JOHANNESBURG (miningweekly.com) – Dual-listed McEwen Mining has fallen below the NYSE continued listing requirement related to the price of its common stock.
"We do not believe that McEwen Mining's current share price is reflective of the true value of the company's assets. Our share price has been under pressure as a result of the decline in gold and silver prices and a general reduction in financing options that have affected many companies in the mining space,” stressed McEwen Mining chairperson and chief owner Rob McEwen.
He said the company valued its NYSE listing and would evaluate measures to bring its share price into compliance with listing requirements.
"We have recently initiated a dividend distribution based on our improving operational performance and growing cash reserves, and we beat our second quarter production guidance at the El Gallo mine [in Sinaloa, Mexico], the third consecutive quarter with record production,” McEwen advised.
The company expected to continue its production success over the remainder of the year, maintaining guidance for production and costs.
The NYSE required that the average closing price of a listed company's common stock be above $1 a share, calculated over a period of 30 consecutive trading days.
The NYSE advised McEwen Mining on Wednesday that the average price of its common stock for the previous 30 trading days was below $1 a share.
Under the NYSE's rules, McEwen Mining had six months from July 1, the date of the company's acknowledgement, to bring its share price and 30-day average closing share price back above $1.
During this period, McEwen Mining's common stock would continue to trade on the NYSE, subject to all other continued listing requirements. The company's listing on the TSX was unaffected by any actions of the NYSE.
At the end of the six-month remedy period, if the share price had not recovered, McEwen Mining’s stock would be subject to NYSE suspension and delisting procedures.