Jump to content
Sign in to follow this  
drbubb

McEwen Mining (MUX) : 135,000 /yr. Gold miner

Recommended Posts

McEwen Mining (MUX & MUX.t)

MktCap: USD$2.10 x 337M shs = $708 Million
To make S&P500 : $2,663 x 0.23% = $6.1 Bn / 337M shs --> $18.10 /sh to get into S&P500

MUX : 10yr : 3yr : 12mo : Last $2.10 / (since 7/2016): MUX-vs-GDXJ : MUX-vs-SPX :

uO5SMy5.gif

3yrs

UfQQriF.gif

Individual Gold stocks are in pinch-points, like GDXJ is/was in early May 2018 :

GDXJ : Jr. Gold Miners ... 10-yr : 5-yr : 3-yrW3-yrD : 12-mos / 10d - Last: $33.55 : $2.10 /33.55 = 6.26%

Like MUX : McEwen Mining ... 10yr : 3-yr : 3-mo - Last: $2.10 +0.03

dTKvMHw.gif

3-mos

VrrPd21.gif

Rob McEwen: "We're In The Beginning Of A Bull Market"

We are entering the early stages of a commodities cyclical bull market that could last another 10-12 years, said Rob McEwen, Chairman of McEwen Mining.“This is an oversold sector, it’s very depressed, and we’re coming into to a cyclical upturn in commodities,” McEwen told Kitco News on the sidelines of the PDAC 2018.McEwen noted that while some of the major miners have negative growth curves in terms of projected production, it will be the juniors and intermediates that will “run with the show.” (show less)

002.jpg

PRESENTATION

HIGH BETA TO GOLD: 2.7x !
DAILY VOLUME : 3.5M AVG.
 
> MUX website : http://mcewenmining.com/
 

Share this post


Link to post
Share on other sites
Big Wave of Investment in Gold Shares coming?
 
We learned from Mr. Rob McEwen, Chairman and Chief Owner of McEwen Mining, that the reason the company is looking to qualify for the S&P 500, which represents 80% of the equity capital in the country, is that they expect a big wave of investment in gold in the near term and the great bulk of the buying will go into gold stocks in the S&P 500.
 
There's a very successful hedge fund manager, Ray Dalio, who runs Bridgewater Associates, one of the largest hedge funds in the world. In August 2017, he recommended that investors look at putting 5 to 10% of their portfolio in gold. If we ever saw a movement like that, there'd be a gigantic amount of money moving into the gold space, having a very positive impact on the price of gold. Maybe half of that might go into gold bullion and coins. The balance could go into gold shares.
 
MUX vs. SPX : since 7/2016
: Last : mux-$2.10, spx-$2,663 : 0.08% : 1268x
nUc4utx.gif
 
MUX’s goal is to qualify for inclusion in the S&P 500.
1. It is critical to understand that only a very small number of gold producers can gain admittance to the S&P 500 index. The first criteria is the company must be American, which McEwen Mining is. That eliminates 99% of all the gold producers worldwide.
2. Given the growing presence in the market of passive investment management, index investing and ETFs, the importance of being in the S&P 500, the largest segment dominant index in the market cannot be overlooked.
3. Being in the index provides a competitive advantage. That is the reason for MUX to reach for our goal of being included in the S&P 500.

 
> Jan. 2018 interview: http://www.metalsnews.com/t1200266i
 

MUX MktCap:
USD$2.10 x 337M shs = $708 Million
$6.1 Bn / 337M shs --> $18.10 per Share is needed, if MktCap target stays at $6.1 Bn

REQUIRED, as of April 2018:

Even though the components for the S&P 500 are selected by a committee, inclusion does require that a few liquidity and market cap requirements be met. These include:

  • A minimum market cap of $6.1 billion
  • Annual dollar value traded to float-adjusted market capitalization is greater than 1
  • Minimum monthly trading volume of 250,000 shares in each of the six months leading up to evaluation

Share this post


Link to post
Share on other sites

McEwen Mining, Summary of Investment Case

1/

005.jpg

2 /

006.jpg

"In October 2017 we purchased another property in Timmins, an operating mine, a short distance away from the assets we purchased earlier in the year. The mine we purchased in October was called the Black Fox Complex, we bought it from Primero Gold, who had bought it in 2014. We think we got a good price. Primero purchased the property in 2014 for $300 million, they assumed $140 million of liabilities, and put $120 million into development and exploration. Primero’s total investment in this asset was $560 million and we purchased it for $35 million. We paid six cents on the dollar."

