TORONTO (miningweekly.com) – Toronto-based McEwen Mining on Tuesday reported that its 2013 full-year output had risen by 33% over 2012, boosted by the El Gallo 1 mine, in Mexico, completing its first full year of production.

For the full year, NYSE- and TSX-listed McEwen’s output totalled 139 455 gold-equivalent ounces (GEO), comprising 79 158 oz of gold and 3.14-million ounces of silver.

During the fourth quarter ended December 31, the company produced 37 167 GEO, comprising 20 686 oz of gold and 857 011 oz of silver, which was 15% higher than in the comparable quarter of 2012.

McEwen’s 2014 output was forecast to be roughly in line with 2013, between 135 000 GEO and 140 000 GEO, comprising about 81 000 oz of gold and 3.23-million ounces of silver.

The company expected production during the second half of 2014 to be more that the first half, owing to the expansion at El Gallo 1 being scheduled to be complete at the end of the first quarter, and ramping up during the second quarter.

Production costs in 2014 were expected to be similar to 2013, with cash costs between $750/GEO and $850/GEO and all-in sustaining costs between $1 100/GEO and $1 200/GEO.

Further, McEwen said it expected to produce 170 000 GEO in 2015, excluding any potential production from El Gallo 2. The decision as to whether to proceed with El Gallo 2 was still pending and subject to a number of factors, including obtaining the required financing.

“In addition to executing our organic growth plans, we continue to analyse M&A [merger and acquisitions] opportunities. Our ideal candidate would significantly increase our production, lower our cost profile, and have cash and free cash flow to facilitate the construction of El Gallo 2. Our geographic focus remains the Americas.

“As the company’s largest shareholder, I can say management is focused on growth that produces a higher share value and price. It is not growth just to be a larger company. The fact that I do not take a salary means that the only way I will make money is the same as all the shareholders do and that is through a higher share price," chairperson and chief owner Rob McEwen said.

McEwen Mining’s TSX-listed stock rose 3.57% to C$2.32 apiece on Tuesday morning, having dropped 39.62% in the last year.