McEwen Mining lists 2019 loss but spending on projects, exploration
(Kitco News) - McEwen Mining Inc. (NYSE, TSX: MUX) reported late Monday that the company posted a net loss during 2020 but also said much of this was the result of spending on advanced projects and exploration.
Full-year 2019 production was 174,420 gold-equivalent ounces, compared to 175,640 in 2018. during the fourth quarter, production rose to 46,295 gold-equivalent ounces from 40,296 in the same period of 2018.
“We invested $47.3 million on advanced projects and exploration in 2019, which contributed to our consolidated net loss of $59.7 million, or $0.17 per share,” McEwen said in its earnings release.
For the fourth quarter, the company listed a net loss of $25.1 million, or 7 cents per share. This compared with a loss of $21 million, or 6 cents, in the year-ago period.
The company said it performed 132 miles, or 213 kilometers, of drilling in 2019, with approximately 90% completed at the Black Fox Complex and the rest at Gold Bar.
“Exploration delivered many high-grade drill intersections on extensions of the Black Fox Mine, in the Grey Fox area, and on the Stock property, where drilling led to the discovery of a new gold mineralized zone at Stock West,” the company said.
McEwen said the company’s three 100% owned mines generated a cash gross profit of $33.7 million in 2019, with a gross profit of $9 million. The company explained that cash gross profit is a new non-GAAP measure used for the first time in in its Form 10-K filings and is intended to evaluate the ability to generate cash flow. Cash gross profit is calculated by adding back depletion and depreciation to gross profit, which is a GAAP measure.
McEwen said the company received $8.9 million in dividends last year from its interest in the San José mine, of which it is 49% owner, Hochschild Mining has a 51% interest.