 GOLDEN, Colo., Aug. 06, 2020 GLOBE NEWSWIRE -- Golden Minerals Company Golden Minerals, Golden or the Company NYSE American and TSX: AUMN today announced financial results and a business summary for the quarter ending June 30, 2020.Second Quarter Summary Financial Results Revenue of 1.2 million and a net operating margin oxide plant lease revenue less lease costs of 0.8 million related to the lease of the Companys oxide plant in the second quarter 2020, compared to a 1.3 million net operating margin realized in the second quarter 2019. All currency in USD. 3.7 million in funding received in conjunction with the signing of an Earn-In Agreement with Barrick Gold Corporation Barrick 0.9 million net, and from an equity offering and private placement of Golden common shares and warrants completed in April 2020 2.8 million net. Cash and cash equivalents balance of 3.6 million as of June 30, 2020 compared to 4.6 million at year-end 2019. Subsequent to June 30, 2020, additional funding of 7.9 million net received in July 2020 from an equity offering without warrants. Exploration expenses of 0.8 million compared to 1.3 million in the year ago period. Net loss of 2.3 million or 0.02 per share in the second quarter 2020, compared to a net loss of 2.5 million or 0.03 per share in the second quarter 2019.Second Quarter Business Summary Published Preliminary Economic Assessments PEA for the Velardeña Properties and the Rodeo gold project May 2020. Submitted permits for the Rodeo gold project June 2020, with mining operations possible for Q1 2021 pending receipt of permits. Signed an Earn-in Agreement for the El Quevar silver project with Barrick April 2020.Golden Minerals President and Chief Executive Officer, Warren Rehn, commented, With the recent capital raise completed, we have a significant cash balance and are now in an excellent position to fund a start-up of production at the Rodeo deposit early next year, assuming that the results of our confirmatory drilling program are satisfactory and providing we receive the necessary government approvals. We are also moving forward with additional engineering studies for a bio-oxidation plant at Velardeña. We can now advance our exploration plans at several properties, including drilling at the Yoquivo District in Chihuahua, Mexico. The recent dramatic increase in gold and silver prices has greatly improved our projections of potential cash flow from both Rodeo and Velardeña. We will continue to advance our plans to become a gold and silver producer again as quickly as possible.Financial ResultsThe Company reported revenue of 1.2 million in the second quarter 2020 related to the oxide plant lease and costs of approximately 0.4 million related to the services Golden provides under the terms of the lease, for a net margin of 0.8 million. Revenue and net operating margins were lower in the current period compared to the 1.3 million in the second quarter 2019 due to 1 a suspension of operations during portions of April and May related to COVID-19, and 2 a contract amendment permitting a lower variable price per tonne of ore processed beginning in January 2020. During the second quarter 2020 as noted above, Golden also received 3.7 million in net proceeds from the sale of common stock related to an Earn-In Agreement with Barrick and an offering of the Companys common stock.Exploration expenses were 0.8 million in the second quarter 2020 and include work at the Sand Canyon, Rodeo and other properties, as well as property holding costs and their allocated administrative expenses. El Quevar project expense was 0.2 million in the quarter which includes costs of exploration and evaluation activities, care and maintenance and property holding costs. Administrative expenses totaled 0.8 million in the second quarter 2020. These expenses, including costs associated with being a public company, are incurred primarily by the Companys corporate activities in support of the Velardeña Properties, the El Quevar project and the Companys exploration portfolio. Golden reported a net loss of 2.3 million or 0.02 per share in the second quarter 2020 compared to a net loss of 2.5 million or 0.03 per share in the year ago period. Twelve Month Financial Outlook The Company ended the second quarter 2020 with a cash balance of 3.6 million. Cash inflows for the 12-month period ending June 30, 2021 are projected as follows all figures are approximate: 7.9 million in net proceeds related to a July 2020 public equity offering; 1.3 million