AUMN - Earnings call transcript Q2 2021

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Operator

Greetings. Welcome to the Golden Minerals Company Second Quarter 2021 Earnings Webcast. At this time all participants are in listen-only mode. A question and answer session will follow the formal presentation. [Operator instructions] Please note this conference is being recorded. the to turn Winkler. host now will conference your over Karen I

may You begin.

Karen Winkler

Good behalf the all everyone. Minerals you, and which morning Thank operator. discussing be On of inaugural call, would operating XXXX. to we will Company’s results team, like of quarter welcome the you for to financial earnings during second I Golden the

certain within Before we Securities Forward management Looking the today of by laws. get started, statements please will made note applicable meaning that a be

results and known may to involve by Forward risks, or uncertainties to XX-Q that statements statements. materially looking forward CEO Please details different Financial in our Bob our call implied to factors other unknown On Warren those Chief Officer, filed of Minerals form expressed for cause and cause performance refer Vogels. differ and recently such statements. or Rehn; important risks events from President looking other our factors actual most from today, be materially those Golden that our and and actual could

prepared their turn event available replay to for available website will remarks, to the be The Company’s be also over Warren. call I on will will the tomorrow. answer now questions. they Following

Warren Rehn

Karen. you, Thank

we on in predicted, even we company goldmine quarter the of broke based As a our as second essentially income Rodeo XXXX.

strong last the month we the in planned. new commissioned April, remainder show of at operating start-up, since oxide than this of positive plant later the projections earnings through had about been ball Our well year. Rodeo we very has days our a mill

time, higher nearly since has plant tonnes process by and throughput per expect that throughput our we However, the XXX to continue. expectations day exceeded

ounces meet least to year average per and for an for we This year. forecasts of and gold tonnes the profitability planning XXX production easily for should XX,XXX XX,XXX day. be between now throughput of this means are at able our We

well, XXXX. possible the for Velardeña Our restart progressing the near work at is end of

design west material the to optimize successfully studies mining concentrate our final that We preparing early this The are test debt, positive year. pyrite of results oxidation QX South for in the be Africa and for oxidation criteria bio this expansion not of Exploration to results currently treated mine the current the sampling potentially the to reporting the should at decision and and positive report east Rodeo and plant to maximizing now to anticipate continued bio completed bulk complete in in be the the gold the structures a precision has for I have metallurgical on the mine tests QX. circuit. of are the restart separation, sent have within return We plan. easy additional two in will structures on flotation both to and access.

life to the program mine faster delineate that just need started speed drill the mineralization added to should is drill structures, rig the drill. these targets. the more information the to expected second we or we have few core up about means This of drill next day two months. evaluate extension within potential times We than gold circulation and just rigs have July to to the last additional on test five a the Reverse of

in giant the project property doing property, enthusiastic [Taca The in the Salta adjacent that Sarita I'm immediately about. Argentina to (Ph) western a is Taca] We also quite is which deposit province. are Este copper

weeks. the next compelling very results and few copper interesting sulphidation drilling Initial a targets should Silver be high available targets are both target. in the a copper We from Gold

the projects. at a are necessarily Our the to accommodate drill Not plans very because Chihuahua and Yoquivo in attractive potential. based district Yoquivo exploration silver because remains with other to on to gold at but drilling at these more needs Sarita operational pushed targets good, have commitment of been district back all are a few Rodeo Este. excellent quite better months drill at projects a other our

drilling QX Rodeo as in at start to core up. expect at this We Yoquivo year, soon freed the is as rig

constructing ounces year and projections while advancing with silver late this be growth profitability growth the well. are production plan for in facility. XXXX have producing so gold and from our our complete plans hopefully Velardeña and place million in of our in With plant an will and Once accelerated equivalent million the oxidation byproducts additional legumes is produced one are over we per the oxidation initial sustainable year, bio Our one about producing pyrite. production potentially bio silver we ounces

full Our financial more Velardeña, from possibly results with a Rodeo projected will the XXXX. Chief present I twice production mine hand with success. for a and Officer quarter be to swing the over of Bob about should and exploration decade in now the once production call to the our Financial Vogels for equivalent gold second life

Robert Vogels

Warren. you, Thank

X.X significantly about the For to with at over projections the first processing beginning as reground the the second expected of increased quarter our circuit quarter mill up May. the plant in operation start exceeding and new margin operating throughput million our internal Rodeo following