It came, also, with $150 million of tax pools, which will allow us to shelter a large part of our income for many years going forward. It also has an operating mill and tailings area permitted that has excess capacity that will allow us to process ore from the Lexam VG properties that we purchased in the spring of 2017.

3 /

008.jpg

Another important development happened in early November, when we received our long-awaited permit from the Bureau of Land Management to start construction and operate our Gold Bar Mine. We started doing ground preparation at Gold Bar immediately after we were issued our permit and we were able to start drilling. Our exploration objective is to extend the life of the Mine. Gold Bar will take a year to build. We expect to begin commercial production in 2019. Average annual gold production is expected to be 65,000 ounces of gold at a cash cost of $800 an ounce. The resource grade is 1 gram/ton oxide ore. It will be a heap leach operations with a low capital cost of $75 million.

In Mexico, our El Gallo Mine is an open-pit, heap-leach gold Mine, which is nearing the end of its life, at least as far as mining the oxide ores. We've been building a resource base of sulfide ore. This ore type would require an additional capital investment in order to recover the gold economically. At the same time, 5 miles away from the gold Mine, we have a silver deposit on which we have been reworking the economics. It requires a silver price above $18 before we want to put money into the ground and build a Mine.

When we look at a new project, it has to meet two criteria: First, 20% after tax internal rate of return and second, a payback of capital in less than three years.

Our corporate goal is to qualify for the S&P 500 Index. That means we have to grow, so we're looking for further M&A opportunities that will increase our annual production and exploration potential. We prefer buying distressed and underpriced assets. Our future growth needs to produce a higher share price, otherwise it is not worth doing!

Mr. Rob McEwen: ... McEwen Mining is debt-free. Our treasury has about $60 million in liquid assets. I own 24% of the company, my cost base is $133 million ($1.64 /sh*) . My salary is $1 a year and I have elected not to receive any bonuses or options.

In the last 13 years I was at Goldcorp, our share price compounded on an annual basis in excess of 31% a year for 13 years. This type of share performance is exactly what I would like to repeat at McEwen Mining. The reason for this goal is to use my profits to fund medical research for regenerative medicine and stem cells.

*$133Mn / (24% x 337 M shs = 81 M shs) = $1.64 per share is McEwen's estimated cost

5 x

> source: http://www.metalsnews.com/t1200266i

Share this post


Link to post
Share on other sites

BULLBOARD Comments

RE: McEwen interview at pdac
An announcement of a Los AzulesJV would blow the roof off this stock price. 

McEwen is carefully building a successor  to Goldcorp which he took from 50 mil to 50 Billion.
El Gallo 2 , Black Fox , plus GPY and Nighthawk really give MUX explosive potential.
2/
Merger Speculation
Aside from holding share positions in Nighthawk and Golden Predator, what do you think is probable with those companies in the future? I think now McEwen needs a solid established producer merger scenario. The financing of Gold Bar will come first of course and after that I don’t see anymore resource for mine building in foreseeable future. We desperately need monetization of Los Azules. If that happens then I could see these things but then I think Inventus would be next. I know it causes a lot of pain to people to bring up Rubicon but I still wouldn’t be surprised to see that as a possible merger. The gold is there at F2 and someone will get it out of the ground. Current management is making headway in that regard. Long history there for Rob but revisiting that may not be an option. Fully permitted built turnkey facility though. Total conjecture but who knows. Crypto inflows have confounded this space even more than the blatant banksters market manipulation of gold. I have no idea what is next.
3/
Dear Shareholders,
Gold Bar construction is on track, with the anticipated completion in 2018 and commercial production in 2019. Primary activities during the first quarter have focused on finishing civil works related to the heap leach pad, solution and event ponds, as well as all site infrastructure, in preparation for major equipment and material deliveries in the second quarter.

