Welcome!

News Feed Item

McEwen Mining Financial & Operating Results

Q4 Production 37,167 Gold Eq. Oz. - Cash Cost $751/oz - All-In Sustaining Cost $1,102/oz

TORONTO, ONTARIO -- (Marketwired) -- 03/10/14 -- (All Amounts in US Dollars Unless Otherwise Stated)

McEwen Mining Inc. (NYSE: MUX)(TSX: MUX) is pleased to provide a summary of the Company's Q4 2013 financial and operating results.

Q4 Highlights


--  Company reported a net loss of $11.3 million ($0.04 per share) in Q4.
    The loss included an $18.8 million, ($0.06 per share), net of tax write-
    down of exploration properties in Nevada. Excluding the write-down, the
    Company earned an adjusted net income of $7.5 million ($0.03 per share).

--  Earnings from mining operations(i) during Q4 totaled $6.5 million.
    Despite record production, this is down from $19.2 million in Q4 2012
    and $16.3 million in Q3 2013 due to lower average realized prices for
    both gold and silver of $1,200/oz. and $19.45/oz., respectively.

--  Gold equivalent production(ii) increased to 37,167 ounces (20,686 gold
    ounces and 857,011 silver ounces). This is 15% higher than Q4 2012 and
    2% higher than Q3 2013.

--  Full-year production exceeded guidance by 7%, totaling 139,445 gold
    equivalent ounces. Production was also 33% higher than in 2012.

--  Total cash costs and all-in sustaining costs were $751 and $1,102 per
    gold equivalent ounce. Total cash costs were 12% lower than Q4 2012 and
    consistent with Q3 2013. All-in sustaining costs were 4% higher than Q3
    2013 due to increased exploration expenses and pre-development
    activities in order to access future mining areas.

--  El Gallo 1 mine expansion is ahead of schedule with completion expected
    in early April. The estimated cost of the expansion has been reduced to
    $3 million from $5 million.

--  The El Gallo 2 Environmental Impact Statement (EIS) and Change of Land
    Use were both approved by the Mexican government.

--  At December 31, 2013, the Company had $25.6 million in liquid assets and
    no debt. During the first two months of 2014, McEwen Mining received an
    additional $4 million in dividends from the San Jose mine in Argentina.
    The majority of the dividends have been repatriated to the Company's
    head office in Canada.

(i) Adjusted net income (loss) and earnings from mining operations are financial performance measures with no standardized definition under generally accepted accounting principles in the United States of America ("Non-GAAP measure"). See "Cautionary Note on Non-GAAP Measures" for additional information.

(ii) Gold equivalent calculated by converting silver into gold using a 52:1 exchange ratio. This ratio was established on January 30, 2013 and was used to budget the Company's 2013 gold equivalent production. The silver/gold ratio does not take into account metallurgical recoveries.

Financial Highlights

During Q4 2013 McEwen Mining reported a loss of $11.3 million ($0.04 per share) versus a loss of $26.3 million ($0.10 per share) in the comparable period in 2012 and net income of $3.3 million ($0.01 per share) in Q3 2013. The loss during the quarter included an $18.8 million ($0.06 per share) net of tax, write-down, related to certain exploration properties in Nevada. Excluding this, the Company would have earned an adjusted net income of $7.5 million ($0.03 per share).

Earnings from mining operations during the quarter totaled $6.5 million versus $19.2 million in Q4, 2012 and $16.3 million in Q3 2013. Earnings from mining operations were down despite record production due to lower average realized prices for gold and silver of $1,200/oz. and $19.45/oz., respectively.

At December 31, 2013, McEwen Mining had cash and liquid assets of $25.6 million, comprised of cash totaling $24.3 million and gold and silver of $1.3 million. The Company remains debt free. In addition, McEwen Mining is owed $11.6 million from the Mexican government in the form of a tax refund. The Company believed the refund would have been received by year-end. Due to delays by the Mexican government, the Company now expects to receive all or part of the refund in Q2. Subsequent to year-end McEwen Mining received $4.0 million in dividends from the San Jose mine with the majority having been repatriated back to the Company's head office in Canada.

Major expenditures in Q4 included $0.7 million for the El Gallo 1 mine expansion, $2.8 million in exploration costs, $0.5 million in annual land payments and $3.1 million in general and administrative expenses.

