McEwen Mining Sees 4.7% Total Production Growth In 2017
(Kitco News)- McEwen mining saw total gold and silver production growby 4.7% in 2017, a year described by CEO Rob McEwen as one of growth andacquisition.
Monday, in its fourth-quarter and full year production report,McEwen Mining (NYSE: MUX, TSX: MUX) said it produced 109,947 ounces of gold in 2017, in line withcompany guidelines and up from 101,481 ounces produced in 2016. Silverproduction for the year totaled 3.178 million ounces, slightly down from thecompany’s guidance, and down from 3.3 million ounces produced in the previousyear.
Total gold equivalent ounces came in at 152,329, up from145,530 ounces produced in 2016.
The company’s San Jos?(C) mine, in Argentina, had one of thebest performances in 2017 compared to the company’s other operations. Itproduced 49,233 gold ounces, up 6% compared to 2016. The mine produced3,159,352 silver ounces, down 4% from the previous year.
McEwen also reported 14,279 ounces of gold was producedat its newly acquired Black Fox property. The company finalized the purchase ofthe Timmins-region property in early October.
Looking ahead, in recent interviews with Kitco News, RobMcEwen said that he sees strong opportunities in 2018 as he continues to workon his long-term goal of becoming only the second mining company in the worldto be listed in the S&P 500.
Along with a $10-million exploration project around itsBlack Fox property, the company is moving forward with the construction of itsNevada-based Gold Bar project, which is expected to start production in 2019.
While the mining sector, along with McEwen mining, hasstruggled to gain investor interest, the CEO said that he remains optimisticthat sentiment will shift in 2018.
“Ifyou compared the Goldman Sachs Commodity Index to the S&P 500, commodityprices are at their lowest point since 1971,” he told Kitco News. “On arisk/reward basis, there is not much more left on the downside and lots ofpotential on the upside.”
He added that he sees higher gold prices lifting miningshares as the U.S. dollar weakens.
On Monday, the U.S. Dollar Index, fell to itslowest level in three years. At the same time gold prices, in electronictrading, have pushed to their highest level in four-months, with February goldfutures last trading at $1.240.50 an ounce, up 0.42% on the day.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.