McEwen Mining Reduces Second Quarter Net Debt Due to Strong Production and Higher Gold Price

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(Kitco News) – McEwen Mining (NYSE: MUX) (TSX: MUX) announced yesterday that its gold equivalent production of 40,700 ounces in the second quarter of 2021 was significantly higher than a year ago (19 200 ounces in the second quarter of 2020) and that the company is on track to meet its 2021 production targets of 141,000 to 160,400 ounces.

Company revenue from second quarter 2021 gold and silver sales of $ 40.7 million increased 123% or $ 22.4 million from second quarter 2020 The increase reflects an additional 11,700 ounces of gold equivalent sold by the wholly owned McEwen operations. The increase in revenue was also positively influenced by a higher average realized gold price during the quarter compared to Q2 / 20 ($ 1,830 / oz in Q2 / 21; $ 1,733 / oz in Q2 / 20).

In the second quarter of 2021, the company reported a net loss of $ 6.0 million (or $ 0.01 per share) compared to a loss of $ 19.8 million (or $ 0.05 per share) in the quarter ended June 30, 2020. McEwen explained that the improvement in the second quarter of 2021 is mainly driven by a $ 13.5 million increase in gross margin due to increased production and sales and ‘a higher average realized price of gold.

The company said it continues to execute its turnaround strategy and has made significant progress from both an operational and financial perspective. McEwen expects this trend to continue through the remainder of 2021, when the Froome mine at the Fox Complex reaches commercial production in the fourth quarter.

McEwen Mining is an Americas-focused, diversified gold and silver producer and explorer with operating mines in Nevada, Canada, Mexico and Argentina.

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Ann J. Cox