San Jose Mine, Argentina (49%)

Production for McEwen Mining's share in the San Jose mine during Q4 2013 was 29,407 gold equivalent ounces (converting silver into gold using a 52:1 ratio), consisting of 12,999 gold ounces and 853,225 silver ounces. This was 15% higher than the comparable period in 2012 and 3% higher than Q3 2013. For the full-year San Jose produced 108,326 gold equivalent ounces exceeding 2013 guidance for the third consecutive year by 5%. In addition, full-year production was 10% higher than 2012.

Gold equivalent total cash costs in Q4 2013 equaled $747 per ounce. This is 12% lower than Q4 2012 and 3% higher than Q3 2013. Costs fell year-over-year due to increased production and a declining Argentinian peso, and were up slightly over the previous quarter due to lower gold and silver grades processed. All-in sustaining costs totaled $1,014 per gold equivalent ounce and were 17% lower than Q4 2012 and 4% higher than Q3 2013. The movements in all-in sustaining costs are due to the change in total cash costs noted above and fluctuations in exploration, pre-development and capital expenditures from quarter-to-quarter. The average realized prices for gold and silver during Q4 2013 were $1,187 oz. and $19.44 oz., respectively.

Production guidance for San Jose in 2014 is estimated at 97,500 gold equivalent ounces. Gold equivalent production is lower than 2013 due to a higher silver to gold ratio being used to calculate gold equivalent production (60:1 in 2014 versus 52:1 in 2013). Cash costs and all-in sustaining costs are estimated at $750 and $1,100 per gold equivalent ounce in 2014.

An updated reserve and resource estimate for the San Jose mine is expected to be released by the end of March.

San Jose Mine Production Results


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     Full-Year Full-Year  Q4 2013   Q3 2013
San Jose - 100%(i)                     2013      2012
----------------------------------------------------------------------------
Ore production (tonnes processed)     536,937   509,851   156,150   131,592
----------------------------------------------------------------------------
Average grade gold (gpt)               6.42      5.79      6.03      6.59
----------------------------------------------------------------------------
Average head silver (gpt)               425       417       399       446
----------------------------------------------------------------------------
Average gold recovery (%)              89.2      90.4      87.6      91.9
----------------------------------------------------------------------------
Average silver recovery (%)            86.7      87.0      87.0      89.5
----------------------------------------------------------------------------
Gold produced (ounces)                98,827    85,768    26,529    25,610
----------------------------------------------------------------------------
Silver produced (ounces)             6,356,801 5,952,534 1,741,275 1,689,237
----------------------------------------------------------------------------
Gold sold (ounces)                    94,758    84,282    25,254    24,713
----------------------------------------------------------------------------
Silver sold (ounces)                 6,277,837 5,897,098 1,742,030 1,655,699
----------------------------------------------------------------------------
Co-product total cash cost Au           876       835       832       814
 (US$/oz)
----------------------------------------------------------------------------
Co-product total cash cost Ag          13.71     15.28     13.15     12.52
 (US$/oz)
----------------------------------------------------------------------------
Gold equivalent total cash cost         785       811       747       723
 (US$/oz)
----------------------------------------------------------------------------
Co-product all-in sustaining cash      1,182     1,231     1,129     1,100
 cost Au (US$/oz)
----------------------------------------------------------------------------
Co-product all-in sustaining cash      18.49     22.54     17.84     16.93
 cost Ag (US$/oz)
----------------------------------------------------------------------------
Gold equivalent co-product all-in      1,058     1,197     1,014      976
 sustaining cash cost (US$/oz)
----------------------------------------------------------------------------
McEwen Mining - 49% Share
----------------------------------------------------------------------------
Gold produced (ounces)                48,425    42,027    12,999    12,549
----------------------------------------------------------------------------
Silver produced (ounces)             3,114,833 2,916,741  853,225   827,726
----------------------------------------------------------------------------
Gold equivalent produced (ounces)     108,326   98,118    29,407    28,467
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) McEwen Mining holds a 49% attributable interest in the San Jose mine.

El Gallo 1 Mine, Mexico (100%)

In Q4 2013 the El Gallo 1 mine produced 7,760 gold equivalent ounces, consisting of 7,687 gold ounces and 3,786 silver ounces. In its first full-year of production the mine exceeded guidance by 14% producing 31,129 gold equivalent ounces.

Total cash costs in Q4 2013 equaled $765 per gold equivalent ounce, 2% higher than Q3 2013 due to lower gold grades processed in the quarter. All-in sustaining costs totaled $1,071 per gold equivalent ounce in Q4 2013, which was 11% higher than Q3 2013 due to increased exploration drilling at the mine. The average realized prices for gold and silver during Q4 2013 were $1,270/oz. and $20.55/oz., respectively.

