McEwen Mining (NYSE:MUX) Q4 2021 Earnings Conference Call March 9, 2022 2:00 PM ET Company Participants Rob McEwen - Chairman and Chief Executive Officer Segun Odunuga - VP and Controller and Interim CFO Peter Mah - COO Michael Meding - Vice President, Andes Corporación Minera S.A. Steve McGibbon - EVP of Exploration Conference Call Participants Jake Sekelsky - Alliance Global Partners Joseph Reagor - Roth Capital Partners John Tumazos - John Tumazos Very Independent Research Heiko Ihle - H.C. Wainwright Op ...

Table of Contents Commission file number 001-33190 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: MCEWEN MINING IN ...

Financial Data and Key Metrics Changes - Q3 2021 revenue from 100% owned operations was $37.1 million, a 36% increase compared to Q3 2020 [9] - Average realized gold sales price in Q3 2021 was $1,793 per gold equivalent ounce, down from $1,925 in Q3 2020 [9] - Cash gross profit for Q3 2021 was $6.4 million, compared to $3.9 million in Q3 2020, with a nine-month total of $16.1 million versus $2.8 million last year, a 575% increase [10][12] - The company reported a net loss of $17.4 million or $0.04 per share for Q3 2021, compared to a net loss of $9.8 million or $0.02 per share in Q3 2020 [12] Business Line Data and Key Metrics Changes - Gold Bar production in Q3 2021 was 12,400 gold equivalent ounces, an 82% increase year-over-year [18] - Fox Complex production for Q3 2021 was 8,300 gold equivalent ounces, a 42% increase compared to Q3 2020 [19] - San José mine produced 10,800 gold ounces and 790,000 silver ounces in Q3 2021, totaling 21,600 gold equivalent ounces, a 36% increase from last year [22] Market Data and Key Metrics Changes - Year-to-date share performance increased by 15.7%, while industry ETFs GDX and GDXJ declined by 11.6% and 19.7%, respectively [6] Company Strategy and Development Direction - The company is focused on a turnaround strategy, aiming to build an exceptional mining model for the 21st century [4] - Significant investments in exploration are expected to extend the life of mines and support future production growth [5] - The company is advancing the Los Azules copper project, which is one of the largest undeveloped copper porphyry deposits [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements and the potential for increased production and lower costs [3][4] - The company is addressing supply chain challenges and has recruited a global procurement lead to mitigate risks [59] - Management noted that COVID-19 is not materially affecting operations or future strategic plans [56] Other Important Information - Total liquid assets as of September 30, 2021, were $72.7 million, compared to $18.8 million for the same period last year [13] - The company spent $10.3 million on exploration and advanced projects during Q3 2021 [12] Q&A Session Summary Question: Guidance for Gold Bar production - Management indicated that the production guidance range reflects uncertainties in transitioning between mining areas and contractor changes [52][55] Question: Impact of COVID-19 on operations - Management confirmed that COVID-19 is not currently affecting operations, with vaccination rates varying by site [56][58] Question: Future cost expectations for Gold Bar - Management expects costs to drop significantly after 2022 as production increases and capital investments moderate [66][68] Question: Exploration budget for next year - Management anticipates a slight decrease in the exploration budget for 2022, around 20% lower than the current year [79] Question: Update on El Gallo and Phoenix expansion - Management is exploring low CapEx alternatives for the El Gallo project and is optimistic about advancing it [81] Question: Long-term growth strategy - Management emphasized the need for a stronger share price to pursue acquisitions and highlighted the potential of McEwen Copper as a significant value driver [84]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33190 MCEWEN MINING INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. ...

Financial Data and Key Metrics Changes - Revenues from 100% owned operations in Q2 2021 were $40.7 million, a 123% increase compared to Q2 2020 [8] - Average realized sales prices for gold equivalent ounces were $1,830, up from $1,733 in Q2 2020 [9] - Cash gross profit for Q2 2021 was $9.6 million, an increase of $13.6 million from a cash gross loss of $4.9 million in Q2 2020 [10] - The net loss for Q2 2021 was $6 million or negative $0.01 per share, an improvement from a net loss of $19.8 million or negative $0.05 per share in Q2 2020 [11] Business Line Data and Key Metrics Changes - Consolidated gold production in Q2 2021 was 40,700 gold equivalent ounces, over two times higher than the same period last year [17] - Q2 production from 100% owned operations was 22,400 GEOs, an increase of 12,300 GEOs compared to Q2 2020 [18] - Cash costs per GEO for 100% owned operations were $12.86, about 41% lower than last year [18] - At the Gold Bar Mine, Q2 production was 14,100 GEOs, reflecting a 132% increase over last year [19] - The Fox Complex produced 7,100 GEOs in Q2, more than a threefold increase from 2,200 GEOs in Q2 2020 [21] Market Data and Key Metrics Changes - The San José Mine in Argentina produced 18,200 GEOs in Q2, nearly double the production from the same period last year [27] - Cash costs for the San José Mine were $1,105 per GEO, slightly lower than Q2 2020 [28] Company Strategy and Development Direction - The company is focused on advancing its large copper project, Los Azules, which is seen as a significant value driver [53] - Management is exploring options for funding the project, including private funding for a subsidiary to advance it towards a prefeasibility study [62] - The company aims to address access issues and conduct further drilling to enhance the project's value [65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements and a commitment to regaining lost ground in production and share price [6][7] - The company is on track to reach commercial production at the Froome mine in Q4 2021 [14] - Management highlighted the importance of copper in the context of global electrification and renewable energy trends [59] Other Important Information - The company reported total liquid assets of $48.9 million as of June 30, 2021, compared to $20.8 million for the same period last year [13] - Exploration activities in Q2 2021 totaled approximately $6.9 million, with a focus on cost-effective discoveries [30] Q&A Session Summary Question: Expectations for cost improvements at Gold Bar - Management indicated that costs are trending down and operational improvements are ongoing [72][74] Question: Plans for Mexico and El Gallo - Management is evaluating the Phoenix project and looking for ways to improve its economics [78] Question: Timeline for the Fox Complex - A preliminary assessment is expected to be released in Q4 2021, targeting a 10-year mine life with production of around 100,000 ounces per year [86] Question: Update on the copper project - The project is expected to close in two stages, with plans to go public within 12 to 14 months [90][120] Question: Shareholder value from McEwen Copper - Management is considering distributions to shareholders but highlighted potential tax implications [121]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33190 MCEWEN MINING INC. (Exact name of registrant as specified in its charter) Colorado 84-0796160 (State or other jurisdic ...

