TORONTO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) today reported its second quarter (Q2) and half year (H1) results for the period ended June 30th, 2024.

“I’m delighted that this quarter was the most profitable since 2016 as measured by Adjusted EBITDA(1) for our mining operations and Q3 is off to a good start. Production costs increased 8% quarter-over-quarter, but revenue grew by 38%. Fox and Gold Bar are capitalizing on the higher gold prices to increase operating cash flow, Gold Bar in particular with its AISC at only $1,400 per GEO in H1. It’s important to note that our net loss continues to be influenced by McEwen Copper and its expenses at Los Azules, which are non-cash as it relates to MUX,” commented Rob McEwen, Chairman and Chief Owner. “McEwen Copper continues to grow in value - based on the most recent injection of capital at $30 per share the implied market value is now $947 million, with MUX owning 48.3% or $457 million. That is 106% of MUX’s current fully diluted market capitalization. In addition, MUX shareowners also get exposure to a 1.25% NSR royalty on Los Azules, our cashflow generating gold-silver mines, and development projects.”

Stronger Financial Results

Our gross profit in Q2 was $10.8 million and our Adjusted EBITDA(1) was $7.2 million, compared to a gross loss of $3.5 million and Adjusted EBITDA of negative $5.8 million in Q2 2023. Higher revenues, driven by a 21% increase in realized gold prices and a 13% increase in GEOs sold drove improvements in gross profit.

After equity accounting for $35.2 million in net expenses incurred by McEwen Copper’s Los Azules project ($16.8 million impact on MUX) we reported a net loss in Q2 of $13.0 million, or $0.26 per share, compared to a net loss of $21.6 million, or $0.46 per share in Q2 2023.

In Q2, we invested $5.0 million in exploration activities at the Grey Fox property and Gold Bar mine. We invested $6.7 million in capital expenditures largely on the Stock Project where earthwork at the portal entrance is expected to be completed in the second half of 2024. An underground ramp will be developed to access the Main, East and West zones of the Stock deposit.

Improved Liquidity and Capital Resources

We reported consolidated cash and cash equivalents of $40.7 million, debt of $40.0 million, and consolidated working capital of $29.1 million as at June 30, 2024. (December 31, 2023 – $23.0 million, $40.0 million and $22.7 million, respectively).

Steady Gold & Silver Production

Production from our three operating mines was 35,265 gold equivalent ounces (GEOs)(2) in Q2, compared to 35,658 GEOs in Q2 2023. Production guidance remains 130,000-145,000 GEOs for 2024.

Through the efforts of our operating teams, we have been steadily improving our production and cash flow while improving our prospects for the future with aggressive exploration drilling.

Attracting and retaining our employees is a constant priority for us as it is for many of our peers, contractors and suppliers.

Individual Mine Performance (See Table 1):

1. Gold Bar produced 12,297 GEOs during Q2, an increase of 56% compared to Q2 2023. Increased mine production from our higher-grade Pick pit facilitated higher production. During H1 2024, we produced 24,013 GEOs at Gold Bar and we are on track to potentially exceed annual production guidance of 40,000 to 43,000 GEOs.

Cash costs and AISC per GEO sold in Q2 were $1,532 and $1,634, respectively, compared to $2,113 and $2,585 in Q2 2023, respectively. The reduction in cash costs and AISC per GEO sold was driven by higher GEOs sold, as noted above.

Gold Bar Mine
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