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Last week was the spot to buy according to the daily and weekly!
The weekly chart is looking much more bullish...
Well off that low seen in November... No December news.
I think the true bottom has been seen: + 5.13%
I strongly believe we have seen the bottom... the market will tell us.
http://seekingalpha.com/article/1001981-is-the-recent-destruction-of-golden-minerals-share-price-justified?source=yahoo
Is The Recent Destruction Of Golden Minerals' Share Price Justified?
by David Vengerov
November 13, 2012
Looking at the Golden Minerals (AUMN) chart since September 13, you would think that their mine had caved in or someone had stolen all the cash they had in the bank. What has actually happened, however, is they raised $37M by issuing 19% more shares at $5.75, with investors buying those shares hand-over-fist, in a single day, as a great bargain. In my previous article I explained why the issuance of extra shares at $5.75 does not imply that the fair value of the stock has to drop to $5.75. In fact, such an issuance might actually increase the fair value of the stock, if it increases the expected future cashflow for the company (which it did in the case of AUMN, as the newly raised cash will allow them to perform the production expansion to 850 tpd throughput and beyond in 2013).
The company filed a 10-Q report (quarterly earnings) on November 9, so maybe some horrible news was hidden in that report, which was anticipated by the market? I looked through it carefully and couldn't find any bad news there. In fact, the company stated that they raised an extra $2M by selling some non-essential exploration properties, for which they did not have any development plans and which most of the investors have not even heard of. No production delays were announced -- they are still planning to achieve the 850 tpd throughput in 2Q 2013 and then spend the whole 3rd quarter producing at that rate. No cost increases were announced either. In fact, the company stated:
Assuming metals prices of $30.00 per ounce of silver and $1,500 per ounce of gold during the fourth quarter 2012 the Company expects to generate a negative gross margin, which the Company defines as revenue from the sale of metals less costs applicable to the sale of metals (exclusive of depreciation), of approximately $1.0 million during the quarter.
In the previous 10-Q form they wrote that a $4/oz increase in the price of silver (from $25/oz) and a $250/oz increase in the price of gold (from $1500/oz) will, combined, increase their gross margin by $2M over the 3rd and the 4th quarter (with most of the increase coming in 4Q because of its higher production). Thus, at the current silver and gold prices, the company might actually generate a positive gross margin in 4Q, which will keep increasing in the future quarters. What's not to like about it?
It is a total mystery to me why AUMN's stock got thrashed since September 13, while the junior gold mining ETF (GDXJ) is only down slightly over that time frame. If anyone can find a fundamental (not technical) reason for what went wrong with AUMN's business since September 13, please comment below.
I've been looking at the junior mining space for a number of years now, and I've seen many examples when some stocks get "forgotten" for several months. After that, they always catch up to where they are supposed to be. For example, the mining sector bottomed on May 16 and over the next two weeks GDXJ rose 10%. AUMN, however, went down 10% between May 16 and May 31. If you weren't watching AUMN back then, you can probably imagine how it felt for those who were long AUMN -- it felt like AUMN was a worthless stock that just kept going down even when the whole sector is moving up! It feels just about the same now, right?
Well, after that, in 4 days, AUMN went up 60%. Who is to say the same thing will not happen soon? There is a saying: "Good things happen to cheap stocks." AUMN is unreasonably cheap now. Actually, after the November 9 drop it went beyond unreasonable. So if you have patience to wait for a few months, then you should be able to make good money by going long AUMN now, since stocks do not stay unreasonably cheap for a long time.
Fundamentally, Obama's re-election gives a green light for the precious metals to rally to new highs, since unlike Romney, Obama did not even mention that his policies are intended to balance the US budget. Continued budget deficits will keep increasing the Debt/GDP ratio in the US, which will keep pushing gold and silver up. This is the main factor in play here -- all else is noise in the long term.
Technically, if you look at the one-month intraday price chart of the iShares Silver Trust (SLV) at Google Finance, you'll see that $31.5 was a "line in the sand", which first acted as a support (on October 15) and then acted as a resistance. Last week SLV rose above that line, which suggests that the pullback in SLV might be over. If SLV/GLD rally to new post-QE3 highs, then that should light a fire below forgotten stocks such as AUMN. So position yourself ahead of the crowd and wait for "good things to happen to a cheap stock."
Disclosure: I am long AUMN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Amazing... A new multi-year closing low on the weekly chart...
Link to September 2012 Investor Fact Sheet:
http://www.goldenminerals.com/pdfs/GLDN_InvestorKit/Golden-Minerals-Fact-Sheet-Sept-2012.pdf
I believe this s/p is THE buy zone...
Hard to believe that this share price is in the $3 range... unreal for such a steady producer.
Golden Minerals Provides First Half 2012 Production Results for Velardena Operations
GOLDEN, CO--(Marketwire -07/19/12)- Golden Minerals Company (AUMN) (AUMN) (AUM.TO) ("Golden Minerals" or "the Company") today provided production results for the three and six month periods ending June 30, 2012 as well as an update for the Velardeña Operations, located in Durango State in Mexico.
During the second quarter 2012, the Velardeña Operations had payable production of 1,500 ounces of gold and 90,000 ounces of silver, as compared to 1,700 ounces of gold and 110,000 ounces of silver in the first quarter 2012. First quarter payable production included a positive adjustment of 10,000 ounces of silver from prior periods. In the first half of 2012, payable production was 3,200 ounces of gold and 200,000 ounces of silver. Additionally, the Velardeña Operations had payable production of 200,000 pounds of lead and 300,000 pounds of zinc in the second quarter, and 400,000 pounds of lead and 600,000 pounds of zinc in the first half of 2012. The Company does not plan to provide further production guidance until additional mine development has been completed.
Production during the first six months was negatively impacted by less than planned mine development due primarily to delays in the arrival of underground mine equipment from Argentina and by plant optimization efforts. Nearly all of the equipment from Argentina has now arrived at Velardeña or has been shipped, and the Velardeña Operations are no longer constrained by the lack of underground mining equipment. Mine development, which should permit the Company to open new stopes for mining in the fourth quarter 2012, and ramp-up of production are underway as planned.
As previously announced, the new Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Velardeña Operations prepared during the quarter by Chlumsky, Armbrust and Meyer ("CAM") demonstrates significantly higher grades with fewer tonnes than previous estimates, resulting in relatively the same measured and indicated resource gold and silver ounces as the prior estimate. The new estimate of inferred resource is reduced from the previous estimate as a result of a conservative geostatistical approach for classifying the inferred category. Most of the previous inferred resource is now classified in the potential category.
Although the range in the potential category is similar to the previous estimate of inferred resource, potential cannot be considered in a NI 43-101 Preliminary Economic Assessment ("PEA"). The Company is also considering various options for the long term expansion of Velardeña. The Company has therefore determined that preparing a PEA at this time would not accurately reflect what management believes to be the potential of the Velardeña deposit.
Golden Minerals is continuing to ramp up production at the oxide and sulfide plants to achieve the combined design capacity of 850 tonnes per day, anticipated during the second quarter of 2013. Studies to determine the optimal plant throughput and to evaluate alternatives and timing for possible expansion beyond 850 tonnes per day are ongoing. Potential plant expansion is subject to the availability of funding.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardeña Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina. For additional information please visit http://www.goldenminerals.com/
http://finance.yahoo.com/news/golden-minerals-provides-first-half-151000321.html
Short position of AUM (AUM.T) increases....
Short History
Three month view
Date, Volume, change, %of float
2012-07-15 155,536 15,871 0.41
2012-06-30 139,665 4,374 0.37
2012-06-15 135,291 7,873 0.36
2012-05-31 127,418 -50,482 0.34
2012-05-15 177,900 34,997 0.47
2012-04-30 142,903 -4,819 0.38
2012-04-15 147,722 10,151 0.39
Rec'd via email....
MIDAS Alert: So Far Tonite Gold And Silver Doing Just What They Should Be Doing
Date: 7/3/2012 1:09:59 A.M. Eastern Daylight Time
Le Metropole Members,
We shall see how this plays out tomorrow and ahead of
our July 4th holiday in the US. But, for now, and you
know I don't do this very often, gold and silver are playing
out to script. The price of gold is $1602 and the price of
silver is $27.65 ... which means both precious metals
are catching bids in Asia.
What I mean by playing out to script is that I have NEVER
seen so little excitement about gold and silver following
the MEGA moves we had on Friday. In my book that sort of
reaction is unprecendented. As you ALL know, this has
me pounding the table that much higher moves are imminent.
This may be the proverbial kiss of death ... me putting this
out ... but, if The Cartel is so infantile, so be it for
a few more days. My assessment is either right, or
wrong.
The key, and one which suggests a Gold Cartel retreat, will
be when gold takes out $1608 and silver blows through
$27.95. That was mentioned with emphasis in MIDAS.
In terms of the shares, the HUI needs to blow through 432
to get back on solid ground. On that note, some of you
might want to look at the technical picture of one of the
worst investments of my life, but one that I still believe
has home run potential and that is Golden Minerals, which
took over ECU Silver. The price of this takeover stock
is back to where it was when I first bought ECU in 1999.
And that is with XYZ good stuff happening and the price of
silver going up 800%.
In NO WAY am I suggesting anyone buy this dog (which is
still my largest holding), but please view it in the
context of a Gold Cartel retreat. Today Golden Minerals
mysteriously rose substantially while the HUI, gold, and silver did nothing.
See...
http://www.stockwatch.com/Quote/Detail.aspx?symbol=AUMN®ion=U
This beaten up wreck of a stock is now at the top end of
a yearly downtrend line which began after ECU Silver merged
with Golden Minerals. It was supposed to be a merger of
mutual interests and turned out to be a merger of mutual
stink up the place ... at least in terms of what the stock
price did.
The merger price was 20 and now Golden Minerals has rallied
to a pathetic $4.76 per share.
Why am I going there? There is no doubt in my mind that
this stock is part of a grand gold/silver share price
manipulation scheme ... one that dates back to JP Morgan
borrowing shares from the Oppenheimer Gold Fund more than
five years ago, which was PUBLIC INFORMATION.
My gut tells me The Gold Cartel is about to retreat and
there will be no better indication (TO ME), of a Gold
Cartel retreat than if this stock can blow to the upside
and take out $6 resistance. If so, then this share price
could go bonkers as the share manipulators are forced
to cover!
This is NOT to suggest anyone buy this stock, but to
watch its price action as to whether this MIDAS analysis
is on the money in a bigger picture gold/silver share stock sense.
Funny enough, I always avoided conspiracy theories
about JPM going after me because of my sponsorship of ECU,
now Golden Minerals. BUT, as a result of what has been
brought to my attention of late, I know think they might be right.
Time will tell. Tomorrow's action will be brief, but most
enlightening.
Bill Murphy
Short position of AUM (AUM.T) decreases....
Short History
Three month view
Date, Volume, change, %of float
2012-05-31 127,418 -50,482 0.34
2012-05-15 177,900 34,997 0.47
2012-04-30 142,903 -4,819 0.38
2012-04-15 147,722 10,151 0.39
2012-03-31 137,571 3,205 0.36
2012-03-15 134,366 2,732 0.35
2012-02-28 131,634 -15,584 0.35
Golden Minerals Announces Sale of Platosa Royalty for $2.4 Million and Engages Canaccord Genuity for the Sale of the Zacatecas Land Package
GOLDEN, CO--(Marketwire -05/31/12)- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM.TO) is pleased to announce the sale of the Company's 1% net smelter royalty interest in the Platosa property to Excellon Resources Inc. ("Excellon") for US$2.4 million. The Platosa property, which is located north of Torreon, Mexico, is a silver, lead and zinc mine owned by Excellon. At current metal prices, the Company was realizing approximately $400,000 per year in royalty payments. Closing of the transaction is anticipated within thirty days with an effective date of June 1, 2012.
