McEwen Inc. Quarterly Report Released - Here’s What You Should Know

McEwen Inc. – Q3 2025 Investor Summary

Key Financial Metrics:

• Q3 2025 Revenue: $50.5 million (down 3% from $52.3 million Q3 2024)
• Nine months 2025 Revenue: $132.9 million (down 6% from $141.0 million 9M 2024)
• Q3 Net Loss: $0.5 million, or $0.01 per share (Q3 2024: $2.1 million loss, $0.04 per share)
• Nine months Net Loss: $3.7 million, or $0.07 per share (9M 2024: $35.5 million loss, $0.70 per share)
• Q3 Gross Profit: $7.8 million (Q3 2024: $13.8 million)
• Q3 Adjusted EBITDA: $11.8 million, $0.22/share (Q3 2024: $10.5 million, $0.20/share)
• Operating Cash Flow (9M 2025): $3.8 million (9M 2024: $30.7 million)
• Cash & Equivalents: $51.2 million as of September 30, 2025 (Dec 2024: $13.7 million)
• Working Capital: $62.6 million (shift from negative $6.5 million at 2024 year-end)
• Long-term Debt: $126.0 million (Dec 2024: $40.0 million), including new $110.0 million convertible notes

Production and Cost Highlights:

• Gold Equivalent Ounces (GEOs) Produced (Q3 2025): 29,662 (Q3 2024: 35,180)
• GEOs Sold (Q3 2025): 26,134 (Q3 2024: 34,435)
• Average Realized Price per GEO: $3,477 (Q3 2024: $2,499)
• Cash Costs per GEO (100% owned): $2,366 (Q3 2024: $1,390)
• AISC per GEO (100% owned): $2,639 (Q3 2024: $1,895)
• Fox Complex Q3 Cash Cost: $2,132 per GEO; AISC: $2,352
• Gold Bar Mine Q3 Cash Cost: $2,540 per GEO; AISC: $2,852
• San José (49% owned) Q3 Cash Cost: $2,196 per GEO; AISC: $2,771

Operational Highlights:

• Gold Bar Mine Q3 GEOs Produced: 8,191 (down 40% YoY)
• Fox Complex Q3 GEOs Produced: 6,386 (down 19% YoY)
• San José Mine (Argentina) Q3 GEOs Produced: 14,986 attributable (up 10% YoY)
• Invested $3.1M in Fox’s Stock project and $3.0M in Grey Fox exploration in Q3
• Exploration at Gold Bar Mine: $3.8M spent in Q3
• MSC (San José) delivered $3.5M income in Q3 to McEwen, up from a $1.2M deficit YoY
• Loss from McEwen Copper Investment (Q3): $4.3M (Q3 2024: $1.9M loss)
• Other Income: $8.3M in Q3, mostly unrealized investment gains

Segment Results:

• US Segment (Gold Bar): Revenue $29.4M in Q3 with higher unit costs; production dropped and costs rose due to changes in ore grade and operational issues.
• Canada (Fox Complex): Revenue $20.8M with volume down but price up; unit costs and AISC increased due to mine mix and higher sustaining expenses.
• San José Mine (Argentina): Attributable income increased; production up and costs stable. Q3 revenue $91.7M (100% basis).
• Investment in McEwen Copper: Loss still significant ($19.8M YTD) but Los Azules feasibility study completed, with proven and probable reserves at 10.2 billion pounds Cu.

Balance Sheet & Liquidity:

• Cash Usage: $39.8M used in investing (new project investments and $35.0M capex YTD).
• Financing: Raised $110M via convertible notes (February 2025), repaid $20M term loan debt.
• Convertible Notes: 5.25% due 2030, with associated $15.1M in capped call options for anti-dilution protection.
• No significant inventory write-downs in 2025; inventories increased to $45.1M

Risks & Outlook:

• Commodity Prices: Highly sensitive to gold/silver prices; no hedging program.
• Foreign Currency: Exposed to MXN and CAD volatility; Q3 saw 2.4% appreciation in MXN.
• Cost Pressure: Unit cash costs and AISC rose significantly YoY; operational challenges at Gold Bar and Fox complexes.
• Exploration & Capex: High ongoing commitment to development projects (Stock, Grey Fox, Los Azules).
• Debt Load: Leverage increased with $110M convertible issuance; future dilution possible if notes convert.
• Equity Investments: Results affected by performance of investments in McEwen Copper and Minera Santa Cruz.
• Other Risks: Regulatory, permitting, geopolitical, operational risks, and internal control remediation in process.

Other Events:

• Acquisitions: 31% equity interest in Britannia Mining Solutions announced post-quarter.
• Shares Outstanding: 54.5 million as of Nov 5, 2025.

Investor Takeaway: Q3 2025 saw McEwen Inc. focusing on asset development, ramping up liquidity via debt markets, and managing higher unit costs amidst declining production at key North American operations. The company remains exposed to commodity and cost inflation risks while expanding its investment footprint and advancing significant assets like Los Azules in Argentina. Investors should note elevated debt, increased operating leverage, and ongoing dependence on precious metal/process pricing.

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