As a expected to and net the as throughput, going to cost Rodeo Warren at of remainder throughput operating credits better payable gold current higher for margins the to operate of over higher of for also least mill the remainder operating Cash year the throughout level mentioned, quarters QX silver continues per at prices, day or the XXXX. of we just higher year. declined ounce tonnes level the the At be XXX and remaining should now higher of at of produced. throughput the We continue of due two this silver throughput of the levels slightly significantly forward. gold $XXX costs rest in at higher for should expect a per given continuation the XXXX plant byproduct

margin a QX. loss significantly about Rodeo, our of XX.X between to Velardeña similar net were Despite in part an continue awards operating from levels compensation XXX,XXX granted million margin to for still and million approximately XXXX. in we El for Other improved XX reported filing prior are noted quarter. forward. As non-cash full-year of quarters levels maintenance estimating XX-Q to operating in expenditures stock and of we care at the the second the are Quevar, going those expected exploration of Due G&A, narrow

operating With the expected was X.X margins in two are about than million incurring and refund pace the that for occurred as in million related net the Primarily the the capital of course to ended second slower XXX,XXX our quarter. the COVID new and startup normal dore reground occurring remainder for cash, with the processing our Mexico inventories half We per of Those million VAT flow in quarter month. Mexico, of the XXXX. was increased are to costs of X.X of income a with to higher QX year-to-date the Rodeo deals VAT negative cash for we about primarily for Rodeo refund Rodeo due the incurred XXX,XXX startup included of pandemic. basis. circuit net seven in approximately installation a the in little the year, currently no million positive working quarter buildup receivable We by was related we noted of the a claims negative and primarily that first more X.X Due operation and on in to costs tax projecting VAT XX-Q delays the the The than VAT value economic fallout anticipated operation. added receivable. claims or at operation,

period. collect the forecasting year are up to all and in we within believe We time refunds half existing of the will on of books receivables the pace pick our the year's second a VAT

we in and full have into of Rodeo that cash at XXXX. providing prices we current metals through net the flow and we will XXXX levels, mode are Now remain at operating remainder expect positive

June The does of XXXX equity your the the As any million the will debt Maria million out projection of operator, include XX, Silver the XX.X December farm cash turn our reported who the I expect also around or to terms the expect questions. does second will Gold finance. Agreement Fabled our back quarter receive according in to XX-months Santa with to grow assume over the next forms other XXXX. call to And not property. this now cash to X.X take in balance over in we not to we million XX-Q, X.X through

Operator

be with Alliance And Sekelsky a from question-and-answer time, your Global proceed [Operator conducting at session. we will question. Instructions] Jake Partners. with question is this Please first And our

Jake Sekelsky

Hey guys, thanks for taking my questions.

to discover to you you do we or of just ahead the some of update go expect you you on some do you obviously So that guys a and QX. you at see the broader When will guess and program the just outlined looking update PEA it? We sort expiration that new think material results formally Rodeo. tack I at in saw [indiscernible] there think

Warren Rehn

Thanks for question Jake. the

on results the we next here So in the additional Rodeo weeks progress. will out have few

rig, my become As has core noted presentation it more accelerated. but in the remarks, it with slow will a been lot going

Now the well. rig that as drilling we in have there RC

will of And a And will probably I will update a those think we to is see to enough we it the bearing certainly of commentary question structures resource we the how PEA, how now, no probably clear, incremental of It months interesting. add have we the before period. it is which right pit, the to increase just I don't couple at gold will or that, not and some think, a we for us side and resource. data very either take have have update but will do resources. what around big resource. transformative just update have internally existing much on

Jake Sekelsky

QX do and by Okay, of think that year? you see resource this will we

Warren Rehn

up is it are mine internal on for commercial you will lead Mow think we be just the taken a Jake, rapid lab realistically very turnaround because need we that the the know own labs, mostly our time now. assays. I in assays QX using with based

you will but So, it as that fast it can. we get can't out exactly I in would tell will when as we there and expect QX be,

Jake Sekelsky

that with Velardeña the a see it, from end we timeline of you Got on two-ish just of guys you us just to sounds restart silver make million up sort from ounces by year this a a to decision decision remind might equivalent ready And that restart the like ramp there? be positive a is year. from okay. timing perspective, might then it Can

Warren Rehn

can through I go of Yes, sort it.

my we to up opinion, getting the in that I capacity forward, to the flotation this the is order having months plant. about approximate in the And be per are production. that six so is to we for production But to go of zinc will con all no progress. decide over we full information to which of we the decision this day, of assuming three lead full will now sales, need. close, all course think that tons But official XXX Now ramp pending, silver

until portion plant have recovery Now, gold the [BIOX] we (Ph) we through won't get the whole built.

assuming pirate we the year XXXX. take presumably likely the So, time. we concentrates from plant to lead, start which once late BIOX silver zinc about production concentrates would be operational, It then stockpile a plant, the will sales that is BIOX next. build this that And would that during period of early year

we in right produced as on production the Assuming all now. annual an able two basis, goes we the approximately well, with in equivalent PDA the would be the contemplated it full in PEA way being be million scoped mode out silver the have then to ounces

Jake Sekelsky

Okay thanks again all That me that helpful. was very for very, is guys.

