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McEwen Mining reports Q3 profit

8th November 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – US miner McEwen Mining on Friday reported a third-quarter profit of $3.3-million, or $0.01 a share, compared with a net loss of $2.7-million, or $0.01 a share, for the same period in 2012.

The NYSE- and TSX-listed company said results for the three months ended September 30 were mainly boosted by the gold and silver sales from the El Gallo 1 mine, in Mexico, and an increase in recovering income taxes, which was partly offset by lower income from its investment in Minera Santa Cruz (MSC), a joint venture between Hochschild Mining (51%) and McEwen Mining (49%), which owns the San José mine, in Argentina.

Gold and silver sales in the quarter totalled $11.8-million, compared with $500 000 for the same period in 2012, owing to the El Gallo 1 mine only entering commercial production for accounting purposes on September 1, 2012.

The consolidated output in the quarter totalled 36 494 gold-equivalent ounces, which included 28 467 gold-equivalent ounces attributable to McEwen from its interest in the San José mine, and 8 027 gold-equivalent ounces from El Gallo 1.

Production during the quarter benefited from higher average grades, which saw the gold grades increase 26% year-on-year to 6.59 g/t, up from 5.24 g/t, and that of silver rising 11% to 446 g/t, up from 402 g/t.

For the period, total cash costs fell 7% year-on-year to $749 per gold-equivalent ounce, all-in sustaining costs dropped 13% year-on-year to $1 081 per gold-equivalent ounce and all-in costs for all the company’s operations declined by 27% year-on-year to $1 245 per gold-equivalent ounce.

McEwen sold 36 512 gold-equivalent ounces in the quarter, which included 27 711 oz attributable to it from San José, and 8 801 oz from El Gallo 1.

The average realised price for gold fell 19% to $1 378/oz and that of silver fell 29% to $23.19/oz.

The company ended the quarter with $32.6-million in cash and precious metals and has no debt.

Edited by Creamer Media Reporter

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