McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased
to announce annual consolidated production in 2016 was 145,530 gold
equivalent ounces(1) using a gold to silver ratio of 75:1, or
101,482 gold ounces and 3,303,709 silver ounces.
2016 Consolidated Production
Summary |
|
|
Guidance |
2016 |
Q1 |
Q2 |
Q3 |
Q4 |
Gold ounces |
99,500 |
101,482 |
28,975 |
27,888 |
24,281 |
20,337 |
Silver ounces |
3,337,000 |
3,303,709 |
673,767 |
875,006 |
916,168 |
838,768 |
Gold Eq. ounces |
144,000 |
145,530 |
37,958 |
39,555 |
36,496 |
31,521 |
Highlights
- Achieved gold and silver production in-line with
guidance from our two producing mines.
- Doubled liquid assets during the year to $64 million(2)
in cash, cash equivalents and precious metals, and no
debt.
- 3rd semi-annual return of capital of ½
cent per common share will be
paid on February 14th, 2017 to shareholders of record as of the
close of business on February 3rd, 2017.
El Gallo Mine, Mexico
Production in 2016 was 55,266
gold equivalent ounces, compared to 63,366 gold equivalent ounces
in 2015. Our production guidance for the year was slightly exceeded
and the mine performed well despite lower ore grades mined and
processed relative to 2015.
In Q4, the mine produced 7,676
gold equivalent ounces, compared to 11,092 gold equivalent ounces
during same period in 2015. Production in Q4 was lower as a result
of mining and processing lower ore grades during the quarter.
San José Mine, Argentina (49%(3))
Our attributable production from San José in
2016 was 46,553 gold ounces and
3,278,373 silver ounces, for a total of
90,264 gold equivalent ounces. Compared to 2015,
silver production levels were maintained and gold production was
down 2%.
In Q4, attributable production was
12,714 gold ounces and 834,846
silver ounces, for a total of 23,845 gold
equivalent ounces.
Return of Capital
Our third semi-annual return of capital of ½
cent per share will be paid on February 14th, 2017 to shareholders
of record as of the close of business on February 3rd, 2017. It
will be paid to common shareholders of McEwen Mining Inc. from
additional paid-in capital. For shareholders in the US and Canada,
return of capital is generally not taxed, however we advise you to
obtain advice from a tax professional familiar with your specific
situation.
Financial Results
Operating costs for the quarter ended December
31, 2016 will be released with our 10-K Annual Financial Statements
in late February 2017. As at December 31, 2016 we have no debt and
liquid assets of $64 million composed of $36 million in cash, $21
million in precious metals, and $7 million in marketable
securities. We have not issued equity to finance our
operations since completing a rights issue in 2013, and we have
preserved our leverage to higher gold and silver prices by not
encumbering our assets with royalties, metal streams or hedges.
Footnotes:
- 'Gold Equivalent Ounces' are calculated based on a 75:1 gold to
silver ratio.
- Figures updated as of December 31, 2016.
- The San José Mine is 49% owned by McEwen Mining Inc. and 51%
owned and operated by Hochschild Mining plc.
ABOUT MCEWEN MINING
(www.mcewenmining.com)
McEwen Mining has an ambitious goal of
qualifying for inclusion in the S&P 500 Index by creating a
high growth gold and silver producer focused in the Americas.
McEwen Mining's principal assets consist of the San José Mine in
Santa Cruz, Argentina (49% interest), the El Gallo Mine and El
Gallo Silver project in Sinaloa, Mexico, the Gold Bar project in
Nevada, USA, and the Los Azules copper project in San Juan,
Argentina.
McEwen Mining has a total of 300 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 25% of the
Company.
RELIABILITY OF INFORMATION REGARDING THE
SAN JOSÉ MINE
Minera Santa Cruz S.A., the owner of the San
José Mine, is responsible for and has supplied to the Company all
reported results from the San José Mine. McEwen Mining's joint
venture partner, a subsidiary of Hochschild Mining plc, and its
affiliates other than MSC do not accept responsibility for the use
of project data or the adequacy or accuracy of this release.
TECHNICAL INFORMATION
The technical contents of this news release has
been reviewed and approved by Nathan M. Stubina, Ph.D., P.Eng.,
FCIM, Managing Director and a Qualified Person as defined by
Canadian Securities Administrator National Instrument 43-101
"Standards of Disclosure for Mineral Projects".
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTS
This news release contains certain
forward-looking statements and information, including
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements and information expressed, as at the date of this news
release, McEwen Mining Inc.'s estimates, forecasts, projections,
expectations or beliefs as to future events and results.
Forward-looking statements and information are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by management, are inherently subject to significant
business, economic and competitive uncertainties, risks and
contingencies, and there can be no assurance that such statements
and information will prove to be accurate. Therefore, actual
results and future events could differ materially from those
anticipated in such statements and information. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not
limited to, factors associated with fluctuations in the market
price of precious metals, mining industry risks, political,
economic, social and security risks associated with foreign
operations, the ability of the corporation to receive or receive in
a timely manner permits or other approvals required in connection
with operations, risks associated with the construction of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation, the state of the capital
markets, environmental risks and hazards, uncertainty as to
calculation of mineral resources and reserves, and other risks. The
Company’s dividend policy will be reviewed periodically by the
Board of Directors and is subject to change based on certain
factors such as the capital needs of the Company and its future
operating results. Readers should not place undue reliance on
forward-looking statements or information included herein, which
speak only as of the date hereof. The Company undertakes no
obligation to reissue or update forward-looking statements or
information as a result of new information or events after the date
hereof except as may be required by law. See McEwen Mining's Annual
Report on Form 10-K for the fiscal year ended December 31, 2015 and
other filings with the Securities and Exchange Commission, under
the caption "Risk Factors", for additional information on risks,
uncertainties and other factors relating to the forward-looking
statements and information regarding the Company. All
forward-looking statements and information made in this news
release are qualified by this cautionary statement.
The NYSE and TSX have not reviewed and do not
accept responsibility for the adequacy or accuracy of the contents
of this news release, which has been prepared by management of
McEwen Mining Inc.
|
|
Websitewww.mcewenmining.com |
Facebookfacebook.com/mcewenrob |
Twittertwitter.com/mcewenmining |
CONTACT INFORMATION:
Mihaela Iancu
Investor Relations
(647) 258-0395 ext 320
info@mcewenmining.com
Christina McCarthy
Director of Corporate Development
(647) 258-0395 ext 390
corporatedevelopment@mcewenmining.com
150 King Street West
Suite 2800,P.O. Box 24
Toronto, Ontario, Canada
M5H 1J9
(866) 441-0690
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Aug 2024 to Sep 2024
McEwen Mining (NYSE:MUX)
Historical Stock Chart
From Sep 2023 to Sep 2024