McEwen Mining, Inc. (NYSE:MUX) Q1 2021 Earnings Conference Call May 10, 2021 11:00 AM ET Company Participants Robert McEwen - Chairman, CEO, President & Chief Owner Anna Ladd-Kruger - CFO Peter Mah - COO Steve McGibbon - EVP, Exploration Conference Call Participants Heiko Ihle - H.C. Wainwright & Co. Jacob Sekelsky - Alliance Global Partners Joseph Reagor - ROTH Capital Partners John Tumazos - John Tumazos Very Independent Research Operator Hello, ladies and gentlemen. Welcome to McEwen Mining's Q1 2021 Ope ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial information for the company, covering financial statements, management's discussion, market risk, and controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for McEwen Mining Inc. for the three months ended March 31, 2021 and 2020, including statements of operations and comprehensive loss, balance sheets, changes in shareholders' equity, and cash flows, along with detailed notes explaining the company's operations, accounting policies, segment reporting, and specific financial accounts [Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This statement details the company's financial performance, including revenue, production costs, and net loss, for the three months ended March 31, 2021 and 2020 Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands of U.S. dollars, except per share) | Metric | Three months ended March 31, 2021 | Three months ended March 31, 2020 | | :--- | :--- | :--- | | Revenue from gold and silver sales | $23,740 | $31,400 | | Production costs applicable to sales | $(23,589) | $(28,387) | | Depreciation and depletion | $(5,137) | $(6,698) | | Gross loss | $(4,986) | $(3,685) | | Operating loss | $(15,384) | $(99,345) | | Loss before income and mining taxes | $(14,481) | $(100,285) | | Net loss and comprehensive loss | $(12,466) | $(99,191) | | Net loss per share (Basic and Diluted) | $(0.03) | $(0.25) | | Weighted average common shares outstanding (thousands) | 441,794 | 400,370 | - Net loss significantly decreased from **$(99.2) million** in Q1 2020 to **$(12.5) million** in Q1 2021, primarily due to the absence of a large impairment charge seen in the prior year[11](index=11&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This statement presents the company's financial position, including assets, liabilities, and shareholders' equity, as of March 31, 2021, and December 31, 2020 Consolidated Balance Sheets (Unaudited) (in thousands of U.S. dollars) | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $47,402 | $20,843 | | Total current assets | $81,012 | $53,497 | | TOTAL ASSETS | $528,180 | $499,936 | | Total current liabilities | $45,733 | $45,554 | | Total liabilities | $134,431 | $134,608 | | Total shareholders' equity | $393,749 | $365,328 | | TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $528,180 | $499,936 | - Cash and cash equivalents increased significantly from **$20.8 million** at December 31, 2020, to **$47.4 million** at March 31, 2021, contributing to a rise in total current assets and total assets[14](index=14&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This statement outlines the changes in the company's shareholders' equity, including common stock, accumulated deficit, and total equity, for the period ended March 31, 2021 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (in thousands of U.S. dollars and shares) | Metric | Balance, Dec 31, 2020 | Stock-based compensation | Sale of flow-through common shares | Sale of shares for cash | Net loss | Balance, Mar 31, 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Common Stock and Additional Paid-in Capital (Amount) | $1,548,876 | $227 | $10,785 | $29,875 | — | $1,589,763 | | Accumulated Deficit | $(1,183,548) | — | — | — | $(12,466) | $(1,196,014) | | Total Shareholders' Equity | $365,328 | $227 | $10,785 | $29,875 | $(12,466) | $393,749 | | Common Shares (thousands) | 416,587 | — | 12,601 | 30,000 | — | 459,188 | - Total shareholders' equity increased from **$365.3 million** at December 31, 2020, to **$393.7 million** at March 31, 2021, primarily driven by equity issuances totaling **$40.7 million** (flow-through shares and cash sales), partially offset by a net loss of **$12.5 million**[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2021 and 2020 Consolidated Statements of Cash Flows (Unaudited) (in thousands of U.S. dollars) | Cash Flow Activity | Three months ended March 31, 2021 | Three months ended March 31, 2020 | | :--- | :--- | :--- | | Cash used in operating activities | $(10,143) | $(11,908) | | Cash used in investing activities | $(5,101) | $(5,391) | | Cash provided by (used in) financing activities | $41,833 | $(493) | | Increase (decrease) in cash, cash equivalents and restricted cash | $26,589 | $(17,678) | | Cash, cash equivalents and restricted cash, end of period | $51,027 | $28,822 | - Cash provided by financing activities dramatically increased to **$41.8 million** in Q1 2021 (from **$(0.5) million** in Q1 2020), primarily from share issuances, leading to a significant increase in cash, cash equivalents, and restricted cash by **$26.6 million**[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies, segment information, and specific account balances [NOTE 1 Nature of Operations and Basis of Presentation](index=8&type=section&id=NOTE%201%20NATURE%20OF%20OPERATIONS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's primary business activities, geographic operations, and the basis for preparing its financial statements - McEwen Mining Inc. is engaged in the exploration, development, production, and sale of gold and silver, and exploration for copper, operating in the United States, Canada, Mexico, and Argentina[22](index=22&type=chunk) - The company owns 100% interest in Gold Bar (Nevada), Black Fox (Ontario), El Gallo Project and Fenix (Mexico), Los Azules (Argentina), and a 49% interest in Minera Santa Cruz S.A. (MSC), owner of the San José mine in Argentina[23](index=23&type=chunk) [NOTE 2 Significant Accounting Policies](index=9&type=section&id=NOTE%202%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the key accounting principles and judgments applied in the preparation of the consolidated financial statements, including recent accounting pronouncements and operational updates - The company continues to monitor and respond to the COVID-19 pandemic, reinforcing safety measures and noting no government-mandated shutdowns in Q1 2021, unlike 2020[27](index=27&type=chunk)[28](index=28&type=chunk) - In Q1 2021, the company raised **$12.7 million** through a Canadian Development Expenses (CDE) flow-through common share issuance and **$31.5 million** through an equity financing, to mitigate potential capital market access risks due to economic downturns[29](index=29&type=chunk) - An illegal blockade at the El Gallo project in Mexico on March 15, 2021, was successfully resolved by March 29, 2021, with a new 10-year agreement providing additional community support[30](index=30&type=chunk) - The adoption of ASU 2019-12 'Income Taxes (Topic 740)' in 2021 did not have a material impact on the company's financial statements[31](index=31&type=chunk) [NOTE 3 Operating Segment Reporting](index=10&type=section&id=NOTE%203%20OPERATING%20SEGMENT%20REPORTING) This note provides financial information disaggregated by the company's operating segments, including revenue, loss, and capital expenditures, for management's evaluation - The company's reportable segments are based on geographic regions or major mines/projects: USA, Canada, Mexico, MSC (Argentina), and Los Azules (Argentina)[32](index=32&type=chunk) Segment Revenue and Loss (Three months ended March 31, 2021, in thousands of U.S. dollars) | Segment | Revenue from gold and silver sales | Segment loss | Capital expenditures | | :--- | :--- | :--- | :--- | | USA | $12,893 | $(3,353) | $757 | | Canada | $8,561 | $(5,547) | $9,567 | | Mexico | $2,286 | $(2,191) | $— | | MSC | $— | $(574) | $— | | Los Azules | $— | $(650) | $— | | Total | $23,740 | $(12,315) | $10,324 | Segment Revenue and Loss (Three months ended March 31, 2020, in thousands of U.S. dollars) | Segment | Revenue from gold and silver sales | Segment loss | Capital expenditures | | :--- | :--- | :--- | :--- | | USA | $14,317 | $(91,557) | $1,807 | | Canada | $12,739 | $(687) | $3,729 | | Mexico | $4,344 | $(1,010) | $— | | MSC | $— | $(2,676) | $— | | Los Azules | $— | $(576) | $— | | Total | $31,400 | $(96,506) | $5,536 | - Total revenue from gold and silver sales decreased from **$31.4 million** in Q1 2020 to **$23.7 million** in Q1 2021. Segment loss significantly improved from **$(96.5) million** in Q1 2020 to **$(12.3) million** in Q1 2021, largely due to the absence