McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is
pleased to report production for Q3 2023 was 38,600 gold
equivalent ounces (“GEOs”) and 104,800 GEOs for the nine months
ended September 30th, 2023. Our consolidated production guidance
for 2023 is maintained, despite the Gold Bar Mine’s production
forecast being 13% below its guidance range. Our forecast for the
full year 2023 (see
Table 1) reflects actual
productions to September 30th and management's current estimates
for Q4 2023.
Table 1: Consolidated Production
Summary
|
Q3 |
9M |
Full Year 2023 Forecast |
2023Guidance |
2022 |
2023 |
2022 |
2023 |
Consolidated Production |
|
|
|
|
|
Gold (oz) |
26,200 |
31,500 |
74,650 |
86,100 |
124,300(3) |
123,000-139,000 |
Silver (oz) |
853,000 |
580,200 |
1,894,100 |
1,531,200 |
2,300,000 |
2.3M-2.6M |
GEOs(1) |
35,700 |
38,600 |
97,000 |
104,800 |
152,300 |
150,000-170,000 |
Gold Bar Mine, Nevada |
|
|
|
|
|
GEOs |
7,200 |
9,500 |
18,600 |
23,900 |
36,500 |
42,000-48,000 |
Fox Complex, Canada |
|
|
|
|
|
GEOs |
9,000 |
11,200 |
27,900 |
34,200 |
45,500 |
42,000-48,000 |
San José Mine, Argentina (49%)(2) |
|
|
|
|
|
Gold Production |
9,900 |
10,800 |
27,400 |
28,000 |
40,000 |
39,000-43,000 |
Silver Production |
852,200 |
580,200 |
1,892,400 |
1,531,200 |
2,300,000 |
2.3M-2.6M |
GEOs |
19,300 |
17,900 |
49,700 |
46,700 |
68,000 |
66,000-74,000 |
Notes:(1) 'Gold
Equivalent Ounces' are calculated based on a gold-to-silver price
ratio of 90:1 for Q3 2022, 82:1 for Q1 2023, 82:1 for Q2, 2023, and
81:1 for Q3 2023. 2023 production guidance is calculated based on
an 85:1 gold-to-silver price ratio.(2) The San
José Mine is 49% owned by McEwen Mining Inc. and 51% owned and
operated by Hochschild Mining plc. Production is shown on a 49%
basis.(3) El Gallo Mine (on care and maintenance)
is expected to recover 2,300 gold oz in 2023 from plant and pond
cleanout.Gold Bar Mine, NevadaGood progress has
been made at Gold Bar recovering from a challenging first half of
the year, as demonstrated by steadily increasing production quarter
after quarter. Gold Bar has also maintained an excellent safety
record with 1,313 days without a lost time injury as of September
30th. Crushing and stacking of ore on the heap leach pad reached a
rate of 9,300 tonnes per day (tpd) in September, a major
improvement over the average in the prior eight months of 6,150
tpd. Year-to-date, ore containing 41,600 ounces of gold has been
loaded onto the heap leach pad with an average expected recovery
rate of 68%. Due to the gold inventory on the heap leach pad, we
are confident in a reasonably strong Q4 continuing into the start
of 2024. The 2023 production forecast is 13% below the guidance
established in December 2022, due to a combination of factors
including flooding and extreme weather in the Spring and a slower
leach recovery rate of Gold Bar South ore.
Fox Complex, Timmins
DistrictFox performed well during Q3 and it is on track to
slightly exceed the mid-point of our guidance range. Fox has
achieved 738 days without a lost time injury as of September 30th.
Mining at Froome is on track and the Stock mill continues to
increase average throughput. We are pleased with the good
exploration drilling results seen at our Stock Complex including
the ‘Ramp Portal Zone’, which may represent an early mining horizon
for our upcoming Stock West project (see news release dated October
3rd, 2023).
San José,
ArgentinaSan José, which is operated by our joint venture
partner Hochschild Mining, delivered Q3 production in line with our
expectations for the quarter and guidance for the year. San José
reported one lost time injury in August 2023, the worker has since
recovered and returned to regular duty.
