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  • McEwen Mining Posts 1Q Profit; El Gallo 1 Nearing High-Grade Zone – McEwen President MUX TNR.v 0 comments
    May 9, 2014 8:47 AM | about stocks: ABX, TRRXF, MUX, GDX, GG, GLD, SLV, NEM, RGLD, AUY, SLW, FCX, RIO, BHP, TCK, VALE, SSRI, PAAS, NG, KGC, EGO, GDXJ, FXI, CU, BVN, PPP, GORO, ASM, HL, AEM, CDE, IAG, HDB

    TNR Gold And McEwen Mining: Argentina's Caem Optimistic Over Pascua Lama Future TNR.v MUX ABX GDX


    "Argentina slowly comes to its senses and welcomes mining business back these days. Argentinian government is negotiating with Chile the ways to bring development of Pascua Lama back on track and China is already waiting for it, according to some rumours. Captains of the mining industry are allocating new investments in mining projects in Argentina and Yamana Gold has announced that it will focus on its Cerro Moro Gold and Silver project in Argentina along with Canada Assets.

    Los Azules Copper is waiting for its hour to come into the industry spotlight and Pascua Lama development will do the trick. Both projects are located in the same San Juan province in Argentina. Shareholders of TNR Gold and McEwen Mining finally will be rewarded for their patience one day. And now this day is coming closer with every positive development in Argentina."

     

    TNR Gold And McEwen Mining: Chinalco Mining Sets Sights On Copper Projects in Latin America TNR.v MUX FCX NEM ABX


    "CS. With Las Bambas deal secured in Chinese hands and Pascua Lama and CITIC rumours still circling in the industry, another industrial group from China is searching the Globe for the best Copper projects left. We have discussed before, that M&A activity in this case signifies the very important bottom in the mining cycle. Barrick Gold talks with Newmont Mining in Gold and Las Bambas purchase by Minmetals Group in Copper.

    Western Central Banks are anxious with "the lack of Inflation" - all "official" Inflation measures in US (if you are not eating, paying insurance or rent) are dangerously low, if you consider the unprecedented amount of the freshly printed money in the system. ECB is talking about the new "whatever-it-takes" war on Deflation and Copper is sensing the upcoming change already. Prices of Copper are up last week.

    With this report from China Los Azules Copper is very well positioned to bring the Catalyst to TNR Gold and McEwen Mining. Rob McEwen is talking about it as "One of the best Copper projects in the world" and industry's M&A activity will bring it on the investors radar screens again."

    Kitco:

    McEwen Mining Posts 1Q Profit; El Gallo 1 Nearing High-Grade Zone - McEwen President

    By Alex Létourneau of Kitco News
    Thursday May 8, 2014 11:45 AM

    (Kitco News) - McEwen Mining Inc. (TSX:MUX)(NYSE:MUX) returned to first-quarter profit with net income of $17.9 million, or 6 cents per share, compared to a loss of $11.0 million, or 4 cents per share, in last year's 2013 first-quarter results.

    The jump in net income was largely due to a $24.7 million gain due to the recovery of deferred income taxes relating to the decline in the Argentine peso relative to the U.S. dollar, the company said. Adjusted net loss for the first-quarter was $6.2 million, or 2 cents per share, when removing the deferred income tax.

    Gold equivalent production totaled 32,146 ounces, from 20,062 gold ounces and 725,025 silver ounces, a 14% increase year-on-year. Production was lower than the previous quarter due to fewer days in the quarter and traditional ramp-up in Argentina after year-end holidays.

    "We expect higher production to come in the second quarter, versus the first quarter, and we expect our strongest quarters to come in the third and fourth quarters, as we will benefit from the full expansion at El Gallo 1," said Ian Ball, president of McEwen Mining, during the company's earnings telephone conference.

    "Regarding the El Gallo 1 expansion, it is complete and commissioning began last week," Ball said. "We expect our first ounces to be poured from the expanded capacity by the middle of May. Final costs were under budget and we're two months ahead of schedule."

    Ball also said that high-grade zones were within reach in the coming quarters.

    "In terms of mining, we're about two and a half quarters away from the high grades at El Gallo 1," Ball said. "This is over 2 gram material that we'll see deeper in the pit. This will increase production from 37,500 ounces this year to 75,000 ounces next year.

    "At $1,300 gold, we expect El Gallo 1 to generate about $35 million in free cash flow once we encounter this higher-grade material," he said

    Once the high-grade material enters production, Ball said that all-in sustaining costs would drop to $850 an ounce.

    Total cash costs in the first quarter totaled $790 per ounce, a 21% decrease year-on-year, while all-in sustaining costs were lower at $1,100 per gold equivalent ounce, down 37% year-on-year. The company said costs were lower versus the two comparable quarters due to the devaluation of the Argentine peso and less mine site exploration and mine development.

    Earnings from mining operationsduring the first quarter totaled $11.4 million, a rise from $7.0 million in 2013's first quarter due to a higher number of ounces sold from the San José mine, as well as lower costs due to the devaluation of the Argentine peso.

    McEwen Mining reaffirmed its full-year production guidance of 135,000 to 140,000 gold equivalent ounces.

    The company also underlined its new reserve and resource estimate for the San José mine, located in Argentina. The estimate increased the size of the proven and probable reserve by 12%, gold grades by 9% and silver grades by 10%, confirming San José as one of the highest-grade precious metal mines in the Americas, the company said.

    By Alex Létourneau of Kitco News aletourneau@kitco.com
    Follow Alex Letourneau @alex_letourneau"

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