TORONTO (miningweekly.com) – Gold and copper miner McEwen Mining on Friday reported record gold-equivalent production of 35 955 oz, comprising 20 988 oz of gold and 778 308 oz of silver, in the second quarter of the year.
Production was up 44% year-on-year and 20% higher than in the first quarter.
The company, under the leadership of chief owner Rob McEwen, said it was on track to meet its 130 000 gold-equivalent-ounce production target for the year.
Total cash costs were $744/oz of gold equivalent, 9% lower year-on-year and 22% lower quarter-on-quarter, while all-in sustaining costs were $1 108/oz of gold equivalent, 33% lower than in the first quarter.
The company said the decline in metal prices and potential costs associated with a proposed mineral reserve tax in the Santa Cruz province, in Argentina, had prompted the company to perform an impairment test on its 49% interest in the San José mine and other mineral property interests in the country.
This resulted in the company recording an after-tax noncash charge of $123.6-million. Of that amount $95.9-million was related to the carrying value of the San José mine and $27.7-million to mineral property interests in the province.
During the quarter, the El Gallo 1 and 2 measured and indicated gold-equivalent resources increased by 34% to 2.1-million ounces, comprising 48.2-million tonnes grading 1.37 g/t gold equivalent.
At June 30, McEwen had $39.3-million in liquid assets and no debt.
“Our two mines performed well in the second quarter. Production was up and costs were down. We are expecting similar performance during the second half of the year and remain on target to reach our 2013 production goals,” McEwen said.