SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 1, 2017
McEWEN MINING INC.
(Exact name of registrant as specified in its charter)
Colorado
(State or other jurisdiction of
incorporation or organization)
001-33190
(Commission File
Number)
84-0796160
(I.R.S. Employer
Identification No.)
150 King Street West, Suite 2800
Toronto, Ontario, Canada M5H 1J9
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number including area code: (866) 441-0690
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
2
Item 2.02 Results of Operations and Financial Condition.
On March 1, 2017, McEwen Mining Inc. (the “Company”) issued a press release announcing a summary of its
fourth quarter and full-year 2016 financial and operating results. A copy of the March 1, 2017 press release is attached to
this report as Exhibit 99.1.
The information furnished under this Item 2.02, including the exhibits, shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under
the Securities Act of 1933, except as shall be expressly set forth by reference to such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are furnished with this report:
99.1 Press release dated March 1, 2017.
Cautionary Statement
With the exception of historical matters, the matters discussed in the press release include forward -looking statements
within the meaning of applicable securities laws that involve risks and uncertainties that could cause actual results to differ
materially from projections or estimates contained therein. Such forward -looking statements include, among others,
statements regarding future exploration, development and production activities. Factors that could cause actual results to
differ materially from projections or estimates include, among others, metal prices, economic and market conditions,
operating costs, receipt of permits, receipt of working capital and future drilling results, as well as other factors described
in our Annual Report on Form 10-K for the year ended December 31, 2016, and other filings with the United States
Securities and E xchange Commission (“SEC”). Most of these factors are beyond the Company’s ability to predict or
control. The Company disclaims any obligation to update any forward-looking statement made in the exhibits, whether as
a result of new information, future events, or otherwise. Readers are cautioned not to put undue reliance on forward -
looking statements.
3
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
McEWEN MINING INC.
Date: March 1, 2017 By: /s/ Andrew Elinesky
Andrew Elinesky,
Senior Vice President and Chief Financial Officer
4
Exhibit Index
The following is a list of the Exhibits furnished herewith.
Exhibit
Number Description of Exhibit
99.1 Press release dated March 1, 2017.
McEwen Mining Inc. Page 1
Exhibit 99.1
MCEWEN MINING REPORTS 2016 FULL YEAR AND Q4 RESULTS
TORONTO, Mar 1, 2017 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to report consolidated financial results
for the fourth quarter and year ended December 31, 2016. During the year McEwen Mining achieved production of 145,530 gold
equivalent ounces(1). Net cash flow generated from operating activities in 2016 was $25.2 million(2). On February 27, 2017, the
Company had cash, cash equivalents and precious metals of approximately $55.2 million and no debt. Our year end conference
call will occur tomorrow at 11am, EST. Details are provided at the end of this news release.
“On many important fronts, 2016 was a good year for McEwen Mining. We generated significantly higher cash flow and earnings
per share despite producing 6% fewer ounces. We grew our treasury by 84% without resorting to equity financing, or sale of metal
streams, or royalties, or taking on debt. Looking forward into 2017, our next chapter of growth begins. Pending government approval
we are ready to start construction in Nevada at our Gold Bar deposit late this year. In Mexico, we are reconfiguring our El Gallo
Silver project to improve its economics. In addition, we are testing new exploration targets. In Argentina, our Los Azules project is
getting more attention as a result of the improving copper price. Finally, when completed our proposed friendly acquisition o f
Lexam VG Gold will enhance our development and production pipeline with several high grade gold projects in Timmins, Canada,
one of the world’s largest gold districts,” said Rob McEwen, Chairman and Chief Owner.
The table below provides production and cost results for the fourth qu arter and year ended December 31, 2016, comparative
results from last year, and our production and cost guidance for 2017. Going forward cost guidance will be disclosed on an
individual mine basis and will not be consolidated. Consolidated cost guidance i s being discontinued due to regulatory
requirements related to the calculation of costs in our 49% owned interest in the San Jose mine and the required accounting
treatment of that investment . For our SEC Form 10-K Financial Statements and MD&A refer to: http://www.sec.gov/cgi-
bin/browse-edgar?action=getcompany&CIK=0000314203
Q4 2015 Q4 2016
Full Year
2015
Full Year
2016
Guidance
2017
Consolidated Total(3)
Gold ounces produced 25,452 20,337 110,320 101,482 99,700
Silver ounces produced 981,693 838,768 3,315,667 3,303,709 3,324,000
Gold equivalent ounces produced(1) 38,541 31,521 154,529 145,530 144,000
El Gallo Mine – Mexico
Gold ounces produced 11,028 7,622 62,967 54,929 49,700
Silver ounces produced 4,814 3,922 29,917 25,336 24,000
Gold equivalent ounces produced(1) 11,092 7,675 63,366 55,265 50,000
Gold equivalent total cash cost ($/oz)(1)(4) $496 $699 $440 $524 $760
Gold equivalent co-product AISC ($/oz)(1)(4) $595 $832 $581 $610 $900
San José Mine(3) - Argentina
Gold ounces produced 14,424 12,714 47,353 46,553 50,000
Silver ounces produced 976,879 834,846 3,285,750 3,278,373 3,300,000
Gold equivalent ounces produced(1) 27,449 23,845 91,163 90,264 94,000
Gold equivalent total cash cost ($/oz)(1)(4) $765 $729 $865 $760 $780
Gold equivalent co-product AISC ($/oz)(1)(4) $970 $970 $1,111 $954 $990
1. Silver production is presented as a gold equivalent. Gold equivalent calculations are based on prevailing spot prices at the
beginning of the year. The silver to gold ratio used for 2015, 2016 and 2017 is 75:1.
