Analyst Heiko Ihle of H.C. Wainwright reiterated a Buy rating on McEwen Mining (MUX – Research Report), with a price target of $18.50.
Heiko Ihle has given his Buy rating on McEwen Mining due to a combination of factors. McEwen Mining reported a significant increase in its revenue in the third quarter of 2023, which was $38.4 million compared to $26.0 million in the same period the previous year. This was mainly due to the sale of 20,620 gold equivalent ounces at an average price of $1,920 per ounce, which represented an increase of 34% and 10% year-over-year, respectively. Despite recording a net loss, the company’s gross profit still rose to $3.8 million.
In addition, McEwen Mining made significant progress at the Los Azules site during the quarter. The majority of the company’s expenditures went towards the construction of a winter camp, improved road access, and the construction of a logistics facility in San Juan. The company also completed a variety of planned activities for the next phase of drilling at McEwen Copper. Despite a lower cash balance quarter-over-quarter, the valuation of the producing assets owned by the company, based on a discounted cash flow (DCF) remained steady. These factors, along with the company’s core assets value and the deduction of its debt, led to a net asset value (NAV) of $18.44 per share, rounded to a final target price of $18.50, substantiating the Buy rating.
In another report released on October 31, Alliance Global Partners also maintained a Buy rating on the stock with a $11.75 price target.
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McEwen Mining (MUX) Company Description:
McEwen Mining, Inc. is a mining and minerals production and exploration company, which focuses on base metals in Argentina, Mexico and the United States. It operates through the following geographical segments: Mexico, MSC, Nevada, Los Azules, Canada and Other. The company was founded on July 24, 1979 and is headquartered in Toronto, Canada.
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