McEwen Mining(US:MUX)2021-11-06 17:33Financial Data and Key Metrics Changes - Q3 2021 revenue from 100% owned operations was $37.1 million, a 36% increase compared to Q3 2020 [9] - Average realized gold sales price in Q3 2021 was $1,793 per gold equivalent ounce, down from $1,925 in Q3 2020 [9] - Cash gross profit for Q3 2021 was $6.4 million, compared to $3.9 million in Q3 2020, with a nine-month total of $16.1 million versus $2.8 million last year, a 575% increase [10][12] - The company reported a net loss of $17.4 million or $0.04 per share for Q3 2021, compared to a net loss of $9.8 million or $0.02 per share in Q3 2020 [12] Business Line Data and Key Metrics Changes - Gold Bar production in Q3 2021 was 12,400 gold equivalent ounces, an 82% increase year-over-year [18] - Fox Complex production for Q3 2021 was 8,300 gold equivalent ounces, a 42% increase compared to Q3 2020 [19] - San José mine produced 10,800 gold ounces and 790,000 silver ounces in Q3 2021, totaling 21,600 gold equivalent ounces, a 36% increase from last year [22] Market Data and Key Metrics Changes - Year-to-date share performance increased by 15.7%, while industry ETFs GDX and GDXJ declined by 11.6% and 19.7%, respectively [6] Company Strategy and Development Direction - The company is focused on a turnaround strategy, aiming to build an exceptional mining model for the 21st century [4] - Significant investments in exploration are expected to extend the life of mines and support future production growth [5] - The company is advancing the Los Azules copper project, which is one of the largest undeveloped copper porphyry deposits [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements and the potential for increased production and lower costs [3][4] - The company is addressing supply chain challenges and has recruited a global procurement lead to mitigate risks [59] - Management noted that COVID-19 is not materially affecting operations or future strategic plans [56] Other Important Information - Total liquid assets as of September 30, 2021, were $72.7 million, compared to $18.8 million for the same period last year [13] - The company spent $10.3 million on exploration and advanced projects during Q3 2021 [12] Q&A Session Summary Question: Guidance for Gold Bar production - Management indicated that the production guidance range reflects uncertainties in transitioning between mining areas and contractor changes [52][55] Question: Impact of COVID-19 on operations - Management confirmed that COVID-19 is not currently affecting operations, with vaccination rates varying by site [56][58] Question: Future cost expectations for Gold Bar - Management expects costs to drop significantly after 2022 as production increases and capital investments moderate [66][68] Question: Exploration budget for next year - Management anticipates a slight decrease in the exploration budget for 2022, around 20% lower than the current year [79] Question: Update on El Gallo and Phoenix expansion - Management is exploring low CapEx alternatives for the El Gallo project and is optimistic about advancing it [81] Question: Long-term growth strategy - Management emphasized the need for a stronger share price to pursue acquisitions and highlighted the potential of McEwen Copper as a significant value driver [84]