McEwen Mining closed total fiscal 2018 with a loss but its stock price is up ter early trading
McEwen Mining Inc. (NYSE:MUX) rebounded te early trading after a 1.9% loss on the high-heeled shoes of Friday’s earnings report, which demonstrated a loss of Trio cents vanaf diluted share or a loss of $Ten.6 million on a consolidated fundament for total year 2018.
The stock gained more than 1% to $Two.12 a share te early trading.
The earnings loss wasgoed mainly due to a series of cost increases on a year overheen year onderstel: production costs rose 61% to $45.Eighteen million, exploration costs enlargened 122.6% to $17.71 million, general and administrative costs rose by 48.2% to $Legal.8 million.
McEwen also charged the yearly income statement $Two.06 million, a 246% increase year overheen year, for estimates revision and for asset reclamation obligations.
Concerning revenue for total fiscal 2018, McEwen invoiced customers who bought gold and silver from the company for $67.72 million. This wasgoed a 12.1% growth on a year overheen year ondergrond. This growth has bot attributed by McEwen Mining to the addition of the Black Fox mine (Ontario, Canada) to the company&rsquo,s portfolio of productive assets. The mine wasgoed purchased by McEwen last year ter October and contributed to the miner&rsquo,s total revenue of 2018 with $11.6 million coming from the sale of ounces of gold.
Compared to a year ago, the company sold a lower volume of the yellow metal at El Gallo 1 mine (Mexico) sparking a $Four.Five million decrease on a year overheen year onderstel. The decline affect scrape revenues too much.
For 2018, the company reported a specie outflow of $15.Four million from operations. This wasgoed due &ndash, spil McEwen explained &ndash, to the sustainment of &ldquo,higher exploration, development and operating expenses&rdquo,. Thesis payments were related to the company&rsquo,s plans for long-term growth.
Ter addition, spil of Feb. 21, McEwen had total means of $60 million te specie on palm, securities and precious metals.
McEwen Mining is a debt-free precious metal mining company.
For the 52-weeks through Feb. 23 McEwen lost 38.35% and outperformed the Van Eck Vectors Gold Miners ETF (GDX) by 34.54%. The stock is trading below the 200, 100 and 50-SMA lines spil you can see ter the below chart sourced from Yahoo Finance:
Source: Yahoo Finance
The stock is trading only 31 cents above the 52-weeks low of $1.82 vanaf share. The 52-week high is $Trio.82 vanaf share.
McEwen is trading its book value vanaf share at 1.35 times versus an industry average of Two.05 times.
The recommendation rating is Two out of a total of Five. With an average target price of $Trio.67 vanaf share, analysts predict a 75.6% growth from the current market value. An updated pre-feasibility investigate for the Mexican El Gallo Silver Project (100%), which should be finalized ter the 2nd quarter of the current year, should play te favour to the stock appreciation ter 2018.
At El Gallo, the company is studying options to embark the project minimizing spil much spil possible the required investment and the influence of guessed operating costs on the production of the grey metal that can be potentially milked from silver reserves.
(Disclosure: I have no positions ter any security mentioned te this article.)