"Cash operating cost per ounce" for silver is calculated by assuming that the Velardena mine produces silver with gold, zinc and lead by-products. Total operating costs are allocated to silver, and estimated revenues from gold, zinc and lead production, net of smelting and refining costs for gold, lead and zinc, are credited against those costs.The term "cash operating cost per ounce" includes actual mining, milling, mine related overhead costs, treatment and refining charges, freight, insurance and marketing costs incurred on metal production during the period. Cash operating cost excludes income taxes, depreciation, amortization and provisions for reclamation. Cash operating cost differs from costs applicable to the sale of metals determined in accordance with GAAP. Costs applicable to the sale of metals in accordance with GAAP reflect operating costs incurred to produce concentrates, dore and precipitates that were sold during the period and write-downs of inventory to net realizable value, whereas "cash operating cost per ounce" reflects costs incurred to produce concentrates, dore and precipitates produced during the period. In addition, costs applicable to metals sold do not include certain treatment and refining charges, which in accordance with GAAP are netted against revenue.
Golden Minerals Provides Update For Velardena Operations
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