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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: Golden Minerals 2012 year end results

If the cost of metal production ($33.4 million) is added to the project expenses and mine development costs ($7.9 million) plus the general corporate and administrative expense ($7.1 million), than the all in cost of the Velerdenia operation was $48.4 million in 2012. To be fair, the mine development cost will hopefully drop substantially once the tunnel ramp is complete and the corporate and admin costs include management of many other properties owned by Golden Minerals. To be optimistic, lets say that the all in costs of the mineral extraction at Velerdenia was $40 million. Since revenue was only $26.1 million, either the silver price will need to increase 55% or the productivity will need to increase 55% or some combination thereof. Thankfully the ramp is ahead of schedule and though it makes sense that the ramp will improve production and efficiency, Golden will need to show that the improvement is at least 55% short of a higher silver price. Since Golden chewed thru $46.3 million in its bank account last year, I would hate to see another finance at today's share price. On the upside,we probably have over 600 million ounces of silver including El Quevar and if Golden turns profitable along with the $100 silver Eric Sprott is predicting, this thing could rocket. Based on the annual report though, we probably have more to drop and will bottom until the ramp is complete.

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