1277523b-dbac-4255-b6c7-9a16edec4162.jpg
4/
At PDAC in an interview Rob M said we have $11 mil US planned drilling for Timmons area this year.
This is what MUX said at end of 2017
Since completing the purchase of the Black Fox Complex in early October, we are increasing our understanding of the great opportunities to grow existing resources and to make new and exciting mineral discoveries in the Timmins region. We see an opportunity to accelerate our exploration efforts by committing US$10 million in 2018 to conceptual and early stage targets, predominantly on the Black For property.
5/
MUX owns 3 % of Nighthawk ... 5yr :

BrKyIG9.gif
http://www.stockhouse.com/news/press-releases/2018/04/12/nighthawk-reports-new-gold-discoveries-within-its-indin-lake-gold-property#nfb041218
6/
Gotta love Rob Mc Ewan's aggressiveness
$35 MIL TO BUY THE WHOLE PLACE and then plans a $15 mi drilling campaign
7/
Most investors here have invested primarily in Rob McEwen. They believe he will do what he did in GG. Fundamentally speaking, MUX has expensive mines with relatively high AISC and this has to change.
Read more at http://www.stockhouse.com/companies/bullboard#0TK4HDC5zkeDi10U.99

 

Share this post


Link to post
Share on other sites

Los Azules & its copper

uH1CKsr.png

MUX hidden gem :

I am talking about Los Azules. Our ceo knows how to put a company under the spotlight. Los Azules is the equivalent of a 40 millions deposit of gold at 1 gr/ton. A joint venture will come before the end of the year to put this sleeping giant under the radar. For the Timmins area and great fox, they will turn this mine around in the next 12 to 18 months. Patience is needed. The fall season could be very exciting.
2/
Agree.
I listened to Marin Katusa last week, he said copper will be a big thing in the future..........

Read more at http://www.stockhouse.com/companies/bullboard#Uui2gFKeeQ38LQBO.99

Share this post


Link to post
Share on other sites

I Bought Nov $1.50 Calls @ $0.70

1kh1al1.gif

MUX : was about $2.07

zv1pRKt.gif

Share this post


Link to post
Share on other sites

You cannot keep a good stock down - even when Gold is weak

McEwen Mining (MUX) - etc ... update : MUX alone : Last: $2.38 + 0.05

OclCiV8.gif

I own Nov.$1.50 calls

Share this post


Link to post
Share on other sites

MUX Test at $2.50-2.55 coming up soon

MUX ... update / Last: $2.45 + 0.07

NfMG7xy.gif

Share this post


Link to post
Share on other sites

The MUX seems to respect the Canadian Dollar charge slightly better

MUX-in-CAD ... update / Last: C$3.18.H: C$3.21 ... MUX-in-USD: US$2.42 ... CAD=$0.760

TSl375q.gif

MUX.t touched the 377d-MA (C$3.22 = US$2.45), and may soon breakout to the 610d-MA (about C$3.50 = US$2.66)

Share this post


Link to post
Share on other sites
Post on Bullboard: June 21, 2018 - 05:15 PM 225 Reads
 
McEwen Mining Inc. (NYSE: MUX) has the goal to qualify for inclusion in the S&P 500 Index by creating a profitable gold and silver producer focused in the Americas. McEwen recently announced the results of a new Preliminary Economic Assessment, evaluating the potential extension of production from its 100% owned El Gallo Complex in Sinaloa, Mexico. The proposed redevelopment plan evaluated in the PEA is called Project Fenix. The key outcomes of Project Fenix include an average annual production rate of 47,000 ounces of gold equivalent, low initial capital cost, mine pay-back of 4 years, and an after-tax IRR of 25% at current gold and silver prices.
 
"Project Fenix shows that El Gallo has the potential to be retooled to produce silver and gold for years into the future. The current heap leach gold mine would transform first to a mill and process the residual heap leach pad material, then additional mill modifications would enable processing of silver and gold ores from four other deposits. This plan depends on innovative in-pit tailings disposal that we think is a win-win for all stakeholders. Over the coming quarters we intend to advance environmental permitting and refine our plans with a feasibility study before making an investment decision next year,"
said Rob McEwen, Chairman and Chief Owner
Read more at http://www.stockhouse.com/companies/bullboard#xX2D4SQ1m0J2M3q0.99

Share this post


Link to post
Share on other sites

In late June, someone wrote:

"All gold stocks are going no where, we need higher gold prices, period." : post

BUT LOOK what has happened:
MUX - vs. GDXJ, SKV, SIL ... update
JiGofJz.gif

Share this post


Link to post
Share on other sites

McEwen Mining Reports Q2 2018 Production Results

TORONTO, July 16, 2018 (GLOBE NEWSWIRE) -- McEwen Mining Inc.(NYSE:MUX) (TSX:MUX) reports consolidated production for Q2 2018 of 36,959 gold ounces and 772,432 silver ounces, or 47,258 gold equivalent ounces(1)(“GEOs”), using a 75:1 gold to silver ratio.

