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]

TORONTO, Aug. 06, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) invites you to join our conference call following the release of our Q2 2024 financial results on Thursday, August 8th, 2024, at 11:00 AM EDT, where management will discuss our financial results and project developments and follow with a question-and-answer session. Participants can ask questions directly over the phone during the webcast. Thursday August 8th 2024 at 11:00 AM EDT Toll Free Dial-In North America: (888) 210-3 ...

Core Points - McEwen Mining Inc. held its Annual Meeting of Shareholders on June 27, 2024, where key approvals included the 2024 Equity and Incentive Plan and the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024 [1][5]. Voting Overview - A total of 26,845,690 shares were voted, representing approximately 54.33% of the 49,408,775 outstanding shares entitled to vote [5]. - The following directors were elected: Robert McEwen, Allen Ambrose, Ian Ball, Richard Brissenden, Nicolas Darveau-Garneau, Robin Dunbar, Michelle Makori, Merri Sanchez, and William Shaver [5]. - The 2024 Equity and Incentive Plan received 26,708,421 votes in favor, with 68,949 against and 68,320 abstentions [6]. Detailed Voting Results - Election results for the directors nominated at the meeting included: - Robert R. McEwen: 18,377,798 votes for, 454,772 withheld [6] - Allen V. Ambrose: 16,985,036 votes for, 1,847,534 withheld [6] - Ian Ball: 18,511,070 votes for, 321,500 withheld [6] - Richard W. Brissenden: 17,683,264 votes for, 1,149,306 withheld [6] - Nicolas Darveau-Garneau: 18,471,765 votes for, 360,805 withheld [6] - Robin E. Dunbar: 18,483,487 votes for, 349,083 withheld [6] - Michelle Makori: 18,510,060 votes for, 322,510 withheld [6] - Merri Sanchez: 18,447,994 votes for, 384,576 withheld [6] - William M. Shaver: 18,490,648 votes for, 341,922 withheld [6]. Company Overview - McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico, and Argentina [9]. - The company holds a 47.7% interest in McEwen Copper, which owns the advanced-stage Los Azules copper project in Argentina [9]. - The company's goal is to improve the productivity and life of its assets to increase share price and provide investor yield [9]. - Rob McEwen, the Chairman and Chief Owner, has personally provided the company with $220 million and takes an annual salary of $1 [9].

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TORONTO, June 24, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (TSX:MUX) announces a nonbrokered private placement financing of up to 2,333,333 common shares of its wholly-owned subsidiary McEwen Copper Inc. at a subscription price of US$30.00 per common share, for gross proceeds of up to US$70 million (the "Offering"). McEwen Copper currently has 30,937,615 common shares outstanding (basic and diluted). This Offering will be used to advance work on a bankable feasibility study for the Los Azules copper proj ...

Lead orders to purchase 27% of the total Offering have been committed by McEwen Mining and Rob McEwen. McEwen Mining will purchase up to 466,667 common shares of McEwen Copper for US$14 million and Rob McEwen will purchase up to 166,666 common shares for US$5 million. Final investment amounts are subject to adjustment according to anti-dilution and pre-emptive rights on the part of other existing shareholders of McEwen Copper. Subscription for the remaining 1,700,000 common shares is available to qualified ...

Core Insights - McEwen Mining Inc. is advancing the Fox Complex, with production planned to start in the second half of 2025, focusing on the Stock Property which connects three gold zones: West, Main, and East [11][12] - Recent exploration has led to a 29% increase in estimated gold resources in the East Zone, contributing to a total of 1,905,000 ounces of Measured and Indicated resources at an average grade of 4.20 g/t Au [11][16] - The Stock Property is expected to provide increased gold production at a lower cost per ounce compared to the Froome Mine due to lower transportation costs, higher mill throughput, and fewer royalties [13] Group 1: Production and Development - Pre-construction activities have begun at the Stock portal, with underground development expected to start in Q3 [1][2] - Mining will commence in the East Zone, which has recently increased resources, allowing for early production and cash flow [2][9] - The Stock Ramp will facilitate access to multiple mineralization sources from the East, Main, and West Zones [2][11] Group 2: Resource Estimates - The updated resource estimate for the East Zone as of May 20, 2024, includes 75,000 gold ounces Indicated and 50,000 gold ounces Inferred [8][25] - The overall Stock resource now contains 281,000 gold ounces of Indicated mineralization at a grade of 3.12 g/t Au and 181,000 gold ounces of Inferred mineralization at a grade of 2.87 g/t Au, marking a nearly 7% increase from the previous estimate [25][26] - The Fox Complex's total resources include 1,905,000 ounces of Measured and Indicated gold and 549,000 ounces of Inferred gold [11][16] Group 3: Drilling Campaigns - The 2024 infill drilling campaign at the East Zone yielded positive results, demonstrating strong continuity between drillhole intercepts [6][7] - Significant drill intercepts include 6.1 g/t Au over 7.8 m and 5.9 g/t Au over 13.5 m, which are well above the East Zone's current average Indicated resource grade [26][27] - The drilling results have been incorporated into the updated resource estimates, enhancing the overall understanding of the mineralization at Stock [8][27]