By email.

GOLDEN, Colo., Aug. 8, 2013 /PRNewswire/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) announces results for the quarter ending June 30, 2013.

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Financial Results

For the second quarter 2013, Golden Minerals recorded revenue of $4.5 million and costs of metals sold of $8.1 million for a negative gross margin of $3.6 million from the Company's Velardena Operations in Mexico. For the same period 2012, the Company recorded revenue of $4.9 million, cost of metals sold of $6.6 million and a negative gross margin of $1.7 million. The decrease in revenue was driven primarily by lower metals prices and approximately 32 fewer mill production days in the second quarter 2013. The Company recorded a net loss of $217.8 million for the second quarter 2013 as compared to a net loss of $7.6 million in the second quarter 2012. The second quarter 2013 net loss includes a one-time non-cash impairment charge, net of tax, of $204.2 million related to lower metals prices and the suspension of production at the Velardena Operations on June 19, 2013. Loss from operations in the second quarter 2013 was $261.9 million compared to $11.0 million in the second quarter 2012, primarily attributable to the impairment charge mentioned above and also to the decrease in gross margin and the recording of $2.3 million in Velardena severance and shutdown expenses, partially offset by decreases in exploration, Velardena project and administrative expenses.

The Company's cash and short-term investments balance on June 30, 2013 was $30.0 million as compared to $44.6 million on December 31, 2012. The decrease during the six month period is due primarily to $6.7 million in operating losses at the Velardena Operations; $4.5 million in Velardena Operations capital and development expenditures; $2.3 million in severance and shutdown costs at the Velardena Operations; $2.8 million in exploration expenditures; $3.5 million in general and administrative expenses and $1.7 million in El Quevar project expense; offset by net proceeds of $4.0 million from the sale of non-strategic exploration property interests and a decrease in working capital of $2.9 million primarily related to an increase in accrued liabilities at the Velardena Operations. The Company currently expects to have a cash balance of approximately $16.0 million at year-end 2013. This estimate is $2.0 million higher than our previous estimate.

Velardena Operating Results

Payable production during the second quarter 2013 totaled approximately 166,400 silver equivalent ounces (calculated at 60:1 gold to silver), comprised of 100,400 payable ounces of silver and 1,100 payable ounces of gold. This compares to payable production in the second quarter 2012 of approximately 184,400 silver equivalent ounces (calculated at 60:1 gold to silver), comprised of 94,400 payable ounces of silver and 1,500 payable ounces of gold. 2013 production was negatively affected by approximately 32 fewer mill production days during the quarter due to the previously-announced suspension of an explosives permit and the suspension of operations on June 19, 2013. On a daily basis, 2013 production during the second quarter increased by 67% for silver and 15% for gold as compared to 2012.

The table below sets forth the operating statistics of the Velardena Operations for the first six months of 2013 and 2012:

Combined grades feeding both plants increased year over year by 29% for gold and 53% for silver. Silver and gold production for the six months ended June 30, 2013 was negatively impacted by an approximately 33-day suspension of the explosives permit between the first and second quarters and the shutdown of operations on June 19 which together resulted in 36 fewer mill production days during the period.

Velardena Update

The Company completed construction of the San Mateo ramp at the end of May 2013. The ramp provides production-sized access to the Santa Juana mining area and should provide more efficient and less costly ore haulage from the mine.

On June 19, 2013 the Company suspended production at its Velardena Operations in order to conserve the asset during the current period of depressed metals prices. The Company has placed the mine and processing plants on care and maintenance to enable a re-start when operating plans and metals prices support a cash positive outlook for operations. Approximately 420 positions at the Velardena Operations were eliminated as a result of the suspension. The Company has retained a core group of approximately 50 to 60 employees to facilitate a re-start of operations and to maintain and safeguard the longer term value of the asset.

The Company has identified multiple shoots with grades higher than the overall resource grade at Velardena, and during the suspension the Company intends to conduct underground mapping and sampling to validate mine planning data incorporating these shoots. Additionally, Golden will develop and evaluate potential new operating strategies with the goal of re-starting production with a sustainable cash margin for operations. The Company will also continue with testing of technologies designed to improve gold recoveries and will conduct training for key supervisory personnel at Velardena.

The decision to resume production is not tied solely to specific metals prices, but instead to a combination of factors including silver and gold prices, mining method utilized, mine plans, technologies related to ore processing and gold recovery, plant utilization decisions and workforce decisions.

Financial Outlook

The Company plans to incur costs of approximately $3.0 million for one-time suspension-related activities and $2.5 million for care and maintenance during the remainder of 2013 should operations remain suspended. Additionally, the Company intends to incur combined costs of $6.5 million for El Quevar, exploration and general and administrative activities. Following a projected increase in working capital of $2.0 million the Company expects to have a cash balance of approximately $16.0 million on December 31, 2013.

Additional information regarding second quarter financial results may be found in the Company's 10-Q Quarterly Report which is available on the Golden Minerals website at www.goldenminerals.com.