Nucor earnings beat by $0.08, revenue fell short of estimates
On Monday, H.C. Wainwright adjusted its outlook for McEwen Mining (NYSE:MUX), reducing the price target to $15.50 from the previous $18.00 while maintaining a Buy rating on the stock. The firm highlighted McEwen Mining’s first-quarter financial results, which reported $35.7 million in revenue and a net loss of $6.3 million, or ($0.12) per share. These figures represent a decrease from the first quarter of 2024, which saw $41.2 million in revenue and a net loss of $20.4 million, or ($0.41) per share. According to InvestingPro data, the company’s trailing twelve-month revenue stands at $168.94 million, with a gross profit margin of 32.41%, though profitability remains challenged as indicated by negative earnings.
The year-over-year decline in revenue was attributed primarily to lower production, with the company producing 24,131 Gold Equivalent Ounces (GEOs) in the quarter, down from 33,037 GEOs in the same period the previous year. The analyst from H.C. Wainwright noted that the production at the Gold Bar and San José mines was in line with their respective mine plans, which included waste removal and a scheduled two-week maintenance shutdown in Argentina. Despite operational challenges, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.35, indicating sufficient assets to cover short-term obligations.
Challenges at the Fox mine were also mentioned, with limited labor availability and harsh weather conditions impacting operations. Furthermore, a natural decline in production is anticipated as the Froome mine approaches the end of its life. Nevertheless, this expected decrease is projected to be counterbalanced by the future launch of the Stock mine in 2026 and beyond. The Stock mine has recently secured its final Closure Plan Permit, enabling the company to proceed with development and initiate planned mining activities.
Looking forward, H.C. Wainwright anticipates that McEwen Mining will continue to advance its key projects, which are expected to contribute to production growth and generate long-term shareholder value. Despite the reduction in the price target, the firm reaffirmed its Buy rating on McEwen Mining shares. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides detailed analysis of this $402 million market cap mining company alongside 1,400+ other US equities.
In other recent news, McEwen Mining reported its fourth-quarter 2024 financial results, which fell short of analyst expectations. The company posted an earnings per share (EPS) of -$0.13, missing the forecasted -$0.05, while revenue was $32.2 million, below the expected $33.7 million. Despite these misses, McEwen Mining’s adjusted EBITDA saw a significant increase to $29.2 million. The company continues to focus on its Los Azules copper project, with plans to double gold production by 2027. Analyst discussions during the earnings call highlighted concerns about financing strategies for Los Azules, with management indicating a mix of 40% equity and 60% debt. The company also faces challenges such as regulatory hurdles in Mexico and fluctuations in commodity prices. Additionally, McEwen Mining is working on extending mine life at its Gold Bar site and exploring potential increases in gold output.
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