2. All amounts are reported in US dollars unless otherwise stated.
3. Represents the portion attributable to us from our 49% interest in the San José Mine.
4. Earnings from mining operations, total cash costs, all -in sustaining costs (AISC), and average realized prices are non- GAAP
financial performance measures with no standardized definition under U.S. GAAP. See “Cautionary Note Regarding Non-GAAP
Measures” for additional information, including definitions of these terms.
McEwen Mining Inc. Page 2
Financial & Operating Highlights
Treasury
At December 31, 2016 we had $58.8 million in cash, investments and precious metals valued at the spot prices and no debt.
In comparison, we ended 2015 with $32.0 million in cash, investments and precious metals valued at the spot prices, and
$3.4 million in short -term bank indebtedness. As of February 27, 2017 we held cas h, investments, and precious metals
valued at spot prices of $55.2 million.
Net Income
Our consolidated net income for 2016 was $21.1 million, or $0.07 per share, compared to a net loss of $20.5 million, or
$0.07 per share in 2015. The net income in 2016 was the result of the strong financial performance achieved at both our
mines.
Cash Flow
Net cash provided by operations for 2016 increased to $25.2 million compared to $15.6 million in 2015. For 2016, our 49%
interest in the San José mine contributed $17.7 million in dividends to operating cash flows, compared to $0.5 million in
2015; and our El Gallo mine contributed $59.5 million in gold and s ilver sales to operating cash flow, compared to
$70.2 million in 2015.
Earnings from Mining Operations
For 2016, earnings from mining operations from our El Gallo mine was $34.1 million, compared to $39.3 million in 2015;
and earning from mining operations from our 49% interest in the San José mine was $30.5 million, compared to $13.5 million
in 2015.
Production Costs
For our El Gallo mine in 2016, total cash costs and all -in sustaining cash costs were $524 and $610 per gold equivalent
ounce, respectively.
For our San José mine in 2016, total cash costs and all-in sustaining costs were $760 and $954 per gold equivalent ounce,
respectively.
Ounces Produced
Consolidated gold equivalent production in 2016 totaled 145,530 ounces, which consists of 90,264 gold equivalent ounces
attributable to us from our 49% interest in the San José mine, and 55,266 gold equivalent ounces from the El Gallo mine.
Ounces Sold
Consolidated gold equivalent ounces sold in 2016 totaled 144,048 ounces, which consists of 48,902 gold equivalent ounces
from El Gallo mine 95,146 gold equivalent ounces attributable to us from our 49% interest in the San José mine.
Average Realized Prices
Consolidated average realized prices for the year 2016 were $1,239 per ounce of gold sold, and $17.03 per ounce of silver
sold. In comparison, the consolidated average realized prices in 2015 were $1,146 per ounce of gold sold, and $15.06 per
ounce of silver sold.
Production Guidance
Production for 2017 is expected to be 50,000 ounces of gold and 3,300,000 ounces of silver from the San José mine, and
49,700 ounces of gold and 24,000 ounces of silver from the El Gallo mine. Using a silver to gold ratio of 75:1 for the year
2017, this represents projected consolidated production of 144,000 gold equiv alent ounces.
Cost Guidance
For 2017, total cash costs and all -in sustaining costs at the El Gallo mine are forecast to be $760 and $900 per gold
equivalent ounce, respectively; and total cash costs and all -in sustaining costs at the San José mine are for ecast at $780
and $990 per gold equivalent ounce, respectively. Our guidance is based on an average silver to gold ratio of 75:1.
McEwen Mining Inc. Page 3
Return of Capital
The second and third semi-annual return of capital installments of 1/2¢ per common share were paid on February 12, 2016
and August 29, 2016. The fourth return of capital installment of 1/2¢ per common share was paid on February 14, 2017. To
date a total of $6 million has been returned to share owners.
Stock Repurchase Program
On October 1, 2015, our Board of Directors authorized a plan to repurchase up to 5.4% of our outstanding common stock,
or up to $15 million in aggregate purchases, whichever is less. During 2015, we repurchased for cancellation
1,896,000 shares of our common stock at a total cost of $1.8 million ($0.93 per share). During 2016 we repurchased
558,000 shares of our common stock at a total cost of $0.6 million ($1.04 per share). The share repurchase program expired
on September 30, 2016.
