McEwen Mining reports net loss of $81M in 2022, says invested $82M in advanced projects and exploration
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(Kitco News) - McEwen Mining (NYSE: MUX) (TSX: MUX) today reported that in 2022, the company produced 133,300 gold equivalent ounces (GEOs), down 13.7% from 2021 (154,410 GEOs) and slightly below its revised guidance range of 134,600 to 141,600 GEOs due to lower than planned production at the Fox Complex during the final days of the year.
According to a company press release, production costs per ounce for 2022 were $1,276 for cash costs per GEO sold from the company’s 100%-owned mines, representing a decrease of 12% compared to 2021, and $1,688 for all-in sustaining costs (AISC) per GEO sold, representing an increase of 3% compared to 2021.
The company said that its 100%-owned mines (Fox Complex and Gold Bar) generated a cash gross profit of $19.2 million in 2022 and a gross loss of $0.5 million.
McEwen Mining also reported a consolidated net loss of $81.1 million in 2022 (2021 – net loss of $56.7 million), or $1.71 per share, which relates primarily to investment of $81.7 million in advanced projects and exploration (including 100% of Los Azules expenses) offset by a gain of $19.8 million on foreign exchange transactions, general and administrative costs of $11.9 million, tax expenses of $5.8 million, and a gross loss of $0.5 million from its operations.
The company noted it continued to “invest aggressively” in exploration, completing 181,100 feet (55,200 meters) of drilling at the Fox Complex, 16,900 feet (5,200 meters) of drilling at the Gold Bar Mine, and 73,500 feet (22,400 meters) at the Los Azules project.
For 2023, the company’s production guidance is 150,000 to 170,000 GEOs.
Chairman and Chief Owner Rob McEwen commented, “2022 was an important transition year for McEwen Mining. Our Fox operation in Timmins showed the largest improvement from 2021, with a 22% increase in gold production, 8% lower cash costs per ounce and steady all-in sustaining costs per ounce. Our operation in Nevada has now transitioned production to our Gold Bar South pit, a new mining contractor has been instated, and production is increasing.”
“Our McEwen Copper subsidiary reached several milestones during 2022 and early 2023, including, building a seasoned Argentine management team, improving critical access to Los Azules with the completion of a second route to site, advancing technical studies, cementing our commitments to government and local stakeholders, and welcoming two strategic investors: Nuton (a Rio Tinto Venture and part of the world’s 2nd largest mining company) and Stellantis, the world’s 4th largest automobile manufacturer and mobility provider,” he added.
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 52% of McEwen Copper which owns the large, advanced stage Los Azules copper project in Argentina. The company indicated that its goal is to improve the productivity and life of its assets with the objective of increasing its share price and providing a yield.
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