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Post by Entendance on Sept 11, 2024 7:16:42 GMT -5
Accessible Mineralization and Good Exploration Potential
Assay Highlights:
24GF-1471: 4.9 g/t Au over 6.4 m (0.16 oz/t Au over 23.0 ft)
24GF-1474: 13.8 g/t Au over 2.4 m (0.44 oz/t Au over 9.8 ft)
24GF-1452: 9.8 g/t Au over 2.8 m (0.31 oz/t Au over 11.2 ft)
See Figure 5. All assay value intervals are true widths unless otherwise noted; TW=True Width, CW=Core Width
TORONTO, September 11th, 2024 – McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to provide new assay results from its Grey Fox deposit, part of the Fox Complex located in the Timmins region of Ontario, Canada. These results (see Table 1) demonstrate that the Gibson area of Grey Fox has good grading mineralization over mineable widths in close proximity to existing underground infrastructure. Grey Fox is currently a +1 Million ounce gold deposit and is the next project in our growth pipeline after the current development of our Stock Project...
'...The gold miners have yet to participate in gold’s rise. Unlike gold, gold mines are
capital assets, the values of which are dependent on future cash flows and capital inflows.
Consider September 3, a day on which oil fell by 5.8% and the gold price was flat. That
was a fantastic day for the economics of mining: revenues were constant, and one of the
major costs fell precipitously. Of course it takes time for such changes to flow into cash
flows, but the whole point of financial markets is to react to such changes immediately.
Yet gold stocks got clobbered on September 3 from adverse financial market liquidity.
Just because gold stocks responded in the moment to general asset prices, however,
does not mean that they are defective hedges against the coming financial chaos. We
know from the 1930s and the 1970s that over all but the shortest of time frames gold
mining shares do respond to the economics of mining: capital does and will find value.
It is already happening. On August 12, Gold Fields acquired Osisko Mining at a 55%
premium to its 20-day VWAP, which implied a price of $220/oz, the most expensive
transaction since the 2021 froth when Kinross acquired Great Bear for $275/oz (and
the resource wasn’t even defined until post-acquisition).
The difference between 2021 and now is that the gold price is trending higher not
because of the sugar rush of Fed printing COVID money but because of major structural
issues in the U.S. dollar. The Osisko acquisition put other companies on notice that
they will have to pay up for premier assets. It also removes a large development project
from the market. The juniors are challenged now because of the lack of capital flowing
into the junior subsector. But they are far more operationally levered than the mega
projects, and capital will find them at some point.
In the late 1990s, there was an analyst at Prudential Securities pounding the table
on steel prices and steel mill stocks. His analysis was compelling even as steel prices
slipped over 30% from 1998 to 2001, putting huge pressure on steel mill stocks. In
2001, the brokerage firm quietly let him go and dropped coverage of the steel universe.
Steel prices promptly tripled. Nucor shares went up nine fold. U.S. Steel shares went
up eighteen fold. Gold mining stocks are in a similar place as steel mill stocks were in
2001, except that the underlying commodity has already started to run. The miners will catch up.' HERE
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Post by Entendance on Oct 24, 2024 7:11:38 GMT -5
TORONTO, Oct. 24, 2024 -- McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to announce closing of an additional $35 million investment by Nuton LLC, a Rio Tinto Venture.
McEwen Copper previously announced a non-brokered private placement financing of up to 2,333,333 common shares at a subscription price of US$30.00 per common share, for gross proceeds of up to US$70 million (the "Offering"). The first tranche of the Offering was led by a $14 million investment by McEwen Mining and a $5 million investment by Rob McEwen.
In this second tranche of the Offering, Nuton (a Rio Tinto Venture) has purchased an additional 1,166,666 common shares of McEwen Copper for $35 million and two other investors have acquired 66,669 common shares for $2 million. Following the closing of this second tranche of the Offering, McEwen Copper has raised a total of $56 million.
Nuton now owns 17.2% of McEwen Copper on a fully diluted basis. Following these share issuances, McEwen Copper will have 32,804,284 common shares outstanding, giving it a post-money market value of $984 million, and its shareholders are: McEwen Mining Inc. 46.4%, Stellantis 18.3%, Nuton 17.2%, Rob McEwen 12.7%, Victor Smorgon Group 3.0%, and other shareholders 2.0%.
Proceeds from the Offering will be used to advance ongoing work on the feasibility study for the Los Azules copper project, which is scheduled for publication in the first half of 2025.
