Is MUX's Q4 2024 earnings stability a turning point?

**McEwen Mining's Q4 2024 earnings stability does not appear to be a turning point** based on the following analysis:

1. **Financial Performance**: McEwen Mining reported a net loss of $8.23 million and total revenue of $33.52 million for Q4 2024. The company's adjusted EBITDA increased significantly, reaching $29.2 million, indicating improved profitability. However, the net loss was primarily due to investments in the Los Azules project, which is expected to impact future earnings positively through an IPO contingent on market conditions.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|market_code|
|---|---|---|---|---|---|---|
|MUX|MUX.N|McEwen Mining|2024 Q1|44.01812688821752|18.63489871086556|169|
|MUX|MUX.N|McEwen Mining|2024 Q2|69.96139710131527|38.03169065271115|169|
|MUX|MUX.N|McEwen Mining|2024 Q3|92.66556233038452|36.05353608999062|169|
|MUX|MUX.N|McEwen Mining|2024 Q4|-105.82916138534637|-42.87150647580095|169|

2. **Investor Sentiment**: Despite missing analyst expectations with an earnings per share (EPS) of -$0.13 and revenue of $32.2 million, compared to the forecasted -$0.05 and $33.7 million, respectively, the company's stock price rose by 6.11% in pre-market trading, reflecting investor optimism about future prospects and strategic initiatives. This suggests that investors may not view Q4 2024 as a turning point but rather as a period of strategic investment.
3. **Long-Term Outlook**: McEwen Mining is focused on long-term growth, with significant investments in the Los Azules copper project and the Fox Complex. The company's consolidated production of gold equivalent ounces decreased by 12% in 2024 compared to 2023, but the selling price of production increased by 24%, contributing to a 3.8-fold increase in adjusted EBITDA. This indicates a strategic shift towards value creation through price increases rather than volume expansion, which may not be indicative of a turning point but rather a deliberate business strategy.
4. **Market Conditions**: The market conditions for gold and copper remain favorable, supporting future growth. This external factor is expected to contribute positively to the company's earnings stability and potential growth.

In conclusion, while Q4 2024 represents a period of strategic investment and operational challenges for McEwen Mining, the company's focus on long-term growth, favorable market conditions, and improved profitability indicators suggest that this quarter may not be a turning point but rather a strategic pivot towards future success.