AUMN - Earnings call transcript Q3 2021

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Operator

Greetings. Welcome to the Golden Minerals Company Third Quarter 2021 Earnings Webcast. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Karen Winkler, Director of Investor Relations.

begin. may You

Karen Winkler

and Good Minerals operator. today's On of discussing behalf call, quarter the Thank XXXX. I'd morning, like Golden operating be will team, which to results to the for during third you, we everyone. financial welcome earnings you

started, that we will made today certain by laws. get Before forward-looking applicable within securities statements management be the please note meaning of

from different and that performance most in known forward-looking for involve refer unknown those materially may to cause other and those actual statements and Please factors of factors risks, details implied Forward-looking other recently our or that actual or cause results be statements. materially XX-Q by could statements. from expressed to uncertainties results risks important filed such Form our to differ

are On Bob Officer, Minerals' the Chief CEO, President Vogels. our and Warren today Golden call Rehn; Financial and

remarks, prepared posted will be the their questions. also to available will over now website Following and webcast company's replay will This Warren. days. to I they the call approximately XX tomorrow for answer available turn be on for remain

Warren Rehn

am strong a from I'm strong of perform of life to worthy both it I successfully XX% and our Karen. income. in profitable which And performance and producer. plan despite Rodeo a gold exploration is gain quarter the Golden sure is become is given Production operating increased can report Rodeo in expanding goal. milestone production from to extending and its of spending well. first the a were you, Thank ever Minerals just focused quarter in great a mine, profitable in a resource This quarter-over-quarter Rodeo is mine XX% revenue that of validation all and we completed with pleased the agree, gain to revenue. the executing QX on this profitability mostly Rodeo continues

credits. of the per produced and ounce has gold in significantly net since now cost mid-$XXX is silver QX Our of improved

already on annual XX,XXX guidance for production gold are production exceeded of for XX,XXX to for year. We track silver meet have our guidance and between we and ounces, the

net to also for operating right guidance Our of million $XX $XX.X on is margin track. million

seeing are plants in and fineness we bit by day of in grinding adjustments on made have of our gold based less the some material in improving the increases longer. the recovery grinding We grind metallurgical a it per

the into are the the tanks increase train, levels injecting leach oxygen agitated air increasing more in gold to We which is the recovery. also

per about gains and on plan pit, grind, metric dry the tons We partly we near drilling have completed the maintain been late since this XXX program based finer from the day we levels production releasing the Rodeo to complete quarter. resource results Given the as at recovery daily be expansion our we'll September.

the seen are current of have grade that intercepts outside numerous gold We mill resource.

size in to of expect the information for extension see modest end We which a increase and Rodeo. gold year. before the the of the life that mine plan of to the silver We yield plan into our incorporated have resource, an should mine

and studies bio-oxidation is Velardena progress plant. the to to of through mining final selective the additional proposed of details advancement Our continuing BIOX testing detailed define or

receiving plant The We economics start the attractive are the to we construction operating gold not interest good enough until simply company's have have that to for mine the the approved of completion date. the determined not possible payables is in justify the best BIOX the they're to it of risks. and without closer

into and we BIOX not plant until the half be BIOX assuming evaluate we good underway the our estimate from the able proposal With this construction. much the plant, to we and of for we will the cost will we for Velardena as the more XXXX, current restart This XXXX. or operating have in our start-up payables a test possible Africa, now which This capital first plant. have could results second the production accurate favorable, XXXX. a of restart approve the We a happen will for of at of work, allow possible oxide gold South potentially information, firm the economics would resumption out will and extract can the half early plan. of Once using gold soon a have schedule pushes the in get are XXXX still have date as

the required first terms will project project in Argentina, were we We received, drilling on we Sarita second up drilling at Este and project follow designed satisfy release the we gold drill silver related of The our We we at are Yoquivo would assay released and and program are positive property X,XXX phase The the our to some Salta deposit early year. Mexico, results next results option. Chihuahua, the intercepts be for should in for also results. and mid-October, of deposits. started Province, of results year. earn-in round early and see this excellent results. continued that for our to This have epithermal hectares In Once district porphyry in significant and about our deposits control scale. waiting copper We drill potential has the company. giant is excellent to expenditures Western sulfidation finished to drill Taca immediately all copper Taca high gold-silver adjacent the

soon margins the the for well initial our show million and on potentially silver our plans lead of year, annual we and from X production constructing complete, profitability excellent while Velardena Once strong be with projections producing in continued year as possibly are will equivalent silver be XXXX, ounces the operation with advancing separately assuming and per and is silver and at growth plan facility. bio-oxidation in bio-oxidation track zinc production as plant concentrates Our are gold station producing we prices. next selling sustainable and place

we'll possibly results with for quarter Rodeo a exploration mine Our hand from the success. a and our now for about will call to financial Financial the be will Chief life in one projected the gold Officer; to I and production third have Velardena, of additional improvement Bob Vogels, more of the present production XXXX. swing, full twice decade

