McEwen Mining Inc (MUX)

[JD400]

McEwen Mining: Q2 2023 Results
August 10, 2023
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TORONTO, Aug. 10, 2023 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reported its second quarter (Q2) and half year (H1) results for the period ended June 30th, 2023.

“The year started with operational challenges at both Gold Bar and San Jos é . San Jos é appears to have turned the corner and we are confident that the plan in place for Gold Bar will do the same. Fox Complex has delivered another solid quarter and we expect even better results in the second half of the year. We thank our operating teams for their hard work. The story at Los Azules keeps getting better and better! With a strong financing, an updated Preliminary Economic Assessment (PEA) showing robust economics, unparalleled partners in Rio Tinto (through Nuton) and Stellantis, and potentially game changing copper leaching technology, we could see Los Azules provide a model for how the mine of the future should look,” said Rob McEwen, Chairman and Chief Owner.

Second Quarter Highlights and Building Our Future:

Fox Complex: Record daily mill throughput of 1,250 tonnes per day, generating $6 million in cash gross profit in Q2. Sustained higher throughput and improved grade expected to result in stronger production and margins in H2.
San José: Production increased 54% with cash costs/oz declining 24% compared to Q1, as the revised mine plan continues to be executed.
Gold Bar: Higher mining rates and gold grades, together with faster recovery and lower strip ratio from the Pick deposit setting stage for improved production and margins in H2/23 and beyond. Higher costs/oz during Q2 included the additional costs associated with the heap leach pad expansion, which is expected to be completed in Q3.
Fenix Project: We continue to advance towards a formal construction decision. During the quarter, we initiated a sonic drilling campaign, advanced permitting applications and engaged a project manager.
McEwen Copper: PEA for the Los Azules copper project issued in June 2023 with NPV8% of $2.7 Billion and payback period of 3.2 years, assuming a copper price of $3.75/lb. Based on the financing closed in Q1/23, our 52% ownership of McEwen Copper has now an implied value of $285 million, which is equal to 67% of our current market capitalization.
Early retirement of $25 million or 39% of our outstanding debt in Q2; reduction of debt service of $2.2 million annually.
We continued our safety track record of no lost time incidents at our 100% owned operating mines during Q2.
Exploration update across the portfolio to be delivered later in Q3.
Mr. McEwen continued,

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