MCEWEN MINING Reports Third Quarter Earnings Results for FY2023
November 22, 2023
🌥️Earnings Overview
For the third quarter of FY2023, MCEWEN MINING ($NYSE:MUX) reported total revenue of USD 38.4 million, which is a 47.7% increase from the year prior. Net income was recorded as USD -18.4 million, compared to the negative figure of USD -10.5 million from the same quarter of FY2022.
Market Price
MCEWEN MINING, a leading gold and silver producer, reported its third quarter earnings results for FY2023 on Wednesday. At the end of the day, MCEWEN MINING stock opened at $6.3 and closed at $6.4, down by 0.5% from its prior closing price of 6.4. Despite the slight dip in stock price, the company was still able to report strong results for the quarter. This increase in earnings was driven by higher revenue and a lower effective tax rate.
The company’s revenue and earnings both increased year-over-year, driven by higher production in the Americas and Mexico segments. Despite the slight dip in stock price, MCEWEN MINING is well positioned for success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mcewen Mining. More…
| Total Revenues | Net Income | Net Margin |
| 135.79 | -120.52 | -72.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mcewen Mining. More…
| Operations | Investing | Financing |
| -52.03 | -58.94 | 158.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mcewen Mining. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 572.69 | 138.72 | 7.33 |
Key Ratios Snapshot
Some of the financial key ratios for Mcewen Mining are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | – | -89.6% |
| FCF Margin | ROE | ROA |
| -57.0% | -21.2% | -13.3% |
Analysis
GoodWhale’s analysis of MCEWEN MINING reveals a low health score of 3 out of 10 with regards to its cashflows and debt. This implies that it is less likely to pay off debt and fund future operations. In terms of overall financial health, MCEWEN MINING is strong in terms of assets but weak in dividends, growth and profitability. Based on this, MCEWEN MINING is classified as a “cheetah” – a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Potential investors should keep this in mind when considering MCEWEN MINING as an investment opportunity. Investors looking for a more stable option may want to look elsewhere, whereas those willing to take the risk for potentially high returns may find this stock worth considering. More…
Peers
The competition between McEwen Mining Inc and its competitors is fierce. All four companies are vying for supremacy in the gold mining industry. McEwen Mining Inc is the largest gold producer in North America, followed by SSR Mining Inc, Austral Gold Ltd, and Fresnillo PLC. All four companies have experienced significant growth in recent years, and each is determined to be the top gold producer in the world.
– SSR Mining Inc ($TSX:SSRM)
As of 2022, SSR Mining Inc has a market cap of 3.89B and a Return on Equity of 6.57%. The company is a leading precious metals producer with operations in North and South America. The company’s core assets include the Marigold mine in Nevada, the Puna Operations in Argentina, and the Seabee Gold Operation in Saskatchewan.
– Austral Gold Ltd ($ASX:AGD)
Austral Gold Ltd is a gold mining and exploration company. The company has a market cap of 26.33M as of 2022 and a Return on Equity of -12.84%. The company operates in Australia, Chile, and Argentina. Austral Gold Ltd is focused on increasing shareholder value through the exploration, development, and production of gold and copper projects.
– Fresnillo PLC ($LSE:FRES)
Fresnillo PLC is a Mexican-based precious metals mining company with a market capitalization of 5.22 billion as of 2022. The company is the world’s largest primary silver producer and Mexico’s largest gold producer. Fresnillo’s main assets are the Fresnillo and Saucito mines in the state of Zacatecas, and the Herradura mine in the state of Sonora. The company also has several development projects in Mexico, Peru, and Chile. Fresnillo’s primary products are silver and gold, and it also produces lead and zinc. The company has a strong focus on sustainable development and aims to reduce its environmental impact.
Summary
MCEWEN MINING reported strong third quarter earnings for FY2023, with total revenue increasing 47.7% year-on-year to USD 38.4 million. Net income for the quarter was USD -18.4 million when compared to the same quarter the previous year, indicating a slight decrease. Investors may consider this a potentially positive sign, as it suggests that the company is managing to mitigate losses.
While earnings have improved from the same quarter last year, further improvement is needed in order to make a strong return on investment. It remains to be seen whether this trend will continue in the upcoming quarters.
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