McEwen Mining Q3 2024 Earnings Report
Key Takeaways
McEwen Mining Inc. released its Q3 2024 financial and operational results, showing significant improvements in revenue and operating profitability. These improvements were driven by higher gold prices and strong production. McEwen Copper raised $56 million to fund the ongoing development of its Los Azules copper project in Argentina.
Gold Bar production increased 43% to 13,640 oz Au in Q3, compared to Q3 2023.
Fox gold production was 7,855 oz Au, a 30% decrease compared to Q3 2023 due to a stope failure in Q2 2024.
San José’s attributable production was 13,684 GEOs, a 23% decrease from Q3 2023, impacted by lower gold and silver grades mined.
McEwen Copper recently raised $56 million at $30 per share to fund the ongoing development of its Los Azules copper project in Argentina.
McEwen Mining
McEwen Mining
Forward Guidance
While stope availability is expected to improve during Q4 2024, resulting in higher gold production compared to prior quarters in 2024, annual production is projected to be 15-20% below our guidance of 40,000 to 42,000 oz Au. While we expect production to improve in the fourth quarter, including by adding new production from our Black Fox mine, we expect unit costs to be 15 to 20% higher than guidance.
Positive Outlook
- Gold Bar mine remains on track to meet annual costs per ounce guidance and production of 40,000 to 43,000 oz Au.
- Production is expected to increase during Q4 2024 at San Jose.
- Stope availability is expected to improve during Q4 2024 at Fox Complex, resulting in higher gold production compared to prior quarters in 2024.
- Expect production to improve in the fourth quarter, including by adding new production from our Black Fox mine.
- San José mine remains on track to meet annual production guidance, with our attributable portion at 50,000 to 60,000 GEOs.
Challenges Ahead
- Fox annual production is projected to be 15-20% below our guidance of 40,000 to 42,000 oz Au.
- Fox unit costs are expected to be 15 to 20% higher than guidance.
- San Jose unit costs are expected to remain above guidance due to macroeconomic factors.
- San Jose production was impacted by lower gold and silver grades mined.
- Due to a stope failure in Q2 2024 at Fox, there was a shortfall in development and limited stope availability during the quarter.