Highlights of the Day:
1. McEwen Mining Inc. MUX unveiled its fourth-quarter and full-year 2023 financial results recently.
In Q4, the company reported a significant net income of $137.9 million ($2.88 per share), highlighting a remarkable turnaround from the loss of $37.4 million ($0.79 per share) in Q4 2022.
Boosted by enhanced mining efficiencies, McEwen Mining set new production milestones across daily, monthly, and quarterly periods. Noteworthy was the Fox Complex’s record-breaking daily mill throughput of 1,300 tons per day.
For the entire year, the company posted a net income of $54.7 million ($1.15 per share), a substantial improvement over the $81.1 million loss ($1.71 per share) in 2022.
Although gold production levels at the Fox Complex and Gold Bar mine exceeded guidance targets, the San José mine slightly fell short. Cash costs and all-in sustaining costs, however, landed 12-18% above predictions.
Following a financing round in October 2023, McEwen Mining’s interest in McEwen Copper decreased to 47.7%. Consequently, the firm shifted to equity accounting, marking a $224 million gain and a $384 million valuation for its investment.
2. Peru’s primary publicly traded precious metals miner, Compañia de Minas Buenaventura S.A.A. BVN shared its financial outcomes for Q4 and full-year 2023.
During Q4, Buenaventura reported an EBITDA of $116.4 million, a significant rise from $76.9 million in Q4 2022. The yearly EBITDA figure also soared to $238.3 million from $173.1 million in FY22.
However, the company faced a net loss of $3.0 million in Q4, a drop from the $56.7 million net income in the corresponding quarter of 2022. Annual net income for 2023 stood at $39.5 million, a decrease from the previous year’s $124.4 million.
Ending the year with a cash reserve of $219.8 million, Buenaventura successfully reduced net debt to $486.8 million. The firm completed the sale of Contacto to Howden for $33.7 million, initiated silver production at Yumpag, and faced a $113.2 million provision tied to a Supreme Court decision.
Furthermore, Buenaventura received $49.0 million in dividends from Cerro Verde in December, totaling $146.9 million for 2023. A proposed dividend payout of $0.0726 per share/ADS was also brought to the table.
3. Royal Gold, Inc. RGLD declared a dividend of 40 cents per share for the second quarter as endorsed by its board of directors.
This dividend is slated for distribution on Friday, April 19, 2024, to shareholders as of the market close on Friday, April 5, 2024.
4. HC Wainwright & Co. analyst Heiko Ihle reiterated a Buy rating on U.S. Gold Corp USAU and maintained a price target of $11.
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