Why McEwen Mining Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of McEwen Mining (NYS: MUX) were looking brighter today, gaining 10% as gold and silver prices climbed with the day's general bullishness.
So what: Gold gained 1% while silver increased 2.5% as the broad market jumped nearly 2% on better-than-expected jobs numbers. The precious-metal miner may be feeling a stronger tailwind than most in the industry, as this beaten-down small-cap recently announced a discovery of additional gold at its El Gallo mine in Mexico.
Now what: While an increase in precious-metal prices is good news for McEwen, this run-up seems a bit overdone. The company had announced positive production results in July and will deliver its earnings report on Aug. 10. With shares down 50% in the past year and no recent profits, this is certainly a risky play. I'm staying away for now.
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The article Why McEwen Mining Shares Soared originally appeared on Fool.com.Fool contributorJeremy Bowmanholds no positions in the companies in this article. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.
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