McEwen (NYSE:MUX) 2025 Conference September 10, 2025 01:15 PM ET Speaker0And gold's going up, silver's going up, copper's going up. And we're in Beaver Creek. Put a smile on your face. Alright. So, you know, the macro picture is really looking good right now.We have commodities at a fifty five year low. They're cyclical. The best bet in Goldman Sachs commodity issue right now is gold. It has the highest consistency. And gold investments around the world are at the lowest point they have been in many years.S ...

Core Insights - McEwen Inc. announced positive results from its 2025 drilling program at the Windfall Project in Nevada, indicating continuous gold mineralization and the discovery of a new fault zone with high grades of gold, silver, and base metals [1][2][9] Drilling Results - The drilling program revealed a gold equivalent grade of 62.5 g/t (1.82 oz/T) [2] - Drill hole WF033 encountered high-grade mineralization with 8.1 g/t (0.24 oz/T) gold over 8.7 meters (28.4 ft), including 50.3 g/t (1.47 oz/T) gold and 782 g/t (22.83 oz/T) silver over 1.3 meters (4.2 ft) [8][20] - Other notable results include 2.0 g/t (0.06 oz/T) gold over 38.3 meters (125.5 ft) from WF032 and 1.2 g/t (0.04 oz/T) gold over 17.1 meters (56.0 ft) from WF031 [8][20] Future Plans - The company plans to publish a resource estimate by year-end, test mineralization extensions, collect samples for metallurgical testing, and explore new targets near the project [9] - The Windfall area is situated on private land, which may expedite permitting processes [9] Company Overview - McEwen Inc. provides exposure to gold, silver, and copper through operations in the USA, Canada, and Argentina, with a flagship project, Los Azules, aiming to become a regenerative copper mine by 2038 [5][6] - Chairman Rob McEwen has personally invested over US$200 million and takes a salary of $1 per year, aligning his interests with shareholders [6]

Core Insights - McEwen Inc. reports continued positive drilling results at the Grey Fox Project, indicating strong gold grades and widths, which support resource growth ahead of an updated estimate expected in October 2025 [1][4][8] Strategic Highlights - The drilling results from the Gibson Expansion Zone and Grey Fox South (GFS) show high-grade veins and broad mineralized zones, with notable grades such as 10.1 g/t over 5.8 m and 4.8 g/t over 14.9 m [3][8] - The updated 3D mineralization model for Grey Fox is anticipated to enhance the resource estimate, with mineralization remaining open and demonstrating strong continuity [4][8] Project Update - The current Grey Fox resource consists of 1,538,000 gold ounces at 3.64 g/t Au Indicated and 458,000 gold ounces at 3.30 g/t Au Inferred, with significant contributions from the Gibson and GFS zones [8][25][23] - Geological similarities with major regional deposits, such as Canadian Malartic, reinforce the growth potential of Grey Fox [4][46] Exploration Outlook - The company aims to increase annual gold output beyond 200,000 ounces and reduce production costs, positioning itself favorably to capitalize on high gold prices [6][8] - The exploration drilling campaigns for 2024 and 2025 are focused on expanding the resource base and upgrading the confidence of the gold resource from Inferred to Indicated [26][27] Upcoming Milestones - An updated resource estimate for Grey Fox is scheduled for release in October 2025, with a Pre-feasibility Study (PFS) anticipated in Q1 2026 [8][28]

Group 1 - McEwen Mining (NYSE: MUX) shares have increased by 40% this year but have been trading sideways in the first half of 2025, indicating a period of consolidation as investors await further developments [1] - The company is being closely monitored by individual investors and financial writers, reflecting a growing interest in its performance and future prospects [1] Group 2 - The focus of analysis includes US stocks and emerging markets, particularly in Latin America, with an emphasis on global macro strategies and value investing [1] - Key sectors of interest for investment include energy, materials, and real estate, highlighting the company's strategic positioning within these industries [1] - The analysis favors companies with competitive advantages, strong management, solid cash flow, sustainable debt levels, and healthy profit margins, which are essential for long-term growth [1]

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Q2%202025%20Highlights) McEwen Inc. reported strong Q2 2025 financial improvements, including positive net income and doubled Adjusted EBITDA, despite lower production, while advancing strategic development projects towards 2030 production goals [Introduction and CEO Commentary](index=1&type=section&id=1.1%20Introduction%20and%20CEO%20Commentary) McEwen Inc. reported its Q2 and H1 2025 results, highlighting continued progress towards doubling gold and silver production by 2030. CEO Rob McEwen emphasized strategic investments in development projects, including the proposed acquisition of Canadian Gold Corp., and noted the positive impact of higher gold prices on the company's financial performance - McEwen Inc. is continuing momentum to **double gold and silver production by 2030**[1](index=1&type=chunk) - H1 2025 investments in development projects, including the proposed acquisition of Canadian Gold Corp., are aimed at positioning the company for operational growth[3](index=3&type=chunk) - Net income is expected to improve with the publishing of the Los Azules Feasibility Study, allowing capitalization of the majority of development costs (year-to-date expense was **$15.6 million**)[3](index=3&type=chunk) - Higher gold prices had a welcome positive impact on cash flow and net income[3](index=3&type=chunk) [Financial Highlights](index=1&type=section&id=1.2%20Financial%20Highlights) McEwen Inc. demonstrated significant financial improvements in Q2 2025, with gross profit increasing to $12.3 million and a positive net income of $3.0 million, a substantial turnaround from a net loss in Q2 2024. Adjusted EBITDA more than doubled, and liquidity strengthened considerably with a rise in cash and equivalents and positive working capital, despite a slight decrease in revenue due to lower GEOs sold | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | $12.3M | $10.8M | +$1.5M | | Gross Margin | 26% | N/A | N/A | | Net Income (Loss) | $3.0M | ($13.0M) | +$16.0M | | EPS | $0.06 | ($0.26) | +$0.32 | | Adjusted EBITDA | $17.3M | $7.2M | +$10.1M | | Adjusted EBITDA per share | $0.32 | $0.15 | +$0.17 | | Revenue | $46.7M | $47.5M | -$0.8M | | GEOs Sold | 14,549 | 20,630 | -6,081 | | Average Realized Gold Price per GEO | $3,298 | $2,355 | +$943 | | Cash and Equivalents (June 30) | $53.6M | $13.7M | +$39.9M | | Marketable Securities (June 30) | $16.0M | N/A | N/A | | Working Capital (June 30) | $61.8M | ($6.5M) (Dec 31, 2024) | +$68.3M | | Debt Principal Outstanding | $130M | $40.0M | +$90.0M | | McEwen Copper Implied Market Value | $984.0M | N/A | N/A | | McEwen Ownership in McEwen Copper | 46.4% | N/A | N/A | | McEwen Shares Outstanding | 54,106,415 | N/A | N/A | [Operational Highlights](index=2&type=section&id=1.3%20Operational%20Highlights) Q2 2025 saw a decrease in consolidated production to 27,554 GEOs, accompanied by higher cash costs and AISC for 100%-owned operations. The company actively invested in exploration programs ($5.4 million) and the Los Azules copper project ($7.0 million, McEwen Copper's share), while maintaining excellent safety standards with zero lost-time incidents | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Consolidated Production (GEOs) | 27,554 | 35,265 | -7,711 | | Cash Costs per GEO (100%-owned) | $1,906 | $1,554 | +$352 | | AISC per GEO (100%-owned) | $2,120 | $1,728 | +$392 | | Exploration Investment | $5.4M | N/A | N/A | | McEwen Copper Investment (Los Azules) | $7.0M | N/A | N/A | - Fox Complex is advancing the Froome West discovery to production and the Stock mine ramp[7](index=7&type=chunk) - Zero lost-time incidents were recorded across 100%-owned sites[7](index=7&type=chunk) [Outlook and Strategic Catalysts](index=2&type=section&id=2.%20Outlook%20and%20Strategic%20Catalysts) The company reaffirmed 2025 production guidance, anticipating lower costs in H2, and outlined ambitious 2030 production goals supported by key near-term catalysts [2025 Full-Year Guidance](index=2&type=section&id=2.1%202025%20Full-Year%20Guidance) McEwen Inc. reaffirmed its full-year production guidance for 2025, expecting 120,000–140,000 GEOs. The company anticipates that projected production increases in the second half of 2025 will lead to lower costs per GEO - Full-year production guidance reaffirmed at **120,000–140,000 GEOs**[7](index=7&type=chunk) - Projected production increases in H2 2025 are expected to drive costs per GEO lower[7](index=7&type=chunk) [Long-Term Production Goals and Key Catalysts](index=2&type=section&id=2.2%20Long-Term%20Production%20Goals%20and%20Key%20Catalysts) The company has set an ambitious long-term production goal of 250,000 to 300,000 consolidated GEOs by 2030. This target is supported by seven key near-term catalysts, including resource updates, strategic acquisitions, feasibility studies, and the commencement of new mine production - Production goal of **250,000 to 300,000 GEOs consolidated by 2030**[8](index=8&type=chunk) - Seven near-term catalysts include: resource update for Windfall and Lookout Mountain (Q4 2025), completing Canadian Gold Corp. acquisition (early 2026), Grey Fox Pre-feasibility Study (H1 2026), Stock Mine production commencement (mid-2026), potential future dividend from San José, continuing exploration updates, and Los Azules Feasibility Study (late Q3 2025)[9](index=9&type=chunk) [Individual Asset Performance](index=3&type=section&id=3.