AUM.TO  Golden Minerals Co

Exchange

TSX

Sector

Mining

Industry

Market Cap.

80.03M

Vuru Grade

2.50/100

Current Price

$0.90
+0.03 (+3.45%)

Company Metrics

  • P/E 0
  • P/S 11.46
  • P/B 9.56
  • EPS -0.17
  • Cash ROIC -71.62%
  • Cash Ratio 0.65
  • Dividend 0 / 0%
  • Avg. Vol. 34,064.00
  • Shares 52.97M
  • Market Cap. 80.03M

Company Description

Golden Minerals Company engages in the exploration and development of precious metals and other mineral properties in Mexico and South America. It explores for gold, silver, copper, zinc, and lead ores. The company primarily focuses on exploring the El Quevar silver project that comprises 27 concessions totaling approximately 63,000 hectares located in the Salta province of Argentina. It also owns... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Golden Minerals Provides Business Update
GlobeNewswire (press release) - Aug 9, 2017
The Company has the right to acquire the three additional claims by paying $0.7 million over four years with an initial payment of $50,000 on signing and $30,000 in six months.
Warren Rehn Named President Of Golden Minerals Company
PR Newswire (press release) - May 27, 2015
GOLDEN, Colo., May 26, 2015 /PRNewswire/ -- Golden Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT: AUMN) (TSX: AUM) announced today that Warren Rehn has been promoted to President of Golden Minerals Company. Jeffrey G.
Golden Minerals Co (NYSEMKT:AUMN) Cut to Strong Sell at ValuEngine
BNB Daily (blog) - Aug 16, 2017
ValuEngine cut shares of Golden Minerals Co (NYSEMKT:AUMN) from a sell rating to a strong sell rating in a research report report published on Wednesday, July 19th.
Golden Minerals Provides Update
PR Newswire (press release) - Oct 29, 2015
The Company is focused on advancing near-term, high-grade silver and gold production opportunities in Mexico, particularly in close proximity to its Velardena processing plants.
Golden Minerals Reports Second Quarter 2017 Results
Nasdaq - Aug 8, 2017
GOLDEN, Colo., Aug. 08, 2017 (GLOBE NEWSWIRE) -- Golden Minerals Company ("Golden Minerals", "Golden" or "the Company") (NYSE American:AUMN) (TSX:AUMN) today announced financial results for the second quarter ended June 30, 2017 and ...
Should You Buy Golden Minerals Company (AUMN) On Current Analyst Views? - Fiscal Standard
Golden Minerals Company (AMEX:AUMN) and Terago Inc. (TSX:TGO) Stock Valuation ...
Stock Daily Review - 20 hours ago
Checking in on some valuation rankings, Golden Minerals Company (AMEX:AUMN) has a Value Composite score of 86. Developed by James O'Shaughnessy, the VC score uses five valuation ratios.
Golden Minerals Company (:AUMN) Gaining Traction, Up 2.81% For The Week - The Herald
Golden Minerals (AUMN) Looks Good: Stock Rises by 8.2% July 19, 2016
Zacks.com - Jul 19, 2016
Golden Minerals Company (AUMN - Free Report) was a big mover last session, as the company saw its shares rise over 8% on the day.
Operations Outlook for Golden Minerals Co (NYSEMKT:AUMN)
The Oracle Dispatch - Nov 3, 2016
Golden Minerals Co (NYSEMKT:AUMN) is a mid-tier Mexican miner with high growth prospects. Mining companies worldwide are benefiting from rising prices for precious metals, and that's leading to a real bounce for companies like Golden Minerals Co.
ValuEngine Lowers Golden Minerals Co (NYSEMKT:AUMN) to Strong Sell
BNB Daily (blog) - Aug 1, 2017
Golden Minerals Co logo ValuEngine lowered shares of Golden Minerals Co (NYSEMKT:AUMN) from a sell rating to a strong sell rating in a research note published on Wednesday, July 19th.
Golden Minerals Company (AUMN) Receives An Update From Brokers - The De Soto Edge
Institutional Investors Lead Shift in Golden Minerals Co (INDEXNASDAQ:AUM ...
BZ Weekly - Aug 14, 2017
Golden Minerals Co (INDEXNASDAQ:AUM) institutional sentiment decreased to 1.22 in Q4 2016. Its down -1.00, from 2.22 in 2016Q3.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AUM.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AUM.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.90 Current Price

$-1.07 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.47 Book Price

Overvalued by 47.22%


Very Poor Cash Return on Invested Capital over the past 5 years

AUM.TO has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

AUM.TO has lost $71.62 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -75.09M -46.26M -29.68M -18.96M -9.98M
divided by
Invested Capital 348.79M 290.15M 29.85M 28.39M 6.46M
Cash ROIC -21.53% -15.94% -99.41% -66.79% -154.43%

Very Poor Return on Equity over the past 5 years

AUM.TO has shown an inability to deliver results for shareholders. This could be due to poor management, AUM.TO operating in a highly competitive industry, or having a weak business in general.

