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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: (8/7/21) Q2 and Communication with Karen Winker--IR
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When AUMN reported Q2 on 8/5, I wrote the following note to Karen Winkler-IR. I wanted to focus on some of the non-essential factors like excessive compensation, that caused the company to report an $800K loss despite a surge in production and some carryforward production from Q1. Here's what I wrote:
Karen,
Disappointingly, you show another quarterly loss (-$0.8MM) despite maximum production from Rodeo (500 tpd) and some revenue contribution leftover from Q1. Cash drops from $9.7MM to $6.9MM for 1H '21.
Here are some appropriate questions:
1. How is the $1.1MM executive stock compensation in Q2 accounted for among your executives? What did each receive?
2. What was the General and Administrative expenses for only Q2, and what percent of that were executive salaries?
3. What are the salaries of each of your executives (Rehn, Vogels, and yourself)?
4. What were the drilling expenses for Yoquivo and Sarita Este and what does the company eventually plan to do with those properties?
5. What does the company need to do to generate consistent profits going forward?
6. As the IR spokesperson, what are you doing to generate analyst support and additional shareholder support?
36 hours later, here's her meaningless, non-responsive response:
"All publicly disclosed information is available on our website, in our annual proxy statement and in our EDGAR filings. What has not been released is not publicly available."
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This prompted me to write the following:
That's about what I would have expected from the IR of a company that has lost 96% value in the past 10 years.
I've made 4 prudent suggestions this year:
1. Cease spending capital on long term drilling and enhance the bottom line for a profitable Q2. That failed and as a result, you lost $800K in Q2.
So, now the market has no confidence that you can turn a profit without a surge in metal prices, and no analysts care about AUMN. And, nobody cares about Yoquivo!
2. Hedge your small production quarter to quarter to protect yourself during this turnaround phase. That certainly would have been a good idea given the recent sharp drop in metal prices.
3. Suggest your executives buy some stock with their generous salaries to help draw some positive reaction to the weak stock price. That hasn't happened and thus
sellers come out every day, even when metals rally.
4. Expose AUMN to Reddit and Silver Squeeze. Shockingly, you had no interest. Perhaps it wasn't in your job description as assembler of data for quarterly results?
I'm praying that Sentient soon realizes that your team absolutely lacks the capability to enhance shareholder value even as a producer, and demands the company be sold.
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There is little doubt in my mind that AUMN is worth much more than US$.50, but until mgmt. makes intelligent decisions and focuses on bottom line earnings, shareholders have no reason to buy the stock. That's what the market has been telling us as we hit new low after new low for 2021. Sentient, with a 24% stake is probably realizing that this asset needs to be managed by someone else. That realization would provide the best catalyst to turn this stock around.
Silverbull50
2 Recommendations
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