Additionally, Golden Minerals has engaged Canaccord Genuity to solicit purchasers for the Company's land package in the Zacatecas mining district just north of the city of Zacatecas, Mexico. Golden Minerals controls approximately 15,000 hectares of mining claims in the district containing key portions of recognized vein systems. A data room for prospective buyers will be open in June. Interested parties are asked to contact Craig Warren, Managing Director - Investment Banking -- Canaccord Genuity, at (416) 869-7316.
The Company also announced other progress toward the overall rationalization of Golden Minerals' exploration portfolio. In Mexico, in addition to the engagement of Canaccord Genuity for the Zacatecas package and the sale of the Platosa royalty, the Company has closed its regional exploration office in Guadalajara along with commensurate reductions in staff. Approximately 21,000 hectares of properties have been optioned to other companies and an additional 54,000 hectares will be dropped by July 1. In Peru, the Company has farmed out the Palca property in Puno with the counterparty entitled to earn 60% over a three year period by spending $2.5 million. The Company avoided a $1.0 million property payment by returning the Cochabamba property to the vendor as drilling did not produce results that warranted taking the project forward. Staff reductions in Argentina have reduced an additional $500,000 per year of ongoing expense.
Jeffrey Clevenger, Chairman, President and CEO, commented, "Our agreement with Excellon is step two in our exploration rationalization program. We previously announced that Golden Tag, our partner at the San Diego property in Durango State, Mexico, would carry the cost of moving that project forward. We will have more to report about our exploration activity as the year progresses and we are pleased with our efforts to date with the objective of establishing Golden Minerals as an internally funded entity."
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardeña Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina. For additional information please visit http://www.goldenminerals.com
Contact:
Golden Minerals Company
Jerry W. Danni
Executive Vice President
(303) 839-5060
http://finance.yahoo.com/news/golden-minerals-announces-sale-platosa-110000437.html
China's SHFE silver futures contracts expected to have impact on global market
The Shanghai Futures Exchange's silver futures contracts, the first of their type to be offered in China, give Chinese investors a new way to bet on the precious metal.
by Shivom Seth
Monday, 28 May 2012
MUMBAI (MINEWEB) -
In a move that will make the silver market more liquid, the Shanghai Futures (SHFE) has begun trading in silver contracts. The contracts are expected to be bullish for silver prices, with traders stating that it could make market manipulation more difficult.
Although the country is a main producer and consumer of silver, it has remained on the sidelines in silver trading. By initiating silver futures, traders say China clearly wants more control over the precious metal's pricing policy.
Chinese investors have been showing an increasing interest in the white metal amidst surging inflation and the sluggish performance of the stock and property markets. In March, about 134 billion yuan ($21 billion) in silver contracts were traded, more than 15 times the amount traded two years ago. More than gold, many retail investors prefer silver because the minimum requirement for investing in it is much lower in China.
The white metal is imbedded in the Chinese psyche. For long, it has been the basis of China's currency. In 1935, the Shanghai-based biweekly Finance and Commerce reported personal hoards of the precious metal at 1.27 billion ounces.
With the Shanghai Futures Exchange gaining approval to begin trading silver futures, traders insist a significant shift appears to be in the making.
Wang Ruilei, an official with precious metals trader CGS Company told newswire agencies that the market would be bigger and more liquid with the advent of the futures contracts. Traders added the futures exchange would provide direct access to silver for Chinese investors.
It would also be beneficial to silver enterprises and industries as the metal would now be available for trading, hedging and buying at their local exchange and in the local currency.
Huo Ruirong, vice manager of the Exchange was quoted by newswires as saying that the new trading option would provide China with a pricing mechanism on silver and help readjust the silver industry structure.
This is at a time when China is believed to have exceeded Peru and Mexico to become the world's leading producer of silver. The country is also the second-largest consumer of the precious metal after the United States. It is also, of course, now the world's leading producer of gold too.
Regulators in China are hoping to see more than just investors benefit from this new trading vehicle. At the inauguration ceremony, Liu Xinhua, Vice Chairman of the China Securities Regulatory Commission, pointed out that this year, they were keen to implement the spirit of Premier Wen Jiabao's 2012 missive to "secure introduction of ...commodity futures and financial derivatives, in order to enhance our overall competitiveness and meet the real economy needs to provide more tools and instruments''.
He said the silver futures market would be conducive to optimising the silver price formation mechanism and provide low-cost, efficient means of risk management.
Liu Xinhua stressed that the silver futures play, from the listing to mature and play features, would require a gradually cultivated stance, and was no overnight decision. He added the move would help the Shanghai Futures Exchange strengthen market surveillance and effectively guard against market manipulation and other illegal activities.
INVESTMENT INTEREST
Investment in silver has been booming in China. An early indication was the trading volume of silver forwards on the Shanghai Gold Exchange, China's only exchange for the precious metal, which surged 751% in 2010 as compared to a year earlier. Also, the volume in September last was more than six times that of the same period in 2010.
There already has been a marked increase on the Shanghai Gold Exchange, where the silver turnover has soared, averaging about 1,300 metric tonnes daily. In a briefing to its clients last week, Union Bank of Switzerland (UBS) said it was a notable improvement as this was the first time since December last year that the five-day moving average volume was consistently above 1,000 tonnes for nearly two weeks.
UBS told its investors that the additional platform for trading silver in China, with the silver exchange, could well have rekindled investor interest, offering the possibility of arbitrage opportunities, particularly given the added incentive of relatively cheaper margin requirements on the exchange.
Data showed on the first trading day of the exchange, the benchmark listing price was $979.77 per kilo ($30.47 an ounce). According to statistics released by the Exchange, the first batch of eight listed futures contracts received the accumulative amount of 349,100 hands (contracts).
The contracts are to be traded in yuan. The price fluctuation is set to be limited to 5% per day, while the minimum margin requirement is 7% of the contract value. By the end of the first day, the daily transaction volume was about 260,000 hands.
Commodity futures exchanges transaction data found that silver futures turnover has risen over the past 2 weeks and is just behind copper trading.
Commercial banks are also said to be getting in on the act.
In August last year, Industrial and Commercial Bank of China Limited, China's biggest lender, launched paper silver trading for individual investors. Other banks followed suit. The trading volume of Industrial paper silver products reached 300 tonnes within six months, almost four times the figure for the whole of 2010.
Though Barclays Capital had earlier noted in a research note that silver prices are to remain volatile, and that Chinese silver imports were down about a third for the year up to April, traders said Shanghai futures trading could mean additional investment demand for silver, in a similar manner to investor interest in gold.
This would also initiate movement from some Chinese concerns who are keen to pick up silver projects and companies abroad, as they have been doing with gold deposits and companies, said traders
http://www.mineweb.co.za/mineweb/view/mineweb/en/page32?oid=152217&sn=Detail&pid=102055
Golden Mineral's Corporate Presentation for May, 2012
http://www.goldenminerals.com/pdfs/GLDN_InvestorKit/Golden-Minerals-Corp-Present-May-2012-NYHA.pdf
Short position of AUM increases....
Three month view
Date, Volume, change, %of float
2012-05-15 177,900 34,997 0.47
2012-04-30 142,903 -4,819 0.38
2012-04-15 147,722 10,151 0.39
2012-03-31 137,571 3,205 0.36
2012-03-15 134,366 2,732 0.35
2012-02-28 131,634 -15,584 0.35
2012-02-15 147,218 16,718 0.39
Fwiw, a tale of two posts (from the AUMN board at SH)
some thoughts on todays resource news
posted by GWR1 on May 18, 12 12:37PM
I was expecting more. It seems they have taken a let's start over approach which I had some fear of given what they stated in the press release a few weeks ago and how these sort of merger deals work out with the new guy always dissing the old guy and wanting a low base to build the business from which makes them look better in the next year, I had hoped that AUM management was above this approach, it seems not.
I have been through this before and it takes me back to 2005, not my idea of going forward. I spoke to previous ECU management and they are shocked at this approach. It's like they decided to make this as low as possible and then go higher from here. They couldn't have gotten these numbers any lower if they tried and I'm not happy about it.The cut-off grades and dollars used are also much lower than necessary again suggesting the ultra-conservative approach taken.I understood they were using a different methodology than Micon but this is absurd in my view and Micon is a large world class firm and I don’t even know who these CAM guys are.
It looks like only the veins with drill holes are being used plus some production stopes and mostly only the Santa Juana mine and only level 12-18 with little to no statistical spread, projections and variance allowed. A simply stupid approach for a large resource with the continuity demonstrated time and again at Velardena, in my view, and unbelievably backward when the resource exists as suggested in the potential numbers provided.
The good thing is this is bare bones and grades are much higher and no base metal credits included nor any San Diego and I expect not much if any San Mateo, Teneras, etc. I am now taking the same ultra-conservative approach as the company in now valuing the company having adjusted my target price to a $400 million market cap for a 12 month target, this is down from a 12 month $900 million target. This gives a higher value to the Velardena resource (higher grades, actually mining) than El Quevar because Velardena has 2 producing mills with increased production guidance and no value for any other assets (none for San Diego or over 80 other exploration properties or cash). I'm not happy about this bottom basement resource assessment approach and think it is 100% wrong when you have a huge resource, as resource matters to me as much as 3-5 year production forecast.
They are now using the Great Panther approach, measure only close to production resources and value based on production only. This is one of the reasons I sold Great Panther long ago because they had a tiny resource and weren't building it higher making me wonder if they could build it higher.I know it’s much higher at Velardena having been there and thoroughly reviewing the mine and all data sets and mills and knowing the work Michel/Steve put in along with Bill Lewis from Micon.
I remain fully vested and no intention of selling as there is too much value and upside in Golden Minerals.
http://agoracom.com/ir/GoldenMinerals/forums/discussion/topics/532636-some-thoughts-on-todays-resource-news/messages/1683445#message
~~~~~~~~~~
Re: some thoughts on todays resource news
Posted by Silverbull50 on May 18, 12 01:28PM
GWR1 and I have alot of respect for each other and there are often points we agree with and some we occasionally disagree with.
Since 2008, and the JPM annihilation of gold/silver, I have disappointedly felt that the market no longer gave explorers credit for the resource. Case in point, the day ECU reported 431 million silver-equivalent ounces, I believe the stock went up merely 1 cent! Furthermore, some very credible analysts give no credit for the inferred category.
After the massive takedown in 2008, the market suddenly became focused on cash, cash flow, etc. and thus explorers without production were hammered! Fortunately, Michel Roy realized the necessity of obtaining the Hecla oxide mill, even as costly as it was to the stock (Thanks to Blackmont's corrupt sales desk and hedge fund partners in crime).
Now, focusing on this Valardena resource report, it is my understanding that Micon allowed a very wide 400-500 meters inclusion to a drill hole, whereas CAM only allowed 100 meters. It is a different methodology and I'm told by mgmt that most engineering firms are more conservative like CAM.
