Tuesday, September 27, 2011 10:46:48 AM
Cananccord Update of Golden Minerals (AMEX:AUMN; TSX:AUM)
Golden Minerals Company | Nicholas Campbell, 1-604-643-7027
AUM:TSX : C$13.72 | C$428.1M | Speculative Buy , Target C$30.00
Merger with ECU complete; maintain SPECULATIVE BUY with a target price of C$30.00, down from C$36.50
Investment recommendation
We maintain our SPECULATIVE BUY recommendation with a target price of C$30.00, down from C$36.50.
Investment highlights
With the closing of the merger with ECU Silver, the development of the Velardeña project in Mexico is to be prioritized. A preliminary economic assessment (PEA) is expected to be completed in 2012 with the objective of developing a 2,000 tpd underground mining operation capable of producing 5 million ounces of silver-equivalent per year.
The drilling and drifting work at the El Quevar project has demonstrated the potential to develop the mine with bulk tonnage mining, potentially using open pit mining on the eastern and central portions of the Yaxtché deposit and bulk underground mining in the western portion of the Yaxtché deposit. A PEA on the El Quevar project is expected in 2012.
Valuation
With Velardeña in the pipeline, Golden Minerals has one of the most aggressive silver growth profiles in the junior silver space. We estimate that AUM could produce 8.5 million ounces of silver-equivalent by 2015. With two projects to finance and develop, we have increased our discount rate to 10% from 7.5% previously. We continue to value the shares of Golden Minerals based on a 0.80x multiple to our peak silver estimate of NAVPS (10%, US$45/oz Ag) of C$37.74, down from C$45.66 previously.
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Recent AUMN News
- Form 8-K - Current report • Edgar (US Regulatory) • 10/01/2024 09:28:04 PM
- Golden Minerals Signs Definitive Agreement to Sell Its El Quevar Silver Project • Business Wire • 09/27/2024 07:02:00 PM
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 09/16/2024 08:00:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/16/2024 07:36:47 PM
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 09/09/2024 09:23:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/09/2024 07:51:50 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/06/2024 02:56:07 PM
- Golden Minerals Announces Intent to Sell El Quevar Silver Project and Provides Corporate Update • Business Wire • 09/03/2024 10:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/16/2024 09:04:46 PM
- Golden Minerals Reports Second Quarter 2024 Financial Results • Business Wire • 08/14/2024 10:45:00 AM
- Golden Minerals Announces Chief Financial Officer Retirement and Appoints New Chief Financial Officer • Business Wire • 08/05/2024 10:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/02/2024 08:36:53 PM
- Golden Minerals Provides Corporate Update • Business Wire • 08/01/2024 10:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/16/2024 05:01:04 PM
- Golden Minerals Announces Closing of Sale of Velardeña Mine and Associated Facilities and Delay of Closing in Sale of Velardeña Oxide Plant and Water Wells • Business Wire • 07/15/2024 10:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/09/2024 08:21:21 PM
- Golden Minerals Receives Continued Listing Standard Notice From NYSE American • Business Wire • 07/09/2024 10:45:00 AM
- Golden Minerals Announces CEO Retirement and Replacement and Board Changes • Business Wire • 06/18/2024 10:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/14/2024 08:05:50 PM
- CORRECTING and REPLACING Golden Minerals Reports First Quarter 2024 Financial Results • Business Wire • 05/14/2024 01:56:00 PM
- Golden Minerals Reports First Quarter 2024 Financial Results • Business Wire • 05/14/2024 10:45:00 AM
- Golden Minerals Announces Sale of Velardeña Assets and Unifin Settlement • Business Wire • 05/10/2024 10:45:00 AM
- Golden Minerals Announces Return of El Quevar Silver Project • Business Wire • 03/27/2024 10:45:00 AM
- Golden Minerals Reports Full Year 2023 Results • Business Wire • 03/19/2024 10:45:00 AM
- Golden Minerals Announces Passing of Director W. Durand Eppler • Business Wire • 03/05/2024 11:45:00 AM
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