AUM.TO has generated a $190.48 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -62.67M -92.03M -240.38M -18.82M -25.38M
divided by
Stockholders' Equity 337.77M 285.27M 46.46M 32.73M 7.77M
Return on Equity -18.55% -32.26% -517.44% -57.50% -326.64%

Poor Business Performance over the past 10 years

AUM.TO's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

AUM.TO has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -347.65M -314.89M -167.01M -42.52M -32.06M -75.09M -46.26M -29.68M -18.96M -9.98M

Weak Balance Sheet

AUM.TO's financial position is not ideal. The key is to check whether AUM.TO is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 440.72M 92.98M 50.07M 9.01M 121.59M 48.65M 44.65M 19.26M 8.68M 4.15M
Current Assets 488.98M 168.81M 168.52M 12.56M 123.29M 58.40M 54.79M 22.48M 12.23M 5.88M
Total Assets 1.27B 1.32B 606.35M 21.70M 135.62M 413.02M 348.10M 54.88M 41.26M 17.00M
Current Liabilities 94.87M 368.91M 581.13M 2.49M 3.00M 15.58M 13.31M 5.77M 4.19M 6.39M
Total Liabilities 1.37B 1.41B 805.43M 3.94M 3.80M 75.25M 62.83M 8.43M 8.52M 9.23M
Stockholder' Equity -103.29M -84.10M -199.08M 17.76M 131.82M 337.77M 285.27M 46.46M 32.73M 7.77M
Current Ratio 5.15 0.46 0.29 5.04 41.12 3.75 4.12 3.90 2.92 0.92
TL-to-TA 1.08 1.06 1.33 0.18 0.03 0.18 0.18 0.15 0.21 0.54

Low or No Reinvestment of Profits over the past 10 years

AUM.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to AUM.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -773.34M -761.78M -880.02M -20.28M -53.55M -116.22M -208.25M -448.63M -452.00M -477.38M
Retained Earnings Growth - 1.49% -15.52% 97.70% -164.11% -117.03% -79.18% -115.43% -0.75% -5.62%

Erratic Net Profit Margins over the past 10 years

AUM.TO has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -513.55M 11.56M -118.24M 219.19M -33.27M -62.67M -92.03M -240.38M -18.82M -25.38M
divided by
Revenue - 45.93M 419.51M 12.42M 11.22M 1.84M 26.09M 10.68M 235,000.00 8.07M
Net Profit Margin - 25.16% -28.18% 1,765.26% -296.67% -3,413.45% -352.78% -2,250.75% -8,009.79% -314.50%

Erratic Gross Profit Margins over the past 10 years

AUM.TO has had highly erratic gross profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit -8.32M 2.99M 73.31M 8.67M 8.65M -4.25M -7.28M -6.85M -1.42M -5.63M
divided by
Revenue - 45.93M 419.51M 12.42M 11.22M 1.84M 26.09M 10.68M 235,000.00 8.07M
Gross Margin - 6.51% 17.48% 69.79% 77.12% -231.48% -27.92% -64.18% -604.26% -69.73%

High Capital Intensity over the past 10 years

AUM.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

645.32% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 276.92M 148.86M 27.45M 5.42M 4.21M 8.49M 9.62M 1.80M 500,000.00 44,000.00
divided by
Net Income -513.55M 11.56M -118.24M 219.19M -33.27M -62.67M -92.03M -240.38M -18.82M -25.38M
Capital Expenditure Ratio -53.92% 1,288.16% -23.22% 2.47% -12.66% -13.55% -10.45% -0.75% -2.66% -0.17%

No Dividend History over the past 10 years

AUM.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - -236.93M -3.50M - - - - - -
divided by
Shares Outstanding 56.50M 59.07M 58.95M 19.54M 8.95M 21.28M 37.52M 42.84M 45.86M 52.97M
Dividend Paid Per Share - - -4.02 -0.18 - - - - - -
Price at Year End - - - 10.74 26.60 5.89 4.48 0.49 0.63 0.28
Dividend Yield - - - -1.67% - - - - - -

History of Stock Buybacks over the past 10 years

AUM.TO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 56.50M 59.07M 58.95M 19.54M 8.95M 21.28M 37.52M 42.84M 45.86M 52.97M
Stock Bought Back - -4.35% 0.21% 201.75% 118.32% -57.95% -43.29% -12.41% -6.59% -13.42%
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