McEwen Mining Reports Q1 2015 Net Income of $6 Million

McEwen Mining Inc. (TSX:MUX,NYSE:MUX) announced its financial results for the first quarter of 2015, noting that its earnings from mining operations came in at $17.2 million, while cash flow from operations was $5.6 million.

Meanwhile, gold equivalent production was 33,434 ounces, with cash costs and all-in sustaining costs coming in at $674 and $948 per ounce, respectively.

More detailed highlights include:

Cash Flow

Q1 net cash flow generated from operations was $5.6 million compared to net cash of $3.9 millionused for operations in Q1 2014. Our El Gallo Mine contributed $22 million in gold and silver sales compared to $10.7 million in Q1 2014. The higher cash flow was reflected by increased number of ounces sold during the quarter.

Net Income

Consolidated net income was $6 million, or $0.02 per share for Q1 2015, compared to net income of $17.9 million, or $0.06 per share for Q1 2014 (refer to details in adjusted net income below).

Adjusted Net Income

Adjusted net income for Q1 2015, which removes the impact of the foreign currency gains and income tax recoveries, both resulting from the devaluation of the Argentine peso relative to the U.S. dollar was $1.9 million, or $0.01 per share. This compares to an adjusted net loss of $6.2 million or $(0.02) per share, for Q1 2014.

Earnings from Operations

Earnings from operations for Q1 2015 was $17.2 million, compared to earnings of $11.4 millionfor Q1 2014. The increase was attributable to an increase in gold and silver sales (3), resulting from increased production at El Gallo.

Production

Gold equivalent production in Q1 2015 totaled 33,434 ounces, which includes 18,043 gold equivalent ounces attributable to us from our 49% interest in the San José Mine in Argentina, and 15,391 gold equivalent ounces from the El Gallo Mine in Mexico. Production increased year-over-year due to higher grades and better recoveries at the El Gallo Mine. Gold grades were 3.17 grams per tonne for Q1 compared to 1.16 grams per tonne in Q1, 2014.

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