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Golden Minerals: A Look At The Valuation After The Drop

May 03, 2021 8:44 AM ETGolden Minerals Company (AUMN), AUMN:CA
Taylor Dart profile picture
Taylor Dart


  • Golden Minerals has slid more than 40% from its highs following the frothy sentiment we saw in February in the silver space.
  • This pullback has occurred despite the fact that the company remains on track to meet its guidance of ~13,000 ounces of gold production this year from its Rodeo Gold Project.
  • At a current market cap of ~$122 million, Golden Minerals is valued at ~$3.58/oz based on solely measured & indicated ounces at Rodeo and Velardena.
  • While this is not an unreasonable valuation for a junior producer, I see better value elsewhere in the sector.

Golden rock in the old mine
Photo by Ivan Boryshchak/iStock via Getty Images

It's been a rough few months for the Silver Miners Index (SIL) after we saw a brief bout of extreme exuberance in the sector in early February. Typically, parabolic rallies in cyclical stocks do

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Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I am/we are long GLD, GLGDF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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