McEwen Mining Inc. MUX announced that it completed the previously mentioned deal to acquire all issued and outstanding common shares of Timberline Resources Corporation. This move will boost McEwen Mining’s  existing portfolio of development and exploration projects in Nevada.

On Apr 16, 2024, MUX announced that it signed a definitive agreement and a plan of merger with Timberline. The deal was approved by Timberline shareholders on Aug 16, 2024. According to the deal, former  Timberline shareholders will receive 0.01 McEwen Mining share for each Timberline share owned.  

MUX plans to unlock value at the Eureka project through strategic drilling, permitting and development actions. With a long-term commitment to Nevada, the company is well-positioned for sustainable growth. MUX intends to enhance shareholder value and portfolio by focusing on cost-effective opportunities.

In the second quarter of 2024, McEwen Mining witnessed a 38.2% year-over-year improvement in revenues to $47 million. The top line surpassed the Zacks Consensus Estimate of $44 million. The company reported a loss per share of 26 compared with the loss of 46 cents posted in the second quarter of 2023. The Zacks Consensus Estimate for the company's bottom line was pegged at a loss of 22 cents.

McEwen Mining’s Price Performance

MUX shares have gained 24.4% in the past year compared with the industry’s 3.2% growth.

Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

McEwen Mining currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and Eldorado Gold Corporation EGO. CRS, IAG  and EGO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.

The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 137% in a year.

The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.