McEwen Mining(MUX)2025-05-07 21:02Production and Sales Performance - Q1/25 consolidated production totaled 24,132 GEOs, a decrease from 33,037 GEOs in Q1/24, with annual production guidance set at 120,000 to 140,000 GEOs [106]. - Q1/25 revenues were $35.7 million from the sale of 13,036 GEOs, compared to $41.2 million from 19,804 GEOs in Q1/24, reflecting a decrease in sales volume [109]. - Revenue from gold and silver sales decreased by 13% to $35.7 million in Q1/25, down from $41.2 million in Q1/24, primarily due to a 34% decrease in GEOs sold [118]. - Total ounces sold, including stream, decreased to 13,036 in Q1 2025 from 19,804 in Q1 2024, a decline of 34.5% [180]. Financial Performance - Gross profit for Q1/25 was $10.1 million, up from $6.0 million in Q1/24, driven by a 31% increase in average realized gold prices [109]. - Net loss for Q1/25 was $6.3 million, or $0.12 per share, an improvement from a net loss of $20.4 million, or $0.41 per share, in Q1/24 [109]. - Adjusted EBITDA for Q1/25 was $8.7 million, or $0.16 per share, compared to $6.3 million, or $0.13 per share, in Q1/24 [109]. - Revenue from gold sales was $13.3 million in Q1/25, down from $14.7 million in Q1/24, driven by a 33% reduction in GEOs sold, partially offset by a 35% increase in average realized gold price [144]. - Revenue from gold and silver sales for Q1 2025 was $35,696,000, down from $41,228,000 in Q1 2024, a decrease of 13.0% [180]. Cost and Expenses - Cash costs and AISC per GEO sold at the Fox Complex were $2,061 and $2,504, respectively, exceeding annual guidance ranges due to lower GEOs sold [110]. - Production costs applicable to sales decreased by 22% to $19.6 million in Q1/25, down from $25.1 million in Q1/24, driven by lower GEOs produced and sold [119]. - Cash costs per GEO sold for 100% owned operations increased to $1,504 in Q1/25 from $1,268 in Q1/24, while AISC per GEO sold rose to $2,318 from $1,481 [117]. - Production costs applicable to sales for Gold Bar and Fox Complex totaled $19,605,000 for Q1 2025, a decrease of 22.1% from $25,110,000 in Q1 2024 [175]. - All-in sustaining costs (AISC) per ounce sold for Gold Bar and Fox Complex was $2,318 in Q1 2025, compared to $1,481 in Q1 2024, reflecting a 56.5% increase [175]. Production Details by Mine - At the Gold Bar Mine, Q1/25 production was 7,688 GEOs, with expectations for increased production as pre-stripping activities conclude [108]. - San José Mine production in Q1/25 was 10,924 GEOs, a 16% decrease from Q1/24, with plans to increase throughput starting April 2025 [108]. - The Gold Bar Mine produced 7,688 GEOs in Q1/25, a 34% decrease from 11,716 GEOs in Q1/24, attributed to lower mined and stacked tonnes [135]. - The Fox Complex produced 5,520 GEOs in Q1/25, a 26% decrease from 7,486 GEOs in Q1/24 [143]. - The San José mine produced 22,294 GEOs in Q1/25, down from 26,396 GEOs in Q1/24, primarily due to an 8% reduction in gold head grades processed [152]. Investments and Future Projects - The Company invested $3.9 million in Q1/25 for Stock portal access development at the Fox Complex, aiming to begin mining by 2026 [108]. - McEwen Copper completed final drilling activities for the Los Azules feasibility study during Q1/25, advancing the project towards feasibility [108]. - McEwen Copper invested over $400 million in exploration expenditures for the Los Azules copper project, which is advancing towards a definitive feasibility study expected in summer 2025 [158][160]. - The Los Azules project applied for admission to the Large Investment Incentive Regime, which could provide significant fiscal and regulatory benefits if approved [166]. Cash and Liquidity - Cash and cash equivalents increased to $68.5 million as of March 31, 2025, from $13.7 million at December 31, 2024, reflecting a significant liquidity improvement [115]. - Working capital increased to $61.1 million as of March 31, 2025, from negative $6.5 million at December 31, 2024, driven by a $54.8 million increase in cash and cash equivalents [130]. - Cash used in investing activities totaled $13.6 million in Q1/25, primarily for additions to mineral property interests and plant and equipment [128]. Risks and Market Conditions - The company does not hedge any of its sales, exposing it to all changes in commodity prices [202]. - The outstanding debt includes $110.0 million in convertible notes due 2030 and a $20.0 million term loan facility, with fixed coupons indicating insignificant interest rate risk exposure [205]. - There is a risk that the company may not be able to sell equity securities at an acceptable price to meet future funding requirements due to past volatility in investment prices [198]. - The company has not utilized material market risk-sensitive instruments for managing exposure to Canadian dollar and Mexican peso exchange rates but may consider it in the future [196].