McEwen Mining(MUX) - 2022 Q3 - Quarterly Report

Production and Sales - The company produced 35,653 gold equivalent ounces (GEOs) in Q3/22, a decrease of 16.3% from 42,874 GEOs in Q3/21[110] - Production of gold equivalent ounces (GEOs) in Q3/22 was 16,326, a decrease from 21,258 GEOs in Q3/21, primarily due to lower production at the Gold Bar mine[116] - Production from the Fox Complex increased by 9% in Q3/22, reaching 8,970 GEOs compared to 8,259 GEOs in Q3/21[146] - Gold equivalent ounces sold for Q3 2022 were 40,000, down from 43,500 in Q3 2021, a decrease of 11.5%[200] - Gold ounces sold in Q3 2022 were 20.1, compared to 21.6 in Q3 2021, a decline of 6.9%[200] - Silver ounces sold in Q3 2022 were 1,788, up from 1,605 in Q3 2021, an increase of 11.4%[200] Financial Performance - Revenues for Q3/22 were reported at $26.0 million from the sale of 15,408 GEOs, with an average realized price of $1,742 per GEO[110] - The net loss for Q3/22 was $10.5 million, an improvement from a net loss of $17.4 million in Q3/21, primarily due to foreign currency gains[114] - Revenue from gold and silver sales in Q3/22 was $26.0 million, down 30% or $11.1 million from $37.1 million in Q3/21, due to decreased GEO sales and a slight drop in realized gold price[117] - Revenue from Gold Bar mine in Q3/22 was $12.6 million, a 42% decrease from $21.7 million in Q3/21, reflecting a 40% decrease in GEOs sold[136] - Revenue from gold sales decreased by $1.2 million to $13.1 million in Q3/22, attributed to fewer GEOs sold and a lower average realized gold price[146] - Revenue from gold and silver sales for Q3 2022 was $25,988,000, compared to $37,129,000 in Q3 2021, reflecting a decrease of 30.4%[200] Costs and Expenses - Cash gross profit for Q3/22 was $5.8 million, with a gross profit of $1.5 million reported[110] - Cash gross profit for Q3 2022 was $6,862,000, compared to a cash gross profit of $12,344,000 for Q3 2021[186] - The cash cost per ounce for 100% owned operations was $1,219, down from $1,390 in Q3/21[112] - Cash cost per ounce sold in Q3/22 was $1,712, compared to $1,553 in Q3/21, due to a lower number of ounces sold[139] - Cash cost per ounce sold was $1,223 for Q3 2022, compared to $1,100 for Q3 2021, indicating an increase of 11.2%[200] - Cash costs for Q3 2022 totaled $18,553,000, with production costs applicable to sales reflecting operational efficiencies[195] Exploration and Projects - The company spent $12.8 million on exploration and advanced projects in Q3/22, focusing on the Los Azules Copper Project and resource expansion at the Fox Complex and Gold Bar mine[110] - The company is progressing the Los Azules copper project with ongoing drilling, road construction, and community engagement, aiming for an updated Preliminary Economic Assessment (PEA)[110] - Advanced project costs for Q3/22 increased to $8.8 million from $4.0 million in Q3/21, mainly due to expenditures for the Los Azules Copper Project[119] - The company aims to complete a feasibility study by 2024 to improve confidence in the mineral resource estimate and expand the overall resource base[181] - The company is working on an updated Preliminary Economic Assessment (PEA) that incorporates all drill and assay information from recent exploration seasons[177] Currency and Market Risks - The Argentine peso devalued by 13.1% during the three months ended September 30, 2022, compared to a devaluation of 5.13% in the same period of 2021[214] - The Canadian dollar experienced a 2% depreciation against the U.S. dollar for the three months ended September 30, 2022, compared to a 2.6% appreciation in the comparable period of 2021[215] - The company has not utilized material market risk-sensitive instruments to manage exposure to foreign currency exchange rates but may consider doing so in the future[216] - The company does not hedge any of its sales, making it subject to all changes in commodity prices[224] - The company is exposed to fluctuations in the fair value of its investments in the mining sector, which may result in gains or losses[219] Internal Controls and Governance - As of September 30, 2022, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[232] - There were no changes in internal control over financial reporting during the quarter ended September 30, 2022, that materially affected the internal controls[232]