Subscription for the remaining 466,664 common shares in the Offering is available to qualified accredited investors, subject to a US$1 million minimum investment and certain other conditions. The securities sold in the Offering are private and subject to transfer restrictions until such time when they become listed on a public exchange.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Nuton
Nuton is an innovative venture that aims to help grow Rio Tinto’s copper business. At the core of Nuton is a portfolio of proprietary copper leaching related technologies and capability – a product of almost 30 years of research and development. Nuton offers the potential to economically unlock copper from primary sulfide resources through leaching, achieving market-leading recovery rates and contributing to an increase in copper production at new and ongoing operations. One of the key differentiators of Nuton is the ambition to produce the world’s lowest footprint copper while having at least one Positive Impact at each of our deployment sites, across our five pillars: water, energy, land, materials and society.
About McEwen Copper
McEwen Copper Inc. holds a 100% interest in the Los Azules copper project in San Juan, Argentina and the Elder Creek copper/gold project in Nevada, USA.
Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence (2022). A PEA published in June 2023 for the project estimated a $2.7 billion after-tax NPV8% at $3.75/lb Cu, a 27-year mine life, and an updated copper resource of 10.9 billion pounds at grade 0.40% Cu (Indicated category) and an additional 26.7 billion pounds at grade 0.31% Cu (Inferred category). For more details about the Los Azules PEA click here.
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Post by Entendance on Nov 1, 2024 10:52:57 GMT -5
McEwen Mining Q3 2024 Results Conference Call
November 1, 2024
TORONTO, Nov. 01, 2024 -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) invites you to join our conference call following the release of our Q3 2024 financial results on Wednesday, November 6th, 2024, at 11:00 AM EST, where management will discuss our financial results and project developments and follow with a question-and-answer session. Participants can ask questions directly over the phone during the webcast.
Wednesday November 6th 2024 at 11:00 AM EST
Toll Free Dial-In North America: (888) 210-3454
Toll Free Dial-In Other Countries: events.q4irportal.com/custom/access/2324/
Toll Dial-In: (646) 960-0130
Conference ID Number: 3232920
Webcast Link: events.q4inc.com/attendee/716235143/guest
An archived replay of the webcast will be available approximately 2 hours after the conclusion of the live event. Access the replay on the Company’s media page at www.mcewenmining.com/media.
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Post by Entendance on Nov 6, 2024 4:26:31 GMT -5
McEwen Mining GAAP EPS of -$0.04 beats by $0.06, revenue of $52.25M beats by $8.37M
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) released its financial and operational results for the third quarter ended September 30, 2024 (“Q3”). The Company achieved significant improvements in revenue and operating profitability, driven by higher gold prices and strong production. The results reflect McEwen Mining’s ongoing commitment to expanding gold and silver production, advancing its large copper project and robust investment in exploration programs.
Financial Highlights (Q3 2024 vs Q3 2023)
Revenue increased 36% to $52.3 million due to higher realized gold prices and an increase in gold equivalent ounces (GEOs) produced for our 100%-owned mines. Average gold price sold was $2,499 per ounce in Q3 vs $1,920 in Q3 2023.
Gross profit increased 268% to $13.8 million due to higher gold prices, improved operational efficiencies and higher production.
Net loss significantly decreased to $2.1 million or $0.04 per share, compared to a net loss of $18.5 million or $(0.39) per share in Q3 2023, reflecting the Company’s focused efforts on cost controls and lower expenditures at the Los Azules copper project.
Operating cash flow increased to $23.2 million or $0.45 per share, compared to negative operating cash flow of $2.3 million or $(0.04) per share in Q3 2023, primarily reflecting the improvement in gross profit above.
Adjusted EBITDA(1) increased 586% to $10.5 million or $0.20 per share, compared to $1.5 million or $0.03 per share in Q3 2023. Adjusted EBITDA excludes the impact of McEwen Copper’s results and reflects the operating earnings of our mining assets, including the San José mine. This measure underscores McEwen Mining’s success in improving cash flow and operating performance across its production portfolio.
Operational Highlights
Gold Bar Mine, Nevada: Production reached 13,640 oz Au(1) in Q3, a 43% increase compared to the same period in 2023, driven by higher gold grades and improved recovery rates. The site is on track to meet its annual production guidance of 40,000 to 43,000 oz Au.
Fox Complex, Canada: Production totaled 7,855 oz Au(1) down 30% year-over-year, impacted by a temporary shortfall in development due to a stope failure in Q2 2024 that limited stope availability. However, the Company anticipates enhanced stope availability in Q4 2024, which will support increased production. The Fox Complex is expected to produce approximately 15-20% fewer ounces compared to its annual guidance of 40,000 to 42,000 oz Au.
San José Mine, Argentina: The 49% share of production from the San José Mine in Argentina was 13,684 GEOs(1)(3). Lower than anticipated grades contributed to a 23% decrease from Q3 2023. Nevertheless, Hochschild plc, as operator of the San José mine, expects to achieve its annual guidance for San José, which stands at 50,000 to 60,000 GEOs for McEwen Mining’s attributable share. The improved metal price environment has allowed the San José mine to build a strong liquidity position, with an increase of $40.4 million in working capital from $34.1 million at September 30, 2023 to $75.5 million at September 30, 2024, while also investing $8.5 million in exploration and $3.5 million in expanding the mill during 2024.
