McEwen Mining (MUX) might be on the brink of something big, and it’s catching the eye of analysts. National Bank just gave it an “Outperform” rating with a price target of C$20. But what does this mean for investors?

McEwen’s Los Azules copper project could be the thing that makes or breaks the company. Right now, the project is still in its early stages, so there’s a lot of uncertainty. But with an implied value of nearly $1 billion, Wall Street is watching it closely. If things go right, this could really boost McEwen’s stock price.

The Ups and Downs of McEwen Mining

The company has some wins on the board. For example, McEwen saw a big jump in EBITDA, up 3.8 times from last year. And despite producing fewer ounces of gold and silver, the selling price went up by 24%.

But it’s not all sunshine and rainbows. McEwen posted a net loss of $43.7 million, mostly due to its investments in Los Azules. Plus, the company’s debt has shot up from $40 million to $130 million. There’s also uncertainty over whether the Los Azules project will be approved under Argentina’s RIGI scheme, which could delay things even further.

What Analysts Are Saying About McEwen

Right now, analysts are pretty optimistic. They’re giving McEwen a one-year target price of $15.06, with a high estimate of $18 and a low of $12.50. That means there’s potential for nearly 100% upside from its current price of $7.64.

The consensus rating is “Outperform,” meaning analysts think McEwen is likely to do well in the future.

If you’re a risk-tolerant investor, McEwen might be worth keeping an eye on. While the company has its challenges, the potential rewards, especially with the Los Azules project, could make it a strong contender in the long run.

Just be ready for some bumps along the way.