Warren Rehn

Thank Jake. you

Operator

Ihle question with question. from Heiko with our Please next your is H.C. Wainwright. proceed And

Heiko Ihle

expenditures like else incurred questions to there, in also, are XXX were other there? is that this you other And you my And we reground taking there the circuit. now. the seems mean, anything should running on and doing quarter during for Hey is it lasting thanks category? everything getting I in mostly better capital the related longer mill the the mentioned it item Are that any horizon for throughput items there Hey rates? good meaningful call. grand in thanks you anticipate

Warren Rehn

the that had Yes The was electric initially for involves we the initially construction had actually it fixable, had for the because synchronous motor the motor one Heiko, a control up a that we that wasn't in great one cost, on to motor planned system of sized. you end, couple We synchronous electric we that motor, get just the to these initially added went the to contemplated. cooling to go variable question. we hadn't having with bit at use. purchased ended asynchronous a put Undersized system mill a larger we It parts know mill. a is an

started, in So the was that had tried there obvious details to of of beyond start mill. suspected. to a And we the actually mill that installation number until what cost it added wasn't initially we

let's month, and the cost. to to led of up what bit is say mill running, delay that and so And the getting that a

like normal of the have care But vibrating minor additional some costs is and and for things and costs that that. maintenance screen repair the we had Now sort mills.

any capital is further And else we anticipate great. items. for costs will So significant everything minor running, and no don't be replacement It the going mill. repair up and

Heiko Ihle

you I hoped is what say. would That

Okay, fair enough.

until detail to different then You exploration get willing from end as there X.X June break can you much down the million the with me, outlook XXXX writing and between of in in like is people do see activities. It are the in you your of assets? it

Warren Rehn

detailed at Heiko, about can Sarita I Este. but are say breakdown, that We think we XXX,XXX spend haven't really I planning disclosed the to

fairly over initial that have plan close planning at Yoquivo. are about Rodeo based spend on We that results positive at go million but to had spend The was to-date. we XXX,XXX, to will significantly we X.X

the detail the overhead right is and maintenance in I is have exploration for care additional then you have for the Bob, of of general costs there and as any So items comments for well. now that? do that on course group and courses level the you claim there

Robert Vogels

Warren. think that is I No, right,

those million to costs pulling as X.X payments, of just the for exploration said sorts is million group property spend holding X.X that sort costs, things. Our of Warren for concession

so And that drilling is and field. exploration spend in of planned the majority

Heiko Ihle

a actually I there thought plenty was detailed answer. sense. Makes of

much So very thank stay you and well.

Warren Rehn

Thank Heiko. you

Operator

Lin from Lin Our with Chen next Management. question Please questions. proceed your is with Asset

Chen Lin

been my a said basically the about you for is actually conference you has two my operations. hosting of thank Most the questions thing call thank call. exploration. you Hi, touched, in mining heard question guys the One taking and for I conference Barrick

you expecting results exactly a you you expecting, is remind said can So us Barrick what for looking in weeks? are usually few and

Warren Rehn

Quevar into. I Hi Salta still about It They expect part program, property, the Sarita the a yet. you all But work. there much deal. Chen. in El project world-class to drill that that that I El is surface no five million year, program earning But doing for of the likelihood. Western have Barrick their we ready about next sometime get not talked deposits and is which is exploration is Barrick a gold was to is ounce now confirmation now drill new preparing asked about their Barrick at property But They talking looking Quevar, Este them of target haven't are drill province. to targets are methodically a have they propose point best is they are that about and of the a their see And gold work not. this, deposit. thing doing such indications whether very to get they for where their or

Chen Lin

thank you. great, Okay,

that And your so it you also adjacent in property drilling or is to own are Argentina?

