Golden Minerals Reports Reduced Liabilities and Cost Structure, Shifts Focus to Exploration Assets

Golden Minerals reported 1H EPS of 12c, compared to (19c) last year. The company reduced liabilities, decreased cost structure, and strengthened its balance sheet through restructuring efforts. It anticipates completing the restructuring in Q3 and plans to initiate a Phase I drill program targeting gold mineralization at the Desierto project in Argentina.

Golden Minerals Company (OTCQB:AUMN, TSX:AUMN) has reported its Q2 2025 financial results, revealing a net loss of $1.8 million, or $0.12 per share. This marks an improvement from the $2.7 million loss reported in Q2 2024. The company's cash position stands at $2.5 million as of June 30, 2025, down from $3.2 million in December 2024 [2].

The company has issued a going concern warning, stating it lacks sufficient resources to meet cash needs for the next twelve months. Without additional funding, Golden Minerals expects to exhaust its cash resources by Q1 2026. The company is actively pursuing alternatives, including potential company sale, asset disposals, or external financing [2].

Golden Minerals has achieved a significant reduction in liabilities and a meaningful decrease in its cost structure through restructuring efforts in 2024, which continued into the first half of 2025. These efforts allowed the company to strengthen its balance sheet and preserve capital, enabling it to shift focus towards its most promising exploration assets [2].

The Desierto project in Argentina's Puna region has been the subject of surface exploration that identified zones of alteration, including clay and silica-rich areas typically associated with precious metal systems. Rock sampling in multiple zones has returned anomalous gold and silver values, and the alteration patterns suggest the presence of a potentially larger mineralizing system at depth. The Company anticipates initiating a Phase I drill program targeting extensions of gold mineralization identified at the adjacent Sarita Este project [2].

At June 30, 2025, aggregate cash and cash equivalents totaled $2.5 million, compared to $3.2 million at December 31, 2024. The June 30, 2025, decrease is the result of the following expenditures and cash inflows for the six months ended June 30, 2025 [2].

Golden Minerals continues to face liquidity challenges. The company's only near-term opportunity to generate cash flow to meet its expected cash requirements is from the sale of assets, equity, or other external financing. The company is evaluating and pursuing alternatives, including the potential sale of the Company, finalizing the sale of its assets at the Velardeña Properties, seeking buyers or partners for the Company's other assets, or obtaining equity or other external financing [2].

In the absence of additional cash inflows, the Company anticipates that its cash resources will be exhausted in approximately the first quarter of 2026. If Golden Minerals is unable to obtain additional cash resources or sell the Company, it will be forced to cease operations and liquidate [2].

References:
[1] https://seekingalpha.com/news/4485557-golden-minerals-company-gaap-eps-of-0_12
[2] https://www.stocktitan.net/news/AUMN/golden-minerals-reports-second-quarter-2025-financial-r3e8wa2cto43.html