McEwen Mining (MUX) AI Stock Analysis

• Market Cap: $506.94M
• Dividend Yield: N/A
• Average Volume (3M): 672.96K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.08
• Revenue Growth: -2.18%
• EPS Growth: -137.21%
• Country: US
• Employees: 1,864
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Other Precious Metals
• EPS (TTM): -0.07
• Shares Outstanding: 53,987,670
• 10 Day Avg. Volume: 877,433
• 30 Day Avg. Volume: 672,960
• PEG Ratio: -0.32
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.64
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 15.73
• Enterprise Value/Ebitda: 6.40
• 1Y Price Target: $13.99
• Price Target Upside: 48.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $9.00 ▼(-4.15%Downside)

McEwen Mining's overall stock score reflects a balance of positive and negative factors. The most significant strength is its solid balance sheet and liquidity improvements. However, ongoing profitability issues and high costs limit the score. Technical analysis shows some bullish momentum, but valuation concerns and operational challenges from the earnings call also weigh on the overall assessment.

Positive Factors

Analyst Rating

Analyst reiterates a Buy rating on McEwen Mining with a target price of $18.

Growth Plan

Significant growth plan centered around Fox Complex aims to increase annual gold production to 60,000 ounces by 2027, with potential to scale up to 120,000 – 150,000 ounces by 2030.

Market Position

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

Negative Factors

Operational Challenges

Fox faced multiple challenges based on limited labor availability and harsh weather conditions.

Production Decline

The firm's YoY revenue decline was primarily driven by lower production, with 24,131 Gold Equivalent Ounces (GEOs) produced during the quarter compared to 33,037 GEOs in 1Q24.

Revenue Decline

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. engages in the exploration, development, production, and sale of gold and silver deposits in the United States, Canada, Mexico, and Argentina. The company also explores for copper deposits. It primarily owns a 100% interest in the Gold Bar mine in Eureka County, Nevada; the Black Fox gold mine in Ontario, Canada; the El Gallo Project and Fenix silver-gold project in Sinaloa, Mexico; the Los Azules copper deposit in San Juan, Argentina; and a portfolio of exploration properties in Nevada, Canada, Mexico, and Argentina. It also owns a 49% interest in the San José mine located in Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was incorporated in 1979 and is headquartered in Toronto, Canada.

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 a mixed picture. While the balance sheet is strong with a solid equity position and low leverage, the income statement reveals significant net losses and operational challenges, despite some positive EBITDA and gross profit margin. Cash flow management reflects positive operating cash flow but negative free cash flow due to high capital expenditures.

Income Statement

McEwen Mining's TTM (Trailing-Twelve-Months) income statement shows fluctuating revenues, with a recent decline compared to the previous year. The gross profit margin is improving at 17.67%, but the company is still facing significant net losses, leading to a negative net profit margin of -18.14%. Despite a positive EBITDA margin of 10.34%, EBIT remains negative, suggesting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a solid equity position, with an equity ratio of 65.66%, indicating financial stability. The debt-to-equity ratio is low at 0.002, reflecting minimal leverage, which reduces financial risk. However, the company has not generated a return on equity due to negative net income. Overall, the balance sheet remains relatively strong despite profitability issues.

Cash Flow

Cash flow management showcases mixed results. The operating cash flow remains positive, yet free cash flow is negative, indicating high capital expenditures. The operating cash flow to net income ratio suggests better cash generation relative to reported earnings, but the free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
168.94M	174.48M	166.23M	110.42M	136.54M	104.79M
	Gross Profit
29.86M	30.93M	17.78M	-544.00K	-6.48M	-26.95M
	EBIT
-33.15M	-50.57M	-162.06M	-95.44M	-64.28M	-153.17M
	EBITDA
20.32M	18.25M	-71.41M	-48.72M	-30.41M	-121.18M
	Net Income Common Stockholders
-29.58M	-43.69M	55.30M	-81.08M	-56.71M	-152.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.25M	15.31M	24.76M	40.91M	56.09M	20.84M
	Total Assets
730.60M	664.62M	657.24M	528.72M	525.34M	499.94M
	Total Debt
766.00K	42.11M	41.47M	66.39M	53.28M	53.66M
	Net Debt
-67.74M	28.42M	18.45M	26.60M	-1.00M	32.81M
	Total Liabilities
250.76M	169.65M	154.82M	172.44M	135.40M	134.61M
	Stockholders Equity
479.84M	494.98M	502.42M	322.81M	375.16M	365.33M
Cash Flow		Free Cash Flow
-29.47M	-13.64M	-65.74M	-82.80M	-55.11M	-41.25M
	Operating Cash Flow
23.64M	29.45M	-39.64M	-58.61M	-20.22M	-27.87M
	Investing Cash Flow
-67.06M	-58.05M	-99.64M	-23.90M	-24.56M	-11.77M
	Financing Cash Flow
89.86M	19.20M	172.18M	65.45M	80.98M	17.58M

McEwen Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUX, the sentiment is Positive. The current price of 9.39 is above the 20-day moving average (MA) of 8.48, above the 50-day MA of 7.93, and above the 200-day MA of 8.38, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 71.33 is Negative, neither overbought nor oversold. The STOCH value of 76.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MUX.

McEwen Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVN	82 Outperform	$3.88B	8.91	14.84%	3.46%	37.32%	2749.92%
HL	72 Outperform	$3.80B	54.10	3.49%	0.25%	41.04%	―
CDE	69 Neutral	$5.92B	32.66	6.44%	―	41.79%	―
MUX	55 Neutral	$506.94M	3.61	-6.15%	―	-2.18%	-137.21%
PPTA	53 Neutral	$918.26M	―	-22.84%	―	―	25.69%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
USGO	33 Underperform	$122.36M	―	-122.00%	―	―	9.66%

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.