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Mcewen Mining Inc (MUX)
NYSE:MUX
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McEwen Mining
(NYSE:MUX)
Rating:60Neutral
Price Target:
$11.50
▲(4.36%Upside)
Positive Factors
Financial Performance
The company managed to increase its gross profit significantly, comparing favorably with the previous year.
Growth Strategy
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 Issues
The firm produced only 30,150 GEOs at the Fox Complex, which came in somewhat below annual guidance following a stope failure.
Production Challenges
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 (MUX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$587.93M
Dividend YieldN/A
Average Volume (3M)898.40K
Price to Earnings (P/E)3.6
Beta (1Y)1.16
Revenue Growth-2.18%
EPS Growth-137.21%
CountryUS
Employees1,864
SectorBasic Materials
Sector Strength63
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.07
Shares Outstanding53,987,670
10 Day Avg. Volume999,323
30 Day Avg. Volume898,405
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.22
Price to Sales (P/S)0.00
P/FCF Ratio-20.11
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit18.69
Enterprise Value/Ebitda9.34
Forecast
1Y Price Target
$14.98Price Target Upside35.93% 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 with operations in the Americas. The company is engaged in the exploration, development, and production of precious metals, with a focus on delivering sustainable growth and value for its shareholders. McEwen Mining operates mines in the United States, Canada, Mexico, and Argentina, leveraging its expertise in mining to maximize resource extraction and efficiency.
How the Company Makes MoneyMcEwen Mining makes money primarily through the extraction and sale of gold and silver from its mining operations. Revenue is generated from the production and sale of these precious metals, which are sold at market prices. The company operates multiple mines, each contributing to its overall output and revenue. Additionally, McEwen Mining engages in exploration activities to discover new resources, which can enhance future revenue potential. The company may also enter into joint ventures or partnerships to develop new mining projects, share operational costs, and expand its mining footprint, further contributing to its earnings.
McEwen Mining Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 40.74%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive developments, such as increased liquidity, improved financial metrics, and strategic advances in production capabilities, alongside challenges like high costs at Gold Bar and operational setbacks at the Fox Complex. While the highlights indicate a promising outlook, the presence of significant operational and financial challenges balances the sentiment.Q1-2025 Updates
Positive Updates
Increased Liquidity and Financial Instruments
The company increased its liquidity using a capped call convertible note, reducing potential share dilution by setting a conversion price at a 100% premium to the share price at the time of the transaction.
Fox Complex and Production Projections
Development of the Fox Complex is expected to increase consolidated annual production by over 80% by 2030, reaching 225,000 to 255,000 ounces.
Gold Bar Production and Cost Efficiency
Gold Bar produced 10% more gold than budgeted at a cash cost 24% below the low end of the annual guidance.
Improved Financial Metrics
Gross profit increased by 68% to $10.1 million, adjusted EBITDA rose by 38% to $8.7 million, cash and cash equivalents grew to $68.5 million from $17.5 million, and consolidated working capital improved to $61 million from a negative $6.5 million.
Permit for Stock Mine Expansion
Received a permit to construct a ramp to the underground at the Stock mine, a key element in plans for the Stock complex expansion.
San José Mine Dividend
The company's 49% interest in the San José mine paid a $2.2 million dividend during the quarter, with expectations of more dividends during the year.
Negative Updates
High All-in Sustaining Costs at Gold Bar
Gold Bar's all-in sustaining cost was approximately $2,200 per ounce, a result of accelerating the stripping rate to access a previously uneconomic gold zone.
Fox Complex Operational Challenges
The Fox Complex had a disappointing quarter with production lower than budgeted and costs per ounce higher than budgeted.
McEwen Copper Cash Reserves
McEwen Copper's treasury is below $10 million, which may not be sufficient to complete the feasibility study scheduled for July.
Increased Debt Levels
Total debt increased to $130 million from $40 million, although the cost of debt service improved from 9.75% to 6%.
