McEwen Mining (MUX) AI Stock Analysis

• Market Cap: $359.74M
• Dividend Yield: N/A
• Average Volume (3M): 889.80K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.29
• Revenue Growth: 4.96%
• EPS Growth: -182.95%
• Country: US
• Employees: 1,864
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Other Precious Metals
• EPS (TTM): -0.87
• Shares Outstanding: 53,934,510
• 10 Day Avg. Volume: 779,633
• 30 Day Avg. Volume: 889,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.36
• Price to Cash Flow (P/CF): -85.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.69
• Price Target Upside: 101.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

McEwen Mining's overall score is influenced by ongoing financial challenges, reflected in negative profitability metrics and valuation concerns. However, improvements in cash flow and strategic developments, particularly in the Los Azules project, offer potential growth avenues. Technical analysis shows balanced momentum with some resistance, suggesting caution but also opportunity for investors considering the company's strategic initiatives.

Positive Factors

Earnings

The company managed to increase its gross profit significantly, comparing favorably with the previous year.

Market Position

McEwen Mining is well-positioned to capitalize on record-high gold prices and maintain strong cash flow from operations.

Negative Factors

Production Issues

The firm produced only 30,150 GEOs at the Fox Complex, which came in somewhat below annual guidance following a stope failure.

Revenue Decrease

The notable decrease in revenue was primarily based on lower production from Gold Bar and the Fox Complex.

McEwen Mining Business Overview & Revenue Model

Company Description

McEwen Mining Inc. (MUX) is a diversified gold and silver producer engaged in the exploration, development, and production of precious metals in the Americas. The company operates through multiple segments including the production of gold and silver, as well as the exploration and development of copper resources. McEwen Mining's principal assets include the El Gallo Project in Mexico, the San José Mine in Argentina, the Black Fox Mine in Canada, and the Los Azules copper project in Argentina. The company's mission is to increase its asset base, production, and shareholder value through strategic acquisitions and efficient operation of its mining assets.

How the Company Makes Money

McEwen Mining generates revenue primarily through the sale of gold and silver produced from its mining operations. The company operates mines in several countries, extracting these precious metals and selling them on the open market. The revenue streams from these operations are dependent on the production volume and market prices of gold and silver. Additionally, McEwen Mining is involved in the exploration and development of copper resources, which could contribute to future revenue streams. The company's earnings are influenced by factors such as operational efficiency, commodity prices, and geopolitical conditions affecting its mining locations. Strategic partnerships, such as joint ventures, and acquisitions also play a role in enhancing its revenue-generating capabilities.

McEwen Mining Financial Statement Overview

Summary

McEwen Mining's financial performance shows mixed signals. The income statement highlights revenue challenges and negative margins, while the balance sheet reveals low leverage and some stability. Cash flow improvements are notable but free cash flow remains negative, indicating ongoing financial challenges.

Income Statement

McEwen Mining has shown inconsistent revenue growth, with total revenue increasing from the previous year but declining over a longer period. The gross profit margin improved but remains low, and the company has negative net and EBIT margins, highlighting ongoing profitability challenges. While EBITDA is positive, it indicates limited operational efficiency improvements.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, equity ratio improvements suggest better asset utilization, despite historical fluctuations. The return on equity remains negative, reflecting profitability struggles, though the solid equity base provides some financial stability.

Cash Flow

Operating cash flow has turned positive, a notable improvement, but free cash flow remains negative, indicating ongoing cash outflows despite reduced capital expenditures. The operating cash flow to net income ratio is favorable, suggesting better cash generation from operations, though free cash flow needs further improvement for financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
174.48M	166.23M	110.42M	136.54M	104.79M
	Gross Profit
30.93M	-35.64M	-544.00K	-6.48M	-26.95M
	EBIT
-50.57M	-162.06M	-95.44M	-64.28M	-153.17M
	EBITDA
18.25M	-71.41M	-48.72M	-30.41M	-121.18M
	Net Income Common Stockholders
-43.69M	55.30M	-86.09M	-56.88M	-152.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.31M	24.76M	40.91M	56.09M	20.84M
	Total Assets
664.62M	657.24M	528.72M	525.34M	499.94M
	Total Debt
788.00K	41.47M	66.39M	53.28M	53.66M
	Net Debt
-12.90M	18.45M	26.60M	-1.00M	32.81M
	Total Liabilities
169.65M	154.82M	172.44M	135.40M	134.61M
	Stockholders Equity
494.98M	502.42M	322.81M	375.16M	365.33M
Cash Flow		Free Cash Flow
-13.64M	-65.74M	-82.80M	-55.11M	-41.25M
	Operating Cash Flow
29.45M	-39.64M	-58.61M	-20.22M	-27.87M
	Investing Cash Flow
-58.05M	-99.64M	-23.90M	-24.56M	-11.77M
	Financing Cash Flow
19.20M	172.18M	65.45M	80.98M	17.58M

McEwen Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUX, the sentiment is Negative. The current price of 7.29 is below the 20-day moving average (MA) of 7.57, below the 50-day MA of 7.56, and below the 200-day MA of 8.68, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 24.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MUX.

McEwen Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMY	76 Outperform	$8.27B	13.87	25.19%	0.81%	20.35%	20.44%
NGD	73 Outperform	$3.37B	24.28	11.14%	―	18.32%	―
CDE	70 Outperform	$3.57B	38.78	5.49%	―	27.30%	―
EDR	54 Neutral	$1.23B	―	-7.23%	―	6.18%	-515.57%
MUX	51 Neutral	$359.74M	3.61	-8.76%	―	4.96%	-182.95%
AG	51 Neutral	$3.75B	―	-7.52%	0.35%	-0.64%	28.24%
Sector *	47 Neutral	$2.43B	-2.83	-21.76%	3.74%	4.16%	-28.82%

McEwen Mining Corporate Events

McEwen Mining Amends Credit Agreement and Plans Note Offering

On January 31, 2025, McEwen Mining Inc. amended its credit agreement, extending its maturity date to August 31, 2028, and allowing the issuance of up to $110 million in unsecured convertible senior notes due 2030. The company plans to use the proceeds from this offering to cover capped call transactions, repay $20 million of its existing credit agreement, and for general corporate purposes. Additionally, McEwen Mining faces potential impacts from recently announced tariffs on imports from Mexico and Canada, which could increase operational costs and affect competitiveness.

McEwen Mining Aligns 2024 Production with Guidance

On January 28, 2025, McEwen Mining reported its 2024 production results, achieving 135,900 Gold Equivalent Ounces (GEOs), which aligns with their guidance. For 2025, the company expects production between 120,000 and 140,000 GEOs, with operations at the Gold Bar and Fox Complex mines undergoing strategic developments and transitions. These plans are anticipated to impact production timing and costs, with specific investments like ramp development at Fox and waste stripping at Gold Bar aimed at enhancing future productivity.

McEwen Mining Highlights Copper Strategy at Conference

On January 16, 2025, McEwen Mining Inc. presented at the Futures Minerals Conference, sharing updates on its operations, assets, and strategic plans. This presentation underscored the company’s alignment with shareholder interests and highlighted its focus on leveraging copper’s market potential amidst a looming supply deficit, which could impact its industry position and stakeholder value.