Management makes it very clear that one study is not right and the other wrong, just a different methodology. Management is also very clear that they KNOW the resource is huge and that there will be production from Valardena for decades. Perhaps all of the 431 million ounces are there on top of the 1/2 billion "potential" that Micon included. So, this may all be moot! However, it could not have been included in this report without drilling many more holes and spencing millions of precious dollars. This is also why management abandoned drilling the Massive Sulfide Zone--it would be expensive, it would not have been available for production for another 10 years, and the market probably would not have given any credit for it.
Management realizes that all the market cares about is production and cash flow. So, instead of spending money on additional drilling, they will put every dollar toward Valardena's production.
Lastly, I still believe that Gilder Gagnon has been the major seller this week and is probably cleaned out. Since they have been selling for a year now, I don't attribute this last million share sale to any "knowledge" of the pending resource news, however one never knows what the shorts might have ascertained. My guess is that the company was planning on delivering the report by the end of the month but was advised to submit the PR immediately with all the volatility and inquiries.
I'm glad it is out and anxiously await production enhancement, supported/funded by property asset sales. This progress will drive AUMN back up much higher.
Silverbull50
http://agoracom.com/ir/GoldenMinerals/forums/discussion/topics/532636-some-thoughts-on-todays-resource-news/messages/1683466#message
Golden Minerals Announces High Grade Resource Estimate for Velardena Property in Durango, Mexico
Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) is pleased to announce the results of a Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Velardeña Operations in Mexico which was received yesterday, May 17th. The resource estimate has been prepared under the direct supervision of Robert Sanderfur, PE, of the firm of Chlumsky, Armbrust and Meyer (CAM).
The new resource estimate demonstrates significantly higher grades (approximately 50% on a gold/silver equivalent basis) than previous estimates.
The CAM measured, indicated and inferred resource estimate, which does not include the San Diego property, is shown in the following table:
----------------------------------------------------------------------------
Classification Tonnes Gold Silver Gold Silver Silver
(M) (g/t) (g/t) Ounces Ounces Equivalent
(M) (M) Ounces (M)
----------------------------------------------------------------------------
Measured & 2.3 3.46 195 0.3 14.6 27.6
Indicated
----------------------------------------------------------------------------
Inferred 3.1 3.33 159 0.3 15.8 32.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Range Tonnes (M) Gold (g/t) Silver (g/t)
----------------------------------------------------------------------------
High 27.9 3.4 210
----------------------------------------------------------------------------
Low 10.5 2.3 140
----------------------------------------------------------------------------
Fwiw, Vancouver (the TSX Venture Exch.) has been, by far, the worst performing stock exchange in North America for over a year now.
TSX Venture Exchange...Buy or Sell?
by Aaron Hoddinott
Pinnacle Digest
April 29, 2012
Fellow investor,
The TSX Venture has been the worst performing stock exchange in North America for over a year now. http://tiny.cc/obv3dw
For many companies on the TSX Venture, this is a time period filled with anxiety; much like it was in late 2008, the Venture has fallen to the hands of panic sellers. Investors are scared and have been thinking illogically for several months now. Companies that were being bought for $1.00 per share with heavy volume, just 12 months ago, are having a hard time finding bids in this market for $0.30. Volume and risk appetite have vanished. Again, this is similar to how it was in December of 2008 in that respect.
It's funny how quickly the psyche of investors can change. And this latest correction in the TSX Venture (a 1 year collapse in value of roughly 45%), is a testament to how powerful emotions are when it comes to moving markets.
This latest correction is the second worst (from a percentage standpoint) in the TSX Venture's history - yet commodity prices remain at historically high levels and the Dow continues to shake off all negative macro-economic data.
Venture investors are scratching their heads as to why this is happening.
The truth is that the TSX Venture has always been a boom/bust exchange. It's extremely volatile. The exchange has existed for 11 years and during that time, it has gone through 7 bear markets of its own (market downturns of 20% or more).
Let's think about the global economic situation for a few seconds. What has really changed in the last 12 months that would cause the Venture to lose 45% of its value?
Last year we were all well aware of Europe's debt crisis and the potential for it to spill into other countries. We were all well aware that America's national debt was skyrocketing out of control. We knew inflation was going to hit the world in a meaningful way (good news for commodity plays), but didn't know exactly when. We knew China's growth was going to temporarily slow down. Commodity prices were flirting with record high levels. Unemployment in the Western World was historically high. What's changed?
The answer is nothing. Uncertainty has hung around the market for a couple years now. The only thing that has changed is the date on your calendar. We are living in just as uncertain times as we were in April of 2011. As mentioned, this hasn't bothered the Dow Jones. It has continued its ascent to flirt with record highs. Meanwhile, the TSX Venture, an exchange that is heavily weighted in commodities, and more specifically, mineral exploration, has collapsed.
If you had been living under a rock for the last 12 months and woke up looking at a one year chart of the TSX Venture, you would make the assumption it has fallen because gold, copper, silver and oil have probably dropped in value at a rapid rate. This is of course, not the case. Sure, gold and silver have come off their record highs in 2011, but they still remain at historically high values. The miners of these two precious metals are making record margins. Fundamentally, that is fantastic news for the TSX Venture and the explorers which trade on the exchange. However, the reality is quite different than fantastic. Share prices of these exploration companies have been decimated over the last 12 months. This sell-off has been entirely fear driven. Uncertainty and long-term unknowns, in respect to many of the largest economies in the world, have taken the risk appetite out of the markets and left the Venture alone at the bottom of a dark hole.
Fear has taken over the TSX Venture and the last time that happened, the greatest buying opportunity of our lifetime knocked on the door.
The TSX Venture is Trading at the Same Level it Did Nearly 9 Years Ago
In October of 2003, the TSX Venture Exchange traded at the same level it does today. What's important to note about October 2003 is that gold traded for roughly $380 an ounce - it trades 425% higher today. In October of 2003, silver traded for about $5 an ounce - it trades 600% higher today. In October of 2003, a barrel of oil traded for $30 - it trades 320% higher today. In October 2003, Comex copper traded for $0.92 - it currently trades 415% higher.
Aside from these commodities trading near record highs (the main commodities the 1275 explorers/miners on the venture are drilling for), it has become increasingly difficult for explorers to make economic discoveries. Many of the world-class deposits are being mined right now because of the record high prices. Simply put, there isn't nearly as many world-class commodity assets on the globe as there were in 2003. So wouldn't it make sense that these companies, with proven discoveries, be valued higher in this market environment?
Fortunately for us bottom fishers, 'risk' has become a dirty word. This mindset has resulted in fire sale prices on many great investment opportunities within the TSX Venture Exchange.
As everyone already knows, the TSX Venture is predominantly a mining and commodity based exchange. Its value, historically, has risen and fallen with the price of commodities. There are 1,275 mining/exploration companies on the TSX Venture alone - no exchange on the planet even comes close to that amount. It's the 'go to' exchange when looking to invest in the next major discovery.
Looking Back on The TSX Venture's Many Downturns and the Amazing Opportunities That Have Always Followed
The TSX Venture is no stranger to volatility and sharp corrections. It's a small-cap exchange comprised mainly of exploration companies - both early-staged and advanced.
The exploration companies on the Venture don't cash-flow, that's not what they're about. These companies are about making discoveries and being bought out, or years later going into production and then cash-flowing. When a company doesn't cash-flow and only drills, it must regularly go to the market for financings. This creates uncertainty and volatility. This creates the fear factor we are seeing in the market right now. During uncertain times, investors are fearful that many companies on the Venture won't be able to raise capital and could potentially dissolve. This, in most cases, is an irrational fear. Many companies have deep pocketed management teams which can raise capital in any market. Some companies won't need to raise capital for another 2 years. Let's not forget that we recently came off the greatest rally in the TSX Venture's history (December 2008 - March 2011) and the fundamentally sound explorers were able to raise major cash at much higher levels than today. Many of these prudent juniors are sitting on several million dollars in their treasuries from previous financings.
Let's also not forget how nimble these junior explorers can be when hard times hit. These companies don't have hundreds of employees on the payroll. Drillers are typically on contract work and many of these junior explorers have a dozen full-time workers or less. A junior with a burn rate of half a million dollars a month can quite easily cut that down to $50k by stopping drilling during a down market. After all, as you will soon see, a typical bear market for the TSX Venture only lasts 5.8 months anyway.
Because of the Venture's capital intensive business models (particularly with its 1275 mining/exploration companies), it should come as no surprise that this exchange has experienced 7 bear markets (a correction of 20% or more) in its 11 year history.
Ten Year Chart for the TSX Venture - source: quotemedia.com
History of Major TSX Venture Corrections And What Followed
(I define a major correction as a 20% decline or more in the overall TSX Venture Index)
The TSX Venture officially formed in 2001. Its starting value was 1,000.
The TSX Venture's first major correction began on June 4, 2002 after it hit 1,244 (at that date it was a new all-time high). By October 30, 2002, it had bottomed out at 899.30 (losing 27% of its value). This marked a nearly 5 month long correction (downtrend). After bottoming out on October 30, 2002, the TSX Venture went on a 16 month rally and peaked out on February 17, 2004 at 1,931.61. This marked a 114% rally from bottom to top over that 16 month period.
The next significant correction occurred from February 17, 2004 through to July 27, 2004. This was when the exchanged collapsed from 1,931.61 to 1,467.59 - a modest correction in comparison to what we are seeing today. Over that 5.5 month period, the TSX Venture lost 24% of its value. However, once it bottomed out on July 27, 2004, it proceeded to go on an 8 month rally and touched 2,040.29 on March 7, 2005. This marked a 39% gain for the TSX Venture in that 8 month period.
The next significant correction was short-lived. The TSX Venture Exchange dropped from 2,040.29 on March 7, 2005 and bottomed out on May 17, 2005 at 1,593.63. This marked a 2 month decline of 22%. It was quite a vicious decline considering how quickly it happened. However, once the correction bottomed out, the TSX Venture went on a monster rally. After bottoming on May 17, 2005 at 1,593.63, the TSX Venture went on a 12 month rally to 3,292.49 (hit May 11, 2006). This marked a gain of 106% in a year.
Following that massive rally, the TSX Venture collapsed from 3,292.49 on May 11, 2006, to 2,322.48 on October 4, 2006. This marked a 5 month decline of 29.5%. However, following that correction, the TSX Venture rallied to all-time highs. It hit 3,369.79 on May 7, 2007. This marked a 7 month gain of 45%.
The next significant correction, after the TSX Venture hit an all-time high, was short and vicious. The TSX Venture went from 3,369.79 on May 7, 2007 to 2,445.23 on August 16, 2007. This marked a 3 month decline of 27.5%. However, following that correction, the TSX Venture rallied to 3,173.64 on November 6, 2007. This marked a 3 month gain of 29.5%.
The next significant correction was the worst any of us have ever seen, but it set up a golden rally for those that stayed at the table and kept buying. After hitting 3,173.64 on November 6, 2007, the TSX Venture went on a 13 month decline and bottomed out at 686 on December 9, 2008. This marked a 78.3% decline over a 13 month period. Great companies with world-class assets were deemed worthless by the market. What a mistake that turned out to be for those selling anywhere near the lows. After the TSX Venture bottomed out, it went on a 27 month rally and hit 2,439.83 on March 4, 2011. This marked a 255% gain in just over 2 years - the greatest rally for any of the major markets in North America during that time period.
