Seeking Alpha

McEwen Mining -12%, says holding back production on second Mexico mine

  • McEwen Mining (MUX -12.2%) CEO Rob McEwen says the company is holding back production for its second Mexico mine that just received permitting, preferring to wait for higher silver prices.
  • McEwen says the 12% increase in gold and silver reserves at MUX's San Jose mine in Argentina is a result of more spending on exploration.
Comments (19)
  • Derrick Lilly
    , contributor
    Comments (240) | Send Message
     
    Strange, I thought investors would applaud some fiscal responsibility in the mining space.
    17 Mar 2014, 04:56 PM Reply Like
  • Rinascimento
    , contributor
    Comments (1119) | Send Message
     
    I agree with you and this was announced last week too
    17 Mar 2014, 06:28 PM Reply Like
  • SoilFarmer
    , contributor
    Comments (7) | Send Message
     
    Good call Rob, hold out a bit longer.
    17 Mar 2014, 07:17 PM Reply Like
  • bendeguz
    , contributor
    Comments (3) | Send Message
     
    This news made me buy MUX. I'm on board!
    17 Mar 2014, 09:20 PM Reply Like
  • DDDurbin
    , contributor
    Comments (3) | Send Message
     
    Sometimes all they need is an excuse to sell. This stock has had a nice run up. Might be a good time to buy the dip.
    17 Mar 2014, 09:23 PM Reply Like
  • DDDurbin
    , contributor
    Comments (3) | Send Message
     
    Sometimes all they need is an excuse to sell. The stock has had a nice run up recently. Might be a good oppurtunity to buy in.
    17 Mar 2014, 09:23 PM Reply Like
  • mjrcme
    , contributor
    Comments (83) | Send Message
     
    I'm buying this dip. Good Luck Rob McEwen !!
    18 Mar 2014, 02:21 AM Reply Like
  • Sufiy
    , contributor
    Comments (422) | Send Message
     
    Copper M&A: Glencore Xstrata Close to Sale of Its Las Bambas Peruvian Copper Project MUX TNR.v LCC.v

     

    According to the report China is closing the next mega deal in the resource sector in order to secure the supply of strategic commodities. This time it is copper. Another Chinese company - China National Gold is reported to be in talks with Ivanhoe on DRC Copper mine. We guess that the end of the world will be postponed again and China is using any opportunity to buy the real assets at the cheapest price possible. China is executing the state-level plan to diversify its reserves out of US Dollar and is buying assets in Gold, Copper and Lithium. We have mentioned before the rumours about Barrick Gold being in talks over its huge Pascua Lama with CITIC from China and are monitoring the sector for the conformation.

     

    Rumour Mill: "CITIC Buying Into Pascua Lama" - Can Argentina Mining Really Make Its Come Back? TNR.v MUX ABX LCC.v

     

    http://bit.ly/1l051F0#
    18 Mar 2014, 09:32 AM Reply Like
  • TJI
    , contributor
    Comments (7) | Send Message
     
    I too like the conservative approach... was loving last weeks gains, still on board!
    18 Mar 2014, 11:46 AM Reply Like
  • scoopdream
    , contributor
    Comments (20) | Send Message
     
    Yeah...he's predicting gold to go to $5,000 an ounce...then the price of gold will be as big as his ego.
    18 Mar 2014, 01:18 PM Reply Like
  • bendeguz
    , contributor
    Comments (3) | Send Message
     
    Last time I heard "over 2000". That is a possibility, 5000 seems like a dream/nightmare?
    18 Mar 2014, 05:26 PM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
     
    @scoopdream, Although Rob M. may still stick to $5000 target, I haven't seen or heard him use this number since early 2013. Based on MUX using $1200 for resource estimate and the decision to wait instead of developing the mine means they aren't acting as if $5000 is a done deal.

     

    Him believing in $5000, is likely the reason he doesn't want to dilute existing shareholders (himself included) via equity or NSRs.
    19 Mar 2014, 10:45 AM Reply Like
  • Derrick Lilly
    , contributor
    Comments (240) | Send Message
     
    El Gallo 2 needs to achieve an IRR of 24% or higher for it to really be worthwhile to them; that's why they are waiting for higher silver prices. At current prices, IRR would hardly break into double digits.
    19 Mar 2014, 10:53 AM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
     
    @Derrick, good call. That's a silver play and Rob said it's no problem at $25 silver to fund it but at $20 it is too questionable at this point especially with large capital outlay.
    19 Mar 2014, 12:56 PM Reply Like
  • scoopdream
    , contributor
    Comments (20) | Send Message
     
    Rob and other board members still sing the $5,000 per ounce gold; need a high tone voice to hit those high-hype notes. Nevada was suppose to be their big gold deal; picked a dog; and changed their name...now it's silver and copper in adios land.
    23 Mar 2014, 11:51 AM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
     
    I am not sure how much you listen to their conference calls but I disagree with your assertion scoopdream that they are running the mines as if 5000 USD gold will happen.
    24 Mar 2014, 06:54 AM Reply Like
  • Derrick Lilly
    , contributor
    Comments (240) | Send Message
     
    He doesn't listen, because if he did, he would realize that the Nevada drill hole that came up a dud was a JV exploration project entirely separate from their Nevada Gold Bar project that will go into production in the future.
    24 Mar 2014, 11:58 AM Reply Like
  • scoopdream
    , contributor
    Comments (20) | Send Message
     
    They can't post earnings based on their hype; but they can certainly run their company that way.
    24 Mar 2014, 11:09 AM Reply Like
  • scoopdream
    , contributor
    Comments (20) | Send Message
     
    I've followed this company since 2005 MUX is only down 27% in past 5 trading days....more to go.
    25 Mar 2014, 01:06 PM Reply Like
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