Colorado-based Golden Minerals Company (NYSE-A: AUMN and TSX: AUMN) has abruptly ceased operations at its Velardeña Properties in Durango State, Mexico, according to an announcement on February 29, 2024. The decision comes several months following the company’s re-start of mining activities in late December 2023, with hopes of gradually escalating production during the first half of 2024 until it reached positive cash flow. However, the mine and processing plant’s original performance did not live up to the company’s projections.
In response to this action, Golden Minerals disclosed that it plans to assess viable alternatives for the Velardeña Properties. Such alternatives could potentially involve property sales or the dissolution of certain company operations based in Mexico.
Golden Minerals, a precious metals mining exploration company residing in Golden, Colorado, boasts a primary focus on advancing its Yoquivo property in Mexico. Moreover, through financially supported exploration activities carried out by its partners, the company is also pursuing development of its El Quevar silver property located in Argentina. Golden Minerals additionally seeks to acquire and advance select mining properties in Mexico, Nevada, and Argentina.
The company’s forward-looking statements regarding the Velardeña Properties are subject to uncertainties and risks. These include the company’s ability to fulfill existing payment duties on the properties, increasing costs, a drop in general economic conditions, changes in political climates, adjustments to tax, environmental and other laws in the United States, Mexico, and Argentina, other fluctuating market conditions, and variability in silver and gold prices. The company has made it clear that it is under no obligation to update this information. Additional risks tied to Golden Minerals can be found in periodic and current reports filed with the Securities & Exchange Commission by Golden Minerals, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
For more information, contact Karen Winkler, Director of Investor Relations at Golden Minerals Company, at (303) 839-5060.
Source: Press Release