McEwen Mining Lists 1Q Loss With Drilling At Los Azules
McEwen Mining Inc. (NYSE, TSX: MUX) reports a net loss of $3 million, or a penny per share, in the first quarter, compared to a net income of $13 million, or 4 cents, for the same period in 2016. The loss was mainly due to a $6.4 million decrease in sales of gold and silver by the El Gallo mine, coupled with a $6.7 million increase in exploration costs, mostly related to the drilling campaign performed at the Los Azules project, the company says. During the quarter McEwen Mining achieved consolidated production of 29,733 gold-equivalent ounces, compared to 37,958 in the same period a year ago. The El Gallo mine produced 9,808 gold-equivalent ounces and reported earnings from mining operations of $8.2 million, while the San José mine produced 19,925 gold-equivalent ounces and reported earnings from mining operations of $5.7 million, the company says. McEwen also says it remains on track to meet production and cost guidance for 2017. Output is expected to be 49,700 ounces of gold and 24,000 ounces of silver from the El Gallo mine, and 50,000 ounces of gold and 3.3 million ounces of silver from the San José mine. Using a silver to gold ratio of 75:1, this represents projected consolidated production of 144,000 gold-equivalent ounces, McEwen says.