McEwen Mining Inc
McEwen Mining Inc
Full text is available to Level 2 subscribers only
Subscribe to Mining Business Media
Full access to Mining Business Media's unique blend of global mining sector news and commentary is available by subscription only.
$A275.00 per year*
(*up to 10 users)
GST included in Australia
Direct debit/cheque/credit card:
Click here
Subscription inquiries, email subscribe@miningbusiness.net or call 61+413 772 044.
Related Content
Lower gold/silver production has seen McEwen Mining post a $US19.3M net loss for the Mar 2022 qtr (Q1 22), primarily due to $14.4M invested in exploration/advanced projects and a gross loss of $6M from its operations.
The bottom line was on a gold equiv (AuEq) output fall to 25,100oz from Q1 21’s 30,600oz, with gold down to 20,850oz from 23,300oz and silver to 336,500oz from 493,200oz.
Despite lifting Dec 2021 year (FY/CY 21) gold equivalent output to 154,410oz AuEq from the previous year’s 115,600oz and revenue to $136M from $104.8M, McEwen Mining has posted a net loss of $56.7M, albeit well down on the previous year’s $152.3M loss.
The loss relates primarily to the investment of $35M in advanced projects/exploration and general/administrative costs of $11.4M. The gross loss was $6.5M from the previous $27M loss.
Diversified gold/silver producer McEwen Mining has lifted 2021 year (FY/CY 21) gold equivalent output to 154,410oz from 115,600oz, consisting of 118,500oz of gold topping FY/CY 20’s 92,100oz and silver up to 2.57Moz from 2.02Moz.
The company expects its operations in Nevada, Canada, Mexico and Argentina to produce 110,500oz-127,900oz of gold in FY/CY 22, with silver easing to 2.3Moz-2.45Moz and gold equiv of 141,000oz-160,400oz.
McEwen Mining has had a good Sept 2021 qtr (Q3 21) with gold equivalent production up to 42,900oz AuEq from Q2 21’s 30,400oz, with gold jumping to 32,100oz from 23,100oz and silver to 792,000oz from 575,000oz.
The result was on Fox Complex, Timmins, Canada (100%) output of 8,300oz AuEq; the Gold Bar Mine, in Nevada’s US (100%) 12,400oz; the San José Mine, Santa Cruz, Argentina (49%) 21,600oz and the El Gallo project, Sinaloa, Mexico (100%) output of 560oz from residual leaching.
The continued execution of McEwen Mining’s operational/financial turnaround strategy has seen June 2021 qtr (Q2 21) gold equivalent (AuEq) production rise to 40,700oz from Q1 21’s 30,600oz and on track for FY/CY 21 141,000oz-160,400oz.
The trend is expected to continue in the remainder of FY 21, as the Froome mine at the Fox Complex reaches commercial production in Q4 21.
Q2 21 gold output rose to 31,700oz from 23,300oz and silver to 611,700oz from 493,200oz.
McEwen Mining has launched a non-brokered private placement financing of up to $US80M for 8M shares of wholly-owned subsidiary McEwen Copper, with boss Rob McEwen taking half and the remaining 4M shares available to qualified accredited investors and subject to a $2M minimum investment.
Americas focused McEwen Mining has flagged a 20%-40% jump in gold/silver production for the current Dec 2021 year (FY/CY 21) from the previous year, despite Mar 2021 (Q1 21) gold output easing to 23,300oz from Q4 20’s 24,100oz and silver to 493,200oz from 532,400oz taking gold equiv production down to 30,600oz AuEq from 31,100oz
Americas gold-silver miner McEwen Mining has temporarily suspended operations at its El Gallo project in Mexico as a result of an illegal blockade of the main access by members of the nearby communities demanding that the annual payments/infrastructure improvements made to the local communities should increase significantly.
The feasibility study on McEwen Mining’s 100%-owned, 9.5-year LoM, initial $US66M Fenix gold-silver project in Sinaloa, Mexico, has flagged phase-1 (years 1-6) gold production of 26,000oz pa to be followed by phase-2 (years 7 to 9.5) gold-silver average annual output of 4.5Moz silver equiv.
The study has ascribed the project, which will pick up on the closure and utilisation of the Gallo facilities, a base case after-tax IRR of 28% using $US1,500oz gold/$17oz silver and an after-tax NPV(8%) of $32M.
McEwen Mining has flagged a big jump in Dec 2021 year (FY/CY 21) gold equivalent production to 141,000oz-160,400oz AuEq, up 21%-38% on the previous year.
Gold output from its 4 operations spanning Argentina, US, Mexico and Canada is estimated at 110,500oz-127,900oz and 2.3Moz-2.45Moz silver.
The company attributes the turnaround to new leadership in its senior executive and operations teams.