Consolidated Production Summary

  Q2 ‘18 Q1 ‘18 Q4 ‘17 Q3 ‘17 Q2 ‘17
Gold ounces 36,959 35,069 48,609 19,051 22,191
Silver ounces 772,432 695,651 926,739 749,749 779,487
GEOs 47,258 44,344 60,965 29,047 32,584

Highlights of the second quarter from our four mines including our newest mine in Nevada, which is under construction, are as follows:

Gold Bar Mine, USA (100%)

Construction activities at Gold Bar focused on the heap leach pad, and installation of the crushing and process facility. All major equipment and bulk materials are either on site or purchased. Engineering for the project is complete and approximately 90% of contracts are awarded. Construction is advancing on schedule for completion by the end of 2018, targeting production in Q1 2019. During the first three years of operation beginning with 2019, Gold Bar is projected to produce 55,00074,000 and 68,000 ounces of gold respectively.

Black Fox Mine, Canada (100%)

Black Fox produced 14,055 GEOs, in line with our full year production guidance for 2018 of 48,000 GEOs. A $15 million exploration program is ongoing across the Black Fox Complex, drilling results and other developments will be released quarterly, with the next update planned in the coming weeks.

El Gallo Mine, Mexico (100%)

El Gallo produced 10,808 GEOs, in line with our budget and full year production guidance for 2018 of 32,000 GEOs. By the end of Q2, mining and crushing activities ceased and contractor equipment has been demobilized from the mine site. Closure, reclamation and residual heap leach activities are ongoing and will continue for several years.

A new Preliminary Economic Assessment (PEA) study on the potential restart of production from the El Gallo Complex at some point in the future was published on July 9, 2018. The proposed development plan evaluated in the PEA is called Project Fenix. The key outcomes of Project Fenix include an average annual production rate of 47,000 ounces gold equivalent (AuEq), a 12-year mine life, low initial capital cost of $41 million for Phase 1 and $30 million for Phase 2, and pay-back period of 4.1 years. At current gold and silver prices the after-tax internal rate of return (IRR) is 28%, and the net present value (NPV) at a 5% discount rate is $60 million.

Capital cost estimates for Project Fenix are to a level of accuracy that is consistent with a PEA technical report. During the next 14 months we will continue to review mineral processing, mine sequencing, material transportation and tailings storage options; and the flow sheet will be optimized by undertaking trade-off studies, updating cost models and additional metallurgical testwork.

The PEA is available for review on our website and SEDAR (http://www.sedar.com).

San José Mine, Argentina (49%(2))

Our attributable production from San José was 12,139 gold ounces and 769,197 silver ounces, for a total of 22,395 GEOs. Production is on-track to achieve our full year guidance for 2018 of 91,000 GEOs. We received approximately $2.4 million in dividends from our interest in San José during Q2.

First Quarter Financial Results

Operating costs for the quarter ended June 30, 2018 will be released with our 10-Q Quarterly Financial Statements in early August. As of July 9, 2018 we are debt-free with liquid assets of approximately $30 million.

ABOUT MCEWEN MINING
McEwen’s goal is to qualify for inclusion in the S&P 500 Index by creating a profitable gold and silver producer. McEwen’s principal assets consist of: the San José mine in Santa Cruz, Argentina (49% interest); the El Gallo Gold mine in Mexico; the Black Fox mine in Timmins, Canada; the Gold Bar mine in Nevada that is currently under construction; and the large Los Azules copper project in Argentina that is advancing towards permitting.

McEwen has a total of 337 million shares outstanding. Rob McEwen, Chairman and Chief Owner, owns 24% of the shares.