Strong safety record:
Time Since Last Lost Time Injury (LTI)
Gold Bar mine 54 months no LTI
Fox Complex 33 months no LTI
Los Azules project 1.3 million manhours no LTI
Corporate Developments
McEwen Copper recently raised $56 million at $30 per share to fund the ongoing development of its Los Azules copper project in Argentina. Of the total raised, $14 million was contributed by McEwen Mining, $5 million by Rob McEwen, $35 million by Nuton LLC, a Rio Tinto venture, and $2 million by two individual investors. Following these investments, McEwen Mining’s ownership in McEwen Copper now stands at 46.4% and the post-money market value of McEwen Copper is now $984 million. Over $350 million have been invested in exploration to develop Los Azules as a world-class copper deposit, including amounts spent by Minera Andes Inc. until 2012 and McEwen Mining until 2021.
McEwen Mining completed the acquisition of Timberline Resources in August, thereby expanding our exploration and potential production footprint in Nevada. This acquisition includes three properties in Nevada: Eureka, which is close to our Gold Bar Mine, and contains an oxide gold resource of 423,000 oz (Measured and Indicated) and 84,000 oz (Inferred) plus attractive exploration targets; Paiute, which is adjacent to McEwen Copper’s Elder Creek project; and Seven Troughs, which is purported to host the highest grade historical gold mine in the State of Nevada(4), with production starting from 1907. All represent opportunities for long-term growth.
xploration and Development Investments Driving Future Growth
The investment in exploration and development continued in the quarter with $6.1 million on the Los Azules copper project and $5.3 million across Gold Bar and Fox Complex. Activities during the quarter were:
Los Azules Copper Project, Argentina: Our flagship copper development project is moving steadily towards completion of the feasibility study scheduled for publication in the first half of 2025. The latest private placement funding of $56 million will allow McEwen Copper to complete this study. Additional funding will support other initiatives, including discovery-oriented exploration programs.
Gold Bar Mine, Nevada: Exploration activities are focused on near-mine drilling, aimed at extending the mine life and identifying new resource areas. A mine plan is in place to extend production from Gold Bar into 2029, and additional opportunities at the Eureka property, obtained through the Timberline acquisition, could potentially contribute to production beginning in 2027, depending on permitting and exploration outcomes.
Fox Complex, Canada: During the first nine months (9M) of 2024, $5.5 million was invested developing our Stock project at the Fox Complex. Earthworks have been completed in preparation for our mine portal construction later in 2024, with the intent of driving a ramp connecting the Stock East, Stock Main and Stock West zones. Rehabilitation of the historic Stock shaft is being considered to provide alternative means of accessing these zones to facilitate increased production.
Individual Mine Performance (See Table 1):
Gold Bar production increased 43% to 13,640 oz Au(1) in Q3, compared to 9,507 oz Au in Q3 2023 due to higher mined grades and recovery rates. During 9M 2024, gold production was 37,654 oz Au and the mine remains on track to meet annual costs per ounce guidance and production of 40,000 to 43,000 oz Au.
Cash costs and AISC per GEO sold(2) in Q3 were $1,281 and $1,822, respectively, due to higher planned stripping costs in the quarter. Operations are expected to deliver on full-year cost guidance.
Gold Bar Mine
($ millions) Q3 2024 Q3 2023 9M 2024 9M 2023
Revenue from gold sales 33.3 18.0 88.2 45.5
Cash costs 17.1 14.4 49.5 41.5
Gross margin 16.2 3.6 38.7 4.0
Gross margin % 48.6 % 20.0 % 43.9 % 8.8 %
Fox gold production was 7,855 oz Au(1), a 30% decrease compared to 11,174 oz Au in Q3 2023 due to a stope failure in Q2 2024, which led to a shortfall in development and limited stope availability during the quarter. During 9M 2024, gold production was 23,600 oz Au vs 34,200 oz Au in 9M 2023. While stope availability is expected to improve during Q4 2024, resulting in higher gold production compared to prior quarters in 2024, annual production is projected to be 15-20% below our guidance of 40,000 to 42,000 oz Au.
Cash costs and AISC per GEO sold(2) in Q3 were $1,572 and $1,953, respectively. Accelerated development costs to improve stope availability for Q4 2024 increased unit costs during the third quarter. While we expect production to improve in the fourth quarter, including by adding new production from our Black Fox mine, we expect unit costs to be 15 to 20% higher than guidance.
