Q2 2024 McEwen Mining Inc Earnings Call Transcript
Key Points
- McEwen Mining Inc (MUX) reported its most profitable quarter since 2016, with a gross profit of $10.8 million and adjusted EBITDA of $7.2 million.
- The company's cash position improved significantly, increasing by 77% to $40.7 million, and working capital rose by 28% to $29.1 million.
- McEwen Mining Inc (MUX) increased its investment in McEwen Copper, with the implied value of McEwen Copper rising to $947 million.
- The Argentinean government's legislative changes have improved the investment outlook, potentially benefiting McEwen Copper's Los Azules project.
- The company owns a portfolio of six royalties and three cash-flowing gold and silver mines, with internal asset valuations ranging from $20 to $50 per share.
- Ground conditions at the Fox mine presented challenges, requiring stabilization efforts and adjustments in mining techniques.
- The company's share price does not yet reflect the value of McEwen Copper, despite outperforming several market indices since the copper division's separation.
- Permitting constraints are affecting the timeline for certain projects, such as the ramp back at the Stock mine and the CDE for Mexico.
- The copper market has weakened in recent months, impacting the perceived value of McEwen Copper's assets.
- The company faces uncertainty regarding the timing of permits in Mexico, which could affect project costs and timelines.
Hello, ladies and gentlemen, and welcome to McEwen Mining's second quarter 2024 operating and financial results conference call. Presenting from the company today, Rob McEwen, Chairman and Chief Owner; William Shaver, Chief Operating Officer; Perry Ing, Chief Financial Officer; Jeff Chan, Vice President, Finance; Stefan Spears, Vice President, Corporate Development; Michael Meding, Vice President and General Manager of McEwen Copper; and Carmen Diges, General Counsel and Secretary.
(Operator Instructions)
Again, I'd now like to turn the call over to Mr. Rob McEwen, Chief Owner. Please go ahead, sir.
Thank you very much, operator. Good morning and welcome, ladies and gentlemen. It was a quarter we've all been waiting to see. It was our most profitable quarter since 2016. It was a quarter where our gross profit was $10.8 million and adjusted EBITDA of $7.2 million versus losses recorded in the second quarter of last year. It was a quarter of improved financial liquidity. Our cash was up
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