> MORE: http://crweworld.com/article/news-provided-by-globenewswire/737053/mcewen-mining-reports-q2-2018-production-results

Share this post


Link to post
Share on other sites

McEwen drills 8.3 m of 53.9 g/t Au at Froome

https://www.ftmig.com/energy-mining/mcewen-drills-8-3-m-of-53-9-g-t-au-at-froome/
McEwen Mining Inc. has released an updated resource estimate for the Froome deposit and highly encouraging exploration results from its continuing $15-million exploration program at the Black Fox complex near Timmins, Ont., Canada.

Highlights include:

Froome Footwall: Drilling intersected 53.93 g/t gold over 8.29 m including 322.86 g/t gold over 1.34 m , along the footwall structure located approximately 150 m North of the main Froome deposit.

Froome Resource: Indicated resource estimate increased by 14% to 181,000 gold ounces at a grade of 5.09 g/t.

Pike River: Shallow high-grade intersection of 35.04 g/t gold over 3.30 m core length (CL) along the same 7 km long structural belt that hosts the Froome deposit and Gibson mineralization.

Grey Fox: Multiple shallow intersections including 13.41 g/t gold over 2.82 m including 27.70 g/t gold over 0.94 m , and 5.79 g/t gold over 1.99 m including 9.71 g/t gold over 0.93 m from a mineralized cross-structure located in the hanging wall of the 147 Zone, which has a current Indicated resource of 264,000 gold ounces at a grade of 7.49 g/t.

Black Fox Mine: 35.08 g/t gold over 1.69 m intersected on the depth extension of the mine. An underground exploration drift is under development and additional drilling will begin in mid-September.

/ 2 /

RE:Conference Call

I watched the whole thing. It was highly technical with very impressive gold sample data for Black Fox. Also found the Los Azules copper project presentation quite informative.
It's difficult to translate the data into furture earnings as it's very early-stage development.
Unless I missed it, there was no mention of the prospectus for the 45 million share issue and I found that very strange - not one question about that in the Q & A.

Read more at http://www.stockhouse.com/companies/bullboard#mQicJQpJJG1dbtMp.99

Share this post


Link to post
Share on other sites

MUX price got dragged down with weaker Gold stocks

MUX - vs GDXJ ... update : MUX-alone : GDX : GDXJ : Last: mux-$2.00 / gdxj-$x.xxx

hOmcPTw.gif

Ratio: MUX-to-GDXJ : $2.00 / xx = xx%

xx

Share this post


Link to post
Share on other sites

McEwen Mining has run up to a resistance Level

MUX ... 2-yrs : 6mos / Last: $2.26 +$0.10, + 4.63% (HofYr: $2.55)

IQdySMj.gif

==

Share this post


Link to post
Share on other sites

McEwen Mining vs Gran Columbia Gold (from "same start" $2.54/$2.53 on 3.1.18)

MUX.t vs GCM.t ... on 3.1.18 :

nkEXxox.gif

Share this post


Link to post
Share on other sites

McEwen Mining pushes higher, ahead of Gold, Gold shares

GLD/Gold -vs- MUX etc.: GDXJ, SLV ... update / Last: $2.31 / GLD-$115.92 : r-1.99%

flp9sTK.gif

Ratio: MUX -to-GLD : near 2% (a resistance level?)

K1JN1b5.png

==

Share this post


Link to post
Share on other sites

MUX is pushing on Resistance Levels

8oEGcbk.png

Share this post


Link to post
Share on other sites

MUX has been very weak recently, far weaker than GCM.t

MUX.t versus GCM.t ... All : from 4-4-2011 : 2-4-2014 : 2-4-2016 : 11-14-2017 : from 2-28-18 :

FVWqFzv.gif

: from 2-28-18 :

dtjWuPL.gif

GCM.t vs: MUX.t, MNT.t, GDXJ ... update :

baZSUQN.gif

Ratio: MUX-to-GCM

hJcVMGB.png

RUFSs1Z.png

Date: MUX.t: GCM.t:
2/14: $2.95 : $2.23 :
2/15: $3.01 : $2.40 :
2/16: $2.85 : $2.37 :
2/20: $2.79 : $2.65 :
2/21: $2.73 : $2.55 :
2/22: $2.71 : $2.53 :
2/23: $2.65: $2.60:
2/26: $2.63 : $2.50 :
2/27: $2.60 : $2.40 :
2/28: $2.52: $2.54:
=====
11/12:
11/13: 2.27 : $2.34 :
11/14: 2.32 : $2.53 :
=====

