McEwen Mining Inc. (MUX, Financial) climbed 2.6% on Monday to $2.38 per share on the New York Stock Exchange.
The rise is attributed to results on improved fourth quarter gold production at El Gallo mine in Mexico and on outputs at Black Fox Mine in Canada and the San José Mine in Argentina. Miners are accessing higher ore grade at El Gallo.
The Black Fox Mine was purchased in October and contributed to the company’s production of gold equivalent with 14,279 ounces.
In 2017, McEwen Mining produced 109,947 ounces of gold and 3,178,742 ounces of silver for a total 152,329 ounces of gold equivalent.
The chart below shows the positive trend in the company’s annual production of gold and gold equivalent over time.
The chart below illustrates the consolidated silver production of the company over the last five years:
The company will release the financial statements for full fiscal 2017 by the end of February.
McEwen has a market capitalization of $802.01 million, a price-book (P/B) ratio of 1.45 versus and industry median of 2.01, a price-sales (P/S) ratio of 13.30 versus an industry median of 1.76 and an EV-EBITDA ratio of -35.96 versus an industry median of 10.14.
About McEwen in 2018, I would closely watch the contribution of Black Fox to the company’s gold equivalent production development.
(Disclosure: I have no positions in McEwen.)
