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McEwen reports net loss for quarter

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McEwen Mining Inc. announced a net loss of $17.4 million, or 4 cents per share, for the third quarter, compared with a net loss of $9.8 million, or 2 cents per share, in the 2020 quarter, but .

Gold Bar in Eureka County produced 12,400 gold equivalent ounces in the 2021 quarter, up from 6,800 gold equivalent ounces in the 2020 quarter, at all-in sustaining costs of $1,618 per ounce.

Companywide, McEwen Mining produced 32,100 ounces of gold in the third quarter, up from 23,100 ounces in the 2020 quarter, and 792,00 ounces of silver, up from 575,000 ounces last year, according to the earnings report.

The Fox Complex produced 8,300 gold ounces, up from 5,800 in the 2020 quarter, and the San Jose Mine in Argentina that McEwen is 48% owner produced 10,800 ounces of gold, up from 8,600 in the 2020 quarter and 790,000 silver ounces, compared with 571,000 ounces last year.

The company also reported it is on track to produce between 141,000 and 160,000 gold equivalent ounces in 2021.

Chief owner Rod McEwen said in the earnings call that “our fortunes are definitely improving” from the larger earnings losses suffered in the past, and he is “reasonably optimistic” share prices will improve. “We know there is much more to achieve to build an exceptional company.”

Toronto-based McEwen Mining also announced in its earnings report that exploration in Nevada is focused on near-mine targets and further defining oxide resources on the neighboring Tonkin property that could potentially be processed at Gold Bar.

The company spent more than $1 million on exploration in Nevada, with encouraging results at the Tonkin Rooster deposit, according to the earnings report.

“The Rooster deposit is structurally complex,” Steven McGibbon, executive vice president of exploration, said in the company’s earnings call. He said there is both oxide and “more refractory” ore at Rooster.

An ongoing program of remapping, relogging historic drill holes and producing an updated geologic mode by year-end are planned to establish a basis for continued exploration at Tonkin next year, he also reported.

The company stated that it continued to aggressively invest companywide $6.2 million in exploration and $4 million in advanced projects, primarily focused on the Fox Complex in Canada, where commercial production at the Froome deposit was reached on Sept. 19.

Chief Financial Officer Anna Ladd-Kruger said the $10.3 million spent in the quarter for exploration is reflected in the loss for the quarter.

Results of the Fox Complex expansion study are expected by the end of the current quarter, incorporating the 2021 exploration and resource definition drilling results and will highlight development plans for the Grey Fox and Stock deposits, according to the earnings announcement.

Separately, McEwen Copper’s Los Azules project is moving ahead quickly, according to the earnings report. The exploration road has been reopened, three work camp sites have been established, and an expanded labor force and preparations are under way for starting a 10-drill, 174,600-foot drilling program. Construction of a new access road for year-round access also is advancing.

Rod McEwen, who is a large investor in McEwen Copper, said work on the prefeasibility study for Los Azules would begin in the current quarter, and he sees significant prospects for the project. McEwen Mining is the majority shareholder in the copper company.

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