MUX:CC - McEwen Mining: An Inferior Way To Buy The Dip

• McEwen Mining released its Q1 results last week, reporting an 18% decline in quarterly gold-equivalent ounce production on a year-over-year basis.
• This was related to a weak start to the year at Gold Bar and the San Jose Mine operated by Hochschild, with Fox not picking up much of the slack.
• Given the sharp decline in gold sales, costs soared in the period, and with costs above $2,000/oz, McEwen Mining reported another quarter of net losses.
• At a sub $250 million market cap, McEwen Mining is cheap, but I think there are dozens of better ways to play the sector given its portfolio of marginal operating assets.

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