The next significant correction for the TSX Venture is the one we currently find ourselves in. Although there was a short-lived rally at the start of 2012, the downtrend in the TSX Venture has been steady since March 4th of last year. Since hitting 2,439.83 on March 4, 2011, the TSX Venture has collapsed down to as low as 1333 on October 4, 2011 (it has been bumping along the bottom ever since). That marks a 45.5% decline from its March 4th 2011 value. That also marks the 2nd largest drop in the history of this exchange. Now, given that we have been bumping along near the bottom of this collapse for 7 months, one can argue that 'this time is different'. However, every time a market crash occurs, that argument is brought to the forefront.
Those are the statistics behind the 7 crashes the TSX Venture has experienced in its 11 year existence. Crashes and rallies are a part of its genetic make-up. No one will deny that it's a boom/bust index and if timed well (doesn't have to be perfect), it can make investors fantastic returns in very short periods. This is what will keep investors coming back to the TSX Venture - the greed factor. Let's look at the TSX Venture's historical averages:
Average loss (in percentage terms) during a correction (peak-to-trough): -36.25%
Average duration of a bear market in the TSX Venture: 5.78 months
Average gain after a correction (trough-to-peak): 98.08%
Average duration of a bull market in TSX Venture: 11.83 months
It can be argued which stage the Venture is in for its boom/bust cycle right now. However, historical statistics are showing us that at these levels, the Venture is looking like a buy. There is no doubt that volatility is going to be around for a long period of time (for all stock exchanges), but that isn't necessarily a bad thing.
Inflation is good for the value of commodities and the TSX Venture exchange is heavily weighted towards exploration companies. With growth stalling world-wide, global stimulus is inevitable in my opinion. QE3 will come in one form or another. Japan is already adding to its stimulus programs. The ECB has stated that more easing is needed and China is weighing options for further stimulus as well. With the UK officially entering a double-dip recession, it's likely to continue printing. This is all good news for commodity based investment.
Let's not forget about what tax season can do for smaller, illiquid stocks (ones that trade on the Venture). It's often overlooked, but the end of April is when personal income tax is due. Quite often at this time of year you'll see more pressure on the smaller exchanges because individuals need to cover tax burdens. Individuals (specifically the self-employed) are scrounging up some extra cash to pay the tax man right now.
Another bullish point to consider is that we are approaching drilling season for many explorers. Companies have either started drilling or will be soon thanks to the warmer weather and all the money raised over the past 18 months (which were strong periods for financings).
Drill results are coming...new discoveries are a guarantee in the next 3 months. The advantage for people like us is that we can get in before these results are produced; and we can do so for nearly 50% cheaper than 12 months ago.
An interesting statistic I found on the TSX website (TMX.com) was that "total financings raised in March 2012 was up 182% compared to February 2012 [for the TSX Venture]."
Could this be a sign that the smart money believes a bottom in the Venture has been established?
Rick Rule, one of the most successful junior resource investors on the planet, recently wrote an article titled "Why I'm Excited About This Gold Market".
Rick stated "As experienced junior gold speculators know, nothing adds to share value like discovery. Speculators will fondly remember hundredfold profits from discoveries like Diamond Fields and Arequipa. We are now truly in a discovery cycle, one fueled by sustained capital investments in unprecedented amounts. Better yet, we have been able to explore frontier terrain that was off limits due to politics or social turmoil. This will add spectacular real value, and this prospectivity is discounted in the current market."
He goes on to state "First, recognize that markets work, but only in the longer term. If you can't handle that, find another avocation. The cure for low prices is low prices; the cure for high prices is high prices. In order to sell high, you must buy low. What is the appropriate response to a strong market? Sell! What is the appropriate response to a weak market? Buy! Be a contrarian or be a victim."
As Rahm Emanuel said "A crisis is a terrible thing to waste."
Happy hunting,
Aaron
http://www.lemetropolecafe.com/toulouse-lautrec_table.cfm?pid=9965
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Golden Minerals Reports First Quarter 2012 Results
Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) announces first quarter 2012 results.
For the quarter ended March 31, 2012, Golden Minerals recorded revenue of $6.4 million from the sale of metals, reflecting a continued ramp-up in production at our Velardeña operations located in Durango State, Mexico. Revenue more than doubled from the fourth quarter 2011. Revenue net of cost of sales of $7.9 million at the Velardeña operations generated a negative gross margin of $1.6 million, which was less than the negative gross margin of $3.3 million recorded in the fourth quarter 2011. The Company's net loss for the first quarter 2012 was $10.1 million. In addition to the negative gross margin, the net loss included $3.4 million of costs related to mine development and expansion activities at the Velardeña operations, $2.4 million of exploration expenses, $1.4 million of expenses at the El Quevar project, $2.0 million of corporate general and administrative expenses, and $1.8 million of depreciation expense.
The Company previously announced its strategic focus for 2012, which includes plans to increase production from Velardeña incrementally. As part of this strategy, the Company plans to monetize where appropriate its large portfolio of exploration properties in Mexico, Peru and Argentina and reduce expenditures at other properties. Expenditures for El Quevar and our exploration properties were significantly lower in the first quarter 2012 as compared to previous quarters in 2011.
The Company's cash and short term investments balance decreased by $16.3 million during the quarter to $32.3 million as of March 31, 2012. The decrease is primarily due to the expenditures described above and to additional capital expenditures of $2.8 million and an increase in net working capital of $3.3 million, both primarily related to the Velardeña operations.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardeña operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina. For additional information please visit http://www.goldenminerals.com
contact:
Golden Minerals Company
Jerry W. Danni
Executive Vice President
(303) 839-560
Investor.relations@goldenminerals.com
(CLICK ON THE LINK BELOW TO VIEW THE CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)(Unaudited)
http://ih.advfn.com/p.php?pid=nmona&article=52349134&symbol=AUMN
hattip to checkmate 28 for the following post
AUMN, Golden Minerals. Was looking to understand the 2012 production decrease forecast, as I was thinking of adding yesterday. I called and spoke with Jerry Danni, Exec VP. Below is a cut and paste of my near current note sheet with updates from the conversation. I was told, the hold up of equipment would not in itself effect the previous 2013 production forecast, but that depending on cash, they may delay some of the expansion and that would effect the 2013 numbers. 600TPD current with 800 - 850tpd by EOY.
They will NOT be going to the market for cash and should be cash flow positive by EOY. Q1 results will be out this week with the most current cash position.
They are sticking with the strategy of moving from explorer to producer and will be brooming some more of their 80 properties. Particularity, their operation in Mexico will bring some real dollars to the company. I have a feeling, if they got enough cash, they might push the expansion to 2000tpd sooner.
I like their strategy to grow organically. They have more ounces than just about anybody, so they can afford to trade that for mill expansion CAP EX at VELARDEÑA
Below is just my updated notes to share:
Market Cap per AgEq M Oz .48 based on 213m MC
Large resource base 4 Properties
• 49M Oz M&I plus 443M Oz Inferred AgEq*
Attractive production/ growth profile
• Zero debt
45mill cash as of EOY 2012
VELARDEÑA NI-43 Update Q4 12
325 mill oz Ag eg 179gpt
2 mil oz Au 3.2gpt
Add Lead and Zinc
430 mil oz AgEq from 50% of property
Current Prod 600tpd 5-8-2012 Increasing to 800 -850tpd EOY
Production forcast
2012 740k Ag 9kAu 1.4mil Ag eq
2012 Revised 5/7/12 590,000 ounces
early 2013 1300tpd rate
Silver – 2 million ounces
Gold – 29,000 ounces
2013 3.6m Ag eq
2014 4.2m Ag eq
New exp to 2000tpd after
Checkmate28
#msg-75389063
An obvious ploy... dirty pool for dure.
Just what we didn't need.... more metals sector ETFs to siphon even more investment dollars directly from the miners and explorers than before!
New ETFs Backed by Industrial Metals
Rosalyn Retkwa
May 02, 2012
Not all that glitters is gold. There’s another family of metals that are precious for their industrial uses, most notably, copper, for which demand will once again exceed supply this year for the third consecutive year, due largely to demand from China. The International Copper Study Group (ICSG), in its annual forecast issued in April, is projecting a global shortage of about 240,000 metric tons over the next twelve months.
And investors in the U.S. might soon have a new way of playing the copper market if several proposed ETFs — backed by the physical metal stored in warehouses — are approved by the SEC. The concept is not completely new. There are physical metal ETFs for the four precious metals — gold, silver, platinum, and palladium. But copper could be the first physical industrial metal in the ETF market in the U.S.
The industry is betting that J.P. Morgan Commodity ETF Services, which was the first to file for a physical copper ETF with the SEC in 2010, will also be the first to hit the market, possibly by June. Neither J.P. Morgan nor the NYSE will comment, but in early April, the NYSE made its own filing with the SEC, to list the new ETF on its Arca electronic trading platform, fueling speculation that SEC approval was near.
“This is a big move,” says Morningstar ETF analyst Abe Bailin in Chicago. “It’s not just another frivolous, ‘me too’ type of product. For the first time in the U.S. market, investors are going to be able to get exposure to physical copper, and that’s a ground-breaking thing,” he says, noting that it won’t be just accredited investors, but “Joe Six-Pack” as well.
BlackRock’s iShares also filed for a physical copper ETF with the SEC in September of 2011, and since it is in the quiet period, an iShares spokesperson said the firm would not comment on its proposed offering, either.
But perhaps most interestingly, ETF Securities, based in London, has filed with the SEC for a full suite of seven physical industrial metal ETFs in the U.S., including not just copper, but also aluminum, nickel, tin, lead, and zinc and a basket of all six. The firm already has experience with physical industrial metal ETFs in the U.K., where they launched the six individual metal ETFs in the latter part of 2010 and the first part of 2011, says Scott Thompson, the co-head of European sales for ETF Securities (U.K.) in London. In the U.K., the firm has yet to launch its physical basket ETF. That, he says, is the “last piece of the jigsaw,” where the firm is “still working on the logistics” of moving all the metals into a warehouse facility. In the U.K., ETF Securities also offers the more traditional futures-based industrial metal ETFs, including some index-based baskets, but “many investors prefer owning real assets,” he says.
That’s because the price isn’t subject to the supply and demand vagaries that sometimes afflict the futures market. (More on that in a second.)
Out of all the industrial metals, copper is the one that “most people focus on in connection with global GDP,” says John Hyland, the chief investment officer at the United States Commodity Funds of Alameda, California, which sponsors a futures-based copper ETF, the United States Copper Index (CPER). “If I told you that China’s GDP numbers had surprised on the upside, the Chinese might need lead for batteries, but most people trade copper,” he says. “Also, on the supply side, copper tends to be pretty constrained. You don’t have to worry about someone magically finding a new mine and doubling production” since copper is produced by just a few countries, notably Chile, he says.
The concept of warehousing copper to back up an investment product is somewhat controversial, says Wiktor Bielski, the London-based global head of Commodities Research at VTB Capital, the Russian investment bank. “Demand from China is very strong, with Chinese imports up more than 30 percent year over year, over the last five months,” he says. “There has been a significant drawdown of available copper inventory, so to use some of the remaining metal to back an investment product is just an inappropriate use in my view,” he says. In effect, Bielski fears that the ETFs will lead to hoarding.
