Tuesday, April 18, 2017 12:04:05 PM
Why McEwen Mining Inc. Shares Fell Nearly 13% in March
Gold and silver miner McEwen Mining posted earnings on March 1. It seems Wall Street wasn't impressed.
Reuben Gregg Brewer
(TMFReubenGBrewer)
Apr 6, 2017 at 8:50AM
What Happened?
McEwen Mining Inc. (NYSE:MUX), a debt-free precious-metals miner, watched its stock price decline by just under 13% in March.
So What?
The volatile price of precious metals has a big impact on McEwen's stock price, as with any gold and silver miner. Gold started the year off on an up note, peaked in late February, fell through mid-March, and then started to head higher through the end of last month. Add to this the company's mid-February agreement to acquire Lexam VG Gold Inc in an all-stock transaction, and there's been a lot going on lately. It's not surprising that McEwen shares might be under some pressure.
Employees at a McEwen Mine.
The company also happened to report earnings on March 1. McEwen reported net income of $0.07 a share for 2016, up from a $0.07 a share loss in 2015. That was great news, of course, but gold-equivalent production was down nearly 6% year over year, and all-in sustaining costs were up roughly 5%. Neither of those numbers are heading in the right direction.
To make things worse, the company's guidance for 2017 suggested that the trend isn't going to change in the near term. For example, gold-equivalent production is expected to decline as much as 7% this year. And costs are projected to increase again, this time, by nearly 50%! To be fair, that number is skewed higher by spending on growth projects.
As with any mining investment, the benefit of the spending isn't going to show up for awhile. In other words, there's a reason for investors to be a little less positive about McEwen's near-term outlook now that they've seen what the miner has to say about 2017.
Recent MUX News
- McEwen Mining: Grey Fox Exploration Update • GlobeNewswire Inc. • 09/11/2024 11:00:00 AM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 09/06/2024 04:15:08 AM
- 100% Renewable Energy for Los Azules • GlobeNewswire Inc. • 08/26/2024 07:34:52 PM
- Recent and Upcoming McEwen Mining and McEwen Copper Presentations • GlobeNewswire Inc. • 08/22/2024 11:05:04 PM
- Form 425 - Prospectuses and communications, business combinations • Edgar (US Regulatory) • 08/19/2024 08:43:19 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/19/2024 08:34:53 PM
- McEwen Mining Announces Closing of Timberline Acquisition • GlobeNewswire Inc. • 08/19/2024 08:15:55 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/09/2024 08:12:14 PM
- McEwen Copper Update, Excitement in Argentina: Milei Magic Is Turbocharging Foreign Investments; US$4.4 Billion Copper Transaction by BHP and Lundin Mining; Los Azules Infill Drilling Confirmed High Grade Copper Zone • GlobeNewswire Inc. • 08/08/2024 10:10:43 PM
- McEwen Mining: Q2 2024 Results • GlobeNewswire Inc. • 08/07/2024 10:54:31 PM
- McEwen Mining Q2 2024 Results Conference Call • GlobeNewswire Inc. • 08/06/2024 01:47:25 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/18/2024 12:57:42 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 07/15/2024 10:02:21 AM
- McEwen Mining Announces AGM Voting Results, Meeting Resources Now Available • GlobeNewswire Inc. • 07/02/2024 09:28:40 PM
- McEwen Copper Announces $70 Million Financing to Advance the Los Azules Copper Project • GlobeNewswire Inc. • 06/24/2024 09:36:01 PM
- Fox Complex: Extending Mine Life; A New Mine at the Stock Property; Exploration Has Driven the Prospect of Earlier Cash Flow • GlobeNewswire Inc. • 06/20/2024 08:00:00 PM
- McEwen Mining Announces Closing of Flow-Through Financing • GlobeNewswire Inc. • 06/14/2024 12:47:32 PM
- IBN Announces Latest Episode of The MiningNewsWire Podcast featuring Rob McEwen, Chairman and Chief Owner of McEwen Mining Inc. • GlobeNewswire Inc. • 06/13/2024 12:00:00 PM
- McEwen Mining Announces Flow-Through Financing at $14.36 (Cdn$19.59) per Share a 19% Premium to Market • GlobeNewswire Inc. • 05/29/2024 02:52:49 AM
- McEwen Mining: Grey Fox Exploration Update Extending the Production Pipeline: Good Grades Near Surface, Potential at Depth • GlobeNewswire Inc. • 05/27/2024 11:00:00 AM
- Form S-4 - Registration of securities, business combinations • Edgar (US Regulatory) • 05/22/2024 09:23:55 PM
- McEwen Copper Announces Completion of the Feasibility Drilling Program • GlobeNewswire Inc. • 05/16/2024 05:30:40 PM
- McEwen Mining: Q1 2024 Results • GlobeNewswire Inc. • 05/08/2024 08:25:33 PM
- McEwen Mining Q1 2024 Results Conference Call • GlobeNewswire Inc. • 05/06/2024 03:14:03 PM
FEATURED Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • Sep 24, 2024 8:50 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM