Core Viewpoint - McEwen Copper Inc. has successfully closed an additional $35 million investment from Nuton LLC, a Rio Tinto Venture, as part of a larger financing effort to support its Los Azules copper project [1][2]. Group 1: Investment Details - The total gross proceeds from the private placement financing have reached $56 million after the second tranche, which included Nuton's purchase of 1,166,666 common shares for $35 million and additional investments from other investors [1][2]. - The initial tranche of the offering raised $19 million, led by McEwen Mining's $14 million investment and Rob McEwen's $5 million investment [1]. Group 2: Ownership Structure - Following the recent share issuances, Nuton now holds 17.2% of McEwen Copper on a fully diluted basis, with McEwen Mining owning 46.4%, Stellantis 18.3%, Rob McEwen 12.7%, and other shareholders making up the remainder [2]. Group 3: Project Development - Proceeds from the offering will be allocated to advancing the feasibility study for the Los Azules copper project, which is expected to be published in the first half of 2025 [2]. - The Los Azules project is recognized as one of the largest undeveloped copper deposits globally, with a PEA estimating a $2.7 billion after-tax NPV at a copper price of $3.75 per pound [5].

Shares of McEwen (MUX) have gained 15.2% over the past four weeks to close the last trading session at $9.68, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $13.25 indicates a potential upside of 36.9%. The mean estimate comprises three short-term price targets with a standard deviation of $1.56. While the lowest estimate of $12 indicates a 24% increase from the current price l ...

Group 1: Agreement and Renewable Energy Initiatives - McEwen Mining's subsidiary, McEwen Copper, has signed an agreement with YPF Luz to power the Los Azules copper mine with 100% renewable energy, aligning with the company's goal of becoming fully renewable [1][5] - The Memorandum of Understanding (MOU) allows YPF Luz to negotiate the exclusive energy supply for the Los Azules project, involving renewable energy via a high-voltage transmission line that YPF Luz will create and finance [2][4] - The project aims to be carbon-neutral by 2038, with a focus on lower water consumption and carbon emissions compared to conventional copper mining practices [5] Group 2: Financial Performance - In Q2 2024, McEwen Mining reported a 38.2% year-over-year increase in revenues, reaching $47 million, surpassing the Zacks Consensus Estimate of $44 million [6] - The company experienced a loss per share of 26 cents, an improvement from a loss of 46 cents in Q2 2023, while the consensus estimate was a loss of 22 cents [6] Group 3: Stock Performance - McEwen Mining's shares have increased by 9.7% over the past year, contrasting with a 0.5% decline in the industry [7]

TORONTO, Aug. 26, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to announce that its 48%-owned McEwen Copper Inc. has secured an agreement with YPF Luz to power its large Los Azules copper project with 100% renewable energy. This exclusive agreement covers the supply of renewable energy through a high-voltage transmission line, with YPF Luz responsible for its development and financing. YPF Luz and McEwen Copper have signed a Memorandum of Understanding (MOU) that allows the ...

TORONTO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) and McEwen Copper Inc. are pleased to announce their participation in Fastmarkets' "Argentina: An emerging powerhouse for copper and lithium" webinar and in three upcoming industry conferences. In the Fastmarkets webinar (available here), McEwen Mining's CEO and Chief Owner Rob McEwen participated in a panel discussion exploring Argentina's vast copper and lithium reserves and how these resources are positioning the country ...

McEwen Mining Inc. (MUX) announced that it completed the previously mentioned deal to acquire all issued and outstanding common shares of Timberline Resources Corporation. This move will boost McEwen Mining's existing portfolio of development and exploration projects in Nevada. On Apr 16, 2024, MUX announced that it signed a definitive agreement and a plan of merger with Timberline. The deal was approved by Timberline shareholders on Aug 16, 2024. According to the deal, former Timberline shareholders will r ...

TORONTO, Aug. 19, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) today reported the completion of the previously announced acquisition of all the issued and outstanding common shares of Timberline Resources Corporation (TSXV:TBR)(OTCQB:TLRS) ("Timberline") by way of a merger between Timberline and a wholly-owned subsidiary of McEwen Mining (the "Transaction"). Timberline shareholders overwhelmingly approved the merger with McEwen Mining at Timberline's special meeting held on August 16th ...

