McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) reports
annual consolidated production in 2017 was
109,947
gold ounces and
3,178,742 silver ounces, or
152,329 gold equivalent ounces(1), at a gold to
silver ratio of 75:1.
2017 Consolidated Production
Summary
|
Guidance |
2017 |
Q1 |
Q2 |
Q3 |
Q4 |
Gold ounces |
109,500 |
109,947 |
20,096 |
22,191 |
19,051 |
48,609 |
Silver ounces |
3,337,000 |
3,178,742 |
722,767 |
779,487 |
749,749 |
926,739 |
Gold Eq. ounces |
154,000 |
152,329 |
29,733 |
32,584 |
29,047 |
60,965 |
Q4 2017 Highlights
- El Gallo achieved production of 19,893 gold equivalent
ounces in Q4, successfully recuperating lost production due to
equipment failure in July.
- Black Fox had a good first quarter after the transition
to MUX ownership, producing 14,279 gold equivalent
ounces.
- Funding for a $10 million exploration program in the
Timmins region, focusing on the Black Fox Complex.
El Gallo Mine, Mexico
Production in 2017 was 46,694
gold equivalent ounces, compared to 55,266 gold equivalent ounces
in 2016. The mine overcame a production shortfall stemming from a
serious mechanical crusher failure at the end of July to achieve
93% of our annual guidance.
In Q4, the mine produced 19,893
gold equivalent ounces, compared to 7,676 gold equivalent ounces
during same period in 2016. Production in Q4 was higher as a result
of increased crushing capacity, readily available stockpile of ore
from previous quarters, and access to higher-grade portions of the
orebody.
Black Fox Mine, Canada
MUX closed the purchase of the Black Fox Complex
on October 6, 2017. During Q4, the mine produced
14,279 gold equivalent ounces from 79,046 tonnes
processed at a grade of 6.47 gpt gold. These results are in-line
with our production expectations set forth during the
acquisition.
San José Mine, Argentina (49%(2))
Our attributable production from San José in
2017 was 49,233 gold ounces and
3,159,352 silver ounces, for a total of
91,356 gold equivalent ounces. Compared to 2016,
gold production was up 6% and silver production was down 4%.
In Q4, attributable production was
14,528 gold ounces and 919,898
silver ounces, for a total of 26,793 gold
equivalent ounces.
Return of Capital
The semi-annual return of capital of ½ cent per
share will be paid on February 14th, 2018 to shareholders of record
as of the close of business on February 2rd, 2018. 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 recommend you to obtain
advice from a tax professional familiar with your specific
situation.
Financial Results
Operating costs for the quarter ended December
31, 2017 will be released with our 10-K Annual Financial Statements
in late February 2018.
Footnotes:
- 'Gold Equivalent Ounces' are calculated based on a 75:1 gold to
silver ratio.
- The San José Mine is 49% owned by McEwen Mining Inc. and 51%
owned and operated by Hochschild Mining plc.
ABOUT MCEWEN MINING
McEwen has the goal to qualify for inclusion in
the S&P 500 Index by creating a profitable gold and silver
producer focused in the Americas. McEwen’s principal assets consist
of the San José mine in Santa Cruz, Argentina (49% interest), the
El Gallo Gold mine and El Gallo Silver project in Mexico, the Black
Fox mine in Timmins, Canada, the Gold Bar future mine in Nevada,
and the Los Azules copper project in Argentina.
McEwen has a total of 337 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 24% of
McEwen.
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 INFORMATIONThe
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 (the "Company") estimates,
forecasts, projections, expectations or beliefs as to future events
and results including, but not limited to, the closing of the
Offering and the use of proceeds thereof. 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 related to
fluctuations in mine production rates, 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, 2016 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.
CONTACT INFORMATION: |
Mihaela IancuInvestor Relations(647)-258-0395 ext
320info@mcewenmining.com |
Website: www.mcewenmining.com
Facebook: facebook.com/mcewenrob
Twitter: twitter.com/mcewenmining |
150 King Street
WestSuite 2800, P.O. Box 24Toronto, Ontario, CanadaM5H
1J9(866)-441-0690 |
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