McEwen Mining(MUX)2025-05-08 16:00Financial Data and Key Metrics Changes - The company's gross profit increased by 68% to CAD 10.1 million compared to Q1 2024 [5] - Adjusted EBITDA rose by 38% to CAD 8.7 million [5] - Cash and cash equivalents grew to CAD 68.5 million from CAD 17.5 million [6] - Consolidated working capital improved to CAD 61 million from a negative CAD 6.5 million [6] - Total debt increased to CAD 130 million from CAD 40 million, while the debt cost of service decreased from 9.5% to 6% [6] - Net debt currently stands at just over CAD 42 million [6] Business Line Data and Key Metrics Changes - Gold Bar produced 10% more gold than budgeted at a cash cost 24% below the low end of annual guidance, with a cash cost of CAD 1,146 [4] - However, Gold Bar's all-in sustaining cost per ounce was approximately CAD 2,200 due to accelerated stripping costs [4] Market Data and Key Metrics Changes - The company reported a positive outlook due to higher prices of gold, silver, and copper [3] Company Strategy and Development Direction - The majority of funds from a capped call convertible note will be used to advance the development of the Fox Complex, with expected consolidated annual production reaching 225,000 to 255,000 ounces by 2030, an increase of over 80% from current production [3] - The company is focusing on exploration and development at both the Fox Complex and Gold Bar, with updates expected throughout the year [7] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing improved liquidity and the potential for higher gold prices [34] - The company anticipates that operational performance will improve in the coming quarters [33] Other Important Information - The company received a permit to construct a ramp to the underground at the Stock Mine, which is crucial for the Stock Complex expansion [7] - The feasibility study for Los Azules is expected to be published this summer, which will improve the company's income statement by capitalizing expenses related to McEwen Copper [29][30] Q&A Session Summary Question: How much cash or cash plus investments is held within the copper subsidiary? - Currently, the treasury for McEwen Copper is below GBP 10 million, and additional financing is expected as the feasibility study approaches [10][11] Question: Is the $10 million enough to complete the feasibility study? - Additional runway will likely be needed to complete the feasibility study by July [11] Question: What is the status of dividends from San Jose? - Regular dialogue with Hochschild is ongoing, focusing on balancing reinvestment in the mine and returning value to shareholders [14][16] Question: What is the expected production timeline for the Stock Mine? - First production from the underground portion of the Stock Mine is anticipated in the last quarter of this year [18][20] Question: What is the timeframe and cost for bringing the Grey Fox mine back into production? - A study is underway to determine capital and operating costs, with a focus on the best access method for the mine [21][22]