Inventus Mining has secured $828,000 after McEwen Mining (MUX, Financial) exercised 9,200,000 common share purchase warrants under an early incentive program. The funds will help propel the 2025 bulk sampling initiative at Inventus's fully owned Pardo Gold Project, situated 65 kilometers northeast of Sudbury, Ontario.
Currently, Inventus is carrying out grade control drilling at Pardo to refine the mineralization zones ahead of their bulk sampling efforts. This operation involves drilling around 50 shallow holes, each targeting mineralization within 5 meters of the surface, with completion expected in about four weeks. Past bulk sample results from Pardo have shown promising grades, with records of 3.4 grams per tonne (gpt) gold in 5,000 tonnes and 4.2 gpt gold in 1,000 tonnes, suggesting an economically viable surface mining prospect.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for McEwen Mining Inc (MUX, Financial) is $15.06 with a high estimate of $18.00 and a low estimate of $12.50. The average target implies an upside of 99.77% from the current price of $7.54. More detailed estimate data can be found on the McEwen Mining Inc (MUX) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, McEwen Mining Inc's (MUX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for McEwen Mining Inc (MUX, Financial) in one year is $9.19, suggesting a upside of 21.88% from the current price of $7.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the McEwen Mining Inc (MUX) Summary page.
MUX Key Business Developments
Release Date: March 18, 2025
- Gold Equivalent Production: 135,884 ounces, 12% lower than 2023.
- Selling Price Increase: 24% higher than the previous year.
- Adjusted EBITDA: $29.2 million or $0.57 per share, up from $7.7 million or $0.16 per share in 2023.
- Net Loss: $43.7 million, primarily due to expenditures at Los Azules.
- Exploration Expenditure: $16.5 million, totaling $19.8 million.
- Depreciation: $10 million.
- Debt Increase: From $40 million to $130 million via capped call convertible debenture.
- Cash Position: Approximately $62 million.
- Fox Complex Exploration: Increased indicated and inferred resources to over 2 million ounces.
- Los Azules Valuation: Implied value of $984 million, with a 46% interest equating to $457 million.
- San Jose Mine Investment: 49% interest, expecting to pay a dividend soon.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- McEwen Mining Inc (MUX, Financial) reported a significant increase in adjusted EBITDA, which was 3.8 times higher than the previous year, reaching $29.2 million.
- The company achieved a 24% higher selling price for its production, despite a 12% decrease in consolidated production.
- Exploration efforts at the Fox Complex have increased indicated and inferred resources to over 2 million ounces, allowing for future production expansion.
- The Los Azules project has seen a substantial increase in implied value, now estimated at $984 million, with plans for an IPO contingent on market conditions.
- The San Jose mine, in which McEwen Mining Inc (MUX) holds a 49% interest, is expected to pay a dividend soon, benefiting from higher metal prices.
Negative Points
- McEwen Mining Inc (MUX) posted a net loss of $43.7 million, primarily due to significant investments in the Los Azules project.
- The company's debt increased from $40 million to $130 million through a capped call convertible debenture.
- There is ongoing uncertainty regarding the approval of the Los Azules project under Argentina's RIGI scheme, with no clear timeline for a decision.
- The company faces a legal claim from an indigenous group concerning property interests in Timmins, which it believes is without merit.
- Permitting timelines for the Timberline properties and other projects remain unpredictable, potentially delaying production increases.