In 2014, El Gallo 1 is forecast to produce 37,500 gold equivalent ounces (converting silver into gold using a 60:1 ratio). Total cash costs and all-in sustaining costs have been estimated at $750 and $1,100 per gold equivalent ounce.

El Gallo 1 is currently being expanded from 3,000 to 4,500 tonnes per day. The expansion is ahead of schedule with completion expected in early April versus late June 2014. The cost to complete the expansion has been reduced to $3 million from $5 million. The cost is lower than expected due to a large contingency that was initially included but has since been reduced. The increased capacity, combined with higher grades as mining moves deeper in the pit, is expected to increase production from 37,500 gold equivalent ounces in 2013, to 75,000 gold equivalent ounces in 2015. Cash costs and all-in sustaining costs are forecasted to fall from $750 to $575 per gold equivalent ounce and $1,100 to $850 per gold equivalent ounce in 2015.

El Gallo Phase 1 Mine Production Results


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                               Full-Year    Q4        Q3
                                                 2013      2013      2013
----------------------------------------------------------------------------
Ore production (tonnes processed)              1,255,314  323,863   289,382
----------------------------------------------------------------------------
Average grade gold (gpt)                         1.22      1.17      1.31
----------------------------------------------------------------------------
Gold produced (ounces)                          30,733     7,687     7,934
----------------------------------------------------------------------------
Silver produced (ounces)                        20,635     3,786     4,868
----------------------------------------------------------------------------
Gold equivalent produced (ounces)               31,129     7,760     8,027
----------------------------------------------------------------------------
Gold sold (ounces)                              32,705     7,980     8,743
----------------------------------------------------------------------------
Silver sold (ounces)                            22,700     5,500     3,000
----------------------------------------------------------------------------
Gold equivalent total cash cost (US$)             749       765       747
----------------------------------------------------------------------------
Gold equivalent co-product all-in sustaining     1,164     1,071      967
 cash cost (US$)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) Gold recoveries are projected to reach 70% through on-going leaching.

El Gallo 2, Mexico (100%)

On January 21, 2014, the Company announced that the Secretariat of Environment and Natural Resources (SEMARNAT) for the State of Sinaloa, Mexico had approved McEwen Mining's Environmental Impact Statement (EIS) and Change of Land Use permit for El Gallo 2. These are the major permits required before construction can proceed. El Gallo 2 is projected to produce an average of 95,000 gold equivalent ounces per year (5.2 million ounces of silver and 6,100 ounces of gold) at an approximate cash cost of $750 per gold equivalent ounce (including all pre-strip and Mexican royalties). All-in sustaining costs have been estimated at approximately $800 per gold equivalent ounce (including an estimated $5 million per year on exploration). Gold equivalent ounces have been calculated by converting silver into gold using a 60:1 exchange ratio.

The Company has made a temporary decision to defer the construction of El Gallo 2 due to low silver prices. The Company believes silver prices would have to equal $25 per ounce before the rate of return would be high enough to move forward with construction. In order to prepare for a possible construction decision later this year, the Company has been evaluating possible debt financing alternatives while advancing the construction of the ball mill, which is the longest lead time item associated with the project. The ball mill is 60% complete and expected to be delivered in Q3 2014.

Studies have now been completed in order to reduce the estimated capital expenditures associated with El Gallo 2. Approximately $20 million in savings is expected in the following areas: 1) reduction in leach tanks, 2) smaller process plant / refinery, 3) modular crushers, and 4) reduction in transformers. These changes are expected to have minimal impact on annual production. To date $10 million of the final construction cost has been spent. Provided the Company realizes on these projected savings and factoring in the funds that have been spent to date, approximately $150 million would be required in order to complete the mine.

Gold Bar Project, Nevada (100%)

McEwen Mining continues to advance the Gold Bar permitting process for construction and production. Gold Bar is forecasted to produce 50,000 ounces gold per year for 8 years at a cash cost of $700 per ounce and an all-in sustaining cost of $850 per ounce. The project is located primarily on public lands managed by the Bureau of Land Management (BLM). The BLM and the Nevada Division of Environmental Protection (NDEP) are the primary government agencies responsible for approving the permits that would allow the Company to begin construction. In Q4 2013, the Company submitted its Plan of Operations (PoO) for Gold Bar to the BLM. The BLM has provided the Company with its comments and the Company's responses were resubmitted at the end of February. Once accepted as complete, the PoO will serve as the basis for the National Environmental Policy Act analysis. McEwen Mining is targeting final approval by the end of Q2, 2015 in order to begin construction.

