- McEwen Mining released its updated Gold Bar reserve estimate last week, reporting a sharp decline in total ounces from the previous Q4 2018 update.
- Currently, there are just 302,000 estimated recoverable ounces at Gold Bar, translating to less than a 5-year mine life based on the previous production profile of 62,800 ounces per annum.
- While a 5+ year mine life at $1,800/oz is still a profitable operation, it's worth noting that Gold Bar has consistently underperformed, and has been a terrible investment to date.
- Given continued share dilution, a disappointing reserve update, and industry-lagging margins, I continue to see much better opportunities elsewhere in the sector.
For further details see:
McEwen Mining: An Underwhelming Reserve Update