Robert Vogels

Thank you, Warren.

the operating our Rodeo about over the to at margin million averaging tonnes expected increased day. second throughput the processing For $X.X as plant per quarter the XXX at over quarter, with operation significantly third

be Warren net As plant cost, mentioned, to grades. declining of per to throughput approximately below operate at we should credits of silver silver improved byproduct of the tonnes the grades to operating at per costs, as for anticipate or gold due significantly the in $XXX of per credits trend average through back Rodeo ounce mill higher of QX, tonnes primarily operating remainder should rest in XXX silver, QX. higher of for QX and margins day $XXX and payable ounce to day and year Cash given produced about even the throughput At remain byproduct a Cash the net the the level gold will at rate year. remainder a for deposit per QX. of of continue approximately operating levels the continuation XXX of the prices similar to year current in

filing, with an million for XXXX between are XX-Q $XX.X million our prior full in consistent estimating of noted the year margin and operating As we guidance. $XX

levels QX net of programs reported from at quarters including positive With mentioned. those property, as El care forward. for Argentina were $XXX,XXX Velardena with advanced prior going we continue similar as and in G&A Warren after-tax and for approximately Este expenditures the are expected and Sarita Other levels about drill to of improved projects, significantly Rodeo, we income Rodeo maintenance operating spending even increased QX margin several Quevar, during to and exploration at

during VAT from operating for income with from of being VAT. but quarter as QX cash predict VAT company our primarily a also remain third Net due of prior the million was high QX. in is third overall the We over receivable quarter by XX-Q. timing cash difficult quarter-to-quarter, continued in of more It current operations receivables quarters new significant or VAT the to positive VAT benefited anticipating prior With the cash. about the operating less collection with is Rodeo, a noted ended the positive coming offset flow we expected to Rodeo. in expect refund at from increased also receivables, to margin receivables million the VAT margin of $X our same QX. the of our level Net refunds $XXX,XXX about $X.X declined net flow The

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

the $X.X and in the our to back December property. operator from through in mine. questions. the now other to forms balance I XX on the or we cash potential around of the we incur projection metals $XX Velardena costs terms equity of to to that fabled restart XXXX reported September projects. farm-out expect over third financing over spending million million silver or of As expect not exploration to The to will your Maria for to may Santa who months we depending agreement next does related prices the include $XX cash assume projections the a grow turn debt call any These according on our will the XXXX, quarter receive XX, million XX-Q, gold take

Operator

[Operator the Jake Partners. Sekelsky with first line Alliance from of Instructions]. our question comes Global And

Jacob Sekelsky

year this closer timing year sample followed Should a to these potential my we I'm the Velardena. trying production Just next of of by results the just starting with some to full early around head still wrap items. decision? feasibility later expect

Warren Rehn

Jake, question. Yes, good

the to have be BIOX by a of feasibility being unclear, technically We the little the [ph] is that study, we it be year. but information in So batch Uzotech full next process. a having won't should South on which is bit report study, date level in processing quarter feasibility the used Africa. will portion will exact schedule depends first of work Though on the from be the that

the would in should we first and the whatnot along half to with results, head the year, the next the certainly mining. -- that grades sample we year, of of information have able we test release that some to from be book obtained So

Jacob Sekelsky

on helpful. just program in Rodeo exploration then down results And Okay. October. wound That's

be Assuming mine corporate will they're when out, plan update see update that internal trigger positive, an in it plan mine you we will results of more think do or results? formal come a those

Warren Rehn

external of update. I'm assuming an or independent doing cost internally it because we'll do of the

on also an based technical we be update report early refile we However, year seeing next SK-XXXX rules when will the summary. the likely

those included information that So updates be as in well. would

Operator

with Our the from Ihle Heiko Wainwright. question line comes next of H.C.

Heiko Ihle

in how investing Just allude thinking firm little clearly longer stand a the I quite term. here you're little you the thinking longer, bit mean in heavily, out but with a do spent I investments would versus with spent bit inflow. the being this -- are because earnings your firm? And the revenue about shorter-term cash talking future being I'm the that flow performance capital versus versus for revenues that's

Warren Rehn

question, Yes. it's a No, Heiko. good

we're obviously in exploration. So reinvesting

We if -- reinvesting revenues some some exploration it's, obviously, to also. my and projects the spending, have is a looking company growth in those company in to the is to which continually pipeline obviously. are have better. spending for the most needs shareholders, exploration and opinion. along. invest it's at of quicker of from we the the M&A, the program the to potential do And exploration to material dollars were that The investing And But grow, in as important as we really able go beneficial we effective company internally to properties the change much have meantime,

Operator

[Operator Instructions].

comes from next the Rajeev Our Fundamental Research. of question Sid with line

Siddharth Rajeev

questions. production One on strong deal. the a everyone. performance, on previous few or a A congratulations is questions Yes, follow-up

better a resource next formal is year? year-end, update will So early come to out that assume it

