh start accounting
   adjustments                    -        9,122            -            -
                        -----------  -----------  -----------  -----------
     Other total income
      and expenses           (3,285)     253,516      (28,392)     (19,567)
                        -----------  -----------  -----------  -----------
  Income (loss) from
   continuing operations
   before income taxes      (19,308)     243,786      (69,116)     (50,330)
  Income taxes                 (968)        (165)        (618)        (879)
                        -----------  -----------  -----------  -----------
  Net income (loss)
   from continuing
   operations               (20,276)     243,621      (69,734)     (51,209)
Loss from discontinued
 operations                       -       (4,153)    (166,625)     (24,634)
                        -----------  -----------  -----------  -----------
  Net income  (loss)    $   (20,276) $   239,468  $  (236,359) $   (75,843)

     Net (income) loss
      attributable to
      noncontrolling
      interest          $         -  $    (7,869) $   118,122  $    87,399
                        -----------  -----------  -----------  -----------
  Net income (loss)
   attributable to the
   Successor/Predecessor
   stockholder's        $   (20,276) $   231,599  $  (118,237) $    11,556
                        -----------  -----------  -----------  -----------
Other comprehensive
 gain (loss):
  Unrealized gain (loss)
   securities           $       154  $       940  $      (441) $       (86)
                        -----------  -----------  -----------  -----------

  Comprehensive income
   (loss) attributable
   to
   Successor/Predecessor
   stockholder's        $   (20,122) $   232,539  $  (118,678) $    11,470
                        ===========  ===========  ===========  ===========

Net income (loss) per
 Common/Ordinary Share
 - basic

  Income (loss) from
   continuing operations
   attributable to the
   Successor/Predecessor
   stockholders         $     (6.78) $      4.13  $     (1.18) $     (0.87)

  Income (loss) from
   discontinued
   operations
   attributable to the
   Successor/Predecessor
   stockholders                   -        (0.20)       (0.82)        1.07
                        -----------  -----------  -----------  -----------
  Income (loss)
   attributable to the
   Successor/Predecessor
   stockholders         $     (6.78) $      3.93  $     (2.01) $      0.20
                        ===========  ===========  ===========  ===========

Net income (loss) per
 Common/Ordinary Share
 - diluted

  Loss from continuing
   operations
   attributable to the
   Successor/Predecessor
   stockholders         $     (6.78) $     (0.06) $     (1.18) $     (0.87)

  Loss from
   discontinued
   operations
   attributable to the
   Successor/Predecessor
   stockholders                   -        (0.17)       (0.82)        1.07
                        -----------  -----------  -----------  -----------
  Loss attributable to
   the
   Successor/Predecessor
   stockholders         $     (6.78) $     (0.23) $     (2.01) $      0.20
                        ===========  ===========  ===========  ===========
Weighted average
 Common Stock/Ordinary
 Shares outstanding -
 basic                    2,989,562   59,000,832   58,947,025   58,714,935
                        ===========  ===========  ===========  ===========
Weighted average
 Common Stock/Ordinary
 Shares outstanding -
 diluted                  2,989,562   69,171,400   58,947,025   58,714,935
                        ===========  ===========  ===========  ===========

* Note to the Financial Statements: Upon emergence from Chapter 11
  bankruptcy on March 24, 2009, Golden Minerals Company became the
  successor to Apex Silver Mines Limited for purposes of reporting under
  the U.S. federal securities laws. References in the financial statements
  presented in this press release to "Successor" refer to Golden Minerals
  Company and its subsidiaries on or after March 25, 2009, the day
  following emergence from Chapter 11. References to "Predecessor" refer
  to Apex Silver Mines Limited and its subsidiaries prior to
  March 25, 2009.





                         GOLDEN MINERALS COMPANY
                       CONSOLIDATED BALANCE SHEETS
                  (Expressed in United States Dollars)


                                          December 31,      December 31,
                                              2009              2008
                                         ---------------   ---------------
                                           (Successor)*    (Predecessor)*
                                         (in thousands, except share data)
Assets

Current assets
  Cash and cash equivalents              $         8,570   $        33,723
  Restricted cash                                      -            20,575
  Investments                                        444            16,351
  Trade receivables                                1,460             7,315
  Inventories                                          -            75,008
  Prepaid expenses and other assets                2,087            15,550
                                         ---------------   ---------------
    Total current assets                          12,561           168,522

Property, plant and equipment, net                 7,774           202,534

Assets held for sale                                 813                 -
Ore stockpile inventories                              -            72,628
Value added tax recoverable                            -           157,146
Investments                                            -             5,487
Prepaid expenses and other assets                    552                30
                                         ---------------   ---------------
    Total assets                         $        21,700   $       606,347
                                         ===============   ===============
Liabilities and Equity (Deficit)

Current liabilities
  Accounts payable and other accrued
   liabilities                           $         2,428   $        48,861
  Accrued interest payable                             -             8,660
  Other current liabilities                           63                 -
  Current portion of long term debt                    -           523,610
                                         ---------------   ---------------
    Total current liabilities                      2,491           581,131
Long term debt                                         -            59,951
Asset retirement obligation                            -             9,155
Other long term liabilities                          651             4,398
                                         ---------------   ---------------
    Total liabilities                              3,142           654,635
                                         ---------------   ---------------
Commitments and contingencies
Equity (deficit)
  Common stock, (Successor) $.01 par
   value, 50,000,000 shares authorized;
   3,238,615 shares issued and
   outstanding, net of 3,885 treasury
   shares                                             32                 -
  Ordinary Shares, (Predecessor) $.01 par
   value, 175,000,000 shares authorized;
   59,000,832 shares issued and
   outstanding                                         -               590
  Additional paid in capital                      37,854           680,901
  Accumulated deficit                            (20,276)         (880,020)
  Accumulated other comprehensive
   income (loss)                                     154              (551)
                                         ---------------   ---------------
    Parent company's shareholder's
     equity (deficit)                             17,764          (199,080)
    Noncontrolling interest in
     subsidiaries                                    794           150,792
                                         ---------------   ---------------
    Total equity (deficit)                        18,558           (48,288)
                                         ---------------   ---------------
    Total liabilities and equity
     (deficit)                           $        21,700   $       606,347
                                         ===============   ===============

* Note to the Financial Statements: Upon emergence from Chapter 11
  bankruptcy on March 24, 2009, Golden Minerals Company became the
  successor to Apex Silver Mines Limited for purposes of reporting under
  the U.S. federal securities laws. References in the financial statements
  presented in this press release to "Successor" refer to Golden Minerals
  Company and its subsidiaries on or after March 25, 2009, the day
  following emergence from Chapter 11.  References to "Predecessor" refer
  to Apex Silver Mines Limited and its subsidiaries prior to
  March 25, 2009.

For additional information please visit http://www.goldenminerals.com/ or contact:

Contact Information

  • Golden Minerals Company
    Jerry W. Danni
    (303) 839-5060
    Sr. Vice President, Corporate Affairs