McEwen Mining Inc. (NYSE:MUX) Q1 2020 Earnings Conference Call - Final Transcript
May 19, 2020 • 11:00 am ET
the current oil price remains constant, and we've been able to refinance the debt and amend the turn -- extended churn, we believe we have adequate cash to fund the company through 2020. The big item on our balance sheet and income statement is the impairment of the Gold Bar Mine. We had said, a consequence of changes to our resource estimate related to mine. Our finance department, our auditors and then an external property evaluators, that information we put together and performed a recoverability test using a discounted cash flow method, employing a 9% discount debate.
It also uses which I find hard to believe a long-term gold price assumption of $1,430 per ounce. The conclusion was that the carrying value needed to be impaired, as we are recording a noncash impairment, reducing plant and equipment and annual property interest by $83.8 million in the first quarter. When we combine the impairment with $6.3 million spent on exploration and some projects plus G&A, the consolidated net loss for Q1 was $99.2 million or $0.25 a share, excluding the impairment, a net loss of $15.4 million or $0.04 a share.
I would now like to provide an introduction to our new Chief Operating Officer, Peter Mah, who joined the company on April 2. Peter is someone who has worked with before at Gold Corp. He is a very accomplished engineering executive, who is a believer in innovation, likes to challenge conventional wisdom and I have to say that he has been working flat out for the last six weeks to put in place strategies that we believe are going to turn McEwen Mining into a performer.
I will now ask Peter to continue with the presentations.
Thank you, Rob. I'm very excited to be joining McEwen Mining and the opportunity to work alongside you again. McEwen Mining has a bright future. We have some near-term operational challenges to overcome, and a stellar pipeline of resources and discoveries with which to grow.
Before providing the operations and projects updates, I'd like to share some of my background and how my experience can be applied to the challenges and opportunities at McEwen Mining. I'm an engineer with a background in mining and mineral processing, and doing the Masters degree in open pit and underground rock mechanics. Over the past 30 years, I've worked as an engineer, a supervisor, manager and executive in open pit and underground operations. My experience spans feasibilities, new mine builds, expansions and a turnaround. I also work in the Red Lake mine for nine years in varying capacities. My experience as mine General Manager at the Victor Diamond Mine has taught me the importance of blending challenging play rich ores and material handling systems designs to optimize processing efficiencies and throughput.
At the Musselwhite Mine efficiencies in transverse open stopeing and conveying will support the transition to production at our new Froome project. Speaking of Froome the ramp development advanced in Q1 2020 and first store is expected