McEwen Mining Inc
For the period ended Sep 30, 2024. Filed Nov 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 5, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Minera Santa Cruz Segment - Argentina
The Minera Santa Cruz Segment is comprised of a 49% interest in the San José mine, located in Santa Cruz, Argentina. Hochschild is the majority owner and operator of the San José mine.
The following table sets out certain operating results for the San José mine for the three and nine months ended September 30, 2024, and 2023 on a 100% basis:
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · Three months ended September 30, · · Nine months ended September 30, | ||||||||||||
| · 2024 · 2023 · 2024 · 2023 | ||||||||||||
| Operating Results | | (in thousands, except otherwise indicated) | ||||||||||
| San José Mine—100% basis | | | | | | | | | | | | |
| Stacked mineralized material (t) | | 171 | | 152 | | 467 | | 390 | ||||
| Average grade mined (g/t) | | | | | | | | | | | | |
| Gold | | 4.0 | | 5.0 | | 3.7 | | 4.9 | ||||
| Silver | | 241 | | 269 | | 225 | | 270 | ||||
| Processed mineralized material (t) | | 152 | | 153 | | 421 | | 425 | ||||
| Average grade processed (g/t) | | | | | | | | | | | | |
| Gold | | 3.9 | | 5.2 | | 4.3 | | 4.9 | ||||
| Silver | | 227 | | 271 | | 244 | | 260 | ||||
| Average recovery (%): | | | | | | | | | | | | |
| Gold | | 86.2 | | 87.1 | | 86.5 | | 85.7 | ||||
| Silver | | 86.9 | | 88.9 | | 87.4 | | 87.4 | ||||
| Gold ounces: | | | | | | | | | | | | |
| Produced | | 16.6 | | 22.1 | | 50.1 | | 57.1 | ||||
| Sold | | 15.8 | | 18.0 | | 51.3 | | 51.5 | ||||
| Silver ounces: | | | | | | | | | | | | |
| Produced | | 965 | | 1,184 | | 2,895 | | 3,125 | ||||
| Sold | | 928 | | 994 | | 2,957 | | 2,979 | ||||
| GEOs: | | | | | | | | | | | | |
| Produced | | 27.9 | | 36.6 | | 84.3 | | 95.3 | ||||
| Sold | | 26.7 | | 29.8 | | 86.2 | | 87.5 | ||||
| Revenue from gold and silver sales | | $70,361 | | $64,495 | | $210,636 | | $179,443 | ||||
| Average realized price: | | | | | | | | | | | | |
| Gold ($/Au oz) | | $2,639 | | $2,138 | | $2,445 | | $2,044 | ||||
| Silver ($/Ag oz) | | $30.83 | | $26.08 | | $28.82 | | $24.88 | ||||
| Cash costs (1) | | $58,031 | | $43,380 | | $154,136 | | $131,434 | ||||
| Cash costs per ounce sold ($/GEO) (1) | | $2,173 | | $1,445 | | $1,788 | | $1,505 | ||||
| All‑in sustaining costs (1) | | $71,434 | | $58,617 | | $189,128 | | $172,052 | ||||
| AISC per ounce sold ($/GEO) (1) | | $2,675 | | $1,953 | | $2,194 | | $1,971 | ||||
| Gold : Silver ratio | | | 85 : 1 | | 82 : 1 | | 85 : 1 | | 83 : 1 | |||
(1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 33 for additional information.
The analysis below compares the operating and financial results of MSC on a 100% basis.
Q3/24 compared to Q3/2023
On a 100% basis, the San José mine produced 27,927 GEOs in Q3/24, compared to 36,597 in Q3/23. The decrease in GEOs produced was driven by a 24% and 16% decrease in gold and silver head grades processed, respectively.
Revenue from gold and silver sales was $70.4 million in Q3/24, compared to $64.5 million in Q3/23. The increase was driven by a higher average realized gold price per ounce of $2,639/oz gold in Q3/24 compared with $2,138/oz gold in Q3/23, and offset by an 11% decrease in GEOs sold.
Production costs applicable to sales were $58.0 million during Q3/24, compared to $43.4 million during Q3/23. While cost inflation remained high from an Argentine perspective, the relative strength of the peso against the US Dollar continued to increase costs in US Dollar terms.
Cash costs andAISC per GEO sold were $2,173 and $2,675 in Q3/24, respectively, compared to $1,445 and $1,953 in Q3/23, respectively. Negative foreign exchange impacts, combined with temporary lower than expected mined grades, resulted in higher than expected unit costs.
Investment in MSC
Our 49% attributable share of operations from our investment in MSC in Q3/24 resulted in a loss of $1.2 million, compared to a loss of $2.7 million in Q3/23. Despite higher than planned unit costs, the metals price environment has allowed the operation to strengthen its liquidity, improving its working capital balance to $75.5 million as at September 30, 2024, while also investing $8.5 million in exploration expenditures and $3.5 million in mill expansion costs during 2024.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.