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McEwen Mining posts Q2 net loss of $12.4 million on investment in Los Azules copper project

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(Kitco News) - McEwen Mining (TSX: MUX) reported Thursday that its Q2 2022 production was 27,600 gold ounces and 704,600 silver ounces, or 36,100 gold equivalent ounces (GEOs), down 11% compared to 40,700 GEOs produced in Q2 2021.

Average cash costs per GEO sold from the company’s 100%-owned mines in Q2 were $1,169, 15% below its guidance midpoint of $1,380 per GEO. Average all-in sustaining costs per GEO sold from the company’s 100%-owned mines were $1,549, 11%below its guidance midpoint of $1,740 per GEO.

The company added that its consolidated net loss in Q2 was $12.4 million, or $0.26 per share (giving effect to the 1-for-10 reverse share split on July 28th), which relates primarily to $14.4 million investment in the Los Azules copper project.

McEwen added that its 100%-owned mines generated a cash gross profit of $7.7 million in Q2 and a gross profit of $4.2 million. Cash and cash equivalents at June 30th, 2022, totaled $47.8 million.

McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina. It also has a large exposure to copper through its subsidiary McEwen Copper, owner of the Los Azules copper deposit in Argentina.

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