McEwen on Track to Achieve 2014 Production Guidance

McEwen Mining Inc. (TSX:MUX,NYSE:MUX) announced its financial and operating results for the second quarter of 2014, commenting that it is still on track to meet its production guidance of 135,000 to 140,000 gold equivalent ounces.

Further, it has completed the El Gallo 1 mine expansion and started commissioning. The company expects the expansion to be fully operational in Q4 of this year.

Other highlights include:

• Gold equivalent production for El Gallo 1 totaled 8,167 ounces (8,113 gold ounces and 3,275 silver ounces). Production decreased due to lower gold grades and downtime at the process plant associated with the commissioning of the mine expansion.

• McEwen Mining’s share of gold equivalent production for San José totaled 23,033 gold equivalent ounces (10,750 gold ounces and 737,001 silver ounces). Production was slightly lower due to a decrease in planned silver grades.

• Total cash costs and all-in sustaining costs were $840 and $1,283 per gold equivalent ounce sold. Total cash costs were higher due to lower production and one time costs and repairs at El Gallo 1. The anticipated increase in ounces in Q4 2014 will have a positive impact on full-year costs.

• Gold Bar has received sufficient underground water rights from the Nevada Division of Water Resources to perform all mine related activities. This permit approval is a significant development for advancing the project.

• Reported a net loss of $104 million or ($0.35) per share in Q2 2014. The net loss for the period is primarily due to an after-tax impairment charge of $98 million related to our Los Azules copper project in Argentina. The Company also spent approximately $3 million on both exploration and general and administrative expenses.

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