Golden Minerals Ord Shs T.AUMN

Alternate Symbol(s): AUMN

Metals & Mining Industrial Metals & Minerals

Golden Minerals Company is a precious metals mining exploration company. The Company is primarily focused on advancing its Yoquivo property in Mexico and, through partner-funded exploration, advancing its El Quevar silver property in Argentina. It is also focused on acquiring and advancing selected mining properties in Mexico, Nevada and Argentina. The Yoquivo Project is located 210 km west-southwest of the city of Chihuahua, in Ocampo Municipality, Chihuahua State. The Yoquivo Project consists of approximately seven mining concessions with an area totaling about 1,975 hectares (Ha). The El Quevar silver exploration project is located in the San Antonio de los Cobres municipality, Salta Province, in the altiplano region of northwestern Argentina. The El Quevar project is comprised of approximately 31 mining concessions that it holds directly or indirectly through its wholly owned subsidiaries. In total, the El Quevar project encompasses approximately 57,000 Ha.

TSX:AUMN - Post by User

Golden Minerals Ord Shs

Bullboard Posts

Post by chalkmarkson Apr 08, 2011 1:09pm

407 Views

Post# 18405595

Paradigm Capital Initiates Coverage

From their summary:

Implications:

AUM has been under pressure for several months due to a vacuum of news flow (in our opinion).
Exploration results and discoveries have not flowed as fast as expected – the likely cause of weakness during Q1 in the face of rising silver prices.
The principal reason for the lack of news flow is the first target tested in the 2011 regional program was Carmen, which didn’t turn out as good as hoped
- The highlight hit at Carmen returned a modest width of 2m @ 524gpT Au, 0.29gpt Au, and another hit of 2m @ 405gpT silver and 2.2gpT Au. As this is the highlight hole of a 24 holes program, its clear why the company has moved to Mani sub, however it does at least demonstrate how well mineralized the El Quevar district is, in our opinion, and the gold intercept is of interest, (previous drilling on the property has not identified gold)
We are encouraged by the initial results from Mani-Sub
Net-net, there some positives (Mani Sub) and Negatives (Carmen) on the exploration front. The positives out weigh the negatives in our mind, as exploration is at a very early stage, particularly regional exploration with drilling largely focused on Yaxtche, a deposit that was only discovered during the last 24 months.
Investors focus on exploration is understandable (we are also watching the exploration program closely), but in our opinion it is important not to loose the forest from the trees - Yaxtche is already 60Moz and represents one of the silver sector’s best undeveloped projects that can be developed in the next 3 years. Honourable Mention goes our to BCM (Speculative Buy 12/sh Target) for its Santa Ana, and Orko Silver (No Coverage, No Recommendation) for its share of La Preciosa
From a valuation standpoint, the exploration potential is mostly upside to our numbers. Our estimates are based on a resource of 100Moz, which is (in our opinion) a modest extrapolation from the 70-80Moz resource we expect in Q2
Our NAV of C$32/sh at $27/oz silver (0.67xNAV). At spot silver of ~$38.50/oz our NAV increase to C$53.40/sh (0.40x). Both levels are significantly above the current share price