Financial Data and Key Metrics Changes - The company recorded a gross profit of $10.8 million and adjusted EBITDA of $7.2 million, marking a significant improvement compared to losses in the second quarter of the previous year [2] - Cash increased by 77% to $40.7 million, and working capital rose by 28% to $29.1 million, while debt remained unchanged at $40 million [2] - The implied value of McEwen Copper has risen to $947 million, with McEwen Mining's 48.3% interest valued at $457 million, equating to $8.45 per fully diluted share [2][3] Business Line Data and Key Metrics Changes - The Gold Bar operation showed strong performance, with production slightly above targets, contributing to lower costs [7] - The company is conducting significant drilling at Gold Bar, with $5 million spent so far this year, which is expected to help maintain cost predictability [7] Market Data and Key Metrics Changes - The investment outlook for Argentina has improved significantly, attributed to recent government changes that favor foreign direct investment [3][4] - The recent transaction by BHP in Argentina's copper sector has set new valuation metrics for large copper deposits, positively impacting the perceived value of Los Azules [4][16][17] Company Strategy and Development Direction - The company is focused on leveraging the improved investment climate in Argentina to enhance the value of its assets, particularly Los Azules [3][4] - Management is optimistic about the potential for increased production and cash flow from ongoing exploration and development projects [12][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted the positive changes in Argentina's regulatory environment, including tax reductions and improved investment conditions, which are expected to benefit future projects [11][33] - The company anticipates a feasibility study for Los Azules to be released early next year, which should further clarify its value [24] Other Important Information - The company owns a portfolio of six royalties, with the largest being a 1.25% NSR on Los Azules, and three cash-flowing gold and silver mines [3] - The RIGI law in Argentina is expected to provide significant tax benefits and stability for mining projects, enhancing the attractiveness of investments in the region [32][33] Q&A Session Summary Question: Ground conditions at Fox mine - Management confirmed that issues were localized to a specific area and have been stabilized [5][6] Question: Cost expectations at Gold Bar - Management indicated that costs are expected to remain predictable based on current production levels and ongoing drilling efforts [7] Question: Long-term tax outlook in Argentina - Management discussed the expected reduction in corporate tax rates and other benefits from the RIGI law, which will enhance project attractiveness [10][11] Question: Exploration budget for Los Azules - Management stated that significant drilling has already been completed, and future expenditures will be lower than previous campaigns [13] Question: Dividend updates from Hot Shield - Management confirmed a small dividend received and indicated potential for a more substantial dividend in the future based on cash generation [27] Question: Updates on permitting in Mexico - Management expressed optimism about receiving permits soon, while also exploring ways to reduce capital costs [29] Question: Updates on RIGI benefits - Management provided details on the RIGI law's benefits, including tax reductions and accelerated VAT recovery [32][33] Question: Stock price reflection of McEwen Copper - Management noted that the separation of McEwen Copper was intended to enhance visibility and that recent transactions in the region should help reflect its value [24][26]

Financial Performance - McEwen reported a quarterly loss of $0.26 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.22, but an improvement from a loss of $0.46 per share a year ago [1] - The company posted revenues of $47.48 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 8.15% and up from $34.4 million year-over-year [2] - Over the last four quarters, McEwen has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - McEwen shares have increased approximately 14.2% since the beginning of the year, outperforming the S&P 500's gain of 9.9% [3] - The current Zacks Rank for McEwen is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $47.1 million, while for the current fiscal year, the estimate is -$0.70 on revenues of $220.45 million [7] - The estimate revisions trend for McEwen is mixed, and future earnings expectations will depend on management's commentary during the earnings call [4][5] Industry Context - The Mining - Miscellaneous industry, to which McEwen belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, which may impact stock performance [8] - Another company in the same industry, HudBay Minerals, is expected to report quarterly earnings of $0.06 per share, reflecting a year-over-year change of +185.7% [9]

Core Insights - McEwen Mining reported its most profitable quarter since 2016, with a significant increase in revenue and adjusted EBITDA, despite rising production costs [2][3][4] - The company continues to face net losses influenced by McEwen Copper's expenses, but the value of its stake in McEwen Copper has increased significantly [2][22] - Production from operating mines showed slight decreases year-over-year, but the company remains on track to meet its annual production guidance [7][14][16] Financial Performance - Q2 gross profit was $10.8 million, with adjusted EBITDA of $7.2 million, a turnaround from a gross loss of $3.5 million and negative adjusted EBITDA of $5.8 million in Q2 2023 [3][4] - Revenue grew by 38% due to a 21% increase in realized gold prices and a 13% increase in gold equivalent ounces (GEOs) sold [3][4] - The net loss for Q2 was $13.0 million, or $0.26 per share, an improvement from a net loss of $21.6 million, or $0.46 per share in Q2 2023 [4] Production and Costs - Total production in Q2 was 35,265 GEOs, slightly down from 35,658 GEOs in Q2 2023, with production guidance for 2024 set at 130,000-145,000 GEOs [7][29] - Cash costs per GEO sold decreased to $1,532 and AISC to $1,634 in Q2, compared to $2,113 and $2,585 in Q2 2023, driven by higher GEOs sold [9][14] - Gold Bar mine produced 12,297 GEOs in Q2, a 56% increase compared to Q2 2023, while Fox mine faced challenges with a 20% decrease in production [8][14] Exploration and Development - The company invested $5.0 million in exploration activities and $6.7 million in capital expenditures during Q2, focusing on the Grey Fox property and Gold Bar mine [5] - McEwen Copper's Los Azules project is progressing towards a feasibility study expected by Q1 2025, with drilling completed [19][22] - The acquisition of Timberline Resources Corporation is aimed at enhancing McEwen Mining's growth potential and consolidating land around existing projects [20][21] Market Position and Future Outlook - McEwen Mining's stake in McEwen Copper is valued at approximately $457 million, representing 106% of the company's current fully diluted market capitalization [22] - Recent legislation in Argentina aims to attract foreign investment in infrastructure projects, which could benefit McEwen Mining's operations [24] - The company is preparing for a transition from the Froome mine to the Stock project, anticipating limited production by mid-2025 [13]