Gold stocks are performing really well across the board…

However, there is an outlier…

In fact, this gold producer is currently trading at the same levels that it was trading in the beginning of the year. Other gold stocks have doubled or even tripled since then.

What makes this story even more surprising is that CEO Rob McEwen was the founder of Goldcorp, one of the biggest gold mining companies on the planet. After its recent merger with Newmont Mining, it was valued in the billions.

McEwen Mining (NYSE: MUX) is currently worth around $500 million, and Rob McEwen is the largest shareholder, owning close to 82 million shares (more than 20% of the company), and he keeps buying shares. Either he’s nuts, or he sees opportunity.

Now, McEwen Mining is trading at lower levels for a reason. The company’s recent net loss is largely due to overspending on advanced projects and exploration.

Here’s what McEwen said in the last earnings call on the subject:

I very much wish I could say that all our difficulties that started last year are now behind, but they are not, yet. The second quarter was challenging from an operational and health and safety standpoint. Our significantly lower production not only reduced our revenue but also dramatically increased our costs per ounce. In addition, a change in how we account for development expenditures added significantly to our cash cost per ounce at Black Fox. However, our path to future growth and improved operational performance has become clearer.

We are in a transition period setting up for future growth. We have a large resource base, four operating mines and can see an exciting organic growth pipeline of projects ahead that could potentially push our production to 300,000 ounces per year. I recently purchased 2 million shares, increasing my ownership to 82 million shares, and underlining my confidence in our future.

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