McEwen Mining Inc. (MUX, Financial) is slightly down to $2.07 following the company’s results on financials for the initial months of fiscal 2018.
The company generated a net cash inflow of $11 million from operations. That was a positive turnaround from the prior-year quarter when McEwen reported a net cash outflow of nearly $7 million.
During the quarter, the miner made investments of $22.7 million for the advancement of Gold Bar, Black Fox and Los Azules projects. McEwen Mining is targeting a long-term production growth.
McEwen closed the first quarter of 2018 with a loss of 2 cents versus a loss of 1 cent in the comparable of 2017. McEwen Mining missed consensus on the bottom line by 1 cent.
For the 52-weeks through May 3 the stock in McEwen Mining has fallen 23% and is trading below the 200 and 100 SMA lines. McEwen is mimicking the 50 SMA line:
The 52-week range is $1.82 to 3.06 per share.
The average target price is $3.58. That is a mean of three estimates that range between a low of $2.50 and a high of $5 per share. The recommendation rating is 2 out of 5.
For the second quarter of 2018, investors should keep an eye on the San José Mine in Argentina.
Because of maintenance activities, San José Mine should deliver a 14.5% increase in the production of gold and a 22% increase in the production of silver in the second-quarter of 2018. Second-quarter production of GEO should also be nearly 4% higher than the prior-year quarter.
On a consolidated basis McEwen produced 35,069 ounces of gold and 695,651 ounces of silver. Gold output was 74.5% higher than the prior-year quarter while the production of the grey metal declined 3.8% from the comparable of fiscal 2017.
McEwen expects to produce 128,000 ounces of gold and approximately 3.23 million ounces of silver in 2018. McEwen hopes to produce gold and silver outputs that lead to a volume of 171,000 ounces of gold equivalent in 2018.
McEwen is a debt-free mining operator with a liquidity of $47 million.
(Disclosure: I have no positions in any stock mentioned in this article).
