- This has been the company’s most profitable quarter in the last eight years, according to CEO Rob McEwen
- Revenue was up 38%, driven by an increase in gold prices and the amount of gold equivalent ounces sold
- Infill drilling at Los Azules copper project has been completed, confirming the geological model and the high-grade zone
- New Argentinian legislation designed to facilitate foreign investment is expected to significantly improve the economics of the Los Azules project and lower risks for investors
McEwen Mining (NYSE: MUX) (TSX: MUX), an asset rich diversified gold and silver producer in the Americas with a large exposure to copper through its subsidiary McEwen Copper, released its second-quarter and half-year 2024 financial results for the period ended June 30, 2024, along with key updates regarding the current mining situation in Argentina and infill drilling results at its Los Azules project.
According to CEO and Chairman Rob McEwen during a conference call discussing the financial results, this has been the company’s most profitable quarter since 2016, with revenue growing by 38% and overall production costs expanding by 8% quarter-over-quarter. Higher revenues, driven by a 21% increase in realized gold prices and a 13% increase in gold equivalent ounces (“GEOs”) sold also drove improvements in gross profit, which reached $10.8 million in Q2, while adjusted EPITDA was $7.2 million (https://nnw.fm/4pDN8).
Production from the company’s three operating mines (Gold Bar in Nevada, Fox in Ontario, and San José in Argentina) was 35,265 GEOs in Q2, with plans remaining in effect to produce 130,000-145,000 GEOs overall for 2024.
“McEwen Copper continues to grow in value – based on the most recent injection of capital at $30 per share the implied market value is now $947 million, with MUX owning 48.3% or $457 million. That is 106% of MUX’s current fully diluted market capitalization,” McEwen added.
In addition to its silver and gold projects, McEwen Mining also owns a 48.3% interest in McEwen Copper Inc., which holds a 100% interest in the Los Azules copper project in San Juan, Argentina, and the Elder Creek exploration project in Nevada, U.S. During the conference call the company shared important updates regarding the mining situation in Argentina and the latest infill drilling results at Los Azules.
More specifically, Argentine President Javier Milei introduced new legislation encouraging large domestic and foreign investments in the country, offering significant tax and foreign exchange incentives to companies investing in key sectors of the economy, including mining. “We are excited about these changes as they open the door for many infrastructure investments in Argentina and significantly improve the economics of the Los Azules project and lower risks for investors,” the company said (https://nnw.fm/O8F3u).
Additionally, the world’s largest mining company, BHP, and Lundin Mining recently completed a $4.4 billion joint acquisition of two copper deposits located in the same province in Argentina as McEwen Mining’s Los Azules. “We believe that this transaction is a convincing demonstration of San Juan and Argentina´s attractiveness for large‑scale mining projects and evidence of Argentina moving towards becoming a Tier 1 mining jurisdiction.”
McEwen also reported that infill drilling at Los Azules has been completed and the results are validating the geological model and the high-grade zone at the project. “During the 2023–2024 drilling season, over 70,000 meters were completed, that have strengthened the interpretation of the geological model in addition to extending the supergene enrichment zone mineralization, both at the edges and to depth. Resource drilling for the Los Azules Feasibility Study is now complete, and the study remains on track for delivery in early 2025,” the company said.
A replay of the conference call can be accessed at https://nnw.fm/aVZvp.
For more information, visit the company’s website at www.McEwenMining.com.
NOTE TO INVESTORS: The latest news and updates relating to MUX are available in the company’s newsroom at https://nnw.fm/MUX
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