Exploration Activities

1) Grass Valley Project, McEwen Mining (70%) and Nevada Exploration Inc. (30%)

In Q1 2014, McEwen Mining and its joint venture partner, Nevada Exploration Inc., completed one deep hole at the Grass Valley project located south of Barrick's Cortez mine - one of the world's largest gold operations. This hole did not contain any gold nor did it encounter the rock formation that is typically associated with large gold deposits in Nevada. Although the Company is still evaluating the results from this hole, it is not planning any additional exploration activities at this project.

2) Keystone (100%), Nevada

McEwen Mining recently completed a water geochemical sampling program around its 100% owned Keystone project, located 25 km southeast of Barrick's Cortez mine. Although higher-risk exploration, the Company believes Keystone represents an interesting untested drill target along the same geologic trend as the Cortez mine. Drilling is planned for Q2 2014.

3) Tonkin Project (100%), Nevada

The Tonkin project has a current resource of 1.4 million gold ounces in the measured and indicated categories (32.3 million tonnes @ 1.39 gpt gold) and 0.3 million gold ounces in the inferred (8.4 million tonnes @ 1.13 gpt gold). On-going tests have been completed in order to identify an economic process alternative to extract the gold. Test results indicated that approximately 50-55% of the gold would report to a concentrate. In order to increase this percentage SGS performed sub-microscopic test work in Q4 2013 to determine the reason for the low gold recoveries. The results indicate that sulphide mineralization may have been already oxidized prior to this test work starting since the samples used to perform the test were several years old. McEwen Mining is reviewing proposals that would include fresh mineralization that would require drilling three additional holes in order to rerun the flotation tests.

Metallurgical tests are currently underway to determine if there is an economic method to process the Tonkin mineralization.

Addition to McEwen Mining's Management Team

McEwen Mining is pleased to announce that it has strengthened its management team with the recent hiring of Nathan Stubina as Vice President - Technology.

Nathan joins McEwen Mining from Byron Capital Markets where he served as a Precious and Base Metals Analyst. During his time at Bryon Capital, he was responsible for leading research initiatives in the mining and metallurgical areas. Prior to his role at Byron Capital, Nathan worked for Barrick Gold as Senior Manager - Barrick Technology Centre where he was responsible for leading a technical team. Nathan has also worked for Falconbridge Limited and Noranda Inc. He holds a Ph.D, Metallurgy and Materials Science from The University of Toronto and is a member of the Association of Professional Engineers of Ontario. Nathan is the current VP International of the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) and a Past-President of MetSoc (Metallurgy and Materials Society).


                         Q4 Conference Call Details

   McEwen Mining will be hosting a conference call to discuss the Q4 2013,
                    results and project developments on
                      Tuesday March 11, 2014 11 am EST

                                  WEBCAST:
                   http://www.gowebcasting.com/lobby/5325

                                TELEPHONE:
  Participant dial-in number(s): 416-340-2218 / 866-223-7781 North American
                                 Toll Free

                                  REPLAY:
               Dial-in number(s): 905-694-9451 / 800-408-3053
                              Pass code: 5937907

ABOUT MCEWEN MINING (www.mcewenmining.com)

The goal of McEwen Mining is to qualify for the S&P 500 by creating a high growth gold/silver producer focused in the Americas. McEwen Mining's principal assets consist of the San Jose mine in Santa Cruz, Argentina (49% interest), the El Gallo 1 mine and El Gallo 2 project in Sinaloa, Mexico, the Gold Bar project in Nevada, USA, and the Los Azules copper project in San Juan, Argentina.

As of March 10, 2014 McEwen Mining has an aggregate of 297,159,359 million shares of common stock outstanding and issuable upon the exchange of the exchangeable shares. Rob McEwen, Chairman and Chief Owner, owns 25% of the shares of the Company (assuming all outstanding Exchangeable Shares are exchanged for an equivalent amount of Common Shares).

TECHNICAL INFORMATION

This news release has been reviewed and approved by William Faust, PE, McEwen Mining's Chief Operating Officer, who is a Qualified Person as defined by National Instrument 43-101 ("NI 43-101).

