- McEwen Mining released its Q1 results last week, reporting quarterly production of ~30,600 gold-equivalent ounces at all-in sustaining costs above $1,550/oz at Black Fox & Gold Bar.
- These costs were some of the highest in the industry for the quarter, leaving little room for margins based on an average realized gold price of $1,763/oz in Q1.
- Unlike most miners that are reporting positive annual earnings per share and significant cash flow generation, McEwen is expected to post another year of net losses per share in FY2021.
- Based on McEwen Mining's history of over-promising & under-delivering, and industry-lagging margins, I would view any rallies above $1.55 as selling opportunities.
For further details see:
McEwen Mining: An Inferior Way To Play The Precious Metals Space