McEwen Mining(MUX) - 2025 Q3 - Quarterly Results

Production and Guidance - McEwen Inc. reported Q3 2025 production of 8,191 GEOs from the Gold Bar Mine, leading to a revised annual production guidance of 32,000 to 35,000 GEOs, down from 40,000 to 45,000 GEOs[7] - The Fox Complex produced 6,386 GEOs, with annual production guidance lowered to 25,000 to 28,000 GEOs from 30,000 to 35,000 GEOs[8] - Consolidated production for Q3 2025 was 29,662 GEOs, down from 35,180 GEOs in Q3 2024, with revised full-year guidance set at 112,000–123,000 GEOs[37] - Attributable production in Q3 was 14,986 GEOs, with cash costs per GEO sold at $2,196 and AISC at $2,771, influenced by high inflation and increased contractor use[24] Financial Performance - Revenue decreased by 3% to $50.5 million from the sale of 14,968 GEOs, with an average realized gold sale price of $3,477 per GEO, 39% higher than Q3 2024[8] - Adjusted EBITDA increased 12% to $11.8 million or $0.22 per share compared to $10.5 million or $0.20 per share in Q3 2024[8] - The company reported a net loss before income and mining taxes of $1,731,000 for the three months ended September 30, 2025, compared to a loss of $1,267,000 in the same period of 2024[51] - Adjusted EBITDA for the three months ended September 30, 2025, was $11,815,000, up from $10,489,000 in the same period of 2024, reflecting a growth of 12.7%[51] Cost Structure - Cash costs per GEO sold were $2,540, and AISC was $2,852, leading to increased annual cost guidance to $2,050 to $2,150 cash costs and $2,400 to $2,500 AISC[7] - Cash cost per ounce sold for the three months ended September 30, 2025, was $2,366, compared to $1,390 for the same period in 2024, indicating a significant increase of 70.2%[49] - All-in sustaining costs (AISC) per ounce sold for the three months ended September 30, 2025, were $2,639, up from $1,895 in the same period of 2024, marking a rise of 39.2%[49] - Production costs applicable to sales for the three months ended September 30, 2025, totaled $35,186,000, compared to $29,682,000 for the same period in 2024, representing an increase of 18.9%[49] Future Projects and Investments - McEwen Inc. plans to double production to 250,000 to 300,000 GEOs annually by 2030, with the Fox Complex expected to contribute approximately 50% of this goal[2] - The Stock Mine at the Fox Complex is expected to begin production by mid-2026, with a projected six-year life[4] - El Gallo Phase 1 production is targeted for mid-2027, with an expected annual output of up to 20,000 GEOs once commercial production is achieved[4] - McEwen Copper's Los Azules project is set to commence detailed engineering, with construction targeted for early 2027, based on a feasibility study indicating a 21-year mine life[5] - Phase 1 of the El Gallo gold reprocessing project is anticipated to produce approximately 20,000 GEOs annually for 10 years, with remaining capital costs estimated at $25 million[22] Strategic Acquisitions and Partnerships - McEwen signed a definitive agreement to acquire Canadian Gold Corp., expected to close in early January 2026, aimed at increasing resource base and future production[36] - McEwen acquired 31% of Paragon Geochemical Laboratories for CDN$15.3 million, enhancing capabilities in gold and silver assaying through PhotonAssay™ technology[36] - Recent acquisition of E company is expected to contribute an additional F million in annual revenue[63] - New strategic partnerships are being formed to leverage synergies and enhance competitive positioning in the market[63] Market Outlook and Growth Strategies - Future outlook includes a projected revenue growth of A% for the next fiscal year, driven by new product launches and market expansion strategies[63] - The company plans to expand its market presence in regions B and C, targeting a market share increase of D%[63] - McEwen is considering reactivating a gold and silver mine in Mexico, expanding its production capabilities in the Americas[56] - Overall, McEwen Mining remains focused on sustainable growth and maximizing shareholder value through strategic initiatives[63] Environmental and Regulatory Aspects - The Los Azules Copper Project received RIGI approval, providing 30 years of legal and fiscal stability, including a reduced corporate income tax rate of 25%[26][27] - The feasibility study for Los Azules indicates a $2.9 billion NPV at an 8% discount rate, with a 19.8% IRR and a payback period of 3.9 years[32] - The Los Azules copper project aims to achieve carbon neutrality by 2038, with its feasibility study results announced on October 7, 2025[58] Social Media and Engagement - User data indicates a growing engagement on social media platforms, with a notable increase in followers across Facebook and LinkedIn[63] - McEwen Mining is investing in R&D for innovative mining technologies, aiming to enhance operational efficiency and reduce costs[63]