MUX Switch into Growth Mode: McEwen Stock Rallies 7.3% on Strong Resource Update

McEwen (MUX) shares surged past the $24.49 level in the latest trading session, marking a 7.3% jump backed by impressive trading volume that far exceeded typical daily activity. The stock’s momentum has been undeniable, with a 16.2% gain accumulated over the past month alone. But what’s driving this bullish shift? The answer lies in the company’s updated mineral resource assessment.

Rich Gold Deposit Boosts McEwen Outlook

The catalyst behind MUX’s recent pop came from McEwen’s announcement regarding the Grey Fox property. The company reported that its Mineral Resource Estimate now totals 1.9 million ounces of Indicated gold and 436,000 ounces of Inferred gold as of year-end 2025. More impressively, the Indicated Resource segment jumped 23% year-over-year, signaling that this gold and silver mining operation is sitting on increasingly valuable reserves. This kind of resource expansion typically attracts fresh investor attention to mining stocks, particularly when exploration efforts demonstrate tangible progress.

Earnings Growth Signals Strong Momentum Ahead

Beyond the geological metrics, McEwen’s financial trajectory paints an compelling picture. The company is expected to report quarterly earnings of $0.24 per share in its upcoming earnings release—a striking 260% year-over-year increase. Revenue projections tell a similar story, with expectations of $67.5 million, representing a 101.4% surge from the prior-year quarter. These kinds of growth metrics certainly suggest underlying strength in the business fundamentals.

However, here’s where investors need to stay alert: while earnings and revenue growth forecasts provide valuable context, the real driver of sustained stock price momentum typically comes from shifts in analyst sentiment. For MUX specifically, the consensus EPS estimate has remained flat over the past 30 days. History shows that stocks often struggle to maintain upward momentum without corresponding revisions to earnings expectations pushing higher. This dynamic makes it crucial to monitor whether McEwen can build on its recent gains or if momentum begins to cool.

Industry Standing and What to Watch Next

Currently, MUX carries a Zacks Rank #2 (Buy) rating, reflecting a constructive but not aggressive stance from the research community. In the mining sector, McEwen competes alongside names like Ivanhoe Electric (IE), which posted a 2.7% gain during the same trading session to close at $17.98. Ivanhoe has also delivered solid returns over the past month with an 8.2% advance, though its earnings outlook remains under pressure—consensus estimates show -$0.21 per share for the upcoming quarter, a 10.5% deterioration year-over-year. IE currently holds a Zacks Rank #3 (Hold).

The contrast between MUX’s expanding resources and robust earnings growth versus IE’s challenging near-term outlook highlights why investors should keep a close watch on McEwen’s next moves. As this mining stock navigates its growth inflection, tracking whether analyst estimates shift upward will be key to determining if this recent 7% rally can evolve into more durable gains down the line.