With gold and silver prices driven down, Golden Minerals suspends production

[Serpo]

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With gold and silver prices driven down, Golden Minerals suspends production Submitted by cpowell on Fri, 2013-06-21 21:22. Section: Daily Dispatches (http://www.gata.org/taxonomy/term/2) 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.






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... (http://finance.yahoo.com/news/golden-minerals-announces-suspension-production-200600987.html)


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[Ponce]

Very stupid to closed down..... pay the employees a little bit less and they will be happy to keep on working...tell the stock holders to tighten their belts ........ the rewards later on will be out of this world.

They say to save in time of plenty for time of sorrow.....but......this is a new game with new rules........my truck is 22 years old and don't take vacations....one of this days the vacations will come to me.

V

[Serpo]

Not closing down but they ..................suspend production

[osoab]

Very stupid to closed down..... pay the employees a little bit less and they will be happy to keep on working...tell the stock holders to tighten their belts ........ the rewards later on will be out of this world.

They say to save in time of plenty for time of sorrow.....but......this is a new game with new rules........my truck is 22 years old and don't take vacations....one of this days the vacations will come to me.

V



You missed the key term in the piece Ponce. "Unions" They have their set pay. They will not and by contract/prevailing wage cannot accept anything lower.

[Ponce]

If they don't want to feed the kids the pay attention to the unions......they were the ones to kill American jobs by having the factories moved overseas.

They tried to kill me in 1976 for been the only one to keep on working for "Hadroulic Research" in Valencia CA, two days later about 50 more workers came back.....it was an open union which you didn't have to join if you didn't want to.

V

[Twisted Titan]

I think this a way for bankerster to buy real assets on the cheap when they buckle under.

They did the same thing during the great depression.

[gunDriller]

problem is, the banksters can just buy the company's stock, if they can't buy the output of their mines.

[Ponce]

problem is, the banksters can just buy the company's stock, if they can't buy the output of their mines.

Driller? that's what they have been doing now for a long time......making contracts with the productions of the mines to buy the output before it comes into the market.

V