Rob McEwen puts another $15m in McEwen
Reduced cash flow in the first quarter has placed dual-listed McEwen Mining in a “challenging position”, prompting chief owner and CEO Rob McEwen to invest another $15-million into the company.
The company also extended the maturity of its $50-million term loan to enable it to invest in production growth and mine life extensions before debt retire.
McEwen Mining has missed its financial forecast for the March quarter, owing to lower production at the Fox Complex and at San Jose. Both operations have suffered a loss of manpower owing to Covid-19. Very cold weather and equipment failures also occurred at the Fox mill.
Gold Bar, however, achieved its production target and Los Azules has made some advances, McEwen said.
The company on March 10 provided a production and cost guidance of 153 000 to 172 000 gold-equivalent ounces (GEOs), at all-in sustaining cost (AISC) of $1 570/GEO to $1 690/GEO at the Gold Bar and Fox mines. At San Jose, production is estimated to be 69 500 to 77 500 GEOs at an AISC of $1 330/GEO to $1 370/GEO.
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