of the impairment charge in the USA segment[34](index=34&type=chunk)[36](index=36&type=chunk) [NOTE 4 Other Income](index=12&type=section&id=NOTE%204%20OTHER%20INCOME) This note details the components of other income, including COVID-19 relief funds, investment gains/losses, and foreign currency impacts Summary of Other Income (Three months ended March 31, in thousands of U.S. dollars) | Category | 2021 | 2020 | | :--- | :--- | :--- | | COVID-19 Relief | $1,111 | $— | | Unrealized and realized (loss) on investments | $— | $(898) | | Foreign currency (loss) gain | $291 | $1,808 | | Other income, net | $10 | $27 | | Total other income | $1,412 | $937 | - Total other income increased to **$1.4 million** in Q1 2021 from **$0.9 million** in Q1 2020, primarily due to **$1.1 million** in COVID-19 relief funds from the Canadian government[39](index=39&type=chunk) [NOTE 5 Investments](index=13&type=section&id=NOTE%205%20INVESTMENTS) This note provides information on the company's investment holdings, including marketable equity securities - As of March 31, 2021, the company held no marketable equity securities, compared to **$875 thousand** at March 31, 2020, after selling **$0.1 million** in Q1 2020[40](index=40&type=chunk) [NOTE 6 Receivables, Prepaids and Other Assets](index=13&type=section&id=NOTE%206%20RECEIVABLES%2C%20PREPAIDS%20AND%20OTHER%20ASSETS) This note details the composition of current assets such as government sales tax receivables, prepaids, and other current assets Receivables, Prepaids and Other Assets (in thousands of U.S. dollars) | Category | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Government sales tax receivable | $1,502 | $1,810 | | Prepaids and other assets | $4,198 | $3,880 | | Receivables and other current assets | $5,700 | $5,690 | - Government sales tax receivable decreased from **$1.8 million** at December 31, 2020, to **$1.5 million** at March 31, 2021, with **$0.6 million** of Mexican VAT collected in Q1 2021[41](index=41&type=chunk) [NOTE 7 Inventories](index=13&type=section&id=NOTE%207%20INVENTORIES) This note provides a breakdown of the company's inventory balances, including material on leach pads, in-process inventory, stockpiles, and materials and supplies Inventories (in thousands of U.S. dollars) | Category | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Material on leach pads | $21,200 | $21,003 | | In-process inventory | $3,377 | $3,922 | | Stockpiles | $2,537 | $635 | | Precious metals | $1,560 | $1,344 | | Materials and supplies | $4,235 | $4,845 | | Total Inventories | $32,909 | $31,749 | | Less current portion | $27,910 | $26,964 | | Long-term portion | $4,999 | $4,785 | - Total inventories increased to **$32.9 million** at March 31, 2021, from **$31.7 million** at December 31, 2020, primarily due to an increase in stockpiles[42](index=42&type=chunk) - Inventory write-downs for Gold Bar and El Gallo totaled **$2.1 million** in Q1 2021, included in production costs applicable to sales and depreciation and depletion[42](index=42&type=chunk) [NOTE 8 Mineral Property Interests and Plant and Equipment](index=15&type=section&id=NOTE%208%20MINERAL%20PROPERTY%20INTERESTS%20AND%20PLANT%20AND%20EQUIPMENT) This note details the company's investments in mineral properties, plant, and equipment, including any impairment assessments - The company did not identify any indicators of impairment for its long-lived assets in Q1 2021, unlike Q1 2020 which saw an **$83.8 million** impairment at Gold Bar[45](index=45&type=chunk)[83](index=83&type=chunk) [NOTE 9 Investment in Minera Santa Cruz S.A. ("MSC") – San José Mine](index=16&type=section&id=NOTE%209%20INVESTMENT%20IN%20MINERA%20SANTA%20CRUZ%20S.A.%20%28%22MSC%22%29%20%E2%80%93%20SAN%20JOS%C3%89%20MINE) This note provides financial and operational details regarding the company's 49% equity investment in the San José mine through Minera Santa Cruz S.A MSC Operating Results (100% basis, Three months ended March 31, in thousands of U.S. dollars) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Revenue from gold and silver sales | $53,303 | $37,390 | | Gross profit | $9,983 | $1,747 | | Net income (loss) | $582 | $(3,287) | | Portion attributable to McEwen Mining Inc. (49%) - Net income (loss) | $285 | $(1,611) | | Loss from investment in MSC, net of amortization | $(574) | $(2,676) | - MSC's revenue from gold and silver sales increased significantly to **$53.3 million** in Q1 2021 from **$37.4 million** in Q1 2020, leading to a net income of **$0.6 million** (vs. a loss of **$3.3 million** in Q1 2020)[48](index=48&type=chunk) - The company received **$5.0 million** in dividends from MSC in Q1 2021, compared to none in Q1 2020[49](index=49&type=chunk) [NOTE 10 Debt](index=17&type=section&id=NOTE%2010%20DEBT) This note outlines the company's debt obligations, including the senior secured term loan and its terms and conditions - The company's **$50.0 million** senior secured term loan was refinanced on June 25, 2020, extending principal repayments by two years, with monthly repayments starting August 31, 2022[52](index=52&type=chunk)[54](index=54&type=chunk) - The minimum working capital maintenance requirement was reduced to **$2.5 million** at March 31, 2021, increasing to **$10.0 million** by September 30, 2022[54](index=54&type=chunk) Long-term Debt Reconciliation (in thousands of U.S. dollars) | Metric | Three months ended March 31, 2021 | Year ended December 31, 2020 | | :--- | :--- | :--- | | Balance, beginning of year | $48,160 | $49,516 | | Interest expense | $1,368 | $5,394 | | Interest payments | $(1,202) | $(4,875) | | Balance, end of year | $48,326 | $48,160 | [NOTE 11 Asset Retirement Obligations](index=19&type=section&id=NOTE%2011%20ASSET%20RETIREMENT%20OBLIGATIONS) This note details the company's obligations related to the retirement of long-lived assets, including reclamation and remediation costs Asset Retirement Obligations Reconciliation (in thousands of U.S. dollars) | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Beginning balance | $34,000 | $32,201 | | Settlements | $(80) | $(267) | | Accretion of liability | $487 | $1,901 | | Adjustment reflecting updated estimates | $425 | $(54) | | Foreign exchange revaluation | $152 | $219 | | Ending balance | $34,984 | $34,000 | | Current portion | $3,817 | $3,232 | | Long-term portion | $31,167 | $30,768 | - Total asset retirement obligations increased to **$35.0 million** at March 31, 2021, from **$34.0 million** at December 31, 2020, primarily due to accretion and updated estimates[57](index=57&type=chunk) [NOTE 12 Shareholders' Equity](index=20&type=section&id=NOTE%2012%20SHAREHOLDERS'%20EQUITY) This note provides information on the components of shareholders' equity, including common stock issuances, stock-based compensation, and accumulated deficit - In Q1 2021, the company completed a registered direct offering of **30 million** common shares for net proceeds of **$29.9 million** and issued **12.6 million** flow-through common shares for net proceeds of **$12.0 million**, primarily to fund the Froome deposit development and strengthen the balance sheet[58](index=58&type=chunk)[59](index=59&type=chunk) - The company is required to spend flow-through share proceeds on eligible Canadian Development Expenses (CDE) and Canadian Exploration Expenditures (CEE) by the end of 2022, having incurred **$7.9 million** in CDE and **$4.3 million** in CEE as of March 31, 2021[60](index=60&type=chunk)[63](index=63&type=chunk) - No stock options were exercised in Q1 2021, and the company is prevented from paying dividends on common stock while the senior secured loan is outstanding[73](index=73&type=chunk)[74](index=74&type=chunk) [NOTE 13 Net Loss Per Share](index=23&type=section&id=NOTE%2013%20NET%20LOSS%20PER%20SHARE) This note explains the calculation of basic and diluted net loss per share, including the treatment of potentially dilutive instruments - Potentially dilutive instruments (options and warrants) were excluded from diluted net loss per share calculation for Q1 2021 and Q1 2020 as they would be anti-dilutive[75](index=75&type=chunk)[76](index=76&type=chunk) [NOTE 14 Related Party Transactions](index=23&type=section&id=NOTE%2014%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions and balances with related parties, including key management personnel and entities under common control - The company incurred **$11 thousand** in expenses to Lexam L.P. (controlled by CEO Robert R. McEwen) and **$35 thousand** to REVlaw (owned by General Counsel Carmen Diges) in Q1 2021 for services like aircraft use and legal services[77](index=77&type=chunk)[78](index=78&type=chunk) - An affiliate of Mr. McEwen, a lender in the **$50.0 million** term