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]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: McEwen Mining (MUX) - McEwen Mining currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Performance Metrics - Over the past week, MUX shares increased by 3.74%, outperforming the Zacks Mining - Miscellaneous industry, which rose by 1.38% [6] - In a longer timeframe, MUX's monthly price change is 12.8%, compared to the industry's 8.76% [6] - Over the past quarter, MUX shares have surged by 43.77%, and gained 19.78% over the last year, while the S&P 500 increased by 15.97% and 18.37%, respectively [7] Trading Volume - MUX's average 20-day trading volume is 845,889 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, one earnings estimate for MUX has increased, while none have decreased, raising the consensus estimate from -$0.28 to -$0.02 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Considering the strong performance metrics and positive earnings outlook, MUX is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12]

Group 1 - Metalla Royalty & Streaming Ltd. (MTA) is currently outperforming its peers in the Basic Materials group, with a year-to-date return of approximately 67.7% compared to the sector average of 12.7% [4] - The Zacks Rank for MTA is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with full-year earnings estimates having increased by 75% in the past quarter [3][4] - The Basic Materials group is ranked 13 within the Zacks Sector Rank, which includes 16 different groups [2] Group 2 - MTA is part of the Mining - Miscellaneous industry, which consists of 64 companies and currently holds a Zacks Industry Rank of 165, with an average gain of 16.2% this year [6] - Another stock in the Basic Materials sector, McEwen (MUX), has also shown strong performance with a year-to-date return of 39.3% and a Zacks Rank of 2 (Buy) [5][6] - Investors interested in Basic Materials stocks should monitor both Metalla Royalty & Streaming Ltd. and McEwen for continued solid performance [7]

Core Viewpoint - McEwen Inc. has entered into a binding letter of intent to acquire Canadian Gold Corp., which will make Canadian Gold a wholly-owned subsidiary of McEwen if the transaction is completed [1][3]. Summary by Sections Proposed Transaction - The proposed transaction involves McEwen acquiring all issued and outstanding securities of Canadian Gold at an exchange ratio of 0.0225 McEwen shares for each Canadian Gold share, equating to an offer price of CDN $0.35 per Canadian Gold share, representing a 26% premium to the 30-day volume weighted average price as of July 25, 2025 [3][11]. Assets and Operations - Canadian Gold's primary asset is the Tartan Mine, a high-grade former producing mine in Manitoba, which has significant existing infrastructure and high exploration potential. The mine produced 47,000 ounces of gold between 1987 and 1989 and has a current indicated mineral resource estimate of 240,000 ounces of gold [2][22][17]. Benefits for Shareholders - For Canadian Gold shareholders, the transaction offers an attractive premium and enhanced liquidity through McEwen's dual stock exchange listings. Existing Canadian Gold shareholders will own approximately 8.2% of the combined company post-transaction [3][8]. - For McEwen shareholders, the acquisition provides access to Canadian Gold's high-grade assets, the ability to fund development with existing resources, and the potential to restart operations at the Tartan Mine within 24 to 36 months [8][9]. Regulatory and Approval Process - The transaction requires approval from 66 ⅔% of Canadian Gold shareholders and a simple majority from minority shareholders, with a special meeting expected by the end of 2025. The arrangement agreement will include customary deal protection provisions and allow Canadian Gold to consider superior proposals [13][11][12]. Company Background - McEwen Inc. operates multiple mines across the Americas and is focused on gold, copper, and silver. The company aims to build share value and establish dividends, similar to its founder's previous success with Goldcorp [18][19].

Group 1 - McEwen Mining (MUX) shares have increased by 18.3% over the past four weeks, closing at $11.5, with a mean price target of $14.99 indicating a potential upside of 30.4% [1] - The average price targets range from a low of $13.75 to a high of $15.70, with a standard deviation of $0.88, suggesting a relatively high agreement among analysts [2] - Analysts are optimistic about MUX's earnings prospects, as indicated by a significant increase in earnings estimate revisions, which correlates with potential stock price movements [4][11] Group 2 - Over the last 30 days, the Zacks Consensus Estimate for MUX's current year earnings has increased by 94.6%, with no negative revisions [12] - MUX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, it requires strong fundamentals to maintain that momentum. Group 1: Stock Price Movement - The direction of a stock's price can reverse quickly, leading to potential short-term capital losses for investors [2] - A predefined "Recent Price Strength" screen can help identify stocks that are on an uptrend, supported by strong fundamentals and trading near their 52-week high [3] Group 2: McEwen Mining (MUX) Analysis - McEwen Mining (MUX) has shown a solid price increase of 52.9% over the past 12 weeks, indicating investor confidence in its potential upside [4] - MUX has also experienced an 18.3% price increase over the last four weeks, suggesting that the upward trend is still intact [5] - Currently, MUX is trading at 94.5% of its 52-week high-low range, indicating a potential breakout [5] Group 3: Fundamental Strength - MUX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7] - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988 [7] Group 4: Investment Strategy - The article suggests that MUX may continue its price trend, and encourages investors to explore other stocks that meet the "Recent Price Strength" criteria [8] - It highlights the importance of backtesting stock-picking strategies to ensure past profitability, which can be facilitated by tools like the Zacks Research Wizard [9]

Core Insights - McEwen Inc. has announced the discovery of high-grade mineralization approximately 200 meters west of the Froome Mine, which is expected to extend mining operations at the Froome site [1][15][16] Exploration and Drilling Results - The Froome West mineralization consists of several sub-vertical, stacked mineralized lenses, with a high-grade trend approximately 15 to 25 meters wide, remaining open to the west and at depth [3][4][16] - Significant drill results include Hole 25PR-G424, which returned 36.0 g/t gold over 10.0 meters, including 160.0 g/t gold over 2.2 meters [8][10] - The exploration program will continue to drill deeper and laterally to evaluate broader regional mineralization trends [4][9] Mining Infrastructure - Development of mining infrastructure on four levels is already underway at Froome West, extending from the existing Froome Mine operations [9][11] - Future mining activities will utilize the existing infrastructure from the Froome Mine, enhancing operational efficiency [5][9] Historical Context - The Froome West mineralization is similar to the Black Fox deposit, which has historically produced approximately 1.1 million gold ounces [4][16] - The nearby Black Fox Mine has a history of mining extending down to 800 meters below surface, indicating the potential for significant mineralization at Froome West [16] Future Outlook - The discovery at Froome West is expected to provide more options in the mine plan for the Fox Complex, with the Stock Mine anticipated to enter commercial production in 2026 [15][16] - The current mineralization model extends to a depth of 250 meters and remains open, suggesting potential for further discoveries [16]