SOURCE: Golden Minerals Company

Golden Minerals Company

February 17, 2011 17:28 ET

Golden Minerals Reports 2010 Year-End Results

GOLDEN, CO--(Marketwire - February 17, 2011) - Golden Minerals Company (NYSE Amex: AUMN) (TSX: AUM) ("Golden Minerals" or "the Company") today announced 2010 year-end results.

For the period January 1, 2010 through December 31, 2010, Golden Minerals recorded a total net loss of $33.3 million. The Company recorded $11.2 million in revenue, primarily associated with a Management Agreement with Sumitomo Corporation under which the Company provided certain management services with respect to the San Cristóbal Mine. The Management Agreement was terminated effective June 30, 2010. Revenue was offset by $2.6 million for cost of services associated with the San Cristóbal Management Agreement, $13.4 million in exploration expense, $15.8 million for costs and expenses associated with the El Quevar project, and $11.9 million in administrative expense and stock based compensation.

At December 31, 2010 Golden Minerals' aggregate cash and short-term investments totaled $121.6 million of cash and cash equivalents and $0.6 million of short-term investments. The increase in cash and short-term investments during 2010 resulted primarily from the receipt of approximately $143.5 million in net proceeds from the issuance of the Company's common stock in two separate public offerings and two separate private placements, proceeds of $8.7 million, net of expenses and taxes, from fees and performance bonuses related to the Management Agreement with Sumitomo, and proceeds of approximately $1.4 million from royalties, interest and other asset dispositions, partially offset by $20.5 million of expenditures during 2010 on the initial feasibility work at the El Quevar project, $22.0 million of expenditures on exploration and general and administrative activities, and other changes in working capital.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the advancement of its pipeline of exploration projects in Mexico and South America. The Company has a large portfolio of exploration projects, including the feasibility stage El Quevar project in the Salta Province of northwestern Argentina and advanced stage drilling projects in Mexico and Peru. The Company's experienced management team has proven in house ability to explore, develop and operate mining projects.


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

                                        The Period  The Period
                                         March 25,  January 1,
                             The Year      2009        2009      The Year
                              Ended       Through     Through     Ended
                           December 31, December 31, March 24, December 31,
                               2010        2009        2009        2008
                            ----------  ----------  ----------  ----------
                                  (Successor)           (Predecessor)
                                 (in thousands except per share data)
Revenue:
  Management service fees   $   11,216  $   11,067  $    1,350  $    5,400
Costs and expenses:
  Costs of services             (2,566)     (3,751)          -           -
  Exploration expense          (13,353)    (12,617)     (3,482)    (25,397)
  El Quevar project expense    (15,755)          -           -           -
  Administrative expense        (8,600)     (8,430)     (4,779)    (17,348)
  Stock based compensation      (3,281)     (1,666)     (2,717)     (2,852)
  (Impairment) reversal of
   impairment of long live
   assets                          873      (1,687)          -           -
  Other operating income,
   net                             311       1,043           -           -
  Depreciation, depletion
   and amortization             (1,095)       (626)       (102)       (527)
                            ----------  ----------  ----------  ----------
     Total costs and
      expenses                 (43,466)    (27,734)    (11,080)    (46,124)
                            ----------  ----------  ----------  ----------
  Loss from operations         (32,250)    (16,667)     (9,730)    (40,724)
Other income and expenses:
  Interest and other income        178         260       1,010       5,553
  Royalty income                   314         399          88         351
  Interest and other
   expense                           -           -        (345)    (15,848)
  Loss on foreign currency         (89)        (69)        (13)        (32)
  Gain on extingushment of
   debt                              -           -     248,165           -
  Loss on auction rate
   securities                        -      (2,199)       (828)    (16,263)
  Reorganization costs, net          -      (1,032)     (3,683)     (2,153)
  Fresh start accounting
   adjustments                       -           -       9,122           -
                            ----------  ----------  ----------  ----------
     Other total income and
      expenses                     403      (2,641)    253,516     (28,392)
                            ----------  ----------  ----------  ----------
  Income (loss) from
   continuing operations
   before income taxes         (31,847)    (19,308)    243,786     (69,116)
  Income taxes                  (1,427)       (968)       (165)       (618)
                            ----------  ----------  ----------  ----------
  Net income (loss) from
   continuing operations       (33,274)    (20,276)    243,621     (69,734)
Loss from discontinued
 operations                          -           -      (4,153)   (166,625)
                            ----------  ----------  ----------  ----------
  Net income  (loss)        $  (33,274) $  (20,276) $  239,468  $ (236,359)
     Net (income) loss
      attributable to
      noncontrolling
      interest              $        -  $        -  $   (7,869) $  118,122
                            ----------  ----------  ----------  ----------
     Net income (loss)
      attributable to the
      Successor/Predecessor
      stockholder's         $  (33,274) $  (20,276) $  231,599  $ (118,237)
                            ----------  ----------  ----------  ----------
Other comprehensive gain
 (loss):
  Unrealized gain (loss) on
   securities               $       11  $      154  $      940  $     (441)
                            ----------  ----------  ----------  ----------
  Comprehensive income
   (loss) attributable to
   Successor/Predecessor
   stockholder's            $  (33,263) $  (20,122) $  232,539  $ (118,678)
                            ==========  ==========  ==========  ==========
Net income (loss) per
 Common/Ordinary Share -
 basic