McEwen CopperOn October
11th our McEwen Copper subsidiary announced additional
investments by Stellantis and Nuton of ARS$42 billion and US$10
million, respectively. Since the creation of McEwen Copper,
shareholders have invested $397 million (including investments by
Stellantis in Argentine Pesos at official exchange rates at the
time of each transaction) to acquire shares even though that the
Company has remained private. The recent transactions occurred at
$26.00 per share of McEwen Copper, giving it a market value of
approximately $800 million. McEwen Mining retains 47.7% ownership
of McEwen Copper, with an implied market value of $380 million,
this represents a value accretion for McEwen Mining shareholders of
$98 million or two (2) dollars per share since March 2023.
McEwen Copper is now
well financed for the remainder of 2023 and well into 2024. The
funds raised will be used to advance the feasibility study on the
Los Azules project and for other corporate purposes. McEwen Mining
also received proceeds of $6 million to augment its balance
sheet.
Currently, we have
fourteen drill rigs on site at Los Azules, scaling up to 18 drill
rigs for our drilling campaign targeting more than 45,000 meters.
This program will generate all the remaining data required to
complete the planned feasibility study by Q1 2025.
Technical
InformationThe 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 JoséMinera Santa Cruz S.A., the
owner of the San José Mine, is responsible for and has supplied to
the Company 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.
CAUTION
CONCERNING FORWARD-LOOKING STATEMENTSThis news release
contains certain forward-looking statements and information,
including "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. The
forward-looking statements and information expressed, as at the
date of this news release, McEwen Mining Inc.'s (the "Company")
estimates, forecasts, projections, expectations or beliefs as to
future events and results. Forward-looking statements and
information are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties, risks and contingencies, and there can
be no assurance that such statements and information will prove to
be accurate. Therefore, actual results and future events could
differ materially from those anticipated in such statements and
information. Risks and uncertainties that could cause results or
future events to differ materially from current expectations
expressed or implied by the forward-looking statements and
information include, but are not limited to, fluctuations in the
market price of precious metals, mining industry risks, political,
economic, social and security risks associated with foreign
operations, the ability of the corporation to receive or receive in
a timely manner permits or other approvals required in connection
with operations, risks associated with the construction of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation, the state of the capital
markets, environmental risks and hazards, uncertainty as to
calculation of mineral resources and reserves, and other risks.
Readers should not place undue reliance on forward-looking
statements or information included herein, which speak only as of
the date hereof. The Company undertakes no obligation to reissue or
update forward-looking statements or information as a result of new
information or events after the date hereof except as may be
required by law. See McEwen Mining's Annual Report on Form 10-K for
the fiscal year ended December 31, 2022 and other filings with the
Securities and Exchange Commission, under the caption "Risk
Factors", for additional information on risks, uncertainties and
other factors relating to the forward-looking statements and
information regarding the Company. All forward-looking statements
and information made in this news release are qualified by this
cautionary statement.
The NYSE and TSX have
not reviewed and do not accept responsibility for the adequacy or
accuracy of the contents of this news release, which has been
prepared by management of McEwen Mining Inc.
ABOUT MCEWEN
MINING
McEwen Mining is a
gold and silver producer with operations in Nevada, Canada, Mexico
and Argentina. In addition, it owns approximately 47.7% of McEwen
Copper which owns the large, advanced stage Los Azules copper
project in Argentina. The Company’s goal is to improve the
productivity and life of its assets with the objective of
increasing its share price and providing a yield. Its Chairman and
Chief Owner has personally provided the company with $220 million
and takes an annual salary of $1.
WEB
SITEwww.mcewenmining.com CONTACT
INFORMATION150 King Street West Suite 2800, PO Box
24 Toronto, ON, Canada M5H 1J9 Relationship with
Investors: (866)-441-0690 Toll
free (647)-258-0395 Mihaela
Iancu ext. 320 info@mcewenmining.com |
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