loan, received **$0.6 million** in interest payments in Q1 2021, on the same terms as non-affiliated lenders[79](index=79&type=chunk) [NOTE 15 Fair Value Accounting](index=25&type=section&id=NOTE%2015%20FAIR%20VALUE%20ACCOUNTING) This note provides information on the fair value measurements of financial instruments and other assets and liabilities - The company held no marketable securities at December 31, 2020, and the fair value of financial assets and liabilities at March 31, 2021, approximated their carrying values[81](index=81&type=chunk) - No impairment of mineral property was recorded in Q1 2021, contrasting with an **$83.8 million** impairment at the Gold Bar mine in Q1 2020[83](index=83&type=chunk) [NOTE 16 Commitments and Contingencies](index=25&type=section&id=NOTE%2016%20COMMITMENTS%20AND%20CONTINGENCIES) This note details the company's contractual obligations, environmental reclamation bonds, streaming agreements, and other potential liabilities - The company has environmental reclamation bonding obligations of **$20.1 million** in Nevada and **$11.9 million** in Canada, covered by surety bonds with an **11%** deposit (**$3.6 million** restricted cash)[84](index=84&type=chunk)[85](index=85&type=chunk) - Under a streaming agreement, the company is obligated to sell **8%** of Black Fox gold production and **6.3%** from Pike River to Sandstorm Gold Ltd. at a discounted price until 2090, generating **$0.3 million** in revenue in Q1 2021[88](index=88&type=chunk)[89](index=89&type=chunk) - The company is committed to spending **$12.7 million** in CDE and **$18.3 million** in CEE from flow-through share issuances by 2022, having incurred **$7.9 million** in CDE and **$4.3 million** in CEE as of March 31, 2021[90](index=90&type=chunk)[91](index=91&type=chunk) [NOTE 17 Cash, Cash Equivalents and Restricted Cash](index=27&type=section&id=NOTE%2017%20CASH%2C%20CASH%20EQUIVALENTS%20AND%20RESTRICTED%20CASH) This note provides a reconciliation of cash, cash equivalents, and restricted cash balances Cash, Cash Equivalents, and Restricted Cash (in thousands of U.S. dollars) | Category | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $47,402 | $20,843 | | Restricted cash - non-current | $3,625 | $3,595 | | Total cash, cash equivalents, and restricted cash | $51,027 | $24,438 | - Total cash, cash equivalents, and restricted cash increased significantly to **$51.0 million** at March 31, 2021, from **$24.4 million** at December 31, 2020[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and future outlook, updating the plan of operation and analyzing performance for Q1 2021 compared to Q1 2020. It includes an overview of operations, key highlights, detailed financial review, liquidity assessment, and a review of individual segment performance, along with discussions on non-GAAP measures, critical accounting policies, and forward-looking statements [Overview](index=28&type=section&id=OVERVIEW) This section provides a general introduction to the company's business, operations, and the impact of the COVID-19 pandemic - McEwen Mining Inc. is a gold, silver, and copper exploration, development, and production company with operations in the US, Canada, Mexico, and Argentina, including 100% owned mines and a 49% interest in the San José mine[99](index=99&type=chunk)[100](index=100&type=chunk) - The company continues to monitor and respond to the COVID-19 pandemic, implementing safety measures and noting no government-mandated shutdowns in Q1 2021, unlike 2020[106](index=106&type=chunk)[108](index=108&type=chunk) - In Q1 2021, the company received **$1.1 million** in COVID-19 relief funds from the Canadian government (CEWS and CERS programs)[109](index=109&type=chunk) [Operating and Financial Highlights](index=32&type=section&id=OPERATING%20AND%20FINANCIAL%20HIGHLIGHTS) This section summarizes the key operational and financial achievements and metrics for the reporting period - Total gold equivalent ounces produced in Q1 2021 was **30,600**, including **16,700** attributable ounces from the San José mine[113](index=113&type=chunk) - Cash, cash equivalents, and restricted cash totaled **$51.0 million** as of March 31, 2021, bolstered by **$12.0 million** from flow-through shares and **$29.9 million** from an equity offering[113](index=113&type=chunk) - The company reported a cash gross profit of **$0.2 million** and a net loss of **$12.5 million** in Q1 2021, which included **$6.8 million** spent on exploration and advanced projects[113](index=113&type=chunk) - Dividends of **$5.0 million** were received from Minera Santa Cruz S.A ("MSC") in Q1 2021[113](index=113&type=chunk) - Mining at Black Fox is transitioning to the Froome deposit, with commercial production expected in Q4 2021, and a Preliminary Economic Assessment (PEA) for the Fox Complex expansion is expected by the end of Q2 2021[113](index=113&type=chunk)[117](index=117&type=chunk) [Selected Consolidated Financial and Operating Results](index=35&type=section&id=SELECTED%20CONSOLIDATED%20FINANCIAL%20AND%20OPERATING%20RESULTS) This section presents a summary of the company's key financial and operational performance indicators for the reporting periods Selected Consolidated Financial Results (Three months ended March 31, in thousands, except per share) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Revenue from gold and silver sales | $23,740 | $31,400 | | Production costs applicable to sales | $(23,589) | $(28,387) | | Net loss | $(12,466) | $(99,191) | | Net loss per share | $(0.03) | $(0.25) | | Cash (used in) operating activities | $(10,143) | $(11,908) | | Cash additions to mineral property interests and plant and equipment | $10,085 | $5,503 | Selected Consolidated Operating Results (Three months ended March 31, in thousands, except per ounce) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Produced - gold equivalent ounces (Total) | 30.6 | 35.1 | | Produced - gold equivalent ounces (100% owned) | 13.9 | 20.2 | | Produced - gold equivalent ounces (San José mine 49% attributable) | 16.7 | 14.9 | | Sold - gold equivalent ounces (Total) | 30.2 | 32.5 | | Average realized price ($/Au Eq. oz) | $1,763 | $1,591 | | Cash cost per ounce ($/Au Eq. oz sold) (100% owned) | $1,611 | $1,375 | | AISC per ounce ($/Au Eq. oz sold) (100% owned) | $1,777 | $1,768 | | Cash gross profit | $151 | $3,013 | - Net loss significantly decreased from **$99.2 million** in Q1 2020 to **$12.5 million** in Q1 2021, largely due to the absence of an **$83.8 million** impairment charge in the prior year[119](index=119&type=chunk) - Total gold equivalent ounces produced decreased from **35.1 thousand** in Q1 2020 to **30.6 thousand** in Q1 2021, while the average realized price per gold equivalent ounce increased from **$1,591** to **$1,763**[120](index=120&type=chunk) [Consolidated Performance](index=35&type=section&id=CONSOLIDATED%20PERFORMANCE) This section analyzes the overall financial performance of the company, highlighting significant changes in net loss and cash gross profit - Net loss decreased significantly to **$12.5 million** in Q1 2021 from **$99.2 million** in Q1 2020, primarily due to the absence of an **$83.8 million** impairment charge and a reduced loss from the MSC investment[122](index=122&type=chunk) - Cash gross profit decreased by **$2.8 million** to **$0.2 million** in Q1 2021, driven by lower production and revenues, partially offset by decreased production costs at Gold Bar[123](index=123&type=chunk) - Production from 100% owned mines decreased by **6,300** gold equivalent ounces (GEOs) in Q1 2021 compared to Q1 2020, while the San José mine's attributable production increased by **12%** to **16,700** GEOs[126](index=126&type=chunk)[127](index=127&type=chunk) [Consolidated Financial Review](index=37&type=section&id=CONSOLIDATED%20FINANCIAL%20REVIEW) This section provides a detailed analysis of the company's revenue, production costs, exploration expenses, and other income components - Revenue from gold and silver sales decreased by **24%** (**$7.7 million**) to **$23.7 million** in Q1 2021, due to **6,500** fewer gold equivalent ounces sold from 100% owned mines, partially offset by higher average realized gold prices (**$1,763/oz** vs. **$1,591/oz**)[128](index=128&type=chunk) - Production costs applicable to sales decreased by **17%** to **$23.6 million** in Q1 2021, despite a **19%** decrease in ounces sold, due to lower pre-strip costs and stockpile buildup at Gold Bar, partially offset by higher costs at Black Fox[130](index=130&type=chunk) - Exploration costs increased by **$1.2 million** to **$5.0 million** in Q1 2021, driven by ramped-up activities funded by flow-through share programs, focusing on the Timmins