McEwen Mining Posts Mixed Q2 Earnings On Weak Gold Bar Mine Operations

McEwen Mining Inc MUX reported a Q2 2023 adjusted net loss of $(0.31) per share, which narrowed from $(0.04) a year ago, beating the consensus loss of $(0.74).

The losses reflect exploration and advanced project expenditures of $7.1 million, mainly at the Fox Complex operations. 

Revenue from gold and silver sales stood at $34.4 million, missing the consensus of $40.0 million.

Production from the three operating mines came in at 35,625 gold equivalent ounces (GEOs) in Q2, vs. 36,218 GEOs in the prior year. 

The company reported a gross loss of $(3.5) million vs. a gross profit of $4.2 million last year due to lower grades and longer recovery times at its Gold Bar mine operations.

Operating cash flow stood at $(25.2) million vs $(28.7) million a year ago.

Cash and equivalents stood at $84.8 million, and total debt was $40.0 million at the end of Q2 2023.

The company continues to expect production of 150,000-170,000 GEOs for 2023.

"At McEwen Mining, quarterly production from our mines delivered a marked improvement in terms of ounces produced over Q1. At the Fox Complex its AISC was 8% lower than the comparable period in 2022. Gold Bar continued with high costs per ounce, however we expect to see much better performance in H2 as a result of a lower strip ratio and increased mined ore grades. At San José production got back on track in Q2. We anticipate all our mines will deliver stronger results in H2 and finish the year in line with our production guidance. We are advancing two important development projects, at the Fox Complex in Canada and at the Fenix project in Mexico, both designed to extend the mine lives by 9 years," said Rob McEwen, Chairman and Chief Owner.

Price Action: MUX shares are trading lower by 0.28% at $7.24 on the last check Thursday.