Warren Rehn

huge hour Taca Chilean a half Yes. is is it the It a an on and to West. to is the immediately about is Quantum’s And border. Taca project, which adjacent copper It feasibility porphyry. First almost stage, copper

a to of with some the longer, the project. is initially project is is So weeks gold We talked there about gold there to appears similarities one results Taca a the day have it prospect releasing will Taca it to surface. target, to bit - And But or here two up a Chen. the also combination on some because then high interesting targets, were too a few different we copper that in be little we silver in just values could delay we that very perhaps haven't some three, that might have yet next be interested sulphidation much be which essay month.

Chen Lin

Great. did so That you interesting. many holed drill is How far?

Warren Rehn

X,XXX Chen. a And meter six of about meters they program. planning less drilled about a We more holes drilled are have thousand or

Chen Lin

forward looking I’m that. and Great to

this have operation have and need new months what seen great are another very have it to with you six another you to results and And you discovery of hope do What a a underground? QX. new nice go you Rodeo. also more in Okay you or you a for far, pit you so resource have extend year for or open hoping

Warren Rehn

the clear, we will But don't drill still Let to we have be results. resource. dependent expand yet. are added resource we able think me an be We on

several additional will we Now have say, the few the initial press release. were in within that the in results let's some positive holes we drill to on weeks publish next results June the have here And Rodeo.

resource. results sort no that is of we that positive showing getting but out it it the the time much it is lead we resource have will. In So the much should progress, affect in tell that think opinion, to mine of get how how we fact, there can there indication way it how it production it much indication might of does resource are might or If extend life. no will increase I expansion, is additional you as I my

Chen Lin

good thank your the Continue Congratulations quarter. breakeven first Okay, for you. work.

Warren Rehn

appreciate very that. you much Thank Chen, I

Operator

Research Sid your question. And our from is next question Corp. with Fundamental Rajeev with please proceed

Siddharth Rajeev

on for you question Congratulations going strong - the rates think I’m of Recovery rates next you Do and lower Do PEA to production think estimate. year Yes. about have feel get been next next your PEA year. slightly than can My year? estimates recovery for costs quarter. Rodeo. is towards move a the

Warren Rehn

and those question. Yes, in it. thanks the we the QX, recoveries done about showed reported previous think was an we bringing can the PEA, was entirely that estimated gold XX% focused sure versus for gold Sid on from XX%, for are recoveries, we improve I have we up in were what the are work that bench recovery Yes, used that scale

faster from rate each you Now, recovery are know of opposite we had a bit balanced oftentimes other. effect of and throughput, throughput side the

of than we sort probably slightly have up we to in per dialed in higher April, make we if a because slower so back And than closer recovery have mill tonnes commissioning to will the somewhere June think lower to XXX expected we day. the put I throughput May, for

can't to to confident very XX% but I'm expect the the close improve recovery. for what exactly So, PEA that come of you recovery will points, tell about I I gold. to published

Siddharth Rajeev

And fair most of the Velardeña, one that to earlier. I CapEx for spent points it last the this think say Is you have of there from year?

Warren Rehn

have At CapEx Rodeo, no, spent not the there. we

preparation of a mining. and sampling doing the have for bulk minor amounts test We the the fairly spent money

So, done studies. test we mining have some

decision have ahead more the We I'm development or have a required doing required. and this yet, which will bit And continue decision a point, year. and that to we that that capital will there are and positive go on ahead some construction. we made the go spend is development late we cost Velardeña anticipating hopeful for Once still made in not for at to development BIOX make also feasibility completing the we have quotes CapEx,

So, we pending. is go Velardeña, that that have we on project, not so capital until spent won't we ahead for still the have a

Siddharth Rajeev

is What for estimate that development your spend? CapEx

Warren Rehn

for million go haven't changed we in about make start, for about the three to contemplated that And We and estimates. And XX project, If in facility. be the XXXX. I four, the would we start-up ahead. decision working spread costs, BIOX to six our think PEA was and cap overtime once the developments

Siddharth Rajeev

And based capital. on the internal cash raise We market be to back funded. don't flow estimate, to it seems it go self can have to

Warren Rehn

have that, to Bob, Yes, been what comment that do you please? is want we saying. on

Robert Vogels

Yes.

mentioned, any spending Velardeña project flow kind cash include yet for million for million it us should projections as $XX internal of estimate cash of by balances a does June have before. $XX not said Our a That XXXX. show to I

Warren But that. through of out come to XXXX. that mentioned, have we be would spending that would as So capital

additional So cash quarters the raise to and XXXX and full-year we in more internally. would have months

internally take looking to And it some are options of nothing of funding terms that alternatives a help in we possible the on money, a be So on right bit yes, fund little is number could are all options other yet raising quite maybe it going is different at more the certainly now but decided. to and to been table.

