McEwen Mining Inc. (
Strong Balance Sheet
We have cash and bullion of approximately $57 million, and remain debt free. Our balance sheet continues to strengthen with the higher gold and silver prices. This positive impact is reflected in our net sales, our bullion inventory and increased dividends received from the San José Mine. During Q2, we purchased for $5.25 million the existing NSR royalty on our El Gallo property, which includes both the El Gallo Mine and our permitted silver project. In addition, we currently hold in excess of $4 million in marketable securities as investments.
"We have strived to ensure that our share owners enjoy the full benefit of higher gold, silver and copper prices. We have not sold any royalties or metal streams and we do not hedge our precious metal sales. I am pleased with our progress of building a strong balance sheet, which will allow us to fund the future development of our Gold Bar mine and El Gallo Silver mine with reduced financing requirements," stated Rob McEwen, Chairman and Chief Owner.
El Gallo Mine, Mexico (100%)
The El Gallo Mine continued to deliver solid results in Q2, producing 15,640 gold equivalent ounces, compared to 17,325 gold equivalent ounces during the same period in 2015. Production in Q2 was lower than the prior quarter due to lower ore grades, as we previously forecast (2.3 gpt in Q2 2016 vs. 3.6 gpt in Q1 2016). Our full year guidance for El Gallo remains 55,000 gold equivalent ounces; as such, the rate of production will be reduced in the second half of the year. The 2016 exploration budget for Mexico is $4 million, focusing on drilling and ground geophysics on several priority targets.
San José Mine, Argentina (49%)
The San José Mine increased production 10% quarter-over-quarter. Our attributable production from San José in Q2 was 12,352 gold ounces and 867,191 silver ounces, for a total of 23,915 gold equivalent ounces. Full year production guidance for San José in 2016 is 45,000 gold ounces and 3.3 million silver ounces, for a total of 89,000 gold equivalent ounces attributable to us. The 2016 exploration budget at San José on a 100% basis has been increased to $6.5 million.
Redemption of Exchangeable Shares
At our Annual Meeting held on June 6, 2016 shareholders of the outstanding shares of McEwen Mining - Minera Andes Acquisition Corp. (
Financial Results
Operating costs for the quarter ended June 30, 2016 will be released with our Quarterly Financial Statements in early August.
About McEwen Mining Inc
McEwen Mining (NYSE:MUX) (TSE:MUX) has the goal to qualify for inclusion in the S&P 500 Index by creating a profitable gold and silver producer focused in the Americas. McEwen's principal assets consist of: the San José mine in Santa Cruz, Argentina (49% interest); the Black Fox mine in Timmins, Canada; the Fenix Project in Mexico; the Gold Bar mine in Nevada, currently under construction; and the large Los Azules copper project in Argentina, advancing towards development.
McEwen has approximately 345 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns roughly 23% of the shares.
Contact
Mihaela IancuInvestor Relations
Phone: +647-258-0395 ext 320
Email: info@mcewenmining.com
Christina McCarthy
Director of Corporate Development
Phone: +647-258-0395 ext 390
Email: corporatedevelopment@mcewenmining.com
http://www.mcewenmining.com
Related Companies
Related Industry Topics: