McEwen Mining Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>McEwen Mining Inc. filed its Q1 2024 10-Q report, detailing financial performance and operational segments across the US, Mexico, and Canada.</b>

AI Summary

McEwen Mining Inc. (MUX) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. McEwen Mining Inc. filed a 10-Q report for the quarter ended March 31, 2024. The filing covers operations in the United States, Mexico, and Canada. Key financial statement items such as Retained Earnings and Common Stock are detailed for various periods. The company's fiscal year ends on December 31. McEwen Mining Inc. is involved in the Gold & Silver Ores industry (SIC 1040).

Why It Matters

For investors and stakeholders tracking McEwen Mining Inc., this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial data, crucial for assessing the company's performance and making informed investment decisions. The report's detailed segment information for US, Mexico, and Canada allows for a granular understanding of where the company's mining activities are concentrated and their respective contributions.

Risk Assessment

Risk Level: medium — McEwen Mining Inc. shows moderate risk based on this filing. The company operates in the mining industry, which is subject to significant price volatility for commodities like gold and silver, as well as regulatory and environmental risks.

Analyst Insight

Monitor the company's production reports and commodity prices for insights into future revenue and profitability.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Quarterly report)
• 2024-05-08 — Filing Date (10-Q filing)
• 1231 — Fiscal Year End (Annual reporting cycle)
• 1040 — SIC Code (Gold & Silver Ores)

Key Players & Entities

• McEwen Mining Inc. (company) — Filer of the 10-Q report
• MUX (company) — Ticker symbol for McEwen Mining Inc.
• 2024-03-31 (date) — End of the reporting period
• 2024-05-08 (date) — Filing date of the 10-Q
• Gold & Silver Ores (industry) — Standard Industrial Classification for McEwen Mining Inc.
• United States (location) — Reportable segment
• Mexico (location) — Reportable segment
• Canada (location) — Reportable segment

FAQ

Risk Factors

• Commodity Price Fluctuations [high — market]: The market prices of gold, silver, copper, and other metals are subject to significant fluctuations, which can adversely affect the company's financial results.
• Environmental Regulations [medium — regulatory]: The company's mining operations are subject to stringent environmental laws and regulations, the costs of compliance with which may be substantial.
• Operational Risks [medium — operational]: Mining operations are inherently risky and can be affected by geological challenges, equipment failures, and labor issues.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q
• 2024-05-08: Filing Date — Date the 10-Q was officially submitted to the SEC

Filing Documents

• mux-20240331x10q.htm (10-Q) — 1706KB
• mux-20240331xex31d1.htm (EX-31.1) — 15KB
• mux-20240331xex31d2.htm (EX-31.2) — 14KB
• mux-20240331xex32.htm (EX-32) — 9KB
• mux-20240331xex95.htm (EX-95) — 22KB
• 0001558370-24-007329.txt (&nbsp;) — 7384KB
• mux-20240331.xsd (EX-101.SCH) — 54KB
• mux-20240331_cal.xml (EX-101.CAL) — 56KB
• mux-20240331_def.xml (EX-101.DEF) — 217KB
• mux-20240331_lab.xml (EX-101.LAB) — 401KB
• mux-20240331_pre.xml (EX-101.PRE) — 307KB
• mux-20240331x10q_htm.xml (XML) — 1371KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2024, and 2023 (unaudited) 3 Consolidated Balance Sheets at March 31, 2024 (unaudited) and December 31, 2023 (audited) 4 Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2024, and 2023 (unaudited) 5 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3. Quantitative and Qualitative Disclosure about Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 38

