owns and controls a diversified portfolio of exploration projects with potential district scale properties in Latin America. The company's project pipeline is defined as feasibility and advanced exploration. El Quevar (Argentina) is the most advanced project under the feasibility stage. The Zacatecas project (Mexico) is under the advanced exploration stage, and the five exploration stage projects are Atlas, Chavin, Cochabamba, Jehuemarca and La Pinta, in Argentina, Mexico and Peru.
During the first quarter ended March 2011, Golden Minerals recorded a net loss of $15.9 million ($1.08 per share), including $8.7 million expenses related to the El Quevar project, $3.7 million as exploration costs and $2.2 million as administrative overheads. At the end of March 2011, cash and cash equivalents stood at $104.3 million.
During April 2011, the company provided an update on the progress of underground development drifting at the El Quevar project and also announced additional high grade intercepts at holes drilled on the El Quevar Yaxtché deposit. The company has completed approximately 430 meters of development drifting at El Quevar at an elevation of 4,774 meters, and has advanced approximately 200 meters along strike in the central Yaxtché zone.
For the remainder of 2011, Golden Minerals expects to spend approximately $40 million to $48 million to fund ongoing exploration drilling, underground drifting, and related technical engineering and project assessment at the El Quevar project to confirm the mine model and further define the extent of the resource. In addition, it expects to spend approximately $12 million to fund exploration activities and property holding costs including the drilling of two targets in Argentina, three in Peru and four in Mexico.
All the four analysts covering the stock recommend a buy. There are no sell ratings on the stock. On average, analysts estimate 191% upside to $56.53 in value from current levels. The stock surged 167% in trade on Monday.
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