McEwen Mining Reports Strong Financial Growth

By Bobby Samwell • Wednesday, July 03 15:15 • Permanent Link

McEwen Mining's press release, as of June 27, 2024, reveals several key financial and operational updates.

Financial Performance: McEwen Mining's cash, investments, and precious metals increased to an estimated $36 million in Q2 2024, compared to $23 million in Q4 2023 and $1.8 million in Q4 2022. The company raised funds through equity financings, with the most recent being $22 million FT at $14.36/share in June 2024, signifying increasing liquidity. * Debt reduction was achieved, with a 39% decrease in debt reported in 2023, and principal repayments are set to commence in 2025.

Operational Highlights: Production for the first half of 2024 stood at an estimated 67.4K GEOs, indicating progress toward meeting the 2024 production guidance of 130,000 * 145,000 GEOs. The 2024 production guidance includes specific estimates for individual mines, with Fox, Gold Bar, and San Jose (49%) expected to produce 40 * 42K GEOs, 40 * 43K GEOs, and 50 * 60K GEOs, respectively. * McEwen Mining anticipates potential opportunities for 200K GEOs annual production in 2025 and beyond, driven by existing operations and potential projects.

Copper Focus: McEwen Copper, in which McEwen Mining holds a 47.7% interest, has showcased robust economics with upside potential, as evidenced by a Net Present Value (NPV) of $2,921 million at 8% and an Internal Rate of Return (IRR) of 22.0% based on the updated base case. The Los Azules project, a significant component of McEwen Copper, has been positioned as a world-class resource in an emerging copper belt, with a 27-year mine life and potential for resource upside coming from exploration and technological advancements.

Political and Regulatory Developments: * McEwen Mining highlighted significant positive changes in Argentina, positioning it as an emerging Tier 1 mining jurisdiction. President Milei's government has promoted changes in financial and fiscal policies, focused on private investment and freedom, potentially offering tax incentives and deregulation to encourage investments in key sectors, including mining.

Today the company's shares have moved 6.8% to a price of $9.72. Check out the company's full 8-K submission here.

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