Golden Minerals Company Reports Significant Revenue Decline and Strategic Asset Divestitures

Golden Minerals Company reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue dropping to $1.4 million from $12.0 million in 2023. This decrease was primarily attributed to the cessation of mining operations at its Velardeña and Rodeo properties, which had previously generated revenue. The company incurred a net loss of $3.0 million from discontinued operations, slightly down from a loss of $3.2 million in the prior year. Administrative expenses also decreased to $3.6 million from $4.7 million, reflecting reduced corporate activities amid cash constraints.

In terms of strategic developments, Golden Minerals has been actively divesting non-core assets to bolster its financial position. Notable transactions included the sale of its subsidiary Silex Argentina for $3.5 million and the Yoquivo Project for $570,000, both completed in late 2024. The company also entered into sales agreements for the Velardeña and Chicago mines, with a total expected cash inflow of $5.5 million, although the buyer is currently in default on payments. These sales are part of a broader strategy to streamline operations and focus on exploration projects, particularly the Sarita Este and Desierto properties in Argentina.

Operationally, Golden Minerals has faced challenges, particularly with the Velardeña Properties, where mining operations were restarted in December 2023 but halted by February 2024 due to underperformance. The company processed 5,186 tonnes of material during this period, yielding approximately 640 ounces of gold and 21,750 ounces of silver. The operational difficulties were attributed to a lack of experienced personnel and aging equipment. As of April 2025, the company had four full-time employees, reflecting a lean operational structure.

Looking ahead, Golden Minerals faces significant liquidity challenges, with cash resources expected to be exhausted by the first quarter of 2026 unless additional funding is secured. The company is exploring various options, including the potential sale of the company, finalizing asset sales, and seeking external financing. The outlook remains uncertain, heavily dependent on the successful collection of receivables from asset sales and the ability to raise capital to sustain operations. The company has indicated that without these measures, it may be forced to cease operations and liquidate.