McEwen Inc. (NYSE: MUX)

Sector: Basic Materials Industry: Other Precious Metals & Mining CIK: 0000314203
Market Cap 1.25 Bn
P/B 2.56
P/E -104.83
P/S 7.51
ROIC (Qtr) -1.48
Div Yield % 0.00
Rev 1y % (Qtr) -3.28
Total Debt (Qtr) 127.73 Mn
Debt/Equity (Qtr) 0.26
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About

McEwen Mining Inc., also known by its stock symbol MUX, is a company that operates in the mining industry, specifically in gold and silver production and exploration. The company's operations are focused on the Americas, where it owns and operates several projects in Canada, the United States, Mexico, and Argentina. McEwen Mining's main business activities revolve around the exploration, development, and production of gold and silver. The company owns 100% of the Froome mine and Stock mill in Ontario, Canada, 100% of the Gold Bar mine in Nevada,...

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Investment thesis

Bull case

  • Healthy cash reserves of 55.25M provide 66.33x coverage of short-term debt 833000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 747.64M provides 5.85x coverage of total debt 127.72M, indicating robust asset backing and low credit risk.
  • Long-term investments of 386.30M provide solid 3.04x coverage of long-term debt 126.89M, indicating strategic financial planning.
  • Robust tangible asset base of 747.64M provides 11.94x coverage of working capital 62.60M, indicating strong operational backing.
  • Strong free cash flow of (45.21M) provides 14.47x coverage of acquisition spending (3.12M), indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of 2.55M barely covers its investment activities of (52.68M), with a coverage ratio of -0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (52.68M) provide weak support for R&D spending of 18.21M, which is -2.89x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 55.25M provide limited coverage of acquisition spending of (3.12M), which is -17.68x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (45.21M) provides weak coverage of capital expenditures of 47.76M, with a -0.95 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of 2.55M shows concerning coverage of stock compensation expenses of 3.33M, with a 0.77 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Customer Breakdown of Revenue (2024)

Peer comparison

Companies in the Other Precious Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HL Hecla Mining Co/De/ 13.92 Bn 43.35 9.78 275.80 Mn
2 TFPM Triple Flag Precious Metals Corp. 7.13 Bn 34.87 20.73 14.50 Mn
3 PPTA Perpetua Resources Corp. 2.49 Bn -56.16 0.00 0.05 Mn
4 ASM Avino Silver & Gold Mines Ltd 1.28 Bn 82.71 20.45 3.38 Mn
5 MUX McEwen Inc. 1.25 Bn -104.83 7.51 127.73 Mn
6 MTA Metalla Royalty & Streaming Ltd. 0.74 Bn -347.30 96.23 8.77 Mn
7 NEWP New Pacific Metals Corp 0.58 Bn -195.22 0.00 0.00 Mn
8 ELE Elemental Royalty Corp 0.30 Bn -829.72 18.50 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.77 0.38
EV to Cash from Ops. EV/CFO 517.85 46.96
EV to Debt EV to Debt 10.33 3,165.55
EV to EBIT EV/EBIT -150.94 -95.38
EV to EBITDA EV/EBITDA -203.99 4.86
EV to Free Cash Flow [EV/FCF] EV/FCF -29.20 31.14
EV to Market Cap EV to Market Cap 1.06 0.86
EV to Revenue EV/Rev 7.93 13.34
Price to Book Value [P/B] P/B 2.56 6.32
Price to Earnings [P/E] P/E -104.83 -125.76
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -10.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.02
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 3.93
Interest Coverage Int. cover (Qtr) -1.57 9.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -25.13 -825.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 71.12 689.03
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -3.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -106.82 85.08
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 87.86 150.70
EBIT Growth (1y) % EBIT 1y % (Qtr) -106.22 97.21
EBT Growth (1y) % EBT 1y % (Qtr) -110.56 107.49
EPS Growth (1y) % EPS 1y % (Qtr) -110.45 129.12
FCF Growth (1y) % FCF 1y % (Qtr) -625.23 414.62
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -30.95 41.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.22 0.15
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.97 9.29
Current Ratio Curr Ratio (Qtr) 2.10 12.32
Debt to Equity Ratio Debt/Equity (Qtr) 0.26 0.07
Interest Cover Ratio Int Coverage (Qtr) -1.57 9.92
Times Interest Earned Times Interest Earned (Qtr) -1.57 9.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.30 -110.37
EBIT Margin % EBIT Margin % (Qtr) -5.25 -125.82
EBT Margin % EBT Margin % (Qtr) -8.60 -136.05
Gross Margin % Gross Margin % (Qtr) 18.30 27.60
Net Profit Margin % Net Margin % (Qtr) -7.20 -140.71