- McEwen Mining (MUX) has reported a disappointing second quarter after its operations were heavily impacted by the COVID-19 pandemic
- Both gold and silver production fell substantially across all four of the company’s producing assets
- Revenue from gold and silver sales also fell from more than C$48 million in the second quarter of 2019 to just over $24 million this year
- As such, the company reported an increase in net loss, from $17 million to more than $26 million
- McEwen Mining (MUX) is currently down 8.77 per cent and is trading at $1.30 per share
McEwen Mining (TSX:MUX) has reported a disappointing second quarter after its operations were heavily impacted by the COVID-19 pandemic.
Both gold and silver production fell significantly for the three months ending June 30, 2020, following temporary shutdowns at all four of the company’s producing assets in Argentina, Canada, the US and Mexico.
Total gold production for the quarter was reported at 15,700 ounces, compared to 36,200 in the same period last year. Similarly, silver production fell from 850,500 ounces to 359,400 ounces.
As such, revenue from gold and silver sales slid from more than C$48 million in the second quarter of 2019 to just over $24 million this year, while McEwen Mining reported an increase in net loss for the period, from $17 million in 2019 to over $26 million.
Rob McEwen, Executive Chairman of McEwen Mining, said the second quarter was challenging from an operational and health and safety standpoint.
“I very much wish I could say that all our difficulties that started last year are now behind, but they are not, yet. Our significantly lower production not only reduced our revenue, but also dramatically increased our costs per ounce.
“We are 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 ounces per year,” he added.
Rob recently acquired an additional two million shares in the company, bringing his total holding to 82 million shares, a factor he hopes outlines his underlying confidence in the company’s future.
McEwen Mining (MUX) is currently down 8.77 per cent and is trading at $1.30 per share at 10:10am EDT.
