Golden Minerals Reports Full Year 2022 Results - Seite 2

• $9.6 million in exploration expenditures, including $4.3 million of exploration and mining activities at Rodeo, Yoquivo, Sarita Este and other properties, $1.8 million for expanding a tailings facility at Velardeña and $1.5 million to support the potential restart of Velardeña;
• $1.4 million in care and maintenance costs at the Velardeña Properties;
• $0.6 million in exploration and evaluation activities, care and maintenance and property holding costs at the El Quevar project, net of reimbursements from Barrick; and
• $4.5 million in G&A expenses, including costs for employee compensation, directors’ fees, professional fees, insurance and other costs.

Capital Resources and 2023 Financial Outlook

Forecasted expenditures during the 12 months ending December 31, 2023, apart from Rodeo cost of metals sold which is already included in the forecast of net operating margin shown below, total approximately $8.5 million, which is $7.6 million lower than the $16.1 million in expenditures incurred during 2022. These forecasted expenditures include: (i) exploration expenses of $2.6 million, (ii) Velardeña care and maintenance costs of $1.2 million, (iii) El Quevar spending (net of Barrick reimbursements) of $0.8 million, and (iv) administrative expense of $3.9 million. The actual amount of cash expenditures that the Company incurs during the 12-month period ending December 31, 2023 may vary significantly from the amounts specified above and will depend on a number of factors, including variations in the anticipated care and maintenance costs at the Velardeña Properties or at El Quevar, and costs for continued exploration, project assessment, and advancement of the Company’s other exploration properties.

The Company does not currently have sufficient resources to meet its expected cash needs during the year ending December 31, 2023. On December 31, 2022, Golden had cash resources of approximately $4.0 million. The forecasted net operating margin from the Rodeo Property during the current year is expected to be between a loss of $0.5 million and a positive margin of $0.5 million. Net operating margin is defined as revenue from the sale of metals less the cost of metals sold, which includes the full Torreon office G&A costs and project costs. The estimate assumes average gold and silver prices per ounce during the period of $1,800 and $20.00, respectively. The actual amount that the Company receives in net operating margin from Rodeo during the period may vary significantly from the amounts specified above due to, among other things: (i) unanticipated variations in grade, (ii) unexpected challenges associated with the Company’s proposed mining plan, (iii) decreases in commodity prices below those used in calculating the estimates shown above, (iv) variations in expected recoveries, (v) increases in operating costs above those used in calculating the estimates shown above, or (vi) interruptions in mining at Rodeo.