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Golden Minerals forecasts dip in 2022

Colorado-based Golden Minerals has told shareholders that it is expecting a fall in its net operating margin and lower gold and silver production in 2022.
Golden Minerals forecasts dip in 2022 Golden Minerals forecasts dip in 2022 Golden Minerals forecasts dip in 2022 Golden Minerals forecasts dip in 2022 Golden Minerals forecasts dip in 2022

Nathan Richardson

The company forecasts that its one operating mine, the Mexican Rodeo open pit, will see a net operating margin of US$7 million-$9 million this year - assuming realised gold and silver prices of $1,800 per ounce and $25/oz, respectively. 

Last year, Rodeo's net operating margin was $12.3 million. The net operating margin is defined as revenue from the sale of metals less the cost of metals sold. 

The Durango-based mine began production in January 2021 and by the end of the year saw payable extraction of 14,400oz of gold and 59,900oz of silver.

This year, those volumes are expected to fall to 12,000-14,000oz gold and 42,000-47,000oz silver. 

Average grades this year are forecast to be 2.9 grammes per tonne gold and 9.4g/t silver after the 2021 grades of 4.1g/t gold and 12.2g/t silver, respectively. 

Cash costs are also set to rise from $937 per payable gold oz last year to $1,100-$1,200/oz this year.  

Golden Minerals has a share price of $0.58 and market capitalisation of $94.43 million.