Golden Minerals Company (NYSE-A:AUMN, TSX:AUMN, ETR:7GB) has reported increased revenue and a narrowed loss for fiscal 2021, a year which also saw the miner increase the life of its producing Rodeo gold-silver mine in Mexico.
For the 12 months to December 31, 2021, Golden Minerals saw revenue come in at US$25.6 million boosted by the sale of precious metals from Rodeo, up from US$5.6 million in 2020 when revenue was only attributable from the lease of the company' oxide plant to Hecla Mining.
The company's net operating margin - namely revenue minus the cost of metals sold - for the year was US$12.3 million versus US$3.6 million in 2020, while its net loss was US$2.1 million, down from a loss of US$9.1 million in 2020.
The company ended 2021 with no debt and US$12.2 million in cash, compared to US$9.7 million in cash on December 31, 2020.
Production began at Rodeo in January 2021 and the mine generated 14,400 ounces of gold and 59,900 ounces of silver in the year. In October last year, the firm completed a 5,648 metre (m), 82-hole drill program, which extended the life of mine by six months through to the third quarter of 2023.
READ: Golden Minerals says technical report for Velardena mine project pegs pre-tax net present value at US$119M
The company's Velardeña project is being advanced for a potential re-start of output in 2022 though no decision has been made yet, and on March 22 this year, the company reported that an NI 43-101 report had pegged the property as having an 11-year mine life and a pre-tax net present value (NPV) of US$119 million.
Elsewhere, Golden Minerals conducted a phase two drill program, for 3,949m, during the fourth quarter of 2021 at its Yoquivo gold-silver project that explored the Pertenencia, Esperanza and Dolar vein system.
Strong results were reported in January this year, including the discovery of a new vein and expansion of the known mineralized footprint of multiple other veins.
The same month, the firm reported the discovery of a new gold system at its Sarita Este property in Salta, Argentina from an initial 10 hole drill program. The company has now submitted permits for trenching and additional drilling that it plans to complete in 2022.
At its Rodeo mine this year, the company is forecasting payable production of between 12,000 and 14,000 ounces of gold and between 42,000 and 47,000 ounces of silver, with average plant throughput of 500 tonnes per day (tpd) and a net operating margin of between US$7 and US$9 million. That assumes realized metals prices of US$1,800 per ounce of gold and US$25 per ounce of silver.
Also in 2022, Golden Minerals expects to receive US$2 million from Fabled Silver Gold Corp reflecting the third and final installment related to the sale of the Santa Maria property.
The company forecasts spending at around US$10.2 million in the year, not including the cost of metals sold at Rodeo and a positive decision on the start-up of the Velardena operation. The spending includes US$4.1 million on exploration and property holding costs related to its portfolio of assets in Mexico, Argentina and Nevada, including project assessment and evaluation costs relating to additional exploration at Rodeo, Yoquivo, and other properties.
Golden Minerals is focused on producing gold and silver from its Rodeo mine and advancing its Velardeña properties in Mexico and, through partner-funded exploration, its El Quevar silver property in Argentina, and acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.
Contact the author at giles@proactiveinvestors.com