TSX- and NYSE-listed gold and silver producer and explorer McEwen Mining reports that for the second quarter of the year, its gold and silver production was adversely impacted by operational and Covid-19-induced disruptions.
The company, which operates four mines in the Americas, produced 15 700 oz of gold and 359 400 oz of silver in the second quarter, equating to 19 200 gold-equivalent ounces.
This is a 58% decrease on production in the second quarter of 2019 and also well below the first quarter of 2020’s output.
“I very much wish I could say that all our difficulties that started last year are now behind, but they are not, yet,” chairperson and chief owner Rob McEwen says, adding that the second quarter was challenging from an operational and health and safety standpoint.
“Our significantly lower production not only reduced our revenue, but also dramatically increased our costs per ounce.”
Operational and Covid-19-induced disruptions during the quarter resulted in the miner widening its net loss to $19.8-million, or $0.05 a share, from $13-million, or $0.04 a share, a year earlier.
A change in how the company accounts for development expenditures also added significantly to its cash cost per ounce at Black Fox, in Ontario.
“However, our path to future growth and improved operational performance has become clearer,” says McEwen, pointing out that the company is in a transition period, setting up for future growth.
“We have a large resource base, four operating mines and can see an exciting organic growth pipeline of projects ahead that could potentially push our production to 300 000 oz/y.”
McEwen notes that development of the access to the Froome underground deposit, at Black Fox, has advanced 30%. The plan is to reach the deposit in the second quarter of 2021, and to complete the necessary development and achieve commercial production in the fourth quarter of 2021.
At its Nevada-based Gold Bar operation, McEwen notes that the evaluation of the revised resource estimate is continuing, while mining has resumed and is expected to reach full capacity by September.
Meanwhile, the company also notes that on August 3, the NYSE informed the company that it had regained compliance with the continued listing standards.
The miner’s stock closed 2% lower on the TSX at C$1.89 a share and 2.74% down on the NYSE at $1.42 a share.