McEwen Mining Maintains Production Guidance Despite Robbery

McEwen Mining Inc. (TSX:MUX,NYSE:MUX) provided an update on the robbery that took place at its Mexico-based El Gallo mine on Tuesday. The company said that although about 7,000 ounces of gold were stolen that day, it is maintaining its 2015 production guidance for the mine.

At the current gold price of about $1,200 per ounce, those 7,000 ounces are worth about $8.4 million.

As quoted in the press release:

Gold production in Q1 2015 was 15,243 ounces, which was 17% higher than guidance due to a 4% higher than expected gold grade and better recoveries.

Production in Q2 2015 is expected to be strong at 14,000 ounces of gold, despite the theft of 7,000 ounces. We appreciate the rapid response of the Sinaloa State and local police who continue to investigate with our full cooperation. We are also working with our insurance carrier and expect to recover the majority of the losses.

Due to upgrades to the processing plant, approximately 30 days of production in concentrates were in the refinery at the time of the robbery. Fortunately, no one was seriously injured and there was no damage to the plant. Mining and processing activities were not impacted and continue uninterrupted.

Management is reviewing its security procedures and will implement additional and more robust systems in the near future.

Click here to read the full McEwen Mining Inc. (TSX:MUX,NYSE:MUX) press release.