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McEwen Mining Inc (MUX)
:MUX
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McEwen Mining
(NYSE:MUX)69Neutral
Positive Factors
Earnings
The company recorded $52.3M in revenue and incurred a net loss of $2.1M, which compares quite favorably to 3Q23 revenue of $38.4M and a net loss of $18.5M.
Operations
Operations at Gold Bar and San José slightly exceeded the top end of the assets' respective guidance.
Negative Factors
Production
The Fox Complex produced only 7,855 gold equivalent ounces due to a stope failure, which led to reduced stope availability and ultimately lower mined and milled gold grades.
McEwen Mining (MUX) vs. S&P 500 (SPY)
Market Cap
$350.89M
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)3.2
Beta (1Y)1.57
Revenue Growth47.02%
EPS GrowthN/A
CountryUS
Employees575
SectorBasic Materials
Sector Strength56
IndustryMining
Share Statistics
EPS (TTM)2.09
Shares Outstanding52,924,820
10 Day Avg. Volume726,834
30 Day Avg. Volume1,117,212
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.77
Price to Cash Flow (P/CF)3.80
P/FCF Ratio15.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.81Price Target Upside123.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
McEwen Mining Business Overview & Revenue Model
Company DescriptionMcEwen Mining Inc. (MUX) is a diversified gold and silver producer focused on the exploration, development, and production of precious metals. The company operates in several key mining regions across the Americas, including the United States, Canada, Mexico, and Argentina. McEwen Mining is primarily involved in the extraction and sale of gold and silver, with additional interests in copper projects. With a commitment to responsible mining practices, the company aims to create value for its shareholders through efficient operations and strategic growth initiatives.
How the Company Makes MoneyMcEwen Mining Inc. generates revenue primarily through the sale of gold and silver produced from its mining operations. The company owns and operates several mines, including the Fox Complex in Canada, the Gold Bar mine in Nevada, USA, and the San José mine in Argentina. These operations produce gold and silver, which are sold in the open market at prevailing market prices. In addition to these core mining activities, McEwen Mining also explores and develops copper projects, which may contribute to future revenue streams. The company's financial performance is influenced by factors such as commodity prices, operational efficiency, and production levels. Partnerships with other mining entities and stakeholders, along with a focus on cost-effective production, further support its revenue generation capabilities.
McEwen Mining Financial Statement Overview
Summary
McEwen Mining shows a marked improvement in financial health, with a positive net income and cash flow metrics in the TTM. The company has increased profitability, with substantial revenue growth, but faces challenges such as a negative EBIT margin and limited asset growth.Income Statement
The income statement exhibits significant improvements in profitability metrics, with a positive net income in the TTM (Trailing-Twelve-Months) period, indicating recovery from previous losses. The gross profit margin improved to 14.89%, and net profit margin is a robust 51.58% in the TTM, reflecting strong operational efficiency. However, EBIT margin remains negative, indicating some ongoing operational challenges. Revenue growth is substantial at 20.10% compared to the previous annual period, suggesting positive momentum.65
Positive
Balance Sheet
The balance sheet is solid with a debt-to-equity ratio of 0.08, indicating low leverage and financial stability. The equity ratio is strong at 75.23%, showing a healthy proportion of equity financing. Return on equity is high at 20.51% in the TTM, driven by net income growth. However, total assets have only marginally increased, indicating limited expansion in asset base.70
Positive
Cash Flow
Cash flow analysis shows positive developments with a return to positive free cash flow in the TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.46, suggesting effective conversion of earnings to cash. Free cash flow to net income ratio is 0.09, indicating some inefficiencies in free cash flow generation relative to net income. Nonetheless, there is a notable turnaround from negative cash flow in previous periods.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 199.63M | 166.23M | 110.42M | 136.54M | 104.79M | 117.02M | Gross Profit |
| 29.72M | -35.64M | -544.00K | -6.48M | -26.95M | 8.99M | EBIT |
| -765.00K | -162.06M | -95.44M | -64.28M | -153.17M | -55.16M | EBITDA |
| 28.23M | -71.41M | -48.72M | -30.41M | -121.18M | -27.92M | Net Income Common Stockholders |
| 102.99M | 55.30M | -86.09M | -56.88M | -152.32M | -59.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 24.76M | 24.76M | 40.91M | 56.09M | 20.84M | 48.34M | Total Assets |
| 657.24M | 657.24M | 528.72M | 525.34M | 499.94M | 631.22M | Total Debt |
| 41.47M | 41.47M | 66.39M | 53.28M | 53.66M | 56.65M | Net Debt |
| 18.45M | 18.45M | 26.60M | -1.00M | 32.81M | 10.20M | Total Liabilities |
| 154.82M | 154.82M | 172.44M | 135.40M | 134.61M | 131.74M | Stockholders Equity |
| 502.42M | 502.42M | 322.81M | 375.16M | 365.33M | 499.48M |
| Cash Flow | Free Cash Flow | ||||
| 8.90M | -65.74M | -82.80M | -55.11M | -41.25M | -69.23M | Operating Cash Flow |
| 47.07M | -39.64M | -58.61M | -20.22M | -27.87M | -39.53M | Investing Cash Flow |
| -92.89M | -99.64M | -23.90M | -24.56M | -11.77M | -14.06M | Financing Cash Flow |
| 32.84M | 172.18M | 65.45M | 80.98M | 17.58M | 70.01M |
McEwen Mining Technical Analysis
Negative
6.63
Price Trends
7.88
Negative
8.55
Negative
9.12
Negative
Market Momentum
-0.37
Positive
31.49
Neutral
13.29
Positive
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 6.63 is below the 20-day moving average (MA) of 7.47, below the 50-day MA of 7.88, and below the 200-day MA of 9.12, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 31.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MUX.
