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.
Canadian precious metals miner McEwen Mining (TSX, NYSE:MUX) reported Monday total gold production for 2016 slightly lower than the previous year, but said it doubled liquid assets to $64 million, while having no debt.
Annual consolidated production in 2016 was 145,530 gold equivalent ounces, down from the 154,529 gold equivalent ounces it mined in 2015, using a gold to silver ratio of 75:1, or 101,482 gold ounces and 3,303,709 silver ounces.
Production at its Mexican El Gallo mine dropped to 55,266 gold equivalent ounces, compared to 63,366 equivalent ounces extracted in 2015, yet better than the company’s expectations.
At the San Jose mine, Argentina, in which McEwen owns a 49% stake, silver output remained the same as in 2015, while gold production was down 2%.
Shares in the company were up 1.8% to Cdn$5 in late morning trading in Toronto and up 1.9% to $3.8 in New York, in line with most gold miners.
From the press release:
[gview file=”https://mining.com/wp-content/uploads/2017/01/20170116_mcewen.pdf”]