in net operating margin and 0.4 million from the collection of receivables following the termination of the oxide plant lease on November 30, 2020; and 0.5 million in the third quarter 2020 relating to the sale of the Santa Maria project.The Companys currently budgeted expenditures during the 12 months ending June 30, 2021 total 9.8 million and are as follows all figures are approximate: 1.5 million on mine development costs, capital expenditures, working capital and other start-up related activities ahead of a potential first quarter 2021 commencement of milling and processing operations at the Rodeo property, 2.0 million on evaluation activities, exploration and property holding costs related to the Companys portfolio of exploration properties located in Mexico, Nevada and Argentina, including costs at El Quevar, Yoquivo and other properties; 1.6 million at the Velardeña Properties for care and maintenance; 1.1 million for repayment of a related party loan to Sentient; 0.5 million for repayment of the remaining Autlán deposit associated with a cancelled 2019 agreement; and 3.1 million on general and administrative costs.These projections are current as of the date of this news release but could be negatively impacted if further interruptions related to COVID-19 occur in Mexico. The Company currently includes anticipated expenditures for the potential start-up of mining at the Rodeo gold project in the first quarter 2021, but an estimate of revenues has not been included pending the results of a confirmatory drilling program in the third quarter 2020 and receipt of operating permits estimated to occur in late 2020.Additional information regarding second quarter 2020 financial results may be found in the Companys 10-Q Quarterly Report which is available on the Golden Minerals website at Statements CONDENSED CONSOLIDATED BALANCE SHEETSUS Dollars, unaudited June 30, December 31, 2020 2019 in thousands, except share data Assets Current assets Cash and cash equivalents3,557 4,593 Lease receivables 353 448 Inventories, net 186 231 Derivative at fair value 128 254 Prepaid expenses and other assets 705 669 Total current assets 4,929 6,195 Property, plant and equipment, net 5,471 6,031 Other long term assets 1,013 1,131 Total assets11,413 13,357 Liabilities and Equity Current liabilities Accounts payable and other accrued liabilities1,152 2,127 Deferred revenue, current 227 472 Debt - related party 1,025 Other current liabilities 870 1,824 Total current liabilities 3,274 4,423 Asset retirement and reclamation liabilities 3,040 2,839 Other long term liabilities 412 494 Total liabilities 6,726 7,756 Commitments and contingencies Equity Common stock, .01 par value, 200,000,000 shares authorized; 128,176,731 and 106,734,938 shares issued and outstanding respectively 1,282 1,067 Additional paid in capital 525,844 521,314 Accumulated deficit 522,439 516,780 Shareholders equity 4,687 5,601 Total liabilities and equity11,413 13,357 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS US dollars, unaudited Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 in thousands except per share data in thousands, except per share data Revenue: Oxide plant lease1,224 1,976 2,420 3,908 Total revenue 1,224 1,976 2,420 3,908 Costs and expenses: Oxide plant lease costs 420 613 984 1,210 Exploration expense 824 1,328 2,455 2,183 El Quevar project expense 245 686 493 1,001 Velardeña care and maintenance costs 192 452 655 969 Administrative expense 767 969 1,930 2,043 Stock based compensation 614 89 666 653 Reclamation expense 62 55 121 114 Other operating expense income, net 106 71 102 179 Depreciation and amortization 265 270 544 544 Total costs and expenses 3,495 4,391 7,950 8,538 Loss from operations 2,271 2,415 5,530 4,630 Other expense: Interest and other expense, net 46 43 73 141 Loss on foreign currency 6 56 38 Total other loss 52 43 129 179 Loss from operations before income taxes 2,323 2,458 5,659 4,809 Income taxes Net loss2,323 2,458 5,659 4,809 Net loss per common share basic Loss0.02 0.03 0.05 0.05 Weighted average Common Stock outstanding - basic 1 124,134,135 97,144,467 115,690,717 96,466,982 1 Potentially dilutive shares have not been included because to do so would be anti-dilutive. About Golden Minerals Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on advancing its Rodeo and Velardeña properties in Mexico and, through partner-funded exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing mining properties in Mexico, Argentina and Nevada. 