McEwen Mining forecasts reduced output in 2024

Gold Bar construction, May 2018 – Image courtesy of McEwen Mining

McEwen Mining (NYSE: MUX) (TSX: MUX) is expecting lower 2024 production in terms of gold-equivalent ounces (GEOs) across its operations despite a significant improvement in 2023 and meeting its yearly guidance.

The precious metals miner ended last year with consolidated production of 154,600 GEOs, consistent with its prior forecast of 150,000-170,000 GEOs. The fourth quarter contributed 49,850 GEOs on the back of record performances at the Gold Bar mine in Nevada.

Elsewhere, the Fox complex in Ontario continued its steady production, finishing above 10,000 GEOs for the recent quarter. The San José mine in Argentina also overcame operational challenges of the first quarter, producing 19,150 GEOS in Q4.

For the full year, Gold Bar produced within guidance range at 43,700 GEOs, while Fox produced 44,450 GEOs, also within guidance range. San José, meanwhile, produced slightly below guidance at 65,650 GEOs.

Looking ahead, McEwen said the Fox and San José operations, which are operated by partner Hochschild Mining, will likely see reduced output in 2024, and has set of guidance of 130,000-145,000 GEOs for the year.

At Fox, the company will be starting the development of underground ramp access to the Stock orebodies, particularly Stock West, which it says will become the primary source of feed following the completion of mining the Froome deposit in 2026. This capital investment is partially funded by the $16.1 million flow-through financing completed in December.

At Gold Bar, the first half of 2024 is expected to deliver higher production relative to the second half, due to a scheduled waste stripping phase in the Pick pit, in preparation for the 2025 mining program. The mining sequence continues to be optimized, McEwen said.

Shares of McEwen Mining closed Monday’s session 1.1% higher at $6.94, capitalizing the company at $342 million.