Operations & Projects
Mexico
El Gallo Gold Mine (100%)
Production at the El Gallo mine for 2016 declined from 2015 by 13% to 55,266 gold equivalent ounces, but met our 2016
production guidance of 55,000 gold equivalent ounces. Ore grades processed during 2016 averaged 2.14 g/t gold, compared
to 3.41 g/t gold in 2015.
For 2017, we have budgeted a total of $1.5 million for exploration activities at the El Gallo Gold Mine, and $3.4 million for
sustaining capital expenditures.
El Gallo Silver Project (100%)
During 2016 w e spent $1.2 million furthering studies on the feasibility and development of the El Gallo Silver project. These
studies are intended to identify opportunities to reduce the initial capital investment required to start the project. Our 2017 budget
for El Gallo Silver is approximately $6.0 million, including $3.0 million for exploration and $3.0 million for development.
Argentina
San José Mine (49%)
Gold equivalent production for 2016, on a 100% basis, was 184,213 gold equivalent ounces, from which the 49% share
attributable to us was approximately 90,264 ounces. 2016 production slightly exceeded our 2016 guidance of 89,000 gold
equivalent ounces.
For 2017, we expect to continue receipt of dividends from our 49% interest in San José. We anticipate receiv ing dividends in
excess of $10.0 million, with the final amount being determined by the profitability, treasury position, and decisions on capital
and exploration investments.
Los Azules Project (100%)
During 2016 we spent $1.6 million in further baseline environmental and optimization studies, and related activities at Los
Azules. The 2017 drilling season was started with an initial budget of $6.4 million to be spent in the first quarter with further
drilling dependent on weather and results. In addition to drilling, we plan to spend $3.2 million on further studies and other works
to advance the Los Azules project.
Gold Bar Project, Nevada, U.S. (100%)
During 2016 we spent $2.7 million on environmental studies and other requirements to complete t he permitting process for an
open pit heap leach mine. Key areas of development include an updated mine plan leading to operational improvements,
McEwen Mining Inc. Page 4
completion of additional metallurgical work which confirmed previous gold recovery assumptions, and awarding the contract for
detailed design to M3 Engineering, a leading engineering and infrastructure firm based in Arizona, USA.
The Draft Environmental Impact Statement (DEIS) for the Gold Bar Project will be published on March 3, 2017 by the U.S.
Bureau of Land Management (BLM) in the Federal Register. This initiates the 45- day public comment period that will end
April 17, 2017. The BLM and McEwen Mining will address public comments received prior to the approval of the Final EIS and
the awarding of a Record of Decision.
Under the assumption of receiving a favorable decision, we have budgeted expenditures of approximately $38.7 million for
2017, which include $1.5 million for permitting and $37.2 million for initial stage construction, expect to commence during t he
fourth quarter of 2017.
Lexam VG Gold Acquisition
Please refer to our news release announcing details of the proposed transaction, available here:
http://www.mcewenmining.com/Media-Events/News-Releases/News-Releases-Details/2017/McEwen-Mining-Announces-
Friendly-Acquisition-of-Lexam-VG-Gold/default.aspx
San José Resource and Reserve Update
The following are the audited mineral reserve and mineral resource estimates calculated by Hochschild Mining Plc
(“Hochschild”), our joint venture partner, for the San José mine as at December 31, 2016. They do not account for depletion
from 2017 production, or reserves delineated during 2017.
These figures, reported on a 100% basis, were prepared by Hochschild and audited by P&E Mining Consultants Inc. whose
audit letter dated February 15, 2017, concluded that the estimates for the San José mine prepared by Hochschild at
December 31, 2016 provide a reliable estimation of reserves and resources. The reserves as presented are in-situ and include
mining dilution and mining losses, however do not include allowances for mill or smelter recoveries.
The tables below summarize the Mineral Reserve and Mineral Resource estimates for the San José Mine.
San José Mine - Mineral Reserve Estimate, December 31, 2016
Reserve Category
Tonnes
(000’s)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
Contained
Gold (K oz)
Contained
Silver (M oz)
Proven 1,163 7.34 502 274 18.8
Probable 654 6.57 401 138 8.4
Proven & Probable 1,817 7.06 465 412 27.2
San José Mine - Mineral Resource Estimate, December 31, 2016
Resource Category
Tonnes
(000’s)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
Contained
Gold (K oz)
Contained
Silver (M oz)
Measured 1,648 8.20 564 434 29.9
Indicated 1,891 6.26 404 381 24.6
Measured & Indicated 3,539 7.16 479 815 54.5
Inferred 1,038 6.40 404 214 13.5
• Mineral resources are inclusive of mineral reserves.
• Reserves and resources are stated on a 100% basis. McEwen Mining Inc. has a 49% attributable interest in the
San José mine.
• Mineral resources which are not mineral reserves, do not have demonstrated economic viability.
• The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient
exploration to classify these Inferred resources as Measured or Indicated, however it is reasonably expected that a
significant portion of Inferred resources may be upgraded to the Indicated or Measured category with infill drilling.