Share this post


Link to post
Share on other sites

Share this post


Link to post
Share on other sites

McEwen Mining Reports Q3 2018 Results

2018-10-30 16:57 ET - News Release

TORONTO, Oct. 30, 2018 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) today reported third quarter results for the period ended Sept. 30, 2018 (“Q3”). During Q3, gold equivalent ounces (GEOs) produced increased by 51% and all-in sustaining costs per GEO sold decreased by 3% compared to Q3 2017. Net cash flow from the business excluding project development costs was $2.2 million or $0.01 per share. Total expenditure of $35.5 million was incurred to further our long-term production growth plans at the Gold Bar, Black Fox, Fenix and Los Azules projects. Our consolidated net loss for Q3 was $13.3 million or $0.04 per share.

During the first nine months of 2018, GEOs produced increased by 48% and all-in sustaining costs per GEO sold was unchanged compared to the same period in 2017. Net cash flow from the business excluding project development costs was $20.8 million or $0.06 per share. Total expenditure of $84.5 million was incurred to further our long-term production growth plans at the Gold Bar, Black Fox, Fenix and Los Azules projects. Our consolidated net loss for the first nine months of 2018 was $23.9 million or $0.07 per share.

Please join our conference call on Wednesday, Oct. 31st, 2018 at 11 am EDT.

Share this post


Link to post
Share on other sites

Rally to $2.50 Resistance? (or Higher)

MUX ... All-data : 5-yr: 2-yr : 6-mo : Last: $1.83 +0.05 // MUX-vsGCM-etc :

49a3rQf.gif

MUX.t ... 5yrs :

JW7hUxD.gif

Share this post


Link to post
Share on other sites

MUX rally may not quickly get to $2.50

MUX ... update  / MUX.t : C$2.15 = US$1.90

FBRbOAv.gif

=

Share this post


Link to post
Share on other sites

Getting the Incentives right... to encourage Growth

McEwen Mining: Focusing On Strong Growth Strategy

"I believe you have to pay 'Rents' to Shareholders"

"We want to pay a Rent to the shareholders, while we are awaiting a Capital Gain"

/ 2 /

We had the Longest & Deepest Bear Market (into early 2016)

JmLAIP2.png

Back Up The Truck, It’s Time To Buy Gold Equities - Rob McEwen

"Since Early 2016, we have been in a Bull Market for Gold equities...

Though many may not believe it, with many Gold equities up 100% or more from the Lows"

"We have (at least) a 3X Upside from here."

jade jet
If only there were more leaders like Rob in the industry. It is interesting to note that such a soft spoken and gentle toned man is a king in the macho world of mining. But his stellar record tells me he is a warrior in a macho industry. I bet Rob is as shrewd and rugged as leaders get in this industry. Interesting.

==========

Here's MUX -over the last 12 years:

MUX ... All-data : 5-yr: 2-yr : 6-mo : Last: $1.83 +0.05 // MUX-vsGCM-etc :

49a3rQf.gif

MUX versus peers - "one of the Highest Betas" (that's good & bad)

36x3M94.png

Ratio : MUX -to-GDX - After a Poor month, Down to 9%; Now cheap?

4qo22UP.png

"I get $1 a year... we just took on debt for the first time... $53 Million... We have $50 million in cash"

"We are quite liquid. Most of our trading is on the NYSE"

"The Short positions will one day be Fuel-for-the-Fire"

MUX.t to MNT.t (C$-Gold etf) is down to 14.2%. but above 13.5% Low

- Rally to 15.5% coming? C$17.08 x15.5%= C$2.65 x0.755= US$2.00

T69Cvxn.png

Share this post


Link to post
Share on other sites
On 23/11/2018 at 7:40 AM, drbubb said:

MUX rally may not quickly get to $2.50

MUX ... update  / MUX.t : C$2.15 = US$1.90

FBRbOAv.gif

=

Watching this with interest now it’s back at the lows. 

Whats knocking this Dr B, why the smack down?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×