El Gallo: for additional information about the El Gallo complex see the technical report titled "Resource Estimate for the El Gallo Complex, Sinaloa State, Mexico" dated August 30, 2013 with an effective date of June 30, 2013, prepared by John Read, C.P.G., and Luke Willis, P. Geo. Mr. Read and Mr. Willis are not considered independent of the Company as defined by NI 43-101. Los Azules: for additional information about the Los Azules project see the technical Report titled "Los Azules Porphyry Copper Project, San Juan Province, Argentina" with an effective date of August 1, 2013, prepared by Richard Kunter, FAUSIMM, Robert Sim, PGeo, Bruce M. Davis, PHD, FAUSIMM, James K. Duff, PGeo, William L. Rose, PE, and Scott C. Elfen, PE, all of whom are qualified persons and all of whom but James K. Duff are independent of McEwen Mining, each as defined by NI 43-101. Tonkin Project: For information about the Tonkin project see the technical report titled "Technical Report on Tonkin Project" dated and with an effective date of May 16, 2008. The report was prepared by Alan C. Noble, P.E., Ore Reserves Engineering and Richard Gowans, Micon International, and Steven Brown (then US Gold Corporation) all of whom are qualified persons and all of whom but Mr. Brown are independent of McEwen Mining, each as defined by NI 43-101. Gold Bar: For information about the Gold Bar project see the technical report titled "NI 43-101 Technical Report on Resources and Reserves Gold Bar Project, Eureka County, Nevada" dated February 24, 2012 with an effective date of November 28, 2011, prepared by J. Pennington, C.P.G., MSc., Frank Daviess, MAusIMM, Registered SME, Eric Olin, MBA, RM-SME, MSc, Herb Osborn, P.E, Joanna Poeck, MMSA, B. Eng., Kent Hartley P.E. Mining, SME, BSc, Mike Levy, P.E, P.G, MSc., Evan Nikirk, P. E., Mark Allan Willow, M.Sc, C.E.M. and Neal Rigby, CEng, MIMMM, PhD, all of whom are qualified persons and all of whom are independent of McEwen Mining, each as defined by NI 43-101.

The foregoing news release and technical reports are available under the Corporation's profile on SEDAR (www.sedar.com).

There are significant risks and uncertainty associated with commencing production or changing production plans without a feasibility, pre-feasibility or scoping study. The proposed expansion to El Gallo Phase 1 has not and may not be explored, developed or analyzed in sufficient detail to complete an independent feasibility or pre-feasibility study and may ultimately be determined to lack one or more geological, engineering, legal, operating, economic, social, environmental, and other relevant factors reasonably required to serve as the basis for a final decision to complete the expansion of all or part of this project.

RELIABILITY OF INFORMATION REGARDING THE SAN JOSE MINE

Minera Santa Cruz S.A., the owner of the San Jose mine, is responsible for and has supplied to the Company all reported results from the San Jose mine. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING NON-GAAP MEASURES

In this report, we have provided information prepared or calculated according to U.S. GAAP, as well as provided some non-U.S. GAAP ("non-GAAP") performance measures. Because the non-GAAP performance measures do not have any standardized meaning prescribed by U.S. GAAP, they may not be comparable to similar measures presented by other companies.

(1) Total Cash Costs and All-in Sustaining

Total cash costs consist of mining, processing, on-site general and administrative costs, community and permitting costs related to current explorations, royalty costs, refining and treatment charges (for both dore and concentrate products), sales costs, export taxes and operational stripping costs. All-in sustaining cash costs consist of total cash costs (as described above), plus environmental rehabilitation costs, mine site exploration and development costs, and sustaining capital expenditures. In order to arrive at our consolidated all-in sustaining costs, we also include corporate general and administrative expenses. Depreciation is excluded from both total cash costs and all-in sustaining cash costs. Total cash cost and all-in sustaining cash cost per ounce are calculated on a co-product basis by dividing the respective proportionate share of the total cash costs and all-in sustaining cash costs for the period attributable to each metal by the ounces of each respective metal sold. We use and report these measures to provide additional information regarding operational efficiencies both on a consolidated and an individual mine basis, and believe these measures provide investors and analysts with useful information about our underlying costs of operations. A reconciliation to the nearest U.S. GAAP measure is provided in McEwen Mining's Annual Report on Form 10-K for the year ended December 31, 2013.

(2) Adjusted net income (loss)

Adjusted net income (loss) excludes impairment charges and the related income tax recovery relating to the Company's investment in MSC, mineral property interests, and property and equipment from net income (loss). We use and report this measure because we believe it provides investors and analysts with a useful measure of the underlying operating performance of our core mining business. A reconciliation to the nearest U.S. GAAP measure is provided below.



