Golden Minerals Co (AUMN)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 was dominated by liquidity stress and asset sales: cash fell to $1.4M at quarter-end and ~$0.7M by Aug 9; management warned resources may be exhausted in September without additional inflows and is considering bankruptcy filings for Mexican subsidiaries .
• The Velardeña asset sale partially closed ($2.5M received); the buyer defaulted on the remaining $3.0M for the oxide plant and water wells, creating a near-term cash shortfall and uncertainty .
• Consolidated revenue from continuing operations was $0; net loss widened to $2.7M (EPS -$0.19), driven by discontinued operations and shutdown costs, vs. $1.5M (EPS -$0.21) in Q2 2023 .
• Governance and listing developments: CFO transition announced Aug 5; NYSE American notified non-compliance with equity standards (plan period through Dec 6, 2024) .
• Key trading catalysts: resolution of defaulted oxide-plant payment, asset sales (El Quevar/Yoquivo), fresh financing, and listing-compliance trajectory; failure to secure inflows could precipitate liquidation .

What Went Well and What Went Wrong

What Went Well

• Closed sale of Velardeña mine and associated facilities, receiving $2.5M cash (plus VAT) and transferring title, providing essential liquidity .
• Collected ~$2.6M in Mexican VAT during H1, supporting working capital amidst operating wind-down .
• Management realigned leadership: appointed Joe Dwyer (Corporate Controller) as CFO with prior public-company and Deloitte assurance experience, strengthening financial stewardship in a crisis phase .
  • Quote: “Joe Dwyer…brings extensive experience with publicly held companies… and as a manager within Deloitte’s assurance practice.” — CEO Pablo Castaños .

What Went Wrong

• Buyer default on $3.0M Velardeña oxide plant payment, leaving only ~$477K paid by Aug 7 and creating funding uncertainty; company is negotiating an extension and mortgage security .
• Operations failed to meet expectations; Velardeña restart halted (Feb–Mar), with Q2 continuing revenue $0 and losses elevated as assets moved to discontinued operations .
• Acute going-concern risk: cash expected to be exhausted in September absent inflows; bankruptcy filings for Mexican subsidiaries under consideration .
• NYSE American non-compliance notice across three equity standards, maintaining listing contingent on plan execution by Dec 6, 2024 .

Financial Results

Consolidated Performance vs. Prior Periods and Estimates

Note: S&P Global consensus estimates were unavailable for AUMN at the time of analysis (tool limit exceeded).

Balance Sheet and Liquidity Snapshot

Additional events: cash ~$0.7M as of Aug 9, 2024; anticipated exhaustion in September 2024 absent inflows .

Segment Breakdown (Continuing Operations)

Discontinued Operations (Velardeña) Highlights

KPIs (Velardeña operations)

Guidance Changes

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available. Theme tracking below uses company filings/press releases.

Management Commentary

• Liquidity stance: “In the absence of additional cash inflows, the Company anticipates that its cash resources will be exhausted in September 2024…considering bankruptcy filings for several of its Mexican subsidiaries.” — Q2 2024 10‑Q/press release .
• Asset sale update: “Buyer…has made payments of approximately $477,000…is currently in default. The Company does not know whether or when the buyer will make the remaining payments due.” — Q2 8‑K/10‑Q .
• CFO transition: “Joe Dwyer…brings extensive experience with publicly held companies… and Deloitte’s assurance practice.” — CEO Pablo Castaños .

Q&A Highlights

No Q2 2024 earnings call transcript was available; no Q&A or guidance clarifications can be sourced.

Estimates Context

• Wall Street consensus (S&P Global) for EPS/revenue was unavailable at time of request due to data-access limits. As a result, we cannot assess beats/misses vs. Street for Q2 2024.
• Given negligible continuing revenue and elevated losses, any forward estimate revisions will likely hinge on asset-sale timing and financing visibility rather than operating metrics .
  Disclaimer: Estimates could not be retrieved from S&P Global at this time.

Key Takeaways for Investors

• Near-term solvency risk: With cash projected to be exhausted in September absent inflows, the timeline to secure financing, collect defaulted oxide-plant proceeds, or complete other asset sales is the central trading driver .
• Asset-sale execution is critical: The $3.0M oxide-plant payment default is a material swing factor; watch for renegotiation terms (mortgage security, payment schedule) and enforceability .
• Strategic monetization: Active efforts to sell El Quevar and Yoquivo could provide lifeline cash; transaction progress and valuations will drive sentiment .
• Listing risk remains: NYSE American non-compliance and equity deficits add pressure; corporate actions to rebuild equity base and meet plan milestones are key .
• Governance/leadership: New CFO with controls experience may improve financial rigor; however, outcomes depend on external capital and asset monetization .
• Trading implications: Event-driven set-up with binary outcomes tied to payment resolution, financings, and asset sales; downside includes liquidation risk if inflows fail to materialize .
• Medium-term thesis: Without operating cash flow, value realization likely comes via asset disposals and balance-sheet repair; monitor legal, regulatory, and market developments, including buyer default remedies and VAT recovery cadence .