AUMN Golden Minerals. Worth a shot here and I just bought.
For a $20M MC YOU GET
53M Outstanding Shares (Never reversed)
2 mills in Mexico,
2 underground mines Mexico
127 M oz Silver NI43101 resource
Lots of new potential from exploration
El Quevar Argentina silver property with district potential
They've reopened their mine, revamped operations 180 degrees, hired a new work force, got new tech report, and are mining from an entirely diff area than before.
The companys guidance for Ve-lardeña’s indicates positive net CF from Ops mid-2015 (assuming prices of $17/oz silver and $1,250/oz gold). Anticipated output between 0.8 - 1.0 m AgEq and cash costs between $12 & $15
New Technical Report showed markedly higher silver and gold grades as compared to the previous (June 2012) NI 43-101 Technical Report; the 2015 report indicates silver grades as at December 31, 2014 in excess of 300 gpt and gold in excess of 4.0 gpt. Additionally, the 2015 Technical Report forecasts 2015 through 2018 cash costs per silver ounce, net of by-product credits, of $9.17.
Financial Outlook
At March 31, 2015, the Company's cash and cash equivalents balance was $6.1 million. Assuming metals prices of $17 per ounce silver and $1,250 per ounce gold and a positive operating margin of approximately $2.4 million from the Velardena Properties for the remainder of 2015, Golden expects to spend approximately $6.5 million during the remainder of 2015 on the following items and to end the year with a cash balance of approximately $2.0 million:
Im assuming metals prices can stay near the same and the companys operation can break even with the above changes.
Potential Catalysts
1)They have a cyanide leach oxide mill with a 550 tpd capacity that is idle and could provide a few diff opportunity:
A)Toll mine for other smaller companys,
b)Find feed from current exploration areas and truck it over.
C)Acquire smaller property's locally that are only economic for a company with a ready mill.
2)They have some good current exploration results that would weight in over time or better metals price.
3)Sell or JV ElQuevar
The bottom line, is that if they break even with the CF, while continuing to explor and reduce costs, they will have de risked the operation greatly. If an additional catalyst comes in, thats another bump in value. The NAV of the company is already many multiples of the MC. This company used to trade at $28
