Sunday, November 10, 2013

Brutal Past 24 Months For Precious Metals Investors, Nearing A Bottom – Rob McEwen MUX, TNR.v, GLD, GDX, SLV, CU


  Rob McEwen can not control Gold, Silver or Copper prices, but he can control the management of his company. McEwen Mining has delivered solid results in the very tough environment and shows very entrepreneurial approach to advance its business plan. 
  We would like to see the more aggressive approach in the promoting and marketing of Los Azules copper deposit in Argentina now. This is truly the world class asset, according to McEwen Mining and this project deserves the spotlights on the scene where Chinese companies are scooping all available resources now.  After delivered PEA in September and recent elections in Argentina there is a window of opportunity to capitalise on the recovery - like Lumina Copper price action has demonstrated this year. Las Bambas copper project bidding war amongst Chinese conglomerates is just another reminder about the smart money actions in this market.
  Without the advance of Los Azules the dream about S&P 500 in 2015 will stay as a dream, but any development here will be the Catalyst for McEwen Mining and TNR Gold. McEwen Mining is very heavily shorted and it will provide the rocket fuel for the launch.
  Among other positive developments we would like to mention ongoing exploration on a number of projects and combination of the McEwen Mining and Hochschild Mining properties around San Jose Mine in Argentina; received environmental permit for El Galo 2 in Mexico and 10 million in tax return from Mexico in addition to the reported cash position. 
  Very strict cost control in mining and production and, particularly, in the new projects development demonstrates the solid potential of Rob's team. Higher Gold and Silver prices will help to ignite this story again, but Los Azules development is potentially the most explosive value driver with the right amount of effort on its marketing now. Today's perception of country Risk can be the main valuation driver tomorrow.

'Argentina presents incredible long-term growth opportunities,' Fintech chief tells WSJ

TNR Gold: McEwen Mining Q3 2013 Results And Los Azules Copper Project 43-101 Report TNR.v, MUX, GDX

"McEwen Mining has published 43-101 report on Los Azules copper project in Argentina and now industry insiders will be busy crunching the numbers. 

Copper M&A: Peru Officials Meeting Chinalco, Minmetals This Week on Las Bambas Bids MUX, TNR.v, LCC.v, CU, GDX

 "With Chinese economy in the recovery mode quest by Chinese companies for the best mining assets is ongoing worldwide. Lumina Copper is getting some bids today again and Los Azules copper will be getting on the investors' radar screens with the changing political landscape in Argentina again."

"Los Azules Copper ProjectArgentina (100%)
In September, McEwen Mining announced an updated PEA for the Los Azules Copper project. The results from the PEA demonstrate that Los Azules has the potential to become one of the largest, lowest cost copper mines in the world. In addition, there remains excellent exploration potential to further expand the size of the existing mineral resource. Highlights from the PEA are shown below:
  • Pre-tax Net Present Value of $3.0 billion (8% discount rate) and an Internal Rate of Return of 17.7%.
  • Annual copper production during years 1-5 to average 258,000 tonnes (568 million lbs), which would have placed it in the top 3%1 of copper mines in the world during 2012. Life of mine annual copper production to average 171,000 tonnes (377 million lbs) over 35 years.
  • Indicated resource of 5.4 billion pounds of copper (grading 0.63% Cu) and 0.8 million ounces of gold (389 million tonnes with a cut-off grade of 0.35% Cu) and Inferred resource of 14.3 billion pounds of copper (grading 0.46%) and 2.6 million ounces of gold (1,397 million tonnes with a cut-off grade of 0.35% Cu).
  • Initial capital costs to construct the mine and process plant have been estimated at $3.9 billionwith a payback on a pre-tax basis has been estimated at 3.8 years at $3.00/lb copper and$1,300/oz gold.
1 Based on internal market data.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
The PEA has been filed under the Company's profile on SEDAR ( pursuant to the requirements of Canadian National Instrument 43-101 and is also available on the Company's website -"

All slides are from McEwen Mining presentations.


Brutal Past 24 Months For Precious Metals Investors, Nearing A Bottom – Rob McEwen

By Alex Létourneau of Kitco News
Friday November 8, 2013 12:50 PM

Rob McEwen
Rob McEwen, Chairman and Chief Executive Officer McEwen Mining Inc.
(Kitco News) - McEwen Mining Inc. (TSX, NYSE: MUX) swung to profit in the third quarter of 2013, posting a profit of  $3.3 million, or 1 cent per share, compared to a loss of $2.7 million, or -1 cent per share, in last year’s comparative quarter.
Gold equivalent production jumped 45% to 36,494 ounces of gold year-on-year, breaking down to 20,483 ounces of gold and 832,594 ounces of silver, the company said.
Rob McEwen, chairman and chief executive officer of McEwen Mining, was blunt about the past few years for precious metals investors on a conference call late Friday morning.
“The past 24 months for precious metals investors has been brutal, but I feel like we’re nearing a bottom,” McEwen said on the call. “We had a brief and explosive rally in August, which I see as a good indication of a potential for large gains going forward.
“And despite a decidedly ugly mood amongst investors, analysts and market commentators, I believe it is an excellent time to be a contrarian,” he added.
The company posted a solid production quarter, and McEwen maintained that the company will meet its 2013 gold equivalent production guidance of 130,000 ounces.
He also highlighted McEwen Mining’s performance during the mining industry’s race to cut costs.
“While our cash cost production and all-in sustaining costs per ounce are in line with industry averages, we have been out-performing the industry in terms of bringing mines into production,” said McEwen.
The company’s cash cost for gold equivalent ounce produced was $749 an ounce in the quarter. All-in sustaining cost per ounce was $1,081, the company said.
McEwen Mining’s El Gallo 1 mine expansion is ahead of schedule with completion expected near the end of the first quarter of 2014, instead of the second quarter of 2014. The estimated cost to complete the expansion has been reduced to $3 million from $5 million, the company said.
“We have delivered on schedule, and below budget. Financially we are better positioned than most in the industry, we are not under any financial pressure,” said McEwen. “We have no debt. We entered the quarter with $32 million in cash, an amount sufficient to complete the expansion at El Gallo 1, fund out current operations and explorations into 2015, assuming these prices don’t change.”
McEwen also noted that El Gallo 2 silver mine is the company’s focus. The project received two of its three final permits to construct and operate the mine. McEwen said once the final permit is in, the company will be able to begin construction.
In his concluding statement, McEwen said he forecasts a bounce back in metal prices.
“[B]efore the end of 2013, I expect we’re going to see higher gold, silver and copper prices, which will be positive for us, and the industry,” McEwen said. “An important point I’d like to stress is that we have not sold our future earnings to royalty and metals streaming companies, and we have no plans to hedge.”
To contact me regarding a story or feedback, please follow my Twitter account @alex_letourneau
By Alex Létourneau of Kitco News"
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