McEwen Mining(US:MUX)2021-08-05 22:43Financial Data and Key Metrics Changes - Revenues from 100% owned operations in Q2 2021 were $40.7 million, a 123% increase compared to Q2 2020 [8] - Average realized sales prices for gold equivalent ounces were $1,830, up from $1,733 in Q2 2020 [9] - Cash gross profit for Q2 2021 was $9.6 million, an increase of $13.6 million from a cash gross loss of $4.9 million in Q2 2020 [10] - The net loss for Q2 2021 was $6 million or negative $0.01 per share, an improvement from a net loss of $19.8 million or negative $0.05 per share in Q2 2020 [11] Business Line Data and Key Metrics Changes - Consolidated gold production in Q2 2021 was 40,700 gold equivalent ounces, over two times higher than the same period last year [17] - Q2 production from 100% owned operations was 22,400 GEOs, an increase of 12,300 GEOs compared to Q2 2020 [18] - Cash costs per GEO for 100% owned operations were $12.86, about 41% lower than last year [18] - At the Gold Bar Mine, Q2 production was 14,100 GEOs, reflecting a 132% increase over last year [19] - The Fox Complex produced 7,100 GEOs in Q2, more than a threefold increase from 2,200 GEOs in Q2 2020 [21] Market Data and Key Metrics Changes - The San José Mine in Argentina produced 18,200 GEOs in Q2, nearly double the production from the same period last year [27] - Cash costs for the San José Mine were $1,105 per GEO, slightly lower than Q2 2020 [28] Company Strategy and Development Direction - The company is focused on advancing its large copper project, Los Azules, which is seen as a significant value driver [53] - Management is exploring options for funding the project, including private funding for a subsidiary to advance it towards a prefeasibility study [62] - The company aims to address access issues and conduct further drilling to enhance the project's value [65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements and a commitment to regaining lost ground in production and share price [6][7] - The company is on track to reach commercial production at the Froome mine in Q4 2021 [14] - Management highlighted the importance of copper in the context of global electrification and renewable energy trends [59] Other Important Information - The company reported total liquid assets of $48.9 million as of June 30, 2021, compared to $20.8 million for the same period last year [13] - Exploration activities in Q2 2021 totaled approximately $6.9 million, with a focus on cost-effective discoveries [30] Q&A Session Summary Question: Expectations for cost improvements at Gold Bar - Management indicated that costs are trending down and operational improvements are ongoing [72][74] Question: Plans for Mexico and El Gallo - Management is evaluating the Phoenix project and looking for ways to improve its economics [78] Question: Timeline for the Fox Complex - A preliminary assessment is expected to be released in Q4 2021, targeting a 10-year mine life with production of around 100,000 ounces per year [86] Question: Update on the copper project - The project is expected to close in two stages, with plans to go public within 12 to 14 months [90][120] Question: Shareholder value from McEwen Copper - Management is considering distributions to shareholders but highlighted potential tax implications [121]