Report
EUR 42.33 For Business Accounts Only

Golden Minerals Company (NYSE American / TSX: AUMN) - Initiating Coverage – Junior with Advanced Stage Assets and Toll Milling Revenues

Fundamental Research Corp has issued a report entitled “Golden Minerals Company (NYSE American / TSX: AUMN) - Initiating Coverage – Junior with Advanced Stage Assets and Toll Milling Revenues” and dated January 16, 2020. The full report is now at

Key Highlights

 Golden Minerals Company (“company”, “Golden”, “AUMN”) holds a portfolio of precious metals projects in the Americas; including the advanced stage El Quevar silver project in Argentina, the Velardeña properties in Mexico, and early stage projects in Mexico and Nevada.
 The company also generates revenues by leasing its oxide mill at Velardeña to Hecla Mining (NYSE: HL). In the first nine months of 2019, this lease generated an operating profit of $4 million to AUMN.
 A 2018 Preliminary Economic Assessment (“PEA”) on the El Quevar silver project, based on $16.7 per oz silver, returned an After Tax – Net Present Value (AT-NPV) at 5% of $45 million, and an After Tax – Internal Rate of Return (“AT-IRR”) of 17%.
 Excluding a project recently signed up for sale, the company has a total measured and indicated resource of 76 million ounce (“Moz”) silver equivalent, and an inferred resource of 37 Moz silver equivalent across three projects.
 Management and board members combined hold approximately 5% of the total outstanding shares. Sentient Equity Partners is the largest investor, and holds 39% of the outstanding shares.
 We are expecting multiple catalysts for the share price in 2020, including an updated PEA on its Velardeña properties, a potential joint venture partner for El Quevar, and drill results from a recently optioned gold-silver project in Nevada.





*FRC provides issuer paid coverage; read all the important disclosures at the back of each report
Underlying
Golden Minerals Co.

Golden Minerals is an exploration stage mining company. The company owns the El Quevar exploration silver property; the Velardena and Chicago precious metals mining properties and associated oxide and sulfide processing plants; and a portfolio of precious metals and other mineral exploration properties located primarily in or near historical precious metals producing regions of Mexico. The company remains focused on evaluation activities at its El Quevar exploration property in Argentina and on evaluating and searching for mining opportunities in North America. The company is also focused and are continuing its exploration efforts on selected properties located primarily in Mexico.

Provider
Fundamental Research
Fundamental Research

Since 2003, Fundamental Research Corp has provided the highest institutional quality equity research coverage on over 250 small and micro cap public companies through our extensive distribution network. Since 2009, we have also issued over 80 reports on exempt market (private) securities. Our research is being used by some of the largest institutional investors in the world who access it through channels such as Reuters, Capital IQ, the Globe and Mail, and by subscription. Our goal from the beginning was to provide high quality research to a broad audience, while adhering to high ethical standards and a strong foundation of integrity. These principles are evident in everything we do.

Our firm was created when we noticed that all equity research is paid for in one way or another, traditionally through corporate finance relationships. In 2003, it came to light that many investors were not aware that the research they were reading had potential conflicts between research and corporate finance. This led to large fines being levied on some large U.S. investment banks.

However, on the debt side, research relied upon by investors, and produced by firms such as Moodys is paid for, directly by the issuer to the research provider. The model is also used by auditors who are paid to provide an independent opinion to investors.

That brings us to today. To ensure high quality, continuous, and thorough research coverage, we employ full time in house analysts and industry specialists (such as a geologist). Because our analysts are in house, they are readily available to respond to investor inquiries, calls from institutions, and speak to management. We have invested in institutional platforms, such as Reuters Knowledge and Capital IQ, so that our analysts have access to the same high caliber information as the largest money managers in the world.

To ensure ethical behavior throughout our firm, we have, and continue to adopt CFA Institute Standards.

Our analysts are sought after by the media and at conferences to give their opinion on the markets, current topics of interest such as the direction of commodity prices, and top stock picks.

In the end, we are first and foremost a premier research firm that markets its research. A truly solid research firm is one that has full time analysts, access to the same information as large institutional investors, is ranked and adopts ethical and professional standards. The hard work we have done to establish our research is paying off. We have ranked in the Top Ten in independent third party evaluations of our research, and have developed a reputation for producing high quality research.


Analysts
Sid Rajeev

Other Reports on these Companies
Other Reports from Fundamental Research

ResearchPool Subscriptions

Get the most out of your insights

Get in touch