McEwen Mining Inc ((MUX)) delivered a candid assessment of its third-quarter performance, highlighting both operational challenges and signs of recovery. Management described the quarter as "difficult and unacceptable," citing issues such as high costs, severe weather, and unresolved construction financing. Despite these setbacks, the company pointed to improving results in October, strong liquidity, and progress toward long-term growth goals.
The company reaffirmed its target to double gold production by 2030, aiming for annual output of 250,000 to 300,000 ounces. Gold Bar, one of its key operations, recorded its strongest production month in 15 months in October and returned to positive cash flow. Management expects similar production levels through November and December, with average monthly output of about 3,000 gold equivalent ounces.
McEwen Mining is shifting its portfolio toward longer-duration mines, with Stock Mine expected to operate for 8.5 to 9 years and Grey Fox for about 15 years. The company also made progress on its Los Azules project, receiving key permits and advancing engineering work. However, funding remains an unresolved challenge, with no committed sources for construction financing.
Looking ahead, the company anticipates a strong fourth quarter from San Jose, with production expected to recover and meet annual guidance. The updated feasibility study for Los Azules is targeted for February 2027, reflecting better geotechnical results and a higher long-term copper price. Despite these positive outlook, management acknowledged significant execution risks, particularly around site access and project financing.