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 40

SIGNATURES

SIGNATURES 41 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENT S

Item 1. FINANCIAL STATEMENT S MCEWEN MINING INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands of U.S. dollars, except per share) Three months ended March 31, 2024 2023 Revenue from gold and silver sales $ 41,228 $ 34,752 Production costs applicable to sales ( 25,110 ) ( 23,413 ) Depreciation and depletion ( 10,107 ) ( 6,896 ) Gross profit 6,011 4,443 OTHER OPERATING EXPENSES: Advanced projects - Los Azules — ( 31,880 ) Advanced projects - Other ( 2,454 ) ( 1,680 ) Exploration ( 3,871 ) ( 5,900 ) General and administrative ( 4,073 ) ( 3,441 ) Loss from investment in McEwen Copper Inc. (Note 9) ( 18,012 ) — Income (loss) from investment in Minera Santa Cruz S.A. (Note 9) 1,278 ( 3,461 ) Depreciation ( 171 ) ( 282 ) Reclamation and remediation (Note 11) ( 690 ) ( 630 ) ( 27,993 ) ( 47,274 ) Operating loss ( 21,982 ) ( 42,831 ) OTHER INCOME (EXPENSE): Interest and other finance income (expense), net ( 870 ) 8,464 Other expense (Note 3) ( 88 ) ( 2,579 ) Total other income (expense) ( 958 ) 5,885 Loss before income and mining taxes ( 22,940 ) ( 36,946 ) Income and mining tax recovery 2,557 536 Net loss after income and mining taxes ( 20,383 ) ( 36,410 ) Net income attributable to non-controlling interests — ( 6,666 ) Net loss and comprehensive loss attributable to McEwen shareholders $ ( 20,383 ) $ ( 43,076 ) Net loss per share (Note 12): Basic and diluted $ ( 0.41 ) $ ( 0.91 ) Weighted average common shares outstanding (thousands) (Note 12): Basic and diluted 49,440 47,428 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents MCEWEN MINING INC. CONSOLIDATED BALANCE SHEET S (UNAUDITED) (in thousands of U.S. dollars) March 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents (Note 4) $ 21,989 $ 23,020

