- Golden Minerals announced its transition to producer last week with the first loads of Rodeo ore material trucked to Velardena for processing.
- Assuming a gold price of $1,800/oz, Golden Minerals is in a position to generate over $27 million in revenue in FY2021 from Rodeo, and is exploring restarting Velardena.
- While this transition is a bullish development because it should reduce the need for share dilution, I see much better valuations out there in the sector among junior producers.
- Given this relative overvaluation and the fact that Rodeo has a very short mine life, I see no reason to chase the stock above US$0.72.
For further details see:
Golden Minerals: From Explorer To Producer Ahead Of Schedule