region[132](index=132&type=chunk) - Loss from investment in MSC decreased by **$2.1 million** to **$0.6 million** in Q1 2021, benefiting from increased attributable net income[133](index=133&type=chunk) - Other income increased to **$1.4 million** in Q1 2021, largely due to Canadian federal COVID-19 relief programs[137](index=137&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section assesses the company's ability to meet its short-term and long-term financial obligations, including cash position, financing activities, and working capital - Cash and cash equivalents increased from **$20.8 million** at December 31, 2020, to **$47.4 million** at March 31, 2021, primarily due to **$42.0 million** from financing activities[139](index=139&type=chunk) - Financing activities in Q1 2021 included **$12.7 million** (gross) from flow-through shares and **$31.5 million** (gross) from a registered direct equity offering[140](index=140&type=chunk) - Working capital increased by **$27.4 million** to **$35.3 million** at March 31, 2021, driven by the increase in cash[141](index=141&type=chunk) - Cash used in investing activities of **$5.1 million** in Q1 2021, with **$10.1 million** spent on mineral property and plant and equipment, mainly for the Froome deposit development, offset by a **$5.0 million** dividend received from MSC[143](index=143&type=chunk)[144](index=144&type=chunk) - The company believes it has sufficient liquidity to fund anticipated cash requirements for the next 12 months[145](index=145&type=chunk) [Operations Review](index=41&type=section&id=OPERATIONS%20REVIEW) This section provides a detailed review of the operational performance and key developments across the company's various mining segments [U.S.A. Segment](index=41&type=section&id=U.S.A.%20Segment) This section reviews the operational and financial performance of the Gold Bar mine in the USA segment, including production, revenue, and costs - Gold Bar mine produced **7,415** gold equivalent ounces in Q1 2021, a **19%** decrease from Q1 2020, due to winter weather and lower leach pad ounces[150](index=150&type=chunk) - Revenue from Gold Bar decreased by **$1.4 million** to **$12.9 million** in Q1 2021, reflecting lower production, partially offset by higher gold prices[151](index=151&type=chunk) - Cash cost per ounce at Gold Bar was **$1,865** in Q1 2021, comparable to Q1 2020, while AISC per ounce improved to **$1,934** due to decreased sustaining capital[152](index=152&type=chunk) - Exploration activities in Nevada focused on the Ridge deposit for resource data and Gold Bar South, with mining scheduled to begin in Q2 2022, pending permits[153](index=153&type=chunk)[155](index=155&type=chunk) [Canada Segment](index=44&type=section&id=Canada%20Segment) This section details the operational performance of the Black Fox mine and exploration activities in the Canada segment, including the transition to the Froome deposit - Black Fox mine production decreased by **37%** to **5,227** gold equivalent ounces in Q1 2021, as operations transition to the Froome deposit, expected to reach commercial production in Q4 2021[160](index=160&type=chunk) - Cash cost per ounce at Black Fox increased to **$1,262** in Q1 2021 (from **$838** in Q1 2020) due to lower average grade and expensing underground development costs as mine life winds down[162](index=162&type=chunk) - All-in sustaining costs at Black Fox decreased by **$3.3 million** (**29%**) in Q1 2021 due to significantly lower in-mine operational expenses and capitalized underground mine development[163](index=163&type=chunk) - Underground development successfully reached the Froome deposit in Q1 2021, with plans on schedule for Q4 2021 commercial production[165](index=165&type=chunk) - Exploration spending in Timmins increased to **$3.4 million** in Q1 2021, focusing on Stock West and Stock Main targets, with a Preliminary Economic Assessment (PEA) for the Fox Complex expansion expected by Q2 2021[167](index=167&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk) [Mexico Segment](index=49&type=section&id=Mexico%20Segment) This section covers the operational status of the El Gallo Project and the development of the Fenix Project in the Mexico segment - El Gallo Project's gold equivalent production decreased to **1,300** ounces in Q1 2021 (from **2,700** in Q1 2020) as activities are limited to residual leaching and are expected to wind down in 2021[177](index=177&type=chunk)[180](index=180&type=chunk) - Mining operations at El Gallo were temporarily suspended for two weeks in Q1 2021 due to an illegal blockade, which was resolved with a new ten-year agreement with local communities[179](index=179&type=chunk) - The Fenix Project feasibility study, published in February 2021, envisions a **9.5-year** mine life with a **28%** after-tax IRR, with initial capital expenditure of **$42 million** for Phase 1 (gold production) and **$24 million** for Phase 2 (silver production)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) - The company incurred **$1.3 million** in Q1 2021 to advance the Fenix Project and is evaluating financing alternatives, including potential divestiture of its Mexican business unit[185](index=185&type=chunk) [MSC Segment, Argentina](index=52&type=section&id=MSC%20Segment%2C%20Argentina) This section reviews the operational and financial performance of the San José mine, in which the company holds a 49% interest through MSC San José Mine Operating Results (100% basis, Three months ended March 31, in thousands, except otherwise indicated) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Gold equivalent ounces Produced | 34.1 | 30.3 | | Gold equivalent ounces Sold | 33.4 | 24.9 | | Revenue from gold and silver sales | $53,303 | $37,390 | | Average realized price: Gold ($/Au oz) | $1,585 | $1,697 | | Average realized price: Silver ($/Ag oz) | $23.62 | $13.03 | | Cash cost per ounce ($/Au Eq. oz sold) | $1,088 | $1,138 | | AISC per ounce ($/Au Eq. oz sold) | $1,328 | $1,592 | - San José mine's gold and silver production increased slightly in Q1 2021, with revenue from sales increasing by **43%** to **$53.3 million** due to higher gold equivalent ounces sold and significant increases in average realized silver prices[190](index=190&type=chunk) - Cash cost per ounce and AISC per ounce sold at San José were lower in Q1 2021 compared to Q1 2020, primarily due to increased gold ounces sold[193](index=193&type=chunk) - The company's **49%** attributable share of MSC operations resulted in **$0.3 million** in net income in Q1 2021, a significant improvement from a **$2.7 million** loss in Q1 2020, driven by increased gross profit[195](index=195&type=chunk) - McEwen Mining received **$5.0 million** in dividends from MSC in Q1 2021 and is evaluating potential divestiture of its investment in MSC[196](index=196&type=chunk)[197](index=197&type=chunk) [Los Azules Segment, Argentina](index=55&type=section&id=Los%20Azules%20Segment%2C%20Argentina) This section provides an update on the Los Azules copper project in Argentina, including preliminary engineering and strategic alternatives - Work continued on preliminary engineering and cost estimates for a low-altitude access route for the Los Azules copper project, with site surveying and staking completed in January 2021[200](index=200&type=chunk) - The company is evaluating strategic alternatives for Los Azules, including a joint venture with a senior mining company or spinning out the asset into a new public company, while also identifying opportunities to improve project economics[202](index=202&type=chunk) [Non-GAAP Financial Performance Measures](index=56&type=section&id=NON-GAAP%20FINANCIAL%20PERFORMANCE%20MEASURES) This section defines and reconciles non-GAAP financial measures used by management to evaluate the company's performance and liquidity - The report includes non-GAAP measures like cash gross profit, cash costs, all-in sustaining costs, average realized price per ounce, and liquid assets, used by management to evaluate performance and liquidity, but these do not have standardized definitions and should not be used in isolation[205](index=205&type=chunk)[207](index=207&type=chunk)[210](index=210&type=chunk)[219](index=219&type=chunk)[222](index=222&type=chunk) Cash Gross Profit Reconciliation (Three months ended March 31, 2021, in thousands) | Segment | Gross (loss) profit | Add: Depreciation and depletion | Cash gross (loss) profit | | :--- | :--- | :--- | :--- | | Gold Bar | $(2,405) | $1,741 | $(664) | | Black Fox | $(1,490) | $3,395 | $1,905 | | El Gallo | $(1,091) | $1 | $(1,090) | | Total (100% owned) | $(4,986) | $5,137 | $151 | | San José mine (100% basis) | $9,983 | $6,953 | $16,936 | Cash Costs and AISC Reconciliation (100% owned, Three months ended March 31, 2021, in thousands, except per ounce) | Metric | Gold Bar | Black Fox | Total | | :--- | :--- | :--- | :--- | | Production costs applicable to sales - Cash costs | $13,557 | $6,656 | $20,213 | | All-in sustaining costs | $14,061 | $8,232 | $22,293 | | Ounces sold (Au Eq. oz) | 7.3 | 5.3 | 12.5 | | Cash cost per ounce ($/Au Eq. oz sold) | $1,865 | $1,262 | $1,611 | | AISC per ounce ($/Au Eq. oz sold) | $1,934 | $1,560 | $1,777 | Average Realized Price Reconciliation (100% owned, Three months ended March 31, 2021, in thousands, except per ounce) | Metric | 2021 | | :--- | :--- | | Revenue from gold and silver sales | $23,740 | | Less: revenue from gold sales, stream | $465 | | Revenue from gold and silver sales, excluding stream | $23,275 | | Gold equivalent ounces sold, excluding stream | 13.2 | | Average realized price per Au Eq. oz sold, excluding stream | $1,763 | Liquid Assets (in thousands) | Metric | March 31, 2021 | March 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $47,402 | $28,774 | | Restricted cash | $3,625 | $— | | Investments | $— | $875 | | Precious Metals valued at market value | $1,493 | $1,323 | | Total liquid assets | $52,520 | $30,972 | [Critical Accounting Policies](index=62&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This section discusses the accounting policies that require significant judgment and estimation, and any changes thereto - There were no significant changes in the company's Critical Accounting Policies since December 31, 2020[225](index=225&type=chunk) [Forward-Looking Statements](index=62&type=section&id=FORWARD-LOOK%20STATEMENTS) This section provides cautionary statements regarding the forward-looking nature of certain information in the report, highlighting inherent uncertainties and risks - The report contains forward-looking statements regarding anticipated exploration results, production estimates, development plans, impacts of COVID-19, strategic alternatives, and expected financial outcomes[226](index=226&type=chunk) - These statements are based on estimates and assumptions subject to significant business, economic, and competitive uncertainties, risks, and contingencies, and actual results could differ materially[228](index=228&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the report date, and the company undertakes no obligation to update them except as required by law[229](index=229&type=chunk)[233](index=233&type=chunk) [Risk Factors Impacting Forward-Looking Statements](index=64&type=section&id=Risk%20Factors%20Impacting%20Forward-Looking%20Statements) This section outlines the key risk factors that could materially affect the company's future performance and the accuracy of its forward-looking statements - Key risk factors include the ability to raise funds, impacts of pandemics (COVID-19), securing permits, decisions of foreign countries, fluctuations in commodity prices and exchange rates, timing of mine production, and changes in business strategy[230](index=230&type=chunk)[234](index=234&type=chunk) - Other risks involve retaining key personnel, technological changes, operating costs, access to resources, exploration results, uncertainty of reserve estimates, litigation, regulatory changes, community impacts, and continued listing on public exchanges[230](index=230&type=chunk)[234](index=234&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section details McEwen Mining Inc.'s exposure to various market risks, including foreign currency exchange rates, equity price fluctuations, commodity price volatility (gold and silver), credit risk, interest rate risk, and inflationary risk. It explains how these risks could impact the company's financial condition and results of operations, noting that the company does not use derivative financial instruments to manage market risk [Foreign Currency Risk](index=67&type=section&id=Foreign%20Currency%20Risk) This section discusses the company's exposure to fluctuations in foreign currency exchange rates, particularly for Canadian dollars, Mexican pesos, and Argentine pesos - The company is exposed to foreign currency risk from expenses, labor, and assets denominated in Canadian dollars, Mexican pesos, and Argentine pesos[237](index=237&type=chunk) - In Q1 2021, the Argentine peso devalued **9%** (vs. **7%** in Q1 2020), the Mexican peso devalued **3%** (vs. **20%** in Q1 2020), and the Canadian dollar appreciated **1%** (vs. **8%** depreciation in Q1 2020) against the U.S. dollar[238](index=238&type=chunk)[239](index=239&type=chunk) - A **1%** change in the Canadian dollar would result in a gain/loss of less than **$0.1 million** on the **$4.5 million** Canadian cash balance at March 31, 2021[241](index=241&type=chunk) - The company faces foreign currency risk on its Mexican VAT receivable of **$0.7 million**, where a **1%** change in the Mexican peso would result in an immaterial gain/loss[242](index=242&type=chunk) [Equity Price Risk](index=67&type=section&id=Equity%20Price%20Risk) This section addresses the risk associated with potential volatility in the company's common stock price and its investments in other entities - The company faces equity price risk due to potential volatility in its common stock price, which could affect its ability to raise future funding through equity sales[243](index=243&type=chunk) - Investments in other mining sector entities expose the company to fluctuations in fair value, potentially leading to gains or losses[244](index=244&type=chunk) [Commodity Price Risk](index=69&type=section&id=Commodity%20Price%20Risk) This section explains the significant impact of gold and silver market price changes on the company's revenues and cash flows, given its unhedged sales - Changes in gold and silver market prices significantly affect the company's results and cash flows; a **10%** change in prices would impact Q1 2021 revenues by approximately **$2.4 million**[246](index=246&type=chunk) - The company does not hedge its sales, making it fully exposed to commodity price changes, and holds no gold or silver sales subject to final pricing as of March 31, 2021[248](index=248&type=chunk)[246](index=246&type=chunk) [Credit Risk](index=69&type=section&id=Credit%20Risk) This section outlines the company's exposure to credit risk from sales agreements, receivables, and surety bonds for reclamation obligations - The company is exposed to credit risk from precious metals sales agreements with financial institutions and refineries, though no significant credit exposure is anticipated[249](index=249&type=chunk) - Credit risk also exists for the **$0.7 million** Mexican VAT receivable, due to uncertain collection timing and the possibility that Mexican operations may not generate sufficient taxable profits to offset it[250](index=250&type=chunk) - The company has **$32.4 million** in surety bonds for reclamation obligations in Nevada and Ontario, carrying a risk that the surety may default or bonds may no longer be accepted, requiring cash replacement[251](index=251&type=chunk) [Interest Rate Risk](index=69&type=section&id=Interest%20Rate%20Risk) This section assesses the company's exposure to changes in interest rates, noting that its outstanding debt is primarily at fixed rates - The company considers its interest rate risk exposure insignificant as its outstanding debt, including equipment leases and the senior secured credit facility, is at fixed rates[252](index=252&type=chunk) [Inflationary Risk](index=69&type=section&id=Inflationary%20Risk) This section addresses the potential impact of inflation, particularly in Argentina, on the company's financial reporting and operations - Argentina's classification as a highly inflationary economy (cumulative inflation exceeding **100%** over three years) does not change the company's financial reporting methodology, as its Argentine subsidiaries' functional currency has always been the U.S. dollar[253](index=253&type=chunk) [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms that McEwen Mining Inc.'s management, including the CEO and CFO, evaluated the effectiveness of its disclosure controls and procedures as of March 31, 2021, concluding they were effective. It also states that there were no material changes in internal control over financial reporting during the quarter - As of March 31, 2021, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[256](index=256&type=chunk) - There were no material changes in the company's internal control over financial reporting during the quarter ended March 31, 2021[256](index=256&type=chunk) [PART II OTHER INFORMATION](index=72&type=section&id=Part%20II%20OTHER%20INFORMATION) This section provides additional information not covered in Part I, including details on equity sales, mine safety, and a list of exhibits [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports the sale of 12,600,600 common shares in an unregistered transaction on January 28, 2021, to institutional investors for gross proceeds of $12.7 million. The sale was conducted offshore under Rule 903 of Regulation S and was not offered or sold to a 'U.S. Person' - On January 28, 2021, the company sold **12,600,600** common shares in an unregistered transaction to institutional investors for gross proceeds of **$12.7 million**[258](index=258&type=chunk) - The sale was made in reliance on the exemption provided by Rule 903 of Regulation S, conducted offshore, and not offered or sold to a 'U.S. Person'[259](index=259&type=chunk) [Item 4. Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section outlines McEwen Mining's commitment to safety through its health and safety management system, which includes employee training, risk management, and compliance with mining regulations. It notes that the Gold Bar mine is subject to MSHA regulation, and the company may be cited for violations even when using independent contractors. Required mine safety information is included in Exhibit 95 - McEwen Mining prioritizes safety with a comprehensive health and safety management system, including training, risk management, and compliance with mining regulations[260](index=260&type=chunk) - The Gold Bar mine is regulated by MSHA, and the company may be considered an 'operator' and issued citations for violations, even with independent contractors[261](index=261&type=chunk) - Required mine safety violation information under Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K is included in Exhibit 95[262](index=262&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or incorporated by reference with the report, including articles of incorporation, bylaws, various agreements, certifications (Sarbanes-Oxley Act), mine safety disclosure, and XBRL formatted financial statements - Exhibit 3.1.1 and 3.1.2 refer to the Second Amended and Restated Articles of Incorporation and Articles of Amendment, respectively, filed in January 2012[264](index=264&type=chunk) - Exhibit 10.1 and 10.2 relate to the Placement Agency Agreement and Form of Securities Purchase Agreement from February 2021[264](index=264&type=chunk) - Certifications pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2002 for Robert R. McEwen (CEO) and Anna Ladd-Kruger (CFO) are included as Exhibits 31.1, 31.2, and 32[264](index=264&type=chunk) - Exhibit 95 contains mine safety disclosure, and Exhibit 101 includes iXBRL formatted financial statements[264](index=264&type=chunk) [SIGNATURES](index=74&type=section&id=SIGNATURES) This section formally attests to the accuracy and completeness of the report through the signatures of the company's principal executive and financial officers - The report was signed on May 7, 2021, by Robert R. McEwen, Chairman and Chief Executive Officer, and Anna Ladd-Kruger, Chief Financial Officer, pursuant to the Securities Exchange Act of 1934[268](index=268&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33190 MCEWEN MINING INC. (Name of registrant as specified in its charter) Colorado 84-0796160 (State or other jurisdiction of incorpora ...

Part I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) For the nine months ended September 30, 2020, McEwen Mining reported a **$128.8 million net loss**, driven by an **$83.8 million Gold Bar mine impairment**, decreased revenue, and reduced cash reserves Consolidated Statements of Operations Highlights (in thousands USD, except per share) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Revenue from gold and silver sales | $27,395 | $32,691 | $77,086 | $84,657 | | Gross (loss) profit | ($701) | $1,619 | ($13,261) | $7,724 | | Operating loss | ($10,075) | ($17,780) | ($130,554) | ($39,527) | | Net loss | ($9,778) | ($11,465) | ($128,783) | ($34,615) | | Basic and Diluted Net loss per share | ($0.02) | ($0.03) | ($0.32) | ($0.10) | Consolidated Balance Sheet Highlights (in thousands USD) | Asset/Liability | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $7,954 | $46,452 | | Total current assets | $57,546 | $91,978 | | **Non-Current Assets** | | | | Mineral property interests and plant and equipment, net | $330,202 | $418,791 | | **Total Assets** | **$506,180** | **$631,223** | | **Current Liabilities** | $35,983 | $48,795 | | **Total Liabilities** | **$125,379** | **$131,744** | | **Total Shareholders' Equity** | **$380,801** | **$499,479** | Consolidated Statements of Cash Flows Highlights (Nine months ended Sep 30, in thousands USD) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Cash used in operating activities | ($25,273) | ($21,916) | | Cash used in investing activities | ($7,756) | ($18,778) | | Cash provided by financing activities | $8,260 | $23,608 | | (Decrease) in cash, cash equivalents and restricted cash | ($24,758) | ($17,415) | [Significant Accounting Policies (COVID-19 & Going Concern)](index=8&type=section&id=NOTE%202%20SIGNIFICANT%20ACCOUNTING%20POLICIES) COVID-19 shutdowns in Q2 2020 impacted operations and liquidity, but management concluded no material going concern doubt exists for the next 12 months, contingent on capital access and expenditure control - All of the company's mine sites experienced temporary shutdowns in Q2 2020 due to COVID-19, which adversely impacted operations, cash flow, and liquidity[23](index=23&type=chunk)[25](index=25&type=chunk) - Uncertainty exists regarding the company's ability to generate sufficient cash flow to fund operations and comply with debt covenants over the next 12 months due to operational challenges and the impact of COVID-19[28](index=28&type=chunk) - Management is evaluating options such as accessing capital markets, asset sales, and expenditure reductions to ensure sufficient liquidity and has concluded that these plans mitigate substantial doubt about the company's ability to continue as a going concern[29](index=29&type=chunk) [Operating Segment Reporting](index=12&type=section&id=NOTE%203%20OPERATING%20SEGMENT%20REPORTING) The USA segment reported the largest loss of **$100.5 million** for the nine months ended September 30, 2020, primarily due to an **$83.8 million impairment** at the Gold Bar mine, with other segments also incurring losses Segment Loss for Nine Months Ended September 30, 2020 (in thousands USD) | Segment | Segment Loss | | :--- | :--- | | USA | $(100,480) | | Canada | $(14,931) | | Mexico | $(3,219) | | MSC | $(1,139) | | Los Azules | $(1,629) | | **Total Segment Loss** | **$(121,398)** | - The USA segment's significant loss was primarily due to an **$83.8 million** impairment charge on mineral property interests and plant and equipment at the Gold Bar mine[38](index=38&type=chunk) [Mineral Property Interests and Plant and Equipment (Impairment)](index=18&type=section&id=NOTE%209%20MINERAL%20PROPERTY%20INTERESTS%20AND%20PLANT%20AND%20EQUIPMENT) A **non-cash impairment charge of $83.8 million** was recorded on the Gold Bar mine's long-lived assets in Q1 2020, following a discounted cash flow analysis indicating the carrying value exceeded fair value - The company recorded a non-cash impairment charge of **$83.8 million** on the long-lived assets of the Gold Bar mine during Q1 2020[52](index=52&type=chunk) - The impairment was triggered by indicators that the carrying amounts of the assets might not be recoverable. The fair value was estimated using a discounted cash flow method based on a life-of-mine plan with preliminary estimated resources[50](index=50&type=chunk)[52](index=52&type=chunk) [Investment in Minera Santa Cruz S.A. (MSC) – San José Mine](index=20&type=section&id=NOTE%2010%20INVESTMENT%20IN%20MINERA%20SANTA%20CRUZ%20S.A.