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31 , 2024 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) NOTE 1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION McEwen Mining Inc. (the "Company") was organized under the laws of the State of Colorado on July 24, 1979. The Company produces and sells gold and silver from its operations in Canada, the United States and Argentina, and has a number of exploration and development assets in Canada, the United States, Mexico and Argentina. The Company owns a 100 % interest in the Gold Bar mine in Nevada, United States, the Fox Complex in Ontario, Canada, the Fenix Project in Sinaloa, Mexico and a portfolio of exploration properties in Nevada, Canada, Mexico and Argentina. The Company also owns a 47.7 % interest in McEwen Copper Inc. ("McEwen Copper"), owner of the Los Azules copper project in San Juan, Argentina and a 49.0 % interest in Minera Santa Cruz S.A. ("MSC"), owner of the producing San Jos silver-gold mine in Santa Cruz, Argentina, which is operated by the joint venture majority owner Hochschild Mining plc. The Company reports its investments in McEwen Copper and MSC as equity investments. The interim consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and are unaudited. While information and note disclosures normally included in annual financial statements and prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations, the Company believes that the information and disclosures included in the interim consolidated financial statements are adequate and not misleading. Therefore, these interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto and t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31 , 2024 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) Significant information relating to the Company's reportable operating segments for the periods presented is summarized in the tables below: Three months ended March 31, 2024 USA Canada Mexico MSC McEwen Copper Total Revenue from gold and silver sales $ 25,278 $ 14,750 $ 1,200 $ — $ — $ 41,228 Production costs applicable to sales ( 13,268 ) ( 11,842 ) — — — ( 25,110 ) Depreciation and depletion ( 6,037 ) ( 4,070 ) — — — ( 10,107 ) Gross profit (loss) 5,973 ( 1,162 ) 1,200 — — 6,011 Advanced projects — — ( 2,454 ) — — ( 2,454 ) Exploration ( 1,082 ) ( 2,789 ) — — — ( 3,871 ) Income (loss) from equity investments — — — 1,278 ( 18,012 ) ( 16,734 ) Segment income (loss) $ 4,891 $ ( 3,951 ) $ ( 1,254 ) $ 1,278 $ ( 18,012 ) $ ( 17,048 ) General and administrative and other ( 5,892 ) Loss before income and mining taxes $ ( 22,940 ) Capital expenditures $ 929 $ 2,780 $ 813 $ — $ — $ 4,522 Three months ended March 31, 2023 USA Canada Mexico MSC McEwen Copper Total Revenue from gold and silver sales $ 11,587 $ 23,165 $ — $ — $ — $ 34,752 Production costs applicable to sales ( 9,341 ) ( 14,072 ) — — — ( 23,413 ) Depreciation and depletion ( 1,260 ) ( 5,636 ) — — — ( 6,896 ) Gross profit 986 3,457 — — — 4,443 Advanced projects ( 289 ) — ( 1,391 ) — ( 31,880 ) ( 33,560 ) Exploration ( 773 ) ( 4,740 ) — — ( 387 ) ( 5,900 ) Loss from equity investments — — — ( 3,461 ) — ( 3,461 ) Segment loss $ ( 76 ) $ ( 1,283 ) $ ( 1,391 ) $ ( 3,461 ) $ ( 32,267 ) $ ( 38,478 ) General and administrative and other 1,532 Loss before income and mining taxes $ ( 36,946 ) Capital expenditu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31 , 2024 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) NOTE 3 OTHER EXPENSE The following is a summary of other expense for the three months ended March 31, 2024 and 2023: Three months ended March 31, 2024 2023 Unrealized and realized gain (loss) on investments (Note 5) $ ( 202 ) $ 296 Foreign currency gain on Blue Chip Swap — 7,993 Foreign currency gain (loss) 91 ( 10,641 ) Other income (loss), net 23 ( 227 ) Total other expense $ ( 88 ) $ ( 2,579 ) During the three months ended March 31, 2023, the Company completed two Blue Chip Swap transactions to transfer funds from Canadian to Argentina within McEwen Copper Inc. These funds were used for the continued development of the Los Azules Copper project. The Company realized a net gain of $ 7.5 million comprised of a foreign currency gain of $ 7.9 million and a realized loss on investments of $ 0.4 million, including the impact of fees and commissions on these Blue Chip Swap transactions. NOTE 4 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets : March 31, 2024 December 31, 2023 Cash and cash equivalents and restricted cash held in USD $ 12,887 $ 10,578 Cash and cash equivalents and restricted cash held in CAD 13,468 16,288 Cash and cash equivalents held in other currencies 63 644 Total cash and cash equivalents and restricted cash $ 26,418 $ 27,510 As at March 31, 2024, of $ 26.4 million of cash and cash equivalents and restricted cash, $ 13.4 million was committed to the Company's Canadian Exploration Expenditures ("CEE") and Canadian Development Expenditures ("CDE") (December 31, 2023 – of $ 27.5 million of cash and cash equivalents and restricted cash, $ 16.1 million committed to CEE and CDE expenditures. NOTE 5 IN

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31 , 2024 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) On January 3, 2024, the Company entered into a private placement subscription agreement to acquire an additional 210,000 common shares of Nevgold Corp. ("Nevgold") , priced at $ 0.23 per share, bringing the total number of shares owned to 5,173,455 . NOTE 6 RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS The following is a breakdown of balances in receivables, prepaids and other current assets as at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Government sales tax receivable $ 2,681 $ 2,511 Prepaids and other assets 3,157 3,067 Receivables, prepaids and other current assets $ 5,838 $ 5,578 NOTE 7 INVENTORIES Inventories as at March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Material on leach pads $ 15,844 $ 11,963 In-process inventory 4,963 4,067 Stockpiles 2,805 5,939 Precious metals 1,465 1,955 Materials and supplies 6,608 6,120 $ 31,685 $ 30,044 Less: long-term portion ( 11,814 ) ( 10,100 ) Current portion $ 19,871 $ 19,944 During the three months ended March 31, 2024, inventories at the Fox Complex operations were written down to their estimated net realizable values by $ 0.8 million (three months ended March 31, 2023 – $nil). Of these write-downs, a total of $ 0.6 million was included in production costs applicable to sales and $ 0.2 million was included in depreciation and depletion in the Statement of Operations. NOTE 8 MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT The applicable definition of proven and probable reserves is set forth in the Regulation S-K 1300 requirements of the SEC. If proven and probable reserves exist at the Company's properties, the relevant capitalized mineral property interests and asset retirement costs are charged to expe

