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McEwen narrows loss, drops certain Nevada exploration properties

8th August 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Copper and gold producer McEwen Mining this week reported a net loss of $14.1-million, or $0.05 a share, for the second quarter ended June, compared with a net loss of $104-million, or $0.35 a share, for the comparable period a year earlier.

The net loss was attributable to an impairment of $28.5-million on certain mineral properties in Nevada, which it decided to drop. After related deferred income-tax recoveries the after-tax impairment was $18.5-million.

The NYSE- and TSX-listed miner, which aimed to qualify for inclusion in the S&P 500, reported adjusted net income, which removed the impact of impairment of mineral properties, foreign exchange fluctuations and income-tax recoveries of $1.8-million, or $0.01 a share. This compared with an adjusted net loss of $8.6-million, or $0.03 a share, during the second quarter of 2014.

The Toronto-headquartered company had record quarterly production of 39 164 oz in gold equivalent and reported cash flow from operations of about $6-million, or $0.02 a share.

The El Gallo mine, in Mexico, was the key performer in the quarter, producing at cash costs and all-in sustaining costs a gold equivalent ounce of $351 and $546, respectively.

As of August 4, the company had cash, cash equivalents and precious metals of $32-million.

McEwen's NYSE-listed stock had lost 32.73% in value since the start of the year, weighted down by lower prices for the precious metals it produced. The stock on Friday closed at $0.70 apiece, below the stock exchange’s $1-a-share continued listing requirement.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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