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McEwen Mining Inc (MUX)
:MUX
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McEwen Mining
(NYSE:MUX)
50Neutral
Positive Factors
Production Growth Plans
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.
Strategic Expansion
The launch of the Stock mine is expected to offset the natural decline in production as Froome gets closer to the end of its life.
Negative Factors
Operational Challenges
Fox faced multiple challenges based on limited labor availability and harsh weather conditions.
Revenue 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.
McEwen Mining (MUX) vs. S&P 500 (SPY)
Market Cap
$389.25M
Dividend YieldN/A
Average Volume (3M)684.44K
Price to Earnings (P/E)3.6
Beta (1Y)1.28
Revenue Growth-2.18%
EPS Growth-137.21%
CountryUS
Employees1,864
SectorBasic Materials
Sector Strength60
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.07
Shares Outstanding53,987,670
10 Day Avg. Volume675,469
30 Day Avg. Volume684,441
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.80
Price to Sales (P/S)0.00
P/FCF Ratio-29.52
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit20.47
Enterprise Value/Ebitda367.89
Forecast
1Y Price Target
$13.89Price Target Upside97.58% 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 engaged in the exploration, development, and production of precious metals in the Americas. The company operates through multiple segments including the production of gold and silver, as well as the exploration and development of copper resources. McEwen Mining's principal assets include the El Gallo Project in Mexico, the San José Mine in Argentina, the Black Fox Mine in Canada, and the Los Azules copper project in Argentina. The company's mission is to increase its asset base, production, and shareholder value through strategic acquisitions and efficient operation of its mining assets.
How the Company Makes MoneyMcEwen 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 shows signs of operational improvement, particularly in cash flow management, yet profitability and revenue growth remain key challenges. The balance sheet is stable with low leverage, providing a buffer against market volatility. Continued focus on enhancing operational efficiency and profitability is essential for long-term growth.Income Statement
McEwen Mining has shown inconsistent revenue growth, with total revenue increasing from the previous year but declining over a longer period. The gross profit margin improved but remains low, and the company has negative net and EBIT margins, highlighting ongoing profitability challenges. While EBITDA is positive, it indicates limited operational efficiency improvements.42
Neutral
Balance Sheet
The company's balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, equity ratio improvements suggest better asset utilization, despite historical fluctuations. The return on equity remains negative, reflecting profitability struggles, though the solid equity base provides some financial stability.55
Neutral
Cash Flow
Operating cash flow has turned positive, a notable improvement, but free cash flow remains negative, indicating ongoing cash outflows despite reduced capital expenditures. The operating cash flow to net income ratio is favorable, suggesting better cash generation from operations, though free cash flow needs further improvement for financial health.48
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 | -35.64M | -544.00K | -6.48M | -26.95M | EBIT |
| -50.57M | -162.06M | -95.44M | -64.28M | -153.17M | EBITDA |
| 18.25M | -71.41M | -48.72M | -30.41M | -121.18M | Net Income Common Stockholders |
| -43.69M | 55.30M | -86.09M | -56.88M | -152.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.31M | 24.76M | 40.91M | 56.09M | 20.84M | Total Assets |
| 664.62M | 657.24M | 528.72M | 525.34M | 499.94M | Total Debt |
| 42.11M | 41.47M | 66.39M | 53.28M | 53.66M | Net Debt |
| 28.42M | 18.45M | 26.60M | -1.00M | 32.81M | 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 | -82.80M | -55.11M | -41.25M | Operating Cash Flow |
| 29.45M | -39.64M | -58.61M | -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
Negative
7.03
Price Trends
7.59
Negative
7.73
Negative
8.44
Negative
Market Momentum
-0.10
Positive
40.35
Neutral
12.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUX, the sentiment is Negative. The current price of 7.03 is below the 20-day moving average (MA) of 7.66, below the 50-day MA of 7.59, and below the 200-day MA of 8.44, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 12.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.89B | 26.07 | 6.44% | ― | 41.79% | ― | |
75 Outperform | $3.70B | 7.66 | 14.84% | 1.93% | 37.32% | 2749.92% | |
59 Neutral | $3.12B | 44.46 | 3.49% | 0.76% | 41.04% | ― | |
53 Neutral | $839.92M | ― | -22.84% | ― | ― | 25.69% | |
50 Neutral | $389.25M | 3.61 | -6.15% | ― | -2.18% | -137.21% | |
49 Neutral | $1.99B | -1.09 | -21.26% | 3.60% | 1.47% | -31.20% | |
33 Underperform | $127.37M | ― | -101.90% | ― | ― | 9.66% |
* Basic Materials Sector Average
Performance Comparison
MUX
McEwen Mining
7.03
-3.66
-34.24%
CDE
Coeur Mining
7.39
2.10
39.70%
BVN
Compania de Minas Buenaventura SAA
14.22
-2.74
-16.16%
HL
Hecla Mining Company
4.79
-0.76
-13.69%
PPTA
Perpetua Resources
11.51
5.88
104.44%
USGO
U.S. GoldMining Inc.
9.46
3.87
69.23%
McEwen Mining Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -10.22%|
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 Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
McEwen Mining Amends Credit Agreement and Plans Note Offering
Neutral
Feb 6, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.