Hyland says “the hoarding argument is illogical,” because investors who wanted that copper could simply buy shares in the ETF and redeem them for the physical copper. He notes that “you can do it for [the physically backed] gold, though no one ever does.” Hyland concedes that “maybe on the margin,” the physical copper ETFs “might push prices up a bit by making it more awkward to get copper, but you’d have to look at the prospectuses and see what rules they have about redemption [for the physical], and how it works.”
The main concern about warehousing copper is the cost of storage because unlike the precious metals, copper is big and bulky. “It costs roughly 1.5 percent of the current price of copper to store it each year, and when you add on the management fee and any insurance, it can get pretty expensive,” says Eric Dutram, the ETF strategist for Zacks Investment Research in Chicago. But, he adds, the counterpoint is that the returns on futures-based ETFs can be impacted negatively by “contango,” when the near-month futures are cheaper than those expiring further out into the future. That means that as the ETF “rolls” its expiring contracts, it has to sell low and buy at a higher price. (The opposite, which is favorable to investors, is called “backwardation.”)
ETF Securities says that at the moment, despite the costs of storage, its physical copper ETF is outperforming their futures-based copper ETF. In part, that’s because “there is only a modest difference between the cost of physical storage (around 1.6 percent per annum), and the most recent [futures] roll cost, which was around 1 percent annualized,” said Martin Arnold, the firm’s London-based head of research, in an email. The physical ETF has also been outperforming because of the difference between the cash settlement price on the London Metal Exchange (LME) versus futures prices, he said.
Arnold also notes that in recent months, copper prices have been rising because LME inventory levels are low. Currently, the LME has 256,275 tons of copper in inventory, a decline of 53 percent from the February 2010 high of 549,725, he said.
In a recent web-based presentation to investors, Arnold also noted that BREE, the Australian government’s Bureau of Resources and Energy Economics, “forecasts copper prices to average $8430 in 2012,” and predicts that copper prices will “strengthen by around 5 percent to $8830 per ton in 2013, reflecting the increasing tightness of the physical market.”
Copper came close to a high of $10,000 a ton in 2011 — once, in February, and later, in July, Arnold said in a follow-up email. But copper is also off its recent low of about $7,000 a ton in September 2011, he said.
It’s worth noting that the ICSG, in projecting its deficit for the next 12 months, also saw the possibility that the three-year long copper deficit could be reversed in 2013 because of “increased output from new and existing mines.” In its April report, it said that “based on initial projections, refined copper production could exceed demand by about 350,000 tons” in 2013. But it also said that “numerous factors,” ranging from possible “European Union sovereign debt issues,” to “political disturbances in the Middle East and North Africa,” to “production shortfalls owing to labor unrest, utility and capital shortages and technical factors create significant uncertainty.”
http://www.institutionalinvestor.com/Article/3021584/New-ETFs-Backed-by-Industrial-Metals.html?ArticleId=3021584&single=true
Golden Minerals Provides Update of First Quarter Production and Full Year Guidance for Velardena Operations
GOLDEN, CO--(Marketwire - May 04, 2012) - Golden Minerals Company NYSE Amex: AUMN) (TSX: AUM) ("Golden Minerals" or "the Company") today provided an update of first quarter 2012 production at the Velardena Operations along with updated production guidance for full year 2012.
First quarter 2012 production from the Velardena Operations was better than the preliminary results previously reported. Payable production for the quarter totaled approximately 1,700 ounces of gold and 110,000 ounces of silver, exceeding guidance by approximately 30% for gold and 22% for silver. (my bolding for emphasis)
Production guidance for the remaining three quarters of 2012 has been updated, with a slight increase in anticipated gold production and a decrease in anticipated silver production. Payable silver production for 2012 is now expected to be approximately 590,000 ounces, as compared to previous guidance of 740,000 ounces. Payable gold production guidance is now approximately 9,400 ounces, as compared to previous guidance of 9,000 ounces.
The decrease in anticipated silver production during 2012 is primarily the result of a six month delay in the planned arrival of underground mobile mining and ancillary equipment, including loaders, trucks and drills that are no longer required at the El Quevar project. Due to customs delays in Argentina, the equipment which was expected to arrive in January 2012 is now expected to arrive at the mine site in June. This delay has reduced the amount of mine development completed, which has in turn delayed access to stopes with higher grades and delayed further reductions in dilution. Gold production is forecast to remain near previous guidance as the Company expects to be able to use the new bulk flotation process being installed at the oxide plant, planned to come on line in July, to improve gold recoveries more than originally anticipated.
The following table shows updated actual gold and silver production for first quarter 2012 and updated guidance for full year 2012.
- Calculated using a silver to gold ratio of 50:1; does not include lead or zinc----------------------------------------------------------------------------
Q1 2012 Full Year
Actual Q2 2012 Q3 2012 Q4 2012 2012
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Production (payable metals)
----------------------------------------------------------------------------
Gold (oz) 1,700 1,700 2,200 3,800 9,400
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Silver (oz) 110,000 110,000 160,000 210,000 590,000
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Silver Equivalent (oz)- 195,000 195,000 270,000 400,000 1,060,000
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Golden Minerals Investor Fact Sheet ~ April, 2012
http://www.goldenminerals.com/pdfs/FactSheet-April-2012.pdf
Golden Minerals Reports Increased Production and First Quarter Results for Velardena Operations
GOLDEN, CO--(Marketwire -04/10/12)- Golden Minerals Company (AMEX: AUMN - News) (TSX: AUM.TO - News) ("Golden Minerals" or "the Company") is pleased to report first quarter 2012 results for the Velardeña Operations that continue to reflect significant operational improvements and the ramp up of production. From January 1 through March 31, 2012, month over month during the quarter, gold production increased by approximately 25% and silver production increased by more than 40%.
First quarter 2012 payable production totaled 1,500 ounces of gold and 95,000 ounces of silver, exceeding guidance by approximately 15% for gold and 6% for silver. Silver equivalent production for the quarter, calculated based on only gold byproducts (excluding zinc and lead) and using a silver to gold ratio of 50:1, totaled 170,000 ounces. Also during the first quarter, the Velardeña Operations had payable base metals production of approximately 200,000 pounds of lead and 275,000 pounds of zinc.
The following table shows actual precious metals production compared to guidance for January through March 2012 and our previous guidance for the remainder of 2012.
--------------------------------------------------------------------
Q1 2012 Q1 2012 Full Year
Guidance Actual Q2 2012 Q3 2012 Q4 2012 2012
--------------------------------------------------------------------
Production (payable metals)
--------------------------------------------------------------------
Gold (oz) 1,300 1,500 2,000 2,600 3,100 9,000
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Silver (oz) 90,000 95,000 150,000 230,000 270,000 740,000
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Sweeeeeeet release!!!
Golden Minerals Announces Significant Increase to Indicated Silver Resources for the El Quevar Project
GOLDEN, CO--(Marketwire -04/10/12)- Golden Minerals Company ("Golden Minerals" or the "Company") (AMEX: AUMN - News) (TSX: AUM.TO - News) is pleased to announce a Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the Yaxtché deposit at the Company's El Quevar project in the Salta Province of northwestern Argentina.
The combined open pit and underground mineral resource set forth in the tables below contains an indicated resource of 7.1 million tonnes grading 141.3 grams per tonne (g/t) silver for a total of 32.0 million ounces of contained silver and an inferred resource of 6.2 million tonnes grading 152.3 g/t silver for a total of 30.2 million ounces of contained silver at variable cutoff grades. The total ounces of indicated resource increased by over 250% from the previous NI 43-101 resource estimate for the El Quevar project.
Jeffrey Clevenger, President and CEO of Golden Minerals, commented, "We are delighted with the increase in indicated silver at El Quevar as it demonstrates the potential of the district. Recent drilling supported our premise that the bulk of the deposit is in the underground western zone of the Yaxtché trend and that it is more robust than the Eastern zone where thin high grade tension fault mineralization combined with mineralized wall rock should make an attractive open pit opportunity. In combination, the Eastern and Western zones of Yaxtché demonstrate an attractive silver deposit."
The Yaxtché deposit is currently the main target of interest at the El Quevar project. The Yaxtché deposit remains open laterally to the west. The El Quevar project area contains other targets that have not yet been fully tested.
The mineral resource estimate utilizes preliminary mining shapes and conceptual economic factors and assumes open pit mining on the eastern and central Yaxtché deposit and bulk underground mining on the western portion of the deposit. Previous estimates for the El Quevar project did not consider mineable shapes or conceptual economic parameters and are considered geologic mineral inventories. The combined mineral resource estimate is based on technical information available at February 9, 2012 and was calculated based on a three year average silver price of $24.42 per ounce.
----------------------------------------------------------------------------
Combined Open Pit and Underground Mineral Resource
----------------------------------------------------------------------------
Resource Class Tonnes Ag grade Contained Ag
----------------------------------------------------------------------------
(000) (g/t) Ounces
----------------------------------------------------------------------------
Indicated (Oxide + Sulfide) 7,053 141.3 32,042,209
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Inferred (Oxide + Sulfide) 6,193 152.3 30,168,119
----------------------------------------------------------------------------
----------------------------------------------------------------------------
In-Pit Mineral Resource
----------------------------------------------------------------------------
Resource Class Cutoff Grade Tonnes Ag Grade Contained Ag
----------------------------------------------------------------------------
(Ag g/t) (000) (g/t) Ounces
----------------------------------------------------------------------------
Indicated (Oxide) 30.9 1,861 109.2 6,533,544
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Indicated (Sulfide) 21.3 2,146 109.4 7,545,014
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Total Indicated 4,007 109.3 14,078,558
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Inferred (Oxide) 30.9 766 101.0 2,486,643
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Inferred (Sulfide) 21.3 1,248 99.2 3,981,170
----------------------------------------------------------------------------
Total Inferred 2,014 99.9 6,467,813
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Underground Mineral Resource
----------------------------------------------------------------------------
Resource Class Cutoff Grade Tonnes Ag Grade Contained Ag
----------------------------------------------------------------------------
(Ag g/t) (000) (g/t) Ounces
----------------------------------------------------------------------------
Indicated (Sulfide) 75.0 3,046 183.4 17,963,651
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Inferred (Sulfide) 75.0 4,149 177.7 23,700,306
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Golden Tag and Golden Minerals Amend San Diego Joint Venture Terms
GOLDEN, CO--(Marketwire -03/28/12)- Golden Tag Resources Ltd. (TSX-V: GOG.V - News) and Golden Minerals Company (AMEX: AUMN - News) (TSX: AUM.TO - News) jointly announce the signing of an amendment to a 2005 Joint Venture Agreement ("JVA") governing their San Diego silver exploration project. Golden Minerals holds its interest in the JV through ECU Silver, now a wholly owned subsidiary. Under the JVA amendment, Golden Tag has acquired the right to increase its interest in the JV to 60% by solely funding US $3 million of additional exploration expenses within the next 24 months. In order to increase to 60%, Golden Tag must incur and solely fund at least US $1 million of exploration costs in the first 12 month period and at least US $500,000 of costs in each of the final two six month periods. Golden Tag will become the designated operator of the JV for the additional programs and beyond as long as it completes the required funding in a timely manner. Under the 2-year amendment, exploration costs by Golden Tag are optional, except for mandatory costs related to keeping the property in good standing. As part of the JV amendment Golden Tag and ECU Silver have enhanced the mutual piggyback rights contained in the JVA so that each party has the right to require the other to include it in a transaction involving a direct or indirect sale of 100% of the San Diego project if the transaction meets certain minimum requirements and in addition Golden Tag can require that ECU participate in such a sale.