%20Individual%20Asset%20Performance) Individual mine performance in Q2 2025 showed varied production and cost trends, with Gold Bar and Fox Complex anticipating H2 improvements, while San José faced higher costs due to inflation [Gold Bar Mine, Nevada (100% owned)](index=3&type=section&id=3.1%20Gold%20Bar%20Mine%2C%20Nevada%20(100%25%20owned)) The Gold Bar Mine produced 8,406 GEOs in Q2 2025, with cash costs and AISC within guidance. Production is anticipated to increase and costs to decrease in H2 2025 as accelerated stripping activities conclude. Significant investments were made to extend the mine life and advance other nearby projects | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | 2025 Guidance | | :--- | :--- | :--- | :--- | :--- | :--- | | GEOs Produced | 8,406 | 12,297 | 16,094 | 24,013 | 40,000–45,000 | | Cash Costs/GEO | $1,679 | $1,532 | $1,419 | $1,313 | $1,500–$1,700 | | AISC/GEO | $1,792 | $1,634 | $1,986 | $1,404 | $1,700–$1,900 | - Accelerated stripping activity is nearing completion, with expected production increases and decreased costs per GEO in H2[12](index=12&type=chunk) - **$1.2 million** was spent at Gold Bar Mine to extend the current mine life beyond 2029[12](index=12&type=chunk) - **$1.3 million** was spent at Lookout Mountain and Windfall projects to advance them towards production[12](index=12&type=chunk) [Fox Complex Mine, Ontario (100% owned)](index=3&type=section&id=3.2%20Fox%20Complex%20Mine%2C%20Ontario%20(100%25%20owned)) The Fox Complex Mine produced 5,429 GEOs in Q2 2025 from lower-grade zones, resulting in higher cash costs and AISC, which are projected to decrease with increased output in H2. Exploration efforts led to a new high-grade gold discovery at Froome West, extending mine life, and significant investments were made in drilling at Grey Fox and developing the Stock ramp for mid-2026 commercial production | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | 2025 Guidance | | :--- | :--- | :--- | :--- | :--- | :--- | | GEOs Produced | 5,429 | 8,297 | 10,948 | 15,782 | 30,000–35,000 | | Cash Costs/GEO | $2,212 | $1,588 | $2,142 | $1,572 | $1,600–$1,800 | | AISC/GEO | $2,563 | $1,874 | $2,534 | $1,886 | $1,700–$1,900 | - Delineation drilling around Froome Mine led to the discovery of new high-grade gold mineralization at Froome West, expected to extend mine life through mid-2026[12](index=12&type=chunk) - **$2.9 million** invested at Grey Fox's Gibson Zone, completing **20,000 m** of drilling[12](index=12&type=chunk) - **$5.6 million** invested on Stock ramp, targeting commercial production by the middle of 2026[12](index=12&type=chunk) [San José Mine, Argentina (49% owned)](index=4&type=section&id=3.3%20San%20Jos%C3%A9%20Mine%2C%20Argentina%20(49%25%20owned)) Attributable production from the San José Mine decreased to 13,719 GEOs in Q2 2025 due to lower grades and recovery rates. Cash costs and AISC significantly increased, primarily driven by high inflation and increased contractor use, though H2 production growth is expected to mitigate these costs. The mine received a $2.2 million dividend in H1 2025 and built cash balances to $55.6 million | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | 2025 Guidance | | :--- | :--- | :--- | :--- | :--- | :--- | | Attributable GEOs Produced | 13,719 | 14,672 | 24,643 | 27,605 | 50,000–60,000 | | Cash Costs/GEO | $2,310 | $1,624 | $2,428 | $1,615 | $1,600–$1,800 | | AISC/GEO | $2,842 | $2,032 | $2,933 | $1,978 | $1,900–$2,100 | - Costs per GEO sold were influenced by high inflation outpacing the devaluation of the Argentine peso and increased use of contractors[15](index=15&type=chunk) - A **$2.2 million** dividend distribution was received during H1 2025[15](index=15&type=chunk) - Cash balances at San José mine reached **$55.6 million** (100% basis) as of June 30, 2025[15](index=15&type=chunk) [Project Updates and Corporate Developments](index=4&type=section&id=4.%20Project%20Updates%20and%20Corporate%20Developments) The company advanced the Los Azules copper project towards a Feasibility Study and expanded corporate capabilities through a milling agreement and the strategic acquisition of Canadian Gold Corp [McEwen Copper – Los Azules Project, Argentina (46.4% ownership)](index=4&type=section&id=4.1%20McEwen%20Copper%20%E2%80%93%20Los%20Azules%20Project%2C%20Argentina%20(46.4%25%20ownership)) McEwen Copper invested $15.6 million in Q2 2025 to advance the Los Azules copper project, with the Feasibility Study on track for late Q3 2025. The study is focused on optimizing cost estimates, hydrogeological modeling, and engineering to reduce upfront capital. An RIGI application was submitted to secure tax and regulatory benefits, and new copper targets have been identified for drilling - **$15.6 million** invested in Q2, advancing towards publishing a Feasibility Study in late Q3 2025[15](index=15&type=chunk) - Feasibility Study is progressing with a focus on cost estimates, hydrogeological modeling, and engineering optimization to reduce upfront capital[15](index=15&type=chunk) - A RIGI application was submitted (revised July 11, 2025) to secure significant tax and regulatory benefits[15](index=15&type=chunk) - Exploration has generated three other nearby copper targets which will be drilled in late fall of 2025[15](index=15&type=chunk) [Further Corporate Developments](index=4&type=section&id=4.2%20Further%20Corporate%20Developments) McEwen Inc. strategically expanded its operational capabilities by entering a milling agreement with Inventus Mining Corp. to optimize costs and signed a binding Letter of Intent to acquire Canadian Gold Corp. This acquisition aims to significantly increase the company's resource base and future production in Manitoba, with immediate plans for resource updates, economic assessment, and permit amendments to restart the Tartan Mine - On July 2, 2025, the Company entered into a milling agreement with Inventus Mining Corp. to utilize excess milling capacity and reduce cost per ounce[15](index=15&type=chunk) - On July 27, 2025, the Company signed a binding LOI to acquire Canadian Gold Corp., a strategic move to increase its resource base and future production in Manitoba[15](index=15&type=chunk) - Upon completion of the acquisition, next steps include updating the resource estimate, preparing a preliminary economic assessment, and amending mining permits for a quick restart of the Tartan Mine, alongside continued exploration[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=5.%20Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures, including Cash Costs, AISC, and Adjusted EBITDA, used to evaluate operational performance and cash flow, emphasizing their non-standardized nature [Cautionary Note and Definitions](index=6&type=section&id=5.1%20Cautionary%20Note%20and%20Definitions) This section provides a cautionary note on non-GAAP financial measures like Cash Costs, AISC, and Adjusted EBITDA, clarifying that they are common in the gold mining industry but lack standardized definitions under U.S. GAAP. The company uses these measures to evaluate operational performance and cash flow, but stresses they should not be considered in isolation. Detailed definitions for Cash Costs and All-in Sustaining Costs (AISC) are provided, outlining their components - Non-GAAP performance measures (Cash Costs, AISC, Adjusted EBITDA) are common in the gold mining industry but do not have standardized definitions under U.S. GAAP and should not be considered in isolation[22](index=22&type=chunk) - Cash costs include mining, processing, on-site G&A, community and permitting costs, royalty costs, refining and treatment charges, sales costs, export taxes, and operational stripping costs, excluding depreciation and amortization[25](index=25&type=chunk) - All-in sustaining costs (AISC) consist of cash costs plus accretion of retirement obligations, amortization of asset retirement costs, environmental rehabilitation, sustaining exploration and development, sustaining capital expenditures, and sustaining lease payments, excluding corporate G&A[26](index=26&type=chunk) [Reconciliation of Cash Costs and All-In Sustaining Costs (AISC)](index=7&type=section&id=5.2%20Reconciliation%20of%20Cash%20Costs%20and%20All-In%20Sustaining%20Costs%20(AISC)) The report presents detailed reconciliations of Cash Costs and All-In Sustaining Costs (AISC) to production costs applicable to sales for both 100%-owned operations (Gold Bar, Fox Complex) and the 49%-owned San José Mine. These reconciliations cover Q2 and H1 periods for 2025 and 2024, providing transparency on the calculation of these non-GAAP operational metrics | Metric | Q2 2025 (Total) | Q2 2024 (Total) | H1 2025 (Total) | H1 2024 (Total) | | :--- | :--- | :--- | :--- | :--- | | Production costs applicable to sales (100% owned) | $27,733 | $32,066 | $47,338 | $57,176 | | All-in sustaining costs | $30,851 | $35,657 | $60,994 | $64,352 | | Ounces sold, including stream (GEO) | 14,549 | 20,630 | 27,596 | 40,434 | | Cash cost per ounce sold ($/GEO) | $1,906 | $1,554 | $1,715 | $1,414 | | AISC per ounce sold ($/GEO) | $2,120 | $1,728 | $2,210 | $1,592 | | Metric | Q2 2025 (100% basis) | Q2 2024 (100% basis) | H1 2025 (100% basis) | H1 2024 (100% basis) | | :--- | :--- | :--- | :--- | :--- | | Production costs applicable to sales | $63,603 | $48,220 | $120,191 | $96,105 | | All-in sustaining costs | $78,246 | $60,342 | $145,218 | $117,694 | | Ounces sold (GEO) | 27,530 | 29,699 | 49,507 | 59,501 | | Cash cost per ounce sold ($/GEO) | $2,310 | $1,624 | $2,428 | $1,615 | | AISC per ounce sold ($/GEO) | $2,842 | $2,032 | $2,933 | $1,978 | [Reconciliation of Adjusted EBITDA](index=9&type=section&id=5.3%20Reconciliation%20of%20Adjusted%20EBITDA) The reconciliation of Adjusted EBITDA, a non-GAAP measure, is provided to evaluate operating performance and cash flow from gold operations, excluding the impacts of McEwen Copper. Adjusted EBITDA significantly increased to $17.3 million in Q2 2025 from $7.2 million in Q2 2024, and to $26.0 million in H1 2025 from $13.5 million in H1 2024, reflecting improved operational profitability - Adjusted EBITDA is a non-GAAP measure used to evaluate operating performance and ability to generate cash flow from gold operations, excluding McEwen Copper's income or loss impacts[34](index=34&type=chunk) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Income (loss) before income and mining taxes | $1,929 | ($15,371) | ($5,420) | ($38,311) | | Depreciation and depletion | $6,853 | $4,810 | $13,024 | $15,088 | | Loss from investment in McEwen Copper Inc. | $6,978 | $16,816 | $15,556 | $34,828 | | Interest expense | $1,549 | $972 | $2,858 | $1,945 | | **Adjusted EBITDA** | **$17,309** | **$7,227** | **$26,018** | **$13,550** | | Weighted average shares outstanding (thousands) | 53,968 | 49,718 | 53,623 | 49,580 | | Adjusted EBITDA per share | $0.32 | $0.15 | $0.49 | $0.27 | [Company Information and Disclosures](index=9&type=section&id=6.