MUX Is Down 80% in a 20-Year Drawdown. What History Says

MUX Is Down 80% in a 20-Year Drawdown. What History Says

McEwen Mining Inc. (MUX) is down 80% from its all-time high as of August 7, 2026, and has remained in this prolonged drawdown for approximately 7,430 days. Our data shows the Drawdown Severity Score™ stands at 11.9, indicating a continuation of its extreme red zone status. In the 2 comparable prior drops of 40% or more in the asset's history, the stock took an average of 3,494 days to recover.

McEwen Mining's Extended Red Zone Status

The data as of August 7, 2026, reveals that McEwen Mining Inc. continues to navigate an extreme drawdown environment. With a current price of $19.19 against an all-time high of $93.87, the stock sits at a substantial -79.6% drawdown. This positioning maintains the asset's placement in the red zone, reflecting a prolonged period of severe capital depreciation.

Rather than representing a fresh downward shift, the current metrics highlight a persistent state of distress. The Drawdown Severity Score™ of 11.9 indicates that the stock remains deeply depressed relative to its historical peak. This score serves as our proprietary measure of drawdown severity, reflecting both the depth and the duration of the current decline.

The 7,427 days spent in this drawdown state underscore the long-term nature of this correction. This duration, spanning more than two decades, sets this event apart from typical market pullbacks. Investors monitoring the asset must evaluate these figures against the historical behavior of the stock to understand the scale of the current decline.

Historical Context of MUX's 20-Year Drawdown Timeline

To evaluate the significance of a 7,427-day drawdown, we must analyze the broader historical behavior of McEwen Mining Inc. Over its entire trading history, our data has recorded a total of 19 distinct drawdown events. This historical dataset allows us to establish what constitutes normal volatility for the asset.

Historically, the stock has shown a tendency to resolve its pullbacks relatively quickly. The average maximum drawdown across all 19 historical events is -13.7%. This indicates that the vast majority of the stock's historical declines were minor corrections rather than catastrophic collapses.

Furthermore, the average drawdown duration across all historical events stands at 375 days. Under normal conditions, the stock has historically taken just over a year to recover from a peak-to-trough decline. This historical baseline makes the current 7,427-day period an extreme statistical outlier.

The current -79.6% drawdown is nearly six times deeper than the historical average maximum drawdown of -13.7%. Additionally, the current duration of 7,427 days is nearly twenty times longer than the historical average duration of 375 days. This vast discrepancy indicates that the current market cycle for the stock is entirely different from its historical norm.

Comparing MUX's Current Drop to Past 40% Declines

While minor pullbacks are common for McEwen Mining Inc., deep drawdowns are exceedingly rare. Our data shows that the stock has experienced a decline of 40% or more from its peak only 2 times in its history. These 2 occurrences provide the only relevant historical benchmarks for the current -79.6% drop.

When the stock has historically crossed the 40% drawdown threshold, the recovery timeline has expanded dramatically. For these 2 comparable deep drops, the average duration of the drawdown was 3,494 days. This shows that deep corrections for this asset historically become multi-year, highly persistent events.

Comparing the current 7,427-day drawdown to the historical average of 3,494 days reveals the severity of the current cycle. The current drawdown has lasted more than twice as long as the average of the prior deep declines. This indicates that the asset is experiencing its most prolonged period of capital depression on record.

The table below outlines the key historical drawdown metrics for McEwen Mining Inc. as of August 7, 2026:

Limitations of MUX Price-Only Analysis

An essential caveat when analyzing the historical data of McEwen Mining Inc. is the extremely small sample size. Because the stock has dropped by 40% or more only 2 times in its history, we have very few data points to build a reliable historical average. This limitation means the average recovery duration of 3,494 days must be interpreted with caution.

With only 2 historical events, a single outlier can heavily distort the calculated averages. If one recovery was unusually fast and the other was exceptionally slow, the resulting average does not represent a highly probable outcome. Consequently, investors should not view the 3,494-day historical average as a firm predictive target for the current drawdown.

Furthermore, our analysis is strictly limited to price action, drawdown depth, duration, and the Drawdown Severity Score™. We do not incorporate external factors such as commodity prices, corporate earnings, mining production metrics, or broader sector trends. This price-only methodology ensures an objective, data-driven analysis but does not capture the fundamental drivers that may influence the stock's path.

Key Thresholds to Monitor for McEwen Mining

To determine if McEwen Mining Inc. is beginning to establish a recovery path, investors must monitor key price and drawdown thresholds. The first indicator of a shift would be a meaningful reduction in the current -79.6% drawdown. Given the current price of $19.19, the stock has a significant distance to travel to reach historical recovery milestones.

To reduce the current drawdown to -50%, the stock price would need to rise to approximately $46.94. To reach the -40% threshold, which represents the boundary of historical deep drops, the price would need to reach $56.32. These specific milestones provide objective targets for tracking potential recovery progress.

Conversely, if the price drops below the current level of $19.19, the drawdown depth will expand beyond -79.6%. This would push the asset's severity score higher and extend the duration of the current 7,427-day decline. We will continue to track these key levels as new trading data is recorded.