Canada's McEwen Q4 revenue rises on higher gold prices

Overview

• Canada gold and silver miner's Q4 revenue rose 28% yr/yr, driven by higher gold prices

• Q4 net income swung to profit from prior yr loss

• Adjusted EBITDA for Q4 more than doubled yr/yr

Outlook

• Company sees 2026 production at 114,000-126,000 GEOs with cash costs of $2,100-$2,300

• McEwen targets 250,000-300,000 GEOs annual production by 2030 while lowering costs

• Los Azules copper project aims for 205 ktpa copper production in first five years post-construction

Result Drivers

• HIGHER GOLD PRICES - Co said Q4 revenue and gross margins benefited from a 28% increase in average realized gold price per GEO

• INCREASED PRODUCTION - Co attributed higher Q4 gross profit and margin to increased gold production volumes, particularly at San José Mine

• DEFERRED TAX ASSET - Net income benefited from recognition of a deferred tax asset relating to expected use of tax losses in the U.S.

Company press release: ID:nGNX68xftK

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy"

• Wall Street's median 12-month price target for McEwen Inc is $30.00, about 20.7% above its March 11 closing price of $24.86

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

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