McEwen Mining(US:MUX)2021-11-03 20:01Production and Operations - Consolidated operations produced 114,300 gold equivalent ounces (GEOs) for the nine months ended September 30, 2021, up from 84,600 GEOs in the same period of 2020[117] - Q3/21 production included 42,900 GEOs, with 21,600 attributable GEOs from the San José mine[117] - Production from 100% owned mines was 21,300 gold equivalent ounces (GEOs) in Q3/21, a 46% increase from 14,600 GEOs in Q3/20[126] - Gold Bar produced 12,436 and 33,910 gold equivalent ounces in Q3/21 and 9M/21, reflecting an 82% and 54% increase from the previous year[154] - Production from the Black Fox and Froome mines was 8,258 and 20,558 gold equivalent ounces in Q3/21 and 9M/21, respectively, compared to 5,774 and 16,304 in the same periods of 2020[167] - The Froome mine reached commercial production on September 19, 2021, three months ahead of schedule, contributing significantly to production[165] - Gold and silver production at the San José mine increased by 26% and 38% respectively in Q3/21 compared to Q3/20, attributed to increased processed mineralized material[199] - At the El Gallo Project, gold production decreased to 0.6k ounces in Q3/21 from 1.9k ounces in Q3/20, while silver production dropped to 0.1k ounces from 3.5k ounces in the same period[187] Financial Performance - Revenues for Q3/21 were $37.1 million from the sale of 21,100 GEOs at an average realized price of $1,793 per GEO[117] - Cash gross profit for Q3/21 was $6.4 million, with a net loss of $17.4 million, including $10.3 million spent on exploration and advanced projects[117] - In Q3/21, the company reported a net loss of $17.4 million, or $0.04 per share, compared to a loss of $9.8 million, or $0.02 per share, in Q3/20[123] - Revenue from gold and silver sales in Q3/21 was $37.1 million, a 36% increase compared to $27.4 million in Q3/20, driven by higher production[128] - Cash gross profit for the nine months ended September 30, 2021, was $70,631,000, compared to $54,436,000 for the same period in 2020[219] - Total cash costs for the nine months ended September 30, 2021, were $75,998,000, with a cash cost per ounce of $1,400[227] - Cash costs for the San José mine increased to $47,911,000 in Q3 2021 from $41,512,000 in Q3 2020, representing a 10% increase year-over-year[229] - All-in sustaining costs (AISC) rose to $63,855,000 in Q3 2021 compared to $50,311,000 in Q3 2020, marking a 27% increase[229] Cash and Assets - Cash, cash equivalents, and restricted cash totaled $65.7 million as of September 30, 2021, with $42.6 million allocated for advancing the Los Azules copper project[117] - Positive working capital was reported at $45.8 million[117] - Cash and cash equivalents as of September 30, 2021, were $63.1 million, up from $20.8 million at the end of 2020, primarily due to financing activities[141] - Total liquid assets as of September 30, 2021, amounted to $72,729,000, significantly up from $18,823,000 in 2020, reflecting a 285% increase[235] - The company reported a cash and cash equivalents balance of $63,144,000 as of September 30, 2021, compared to $7,954,000 in 2020, a substantial increase of 694%[235] Exploration and Development - A Preliminary Economic Assessment (PEA) for expanding production from the Fox Complex is expected in Q4/21[117] - The permitting process for accessing ore at the Gold Bar South deposit is in progress, with approvals expected in Q4/21 and plans to initiate production in H2/22[162] - The Preliminary Economic Assessment (PEA) for the Fox Complex is expected to be completed in late Q4/21, aiming to outline a low-cost business case to increase production and mine life[184] - Significant drilling efforts at the Stock property totaled 63,537 feet in Q3/21, focusing on expanding known dimensions of gold mineralization[183] - A 174,000 ft drilling program is planned for the Los Azules project, expected to run through Q2/22, focusing on upgrading mineral resource classifications[212] Market and Pricing - Average realized gold price in 9M/21 was $1,802 per ounce, up from $1,732 per ounce in 9M/20[130] - Average realized price per gold equivalent ounce sold, excluding streaming, was $1,793 in Q3 2021, down from $1,925 in Q3 2020, a decrease of 7%[232] - The average realized price per gold ounce sold was $1,656 in Q3 2021, down from $2,002 in Q3 2020, a decline of 17%[232] - Revenues from gold and silver sales amounted to $101.6 million for the nine months ended September 30, 2021, with a 10% change in commodity prices potentially impacting revenues by approximately $10.2 million[258] Currency and Economic Factors - The Argentine peso devalued by 14.8% during the nine months ended September 30, 2021, compared to a 21% devaluation in the same period of 2020[250] - The Mexican peso devalued by 3.3% during the same period, compared to a 15% devaluation in the prior year[250] - The Canadian dollar experienced a 0.1% devaluation against the U.S. dollar for the nine months ended September 30, 2021[251] - The company does not hedge any of its sales, exposing it to all changes in commodity prices[260] Internal Controls and Compliance - Management evaluated the effectiveness of disclosure controls and procedures as of September 30, 2021, concluding they were effective[268] - There were no changes in internal control over financial reporting during the quarter ended September 30, 2021, that materially affected the controls[268]