- McEwen Mining is down more than 40% from its year-to-date highs, and currently trades at a fully diluted market cap of ~$555 million.
- While this would appear cheap for a ~160,000-ounce producer, the company's costs continue to be well above the industry average, and none of the company's operations are overly impressive.
- With a growth plan expected at Fox by year-end, it is certainly possible that the stock could find a strong bid, especially if we see a recovery in metals prices.
- However, with more diversified producers with much better track records of generating shareholder value trading at attractive valuations, I see no reason to go bottom-fishing in McEwen Mining.
For further details see:
McEwen Mining: Production Per Share Continues To Fall