August 3, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of McEwen Mining (NYSE: MUX ) were looking brighter today, gaining 10% as gold and silver prices climbed with the day's general bullishness.
So what: Gold gained 1% while silver increased 2.5% as the broad market jumped nearly 2% on better-than-expected jobs numbers. The precious-metal miner may be feeling a stronger tailwind than most in the industry, as this beaten-down small-cap recently announced a discovery of additional gold at its El Gallo mine in Mexico.
Now what: While an increase in precious-metal prices is good news for McEwen, this run-up seems a bit overdone. The company had announced positive production results in July and will deliver its earnings report on Aug. 10. With shares down 50% in the past year and no recent profits, this is certainly a risky play. I'm staying away for now.
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