McEwen Mining, a prominent Canadian gold company, anticipates a decrease in gold-equivalent ounces (GEOs) production across its operations for 2024, despite a notable improvement in 2023 where it met its yearly guidance.
The company achieved consolidated production of 154,600 GEOs last year, aligning with its earlier forecast of 150,000-170,000 GEOs. Notably, the fourth quarter saw a contribution of 49,850 GEOs, driven by record performances at the Gold Bar mine in Nevada.
Additionally, the Fox complex in Ontario maintained its steady production, surpassing 10,000 GEOs for the recent quarter. Overcoming operational challenges, the San José mine in Argentina produced 19,150 GEOs in Q4.
Throughout the year, Gold Bar and Fox remained within their production guidance range, with Gold Bar producing 43,700 GEOs and Fox producing 44,450 GEOs. However, San José fell slightly below its guidance, producing 65,650 GEOs.
Looking forward, McEwen indicated that the Fox and San José operations, managed by partner Hochschild Mining, are likely to experience reduced output in 2024. The company has set a guidance range of 130,000-145,000 GEOs for the year.
At Fox, plans include commencing the development of underground ramp access to the Stock orebodies, particularly Stock West, which is expected to be the primary feed source after completing mining at the Froome deposit in 2026. This initiative is partly funded by the $16.1 million flow-through financing completed in December.
Regarding Gold Bar, higher production is anticipated in the first half of 2024 compared to the second half, attributed to a scheduled waste stripping phase in the Pick pit to prepare for the 2025 mining program. McEwen continues to optimize the mining sequence.
McEwen Mining’s shares closed Monday’s session 1.1% higher at $6.94, with a market capitalization of $342 million.