Golden Tag President Marc Carrier commented, "We are pleased with this amendment which allows Golden Tag to prioritize the San Diego silver project for the benefit of both companies. We believe that the next $3 million spent in exploration may prove pivotal in understanding the San Diego deposit and we look forward to aggressively advancing the next phases of work."
Golden Minerals CEO Jeff Clevenger said, "This amendment to the JV agreement is the first step in Golden Minerals' announced strategy to reduce or monetize our exploration efforts outside of core assets. San Diego is a large system and the project is now set to advance with Golden Minerals maintaining a significant interest going forward."
About Golden Tag
Golden Tag is focused on exploration for high-grade gold and silver deposits. Exploration projects are being advanced on the San Diego silver project in Durango State, Mexico; the Aquilon gold project in James Bay, Quebec and the Verneuil gold project in Quebec. Golden Tag also has interests in the McCuaig gold project in Red Lake, Ontario. Golden Tag has 53,426,558 issued and outstanding shares and has no outstanding debt.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardeña and Chicago Mines in Mexico and advancement of the evaluation stage El Quevar project in Argentina.
http://finance.yahoo.com/news/golden-tag-golden-minerals-amend-110000850.html
Silver: 'Banging the Close' of the Comex Session
Posted by Jesse
at 2:09 PM 20 March 2012
There was a fairly heavy-handed smackdown of silver into the close of the Comex day session.
Maybe four or five years from now the CFTC will do something about it as they did with the MF Global trader, who had been 'banging the market close' for a couple of years, when they wanted to show they were finally doing something about the markets.
Except he was just 'one of the usual suspects', and not too big to prosecute. And he was banging the metals up, which is counter to 'The Plan.'
Mind you, I'm not necessarily complaining. Just keeping the record straight, and making sure you all know about it so you can't say no one ever told you. And so when what happens, happens, you will know why.
Oh, you believe this price action?
And now, The Muppet Show.
http://jessescrossroadscafe.blogspot.com/2012/03/silver-banging-close-of-comex-session.html
Another interesting post found at the Aumn board @ Agoracom.com
Physical silver demand
Posted by Rich 9
on Mar 18, 12 12:15AM
Just a couple of anecdotes concerning the real world situation in silver as in products that have silver in them.
In the past few months two major japanese silver oxide battery companies, Maxell and Seizeken (Seiko) have increased the prices on most of their silver oxide watch batteries by anywhere as much as 80% to as much as 3 fold! Yes the wholesale price of some of their batteries have increased by over three times!
I asked the largest distributor/supplier of these batteries in North America, why MAXELL raised their prices and they told me because of the price of silver!
But apparently, according to some people ( Jeffrey Christian etc) there's supposed to be lots and lots of cheap physical silver around...hmmm
So if there's so much scrap silver around, why are Watch battery companies raising their prices so darn much and risking losing significant market share?
I realize there may be other factors to take into consideration but it makes you think..
Also, speaking of scrap silver, one Jeweller I spoke to (who is a big buyer of scrap silver from Antique stores etc.) says that there are not that many sellers of silver at this price .
I asked his opinion on the question of scrap silver (having an effect on the physical price of silver now and in the future) and his answer was:no...scrap silver is not a major factor, he doesn't believe that there are too many people willing to sell their family silver in the future. One reason he gave was that many large pieces of silver are in the form of artwork that are not for sale by people..These beautiful family heirlooms will not be melted down for the silver content that readily...
On a side note, he uses smelters in Italy to sell his silver to because North American smelters keep some of the metal as a too large of a commission for themselves.. I guess he's calling them crooks...lol
On the subject of gold...I spoke to the owner of an american company,who make acid solutions to test gold,so that jewellers can verify how much gold is in the scrap jewellery that they are buying off the public (10kt, 14kt, etc) and he said to me that he believes the sales of this solution,which has been booming until recently,will diminish considerably within less than a year.
He told me that many jewellers in New York city are of the belief that most of the scrap gold that the public can or will pawn off has been depleted....
A couple of excellent, timely AUMN related posts found on the Golden Minerals board @ Agoracom.com.
coming 43-101 reports
posted by gwr1
on Mar 16, 12 07:07PM
I just want to make clear to everyone that I expect significant increases in the Velardena resource in both inferred and M&I, a good increase in the El Quevar resource included both inferred and M&I and lastly a good increase in the San Diego resource later in April.
I know this story already has a large resource that is grossly undervalued versus our peers in all 3 of the above mentioned properties and I don't know if more will matter to this market but we will get more, lots more shortly and it matters big time to me and anyone who has any mining background or knowledge or understand what future value is based on or fundamentals. This doesn't mean it matters squat to HFT types or algorithyms or tehcnical investors andf their brain dead computer programs.
My interpretation is mostly my own, maybe, so take it for what it's worth. BTW, our President was very forceful in his recent speech at the BMO conference in Florida on how confident he is in the existing ECU inferred resource as I always maintained based on my knowledge of how it was calculated and criteria used versus peers, he also spoke very highly of how many additional holes El Quevar had versus the last resource estimate. His emphasis was really clearly communicated on the importance of increasing production and his confidence in his forecast. if I was a betting man I would surely expect an outperformance in production based on his confidence.
This story is the most undervalued of any I know on the board in emerging precious metals producers and this is about to soon change in my view and with a resource larger than most companies in our space. The stock valuation should be multiples higher right now and I expect we will see this in the next year or two with a good re-valuation higher coming shortly.
~~~~~~~~~~~~~~~
Re: coming 43-101 reports
in response to coming 43-101 reports by gwr1
posted by sketch
on Mar 18, 12 04:44PM
Hi gwr, I have been increasing my position over the past few weeks, partially due to the same expectations that you have emphatically stated.
Although I will be pleased to see an increase of the resource at Valerdena, especially in the M&I category, I will be most impressed if/when the company can continue to meet and hopefully exceed their forecast targets. This was something that the previous management had difficulty with, mainly due to the lack of available resources.
In early January, the company released news they had exceeded gold and silver production for Q4 by 30% and 114%, respectively. Subsequently, the share price almost doubled in value over the next few weeks.
The actual production values for Q4 were equal to the forecast values for Q1 of 2012, so we should easily exceed those forecast numbers for this current quarter, the question is by how much?
If the company can continue to exceed their targets, the rest should take care of itself. They have forecasted the following short term targets:
1.Updated NI 43-101 resource updates for Valerdenda and El Quevar by end of Q1
2.Production forecast for Q1 is 1,300 oz Au and 90,000 oz Ag and excluding base minerals
3.Valerdena to be operationally cash flow positive by mid-year 2012
The end of Q1 is only two weeks away!
http://agoracom.com
Golden Minerals Co. (AUMN) Short Interest as of 2-29-12
Golden Minerals Co.
AUMN ~ Amex
Settlement Date - Short Interest - Avg Daily Vol - Days To Cover
2/29/2012 2,641,466 257,567 10.255452
2/15/2012 2,561,513 218,184 11.740151
1/31/2012 2,472,875 324,864 7.612031
1/13/2012 2,343,799 359,685 6.516255
12/30/2011 2,368,552 236,676 10.007572
12/15/2011 2,251,305 264,019 8.527057
11/30/2011 2,369,213 344,365 6.879947
11/15/2011 1,800,125 266,267 6.760601
10/31/2011 1,729,609 263,428 6.565775
10/14/2011 1,802,018 248,226 7.259586
9/30/2011 1,990,786 359,619 5.535820
9/15/2011 1,830,617 441,253 4.148679
8/31/2011 991,215 124,962 7.932131
8/15/2011 860,375 137,570 6.254089
7/29/2011 834,621 94,692 8.814060
7/15/2011 859,750 87,803 9.791807
6/30/2011 937,458 288,612 3.248160
6/15/2011 303,733 92,183 3.294892
5/31/2011 295,818 58,204 5.082434
5/13/2011 280,024 95,175 2.942201
4/29/2011 228,215 131,891 1.730330
4/15/2011 234,171 168,692 1.388157
3/31/2011 212,865 95,783 2.222367
3/15/2011 157,378 75,379 2.087823
http://www.nasdaq.com/symbol/aumn/short-interest
Golden Minerals Reports 2011 Year-End Results
March 08, 2012 17:51 ET
GOLDEN, CO--(Marketwire - Mar 8, 2012) - Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE Amex: AUMN) (TSX: AUM) announces 2011 year-end results.
For the period January 1, 2011 through December 31, 2011, Golden Minerals recorded revenue of $1.8 million from the sale of metals and a net loss from operations of $62.7 million. The portion of the net loss related to the Company's mining operations totaled $6.1 million for the cost of metals sold, which included $3.8 million of write-downs of metals inventory to net realizable value. The remainder of the net loss included $27.3 million of expense associated with advancement of the El Quevar project, $17.8 million of exploration expense, $8.7 million of corporate general and administrative expenses and $7.2 million of costs associated with the ECU transaction, consisting primarily of professional fees and severance related costs for several ECU executives. Other income of $11.6 million related primarily to net proceeds received from the settlement of an arbitration claim.
The Company's cash and cash equivalents balance totaled $48.6 million at December 31, 2011. The decrease in cash and short-term investments in 2011 resulted primarily from the $67.1 million in expenses described above, $15.7 million advanced to ECU for operating costs prior to the business combination and $20.9 million following the ECU transaction to retire ECU's debt obligations. These expenditures were partially offset by the Company's receipt of approximately $30.6 million net proceeds from the private placement of common stock to The Sentient Group and the $11.6 million in settlement proceeds referenced in the preceding paragraph. If the Company achieves production in 2012 as projected in its recent guidance, and assuming that silver, gold, zinc and lead prices continue at current levels, the Company expects to have sufficient cash to advance its long term business strategy in 2012, including investing approximately $24 million in capital and development costs for the phased expansion at the Velardeña operations.
The Company has previously announced its strategic focus on increasing production from Velardeña with the objective of becoming self funding for future growth. As part of that strategy, the Company plans to rationalize its large portfolio of exploration properties in Mexico, Peru and Argentina with the objective of monetizing those properties where appropriate and reducing expenditures at other properties.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado, primarily engaged in the ramp-up and expansion of existing production at the Velardeña and Chicago Mines in Mexico and advancement of the evaluation stage El Quevar project in Argentina.
http://www.marketwire.com/press-release/golden-minerals-reports-2011-year-end-results-nyse-amex-aumn-1629969.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Click on the link below to view the MD&A (Management's Discussion and Analysis} in AUMN's Annual Report.
http://biz.yahoo.com/e/120308/aumn10-k.html
Golden Minerals Appoints Vice President of Exploration
February 7, 2012
GOLDEN, CO--(Marketwire -02/07/12)- Golden Minerals Company (AMEX: AUMN - News) (TSX: AUM.TO - News) ("Golden Minerals" or "the Company") is pleased to announce the appointment of Warren Rehn to the position of Vice President of Exploration. Golden Minerals also announces the planned retirement of Robert Blakestad, the Company's Senior Vice President of Exploration, effective February 29, 2012.
