McEwen Mining reports in line with previously announced annual production target. Higher Gold and Silver prices will make this story interesting again, MUX was breaking out to the upside with recent higher Gold price. Los Azules Copper project remains the main catalyst to propel this stock to much higher valuations and Argentina seems to be cooperating this time. Rob McEwen talks about acquisitions and any move on these fronts will make shorts uneasy again - short position is reported at 31 million shares now.
McEwen Mining And TNR Gold: Report - Argentina Is In The Mood For Change On Investment Policy TNR.v, MUX, LCC.v, SSRI, PAA
"Argentina mining landscape is changing for the better according to the report by BN Americas. Lumina Copper is trading above CAD 6.00, McEwen Mining is breaking out to the upside and TNR Gold has found some bids as well recently."Los Azules Copper - McEwen Mining And TNR Gold: Yamana Gold to invest $450 million in Argentine mine MUX, TNR.v, LCC.v
"It looks like the shift in Argentina for the better is happening for real this time. Rob McEwen has discussed it in his recent presentation and that in his opinion "we have seen the low in Argentina after a lot of disappointment". Shevron special Shale Oil deal, repayment to Repsol and now Yamana Gold investment are certainly the things we would like to see now after elections. Lumina copper is holding above CAD5.00 these days and McEwen Mining and TNR Gold should benefit from Los Azules copper revised valuation now."
McEwen Mining:
McEwen Mining 2013 Production Up 33% Over 2012; 139,455 Gold Eq. oz Produced in 2013
01/14/2014
In Q4 the Company produced 37,167 gold eq. oz (20,686 gold oz and 857,011 silver oz). This is 15% higher than Q4 2012.
| Company Wide Operating Results | |||||
| Full-Year 2013 | Full-Year 2012 | 4 thQuarter 2013 | 4 thQuarter 2012 | ||
| San José Mine Production (49%)* | |||||
| Gold produced (ounces) | 48,425 | 42,026 | 12,999 | 11,024 | |
| Silver produced (ounces) | 3,114,832 | 2,916,742 | 853,225 | 757,009 | |
| Gold equivalent produced (ounces)** | 108,326 | 98,117 | 29,407 | 25,582 | |
| El Gallo 1 Production | |||||
| Gold produced (ounces) | 30,733 | 6,863 | 7,687 | 6,567 | |
| Silver produced (ounces) | 20,635 | 4,492 | 3,786 | 4,360 | |
| Gold equivalent produced (ounces)** | 31,129 | 6,949 | 7,760 | 6,651 | |
| Total Production | |||||
| Gold produced (ounces) | 79,158 | 48,889 | 20,686 | 17,591 | |
| Silver produced (ounces) | 3,135,467 | 2,921,234 | 857,011 | 761,369 | |
| Gold equivalent produced (ounces)** | 139,455 | 105,067 | 37,167 | 32,233 | |
| * McEwen Mining holds a 49% attributable interest in the San José mine. |
| ** Gold equivalent ounces were calculated at a silver to gold ratio of 52:1 for 2012 and 2013, For the purpose of the 2014 forecast a ratio of 60:1 is being used. |
Production for 2014 is forecast to be roughly in line with 2013, between 135,000-140,000 gold eq. oz (approximately 81,000 gold oz and 3,225,000 silver oz). The Company expects production during the second half of 2014 to exceed the first half due to the expansion at
"In addition to executing on our organic growth plans, we continue to analyze M&A opportunities. Our ideal candidate would significantly increase our production, lower our cost profile, and have cash and free cash flow to facilitate the construction of El Gallo 2. Our geographic focus remains on the Americas .
As the Company's largest shareholder, I can say management is focused on growth that produces a higher share value and price. It is not growth just to be a larger company. The fact that I do not take a salary means that the only way I will make money is the same as all the shareholders do and that is through a higher share price," stated Rob McEwen , Chairman and Chief Owner.
Our Sources of Production
1. San José Mine, Argentina (49%)
| San José Mine Operating Results | ||||
| San José - 100%* | Full-Year 2013 | Full-Year 2012 | 4 thQuarter 2013 | 3 rdQuarter 2013 |
| Ore production (tonnes) | 536,937 | 509,851 | 156,150 | 131,592 |
| Average grade gold (gpt) | 6.42 | 5.79 | 6.03 | 6.59 |
| Average head silver (gpt) | 425 | 417 | 399 | 446 |
| Average gold recovery (%) | 89.2 | 90.4 | 87.6 | 91.9 |
| Average silver recovery (%) | 86.7 | 87.0 | 87.0 | 89.5 |
| Gold produced (ounces) | 98,827 | 85,768 | 26,529 | 25,610 |
| Silver produced (ounces) | 6,356,801 | 5,952,534 | 1,741,275 | 1,689,237 |
| Gold equivalent produced (ounces)** | 221,073 | 200,240 | 60,015 | 58,095 |
| McEwen Mining - 49% Share | ||||
| Gold produced (ounces) | 48,425 | 42,026 | 12,999 | 12,549 |
| Silver produced (ounces) | 3,114,832 | 2,916,742 | 853,225 | 827,726 |
| Gold equivalent produced (ounces)** | 108,326 | 98,117 | 29,407 | 28,467 |
| * McEwen Mining holds a 49% attributable interest in the San José mine. |
| ** Gold equivalent ounces are calculated at a ratio of 52:1 for 2012 and 2013. |
2.
