Golden Minerals Company (NYSE American:AUMN) announced today that it has completed the sale of the Velardeña Mine and associated facilities in Mexico, receiving a full payment of $2.5 million plus Value Added Tax. The deal was part of asset purchase agreements with a private Mexican entity dated April 29, 2024.
However, the Colorado-based mining firm also disclosed a delay in the closing of another agreement concerning its oxide processing plant and water wells in Durango State, Mexico. The company has so far received $373,000 in partial payments, with the outstanding balance of $2.627 million plus VAT, originally due on July 1, 2024, still pending. Golden Minerals is currently in discussions to negotiate an extension for the buyer's payment obligations.
This transaction is further detailed in the Sales Agreements, which will be included in the company's upcoming Quarterly Report on Form 10-Q for the quarter ending June 30, 2024. The SEC filing confirmed the transfer of title to the buyer for the Velardeña Mine assets.
Golden Minerals, formerly known as Apex Silver Mines Ltd., is a Delaware-incorporated company specializing in the exploration and development of precious metals. The company operates primarily through its subsidiaries in Mexico, focusing on gold and silver ores.
In other recent news, Golden Minerals Company has faced non-compliance issues with NYSE American listing standards due to reported stockholders' equity of $0.6 million and recorded net losses over the past five fiscal years.
The company had previously submitted a plan to regain compliance by December 6, 2024, which was accepted by the NYSE American. In conjunction with these developments, Golden Minerals has made significant moves in its operations.
The Colorado-based firm recently sold its Velardeña Properties in Durango State, Mexico, for a total cash consideration of $5.5 million, plus Value-Added Tax. This sale includes mining concessions, equipment, and other assets, including the Velardeña and Chicago mines, as well as the company's oxide and sulfide processing plants. An initial non-refundable advance payment of $1.0 million was received, with the remaining payments scheduled for May 20 and July 1, 2024.
Additionally, Golden Minerals has finalized a court-approved settlement agreement with Unifin Financiera S.A.B. de C.V., resolving a lawsuit between the two entities. Golden Minerals' subsidiary, Minera William, is set to pay Unifin $250,000 as part of this settlement.
InvestingPro Insights
Golden Minerals Company's recent sale of the Velardeña Mine marks a strategic move for the firm, but it's essential to consider the broader financial context of AUMN. According to recent data, the company's revenue over the last twelve months as of Q1 2024 stands at $7.79 million, which reflects a significant decline of 61.07% compared to the previous year. The gross profit margin during the same period was negative, at -13.6%, indicating challenges in profitability.
InvestingPro Tips suggest that analysts are not expecting Golden Minerals to be profitable this year, which aligns with the reported operating income margin of -87.14%. Additionally, the company's short-term obligations exceed its liquid assets, which could be a point of concern for liquidity and financial stability.
For investors considering the company's stock, it's noteworthy that the price has seen a considerable decline over the past year, with a 74.34% drop in the one-year price total return as of the data date. Moreover, the company does not pay a dividend, which might influence investment decisions for those seeking regular income streams.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insight into Golden Minerals' financial health and stock performance. To explore these tips and enhance your investment strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.