McEwen suspends planned distribution
Operating issues at the Black Fox mine and with the start-up of the Gold Bar mine have resulted in McEwen Mining suspending its planned distribution on March 15.
The NYSE- and TSX-listed McEwen announced on Thursday that it would not be paying the distribution of 0.5c a share, citing the issues at the mines, which it added were temporary.
“These issues have resulted in much lower revenue this quarter than planned. As a result, we decided the prudent and responsible course of action was to conserve our cash and suspend the distribution,” said chairperson and chief owner Rob McEwen.
The company alluded to the operating problems in its full-year and fourth-quarter results announcement last month, when it noted that the Black Fox mine, in Timmins, Canada, had faced “challenges reaching targeted productivity levels”.
Black Fox produced 48 928 gold-equivalent ounces (GEOs) in 2018 at a cash cost of $845/oz. In 2019, the mine is forecast to produce 50 000 GEOs at a cash cost of $905/oz.
At the new Gold Bar mine, in Nevada, US, McEwen reported last month that heavy snowfall at Gold Bar and understaffing had impacted on its operating activities, delaying the ramp-up of the crushing plant. Commercial production has been pushed out to the second quarter.
The miner also forecast higher-than-projected cash costs for Gold Bar for 2019, citing an increase in the amount of waste stripping. McEwen has revised the mining schedule, which should better position the new mine in its second year of production.
Gold Bar will produce 55 000 oz of gold at a cash cost of $960/oz in 2019.
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