- McEwen Mining continues to be one of the worst-performing gold stocks this year, down over 15% year-to-date vs. a 20% return for the price of gold.
- The company recently announced that its 49%-owned San Jose Mine is offline temporarily due to COVID-19 infections in Argentina, a further headwind to the company's Q4 output.
- Some investors might argue that the stock is cheap here as it's down over 70% from its 2016 highs, but I would argue that it's actually expensive relative to peers.
- I continue to see McEwen Mining as an Avoid due to overvaluation relative to peers and industry-lagging margins, and I would view any rallies above $1.50 as selling opportunities.
For further details see:
McEwen Mining: A Look At The Valuation After The Drop