%20Company%20Information%20and%20Disclosures) This section provides an overview of McEwen Inc.'s operations and strategic vision, details technical information approval, and includes important forward-looking statements and contact information [About McEwen](index=9&type=section&id=6.1%20About%20McEwen) McEwen Inc. is a mining company focused on gold, copper, and silver in the Americas, operating three mines and developing the Los Azules copper project in Argentina, which aims for carbon neutrality by 2038. CEO Rob McEwen, a significant personal investor, is committed to building shareholder value and establishing a dividend, taking a symbolic $1 annual salary - McEwen provides exposure to gold, copper, and silver in the Americas through three operating mines (USA, Canada, Argentina) and a large, advanced-stage copper development project in Argentina[37](index=37&type=chunk) - The Los Azules copper project is designed to become one of the world's first regenerative copper mines, committed to achieving **carbon neutrality by 2038**[37](index=37&type=chunk) - Rob McEwen, Chairman and Chief Owner, has personally invested **US$205 million**, takes a salary of **$1/year**, and aims to build shareholder value and establish a dividend[38](index=38&type=chunk) [Technical Information and Reliability of San José Data](index=9&type=section&id=6.2%20Technical%20Information%20and%20Reliability%20of%20San%20Jos%C3%A9%20Data) The technical content of the news release has been reviewed and approved by William Shaver, COO of McEwen Mining, a Qualified Person. The company relies on Minera Santa Cruz S.A. (MSC) for financial information regarding the San José Mine, which is accounted for using the equity method, noting that MSC's reported results are unaudited - The technical content of this news release related to financial results, mining and development projects has been reviewed and approved by William (Bill) Shaver, P.Eng., COO of McEwen Mining and a Qualified Person[36](index=36&type=chunk) - The Company relies on the management of Minera Santa Cruz S.A. (MSC) for accurate financial information prepared in accordance with GAAP for the San José Mine, and such results are unaudited[36](index=36&type=chunk) [Forward-Looking Statements and Contact Information](index=10&type=section&id=6.3%20Forward-Looking%20Statements%20and%20Contact%20Information) This section includes a cautionary statement regarding forward-looking statements, emphasizing that they are subject to significant business, economic, and competitive uncertainties and risks that could cause actual results to differ materially. It also provides comprehensive contact information for investor relations and links to the company's digital platforms - This news release contains forward-looking statements and information, which are necessarily based upon estimates and assumptions subject to significant business, economic, and competitive uncertainties, risks, and contingencies[40](index=40&type=chunk) - Risks and uncertainties include fluctuations in market price of precious metals, mining industry risks, political/economic/social/security risks, permitting, construction, litigation, capital markets, environmental risks, uncertainty in resource calculation, and foreign exchange volatility[40](index=40&type=chunk) - Contact information for investor relations and links to the company's website and social media channels are provided[42](index=42&type=chunk)

Financial Data and Key Metrics Changes - Total company revenue for Q2 decreased by 5% year over year to $675 million, aligning with the outlook range of down 4% to 7% [16] - Adjusted EBITDA in Q2 decreased by 14% year over year to $151 million, primarily due to declines in high-margin political and AMS revenues [23] - Cash and cash equivalents totaled $757 million at quarter end, with net leverage finishing at 2.8 times [24] Business Line Data and Key Metrics Changes - AMS revenue declined by 4% year over year to $288 million, reflecting ongoing macroeconomic headwinds [16] - Distribution revenue was flat year over year at $370 million, impacted by subscriber declines but partially offset by contractual rate increases [19] - Non-programming expenses decreased by 3% year over year due to operational cost-cutting initiatives [21] Market Data and Key Metrics Changes - The digital products segment showed strong double-digit growth year over year for the third consecutive quarter, indicating a positive trend in digital revenue [17] - The CTV streaming market is valued at $30 billion and is growing rapidly, presenting significant opportunities for local news and community storytelling [11] Company Strategy and Development Direction - The company is focused on building a world-class team culture, leveraging strengths across stations, deploying technology and AI, and growing digital revenue [8] - A major local news expansion was announced, adding dedicated streaming programming in over 50 markets, resulting in over 100 new hours of local news daily [9][10] - The company aims to achieve $90 million to $100 million in annualized core non-programming savings by the end of 2025, having already achieved 80% of this target [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position amidst regulatory changes that may benefit local broadcasters [6][7] - The outlook for Q3 anticipates a revenue decline of 18% to 20% year over year, attributed to the cyclical nature of the business and the absence of significant political advertising [25] - Management remains optimistic about the long-term growth opportunities in digital initiatives and local journalism [27] Other Important Information - The Chief Operating Officer, Lynn Beal, will be retiring at the end of the month after over 35 years in the industry, marking a significant transition for the company [12][13] - The company is committed to returning 40% to 60% of adjusted free cash flow to shareholders over the 2024-2025 period [23] Q&A Session Summary Question: Thoughts on NBC deal structure amidst scrutiny - Management values the network affiliate relationship and is focused on preserving the linear bundle while engaging constructively with network partners [33] Question: Urgency in M&A perspective - Management believes deregulation is necessary and sees significant profit pool opportunities in the broadcast industry, remaining disciplined in M&A approaches [34][35] Question: Areas of cost savings using technology - Examples include automating transcription and video editing, as well as improving workflows to allow journalists to focus on high-leverage activities [41][43] Question: Outlook for core advertising in Q3 - The advertising market may be softer due to economic uncertainty, with expectations for core advertising to decline in the low double to mid-teens range year over year [48] Question: M&A market perspective - Management sees opportunities for value creation through acquisitions, swaps, and sales, maintaining a strong balance sheet to capitalize on these opportunities [54] Question: Trends in reverse comp agreements - Programming fee agreements are showing favorable terms for both parties, with a flattening trend in programming fee expenses [57]

分组1 - McEwen (MUX) reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.09 per share, compared to a loss of $0.26 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $46.7 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 14.47%, and compared to year-ago revenues of $47.48 million [2] - McEwen shares have increased approximately 36.5% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.25 on $68.7 million in revenues, and $0.01 on $229.73 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Mining - Miscellaneous is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Wheaton Precious Metals Corp. (WPM), another company in the same industry, is expected to report quarterly earnings of $0.58 per share, reflecting a year-over-year change of +75.8% [9]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents McEwen Inc.'s unaudited consolidated financial statements for the periods ended June 30, 2025, and December 31, 2024, including statements of operations, balance sheets, changes in shareholders' equity, and cash flows, along with detailed notes explaining the company's operations, accounting policies, and specific financial line items [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) This section details the company's unaudited consolidated statements of operations and comprehensive income (loss), presenting key financial performance metrics for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (in thousands of U.S. dollars, except per share) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue from gold and silver sales | $46,700 | $47,476 | $82,396 | $88,704 | | Production costs applicable to sales | $(27,733) | $(32,066) | $(47,338) | $(57,176) | | Gross profit | $12,281 | $10,758 | $22,351 | $16,769 | | Operating loss | $(3,375) | $(13,947) | $(11,015) | $(35,929) | | Net income (loss) | $3,040 | $(12,995) | $(3,230) | $(33,378) | | Net income (loss) per share (Basic and diluted) | $0.06 | $(0.26) | $(0.06) | $(0.67) | | Weighted average common shares outstanding (Basic) | 53,968 | 49,718 | 53,623 | 49,580 | - Net income significantly improved in Q2/25 to **$3.0 million** (**$0.06 per share**) from a net loss of **$13.0 