| El Gallo 1 Mine Operating Results in 2013 | |||
| Full-Year 2013 | 4 thQuarter 2013 | 3 rdQuarter 2013 | |
| Ore production (tonnes) | 1,260,641 | 323,863 | 289,382 |
| Average grade gold (gpt) | 1.22 | 1.17 | 1.31 |
| Gold produced (ounces) | 30,733 | 7,687 | 7,934 |
| Silver produced (ounces) | 20,635 | 3,786 | 4,868 |
| Gold equivalent produced (ounces)** | 31,129 | 7,760 | 8,028 |
| ** Gold equivalent ounces are calculated at a ratio of 52:1 for 2013. |
3. Future Mines
The Environmental Impact Statement (EIS) permit for El Gallo 2 was approved by the federal Mexican Secretariat of Environment and Natural Resources (SEMARNAT) on November 8, 2013 . The final Change of Land Use permit is being reviewed by the state government and a decision on this permit is expected during Q1 2014. This final permit would allow construction and operations to commence at El Gallo 2 under a mill scenario. The Company has not yet made a decision as to whether to proceed with El Gallo 2. This decision, will among other things, be determined by the timing of permits, the availability of capital and precious metals prices.
Gold Bar, Nevada (100%)
About McEwen Mining ( www.mcewenmining.com )
The goal of McEwen Mining is to qualify for inclusion in the S&P 500 by creating a high growth gold 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 complex in Sinaloa, Mexico ; the Gold Bar project in Nevada , US; the Los Azules project in San Juan , Argentina . McEwen Mining has 297,159,359 shares issued and outstanding at January 14, 2014 . Rob McEwen , Chairman, and Chief Owner, owns 25% of the shares of the Company.
TECHNICAL INFORMATION
This news release has been reviewed and approved by William Faust, PE, McEwen Mining's Chief Operating Officer, who is a Qualified Person as defined by National Instrument 43-101 ("NI 43-101"). For additional information about the El Gallo complex see the technical report titled "Resource Estimate for the El Gallo Complex , Sinaloa State, Mexico " dated August 30, 2013 with an effective date of June 30, 2013 , prepared by John Read , C.P.G., and Luke Willis , P. Geo. Mr. Read and Mr. Willis are not considered independent of the Company as defined by NI 43-101. For additional information about the San José Mine see the "Technical Report on San José Silver-Gold Mine , Santa Cruz , Argentina " dated August 15, 2013 with an effective date of December 31 2012, prepared by Eugene Puritch , P.Eng., David Burga , P.Geo., Alfred Hayden , P.Eng., James L. Pearson , P.Eng., and Fred H. Brown , P.Geo., all of whom are qualified persons and all of whom are independent of McEwen Mining , each as defined by NI 43-101. For information about the Gold Bar project see the technical report titled "NI 43-101 Technical Report on Resources and Reserves Gold Bar Project , Eureka County, Nevada " dated February 24, 2012 with an effective date of November 28, 2011 , prepared by J. Pennington, C.P.G., MSc., Frank Daviess , MAusIMM, Registered SME, Eric Olin ,, MBA, RM-SME, MSc, Herb Osborn, P.E, Joanna , MMSA, B. Eng., Kent Hartley P.E . Mining, SME, BSc, Mike Levy, P.E, P.G, MSc., Evan Nikirk , P. E., Mark Allan Willow , M.Sc, C.E.M. and Neal Rigby , CEng, MIMMM, PhD, all of whom are qualified persons and all of whom are independent of McEwen Mining , each as defined by NI 43-101.
There are significant risks and uncertainty associated with construction, commencing production or changing production plans without a current feasibility, pre-feasibility or scoping study. Although the subject of a 2012 feasibility study, the Company does not have a current feasibility study on theEl Gallo 2 project. As such, El Gallo 2 may ultimately be determined to lack one or more geological, engineering, legal, operating, economic, social, environmental, and other relevant factors reasonably required to serve as the basis for a final decision to complete the expansion of all or part of this project.
There are significant risks and uncertainty associated with construction, commencing production or changing production plans without a current feasibility, pre-feasibility or scoping study. Although the subject of a 2012 feasibility study, the Company does not have a current feasibility study on the
The foregoing technical reports are available under the Corporation's profile on SEDAR (www.sedar.com).
CAUTIONARY NOTE TO US INVESTORS
CAUTIONARY NOTE REGARDING NON-GAAP MEASURES
In this news release, we have provided non-U.S. GAAP ("non-GAAP") performance measures. Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S. GAAP, they may not be comparable to similar measures presented by other companies.
Total cash costs consist of mining, processing, on-site general and administrative costs, royalty costs, refining and treatment charges, sales costs and operational stripping costs. All-in sustaining cash costs consist of total cash costs (as described above), plus environmental rehabilitation costs, mine site exploration and sustaining capital expenditures. Depreciation is excluded from both total cash costs and all-in sustaining cash costs. Total cash cost and all-in sustaining cash cost per ounce are calculated on a co-product basis by dividing the respective proportionate share of the total cash costs and all-in sustaining cash costs for the period attributable to each metal by the ounces of each respective metal sold.
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. 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, technical, 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, 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, risks related to the receipt of required permits and other governmental approvals, uncertainty as to calculation of mineral resources and reserves and other risks. 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, 2012 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:
McEwen Mining Inc.
Sheena Scotland
Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX)
McEwen Mining Inc.
Mailing Address
181 Bay Street Suite 4750
Toronto, ON M5J 2T3
PO box 792
info@mcewenmining.com
Facebook : facebook.com/mcewenrob
Twitter: twitter.com/mcewenmining
www.mcewenmining.com'
Investor Relations
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX)
Mailing Address
181 Bay Street Suite 4750
PO box 792
info@mcewenmining.com
Twitter: twitter.com/mcewenmining
www.mcewenmining.com'
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