Siddharth Rajeev

you doing Thank so Got I call. appreciate it. you this much and

Warren Rehn

your Sid. We Thank you appreciate questions.

Operator

question [John Fenix next Consulting Fenix] from your group. Please is with [Operator (Ph) question. Instructions] proceed Our with

Unidentified Analyst

flow million, call. you have for the be regarding well answered seems in Bob of like in Santa who I don't Hey XX XX by you you have Warren just [Cable] is the either or It could is that going like talking million that mentioned Peter my taking not to there. Bob, but And questions, staggering mentioned. CEO things three first mind. to thanks are cash seems the labeled. Maria And (Ph), is that was if

to you in some anticipate compensation So that of be I type are correct? QX. getting additional Is going that

Warren Rehn

Go ahead, Bob.

If you that? to want take

Bob Vogelszs

million. pretty scheduled Yes, their look John, payment point. agree, next $X.X their is And at for in December strong financials this I

throwing because will QX been - We little forecasts, liquidity of in comfortable sort not have probably, in. our drop a feel conservative that bit enough but to official that into

Unidentified Analyst

that then that Seeking there producers regarding And following you. yesterday is quote, out a author who regularly. Taylor dilution. thank are question August Dart, just there up shareholders diluting article, another Okay, wrote aren't Alpha on more established Xth,

your that, regularly ago, so look I XX-months flow year, least this financing cashed remainder the it And be up with of inaccurate reasonable news company last an to that looks for seems was surety pretty given the done so me to can statement, some is at state the please? like you your website, at

Warren Rehn

And Yes, John. between to that? our our within want grow we million said said period. cash of that are disclosure. We Bob, million going that of next has comment again, year into is on to XX further Bob and part you XX-months balance do X.X that and

Bob Vogelszs

forward what have as Yes, this flow turn going we is be Rodeo essentially source. wise, we adding flow I point, should corner the at put that long got to we cash out that as cash think have we there and cash

So markets for no this the at need there go us into to time. equity is out

kind of lot doesn't need would that. look we that financing Velardeña not table choose any are got we external me external have And And for are have And for there. what on the going that. seem may of like But to do we major the We financing. to on options horizon. to any a at we

Unidentified Analyst

you Thank the few and questions. positive. very is That then Okay. other

range be analysts that able like few just share currently, the you to what listeners would We on looks call, analyst this with and heard from please? have a

Warren Rehn

forum on John. just general Yes let talk me that, in

Our the analysts, stock, the share. I published now think, and that we targets three $X.XX price $X.XX and have of on between is have sort analysts range per

So that current puts company higher valuation. than valuation clearly market the far their of the

Unidentified Analyst

for Christopher made my earlier, some there and another in gentleman Okay. share about an writing example, low. from looking Taylor that And weeks. mentioned asset from Dart, newsletter, stating Herring past value Taylor structure I'm just Company’s I then And the around X.XX at opinion misstatements, from is hearing use lastly, gold yesterday, Dart is the to minerals what seems gold example when yesterday have I net over per who the share. And, few named clearly, in that

how exists? I'm company a discrepancy of the company has kind investors. a please. from e-mailed or explain can these either So, lot question How strategy can responded and - of such called large either my individuals getting more The this to

Warren Rehn

Company. Yes. the great John. the with neither contact Taylor is has any No, No that of a officers question of Chris any Dart direct nor had

their are and than analysts, no, more are call low. covering more think value, compare analysts other estimates When estimates to their very respected So that compared on the to welcome clarity. they quite get obviously We the Company. you

that see reports. in putting and that share Chris what of are analysts low half vol out Dart for putting research below forward their Mr. well very were are can company respective the the per both valuations You the

So I pretty that think clear. is

Unidentified Analyst

I Thanks you Very helpful. appreciate and it. to Bob.

Warren Rehn

John. you, Thank

Operator

the back to Winkler remarks. call turn And have for over will question-and-answer reached I Karen now we of the end closing the session.

Karen Winkler

to to your our thanks today the conference quarter. attend everybody We out great of Thanks look with for you time talking taking day operator day. call. again next a forward Have and

Operator

today's for may participation. conference. you your Thank concludes And This your you lines disconnect this at time.

Golden Minerals (AUMN) 10 Aug 212021 Q2 Earnings call transcript