  Income (loss) from
   continuing operations
   attributable to the
   Successor/Predecessor
   stockholders             $    (3.72) $    (6.78) $     4.13  $    (1.18)
  Income (loss) from
   discontinued operations
   attributable to the
   Successor/Predecessor
   stockholders                      -           -       (0.20)      (0.82)
                            ----------  ----------  ----------  ----------
  Income (loss)
   attributable to the
   Successor/Predecessor
   stockholders             $    (3.72) $    (6.78) $     3.93  $    (2.01)
                            ==========  ==========  ==========  ==========
Net income (loss) per
 Common/Ordinary Share -
 diluted

  Loss from continuing
   operations attributable
   to the
   Successor/Predecessor
   stockholders             $    (3.72) $    (6.78) $    (0.06) $    (1.18)
  Loss from discontinued
   operations attributable
   to the
   Successor/Predecessor
   stockholders                      -           -       (0.17)      (0.82)
                            ----------  ----------  ----------  ----------
  Loss attributable to the
   Successor/Predecessor
   stockholders             $    (3.72) $    (6.78) $    (0.23) $    (2.01)
                            ==========  ==========  ==========  ==========
Weighted average Common
 Stock/Ordinary Shares
 outstanding - basic         8,947,739   2,989,562  59,000,832  58,947,025
                            ==========  ==========  ==========  ==========
Weighted average Common
 Stock/Ordinary Shares
 outstanding - diluted       8,947,739   2,989,562  69,171,400  58,947,025
                            ==========  ==========  ==========  ==========




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

                                                December 31,  December 31,
                                                    2010          2009
                                                ------------  ------------
                                                  (in thousands, except
                                                        share data)
Assets
Current assets
  Cash and cash equivalents                     $    120,990  $      8,570
  Investments                                            601           444
  Trade receivables                                        -         1,460
  Prepaid expenses and other assets                    1,695         2,087
                                                ------------  ------------
    Total current assets                             123,286        12,561
Property, plant and equipment, net                    10,139         7,774
Assets held for sale                                   1,795           813
Prepaid expenses and other assets                        398           552
                                                ------------  ------------
    Total assets                                $    135,618  $     21,700
                                                ============  ============
Liabilities and Equity (Deficit)
Current liabilities
  Accounts payable and other accrued
   liabilities                                  $      2,931  $      2,428
  Other current liabilities                               67            63
                                                ------------  ------------
    Total current liabilities                          2,998         2,491
Other long term liabilities                              802           651
                                                ------------  ------------
    Total liabilities                                  3,800         3,142
                                                ------------  ------------
Commitments and contingencies
Equity
    Common stock; 50,000,000 shares authorized;
     15,124,567 and 3,238,615 shares, net of
     3,885 treasury shares, issued and
     outstanding, respectivly                            152            32
  Additional paid in capital                         185,051        37,854
  Accumulated deficit                                (53,550)      (20,276)
  Accumulated other comprehensive income                 165           154
                                                ------------  ------------
    Parent company's shareholder's equity            131,818        17,764
    Noncontrolling interest in subsidiaries                -           794
                                                ------------  ------------
    Total equity                                     131,818        18,558
                                                ------------  ------------
    Total liabilities and equity                $    135,618  $     21,700
                                                ============  ============

Contact Information

  • For additional information please visit http://www.goldenminerals.com/ or
    contact:
    Golden Minerals Company
    Jerry W. Danni
    Executive Vice President
    (303) 839-5060