Fox Complex
($ millions) Q3 2024 Q3 2023 9M 2024 9M 2023
Revenue from gold sales 19.0 20.3 51.5 61.9
Cash costs 12.6 12.1 37.3 38.6
Gross margin 5.9 8.2 14.2 23.2
Gross margin % 33.7 % 40.4 % 27.5 % 37.5 %
San José’s attributable production was 13,684 GEOs, a 23% decrease from 17,798 GEOs in Q3 2023. Production was impacted by lower gold and silver grades mined. Production is expected to increase during Q4 2024. During 9M 2024, 41,290 attributable GEOs were produced. Hochschild Mining, our joint venture partner and mine operator, asserts that the mine remains on track to meet annual production guidance, with our attributable portion at 50,000 to 60,000 GEOs.
Cash costs per GEO sold(2) in Q3 was $2,173 and AISC per GEO sold was $2,675. While cost inflation remained high from an Argentine perspective, the relative strength of the Peso against the US Dollar continued to increase costs in US Dollar terms. Combined with temporary lower than expected mined grades, unit costs were higher than planned. While production is expected to recover in Q4 2024 through mining from new areas, unit costs are expected to remain above guidance due to macroeconomic factors.
San José Mine—100% basis
($ millions) Q3 2024 Q3 2023 9M 2024 9M 2023
Revenue from gold and silver sales 70.4 64.5 210.6 179.4
Cash costs 58.0 43.4 154.1 131.4
Gross margin 12.4 20.8 44.2 25.4
Gross margin % 35.1 % 32.2 % 21.0 % 14.2 %
Management Conference Call
Management will discuss our Q3 financial results and project developments and follow with a question-and-answer session. Questions can be asked directly by participants over the phone during the webcast.
Wednesday
November 6th 2024
at 11:00 AM EST
Toll-Free Dial-In North America: (888) 210-3454
Toll-Free Dial-In Other Countries: events.q4irportal.com/custom/access/2324/
Toll Dial-In: (646) 960-0130
Conference ID Number: 3232920
Webcast Link: events.q4inc.com/attendee/716235143/guest
An archived replay of the webcast will be available approximately 2 hours following the conclusion of the live event. Access the replay on the Company’s media page at www.mcewenmining.com/media.
Table 1 below provides production and cost results for Q3 & 9M 2024 with comparative results for Q3 & 9M 2023 and our Guidance for 2024.
Q3 9M 2024
Guidance
2023 2024 2023 2024
Consolidated Production
GEOs(1) 38,500 35,200 104,400 103,500 130,000-145,000
Gold Bar Mine, Nevada
GEOs(1) 9,500 13,600 23,800 37,700 40,000-43,000
Cash Costs per GEO Sold(2) 1,529 1,281 1,743 1,302 $1,450-1,550
AISC per GEO Sold(2) 2,160 1,822 2,203 1,548 $1,650-1,750
Fox Complex, Canada
GEOs(1) 11,200 7,900 34,200 23,600 40,000-42,000
Cash Costs per GEO Sold(2) 1,078 1,572 1,129 1,572 $1,225-1,325
AISC per GEO Sold(2) 1,288 1,953 1,321 1,909 $1,450-1,550
San José Mine, Argentina (49%)(3)
GEOs(1)
17,800 13,700 46,400 41,300 50,000-60,000
Cash Costs per GEO Sold(2) 1,445 2,173 1,505 1,788 $1,300-1,500
AISC per GEO Sold(2) 1,953 2,675 1,971 2,194 $1,500-1,700
Notes:
'Gold Equivalent Ounces' are calculated based on a gold to silver price ratio of 85:1 for Q3 2024 and 82:1 for Q3 2023. 2024 production guidance is calculated based on an 85:1 gold to silver price ratio. Gold Bar and Fox mines produce insignificant (silver) co-products with gold, therefore GEOs and ‘Oz Au’ are equivalent measures.
Cash costs per ounce and all-in sustaining costs (AISC) per ounce are non-GAAP financial performance measures with no standardized definition under U.S. GAAP. For a definition of the non-GAAP measures see "Non-GAAP- Financial Measures" section in this press release; for the reconciliation of the non-GAAP measures to the closest U.S. GAAP measures, see the Management Discussion and Analysis for the quarter ended September 30, 2024, filed on EDGAR and SEDAR Plus.
Represents the portion attributable to us from our 49% interest in the San José Mine.
Records indicate historic production from 1907-1955 was 158,468 oz. gold grading 35.6 g/t and 995,876 oz. of silver grading 223.9 g/t.
Technical Information
The technical content of this news release related to financial results, mining and development projects has been reviewed and approved by William (Bill) Shaver, P.Eng., COO of McEwen Mining and a Qualified Person as defined by SEC S-K 1300 and the Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects."
Reliability of Information Regarding San José
Minera Santa Cruz S.A (MSC)., the owner of the San José Mine, is responsible for and has supplied the Company with all reported results from the San José Mine. McEwen Mining’s joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
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