McEwen Mining Inc (NYSE:MUX) updated investors on its plans to regain compliance with the NYSE minimum stock price requirement. The New York Stock Exchange requires that the average closing price of a company’s stock listed on its platform should be above $1.00 per share, calculated for a period of thirty consecutive trading sessions. The Company was recommended in July 2015 that it failed to meet this requirement.
Rob McEwen, the Chief Owner, reported that they have made substantial progress in a tough market. This year McEwen strengthened its balance sheet, declined the costs and increased production. He added that he is not going to continue with poor performance with no plans of being delisted from the world’s leading stock exchange.
As part of company’s continuing effort to enhance shareholder value, McEwen Mining Inc (NYSE:MUX) team has been working diligently on several measures to help boost the share price. The CEO reported that they recorded three consecutive quarters of positive cash flow and four successive quarters of record production. They implemented ayearly return of capital distribution of 1c a share compensated semi-annually, with the second part expected in February 2016.
McEwen reported that they are marketing the firm to create awareness of asset base, expanding treasury, optionality to copper, gold and silver, and growing profitable production. They are assessing potential M&A deals that would create share value. McEwen Mining Inc (NYSE:MUX) would be commencing a share buyback plan whereby the company can repurchase up to 5% of its common stock over next one year.
In case these measures fail in achieving compliance guidelines with the minimum price needed by the end of year, McEwen may opt for a reverse split process of its stock. Such a share consolidation would need shareholder approval at the upcoming annual general meeting in June 2016.