Company Guidance
During McEwen Mining's First Quarter 2025 conference call, Rob McEwen highlighted several key metrics reflecting the company's financial and operational performance. The company reported a 68% increase in gross profit to $10.1 million and a 38% rise in adjusted EBITDA to $8.7 million compared to Q1 2024. Cash and cash equivalents grew significantly to $68.5 million from $17.5 million, while consolidated working capital improved to $61 million from a negative $6.5 million. Despite a rise in total debt to $130 million from $40 million, the cost of servicing this debt decreased to 6% from 9.75%. The Gold Bar mine exceeded production expectations by 10% and reported a cash cost of $1,146 per ounce, 24% below the low end of guidance. However, its all-in sustaining cost reached $2,200 per ounce due to strategic decisions aimed at long-term cost reductions. The company's Fox Complex experienced operational challenges with higher-than-budgeted costs, but improvements are anticipated for the remainder of the year. Additionally, McEwen Mining's 49% interest in the San José mine resulted in a $2.2 million dividend, with expectations for further dividends throughout 2025.McEwen Mining Financial Statement Overview
Summary
McEwen Mining demonstrates solid asset management with low leverage, but faces significant profitability challenges. Revenues fluctuate, and consistent net losses persist. Positive operating cash flow is overshadowed by high capital expenditures impacting free cash flow negatively.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.45
Neutral
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.60
Neutral
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.50
Neutral
| 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 | 17.78M | -544.00K | -6.48M | -26.95M |
| EBITDA | 18.25M | -73.94M | -78.68M | -32.66M | -123.19M |
| Net Income | -43.69M | 55.30M | -81.08M | -56.71M | -152.32M |
Balance Sheet | |||||
| Total Assets | 664.62M | 657.24M | 528.72M | 525.34M | 499.94M |
| Cash, Cash Equivalents and Short-Term Investments | 14.90M | 24.76M | 40.91M | 56.09M | 20.84M |
| Total Debt | 42.11M | 41.47M | 66.39M | 53.28M | 53.66M |
| 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 | -80.77M | -55.11M | -41.25M |
| Operating Cash Flow | 29.45M | -39.64M | -56.58M | -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
Positive
11.02
Price Trends
9.02
Positive
8.26
Positive
8.51
Positive
Market Momentum
0.58
Positive
66.13
Neutral
60.55
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 11.02 is above the 20-day moving average (MA) of 10.25, above the 50-day MA of 9.02, and above the 200-day MA of 8.51, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 60.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MUX.
McEwen Mining Risk Analysis
McEwen Mining disclosed 48 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.21B | 8.65 | 14.84% | 3.56% | 37.32% | 2749.92% | |
69 Neutral | $6.03B | 32.28 | 6.44% | ― | 41.79% | ― | |
66 Neutral | $3.86B | 55.00 | 3.49% | 0.24% | 41.04% | ― | |
62 Neutral | $10.15B | 9.72 | 0.09% | 2.91% | 2.26% | -33.42% | |
60 Neutral | $587.93M | 3.61 | -6.15% | ― | -2.18% | -137.21% | |
53 Neutral | $1.59B | ― | -22.84% | ― | ― | 25.69% | |
33 Underperform | $109.45M | ― | -122.00% | ― | ― | 9.66% |
* Basic Materials Sector Average
Performance Comparison
MUX
McEwen Mining
11.02
1.05
10.53%
CDE
Coeur Mining
9.13
2.60
39.82%
BVN
Compania de Minas Buenaventura SAA
16.38
-0.32
-1.92%
HL
Hecla Mining Company
6.02
-0.09
-1.47%
PPTA
Perpetua Resources
15.45
8.85
134.09%
USGO
U.S. GoldMining Inc.
8.78
2.67
43.70%
McEwen Mining Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
McEwen Mining Rebrands to McEwen Inc.
Neutral
Jul 10, 2025
On July 7, 2025, McEwen Mining Inc. officially changed its name to McEwen Inc. by filing the necessary documentation with the Secretary of State of Colorado. This name change marks a significant milestone in the company’s evolution, potentially impacting its brand identity and market perception.
The most recent analyst rating on (MUX) stock is a Buy with a $14.50 price target. To see the full list of analyst forecasts on McEwen Mining stock, see the MUX Stock Forecast page.
Executive/Board ChangesPrivate Placements and Financing
McEwen Mining Issues Restricted Stock Units to Executives
Neutral
Jul 3, 2025
On June 27, 2025, McEwen Copper Inc., in which McEwen Mining Inc. holds a 46.4% equity interest, secured a $25 million non-revolving term loan through a Loan Agreement with Evanachan Limited and other lenders. This loan, which bears a 12% annual interest rate, is intended for general working capital and funding feasibility study costs, with a maturity date set for June 27, 2026. Additionally, on June 29, 2025, McEwen Mining issued restricted stock units and shares of restricted common stock to its executive officers under its 2024 Equity and Incentive Plan, with vesting periods subject to time-based restrictions and potential acceleration in certain circumstances.
The most recent analyst rating on (MUX) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on McEwen Mining stock, see the MUX Stock Forecast page.
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
McEwen Mining Shareholders Approve Name Change and Governance
Neutral
Jun 25, 2025
On June 19, 2025, McEwen Mining Inc. held its annual meeting where shareholders approved a name change to McEwen Inc., effective July 7, 2025. The meeting also saw the election of eleven directors, approval of executive compensation, and ratification of Ernst & Young LLP as the independent auditor for the year 2025. These decisions reflect strategic moves to streamline the company’s identity and governance, potentially impacting its market positioning and operational focus.
The most recent analyst rating on (MUX) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on McEwen Mining stock, see the MUX Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.