AUMN - Earnings call 1 2022 | Golden Minerals Company

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Operator

Greetings, and welcome to the Golden Minerals Company First Quarter 2022 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to Karen Winkler, Director of Investor Relations. Thank you.

You may begin.

Karen Winkler

good and operator, you, morning, everyone. Thank today's operating and to XXXX. earnings first call discussing be we'll which financial of during quarter Welcome results the for

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

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

Weedman. are and Minerals' President call and CEO, today's our Golden Officer, Rehn; On Julie Warren Chief Financial

be Following answer they to prepared questions. remarks, will available their

be website This for posted XX on for available it where webcast will replay will tomorrow remain the also days. approximately company's

I will call the to over Warren. now turn

Warren Rehn

Karen. Thank you,

credits. to the Rodeo inception operate X,XXX XX,XXX the XXXX, Rodeo, silver ounces ounces for around cash of flow silver as continues continues costs XX,XXX XXXX gold ounces significant XXXX, cash and anticipated through we've first of the company. produced $XXX Our payable ounces March about mine gold net of end to we From and XX,XXX of quarter per produced of gold of silver. with of ounce averaging from January In in generate and

grams what a of will gold estimate during recorded XXXX into per X.X than is in the per we lower XX,XXX to since These grades day. of estimate lower silver. guidance average per of of grams XX,XXX at now XXX,XXX we for XXX grade tonnes rate We are working resource. be and ounces silver. approximately XX,XXX XXXX to gold material remains production oxide processing about unchanged, tonne tonne Payable at ounces through plant XXXX we to average Our are and and XXXX an for Rodeo XX,XXX of grades X.X XXX,XXX our estimated tonnes area

are However, they as expected mine plan. the in

production XX% gold plant throughput lower in about higher the average help for Cash per to a although payable projected payable of at gold XXXX net for this costs to are $X,XXX grades offset during year, credits silver silver. We are unit cost. and anticipate gold gold that XXXX. with and ounce recoveries higher total both to similar be between $X,XXX will XXXX expected XXXX compared No total by-product

Velardeña Africa pirate restart biooxidation underground of We mines has silver South production The a continue making been concentrates decision. in completed. now our of testing BIOX to advance ahead gold or

results proposed We and the final are Velardeña. assessing the plan incorporating at plant the them into BIOX for

test soon flotation results We nearly optimization to production expect Africa plans. and final work completed have to incorporate in South the the into have also

that the mining can to of into Testing the few with last decision run activities formal to determine underground mining on month. the to which next months. We We critical is month control project. chosen next the is intend to make mining we resumption subcontractor, began dilution, test our within the of success anticipated

the BIOX decision depending possible, It activities the pirate complete. we part and the of is at take facility construction until estimate make metals plant most with and mining in lead that to we we while if restart of silver, X-month concentrates selling which could gold zinc on concentrates begin XXXX. is a contained in is to ramp-up the year the communicated, X previously period begin X- As stockpiling price, midyear into BIOX roughly mining running would Velardeña,

open project to to This the Two vein-hosted on is Yoquivo. multiple our The areas previously Most mineralized been high-grade identified to the Pertenencia other off. economic-grade program April, high-grade the programs at we not have at the In mineralization exploration gold-silver of zones closed designed recognized on delineate Mexico. intervals. in is also potentially south drill began Moving properties. drill encountered third earlier zone program newly further a vein. Chihuahua, Yoquivo Southern

We information estimate resource. gold-silver initial round sufficient give to this drilling us will an third expect of

In program ever in Este That gold from drill conducted oxide we potentially identified are with and project the results at reported first Sarita widths that January, grades shallow drilling Argentina. our Salta, economic.

complete new XXXX a additional we trenching submitted and have that We for campaign. during permits drilling field plan to

