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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (192258)	10/1/2010 2:56:13 PM
From: mimur	Respond to of 312358

Dahlman Rose is....$104.00 target.... GOLDEN MINERALS COMPANY (AMEX:AUMN) Unlocking Value Through Exploration & Development Recommendation Rating: Buy Price Target: $104.00 Expected Return: 569.7% Dividend: $0.00 Enterprise Value (MM): $104.2 Yield: NM Expected Total Return: 569.7% Cash Flow per Share 2010E 2011E 2012E FY $(0.36) $(0.27) $1.72 P/CF (43.1)x (57.5)x 9.0x Stock Statistics as of 09/30/2010 Pricing Date: 09/30/2010 Price: $15.53 52-Week Range: $16-$5 Shares Out (MM): 9.3 Market Cap (MM): $144.0 Net Debt: $(39.8) Fundamentals Earnings Per Share ('10E) $(0.46) Earnings Per Share ('11E) $(0.53) Earnings Per Share ('12E) $0.67 P/E ('10) NM P/E ('11) NM P/E ('12) 23.2x Net Asset Value: $103.97 P/NAV: 0.15x Gold: NA $100 Au Leverage / Share: $2.35 $5 Ag Leverage / Share: $36.02 Golden Minerals offers investors exposure to a deep portfolio of exploration and development assets, rapidly moving forward toward asset definition and production. We are initiating with a BUY rating based on valuation and the positive impact of near-term catalysts. Attractive & Deep Portfolio of High-Grade Assets Inherited from Apex Silver, the company has a deep portfolio of early stage development and exploration assets. These assets are generally low capital intensive projects located in mining friendly regions characterized by rapid permitting and construction, sufficient pool for labor, and low energy/infrastructure requirements. With advanced assets located in northern Argentina, central Mexico, and Peru, we expect management to aggressively develop assets to construction. Golden benefits from nearly a decade of project accumulation by its predecessor company at much lower metal prices. The flagship asset, El Quevar silver project, is rapidly progressing to development and construction. Experienced and Proven Management Team Senior management consists of former exploration and operation executives from Cyprus, Homestake, Phelps Dodge, Kinross, Meridian Gold, Pan American Silver, and Apex Silver. The team successfully operated major copper and gold mines, as well as built and operated the 40,000 tpd San Cristóbal zinc-silver mine now owned by Sumitomo. In the current environment of junior miners looking to develop precious metal assets, it is unusual to find a pre-producer with such experience. Deeply undervalued Due to its evolution, the name remains under-covered and under-exposed. Similarly, we believe the asset potential is poorly understood by the market and yet highly prospective. Ironically, the company’s limited liquidity and shares outstanding, while providing leverage to the underlying assets, also limits the attraction to large institutional investors. Even after recent price performance, shares appear to be trading at 0.15x P/NAV, a deep discount to its peer group. Golden also provides significant silver leverage. -Alan Coombe Dahlman Rose & Co. (212) 702-4519 acoombedrco _________________________________________________ The information contained in this e-mail communication and any attached documentation belongs to Dahlman Rose & Company, LLC MEMBER: FINRA/SIPC and may be privileged, confidential or otherwise protected from disclosure and is intended solely for the use of the designated recipient(s). If the reader or recipient of this communication is not the intended recipient, or an employee or agent of the intended recipient who is responsible for delivering it to the intended recipient, you are hereby notified that any whole or partial review, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this communication in error, please immediately notify us by return e-mail and promptly delete the original electronic e-mail communication and any attached documentation