                   Three months ended      Year ended December
                      December 31,                 31,
                 ----------------------- -----------------------
                    2013        2012        2013        2012        2011
                 ----------- ----------- ----------- ----------- -----------

Loss before
 income taxes     $ (33,683)  $ (38,610)  $(201,107)  $ (93,898)  $ (62,052)
 Impairment of
  investment in
  Minera Santa
  Cruz S.A.               -           -      95,878           -           -
 Impairment of
  mineral
  property
  interests and
  property and
  equipment          28,947      15,387      62,963      18,289           -
                 ----------- ----------- ----------- ----------- -----------
 Adjusted loss
  before income
  taxes              (4,736)    (23,223)  $ (42,266)  $ (75,609)  $ (62,052)
                 ----------- ----------- ----------- ----------- -----------

Recovery of
 income taxes        22,340      12,325      53,365      27,244         180
 Recovery of
  income taxes
  related to
  impairments       (10,131)     (4,915)    (14,641)     (5,931)          -
                 ----------- ----------- ----------- ----------- -----------
 Adjusted
  recovery of
  income taxes       12,209       7,410   $  38,724   $  21,313   $     180
                 ----------- ----------- ----------- ----------- -----------

Adjusted net
 income (loss)        7,473     (15,813)  $  (3,542)  $ (54,296)  $ (61,872)
                 ----------- ----------- ----------- ----------- -----------
                 ----------- ----------- ----------- ----------- -----------
Adjusted net
 income (loss)
 per share -
 basic                 0.03       (0.06)      (0.01)      (0.21)      (0.42)
                 ----------- ----------- ----------- ----------- -----------
                 ----------- ----------- ----------- ----------- -----------
Weighted average
 common shares
 outstanding
 (thousands) -
 basic              297,159     274,295     297,041     261,223     147,692
                 ----------- ----------- ----------- ----------- -----------
                 ----------- ----------- ----------- ----------- -----------

(3) Earnings from mining operations

Earnings from mining operations consists of gold and silver revenues from our El Gallo 1 mine and our 49% attributable share from the San Jose mine, and deducts Production Costs Applicable to Sales. It also includes depreciation and amortization expense incurred at the mining operations, but does not include amortization expense related to the fair value increments on historical business acquisitions (fair value paid in excess of the carrying value of the underlying assets and liabilities assumed on the date of acquisition). We use and report this measure because we believe it provides investors and analysts with a useful measure of the underlying earnings from our mining operations. A reconciliation to the nearest U.S. GAAP measure is provided below.



                               Year ended December     Year ended December
                                       31,                     31,
                             ----------------------- -----------------------
                                2013        2012        2013        2012
                             ----------- ----------- ----------- -----------

El Gallo 1 earnings from
 mining operations
  Gold and silver sales       $  10,247   $   5,510   $  45,982   $   5,966
  Production costs applicable
   to sales                      (7,816)     (3,742)    (34,594)     (3,861)
  Less: Amortization related
   to fair value increments
   on historical acquisitions       287           -       1,530           -
                             ----------- ----------- ----------- -----------
  El Gallo 1 earnings from
   mining operations          $   2,718   $   1,768   $  12,918   $   2,105
                             ----------- ----------- ----------- -----------

San Jose earnings from mining
 operations (49% attributable
 basis)
  Net sales                   $  28,759   $  38,194   $ 117,954   $ 142,516
  Production costs applicable
   to sales                     (24,945)    (20,768)    (93,238)    (76,398)
                             ----------- ----------- ----------- -----------
  San Jose earnings from
   mining operations          $   3,814   $  17,425   $  24,717   $  66,117
                             ----------- ----------- ----------- -----------

                             ----------- ----------- ----------- -----------
Consolidated earnings from
 mining operations            $   6,532   $  19,193   $  37,635   $  68,222
                             ----------- ----------- ----------- -----------
                             ----------- ----------- ----------- -----------

CAUTIONARY NOTE TO US INVESTORS REGARDING RESOURCE ESTIMATION

McEwen Mining prepares its resource estimates in accordance with standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 (NI 43-101). These standards are different from the standards generally permitted in reports filed with the SEC. Under NI 43-101, McEwen Mining reports measured, indicated and inferred resources, measurements, which are generally not permitted in filings made with the SEC. The estimation of measured resources and indicated resources involve greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that any part of measured or indicated resources will ever be converted into economically mineable reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this news release, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the corporation to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management of McEwen Mining Inc.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...