McEwen Mining Risk Analysis
McEwen Mining disclosed 47 risk factors in its most recent earnings report. McEwen Mining reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
McEwen Mining Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.09B | 13.43 | 21.06% | 1.05% | 20.46% | 69.72% | |
69 Neutral | $350.89M | 3.18 | 20.51% | ― | 47.02% | ― | |
68 Neutral | $3.08B | 22.11 | 9.75% | ― | 18.32% | ― | |
65 Neutral | $3.30B | 35.93 | 2.72% | ― | 27.30% | ― | |
54 Neutral | $1.31B | ― | -7.13% | ― | -4.65% | -304.16% | |
53 Neutral | $3.76B | ― | -5.68% | 0.36% | -9.39% | 54.38% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
MUX
McEwen Mining
6.63
-1.28
-16.18%
CDE
Coeur Mining
5.17
2.10
68.40%
HMY
Harmony Gold Mining
10.51
3.53
50.57%
TSE:AG
First Majestic Silver
7.78
0.92
13.38%
TSE:NGD
New Gold
3.89
1.89
94.50%
TSE:EDR
Endeavour Silver
5.21
2.70
107.57%
McEwen Mining Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -8.04% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call exhibited strong revenue and profit growth and strategic investments positioning for future success, particularly with McEwen Copper. However, challenges remain with current net losses, cost management, and production issues at certain sites. The sentiment is cautiously optimistic with clear upsides anticipated from strategic projects.Highlights
Significant Revenue and Profit Growth
Revenue increased by 36%, gross profit up by 268%, and adjusted EBITDA rose by 586% compared to Q3 2023. Operating cash flow improved to $23 million from a negative $2.3 million the previous year.
Strong Safety Record
Achieved 54 months without a lost time accident at Gold Bar, 33 months at the Fox Complex, and 1.3 million man-hours at McEwen Copper Los Azules without a lost time accident.
Strategic Investments and Acquisitions
Invested $5.3 million in exploration at Fox and Gold Bar mines, and $6.1 million at Los Azules. Acquired Timberline Resources in Nevada to extend the life of Gold Bar mine.
Progress in McEwen Copper
Raised $56 million last quarter for Los Azules, completed several technical studies for feasibility, and planning an IPO for McEwen Copper post-feasibility study and environmental permits.
Lowlights
Net Loss Recorded
A net loss of $2.1 million or $0.04 a share was recorded, partly due to strategic exploration expenses.
Lower-than-Expected Grades at San Jose
Temporary lower grades reported at San Jose affecting performance, though improvements were noted in October.
High Costs at Fox Complex
All-in sustaining costs at Fox were higher than projected, reaching $1,953, due to lower production and investments in development work.
Q4 Forecast for Gold Bar
Q4 is expected to be a low production period, with projections around 8,000 to 9,000 ounces.
Company Guidance
During McEwen Mining's Q3 2024 earnings call, Robert McEwen highlighted significant advancements with impressive metrics compared to Q3 2023, including a 36% increase in revenue, a 268% rise in gross profit, and a 586% boost in adjusted EBITDA. Operating cash flow improved markedly to $23 million from a negative $2.3 million the previous year. The company's safety record was also commendable, with Gold Bar achieving 54 months without a lost time accident, Fox Complex 33 months, and McEwen Copper's Los Azules project reaching 1.3 million man-hours without incidents. Exploration expenditures amounted to $5.3 million at the Fox and Gold Bar mines and $6.1 million at Los Azules, contributing to a net loss of $2.1 million or $0.04 per share. Notably, McEwen Copper raised $56 million privately for Los Azules, aiming to complete the feasibility study and environmental permit by the first half of 2025, signaling plans for an IPO. The company has privately raised over $470 million for Los Azules, with the latest financing implying a market value of $984 million for McEwen Mining.McEwen Mining Corporate Events
Business Operations and Strategy
McEwen Mining Highlights Copper Strategy at Conference
Positive
Jan 15, 2025
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.
Business Operations and Strategy
McEwen Mining’s Los Azules Project Gains Key Approval
Positive
Dec 5, 2024
McEwen Copper Inc., a subsidiary of McEwen Mining, has received approval for the Environmental Impact Assessment of its Los Azules copper project in San Juan, Argentina. This milestone supports the project’s sustainable development, emphasizing renewable energy and low carbon emissions. With construction anticipated to start in 2026, Los Azules aims to become a leader in producing low-carbon copper, enhancing McEwen Copper’s role in the global energy transition.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.