McEwen Mining Reports Q1 Production Results in Wake of Gold Robbery

McEwen Mining Inc. (TSX:MUX,NYSE:MUX) released its production results for Q1 2015, noting that compared to the year-ago period its gold production rose 23 percent while its silver production fell 10 percent.

The news is no doubt a welcome change for investors given the negative press McEwen has been attracting lately. At the beginning of the month the company was robbed of an estimated 900 kilograms of gold-bearing concentrate containing 7,000 ounces of gold. Since then Chief Owner Rob McEwen has been lambasted for comments indicating that his company has a good relationship with Mexican drug cartels.

Q1 highlights from El Gallo 1 in Mexico include:

Gold production in Q1 2015 was 15,243 gold ounces, which was 17% higher than guidance due to a higher gold grade and recovery. The average gold grade crushed was 3.17 gpt.

Gold recoveries are calculated from the ratio of total ounces produced to contained ounces stacked and were low in Q1 2015 as there was only one gold pour in March. If in the first quarter we had poured the 7,000 ounces that were stolen, the recovery rate would have been 68%.

Production in Q2 2015 is expected to be 14,000 ounces of gold and for the year remains at 50,000 ounces. Management is reviewing guidance of all-in sustaining costs of $750 per gold ounce due to the yet unknown final insurance proceeds from the stolen gold and planned security upgrades.

Q1 highlights from San Jose in Argentina include:

Our attributable production from San José in Q1 2015 was 9,453 gold ounces and 644,255 silver ounces.

Compared to Q1 2014, gold and silver ounces produced were down 12% and 11% respectively. This is primarily the result of a 19% decrease in tonnes treated due to a planned shutdown of the processing plant for mandatory vacation in the quarter.

Full year guidance for San José remains at 46,500 gold ounces and 3.1 million silver ounces net to McEwen Mining at all-in sustaining costs of $1,225 per gold equivalent ounces.

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