Warren Rehn

I an technical What be into we'll do, published that will incorporate we mine we'll do Sid, the need this report update do next as internal the is for is in summary plan. what form summary early SK-XXXX we'll year that update And the within it year, to anticipate.

produce we will based this independent SK-XXXX we next year, an report on So year. XX-XXX won't while update

Siddharth Rajeev

Okay.

for trying Now XX and able cash you to projections see here, maybe I'm was But are next if cost. guidance provide provided you greedy production any months. flow I have the for to bit cash a

Warren Rehn

see. take months right XX to the what I'm in want -- you that? next we have I do Bob, not let's sure now. forecast

Robert Vogels

with Well, we anything for don't filing this our have published the XX-K end certainly of year.

we full forecast, XXXX, current for will year that we've That's year. -- all provide anticipate. expect I will XX-K, year with presumably I against forecast year, forecast a would year-end XXXX we financials include only a the full XXXX. what This for and as a been production this provided which well. would forecast reporting We provide and year

Siddharth Rajeev

So it's that in say QX? cash the might as fair to the QX same costs remain

Robert Vogels

Yes.

QX, than that QX, will ounce, we bit in I grades be gave, actually, I under is think update in in So QX with expected I in in an we to -- were expect had line they costs higher slightly we are $XXX what indicated remain the little as -- lower to QX. a which

Siddharth Rajeev

Quevar, in what's resource there? a year or...? expect estimate Can El With we next plan the made

Warren Rehn

Sid, we're drilling doing there. Yes. just phase of the second

from ways this holes long looking to define of these early a we're mineralized year. possible the some estimate. So resource the of reported that we drill extent We're

a early So are it's results idea of we can unknown out update will or much the an currently program of and results And year. we'll give this based not. those resource a this mineralization, undertaking, become we're whether drill extent better have certainly, that of the next on after

Siddharth Rajeev

their color is on your plans the forward? What's they spent And on on property on, Any so the going spent million X just more what far? what one plan question Barrick.

Warren Rehn

bid the has, of out as drilling process. has So for next bid this exploration year, put a Barrick kind starting for early late company public year,

drill the of more to So they have next in offer the and their year, details with earning I continuing are continuing planning but to within they're process don't this and option. point, much at

Siddharth Rajeev

strong the on QX. congratulations Again,

Warren Rehn

you, Sid. Thank

Operator

from comes the Ihle Heiko Wainwright. with H.C. question next of Our line

Heiko Ihle

there. I one quick just follow-up had

jumping costs your back you between Can in. please? break the property costs exploration $X.X holding in down for Sorry million assets, and

Warren Rehn

want you that do Bob, to Yes. one? take

Robert Vogels

full million, that was year the correct, $X.X Heiko? The number,

Heiko Ihle

Yes.

Robert Vogels

There million about Este was The it majority at Argentina. $XXX,XXX, Rodeo, in little of in at $XXX,XXX over a $X Sarita total. was

And our spend $X.X about normal we base concessions for a $X in just million of that there and We includes associated property there. restart exploration, level in general with include which studies so runs also number million had the our some costs holding have costs exploration. validating of for costs with exploration associated a approximately year, we

payments have Mexico million that breakdown various we we expense. staff holdings have We roughly to and to we less Argentina about a date have. exploration That's of $X.X and that pay, concession an or that in in more

Heiko Ihle

Got the it. months, be the less? for or to next XX And same it's going more

Robert Vogels

of programs, Yes. that. aspect drill on Depending that's expensive most the

we've there into we we're announced as got be next drilling, year. So where Warren Yoquivo and head further mentioned, programs could as

Heiko Ihle

I mean million. to number the down ultimate $X.X the seem Got you have it.

Robert Vogels

sorry, I'm hear didn't Heiko, I that exactly.

Heiko Ihle

to seem are $X.X have number total that I down said you the right? your in the outlook, million

Robert Vogels

confused I'm question. the Yes. by

Heiko Ihle

more the What XX or I'm saying the is same should by as like months less spend the spent past be asset. next XX-month

Robert Vogels

we've in keep the these to range, where have and we continue drilling of exploration years prospects. cash ways, we annual million holding had managed minimal which level million In to if to will, in just It available past be fairly base us, work. and flow salaries haven't aggressive $X some exploration to $X payments, costs, a we cut is back long spending concession

programs. money year And seen of That's this as so yes. you've we the some an had additional why to these drill uptick do

Warren Rehn

a Just to further. let me explain jump bit just on in a that, minute more

for haven't up made next Velardena next I gearing final plan on spending on probably made, necessity, decision, think decision we but start than by think, year this that I but will, dollars year, that exploration would on we year. we we cutback exploration drill as spent once past is more we

So just an as look. overall

Operator

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

Karen Winkler

good This forward Thanks, day. us, next today's a quarter. with look Have joining talking you and concludes we call. again to for operator. Thanks

Operator

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

Golden Minerals (AUMN) 9 Nov 212021 Q3 Earnings call transcript