Golden Minerals Company (OTCQB: AUMN, TSX: AUMN) announced its financial results for the first quarter ending March 31, 2025. The company reported a net loss of $1.2 million ($0.08 per share), a significant improvement from the $4.6 million loss ($0.32 per share) recorded in the same period last year. Cash and cash equivalents increased to $3.5 million, up from $3.2 million at the end of 2024, while the company maintained zero debt.
Key Financial Highlights
Exploration expenses remained steady at $0.1 million, unchanged from Q1 2024.
Administrative costs dropped to $0.7 million from $1.0 million in the prior year.
Loss from discontinued operations fell sharply to $0.4 million from $3.3 million.
Cash reserves increased slightly to $3.5 million as of March 31, 2025.
No outstanding debt as of the quarter’s end.
Operational and Strategic Developments
Golden Minerals continued its 2024 restructuring efforts into early 2025, successfully reducing liabilities and lowering costs. This strategy has strengthened the company’s financial position and allowed it to focus on its most promising exploration projects.
Desierto Project, Argentina: Surface exploration revealed zones rich in clay and silica, typical of precious metal deposits. Rock samples showed anomalous gold and silver values, suggesting a larger mineral system underground. The company plans to start Phase I drilling targeting gold extensions near the Sarita Este project. Joint venture agreements are being finalized, and prior drilling data is being integrated to refine the geological model.
Sand Canyon Project, Nevada: Golden Minerals exercised its option to acquire a 60% interest and is finalizing joint venture paperwork with Golden Gryphon Explorations, Inc. The company is reviewing historical data to plan future exploration.
In April 2025, Golden Minerals sold its wholly owned Mexican subsidiary, Minera de Cordilleras, for $600,000. This subsidiary held five non-core mining concessions and tax loss carryforwards, part of the company’s ongoing restructuring.
Liquidity and Outlook
As of March 31, 2025, Golden Minerals had $3.5 million in cash and $4.0 million in current assets but faced $4.9 million in current liabilities, including $3.0 million in deferred revenue related to the sale of the Velardeña oxide plant and water wells.
The company’s near-term cash flow depends mainly on asset sales, equity financing, or other external funding. Without additional cash inflows, Golden Minerals expects to exhaust its cash reserves by early 2026. The company is actively exploring options such as selling assets, seeking partners, or raising capital. Failure to secure funding could force the company to cease operations and liquidate.
Leadership Comment
Jeffrey Clevenger, Chairman of Golden Minerals, stated, “We are pleased with the progress in reducing costs and strengthening our balance sheet. As we finalize partnerships in Argentina and Nevada, we remain focused on cost control and look forward to promising drill results.”
Forward-Looking Statements
The company cautions that forward-looking statements involve risks such as economic changes, delays in exploration, regulatory shifts, and fluctuating metal prices. These factors could affect the company’s plans and financial outlook.
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