TORONTO, Nov. 07, 2022 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports its third quarter (Q3) results for the period ended September 30th, 2022.
“This year has been much better than the previous three! While we still have issues to resolve, such as increasing our treasury by producing more ounces at a lower cost, we can clearly see a brighter future. At the Fox Complex, where we have had a history of high operating cost/oz we are making good progress reducing our cost. I am pleased to say that in Q3 our cash cost/oz at Fox fell to $774, our lowest since mid-2018. This is well below the industry average. Our next important area to improve at Fox is the process plant (mill). Specifically, we need to increase the throughput because our mine is now producing more ore than our mill can process. As a result, we have a large surface stockpile of ore equivalent to more than two months of production.
At Gold Bar, we are looking forward to starting to mine our Gold Bar South (GBS) deposit this quarter. We are expecting to have a much lower cost/oz than our YTD cost because we will be mining higher grade ore at GBS, with half the strip ratio and no problematic carbonaceous material.
In Mexico, we recently acquired a complete process plant on very advantageous terms that will help significantly reduced projected capital requirements for our Fenix project. This acquisition has made Fenix more attractive to build and could provide a new long life mine for McEwen Mining.
The San José mine, where we have a 49% interest, put in a strong quarter and its exploration is continuing to extend its high-grade veins and discover new veins.
We completed an $82 million financing for McEwen Copper in a very tough equity market. Rio Tinto, the second largest mining company in the world, through its subsidiary Nuton, now owns 9.7% of McEwen Copper, as a result of its investment of $25M. Also, Nuton is testing the Los Azules copper mineralization to see if it can accelerate and increase copper recoveries. Another of Rio Tinto’s subsidiaries, Kennecott Exploration, signed an option to earn 60% interest in McEwen Copper’s other copper project, Elder Creek, by spending $18 million on exploration. Elder Creek is located in Nevada.
In July our shares outstanding underwent a 10 for 1 consolidation. This was an unfortunate but necessary action done to protect our listing on the NYSE, which is our principal exchange and where our trading volume is the highest.
Production guidance for 2023 is 150,000 to 170,000 gold equivalent ounces (GEOs).
Later in this release I will explain why I believe MUX is an attractive investment” said Rob McEwen, Chairman and Chief Owner.
A webcast will be held on Monday, Nov 7 th at 11:00 am EST . Management will discuss our Q3 financial results and project developments and follow with a question-and-answer session. Questions can be asked directly by participants over the phone during the webcast.
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