million** (**$0.26 per share**) in Q2/24, primarily due to lower expenditures at McEwen Copper Inc. and an unrealized gain on marketable securities[9](index=9&type=chunk)[114](index=114&type=chunk) - Gross profit increased by **14%** in Q2/25 to **$12.3 million**, driven by a **14%** decrease in production costs applicable to sales[9](index=9&type=chunk)[114](index=114&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This section presents McEwen Inc.'s unaudited consolidated balance sheets, detailing assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheets (Unaudited) (in thousands of U.S. dollars) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $53,554 | $13,692 | | Marketable securities | $15,967 | $1,617 | | Total current assets | $107,668 | $41,192 | | Total assets | $735,622 | $664,623 | | Total current liabilities | $45,851 | $47,693 | | Long-term debt, net of issuance costs | $125,772 | $40,000 | | Total liabilities | $251,143 | $169,648 | | Total shareholders' equity | $484,479 | $494,975 | - Cash and cash equivalents significantly increased to **$53.6 million** at **June 30, 2025**, from **$13.7 million** at **December 31, 2024**, primarily due to proceeds from Senior Convertible Notes[11](index=11&type=chunk)[142](index=142&type=chunk) - Long-term debt increased to **$125.8 million** at **June 30, 2025**, from **$40.0 million** at **December 31, 2024**, following the issuance of **$110.0 million** in Convertible Senior Unsecured Notes[11](index=11&type=chunk)[49](index=49&type=chunk)[54](index=54&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) This section outlines the unaudited consolidated statements of changes in shareholders' equity, reflecting movements in common stock, additional paid-in capital, and accumulated deficit for the six months ended June 30, 2025 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (in thousands of U.S. dollars and shares) | Metric | Balance, December 31, 2024 | Stock-based compensation | Investment in Goliath Resources Limited | Purchase of capped call options | Shares issued for debt refinancing | Net loss | Balance, June 30, 2025 | | :---------------------------------- | :------------------------- | :----------------------- | :-------------------------------- | :------------------------------ | :------------------------------- | :------- | :--------------------- | | Common Stock and Additional Paid-in Capital (Amount) | $1,804,702 | $1,380 | $6,068 | $(15,114) | $400 | — | $1,797,436 | | Accumulated Deficit | $(1,309,727) | — | — | — | — | $(3,230) | $(1,312,957) | | Total Shareholders' Equity | $494,975 | $1,380 | $6,068 | $(15,114) | $400 | $(3,230) | $484,479 | | Common Stock (Shares) | 53,054 | 123 | 868 | — | 53 | — | 54,098 | - Total shareholders' equity decreased from **$494.9 million** at **December 31, 2024**, to **$484.5 million** at **June 30, 2025**, primarily due to the purchase of capped call options (**$15.1 million**) and a net loss of **$3.2 million**, partially offset by stock-based compensation and investment in Goliath Resources[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides the unaudited consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Statements of Cash Flows (Unaudited) (in thousands of U.S. dollars) | Cash Flow Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(3,230) | $(33,378) | | Cash provided by (used in) operating activities | $(1,454) | $7,487 | | Cash used in investing activities | $(28,822) | $(11,124) | | Cash provided by financing activities | $70,250 | $20,038 | | Increase in cash, cash equivalents and restricted cash | $40,086 | $15,699 | | Cash, cash equivalents and restricted cash, end of period | $57,550 | $43,209 | - Cash provided by financing activities significantly increased to **$70.3 million** in **H1/25** (from **$20.0 million** in **H1/24**), primarily driven by **$110.0 million** in proceeds from Senior Convertible Notes, partially offset by financing costs and principal repayments[15](index=15&type=chunk)[141](index=141&type=chunk) - Cash used in investing activities increased to **$28.8 million** in **H1/25** (from **$11.1 million** in **H1/24**), mainly due to higher additions to mineral property interests and plant and equipment (**$24.2 million**) and advances to McEwen Copper (**$5.1 million**)[15](index=15&type=chunk)[140](index=140&type=chunk) [NOTE 1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%20NATURE%20OF%20OPERATIONS%20AND%20BASIS%20OF%20PRESENTATION) This note describes McEwen Inc.'s primary business activities, including gold and silver production, mineral property development, and its ownership structure in key projects and investees - McEwen Inc. (formerly McEwen Mining Inc.) is engaged in the production and sale of gold and silver, and the development/exploration of copper, gold, and silver mineral properties across North and South America[16](index=16&type=chunk) - The Company owns **100%** interests in the Gold Bar mine (Nevada, US), Fox Complex (Ontario, Canada), Fenix Project (Sinaloa, Mexico), and various exploration properties. It also holds **46.4%** in McEwen Copper Inc. (Los Azules copper project, Argentina) and **49.0%** in Minera Santa Cruz S.A. (San José silver-gold mine, Argentina), both accounted for using the equity method[17](index=17&type=chunk) [NOTE 2 OPERATING SEGMENT REPORTING](index=9&type=section&id=NOTE%202%20OPERATING%20SEGMENT%20REPORTING) This note provides a breakdown of the company's financial performance by operating segment, including geographic revenue and segment profit (loss), as reviewed by the chief operating decision maker - The Company's operating segments are reviewed by the executive leadership team (CODM) at the geographic region level, by major mine/project, or by investee, with performance assessed based on segment income/loss or attributable equity income/loss[21](index=21&type=chunk)[23](index=23&type=chunk) Segment Profit (Loss) (in thousands of U.S. dollars) | Segment | Three months ended June 30, 2025 | Six months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | USA | $9,419 | $19,699 | $7,276 | $11,736 | | Canada | $(4,354) | $(9,010) | $(1,648) | $(5,466) | | Mexico | $(2,575) | $(5,190) | $(2,974) | $(5,005) | | MSC | $3,596 | $4,106 | $4,701 | $5,979 | | McEwen Copper | $(6,978) | $(15,556) | $(16,816) | $(34,828) | | Total Segment Profit (Loss) | $(892) | $(5,951) | $(9,461) | $(27,584) | Geographic Revenue (in thousands of U.S. dollars) | Region | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | USA | $27,523 | $29,686 | $49,913 | $54,964 | | Canada | $19,177 | $17,790 | $32,483 | $32,540 | | Mexico | — | — | — | $1,200 | | Total Consolidated | $46,700 | $47,476 | $82,396 | $88,704 | [NOTE 3 OTHER INCOME](index=15&type=section&id=NOTE%203%20OTHER%20INCOME) This note details the components of other income, including unrealized and realized gains on investments and foreign currency fluctuations, for the periods presented Summary of Other Income (in thousands of U.S. dollars) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Unrealized and realized gain on investments | $4,715 | $461 | $6,450 | $259 | | Foreign currency gain (loss) | $2,221 | $(485) | $1,926 | $(394) | | Other income | $114 | $334 | $251 | $357 | | **Total other income** | **$7,050** | **$310** | **$8,627** | **$222** | - Total other income significantly increased to **$7.1 million** in **Q2/25** (from **$0.3 million** in **Q2/24**) and **$8.6 million** in **H1/25** (from **$0.2 million** in **H1/24**), primarily driven by substantial unrealized and realized gains on investments and foreign currency gains[30](index=30&type=chunk)[128](index=128&type=chunk)[136](index=136&type=chunk) [NOTE 4 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH](index=15&type=section&id=NOTE%204%20CASH%20AND%20CASH%20EQUIVALENTS%20AND%20RESTRICTED%20CASH) This note presents the breakdown of cash, cash equivalents, and restricted cash by currency, highlighting changes in liquidity over the reporting period Cash and Cash Equivalents and Restricted Cash (in thousands of U.S. dollars) | Currency | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Held in USD | $55,279 | $15,578 | | Held in CAD | $1,628 | $1,501 | | Held in other currencies | $643 | $385 | | **Total cash and cash equivalents and restricted cash** | **$57,550** | **$17,464** | - Total cash, cash equivalents, and restricted cash increased by **$40.1 million** to **$57.6 million** at **June 30, 2025**, from **$17.5 million** at **December 31, 2024**[31](index=31&type=chunk)[138](index=138&type=chunk) [NOTE 5 MARKETABLE SECURITIES](index=15&type=section&id=NOTE%205%20MARKETABLE%20SECURITIES) This note outlines the company's marketable securities, detailing changes in equity securities and warrants, including additions, disposals, and unrealized gains Marketable Securities Activity (in thousands of U.S. dollars) | Category | As at December 31, 2024 | Additions/transfers during period | Disposals/transfers during period | Unrealized gain on securities held | As at June 30, 2025 | | :---------------------------------- | :---------------------- | :-------------------------------- | :-------------------------------- | :--------------------------------- | :---------------- | | Equity securities | $1,206 | $7,463 | $(168) | $5,386 | $13,887 | | Warrants | $411 | $982 | $(380) | $1,067 | $2,080 | | **Total marketable securities** | **$1,617** | **$8,445** | **$(548)** | **$6,453** | **$15,967** | - The Company's marketable securities increased significantly to **$15.9 million** at **June 30, 2025**, from **$1.6 million** at **December 31, 2024**, driven by additions and a substantial unrealized gain of **$6.5 million**[32](index=32&type=chunk) - Key investments include acquiring a **4%** interest in Goliath Resources Limited and a **6%** interest in Canadian Gold Corp through share exchanges and private placements, and exercising warrants in Inventus Mining Corp[32](index=32&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) [NOTE 6 RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS](index=17&type=section&id=NOTE%206%20RECEIVABLES%2C%20PREPAIDS%20AND%20OTHER%20CURRENT%20ASSETS) This note provides a breakdown of receivables, prepaids, and other current assets, including government sales tax and other prepaid expenses Receivables, Prepaids and Other Current Assets (in thousands of U.S. dollars) | Category | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Government sales tax receivable | $2,677 | $3,918 | | Prepaids and other assets | $4,094 | $3,568 | | **Total receivables, prepaids and other current assets** | **$6,771** | **$7,486** | [NOTE 7 INVENTORIES](index=17&type=section&id=NOTE%207%20INVENTORIES) This note details the composition of inventories, including material on leach pads, in-process inventory, stockpiles, precious metals, and materials and supplies Inventories (in thousands of U.S. dollars) | Category | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Material on leach pads | $24,224 | $13,453 | | In-process inventory | $7,419 | $2,551 | | Stockpiles | $948 | $1,112 | | Precious metals | $1,207 | $2,312 | | Materials and supplies | $6,668 | $6,517 | | **Total inventories** | **$40,466** | **$25,945** | | Less: long-term portion | $16,332 | $7,834 | | **Current portion** | **$24,134** | **$18,111** | - Total inventories increased to **$40.5 million** at **June 30, 2025**, from **$25.9 million** at **December 31, 2024**, primarily driven by a significant increase in material on leach pads and in-process inventory[38](index=38&type=chunk) - The Company did not have any inventory write-downs during the six months ended June 30, 2025, compared to **$0.8 million** in write-downs in **H1/24**[38](index=38&type=chunk) [NOTE 8 MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT](index=17&type=section&id=NOTE%208%20MINERAL%20PROPERTY%20INTERESTS%20AND%20PLANT%20AND%20EQUIPMENT) This note describes the company's accounting policies for mineral property interests and plant and equipment, including impairment reviews and depreciation methods - The Company reviews long-lived assets for impairment quarterly; no indicators of impairment were noted for mineral property interests during the six months ended June 30, 2025[40](index=40&type=chunk)[41](index=41&type=chunk) - Depreciation and depletion for Gold Bar and San José properties are based on proven and probable reserves (Regulation S-K 1300), while the Fox Complex uses the units-of-production method over the estimated remaining life of the mine due to lack of S-K 1300 compliant reserves[39](index=39&type=chunk) [NOTE 9 EQUITY METHOD INVESTMENTS](index=19&type=section&id=NOTE%209%20EQUITY%20METHOD%20INVESTMENTS) This note provides detailed operating results for McEwen Copper Inc. and Minera Santa Cruz S.A., in which the company holds significant equity method investments McEwen Copper Inc. Operating Results (100% basis, in thousands of U.S. dollars) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Advanced projects | $(12,236) | $(37,547) | $(33,507) | $(85,730) | | Net loss | $(15,026) | $(35,231) | $(33,497) | $(72,968) | | Portion attributable to McEwen Inc. (Loss) | $(6,978) | $(16,816) | $(15,556) | $(34,828) | Minera Santa Cruz S.A. (MSC) Operating Results (100% basis, in thousands of U.S. dollars) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue from gold and silver sales | $94,886 | $74,348 | $166,789 | $140,274 | | Gross profit | $20,671 | $11,405 | $25,376 | $20,520 | | Net income | $8,385 | $10,450 | $10,575 | $14,115 | | Portion attributable to McEwen Inc. (Income) | $3,596 | $4,701 | $4,106 | $5,979 | - McEwen Copper's net loss attributable to McEwen Inc. decreased significantly to **$7.0 million** in **Q2/25** (from **$16.8 million** in **Q2/24**) and **$15.6 million** in **H1/25** (from **$34.8 million** in **H1/24**), primarily due to reduced advanced project expenditures[43](index=43&type=chunk)[126](index=126&type=chunk)[133](index=133&type=chunk) - MSC's revenue from gold and silver sales increased to **$94.9 million** in **Q2/25** (from **$74.3 million** in **Q2/24**), driven by higher realized metal prices, despite a decrease in attributable net income to **$3.6 million** in **Q2/25** (from **$4.7 million** in **Q2/24**)[46](index=46&type=chunk)[127](index=127&type=chunk)[134](index=134&type=chunk) [NOTE 10 DEBT](index=21&type=section&id=NOTE%2010%20DEBT) This note details the company's debt structure, including convertible senior unsecured notes and term loan facilities, and related financing activities Debt Structure (in thousands of U.S. dollars) | Debt Type | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Convertible senior unsecured notes due 2030 | $110,000 | — | | Term loan facility | $20,000 | $40,000 | | Debt issuance cost | $(4,228) | — | | **Long-term debt** | **$125,772** | **$40,000** | - The Company issued **$110.0 million** in **5.25%** convertible senior unsecured notes due **2030** in **February 2025**, with net proceeds of approximately **$90.7 million** after deducting offering costs and capped call transaction costs[54](index=54&type=chunk) - The **$40.0 million** term loan facility was refinanced in **January 2025**, extending principal repayments by **24 months**, and **$20.0 million** was voluntarily repaid in **February 2025**, reducing the outstanding balance to **$20.0 million**[50](index=50&type=chunk)[52](index=52&type=chunk) - In connection with the Convertible Notes, the Company purchased Capped Call Transactions for **$15.1 million** to reduce potential dilution, classified as a reduction to additional paid-in capital[63](index=63&type=chunk)[64](index=64&type=chunk) [NOTE 11 RECLAMATION AND REMEDIATION LIABILITIES](index=24&type=section&id=NOTE%2011%20RECLAMATION%20AND%20REMEDIATION%20LIABILITIES) This note outlines the company's reclamation and remediation liabilities across its properties, including changes in estimates and associated surety facilities Reclamation and Remediation Liabilities (in thousands of U.S. dollars) | Property | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Gold Bar, Tonkin and Lookout Mountain (Nevada) | $23,200 | $22,400 | | Fox Complex (Canada) | $18,200 | $16,700 | | El Gallo mine (Mexico) | $6,500 | $7,000 | | **Total reclamation and remediation liabilities** | **$47,929** | **$46,063** | | Less: current portion | $6,875 | $4,988 | | **Long-term portion** | **$41,054** | **$41,075** | - Total reclamation and remediation liabilities increased to **$47.9 million** at **June 30, 2025**, from **$46.1 million** at **December 31, 2024**, primarily due to accretion of liability and foreign exchange revaluation[66](index=66&type=chunk) - The Company has surety facilities totaling **$46.5 million** to cover bonding obligations in Nevada and Canada, with **$4.0 million** recorded as restricted cash[85](index=85&type=chunk)[86](index=86&type=chunk)[221](index=221&type=chunk) [NOTE 12 SHAREHOLDERS' EQUITY](index=25&type=section&id=NOTE%2012%20SHAREHOLDERS%27%20EQUITY) This note details changes in shareholders' equity, including common stock issuances, stock-based compensation, and the impact of investment activities - In June 2024, the Company issued **1,533,000** flow-through common shares for gross proceeds of **$21.8 million**, with **$14.4 million** allocated to common shares and **$6.0 million** to tax benefits[67](index=67&type=chunk) - As of **June 30, 2025**, the Company incurred **$14.4 million** in eligible CEE and CDE expenditures, with remaining commitments expected to be fulfilled by the end of **2025**[68](index=68&type=chunk) - In **March 2025**, the Company issued **868,056** common shares to acquire units of Goliath Resources Limited as part of a non-brokered private placement[69](index=69&type=chunk) [NOTE 13 NET INCOME (LOSS) PER SHARE](index=25&type=section&id=NOTE%2013%20NET%20INCOME%20%28LOSS%29%20PER%20SHARE) This note explains the calculation of basic and diluted net income (loss) per share, including the treatment of potentially dilutive instruments - Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average common shares outstanding, while diluted EPS uses the treasury stock method for options/warrants and the if-converted method for convertible notes[70](index=70&type=chunk) - For periods with a net loss, diluted EPS is computed the same as basic EPS because potentially dilutive instruments are anti-dilutive[71](index=71&type=chunk) - For **Q2/25**, diluted shares increased by **54,522** incremental shares, while for **H1/25** and **H1/24**, all outstanding stock options and warrants were anti-dilutive and excluded from diluted EPS calculations[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [NOTE 14 RELATED PARTY TRANSACTIONS](index=27&type=section&id=NOTE%2014%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with related parties, including expenses, receivables, and investments involving affiliates of company executives Related Party Expenses (in thousands of U.S. dollars) | Related Party | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | REVlaw | $101 | $52 | $162 | $88 | Related Party Receivables (in thousands of U.S. dollars) | Related Party | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Receivables from McEwen Copper Inc. | $7,242 | $286 | - The Company paid **$0.5 million** in **Q2/25** and **$1.1 million** in **H1/25** in interest to an affiliate of Robert R. McEwen (Chairman and CEO) for the term loan facility[76](index=76&type=chunk) - The Company participated in private placements of Canadian Gold Corp and exercised warrants in Inventus Mining Corp., both affiliates of company executives[78](index=78&type=chunk)[79](index=79&type=chunk) [NOTE 15 FAIR VALUE ACCOUNTING](index=29&type=section&id=NOTE%2015%20FAIR%20VALUE%20ACCOUNTING) This note describes the company's fair value measurements for financial instruments, categorizing them into Level 1, Level 2, and Level 3 inputs - Fair value measurements are categorized into **Level 1** (quoted prices in active markets for identical assets), **Level 2** (observable inputs other than Level 1 prices), and **Level 3** (unobservable inputs)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) Fair Value of Marketable Securities (in thousands of U.S. dollars) | Category | Level 1 (June 30, 2025) | Level 2 (June 30, 2025) | Level 3 (June 30, 2025) | Total (June 30, 2025) | | :---------------------------------- | :---------------------- | :---------------------- | :---------------------- | :-------------------- | | Marketable securities | $13,887 | $2,080 | — | $15,967 | | Category | Level 1 (December 31, 2024) | Level 2 (December 31, 2024) | Level 3 (December 31, 2024) | Total (December 31, 2024) | | :---------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :------------------------ | | Marketable securities | $1,206 | $411 | — | $1,617 | [NOTE 16 COMMITMENTS AND CONTINGENCIES](index=29&type=section&id=NOTE%2016%20COMMITMENTS%20AND%20CONTINGENCIES) This note details the company's commitments and contingencies, including surety bonds for environmental obligations, streaming agreements, and flow-through share expenditures - The Company has **$46.5 million** in surety bonds for environmental reclamation obligations in Nevada and Canada, with an average annual financing fee of **2.4%** and a **7.3%** deposit[85](index=85&type=chunk)[86](index=86&type=chunk)[221](index=221&type=chunk) - Under a streaming agreement, the Company is obligated to sell **8%** of gold production from Black Fox mine and **6.3%** from Pike River property at the lesser of market price or **$561 per ounce** (with inflation adjustments)[87](index=87&type=chunk) - The Company incurred **$14.4 million** in flow-through eligible expenditures by **June 30, 2025**, and expects to fulfill remaining obligations by year-end **2025**[89](index=89&type=chunk) - The Company extended its precious metals purchase agreement with Auramet International LLC, receiving **$13.5 million** in **Q2/25** and **$38.2 million** in **H1/25** from sales on a Supplier Advance Basis[90](index=90&type=chunk) [NOTE 17 INCOME AND MINING TAXES](index=32&type=section&id=NOTE%2017%20INCOME%20AND%20MINING%20TAXES) This note presents the company's income and mining tax recovery, detailing current and deferred tax components for the reporting periods Income and Mining Tax Recovery (in thousands of U.S. dollars) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Current income and mining tax expense | $1,793 | $459 | $3,631 | $992 | | Deferred income and mining tax recovery | $(2,904) | $(2,835) | $(5,821) | $(5,925) | | **Total income and mining tax recovery** | **$(1,111)** | **$(2,376)** | **$(2,190)** | **$(4,933)** | - The income and mining tax recovery for **Q2/25** was **$1.1 million** (compared to **$2.4 million** in **Q2/24**) and **$2.2 million** for **H1/25** (compared to **$4.9 million** in **H1/24**), primarily reflecting the amortization of the flow-through shares premium[94](index=94&type=chunk)[129](index=129&type=chunk)[137](index=137&type=chunk) [NOTE 18 SUBSEQUENT EVENT](index=32&type=section&id=NOTE%2018%20SUBSEQUENT%20EVENT) This note discloses a significant subsequent event regarding the company's binding letter of intent to acquire Canadian Gold Corp - On **July 27, 2025**, the Company entered into a binding letter of intent to acquire all outstanding securities of Canadian Gold Corp, with shareholders receiving **0.0225 shares** of McEwen Inc. common stock for each Canadian Gold share[96](index=96&type=chunk)[111](index=111&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on McEwen Inc.'s financial condition and operational performance for the three and six months ended June 30, 2025, compared to the prior year. It covers consolidated results, liquidity, and detailed reviews of each operating segment, including production, costs, and exploration activities, while also defining and reconciling non-GAAP financial measures [OVERVIEW](index=33&type=section&id=OVERVIEW) This section provides an overview of McEwen Inc.'s business, including its core activities in gold and silver production, mineral property development, and its use of non-GAAP financial measures for performance evaluation - McEwen Inc. (formerly McEwen Mining Inc.) is engaged in gold and silver production and sales, alongside copper, gold, and silver mineral property development and exploration across North and South America[105](index=105&type=chunk) - The Company owns **100%** of the Gold Bar mine, Fox Complex, Fenix Project, and exploration properties, and holds **46.4%** in McEwen Copper Inc. and **49.0%** in Minera Santa Cruz S.A., both accounted for using the equity method[106](index=106&type=chunk) - The discussion includes non-GAAP measures such as cash costs, AISC, Adjusted EBITDA, and average realized price per ounce, which are used by management to evaluate performance and generate cash flows[100](index=100&type=chunk) [Q2/25 OPERATING AND FINANCIAL HIGHLIGHTS](index=35&type=section&id=Q2%2F25%20OPERATING%20AND%20FINANCIAL%20HIGHLIGHTS) This section summarizes McEwen Inc.'s key operating and financial achievements for the second quarter of 2025, including production, revenue, net income, and exploration successes - Consolidated production for **Q2/25** was **27,554 GEOs**, a decrease from **35,265 GEOs** in **Q2/24**, but the Company remains on track for its **2025** production guidance of **120,000 to 140,000 GEOs**[111](index=111&type=chunk) - **Q2/25** revenues from **100%**-owned operations were **$46.7 million**, a slight decrease from **$47.5 million** in **Q2/24**, primarily due to a **29%** decrease in GEOs sold, offset by a **40%** increase in realized gold prices[117](index=117&type=chunk)[123](index=123&type=chunk) - Net income for **Q2/25** was **$3.0 million** (**$0.06 per share**), a significant improvement from a net loss of **$13.0 million** (**$0.26 per share**) in **Q2/24**, driven by lower McEwen Copper losses and an unrealized gain on marketable securities[117](index=117&type=chunk) - Exploration activities led to the discovery of new high-grade mineralization at Froome West (Fox Complex) and infill drilling at Gold Bar Mine and Timberline properties[117](index=117&type=chunk) [Selected Consolidated Financial and Operating Results](index=39&type=section&id=Selected%20Consolidated%20Financial%20and%20Operating%20Results) This section presents a summary of McEwen Inc.'s key consolidated financial and operating metrics for the three and six months ended June 30, 2025 and 2024 Selected Consolidated Financial Results (in thousands, except per share) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue from gold and silver sales | $46,700 | $47,476 | $82,396 | $88,704 | | Gross profit | $12,281 | $10,758 | $22,351 | $16,769 | | Adjusted EBITDA | $17,309 | $7,227 | $26,018 | $13,550 | | Net income (loss) | $3,040 | $(12,995) | $(3,230) | $(33,378) | | Net income (loss) per share | $0.06 | $(0.26) | $(0.06) | $(0.67) | | Cash from (used in) operating activities | $478 | $2,507 | $(1,454) | $7,487 | | Additions to mineral property interests and plant and equipment | $9,649 | $6,684 | $24,183 | $11,206 | Selected Consolidated Operating Results | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | GEOs produced (Total) | 27,554 | 35,265 | 51,685 | 68,320 | | GEOs sold (Total) | 28,039 | 35,182 | 51,854 | 69,589 | | Average realized price ($/GEO) | $3,298 | $2,355 | $3,062 | $2,246 | | Cash costs per ounce ($/GEO sold) (100% owned) | $1,906 | $1,554 | $1,715 | $1,414 | | AISC per ounce ($/GEO sold) (100% owned) | $2,120 | $1,728 | $2,210 | $1,592 | | Gold : Silver ratio | 99 : 1 | 81 : 1 | 94 : 1 | 85 : 1 | [Consolidated Operations Review](index=40&type=section&id=Consolidated%20Operations%20Review) This section provides a detailed review of McEwen Inc.'s consolidated operational performance, analyzing revenue, production costs, and net income drivers for the reporting periods - **Q2/25** revenue from **100%**-owned operations decreased by **2%** to **$46.7 million**, driven by a **29%** decrease in GEOs sold, partially offset by a **40%** increase in realized gold prices[123](index=123&type=chunk) - Production costs applicable to sales decreased by **14%** in **Q2/25** to **$27.7 million**, primarily due to lower GEOs produced and sold, despite higher per-unit costs[124](index=124&type=chunk) - The Company recorded a net income of **$3.0 million** in **Q2/25**, a significant improvement from a **$13.0 million** net loss in **Q2/24**, mainly due to reduced losses from McEwen Copper and a **$4.7 million** gain on marketable securities[9](index=9&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=42&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses McEwen Inc.'s liquidity position and capital resources, including changes in cash, operating and financing activities, and working capital - Cash, cash equivalents, and restricted cash increased by **$40.1 million** to **$57.6 million** during **H1/25**[138](index=138&type=chunk) - Cash used in operating activities was **$1.5 million** in **H1/25**, reflecting a net loss of **$3.2 million** adjusted for non-cash items[139](index=139&type=chunk) - Cash provided by financing activities was **$70.3 million** in **H1/25**, primarily from **$110.0 million** in Senior Convertible Notes proceeds, partially offset by debt repayments and capped call option purchases[141](index=141&type=chunk) - Working capital increased by **$68.3 million** to **$61.8 million** at **June 30, 2025**, from a negative **$6.5 million** at **December 31, 2024**, driven by increased cash, marketable securities, and reduced liabilities[142](index=142&type=chunk) [Operations Review](index=44&type=section&id=Operations%20Review) This section provides a detailed review of the operational and financial performance of McEwen Inc.'s individual mining segments and equity investments [United States Segment](index=44&type=section&id=United%20States%20Segment) This section details the operating and financial results of the Gold Bar Mine in the United States segment, including production, costs, and exploration activities Gold Bar Mine