John Last leading has Galassini of as some grow. operations Minerals continues pit has largest our Golden mines. managed will world's operations Minerals mining successfully XX Operating years of effective May has week, John joined as announced mining be experience more as underground that the we and Chief Officer open as to He well than numerous for operations X. responsible Golden

pleased company am at year to role joined us March. the and upon Financial at over the Julie experience, number retirement Phelps Dodge, I Julie Weedman, Deloitte mining and of into a stepped who buying and work XX domestic this and Vogels' earlier the smaller at of of joins Touche. years companies introduce time Chief years at Officer Additionally, accounting end of for years & industry international Bob including finance XX

to I present now quarter. for Julie first will hand financial results the the to the call over

Julie Weedman

you, Thank Warren.

of in a For million the at Rodeo quarter. ounces XXX plant tonnes sale X,XXX was the over Doré. just for per approximately X.X operating processed day our of the gold the gold rate the The margin of operated per first from first quarter operation received average tonne was grade XXXX, $X.X grams revenue of and approximately $X.X million at from

by-product costs, operating $X,XXX quarter were first ounce of Cash net credits for XXXX. the about silver per of

the the in ounce per anticipated, to the XXXX grade. decrease the for is cost average average As than year full due this higher cost

quarter we $X.X in expenses Rodeo quarter of first the after-tax Exploration quarter million compared costs reported negative compared about the the XXXX. of first XXXX. from to quarter $X.X $XXX,XXX. margin operating million of XXXX income XXXX approximately of the $X.X million million was first first $X.X the While were in positive, in for were G&A to approximately

consulting million, quarter are quarter expected of to and were was El QX Income approximately TRS XX-K in with this to in first similar the of our the incurred Mexican due to expense Quevar regulations same approximately $X.X slightly at due our XXXX Care comply XXXX profitability XXXX higher and tax which the filings. continue forward. at the order several Velardeña required to accrued to level the going in new of of entities. the than first $X.X additional XXXX for Expenditures of costs prepare for XXXX that in expenses was year million, was S-K of maintenance $X.X just million under quarter to

margin XXXX. throughout operating Rodeo positive continued expect from We

$X,XXX an $X day million approximately future and we of and million levels between XX-Q of per As margin of gold of operating margin higher approximately our for compared tonne noted XX-K which prices of silver. lower is both in operating estimating assumes levels, filing filing, per slightly full grades X.X levels. ounce, than This for XXX This price below $X tonne year for estimate current $XX XXXX per with to gold silver our throughput slightly current and assumes is the tonnes grams of plant which recent are X and grams per ounce, per a XXXX.

$X.X during about cash QX $XX,XXX $X.X million flow and last in to Spending of XXXX. with quarter compared to Net on $XX.X negative XXXX the cash. items of was VAT million inventory first quarter for significantly the year in an with spent million of dropped capital receivables. only increase has due quarter compared ended primarily spent to off We the

be over spending $XX average ounce around million to in balance who XXXX. The projects over prices assume $XX gold and of December metal months silver, the projections March turn call $XX any to restart cash remain for exploration the take and Velardeña $X,XXX Assuming on expect the million debt ounce on form now equity XX costs $X received XX, Fabled from projection through we financing. I the with include does potential of mine. to depending the per operator your the for associated payment back per other questions. our XXXX, scheduled will cash next of These will or million to not

Operator

you. Thank

of our Global Sekelsky from first now will Partners. Jacob Instructions] We Alliance [Operator with conducting be questions come the session. Our line question-and-answer

Jacob Sekelsky

So that building mining with we at before Velardeña, of the results end activity starting bit. just off should QX? there just then the a test expect And

mentioned, you mining activity see being Velardeña BIOX you at while plant begin the to we need to prices is Warren, for metal think, I will constructed? what

