McEwen Mining shares dropped 18% to 18.69 Canadian dollars ($13.24) in Toronto after the company reported a wider third-quarter loss and lower revenue, citing operational problems and higher costs at its mining operations.
The company posted a loss of $36.7 million, or 60 cents a share, late Monday, compared with a loss of $462,000, or 1 cent a share, a year earlier. Revenue fell 14% to $43.6 million, generated from sales of 10,689 gold equivalent ounces. A year earlier, McEwen reported $50.5 million in revenue from 14,968 ounces. Analysts had expected revenue of $55.8 million, according to FactSet.
McEwen attributed disruptions at its Gold Bar complex in Nevada to grade-control problems and what it described as poor management oversight. At the Fox complex in Ontario, Canada, costs were affected by processing low-grade stockpiles. The company also said weather at its San Jose project in Argentina hurt production and increased costs.
All-in sustaining costs rose across the portfolio: 23% to $3,520 per ounce at Gold Bar, 58% to $3,725 at Fox and 23% to $3,414 at San Jose. In response to the problems at Gold Bar, McEwen replaced the site’s leadership team in late August and introduced new operating procedures. The company said production has since increased and costs have fallen, and said those improvements can be sustained.
McEwen kept its full-year 2026 production guidance unchanged at 109,000 to 120,000 gold equivalent ounces.
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