Shares of McEwen Mining are up 20% since the company reported second-quarter earnings earlier this month. Since making lows in July, the stock is up roughly 40%.
McEwen, who has a 49% equity interest in the company, said that other miners have become attractive during the selloff, because the market didn't bother to differentiate which companies were good and which were bad and opted to sell them all instead.
He added that the opportunity to combine with another company would not only make McEwen Mining bigger, but more profitable as well.The company has zero debt and luckily has cash. Finding financing after the stock selloff has become very difficult, and if companies do manage to find some, it usually comes with a stiff price tag. McEwen went on to say that it has caused some miners to postpone upcoming projects and is especially hard for those who are in the middle of projects, because the financing is so expensive but is also a necessity. He concluded by saying that McEwen's Argentina mine is a very consistent producer, with promising high-grade measures coming from its new mine in Mexico. The company is expecting another mine to be permitted near the end of the third quarter.
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