McEwen (MUX) Moves 5.4% Higher: Will This Strength Last?
McEwen (MUX) shares soared 5.4% in the last trading session to close at $7.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.6% gain over the past four weeks.
McEwen Mining recently reported that consolidated production for the October-November period was 29,600 gold equivalent ounces (“GEOs”), which marked a notable improvement compared with the preceding nine months. The company had added that the Gold Bar mine in Nevada experienced an uptick in the fourth quarter of 2023, attributed to increased ore crushing rates and the expansion of the heap leach pad. The company had provided guidance on the mine’s production at 41,800 GEOs for 2023.
Anticipating the mine's robust performance to offset lower output at Fox and San José, McEwen Mining adjusted its 2023 total forecast to 154,200 GEOs. McEwen had produced 37,280 GEOs in the fourth quarter of 2022 and 133,300 GEOs in 2022. The Gold Bar mine had contributed 26,620 GEOs for the year. The year-over-year improved production numbers and gold prices through the fourth quarter are expected to reflect on the company’s upcoming fourth-quarter results.
This gold and silver mining company is expected to post quarterly loss of $0.33 per share in its upcoming report, which represents a year-over-year change of +58.2%. Revenues are expected to be $49.2 million, up 74.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For McEwen, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MUX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
McEwen is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, MP Materials Corp. (MP), finished the last trading session 6.4% higher at $17.19. MP has returned -13.7% over the past month.
For MP Materials Corp. , the consensus EPS estimate for the upcoming report has changed -128.6% over the past month to -$0.03. This represents a change of -107.1% from what the company reported a year ago. MP Materials Corp. currently has a Zacks Rank of #4 (Sell).
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McEwen Mining Inc. (MUX) : Free Stock Analysis Report
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