• Gold Equivalent Production: 135,884 ounces, 12% lower than 2023.
• Selling Price Increase: 24% higher than the previous year.
• Adjusted EBITDA: $29.2 million or $0.57 per share, up from $7.7 million or $0.16 per share in 2023.
• Net Loss: $43.7 million, primarily due to expenditures at Los Azules.
• Exploration Expenditure: $16.5 million, totaling $19.8 million.
• Depreciation: $10 million.
• Debt Increase: From $40 million to $130 million via capped call convertible debenture.
• Cash Position: Approximately $62 million.
• Fox Complex Exploration: Increased indicated and inferred resources to over 2 million ounces.
• Los Azules Valuation: Implied value of $984 million, with a 46% interest equating to $457 million.
• San Jose Mine Investment: 49% interest, expecting to pay a dividend soon.

• Warning! GuruFocus has detected 4 Warning Signs with MUX.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• McEwen Mining Inc (NYSE:MUX) reported a significant increase in adjusted EBITDA, which was 3.8 times higher than the previous year, reaching $29.2 million.
• The company achieved a 24% higher selling price for its production, despite a 12% decrease in consolidated production.
• Exploration efforts at the Fox Complex have increased indicated and inferred resources to over 2 million ounces, allowing for future production expansion.
• The Los Azules project has seen a substantial increase in implied value, now estimated at $984 million, with plans for an IPO contingent on market conditions.
• The San Jose mine, in which McEwen Mining Inc (NYSE:MUX) holds a 49% interest, is expected to pay a dividend soon, benefiting from higher metal prices.

Negative Points

• McEwen Mining Inc (NYSE:MUX) posted a net loss of $43.7 million, primarily due to significant investments in the Los Azules project.
• The company's debt increased from $40 million to $130 million through a capped call convertible debenture.
• There is ongoing uncertainty regarding the approval of the Los Azules project under Argentina's RIGI scheme, with no clear timeline for a decision.
• The company faces a legal claim from an indigenous group concerning property interests in Timmins, which it believes is without merit.
• Permitting timelines for the Timberline properties and other projects remain unpredictable, potentially delaying production increases.

Q & A Highlights

Q: Can you provide more details on the mine life extension opportunities at Gold Bar and the permitting process for the Timberline properties? A: William Shaver, Chief Operating Officer, explained that exploration work is ongoing at Timberline, with $4 million allocated for exploration this year. The permitting process involves two parts: patented claims, which have a shorter permitting timeframe, and BLM land, which could take three to five years. Permitting work will start this year, with applications expected in the next quarter.

Q: How should we think about the royalty portfolio moving forward? Are there plans to expand or monetize it? A: Robert McEwen, Chairman and CEO, confirmed that both expansion and monetization are being considered for the royalty portfolio.

Q: With gold prices over $3,000 an ounce, have you reconsidered near-term mine planning? A: William Shaver, COO, stated that they are focusing on increasing production at Gold Bar and Timmins to capitalize on high gold prices. A 10% production increase in both locations could generate about $10 million in cash.

Q: What is the timeline for Los Azules' approval under RIGI, and where does it stand in the queue? A: Robert McEwen, CEO, mentioned that they expect to know about Los Azules' approval in two to four months. Michael Meding, VP of McEwen Copper, added that they are the second metal mining project to apply for RIGI, and the process is ongoing with responses to information requests from regulators.

Q: If McEwen Mining wasn't investing in Los Azules, would the quarterly earnings have been positive? A: Robert McEwen, CEO, confirmed that without the $47 million charge from Los Azules, the company would have reported a slight profit instead of a $43 million loss.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.