Golden Minerals Company reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company recorded no revenue for both the three and nine months ended September 30, 2024, a stark decline from $2.5 million and $11.7 million, respectively, in the same periods of the previous year. This drop is attributed to the cessation of mining operations at the Velardeña properties in Mexico, which were halted in Q1 2024 due to underperformance.
Despite the lack of revenue, the company reported a net gain of $199,000 for the three months ended September 30, 2024, compared to a net loss of $3.2 million in the same period of 2023. For the nine months, the net loss narrowed to $7.1 million from $7.9 million year-over-year. The loss from operations also improved, decreasing to $582,000 for the third quarter of 2024 from $2.4 million in 2023.
Total assets decreased significantly to $6.1 million as of September 30, 2024, down from $14.9 million at the end of 2023. Shareholders’ equity turned negative, reporting a deficit of $1.7 million compared to a positive equity of $5.1 million at the end of 2023. The company’s cash and cash equivalents also fell to $1.8 million from $3.8 million during the same period.
Strategically, Golden Minerals has been active in asset sales to bolster its cash position. The company completed several sales agreements, including the Velardeña and Chicago mines, for a total of $5.5 million, with three agreements finalized by June 2024. However, the buyer for the oxide plant and water wells is currently in default on a $3.0 million payment. Additionally, the company sold its subsidiary Silex Argentina for approximately $3.5 million and is in the process of selling the Yoquivo exploration property.
The company is exploring various options to generate cash flow, including further asset sales and potential equity financing, as it anticipates needing between $1.5 million to $3.5 million in capital inflows to meet projected expenses through September 2025. There are significant uncertainties regarding the company's ability to continue as a going concern, given the projected exhaustion of cash resources by the second quarter of 2025 without additional inflows.
About Golden Minerals Co
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