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With gold and silver prices driven down, Golden Minerals suspends production
Golden Minerals Announces Suspension of Production
Company Press Release
via Yahoo News and PRNewsire
Friday, June 21, 2013
GOLDEN, Colorado -- Golden Minerals Co. announced that it has suspended operations at its Velardena mine as of June 21, 2013, in order to conserve the asset until operating plans and prices for silver and gold indicate a sustainable cash margin for operations.
The employees at the Velardena mine were informed of the company's decision in the afternoon of June 21, 2013.
In February 2013 the company anticipated the Velardena operations would achieve operating cash neutrality during the third quarter 2013, assuming gold and silver prices of $1,600 per ounce and $30 per ounce, respectively. In May 2013 the company projected a $5 million negative margin from the operations for the remaining three quarters of 2013 at prices of $1,500 gold and $25 silver. Metals prices have continued to decline and remain below these levels.
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The company is placing the mine and processing plants on a care and maintenance program to enable a re-start when operating plans and metals prices support a cash positive outlook for the property.
Approximately 470 positions at the Velardena operations are being eliminated as a result of the suspension.
The company is negotiating the specific terms of a severance package with its labor unions. The company plans to retain a core group of approximately 50 to 60 employees to facilitate a re-start of operations and to maintain and safeguard the longer term value of the asset.
For the complete statement:
http://finance.yahoo.com/news/golden-minerals-announces-suspension-produ...
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