McEwen Mining Inc. MUX stated that its 48% owned subsidiary, McEwen Copper Inc., has signed an agreement with YPF Luz to power its massive Los Azules copper mine with 100% renewable energy. This agreement is consistent with MUX's goal of becoming 100% renewable.

YPF Luz and McEwen Copper have signed a Memorandum of Understanding (MOU), which allows them to negotiate the exclusive energy supply for the Los Azules project in the San Juan province. This deal involves the provision of renewable energy via a high-voltage transmission line, which YPF Luz will create and finance.

MUX’s Efforts to Make Los Azules Carbon-Neutral

YPF Luz is an Argentine company that has been a pioneer in power generation since 2013. This agreement demonstrates YPF Luz's capacity to provide tailored energy solutions that drive growth and returns through creative, sustainable initiatives.

The agreement also includes the connection of the project to the Argentine Interconnection System  via a high-voltage transmission line. According to the MOU, YPF Luz will design, construct and finance the transmission line.  

The two companies earlier collaborated in 2023 with an agreement to explore solutions for ensuring Los Azules’s power supply. 

Los Azules is one of the largest and most promising copper projects in the world. Given its solid production potential, it will likely position McEwen Copper as a leader in critical metals for the global energy transition. MUX is developing Los Azules differently from a conventional copper mine by ensuring less consumption of water and aiming for lower carbon emissions. The MOU with YPF Luz marks a significant step as it ensures that it will be powered by 100% renewable electricity once in operation. The project is expected to be carbon-neutral by 2038.

McEwen Mining’s Q2 Performance

In the second quarter of 2024, MUX 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 cents  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 9.7% in the past year against the industry’s 0.5% decline.

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.