TD Securities Downgrades Golden Minerals Company (AUMN) to Reduce on Dilutive Financing

September 17, 2012 8:10 AM EDT
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Price: $0.70 +1.45%

Rating Summary:
    3 Buy, 1 Hold, 1 Sell

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    Up: 18 | Down: 17 | New: 10
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TD Securities downgraded Golden Minerals Company (NYSE: AUMN) from Hold to Reduce with a C$4.25 price target (down from C$5.50) following dilutive financing.

"The equity offering should significantly strengthen the company’s balance sheet and address near-term liquidity concerns that in our view have pressured the stock this year. The company should now have sufficient funds to complete the planned expansion of Velardena to 1,150 tpd," the analyst comments. "However, we believe that the terms of the offering are very dilutive to shareholders and much more generous than comparable transactions we have seen in a recently improved financing market given the steep discount to the previous close and five-year term of the half warrant included in the unit."

For an analyst ratings summary and ratings history on Golden Minerals Company click here. For more ratings news on Golden Minerals Company click here.

Shares of Golden Minerals Company closed at $5.86 yesterday.

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