Mr. Rehn has 30 years of mineral exploration experience. He was previously employed by Barrick Gold Exploration, most recently as the Chief Exploration Geologist for the Bald Mountain and Ruby Hill Mines. In this position he was responsible for planning and supervising gold exploration programs for intrusion-related and Carlin style deposits, with recent significant discoveries at both mine sites. Prior to joining Barrick, Mr. Rehn was a consultant with Gerson Lehman Group and for 10 years was a co-owner in a specialty geochemical consulting firm. Mr. Rehn has also worked as an exploration geologist with Placer Dome Exploration, Bear Creek Mining, Cyprus Amax, Bema Gold, Noranda Exploration and Gold Fields Mining Corporation. He has considerable exploration experience in the United States, Canada and throughout Latin America. Mr. Rehn holds a Bachelor of Science Degree in Geological Engineering from the University of Idaho and a Master of Science in Geology from the Colorado School of Mines.
Mr. Rehn will assume his new position on February 13, 2012. His responsibilities will include managing all aspects of Golden's global exploration program. In addition, Mr. Rehn will lead Golden's efforts to rationalize the Company's exploration portfolio of approximately 80 projects in Mexico, Peru and Argentina. As was previously announced, the Company plans to monetize selected exploration assets to generate value as well as significantly reduce greenfield exploration expenditures going forward.
Jeffrey Clevenger, Golden Minerals Chairman, President and CEO, commented, "Warren has committed to aggressively move forward with rationalization of our exploration portfolio and is hitting the ground running. We are thrilled to have Warren join Golden Minerals and the experience that he will bring to the Company."
Bob Blakestad has elected to retire after a distinguished career as an exploration geologist in the mining industry. He was instrumental in the discovery of Golden's El Quevar project, and in assembling an impressive exploration portfolio for the Company. Mr. Clevenger commented, "Bob Blakestad has been a good friend and trusted advisor for many years. He has earned his well deserved retirement and all of us at Golden wish the very best for him."
About Golden Minerals
Golden Minerals is an emerging precious metals producer with a large silver and gold resource base in Mexico and a large silver resource base in Argentina. The Company, which is a Delaware corporation, is listed on both the NYSE Amex and TSX. Golden Minerals is primarily engaged in the ramp-up and expansion of existing production at the Velardeña Operations in Mexico and advancement of the El Quevar project in Argentina. The Company also has a large portfolio of exploration projects, including the advanced stage Zacatecas project in Mexico.
For additional information please visit http://www.goldenminerals.com.
http://finance.yahoo.com/news/Golden-Minerals-Appoints-Vice-iw-854534551.html?x=0
An interesting post purloined from Stockhouse....
AUN-Big move in the making
by gretzky31
2/1/2012 8:22:00 PM
470 reads | Post #30614532
Take a look at Aurcana, a silver stock that since 2009 has followed a pattern of run ups and then a period of consolidation followed by a run up in prices.
Take note of the fact that during each run up phase the advance is between 6-8 months in duration and the magnitude of price increases in each run up is that prices increase by about a factor of 5, from the low to the high. This can easily be seen on a log scale chart, utilizing a linear regression channel.
Based on this analyst you can project a high price in Aurcana ( AUN.V) of about $3.00 around July of this year!
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=AUN&t=LIST&m=30614509&l=0&pd=2&r=0
Comments?
(JV update) Golden Tag Resources Ltd.: Drilling Confirms Extension of South Corridor in Hole SD-11-46, San Diego Property, Mexico
MONTREAL, QUEBEC -- (Marketwire) -- 01/31/12 -- Golden Tag Resources Ltd. (TSX VENTURE:GOG) ("Golden Tag") is pleased to report the results from hole SD-11-46, the final hole of a 10,400 meter, Phase 5 surface exploration program on the San Diego Property, Durango State, Mexico. The property is a 50/50 joint venture between Golden Tag and Golden Minerals Company (NYSE Amex:AUMN)(TSX:AUM) headquartered in Golden, Colorado.
Hole 46 was drilled 150 meters to the east of the newly discovered South Corridor, host to the wide and strongly mineralized Trovador, Skarn and Lorenzo zones, to test for a possible eastern extension to mineralization. It is important that the results from this hole be viewed in conjunction with results from all holes from this phase 5 program as outlined in the Company's news releases of Nov. 15, 2011 and Dec. 12, 2011 available at www.goldentag.ca. Also available at the Company's website are additional detailed results from hole 46 and an in-depth presentation on the San Diego project. Hole 46 has confirmed the discovery of a new vein zone at shallow depths within the Central Corridor, the C2 Zone, as well as confirming the extension of the Trovador, South Skarn and Lorenzo zones within the Southern Corridor.
Significant Results from Hole SD-11-46:
CENTRAL CORRIDOR
(Mid-Zone)-- From 17.05 to 17.55 m: 0.5 m grading 1,510 g/t Ag, 0.30 %Pb, 0.40 %Zn,
and 0.57 %Cu (Veta SS)
-- from 49.35 to 52.02 m: 2.67m grading 519 g/t Ag, 1.50 %Pb and 1.89 %Zn
(Veta SS)
-- from 118.74 to 122.3 m: 3.56 m grading 177 g/t Ag, 1.48 %Pb and 1.47%Zn
(Canta-Splay Vein)
-- from 602.75 to 608.3 m: 5.55 m grading 77 g/t Ag, 1.53 %Pb and 2.20 %Zn
(Montanez-FW)
-- from 653.75 to 660.0 m: 6.25 m grading 56 g/t Ag, 1.13 %Pb and 1.62 Zn
(Montanez-HW)
-- from 724.4 to 733.20 m: 8.80 m grading 85g/t Ag, 2.71%Pb and 1.79 % Zn
-- from 1009.65 to 1017.35 m: 7.70 m grading 183 g/t Ag, 3.79 %Pb, 4.57 %
Zn and 0.75 g/t Au (Trovado-2)
-- from 1055.50 to 1066.15 m: 10.65 m grading 178 g/t Ag, 2.27 %Pb, 5.54
%Zn and 0.20 %Cu (Lorenzo-1)
-- from 1076.45 to 1081.40 m: 4.95 m grading 64g/t Ag, 1.08 %Pb and 1.24
%Zn (Lorenzo-1)
-- from 1117.6 to 1120.7 m: 3.10 m grading 92 g/t Ag, 0.68 %Pb, 3.46 %Zn
and 0.36 %Cu (Lorenzo-2)
-- from 1173.10 to 1173.60 m: 0.5 m grading 310 g/t Ag, 1.54 %Pb, 4.86 %Zn
and 1.86 %Cu (Un-named)
-- A new area to the south of the property where altered limestones
(Skarns) were identified in phase 4 (Hole -21A); and,
-- the area of the Porvenir Vein in the Northeast.
JP Morgan: "Operation Silver Slam"
Bix Weir
January 26, 2012
Scoreboard for the week: +4.83%
Liquid Silver Used to Print Electronic Circuits
by Jesse Emspak
Discovery News
Jan 16, 2012 03:10 PM ET
Image: University of Illinois / S. Brett Walker
Printing electronics just got a boost from the University of Illinois, where the latest in electric inks has been made from silver.
Jennifer Lewis, a professor of materials science and engineering, and graduate student S. Brett Walker described the new ink in the Journal of the American Chemical Society. Most inks for printing electronics have metallic particles in them. This ink is all liquid -- a solution of silver and ammonia. When printed, the liquid evaporates, leaving a trail of conductive material.
There are several big advantages over more conventional electronic ink. One is the size of the inkjet nozzle that can be used. Inks using particles require bigger nozzles -- on the order of a micrometer in size. The liquid silver ink requires much smaller nozzles -- 100 nanometers. It’s also easier to make than other electronic ink and it sticks to a wide variety of materials, including plastic, paper or fabric.
The other big selling point is temperature. A typical particle-based ink has to be printed at a relatively high temp in order to get good conductivity. That's why they aren't used on paper or some plastics. But the silver-based solution gets to its maximum conductivity at about 90 degrees Celsius, or about 194 degrees Fahrenheit. That’s warm, yes, but still cool enough to work most materials.
Also, while silver may sound like an expensive material, it’s been between $26 and $48 per ounce over the last year, and an ounce of silver would supply a lot of printing ink. The cost per unit volume would be comparable to that of printer inks sold today.
Sure, scientists have printing electronics onto flexible surfaces to make antennas, for example, and there are now even pens that can “write” circuits. But the silver ink gets us all one step closer to printing circuits using a simple desktop machine.
http://news.discovery.com/tech/liquid-silver-print-circuits-120116.html
Golden Minerals has updated their corporate presentation based on their most recent press release. The latest version of their slideshow presentation is linked below:
January 2012 Corporate Presentation
http://www.goldenminerals.com/pdfs/GLDN_InvestorKit/Golden-Minerals-Corp-Present-Jan-2012-FINAL.pdf
NYSE Amex: AUMN; TSX: AUM
Expert Analysis:
Daniel Earle, TD Newcrest (1/12/12) "Golden Minerals Company provided a comprehensive update for its Velardena operations in Mexico and announced plans to rationalize the company's large exploration portfolio; following Golden Mineral's merger with ECU Silver in September, production at Velardena has significantly exceeded both company guidance and our expectations. Golden Minerals produced 90 Koz silver and 1.3 Koz gold compared with our forecast of 22 Koz silver and 0.5 Koz gold and guidance of 42 Koz silver and 1 Koz gold."
Wayne Atwell, Rodman & Renshaw (1/12/12) "Golden Minerals Company reported operational improvements at Velardeña. . .payable silver produced from September to December (four months) ran 90 Koz vs. previous company guidance of 42 Koz, with gold production running 1,300 oz vs. previous company guidance of 1,000 oz. . .the company has made significant progress improving the head grade supplied to the oxide mill; it increased 70% over the grade in August. . .we are increasing our price target to $14.55/share from $13.63/share."
Jay Taylor, Gold, Energy & Tech Stocks (12/31/11) "Golden Minerals Company is in production and has a strong operating team that can be counted on to improve operations and produce efficiently going forward. Total resources (all categories) are as follows: 212 Moz silver, 2.1 Moz gold, slightly over 1 Blb lead and 1.2 Blb zinc. On a valuation basis, this looks like one of the least expensive new silver-gold producers, despite the fact that it has this very significant resource base, a very strong and proven management team and a very solid balance sheet with more than ample cash and no debt. For all of the above reasons, I am ranking this my number one silver stock pick for 2012."
http://www.theaureport.com/pub/co/763
I'm glad that these guys provided ECU with credit:
Thanks cork... swing by when you can as this is starting liftoff right now!!!
Golden Minerals Reports Significant Operational Improvements at Velardena and Company Strategic Direction
GOLDEN, CO--(Marketwire -01/11/12)- Golden Minerals Company (AMEX: AUMN - News) (TSX: AUM.TO - News) ("Golden Minerals" or "the Company") is pleased to report significant operating improvements at the Velardeña Operations, located in the State of Durango, Mexico, since the merger with ECU Silver on September 2, 2011. The Company also announced plans to rationalize its extensive exploration portfolio.
Velardeña Operations
Payable metals production for September through year-end 2011 exceeded guidance previously provided in September by approximately 30% for gold and 114% for silver, primarily due to the increase in head grades resulting from reduced dilution. The following table shows actual production compared to the previous forecast for September through December 2011. Also shown is the updated 2012 forecast production for gold and silver.
