McEwen Mining (TSX: MUX; NYSE: MUX) stock rose as high as 14.7% on Wednesday as the company reported a loss of $18.5 million in the third quarter, beating consensus estimates.
The 39¢ per share loss bested the Zacks Consensus estimate, which had projected a loss of 77¢. This compares to loss of 21¢ per share a year ago.
The gold and silver mining company posted revenue of $38.4 million in the period.
According to the miner, consolidated gold equivalent production improved by 8% compared to both the previous quarter and last year’s third quarter. McEwen produced 38,500 gold-equivalent oz. in the quarter, and 104,400 oz. for the nine months ended Sept. 30.
The Fox mine complex in Ontario produced 11,200 oz. gold and remains on track to meet guidance of 42,000 to 48,000 oz. gold for the year. The Gold Bar mine in Nevada produced 9,500 oz. of gold, an increase of 20% compared to this year’s second quarter. And its San José mine in Argentina produced 17,800 gold-equivalent oz., an increase of 3% compared to the previous quarter.
The company said it continues to advance exploration at Los Azules in Argentina aiming to deliver all information required for the feasibility study.
During the quarter, it completed planning and preparation work for the 2023-2024 drilling campaign, totalling 48,000 metres, including exploration, infill, geotech, hydrological and hydrogeological drilling. The project is anticipated to produce an annual average of 322 million lb. of copper cathode over 27 years.
McEwen invested $18.5 million in Los Azules copper project during the period, primarily to build a winter camp, further improve road access, and to construct a logistics facility in San Juan.
The company reiterated its consolidated production guidance at the lower end of a range of 150,000 to 170,000 gold-equivalent oz. for the year.
Shares of McEwen surged as high as $10.09 from $8.80, before retreating to $9.63 in afternoon trading. The company has a market capitalization of $301 million.
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