Operating and Financial Results (in thousands of U.S. dollars, except per ounce) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | GEOs Produced | 8,406 | 12,297 | 16,094 | 24,013 | | GEOs Sold | 8,350 | 12,510 | 16,285 | 24,700 | | Revenue from gold and silver sales | $27,523 | $29,686 | $49,913 | $54,964 | | Cash costs per ounce ($/GEO sold) | $1,679 | $1,532 | $1,419 | $1,313 | | AISC per ounce ($/GEO sold) | $1,792 | $1,634 | $1,986 | $1,404 | - Gold Bar Mine production decreased by **32%** to **8,406 GEOs** in **Q2/25** due to lower mined and stacked tonnes, as operations focused on the higher strip ratio Pick III deposit[146](index=146&type=chunk) - Cash costs and AISC per GEO sold increased in **Q2/25** to **$1,679** and **$1,792**, respectively, primarily due to the ongoing high-stripping phase at Pick III, with unit costs expected to decrease in **H2/25**[149](index=149&type=chunk) - Exploration activities at Gold Bar Mine focused on the Jug Handle target and at Timberline properties on infill drilling at Windfall and Lookout Mountain deposits[150](index=150&type=chunk)[151](index=151&type=chunk) [Canada Segment](index=46&type=section&id=Canada%20Segment) This section details the operating and financial results of the Fox Complex in the Canada segment, including production, costs, project advancements, and exploration activities Fox Complex Operating and Financial Results (in thousands of U.S. dollars, except per ounce) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | GEOs Produced | 5,429 | 8,297 | 10,948 | 15,782 | | GEOs Sold (including stream) | 6,199 | 8,071 | 11,311 | 15,671 | | Revenue from gold and silver sales | $19,177 | $17,790 | $32,483 | $32,540 | | Cash costs per ounce ($/GEO sold) | $2,212 | $1,588 | $2,142 | $1,572 | | AISC per ounce ($/GEO sold) | $2,563 | $1,874 | $2,534 | $1,886 | - Fox Complex production decreased by **35%** to **5,429 GEOs** in **Q2/25** due to mining in lower-grade zones at Froome, with higher production expected in **H2/25**[157](index=157&type=chunk) - Cash costs and AISC per GEO sold increased to **$2,212** and **$2,563**, respectively, in **Q2/25**, driven by a **23%** decrease in GEOs sold and higher fixed costs spread over fewer ounces[160](index=160&type=chunk) - The Company invested **$5.6 million** in **Q2/25** to advance the Stock project, completing the mine portal and initiating ramp access, targeting commercial production in **2026**[155](index=155&type=chunk) - Exploration at Froome West discovered new high-grade gold mineralization (**36.0 g/t gold over 10 meters**), expected to extend Froome's mine life, and diamond drilling continued at the Grey Fox property[161](index=161&type=chunk)[162](index=162&type=chunk) [Mexico Segment](index=47&type=section&id=Mexico%20Segment) This section provides an update on the Fenix Project in the Mexico segment, an advanced-stage gold heap leach reprocessing project awaiting key permits - The Fenix Project, an advanced-stage gold heap leach reprocessing project, is awaiting key permits for a construction decision and remains under review[164](index=164&type=chunk) [Minera Santa Cruz Segment, Argentina](index=49&type=section&id=Minera%20Santa%20Cruz%20Segment%2C%20Argentina) This section details the operating and financial results of the San José Mine in Argentina, including production, revenue, costs, and McEwen Inc.'s attributable share of income San José Mine Operating and Financial Results (100% basis, in thousands of U.S. dollars, except per ounce) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | GEOs Produced | 27,997 | 29,942 | 50,291 | 56,337 | | GEOs Sold | 27,530 | 29,699 | 49,507 | 59,501 | | Revenue from gold and silver sales | $94,885 | $74,348 | $166,788 | $140,275 | | Cash costs per ounce sold ($/GEO) | $2,310 | $1,624 | $2,428 | $1,615 | | AISC per ounce sold ($/GEO) | $2,842 | $2,032 | $2,933 | $1,978 | - San José Mine production decreased by **6%** to **27,997 GEOs** in **Q2/25** (**100%** basis) due to lower mill grades and reduced recovery rates, despite a **27%** increase in tonnes processed[168](index=168&type=chunk) - Revenue from gold and silver sales increased to **$94.9 million** in **Q2/25**, driven by **38%** higher realized gold prices and **13%** higher silver prices, offsetting the decrease in GEOs sold[169](index=169&type=chunk) - Cash costs and AISC per GEO sold increased to **$2,310** and **$2,842**, respectively, in **Q2/25**, reflecting increased operating costs due to inflation and higher contractor reliance, combined with lower ounces sold[170](index=170&type=chunk)[171](index=171&type=chunk) - McEwen Inc.'s **49%** attributable share of MSC operations resulted in an income of **$3.6 million** in **Q2/25**, and the Company received **$2.2 million** in dividends from MSC during **H1/25**[172](index=172&type=chunk)[173](index=173&type=chunk) [McEwen Copper Inc.](index=50&type=section&id=McEwen%20Copper%20Inc.) This section provides an update on McEwen Copper Inc. and its Los Azules copper project in Argentina, including feasibility study progress and investment initiatives - McEwen Copper, **46.4%** owned by the Company, is advancing the Los Azules copper project in Argentina, with a definitive feasibility study expected in **Q3/25**[174](index=174&type=chunk)[176](index=176&type=chunk) - During **H1/25**, McEwen Copper invested **$33.5 million** to complete final drilling activities for the Los Azules feasibility study, refining geotechnical characterization and the mine plan[111](index=111&type=chunk)[117](index=117&type=chunk) - McEwen Copper submitted an optimized application for Argentina's Regime of Incentive for Investments (RIGI) for the Los Azules Project, proposing a **$2.7 billion** investment to potentially gain tax and regulatory benefits[182](index=182&type=chunk) [Non-GAAP Financial Performance Measures](index=52&type=section&id=Non-GAAP%20Financial%20Performance%20Measures) This section defines and reconciles non-GAAP financial measures used by management, such as cash costs, AISC, and Adjusted EBITDA, to evaluate operational performance - Non-GAAP measures like cash costs, AISC, Adjusted EBITDA, and average realized price per ounce are used to evaluate operational efficiencies and cash flow generation, but do not have standardized definitions and should not be used in isolation[184](index=184&type=chunk)[186](index=186&type=chunk) Reconciliation of Cash Costs and All-In Sustaining Costs (100% owned operations, in thousands, except per ounce) | Metric | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :---------------------------------- | :------------------------------- | :------------------------------- | | Production costs applicable to sales - cash costs | $27,733 | $47,338 | | All-in sustaining costs | $30,851 | $60,994 | | Ounces sold, including stream (GEO) | 14,549 | 27,596 | | Cash cost per ounce sold ($/GEO) | $1,906 | $1,715 | | AISC per ounce sold ($/GEO) | $2,120 | $2,210 | Reconciliation of Adjusted EBITDA (in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Income (loss) before income and mining taxes | $1,929 | $(15,371) | $(5,420) | $(38,311) | | Adjusted EBITDA | $17,309 | $7,227 | $26,018 | $13,550 | | Adjusted EBITDA per share | $0.32 | $0.15 | $0.49 | $0.27 | [Critical Accounting Policies](index=55&type=section&id=Critical%20Accounting%20Policies) This section confirms that there were no significant changes to the company's critical accounting policies or estimates since the last fiscal year-end - There were no significant changes in the Company's critical accounting policies or estimates since **December 31, 2024**[199](index=199&type=chunk) [Forward-looking Statements](index=55&type=section&id=Forward-looking%20Statements) This section highlights the forward-looking nature of certain statements in the report, outlining the inherent uncertainties and assumptions underlying future projections - The report contains forward-looking statements regarding anticipated exploration results, production estimates, permits, strategic alternatives, and financial outcomes, which are subject to significant business, economic, and competitive uncertainties[200](index=200&type=chunk)[202](index=202&type=chunk) - Production guidance is based on various factors and assumptions, including gold/silver price forecasts, average grades, tonnes moved, recovery rates, and labor availability, which are frequently evaluated and reconciled[203](index=203&type=chunk)[205](index=205&type=chunk) [Risk Factors Impacting Forward-looking Statements](index=58&type=section&id=Risk%20Factors%20Impact%20Forward-looking%20Statements) This section identifies key risk factors that could materially impact the company's forward-looking statements, including financial, operational, and geopolitical risks - Key risk factors include the ability to raise funds, success of acquisitions, securing permits, maintaining NYSE listing, geopolitical events, fluctuations in commodity prices and exchange rates, and operational challenges[206](index=206&type=chunk)[207](index=207&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section outlines McEwen Inc.'s exposure to various market risks, including foreign currency, equity price, commodity price, credit, and interest rate risks, and explains how these factors could impact the company's financial condition and results of operations [Foreign Currency Risk](index=59&type=section&id=Foreign%20Currency%20Risk) This section details the company's exposure to foreign currency fluctuations, particularly with the Mexican peso, Canadian dollar, and Argentine peso, and their impact on financial results - The Company is exposed to foreign currency risks from the Mexican peso and Canadian dollar directly, and indirectly from the Argentine peso through its investments in MSC and McEwen Copper[210](index=210&type=chunk) - In **Q2/25**, the Canadian dollar and Mexican peso appreciated by **5.1%** and **8.5%**, respectively, while the Argentine peso depreciated by **10.1%** against the U.S. dollar[211](index=211&type=chunk) [Equity