%20%28MSC%29%20%E2%80%93%20SAN%20JOS%C3%89%20MINE) The **49% interest in San José mine (MSC)** showed improved Q3 2020 income of **$2.6 million**, reducing the nine-month net loss to **$1.1 million**, despite a significant drop in dividends received Income (Loss) from Investment in MSC (in thousands USD) | Period | 2020 | 2019 | | :--- | :--- | :--- | | Three months ended Sep 30 | $2,582 | ($328) | | Nine months ended Sep 30 | ($1,139) | ($6,775) | - Dividends received from MSC for the nine months ended September 30, 2020, were **$0.3 million**, a sharp decline from **$4.0 million** received in the same period of 2019[59](index=59&type=chunk) [Debt](index=22&type=section&id=NOTE%2011%20DEBT) The company refinanced its **$50 million senior secured term loan** in June 2020, extending principal repayments to August 2022 and reducing working capital requirements, with **2.1 million shares** issued as bonus interest - The company refinanced its **$50 million** senior secured term loan in June 2020, extending principal repayments by two years to begin in August 2022[62](index=62&type=chunk) - The amended agreement reduced the minimum working capital requirement from **$10.0 million** to **$0** at June 30, 2020, and to **$2.5 million** from March 31, 2021, to the end of 2021[62](index=62&type=chunk) - As part of the refinancing, **2,091,700 shares** valued at **$1.875 million** were issued to lenders as bonus interest[64](index=64&type=chunk) [Shareholders' Equity](index=25&type=section&id=NOTE%2013%20SHAREHOLDERS%27%20EQUITY) In September 2020, the company raised **$10.4 million** gross proceeds from a flow-through common share issuance to fund Canadian exploration, with **$9.8 million** net proceeds classified as restricted cash for 2021 expenditures - On September 10, 2020, the company issued **6,298,166 flow-through common shares** for gross proceeds of **$10.4 million** to fund Canadian exploration[67](index=67&type=chunk) - The net proceeds of **$9.8 million** from the flow-through issuance are classified as restricted cash and must be spent on eligible Canadian exploration expenditures, which the company expects to fulfill in 2021[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q3 2020 saw **30,400 gold equivalent ounces** produced and a **$9.8 million net loss**, impacted by COVID-19 shutdowns and tightened liquidity, though management believes going concern risks are mitigated by strategic plans and project advancements - Q3 2020 production was **30,400 gold equivalent ounces**, with **14,500 ounces** from 100% owned properties and **15,900 attributable ounces** from the San José mine[108](index=108&type=chunk) - Reported a net loss of **$9.8 million** in Q3 2020, compared to a net loss of **$11.5 million** in Q3 2019. The nine-month net loss was **$128.8 million**, including an **$83.8 million** impairment charge[112](index=112&type=chunk)[114](index=114&type=chunk)[117](index=117&type=chunk) - Operations were adversely impacted by temporary COVID-19 shutdowns, and the San José mine continued to operate below normal capacity due to travel restrictions[101](index=101&type=chunk)[102](index=102&type=chunk)[108](index=108&type=chunk) - Completed a flow-through financing in Q3, providing **$10.4 million** in gross proceeds for exploration in the Timmins region[112](index=112&type=chunk) [Consolidated Financial Review](index=39&type=section&id=Consolidated%20Financial%20Review) Q3 2020 revenue decreased **16% to $27.4 million** due to lower sales volume, despite higher gold prices, while the net loss narrowed to **$9.8 million** due to reduced exploration expenses, but the nine-month loss widened to **$128.8 million** from the Gold Bar mine impairment - Q3 2020 revenue fell **16%** to **$27.4 million** due to a **36%** decrease in gold equivalent ounces sold, although the average realized price increased by **$447/oz** to **$1,925/oz**[124](index=124&type=chunk) - Production costs for Q3 2020 were flat at **$23.5 million** compared to Q3 2019, despite significantly lower sales volume, leading to higher unit costs[126](index=126&type=chunk) - Exploration costs for Q3 2020 decreased by **68%** to **$4.4 million** compared to the same period in 2019[132](index=132&type=chunk) - The nine-month results include a significant **$83.8 million** impairment charge on the Gold Bar mine[136](index=136&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity tightened with cash and restricted cash falling to **$18.1 million** at September 30, 2020, driven by **$25.3 million** in cash used for operations, though management believes mitigation plans address going concern uncertainties - Cash and current restricted cash decreased by **$28.4 million** to **$18.1 million** as of September 30, 2020, from year-end 2019[142](index=142&type=chunk) - Cash used in operations for the first nine months of 2020 was **$25.3 million**, an increase from **$21.9 million** in the same period of 2019[145](index=145&type=chunk) - Management identifies a going concern uncertainty due to expected resource reduction at Gold Bar, operational challenges, and COVID-19 impacts, but believes mitigation plans are in place[150](index=150&type=chunk)[151](index=151&type=chunk) [Operations Review](index=46&type=section&id=Operations%20Review) Q3 2020 operational performance varied, with Gold Bar and Black Fox mines producing **6,800** and **5,800 gold equivalent ounces** respectively at high AISC, while San José production fell **35%** due to COVID-19, despite improved financial contribution from higher metal prices Q3 2020 Production and Costs by Mine | Mine | Production (Au Eq. oz) | AISC per oz sold ($) | | :--- | :--- | :--- | | Gold Bar (USA) | 6,800 | 1,769 | | Black Fox (Canada) | 5,800 | 1,644 | | El Gallo (Mexico) | 2,000 | 1,505 (incremental cost) | | San José (49% attributable) | 15,900 | 1,538 | - A new reserve estimate and feasibility study update for the Gold Bar mine are expected by the end of 2020[155](index=155&type=chunk)[163](index=163&type=chunk) - Development of the underground access to the Froome deposit in Canada is **47% complete**, with production expected to begin in Q4 2021[174](index=174&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company faces significant market risks from unhedged commodity price volatility, foreign currency fluctuations in Canada, Mexico, and Argentina, and credit risk related to a **$0.7 million VAT receivable** in Mexico - The company does not use derivative instruments to hedge its exposure to commodity price risk. A **10%** change in gold and silver prices would have impacted nine-month 2020 revenues by approximately **$7.7 million**[251](index=251&type=chunk)[253](index=253&type=chunk) - Significant foreign currency risk exists due to operations in multiple countries. In the first nine months of 2020, the Argentine peso devalued by **21%** and the Mexican peso by **15%** against the U.S. dollar[242](index=242&type=chunk)[243](index=243&type=chunk) - The company faces credit risk on the collection of its **$0.7 million** VAT receivable from Mexican tax authorities[255](index=255&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of September 30, 2020, the company's disclosure controls and procedures were **effective**[261](index=261&type=chunk) - No material changes were made to the company's internal control over financial reporting during the third quarter of 2020[261](index=261&type=chunk) Part II OTHER INFORMATION [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On September 10, 2020, the company completed an unregistered, offshore sale of **6,298,166 common shares** to institutional investors, generating **$10.4 million** in gross proceeds under Regulation S - The company sold **6,298,166 shares** of common stock for gross proceeds of **$10.4 million** on September 10, 2020[263](index=263&type=chunk) - The sale was an unregistered, offshore transaction conducted under the exemption provided by Regulation S of the Securities Act[264](index=264&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company prioritizes safety, with its Gold Bar mine regulated by MSHA, and provides required Dodd-Frank Act mine safety disclosures in Exhibit 95 of this report - The Gold Bar mine's operations are subject to regulation and regular inspection by the Federal Mine Safety and Health Administration (MSHA)[266](index=266&type=chunk) - Mine safety disclosures required by Section 1503(a) of the Dodd-Frank Act are provided in Exhibit 95 filed with this Form 10-Q[267](index=267&type=chunk) [Other Information](index=48&type=section&id=Item%205.%20Other%20Information) Anna Ladd-Kruger was appointed Chief Financial Officer effective September 29, 2020, with an annual salary of **CAD $320,000**, performance bonus eligibility, and severance benefits including change of control protections - Anna Ladd-Kruger was appointed as Chief Financial Officer with an annual salary of **CAD $320,000**[268](index=268&type=chunk)[269](index=269&type=chunk) - Her employment agreement includes severance benefits, with **12 months' pay** in lieu of notice if terminated without cause in the first year, and an amount equal to **18 months of salary** plus target bonus if terminated without cause following a change in control[270](index=270&type=chunk)[272](index=272&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the CFO's employment agreement, Sarbanes-Oxley certifications, mine safety disclosures, and iXBRL financial statements - A list of exhibits filed with the report is provided, including corporate governance documents, certifications, and financial data files[275](index=275&type=chunk)