Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
McEwen Mining (NYSE: MUX) (TSX: MUX) reported on Monday that its production for the full year of 2020 was 92,100 gold ounces and 2.02 million silver ounces, or 115,600 gold-equivalent ounces (GEOs). This represents a decline of 33% from the 174,400 GEOs produced in 2019.
Consolidated production for Q4 2020 reached 24,100 gold ounces and 532,400 silver ounces, or 31,100 GEOs, also about a 33% decrease compared to Q4 2019, which recorded production of 46,300 GEOs.
During the latest quarter, the San José mine contributed 531,500 silver ounces and 8,700 gold ounces, or 15,600 GEOs, which was in-line with the company’s expectations. Earlier this month, the mine resumed production after the provincial government of Santa Cruz lifted its temporary shutdown mandate.
At its Black Fox operations in Ontario, production of 8,000 GEOs was above expectations.
Meanwhile, at Gold Bar, where the mine’s updated resource and reserve estimates are being finalized, production of 6,000 GEOs fell below expectations.
In addition, El Gallo produced 1,500 GEOs from residual leaching.
Shares of McEwen Mining rose 5.2% by 1 p.m. in Toronto. The company’s market capitalization stands at C$423.2 million.