Price Risk](index=59&type=section&id=Equity%20Price%20Risk) This section describes the company's exposure to equity price risk from its investments in other mining entities and the measures taken to mitigate potential dilution - The Company is exposed to equity price risk from its investments in other mining sector entities, which can be volatile and lack liquidity[214](index=214&type=chunk) - Based on **$15.9 million** in marketable securities at **June 30, 2025**, a **1%** change in fair value would result in an approximate **$0.2 million** gain or loss[214](index=214&type=chunk) - The issuance of Convertible Senior Notes and associated Capped Call Transactions in **February 2025** are intended to offset potential dilution from equity price movements[216](index=216&type=chunk) [Commodity Price Risk](index=60&type=section&id=Commodity%20Price%20Risk) This section explains the company's exposure to fluctuations in gold and silver market prices and their significant impact on revenues and cash flows - Changes in gold and silver market prices significantly affect the Company's operations and cash flows; a **10%** change in prices would impact **Q2/25** revenues by approximately **$4.7 million**[217](index=217&type=chunk) - The Company does not hedge its sales, making it fully exposed to commodity price fluctuations[219](index=219&type=chunk) [Credit Risk](index=60&type=section&id=Credit%20Risk) This section addresses the company's credit risk exposure from precious metals sales agreements and surety bonds for reclamation obligations - The Company is exposed to credit loss from precious metals sales agreements with financial institutions and refineries, though no significant credit exposure is anticipated[220](index=220&type=chunk) - Surety bonds totaling **$46.5 million** are in place for reclamation costs, exposing the Company to the risk of surety default or non-acceptance by governmental agencies[221](index=221&type=chunk) [Interest Rate Risk](index=60&type=section&id=Interest%20Rate%20Risk) This section assesses the company's interest rate risk, noting its insignificance due to fixed coupons on convertible notes and term loan facilities - The Company's interest rate risk exposure is considered insignificant due to fixed coupons on its **$110.0 million** convertible notes and **$20.0 million** term loan facility[222](index=222&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses McEwen Inc.'s internal controls over financial reporting and disclosure controls. It details ongoing remediation efforts for a previously identified material weakness in income taxes and concludes that, due to this weakness, disclosure controls were not effective as of June 30, 2025, though management believes the financial statements are fairly presented [Overview](index=61&type=section&id=Overview) This section provides an overview of the company's efforts to remediate a material weakness in internal control over financial reporting related to income taxes - The Company is remediating a material weakness in internal control over financial reporting related to income taxes, which should enable certifying officers to confirm the effectiveness of disclosure controls[224](index=224&type=chunk) - Remediation efforts include redesigning internal controls around income taxes, adding human resources, and engaging third-party assistance[224](index=224&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=61&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section concludes that, due to a material weakness in internal control over financial reporting, the company's disclosure controls and procedures were not effective as of June 30, 2025 - Due to the material weakness in internal control over financial reporting, the Company's disclosure controls and procedures were not effective as of **June 30, 2025**[225](index=225&type=chunk) - Despite the control weakness, management believes the unaudited consolidated financial statements fairly present the Company's financial position, results of operations, and cash flows in accordance with U.S. GAAP[226](index=226&type=chunk) [Changes in Internal Control Over Financial Reporting](index=61&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section confirms that, apart from remediation efforts for the material weakness, there were no other material changes in the company's internal control over financial reporting during the quarter - Other than the described remediation efforts for the material weakness, there were no material changes in the Company's internal control over financial reporting during **Q2/25**[227](index=227&type=chunk) [Limitations on Controls and Procedures](index=61&type=section&id=Limitations%20on%20Controls%20and%20Procedures) This section acknowledges the inherent limitations of all control systems, emphasizing that they provide only reasonable assurance and can be subject to deterioration - All control systems have inherent limitations, providing only reasonable assurance, and their effectiveness can deteriorate due to changing conditions or compliance levels[228](index=228&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) McEwen Inc. reported no legal proceedings during the quarter ended June 30, 2025 - There were no legal proceedings to report for the quarter ended **June 30, 2025**[230](index=230&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) The Company stated that there were no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes were reported from the risk factors set forth in the Annual Report on Form 10-K for the fiscal year ended **December 31, 2024**[231](index=231&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) All unregistered sales of equity securities by McEwen Inc. or its subsidiaries during the quarter ended June 30, 2025, were previously reported in filings with the SEC - All unregistered sales of equity securities during the quarter ended **June 30, 2025**, were previously reported to the SEC[232](index=232&type=chunk) [Item 3. Defaults upon Senior Securities](index=62&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) McEwen Inc. reported no defaults upon senior securities during the quarter ended June 30, 2025 - There were no defaults upon senior securities to report for the quarter ended **June 30, 2025**[233](index=233&type=chunk) [Item 4. Mine Safety Disclosures](index=62&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) McEwen Inc. emphasizes safety as a core value, operating under a comprehensive health and safety management system. The Gold Bar mine is subject to MSHA regulation, and the Company is required to report certain mine safety violations, with relevant information included in Exhibit 95 - Safety is a core value at McEwen Inc., with a health and safety management system in place to ensure a safe environment and comply with mining regulations[234](index=234&type=chunk) - The Gold Bar mine is regulated by the Federal Mine Safety and Health Administration (MSHA), which conducts regular inspections and may issue citations[235](index=235&type=chunk) - The Company is required to report certain mine safety violations under Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K, with details in Exhibit 95[236](index=236&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, McEwen Inc. had no undisclosed Form 8-K information, no material changes to director nominee recommendation procedures, and no adoption, modification, or termination of Rule 10b5-1 trading arrangements by directors or executive officers - No information required to be disclosed in a Form 8-K was undisclosed during **Q2/25**[240](index=240&type=chunk) - There were no material changes to procedures for stockholders to recommend board nominees during **Q2/25**[240](index=240&type=chunk) - No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during **Q2/25**[240](index=240&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or incorporated by reference with the Form 10-Q report, including agreements, articles of incorporation, bylaws, certifications, and mine safety disclosures - The exhibits include various agreements (e.g., Agreement and Plan of Merger, Loan Agreement), corporate governance documents (e.g., Articles of Incorporation, Bylaws), and certifications (e.g., Sarbanes-Oxley Act certifications)[241](index=241&type=chunk) - Mine safety disclosures and Inline XBRL Taxonomy Extension documents are also included as exhibits[241](index=241&type=chunk) [SIGNATURES](index=65&type=section&id=SIGNATURES) The report is duly signed on behalf of McEwen Inc. by Robert R. McEwen, Chairman and Chief Executive Officer, and Perry Ing, Interim Chief Financial Officer, as of August 6, 2025 - The report is signed by Robert R. McEwen, Chairman and Chief Executive Officer, and Perry Ing, Interim Chief Financial Officer, on **August 6, 2025**[245](index=245&type=chunk)

Core Points - McEwen Inc. will hold a conference call on August 7, 2025, at 11:00 AM EDT to discuss Q2 2025 financial results and project developments [1][2] - The company operates three mines in the USA, Canada, and Argentina, and has a significant copper development project in Argentina [3] - Rob McEwen, the Chairman and Chief Owner, has personally invested US$205 million in the company and aims to build shareholder value and establish a dividend [4] Company Overview - McEwen Inc. provides exposure to gold, copper, and silver through its operating mines and development projects [3] - The Los Azules copper project is designed to be one of the world's first regenerative copper mines, with a goal of achieving carbon neutrality by 2038 [3] Conference Call Details - Participants can join the conference call via toll-free North America number (888) 210-3454 or international dial-in [2] - An archived replay of the webcast will be available approximately two hours after the live event [2]

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. McEwen currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period. Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," ...