Warren Rehn

into test Yes, our completed Jake, be of the expect to we should June. about thanks for those the June. public actually them the end QX in I fast. is that And midst We of mining question, there and have results appreciate results We're the out But holding being you to space. able testing here. timing might talk It toward now. the in get be earliest when

test. it or at I so, it's days and about XX-day about for think XX-odd a been we've

doing hand well everything we're to have plugged know we models to dilution. should we So controlling into firmly what in back in do and need quite our terms of if

expect that definitely will have to I around it might but can't QX. be before be it of end So earliest QX, right promise time that frame,

key For We to in silver the price an BIOX price lead, gold it's up get gold silver. a before has proceed need concentrate do really silver, ounce interesting so the Jake, been on pricing some so, and really, for $XX second make the and we to run. we over enough based that of the part the really question, get lead sustained but the it

Board okay get to start, to think, can there. approval it be So require get assuming we I that, will we'd but

Jacob Sekelsky

That's I curious mine I'm do and of it for but what's there. there's Okay. further rest you Yoquivo? helpful. both then thoughts at this on quarters, know any at exploration, guys the your of year, the plan Rodeo? you think a have Rodeo for extended like just And just on extension by looks couple life opportunity And

Warren Rehn

drilling did in we QX. Yes, additional the some

It'll reported going don't a the results. huge have it model probably really I think model, put We incremental. to significant haven't still be update. those change. a will We're into be

It's year. bit do do at until in Rodeo to We to on during expect the deposit. get don't We don't it sometime of a away. need really southern the XXXX. there We more right end little the drilling

to a we Plus But budget life at let's exploration the southern open so. open. or exploration that Rodeo extending some So The do quarter there's as X, of that still. the for put targets we'll other may the off of that's we depending is still still to bit. on say, there nearby have mine get another deposit results possibility is end

I firm Now see well. looks information we've drill how Yoquivo, planned like meters But first be what until think drilling about with. there. definitely now, X,XXX at we'll enough is looking doing have about, and we to enough let's resource update, continue to to there information that to to to that we goes. say. think, the We'll try resource start a put drilling And Yoquivo, out We're we're resource a get

Jacob Sekelsky

Congrats, again, on a quarter, guys. good

Operator

Ihle Heiko with Wainwright. of Our line come H.C. next questions from the

Heiko Ihle

reads of was any one ones the the Opening inflation you mean, over Can guys mitigate X% you please? report CPI April. like stuff. that, wage are with also I'm just cost the just that maybe inflation, were done just inflation? number steps today, various inflation. newspaper, when about -- well but you're mean all of I some about the to seeing you're forms maybe And the and assays, obvious What with I of of through for go again is inflationary also then not talking once pressures, kind through that duration going and

Warren Rehn

it's expect. you a as might -- It's great a that's Well, evolving, question. Yes.

wages nonunion pressure both We and year. an had of are inflationary last seeing about Mexico. We increase X% the internal Mexico CPI have did for employees. union in to wage

you So only some to starting diesel we substantially inflation will. in for up And to in the if we're direct and cost we increased The just gone gas operation. showing cost starting do worldwide now to our in see are show since pump costs gas are at supplies. But starting see any That's oil of the the service certainly some or up. used shortage, that structure. have kind up

but But the what do up, and will the basically you go of it manageable. you push Prices can they're extent think go So I to costs inflationary is back up. There's operation think I nothing that cost eventually, it, compromise. can can anticipate about we will will about outrageous overall still you the you to pressure. have reflect

Heiko Ihle

general, about no Building obviously. care or that idea. my on absolutely answer. that besides in particular, any have talking question there in a slightly mean, on Fair last little higher I assume inflationary wages impact am, for and I impact on nothing, essentially bit, be maintenance security Is expenses? and Velardeña should I staff staff right? I truly the

Warren Rehn

rip make Yes, sure are bulk them security cost the in off the to the that the maintaining cost no of integrity comes is basically. of and used one plants not of that

And see provider. immediately. from so basis costs we do on an it don't get security annual increased We our

the and cost, with of Heiko. our We provider, a care security new that contract bulk haven't but gotten that's maintenance

updated other XXXX, for increased The see it on parts on for type the yes, consulting to, of report related example, some we'll that. the are a filing, of cost It's S-K the basis.