Full
Sep-Dec Sep-Dec Year
'11 Fcst '11 Act Q1 2012 Q2 2012 Q3 2012 Q4 2012 2012
-------- -------- -------- -------- -------- -------- --------
Production (payable metals)
Gold (oz) 1,000 1,300 1,300 2,000 2,600 3,100 9,000
Silver (oz) 42,000 90,000 90,000 150,000 230,000 270,000 740,000
This deal for Golden Minerals is fairly insignificant when lQQking at the entire AUM.TO ~ AUMN resource portfolio and gives AUM/AUMN exactly what the LOI agreement states, stock and NSR which can be paid in cash or stock. They can monetize the stock over time. Pretty standard stuff for option agreements.
Though I personally would hesitate to option any properties in such close proximity to Goldcorp's massive polymetallic Penasquito resource, it's fairly obviously these two properties aren't in any of Golden Minerals current plans. They have more than 40 other properties and one can expect to see more deals of this type over time as they determine where to focus their resources and what can be pursued and or developed in a reasonable time frame.... actually, a very good problem to have!
2012Aurion Acquires New Gold Projects in Mexico
January 09, 2012
Aurion Resources Ltd. ("Aurion") (TSX VENTURE: "AU") is pleased to announce the signing of a Letter of Intent ("LOI") with Golden Minerals Company whereby Aurion will have the right to earn a 100% interest in the El Teyra and Rubi-Esmeralda gold projects in Mexico as further described below. The acquisition is subject to exchange approval.
El Teyra Property
The El Teyra property covers 2768 hectares in Zacatecas State located approximately 30 km west of Goldcorp's multi-million ounce Penasquito gold-silver polymetallic deposit. The property is underlain by meta-sedimentary and meta-volcanic rocks cut by a series of northeast-southwest trending shallowly dipping (<45 deg) faults along which high-grade mesothermal style quartz breccias, veins and vein stockworks occur. The property has also seen little previous exploration and no drilling has been documented. Numerous small artisanal workings occur on the property.
Mineralization comprising quartz-iron oxide veins, stockworks and breccia zones up to 700 m long occurs along shallowly dipping faults associated with broader areas of silicification. Systematic rock chip/channel sampling by Golden Minerals over distances up to 700 m along strike yielded assays of nil to 56.6 g/t Au and 1355 g/t Ag. Golden Minerals collected a total of 1120 samples of which 170 samples assayed greater than 0.1 g/t Au including 83 assaying greater than 1.0 g/t Au and 20 assaying greater than 10 g/t Au over widths of 0.5 to 2.0 m. The best individual assays include 56.6 g/t Au and 54 g/t Ag, 44.3 g/t Au and 100 g/t Ag and 39.7 g/t Au and 490 g/t Ag, all over 1.0 m.
El Teyra bears similarities to Penoles-Newmont's multi-million ounce La Herradura gold deposit in northern Sonora, Mexico. La Herradura is a structurally controlled mesothermal-style gold deposit with mineralization controlled by low-angle structures.
As per the LOI Aurion has the right to earn an undivided 100% interest in the project subject to a 1.0-2.5% sliding scale NSR by issuing 600,000 shares in equal tranches over 4 years and maintaining the claims in good standing. A bonus payment of $1 million in cash or equivalent shares is due upon Aurion delineating a 43-101 compliant 1.25 million ounce gold resource. The NSR can be reduced by 1% by Aurion paying Golden Minerals $1 million if the price of gold is greater than $900. Should Aurion option the property to a 3rd party Golden Minerals will be entitled to 50% of any cash payments included in the deal.
Rubi-Esmeralda Property
The Rubi-Esmeralda project covers 4,030 hectares in Durango State, Mexico. The property occurs at the edge of a major basin and range, is underlain by Eocene volcanics and hosts a >4 km long northwest-southeast trending low-intermediate sulphidation epithermal quartz stockwork/breccia vein system. Limited previous exploration has been conducted, including 5 widely spaced shallow drillholes by Minera Hochschilde in 2004 and 4 other drillsites with unknown results.
The vein system comprises individual veins up to 3.5 m wide within a locally 10-50 m wide zone of alteration and stockwork veining. Surface samples collected along the vein by Golden Minerals assayed from nil to 4.2 g/t Au and 71 g/t Ag. A best assay of 4.9 g/t Au and 48 g/t Ag over 0.6 m was reported by Hochschilde from one of five widely spaced shallow drillholes completed on the property in 2004. A grab sample collected by Aurion from an old pit/waste dump on a mostly covered small 3rd party held internal claim assayed 20.4 g/t Au and 201 g/t Ag, indicating the property may have mineral potential beyond just the main Rubi-Esmeralda vein system.
The Rubi-Esmeralda vein system strikes parallel to the vein system at Aurion's La Bandera gold project located approximately 8 km to the east-northeast. The geological setting and style of veining exhibiting classic low temperature epithermal textures indicating a shallow depth of formation bear many similarities to the La Bandera vein system.
As per the LOI Aurion has the right to earn an undivided 100% interest in the project subject to a 1.0-2.5% sliding scale NSR by issuing 450,000 shares in equal tranches over 4 years and maintaining the claims in good standing. A bonus payment of $1 million in cash or equivalent shares is due upon Aurion delineating a 43-101 compliant 1.25 million ounce gold resource. The NSR can be reduced by 1% by Aurion paying Golden Minerals $1 million if the price of gold is greater than $900. Should Aurion option the property to a 3rd party Golden Minerals will be entitled to 50% of any cash payments included in the deal.
Aurion intends to compile and advance these projects with a view to securing 3rd party option/JV deals asap.
Other
Aurion is also pleased to announce that Francisco Vargas has joined Aurion as Exploration Manager, Mexico. Sr. Vargas is a geologist with 24 years experience in mineral exploration having worked extensively in Central America and Mexico, for companies including several years with Placer Dome. He was directly involved in the discovery of the Las Crucitas gold deposit in Costa Rica.
QA/QC
ALS Chemex, a certified commercial laboratory, performed the analytical testing at their facilities in Vancouver, BC. Gold analyses for rocks were by 30 gm fire assay with an ICP finish with trace elements by ICP.
About Aurion
Aurion is focused on early stage precious metals exploration in the Nevada, Mexico and BC. Its strategy is to generate or acquire early stage gold projects and systematically advance them to a stage which will attract potential joint venture partners.
Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this release.
On behalf of the Board,
Mike Basha,
President & CEO
http://www.aurionresources.com/s/newsreleases.asp?ReportID=500233
Silver 2012 predictions: What do you think - bearish or bullish?
By Commodity Online
Previous year has been a very mixed for Silver investors. By April it was very bullish for silver which rose 61% compared to the closing level in 2010. Silver suffered a setback in 2011, backtracking from a near-doubling in price during 2010, as worries about the global economy and a recent slide in Gold hurt demand. This is its first annual loss in three years.
Silver is now however well below the $30 mark and is thus over 10% in the red from its peak. The huge gains in the first 5 months of 2011 were completely erased in 7 months that followed. A significant setback for the silver bull!
So, how does the coming year look like? We must prepare ourselves as silver investors for the next 12 months and expect a similar volatility as we have seen in 2011? Where should you buy or where should you sell?
Most of you would have been bombarded with many 2012 predictions in recent days, with most predictions ranging from as low as $10 to as high as $50. The truth , however, is somewhere in between.
What do you think - bearish or bullish?
Here are some silver predictions for 2012:
David Morgan, publisher of Silver Investor, still believes silver price will go above $50/oz in 2012. He forecast $65–75/oz silver by the end of 2012.
David Morgan stated, “I don't see the silver price going above the $50/oz level in 2011. In other words, the top is in for this year, and has been for some time. I still believes silver price will go above $50/oz in 2012. I forecast $65–75/oz silver by the end of 2012. I don't foresee a big rush into price appreciation for gold or silver in the first quarter of 2012 (Q112), which is seasonal.”
Eric Sprott, chairman of Sprott Inc. stated, "I think the price should already be substantially higher, the trade should be 16:1 gold:silver ratio in 2012. That implies that at $1,600/oz gold, silver should be $100/oz. At $3,200/oz gold, silver should be $200/oz. The outlook for gold is phenomenal and silver is going to go up even faster. That is why I think that this next decade will be the decade for silver."
James West, the editor of The Midas Letter and portfolio advisor of the Midas Letter Opportunity Fund, isn't interested in timing the precious metals market—that's a good way to end up butchering perfectly good investments. He believes Silver price is going to be one-sixteenth of the Gold price so it's already undervalued by at least two-thirds. Gold and silver are both going to continue to appreciate. Also he agree with Sprott when he says that silver is going to outperform gold in 2012.
Bob Moriarty, founder of 321gold.com, argues that the Silver Gold ratio over 100 years has been 47:1—47 ounces of silver per ounce of gold. He believes that the ratio could spike to 100:1 during this financial crisis given that historically the ratio has always been higher in such situations.
Alasdair Macleod, Senior Fellow at GoldMoney Foundation, also expects silver to take some bold leaps in the year upon us. In lieu of a dying fiat currency, Macleaod believes silver and gold will undoubtedly take the reigns as the financial currency of choice as the purchasing power of dollars, euros, pounds, and other currencies wanes.
In these uncertain and changing times, more and more investors will be forced to invest their wealth in safer places. Macleod understands this, saying: “We don’t have very long left to live under fiat money. We’re on an accelerating road to a complete destruction of paper currencies, with only about two and half years left to go. The economic establishment is collapsing. On one hand it’s frightening, and on the other it’s very exciting.”
HSBC Securities has lifted its silver price forecasts for 2012 and 2013 amid expectations that strong bar and coin investment demand, together with growing interest in silver exchange-traded funds, will push the market higher. It now expects the silver market to average $34 a troy ounce next year, and $32/oz the year after–both of which are a $2/oz increase on HSBC’s earlier forecasts.
“Demand for silver will be sustained by global concerns about fiscal profligacy, political gridlock on dealing with the U.S. budget deficit, long-term sustainability of the U.S. dollar, potential inflationary consequences of highly accommodative monetary policies, and economic uncertainty. Coin and small-bar demand may moderate from current high levels, but remain strong, further contributing to silver price strength,” HSBC added.
http://www.commodityonline.com/news/Silver-2012-predictions-What-do-you-think--bearish-or-bullish-44826-3-1.html
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Welcome to Golden Minerals CompanyCorporate ProfileGolden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX. The company is focused on the ramp-up and expansion of existing production at the Velardeña Mining District in Mexico, which contains a significant high-grade silver and gold resource with associated base metals that remains open laterally and at depth. In addition, Golden Minerals has a robust portfolio of exploration projects, including the Project Evaluation stage El Quevar project in the Salta Province in northwestern Argentina and the Advanced Drilling stage project in Zacatecas, Mexico. Golden Minerals' exploration business strategy is to enhance shareholder value through advancing projects from discovery through development into profitable operating mines. The company owns and controls a large number of exploration properties located primarily in the high potential mining districts in Latin America. Golden Minerals is also actively pursuing growth through strategic opportunities, including acquisitions, joint ventures and asset consolidations. The company evaluates and pursues selected opportunities that can bring synergy to existing assets and leverage the strengths of its management team. The Golden Minerals management team has a proven track record in all areas of mineral resource development, including acquisition and exploration, permitting, construction, ramp-up and optimization of production, commissioning all aspects of operations, mine reclamation and closure. The management team has held positions with major mining companies throughout the world. Links:
The company history is in the filings such as the September 2011 acquisition of ECU Mining... click the links above. |
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