McEwen Mining(MUX) - 2025 Q3 - Quarterly Report

Production and Sales Performance - Q3/25 consolidated production totaled 29,662 GEOs, a decrease of 15.5% from 35,180 GEOs in Q3/24[106] - At the Gold Bar Mine Complex, Q3/25 production was 8,191 GEOs, a 40% decrease from 13,640 GEOs in Q3/24[112] - The Fox Complex produced 6,386 GEOs in Q3/25, a 19% decrease from 7,855 GEOs in Q3/24, as mining continues in lower-grade zones[155] - San José mine produced 30,583 GEOs in Q3/25, a 10% increase from 27,927 GEOs in Q3/24, but a decrease in 9M/25 to 80,874 GEOs from 84,264 GEOs in 9M/24[168] Revenue and Financial Performance - Q3/25 revenues were $50.5 million from the sale of 14,968 GEOs at an average realized price of $3,477 per GEO, compared to $52.3 million from 21,350 GEOs at $2,499 per GEO in Q3/24[112] - Revenue from gold and silver sales decreased by 3% to $50.5 million in Q3/25, down from $52.3 million in Q3/24, primarily due to a 30% decrease in GEOs sold, despite a 39% increase in realized gold prices to $3,477 per GEO[120] - Revenue from gold and silver sales for the nine months ended September 30, 2025, decreased by 6% to $132.9 million, down from $141.0 million in the same period of 2024[128] - Revenue from gold and silver sales at the Gold Bar Mine was $29.4 million in Q3/25, down from $33.3 million in Q3/24, reflecting a 36% decrease in GEOs sold[146] - Revenue from gold sales at the Fox Complex was $20.8 million for Q3/25, compared to $19.0 million for Q3/24, driven by a 40% increase in the average realized gold price[157] - Revenue from gold and silver sales was $91.7 million in Q3/25, up from $70.4 million in Q3/24, driven by 44% and 40% higher realized gold and silver prices[169] Costs and Expenses - Cash costs and AISC per GEO sold in Q3/25 for the Fox Complex were $2,132 and $2,352, respectively, while for the Gold Bar Mine Complex they were $2,540 and $2,852[112] - Production costs applicable to sales increased by 19% to $35.2 million in Q3/25, compared to $29.7 million in Q3/24, driven by higher operational stripping costs at the Gold Bar Mine Complex[121] - Cash costs per GEO sold at the Gold Bar Mine increased to $2,540 in Q3/25 from $1,281 in Q3/24, while AISC per GEO sold rose to $2,852 from $1,822[148] - Cash costs per GEO sold at the Fox Complex were $2,132 in Q3/25, up from $1,572 in Q3/24, primarily due to a 21% decrease in GEOs sold[159] - Cash costs in Q3/25 were $50.1 million, down from $58.0 million in Q3/24, despite a 25% increase in production costs due to inflation and higher cost ore[170] - Cash costs per ounce sold for the three months ended September 30, 2025, was $2,366, compared to $1,390 for the same period in 2024, reflecting a significant increase of 70.0%[191] Profitability and Loss - The net loss for Q3/25 was $0.5 million, or $0.01 per share, an improvement from a net loss of $2.1 million, or $0.04 per share in Q3/24[112] - The company recorded a net loss of $462,000 in Q3/25, an improvement from a net loss of $2.1 million in Q3/24[120] - Adjusted EBITDA for Q3/25 was $11.8 million, or $0.22 per share, compared to $10.5 million, or $0.20 per share in Q3/24[112] - Adjusted EBITDA for Q3/25 was $11.8 million, an increase from $10.5 million in Q3/24, with adjusted EBITDA per share rising to $0.22 from $0.20[120] - Adjusted EBITDA for the three months ended September 30, 2025, was $11,815 thousand, compared to $10,489 thousand in 2024, marking an increase of 12.7%[193] Guidance and Future Projections - The Company revised its 2025 GEO production guidance to 112,000 to 123,000 GEOs, down from 120,000 to 140,000 GEOs[106] - The Company has tightened its annual production guidance for the Gold Bar Mine Complex to 32,000 to 35,000 GEOs, down from 40,000 to 45,000 GEOs[112] - The Company has revised its 2025 annual production guidance for the Froome deposit to 25,000 to 28,000 GEOs, down from 30,000 to 35,000 GEOs[155] - The Fenix Project is expected to produce approximately 20,000 GEOs annually once commercial production is achieved, anticipated to start mid-2027[163] Investments and Acquisitions - The Company signed agreements to acquire a 31% equity interest in Paragon Geochemical Laboratories for a total investment of $10.9 million[108] - The company invested $5.7 million in the Stock project during Q3/25, with plans for commercial production to commence in 2026[154] - McEwen Copper's Feasibility Study for the Los Azules project indicates an after-tax NPV8% of $2.9 billion and an internal rate of return of 19.8% based on a copper price of $4.25 per pound[108] - Proven and probable reserves at Los Azules total 10.2 billion pounds of copper, based on a copper price of $4.25 per pound[177] Cash and Liquidity - Cash from operating activities was $5.2 million in Q3/25, a significant decrease from $23.2 million in Q3/24[136] - Cash and cash equivalents increased to $51.2 million as of September 30, 2025, up from $13.7 million at the end of 2024[116] - Working capital improved to $62.6 million as of September 30, 2025, a $69.1 million increase from negative $6.5 million at the end of 2024[140] - As of September 30, 2025, the company held cash balances of $1.7 million (CAD 2.5 million) in Canadian dollars and $0.3 million (MXN 6.2 million) in Mexican pesos, with a 1.0% change in these currencies resulting in immaterial gains or losses[212] Currency and Debt Management - The company’s outstanding debt includes $110.0 million in convertible notes due 2030 and a $20.0 million term loan facility, with fixed coupons mitigating interest rate risk[221] - The Mexican peso appreciated by 2.4% against the U.S. dollar during the three months ended September 30, 2025, while the Canadian dollar and Argentine peso depreciated by 1.9% and 13.5%, respectively[210] Risk Management - The company does not hedge any of its sales, exposing it to all changes in commodity prices[218] - The company does not anticipate significant credit exposure associated with precious metals and doré sales agreements as of September 30, 2025[219] - The company has surety bonds of $47.5 million in place to cover projected reclamation costs, with an annual fee of 2.4% of their value[220] - The company has a 49.0% interest in MSC and a 46.4% ownership in McEwen Copper as of September 30, 2025, which introduces additional risks due to lack of decision-making power over day-to-day activities[208]