So that's increases. not they're major direct. But more

show over rates those for up, think time, maybe I about but the security especially inflation lag, add the contract.

Heiko Ihle

Okay.

to not lagging the by, same it's guess, So be say that a see XXXX we'll it's lagging numbers it year, fair I right? may that fully given

Warren Rehn

Yes. Yes. About the a the renew contract change we is when year an which opportunity after security will prices increased to example, annual the on that seeing contract, is a for with start we prices year. only once

Operator

of Fundamental line Our Sid next Rajeev from come Research. with questions the

Siddharth Rajeev

I company-specific Warren, Warren, macro have results. of to questions. see a I question a may, QX and couple I'm pleased the If

and supply of all In at prices way? in terms current any is is the affecting macro, disruptions Golden going all on, the that

Warren Rehn

of of Sid? supply terms In materials,

Siddharth Rajeev

In mining for terms at in operations? processing anything related, you sourcing or materials of or affected all your are

Warren Rehn

Well, have we're change caused seeing time any some shortages we but our longer haven't operation. in that had lines, any

the lines like products, we that steel as those liners. time at and things to especially orders looking significant assuming the stainless mill steel for to for of for go in construction We're I We see products, construction BIOX some delays longer some schedule. ahead. seeing getting anticipating placed plant early possible not for as longer are as so expect have we're example, advance, the in lines time

Siddharth Rajeev

was increase by much call in the lower have How were surprised rates I QX? despite I that in increase mentioned in results, QX you rates specifically recoveries to significant know your recovery With it. in our Got so grades. last you declined. able QX,

Warren Rehn

the silicification, is case an where usually It's gold deposits. particular grades. of strong of that the not have the related precious metals with is But case we circuit. a the is the where this the lower more of we deposition the very of silicification, this the at mineral. strong silica, interesting deposit, aspect ideal strongest and in to silicification basically ore that lower recovery gold higher gold of grade which we Sid, where the see very -- cause deposit in recovery in have than And see highest we Rodeo It's encapsulation the the

so tails actually There's silicification. when not little recovery. the So we a strong better get bit, grade there's gold off as less encapsulation,

And on which is what little it's explaining will to recovery is why So gold grades the inverse bit no we XX% behavior grade an have, going of this be relationship, because the the interesting more versus that's in year average, recovery than my expect lower. a opinion. forward

Siddharth Rajeev

debt? that might the you Velardeña, from financing And small it. on then be coming have for seems do to Got just like financing. Will it a

Warren Rehn

of be We're although forward looking sale at combination all decisions, some of option, product. any And debt a financing. and made possibilities a think will the for I of small amount preferred haven't also we

favorite those yes, we'll one of -- haven't to to And a bit have have obviously, construction made the to either plant choices. for be yet. we income would complete a cash BIOX to able decision So we little forward. the But be go decision the once on the additional need additional X

Siddharth Rajeev

Got it.

more on El from one Barrick thing. Just Quevar? Any update

Warren Rehn

Nothing.

what a year that. have difficult. make at date depending them start do drilling holes to year. haven't still expect some in exactly Going permits going there some beginning forward, into little drill drill for at, this a winter bit which, I Quevar, hand. plan But they're gotten expect available drilling they results and We're drilling a together have elevation put I from year. them the They their up to it. El this on this to I firm can

going with for still timetable they're their the firm nothing So terms drilling. earning forward but in of the

Operator

time. you. the I'd There closing for no over call Karen to are Thank further this Winkler to at questions turn any comments. like back

Karen Winkler

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

Operator

This today's your appreciate We participation. you. does conclude Thank teleconference.

at of You this the day. your your rest may disconnect lines Enjoy time.

Golden Minerals (AUMN) 11 May 222022 Q1 Earnings call transcript