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McEwen says 13% production drop in Q1 2021 was in line with expectations

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(Kitco News) - McEwen Mining (NYSE: MUX) (TSX: MUX) reported Friday that its Q1 2021 production was 23,300 gold ounces and 493,200 silver ounces, or 30,600 gold equivalent ounces, a 13% decline over Q1 2020 output (35,100 gold equivalent ounces).

The company’s attributable production from San José in Q1 2021 was 9,500 gold ounces and 492,300 silver ounces, for a total of 16,700 GEOs. For Q1 2021, total cash costs and all-in sustaining costs (AISC) were $1,088 and $1,328 per GEO, respectively. This compares to 14,900 GEOs at total cash costs and AISC of $1,138 and $1,592 per GEO, respectively, in Q1 2020.

Gold Bar produced 7,400 GEOs in Q1 2021 at total cash costs and AISC of $1,865 and $1,934 per GEO, respectively. This compares to 9,100 GEOs at total cash costs and AISC of $1,887 and $2,177 per GEO, respectively, in Q1 2020. McEwen explained that production for the remainder of the year is expected to increase, and correspondingly costs are expected to decrease.

Black Fox produced 5,200 GEOs in Q1 2021 at total cash costs and AISC of $1,262 and $1,560 per GEO, respectively. This compares to 8,300 GEOs at total cash costs and AISC of $838 and $1,339 per GEO, respectively, in Q1 2020. The company said that mining at Black Fox has begun transitioning to the Froome deposit, where a progressive ramp-up is planned through Q3, with commercial production expected in Q4.

The company noted that all operations delivered production results in line with its expectations. Production is expected to increase throughout 2021 and end 20 to 40% higher than 2020.

McEwen Mining is a diversified gold and silver producer and explorer focused on the Americas with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina.

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