Why McEwen Mining (MUX) Is Up Today

NEW YORK (TheStreet) -- McEwen Mining (MUX) was gaining 3.1% to $3.62 Friday after the miner updated its reserve and resource estimates at its San Jose mine in Argentina.

The company reported that proven and probable gold and silver reserves both rose 12% from the year-ago period to 409,400 ounces of glad and 30.1 million ounces of silver contained in 1.8 million tons. McEwen said gold grades increased by 9% to 7.03 gpt while silver grade increased 10% to 515 gpt.

McEwen calculated its reserve and resource estimates using $1,2000 per ounce gold and $20 per ounce silver.

Production in the San Jose mine increased 10% in 2013 to 221,073 gold equivalent ounces, which consisted of 98,827 gold ounces and 6,356,801 silver ounces.

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TheStreet Ratings team rates MCEWEN MINING INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MCEWEN MINING INC (MUX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

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