![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Thursday, November 17, 2011 6:26:53 PM
Golden Minerals Co.
(AUM-T, AUMN-A) C$7.24
Velardena Meets its Maker
Event
We are initiating coverage of Golden Minerals (AUM-T, AUMN-A) with a
SPECULATIVE BUY rating and a target price of $14.00/share. Please see
our full initiation report, which we expect to publish later today, for complete
discussion and analysis.
Impact
Golden Minerals is an emerging silver and gold producer that is based in
Colorado and run by the former Apex Silver management team. The company
has a large portfolio of assets but its two principal projects are Velardena in
Mexico, which it acquired through a merger with ECU Silver Mining Inc. in
September, and El Quevar in Argentina.
At Velardena, the company is expanding the small scale production from its
oxide and sulphide mills with simple process control improvements while
mine output is expected to ramp up once development has been shifted out of
the veins and more working faces have been exposed. We forecast silverequivalent
(AgEq) production reaching a run rate of 1.6mm oz/year by Q4/12.
At the same time, the company is advancing a Preliminary Economic
Assessment on a major expansion project that we expect it to complete in
mid-2012. We anticipate a new 2,000-tpd mill generating incremental
production averaging 7.4 million oz/year AgEq at total cash costs of US$7/oz
AgEq after capital expenditures of US$225 million, commencing mid-2014.
In the meantime, we expect an updated resource from the company’s highgrade
El Quevar silver project in Argentina in Q1/12 and drill results that
could yield a discovery from its large Zacatecas property package in Mexico,
its Cochabamba project in Peru or its Atlas project in the Deseado Massif of
Argentina.
AUM has declined by more than 70% this year, and the company is now
trading at a discount to peers and its market cap prior to the merger of equals
with ECU Silver. We are initiating coverage with a SPECULATIVE BUY
rating and a $14.00/share target price, based on a valuation of 0.8x NAV5%
calculated at long-term prices of US$1,500/oz gold and US$30/oz silver.
GOLD & SILVER PICKS ON I-HUB
YOU'RE WELCOME, CLICK HERE
Recent AUMN News
- 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
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 10:18:30 PM
- Golden Minerals Stops Mining Operations at its Velardeña Properties • Business Wire • 02/29/2024 11:45:00 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 01:03:10 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/26/2024 07:53:16 PM
- Golden Minerals Begins Mining Operations at Velardeña Silver-Gold Properties • Business Wire • 01/23/2024 11:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/12/2023 02:26:17 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/07/2023 09:02:21 PM
- Golden Minerals Completes Sale of Santa Maria Gold-Silver Property • Business Wire • 12/05/2023 11:45:00 AM
- Golden Minerals Begins Producing Gold-Bearing Pyrite Concentrate at Velardeña • Business Wire • 11/21/2023 11:45:00 AM
- Golden Minerals Reports Third Quarter 2023 Financial Results • Business Wire • 11/10/2023 11:45:00 AM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 11/09/2023 09:32:04 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/09/2023 02:12:21 PM
- Golden Minerals Announces Closing of US$4.2 Million Public Offering • Business Wire • 11/08/2023 08:14:00 PM
- Form 424B4 - Prospectus [Rule 424(b)(4)] • Edgar (US Regulatory) • 11/08/2023 11:03:01 AM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 11/07/2023 05:15:26 AM
- Golden Minerals Announces US$4.2 Million Public Offering • Business Wire • 11/06/2023 02:15:00 PM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 10/25/2023 09:23:08 PM
Green Leaf Innovations, Inc. Expands International Presence with New Partnership in Dubai • GRLF • Jun 24, 2024 8:30 AM
Bemax Inc. Positions to Capitalize on Industry Growth with New Improved Quality of Mother's Touch® Disposable Diapers • BMXC • Jun 24, 2024 8:00 AM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM