McEwen Mining (TSX: MUX; NYSE: MUX) has reported strong second quarter financial and production results, largely building on last year’s results.
The company produced 36,959 oz. gold in the second quarter of 2018, up from 22,191 oz. gold a year ago. While the company’s second quarter silver production fell slightly to 772,432 oz. silver from 779,487 oz. silver last year, it still reported a 45% increase in gold equivalent oz. year-over-year to 47,258 ounces.
The company’s all-in sustaining costs (AISC) also decreased compared to the same quarter last year by 2% to US$816 per gold equivalent oz. at the El Gallo mine in Mexico and US$1,065 per oz. at the San Jose mine in Argentina. At the Black Fox Mine, which McEwen acquired in October 2017, the company paid AISCs of US$1,056 per gold equivalent ounce.
The company has US$19.2 million in working capital, down from US$47 million a year ago, but no debt. It reported a net loss of US$5.4 million in the second quarter of 2018, US$3.7 million more than a year ago.
McEwen is continuing construction at its Gold Bar mine in central Nevada. The company focused on building the mine’s heap leach pad and installing the crushing and processing facility in 2018’s second quarter. It says all major equipment and bulk materials are purchased or already onsite, and expects to finish construction in late 2018.
It is targeting commercial production at Gold Bar by the first quarter of 2019. McEwen expects to produce a total 197,000 oz. gold at Gold Bar over the mine’s first three years.
Shares of McEwen are currently valued at $2.99 with a 52-week range of $2.33 to $3.46. The company has a $1.01 billion market capitalization.
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