Latest news with #WilliamShaver
Yahoo
09-05-2025
- Business
- Yahoo
McEwen Mining Inc (MUX) Q1 2025 Earnings Call Highlights: Strong Profit Growth Amid Operational ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. McEwen Mining Inc (NYSE:MUX) has increased its liquidity through a cap call convertible note, reducing potential share dilution. The company expects a significant increase in consolidated annual production by 2030, potentially reaching 225,000 to 255,000 ounces, an over 80% increase from current levels. Goldbar produced 10% more gold than budgeted at a cash cost 24% below the low end of annual guidance. The company reported a 68% increase in gross profit and a 38% increase in adjusted EBITDA compared to Q1 2024. Exploration activities at the Fox Complex and Gold Bar are yielding positive results, with promising growth in resources at Gray Fox. The Fox Complex experienced operational challenges with lower than budgeted production and higher costs per ounce. Goldbar's all-in sustaining cost per ounce was approximately $2,200, significantly higher due to accelerated stripping costs. McEwen Copper's treasury is below $10 million, indicating a need for additional financing to complete the feasibility study. The company's total debt increased to $130 million from $40 million, raising concerns about financial leverage. The Argentine peso's strength negatively impacts reported US dollar cash costs at the San Jose mine. Warning! GuruFocus has detected 3 Warning Signs with MUX. Q: How much cash or cash plus investments is held within the copper subsidiary? A: Currently, the treasury for McEwen Copper is below $10 million. We expect to announce another financing as we move towards the publication of the feasibility study. (Answered by Unidentified_4) Q: Is the $10 million enough to complete the feasibility study by July? A: We will likely need additional funds to reach July. We just finished a geotechnical program, and costs have come down significantly, but ideally, we'd like to complete another round of financing before the feasibility study. (Answered by Unidentified_4) Q: Regarding San Jose, is there any information on regular quarterly dividends from them? A: We are in regular dialogue with Has. There is a focus on extending mine life at San Jose, balancing reinvestment, exploration, and shareholder returns. We expect further dividends this year at current commodity price levels. (Answered by Unidentified_4) Q: What is the status of the Fox complex development, and is there any production expected this year? A: We anticipate first production from the underground portion of the stock mine in the last quarter of this year. The permit allows us to start drilling and blasting of the ramp, and we expect the ramp to be completed by late Q3 or early Q4. (Answered by William Shaver, COO) Q: What is the timeframe and cost to put the Gibson rent back into production at Gray Fox? A: We are starting a study on capital and operating costs, and the best access method. The plan is to bring ore back to the stock mill, and we see robust long-term potential. Permitting could take 18 months to 2 years, optimistically. (Answered by William Shaver, COO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
19-03-2025
- Business
- Yahoo
McEwen Mining Inc (MUX) Q4 2024 Earnings Call Highlights: Strategic Investments and Challenges ...
Gold Equivalent Production: 135,884 ounces, 12% lower than 2023. Selling Price Increase: 24% higher than the previous year. Adjusted EBITDA: $29.2 million or $0.57 per share, up from $7.7 million or $0.16 per share in 2023. Net Loss: $43.7 million, primarily due to expenditures at Los Azules. Exploration Expenditure: $16.5 million, totaling $19.8 million. Depreciation: $10 million. Debt Increase: From $40 million to $130 million via capped call convertible debenture. Cash Position: Approximately $62 million. Fox Complex Exploration: Increased indicated and inferred resources to over 2 million ounces. Los Azules Valuation: Implied value of $984 million, with a 46% interest equating to $457 million. San Jose Mine Investment: 49% interest, expecting to pay a dividend soon. Warning! GuruFocus has detected 4 Warning Signs with MUX. Release Date: March 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. McEwen Mining Inc (NYSE:MUX) reported a significant increase in adjusted EBITDA, which was 3.8 times higher than the previous year, reaching $29.2 million. The company achieved a 24% higher selling price for its production, despite a 12% decrease in consolidated production. Exploration efforts at the Fox Complex have increased indicated and inferred resources to over 2 million ounces, allowing for future production expansion. The Los Azules project has seen a substantial increase in implied value, now estimated at $984 million, with plans for an IPO contingent on market conditions. The San Jose mine, in which McEwen Mining Inc (NYSE:MUX) holds a 49% interest, is expected to pay a dividend soon, benefiting from higher metal prices. McEwen Mining Inc (NYSE:MUX) posted a net loss of $43.7 million, primarily due to significant investments in the Los Azules project. The company's debt increased from $40 million to $130 million through a capped call convertible debenture. There is ongoing uncertainty regarding the approval of the Los Azules project under Argentina's RIGI scheme, with no clear timeline for a decision. The company faces a legal claim from an indigenous group concerning property interests in Timmins, which it believes is without merit. Permitting timelines for the Timberline properties and other projects remain unpredictable, potentially delaying production increases. Q: Can you provide more details on the mine life extension opportunities at Gold Bar and the permitting process for the Timberline properties? A: William Shaver, Chief Operating Officer, explained that exploration work is ongoing at Timberline, with $4 million allocated for exploration this year. The permitting process involves two parts: patented claims, which have a shorter permitting timeframe, and BLM land, which could take three to five years. Permitting work will start this year, with applications expected in the next quarter. Q: How should we think about the royalty portfolio moving forward? Are there plans to expand or monetize it? A: Robert McEwen, Chairman and CEO, confirmed that both expansion and monetization are being considered for the royalty portfolio. Q: With gold prices over $3,000 an ounce, have you reconsidered near-term mine planning? A: William Shaver, COO, stated that they are focusing on increasing production at Gold Bar and Timmins to capitalize on high gold prices. A 10% production increase in both locations could generate about $10 million in cash. Q: What is the timeline for Los Azules' approval under RIGI, and where does it stand in the queue? A: Robert McEwen, CEO, mentioned that they expect to know about Los Azules' approval in two to four months. Michael Meding, VP of McEwen Copper, added that they are the second metal mining project to apply for RIGI, and the process is ongoing with responses to information requests from regulators. Q: If McEwen Mining wasn't investing in Los Azules, would the quarterly earnings have been positive? A: Robert McEwen, CEO, confirmed that without the $47 million charge from Los Azules, the company would have reported a slight profit instead of a $43 million loss. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
