GOLDEN, Colo. - Golden Minerals Company (NYSE-A: AUMN), a precious metals mining firm, has been notified of its non-compliance with NYSE American listing standards, the company disclosed today. As of March 31, 2024, Golden Minerals reported stockholders' equity of $0.6 million and recorded net losses in its past five fiscal years, which has led to the non-compliance with Sections 1003(a)(i), 1003(a)(ii), and 1003(a)(iii) of the NYSE American Company Guide.
The company, which operates primarily in Argentina and Mexico, was previously made aware of its non-compliance with Section 1003(a)(iii) on June 9, 2023. In response, Golden Minerals submitted a plan on July 6, 2023, to regain compliance by December 6, 2024. The NYSE American accepted this plan on August 22, 2023, providing a grace period until the specified date.
Golden Minerals focuses on the development of its El Quevar silver property in Argentina and the Yoquivo property in Mexico, alongside the acquisition and advancement of mining properties in Mexico, Nevada, and Argentina.
In other recent news, Golden Minerals Company has reported significant developments. The Colorado-based precious metals exploration firm has sold its Velardeña Properties, located in Durango State, Mexico, for a total cash consideration of $5.5 million, plus Value-Added Tax. The sale encompasses mining concessions, equipment, and other assets, including the Velardeña and Chicago mines, as well as the company's oxide and sulfide processing plants.
Golden Minerals received an initial non-refundable advance payment of $1.0 million, with the remaining payments scheduled for May 20 and July 1, 2024. In a related development, the company has also finalized a court-approved settlement agreement with Unifin Financiera S.A.B. de C.V., resolving a lawsuit between the two entities, with Golden Minerals' subsidiary Minera William set to pay Unifin $250,000.
InvestingPro Insights
Golden Minerals Company (NYSE-A: AUMN) is navigating challenging financial waters as evidenced by its recent non-compliance notice with NYSE American listing standards. To provide investors with a clearer picture of the company's financial health, recent data from InvestingPro offers a snapshot of Golden Minerals' performance:
- The company's revenue over the last twelve months as of Q1 2024 stood at $7.79 million, which represents a sharp decline of 61.07% compared to the same period last year.
- Gross profit margins have also suffered, with Golden Minerals reporting a negative gross profit of $1.06 million and a gross profit margin of -13.6% during the same timeframe.
- With an operating income margin of -87.14%, the company's ability to cover its operating expenses is significantly strained.
These metrics reflect some of the challenges Golden Minerals faces, aligning with InvestingPro Tips which indicate the company suffers from weak gross profit margins and analysts do not anticipate the company will be profitable this year. Moreover, the data underscores why the company's equity position has weakened, leading to the notice of non-compliance.
Investors considering Golden Minerals as a potential opportunity should be aware that the company operates with a moderate level of debt and has not been profitable over the last twelve months. Additionally, the price of AUMN has performed poorly over the last decade, with significant declines over the past year and the last three months.
For those looking to delve deeper into the financial outlook of Golden Minerals, InvestingPro provides a comprehensive set of additional tips. In fact, there are 9 more InvestingPro Tips available that could help investors make a more informed decision. To explore these tips and gain further insights, visit https://www.investing.com/pro/AUMN and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.