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31 , 2024 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) NOTE 9 EQUITY INVESTMENTS The Company accounts for investments over which it exerts significant influence but does not control through majority ownership using the equity method of accounting. In applying the equity method of accounting to the Company's investment in MSC, MSC's financial statements, which are originally prepared by MSC in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, have been adjusted to conform with US GAAP. Equity investment in McEwen Copper A summary of the operating results for McEwen Copper for the three months ended March 31, 2024 and 2023 is as follows: Three months ended March 31, 2024 2023 McEwen Copper ( 100 %) Advanced projects $ ( 48,183 ) $ — Other expenses ( 2,016 ) — Foreign exchange loss ( 3,992 ) — Interest and other income (1) 16,454 — Loss before tax $ ( 37,737 ) $ — Current and deferred taxes — — Net loss $ ( 37,737 ) $ — Portion attributable to McEwen Mining ( 47.7 %) Net loss on investment in McEwen Copper $ ( 18,012 ) $ — (1) Interest and other income include gains on marketable securities and other finance-related income. Changes in the Company's investment in McEwen Copper for the three months ended March 31, 2024, and for the year ended December 31, 2023, are as follows: March 31, 2024 December 31, 2023 Investment, beginning of period $ 326,147 $ — Deconsolidation of McEwen Copper — 383,968 Attributable net loss from McEwen Copper ( 18,012 ) ( 57,821 ) Investment, end of period $ 308,135 $ 326,147 A summary of the key assets and liabilities of McEwen Copper as at March 31, 2024, before and after adjustments for fair value increments arising from the purchase price allocation, is as follows: As at March 31,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31 , 2024 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) Equity investment in MSC A summary of the operating results for MSC for the three months ended March 31, 2024 and 2023 is as follows: Three months ended March 31, 2024 2023 Minera Santa Cruz S.A. ( 100 %) Revenue from gold and silver sales $ 65,927 $ 45,740 Production costs applicable to sales ( 47,884 ) ( 41,124 ) Depreciation and depletion ( 8,926 ) ( 8,230 ) Gross profit (loss) 9,117 ( 3,614 ) Exploration ( 2,104 ) ( 1,952 ) Other income (expense) (1) 1,501 ( 3,234 ) Income (loss) before tax $ 8,514 $ ( 8,800 ) Current and deferred tax recovery (expense) ( 4,847 ) 3,315 Net income (loss) $ 3,667 $ ( 5,485 ) Portion attributable to McEwen Mining Inc. ( 49 %) Net income (loss) $ 1,796 $ ( 2,687 ) Amortization of fair value increments ( 709 ) ( 884 ) Income tax recovery 191 110 Income (loss) from investment in MSC, net of amortization $ 1,278 $ ( 3,461 ) (1) Other expenses include foreign exchange gains and losses, accretion of asset retirement obligations and other finance-related expenses. The income or loss from the investment in MSC attributable to the Company includes amortization of the fair value increments arising from the initial purchase price allocation and related income tax recovery. The income tax recovery reflects the impact of the devaluation of the Argentine peso against the U.S. dollar on the peso-denominated deferred tax liability recognized at the time of acquisition, as well as income tax rate changes over the periods. Changes in the Company's investment in MSC for the three months ended March 31, 2024, and for the year ended December 31, 2023, are as follows: March 31, 2024 December 31, 2023 Investment, beginning of period $ 93,218 $ 93,451 Attributable net income from MSC 1,796 4,157 Amorti

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (

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