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Dec 31, 2022
McEwen Mining Q4 2022 Earnings Report
McEwen Mining reported Q4 and full year results, highlighting increased gold production at Fox Complex, transition to Gold Bar South pit, and strategic investments received by McEwen Copper.
Key Takeaways
McEwen Mining's Q4 2022 results reflect a transition year with increased gold production at the Fox operation and advancements at the McEwen Copper subsidiary, including investments from Nuton and Stellantis. Production at Gold Bar was impacted by carbonaceous ore, while San José mine production decreased due to COVID-19 and mill availability issues.
Fox operation showed a 22% increase in gold production and lower cash costs.
Production transitioned to the Gold Bar South pit in Nevada.
McEwen Copper received strategic investments from Nuton and Stellantis.
A second access road to Los Azules was completed, improving site access.
McEwen Mining
McEwen Mining
Forward Guidance
McEwen Mining is focused on increasing production and reducing costs in 2023, with advancements at the Fox Complex and Gold Bar, and development of the Los Azules copper project.
Positive Outlook
- Transition to Gold Bar South pit with no carbonaceous ore.
- Lower waste stripping ratio and higher average gold grade at the Gold Bar South pit.
- Improved production efficiencies expected in 2023 due to change of mining contractor at Gold Bar.
- Advancement of the Los Azules copper project with ongoing drilling and engineering work.
- Completion of a new low altitude access road to Los Azules, providing almost year-round access.
Challenges Ahead
- Production at Gold Bar was adversely impacted by carbonaceous ore.
- Delay in mining due to transition to a new mining contractor at Gold Bar.
- San José mine production decreased due to COVID-19 and mill availability issues in Q1 2022.
- Dividend received from San José mine was lower due to decreased gold and silver prices.
- Still high but substantially better than in Q4 2021, decreasing by 23% and 17% respectively compared to Q4 2021.