The Canadian company sees revenue growth and commits to copper development in the country.
By Panorama Minero
McEwen Mining Inc. announced its financial and operational results for the third quarter of 2024, emphasizing progress in its Argentine operations, especially in the Los Azules copper project. With a 36% revenue increase and a substantial reduction in losses, the company reaffirmed its commitment to developing gold, silver, and copper mining in the region, despite economic challenges.
Revenue Growth and Operational Profitability in the Third Quarter
During the third quarter of 2024, McEwen Mining reported revenue of $52.3 million, a 36% increase compared to the same period in 2023. This growth is primarily due to higher gold prices, which averaged $2,499 per ounce versus $1,920 the previous year, along with increased production of gold equivalent ounces (GEOs). Overall, the company achieved an operating cash flow of $23.2 million, a notable improvement from negative cash flow in the same quarter last year.
San José Project: Production Stability and Expansion on the Horizon
The San José mine in Argentina, operated by Hochschild Mining and in which McEwen holds a 49% stake, produced 13,684 GEOs in the third quarter—a 23% decline compared to the same period in 2023 due to lower grades mined. Despite this reduction, the mine is expected to meet its annual attributable production target of 50,000 to 60,000 GEOs, supported by a production recovery in the year’s final quarter.
San José has increased its liquidity position, reaching $75.5 million in working capital by the end of September 2024, representing a $40.4 million increase compared to the previous year. The company has also allocated resources for expansion and exploration, investing $8.5 million in exploration and $3.5 million to upgrade the processing plant.
Boosting Los Azules with New Investments
McEwen Copper, a subsidiary of McEwen Mining, raised $56 million through a private placement to finance the development of Los Azules, one of Argentina's and the world’s leading copper projects. Investors included Nuton LLC, a Rio Tinto subsidiary, along with Rob McEwen and McEwen Mining, who contributed $5 million and $14 million, respectively. Following this investment, McEwen Mining holds a 46.4% stake in McEwen Copper, now valued at $984 million.
The Los Azules project is moving towards the feasibility study phase, with publication scheduled for the first half of 2025. The funds raised will complete the study and support exploration programs focused on discovering new copper reserves, establishing Los Azules as a world-class deposit.
Outlook for the Final Quarter of 2024
McEwen Mining is confident that increased production at the San José project in the fourth quarter will help improve its results, though operating costs in US dollars may remain elevated due to inflation and local macroeconomic factors in Argentina. "Nevertheless, the company reaffirms its commitment to mining in the country, both in the production of precious metals and in the development of the copper sector, aiming to maximize global market opportunities and Argentina’s mining potential," the company concluded.
Copper: McEwen Highlights Argentina Presence and Investments in Los Azules in Quarterly Results
