Why McEwen Mining's Shares Jumped
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 jumped 10% today after the company updated operating results.
So what: The company said that gold equivalent production increased 44% from a year ago and 20% sequentially to 35,955 ounces. All-in sustaining costs fell to $1,108 per gold equivalent ounce, down 22% from last quarter.
Now what: The increase in production and reduction in cost is positive for a company trying to swing into a profit this year. Management also said that it expects its mines to perform well as the year goes on, and that it is progressing on new projects as well. The big risk is gold prices, which have fallen this year and may continue to fall given the strength of the economy.
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The article Why McEwen Mining's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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