CA - McEwen Mining: Gold Breakout Boosts Margins But No Longer Cheap

2024-04-16 05:50:29 ET

Summary

• McEwen Mining reported better results for its managed operations in 2023, driven by a much stronger performance at its Gold Bar Mine and a lower-cost year at its Fox Complex.
• Unfortunately, the company slightly missed its annual guidance because of poor performance from its non-managed San Jose operation in Argentina, which was out of its control.
• In this update, we'll dig into the Q4/FY2023 results, recent developments, and where MUX stock's updated buy zone lies.

The Q4 earnings season for the precious metals sector has finally ended, and one of the first companies to report its Q4/FY2023 results was McEwen Mining ( MUX ). The company had a better year overall at its managed operations, which combined for ~88,000 gold-equivalent ounces [GEOs], with the bulk of this coming in Q4 with the completion and commissioning of its heap leach pad expansion at Gold Bar. Meanwhile, it continued to make progress at its massive Los Azules copper project in Argentina, repaid a significant amount of debt to reduce its finance expense, and closed additional financings with Nuton ( RIO ) and Stellantis at an $800 million valuation for McEwen Copper where it holds a major interest in Q4. In this update, we'll dig into the Q4/FY2023 results, recent developments, and where the stock's updated buy zone lies:

For further details see: