Re: Suspended WTF
in response to
by
posted on
Jun 21, 2013 05:02PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Well, you could lose money on every sale at the current prices of gold and silver, but you could make it up on volume....
However, also from the news release...
"During May 2013, the Company completed the San Mateo ramp providing access to the productive Santa Juana mining area. The completed ramp, which provides more efficient and less costly haulage capacity from the mine, should be helpful to the re-start economic analysis. During the suspension period, the Company plans to use the ramp to access mining areas to develop and evaluate re-start mining plans. The Company also plans to continue work on treatment options for gold-bearing pyrites produced at the mine, including autoclave, bioleach and roasting technologies.
The Company estimates payable production during the second quarter 2013 prior to the suspension of approximately 160,000 silver equivalent ounces, assuming a 50:1 ratio for gold to silver. This total is approximately 25 percent less than the record production achieved in the first quarter 2013 and reflects the effects of reduced production during the previously announced suspension of the property's explosives permit and 9 days without mining operations during the quarter resulting from the June 21 suspension of operations. Separately, the Company is evaluating further general and administrative expense reductions, with the objective of reducing corporate general and administrative expense by about 25 percent from 2012 levels. In property-related updates, the Company has received $250,000 for the farm out of a property in Zacatecas state, Mexico. In Argentina, the process of attracting a partner to move the El Quevar property forward is progressing with several interested parties reviewing data and conducting site visits. Additionally, the Company has signed an option agreement to acquire the Los Azules property in Chihuahua state, Mexico, which is located seven kilometers southwest of the San Francisco de Oro district. Jeffrey G. Clevenger, Chairman, President and Chief Executive Officer, noted, "We achieved progress toward our 2013 objectives at Velardena with early completion of the San Mateo ramp and increasing rates of production of gold and silver. The Company believes its shareholders and other stakeholders will be best served when the Company conserves the Velardena asset during this period of falling silver and gold prices. We will take advantage of the suspension to address mine plans and operating inefficiencies for an eventual return to operations when metals prices and operational plans dictate. We sincerely regret the hardship this suspension brings to our employees and we are planning to provide severance payments to help cushion the immediate impact of the suspension."