McEwen Narrows Losses Despite Revenue Dip, Boosts Cash with Debt

Ticker: MUX · Form: 10-Q · Filed: Nov 5, 2025 · CIK: 314203

Sentiment: mixed

Topics: Mining, Gold, Silver, Copper, Earnings, Debt Financing, Exploration

Related Tickers: MUX

TL;DR

**MUX is cutting losses and flush with cash from new debt, but watch that leverage as revenue dips.**

AI Summary

McEwen Inc. reported a net loss of $0.462 million for the three months ended September 30, 2025, a significant improvement from the $2.081 million net loss in the prior-year quarter. For the nine months ended September 30, 2025, the net loss was $3.692 million, substantially better than the $35.459 million loss in the same period of 2024. Revenue from gold and silver sales decreased to $50.534 million for the three-month period in 2025, down from $52.250 million in 2024, and fell to $132.930 million for the nine-month period from $140.954 million. Production costs applicable to sales increased to $35.233 million for the quarter, up from $29.682 million, but decreased to $82.571 million for the nine months from $86.858 million. The company experienced a significant increase in cash and cash equivalents, rising to $51.249 million as of September 30, 2025, from $13.692 million at December 31, 2024, primarily due to $110.000 million in proceeds from senior convertible notes. Investment in McEwen Copper Inc. decreased to $279.116 million from $298.947 million, while investment in Minera Santa Cruz S.A. increased to $107.183 million from $101.854 million. Long-term debt, net of issuance costs, surged to $125.968 million from $40.000 million, reflecting the new convertible notes. General and administrative expenses increased to $6.069 million for the quarter from $2.138 million in the prior year.

Why It Matters

McEwen's ability to significantly reduce its net loss, despite a slight revenue decline, signals improved operational efficiency or cost control, which is crucial for investor confidence in a volatile commodities market. The substantial increase in cash and cash equivalents, driven by new senior convertible notes, provides liquidity for ongoing operations and development projects like Los Azules, but also introduces increased debt leverage. This financial maneuvering could impact the company's competitive position against larger, more established mining firms by funding growth, but also exposes it to higher interest rate risks. Employees and local communities around its mines in Nevada, Ontario, and Argentina will be watching for sustained operational stability and investment in projects.

Risk Assessment

Risk Level: medium — The company's long-term debt, net of issuance costs, increased significantly to $125.968 million as of September 30, 2025, from $40.000 million at December 31, 2024, primarily due to $110.000 million in proceeds from senior convertible notes. This increased leverage, coupled with a decrease in revenue from gold and silver sales to $132.930 million for the nine months ended September 30, 2025, from $140.954 million in the prior year, indicates potential financial strain if commodity prices decline or operational costs rise further.

Analyst Insight

Investors should monitor McEwen's ability to generate sufficient cash flow from operations to service its increased debt obligations, especially given the $4.660 million in interest and other finance expenses for the nine months ended September 30, 2025. Evaluate the progress and potential returns from its advanced projects, particularly McEwen Copper's Los Azules, as these are critical for future revenue growth to justify the higher leverage.

Financial Highlights

debt To Equity
N/A
revenue
$132,930,000
operating Margin
N/A
total Assets
$747,644,000
total Debt
$125,968,000
net Income
-$3,692,000
eps
-$0.07
gross Margin
22.7%
cash Position
$51,249,000
revenue Growth
-5.7%

Revenue Breakdown

SegmentRevenueGrowth
USA$79,340,000-24.0%
Canada$53,263,000+39.8%
Mexico$327,000N/A
Minera Santa Cruz S.A. (MSC)$0N/A
McEwen Copper$0N/A

Key Numbers

Key Players & Entities

FAQ

What were McEwen Inc.'s net losses for the three and nine months ended September 30, 2025?

McEwen Inc. reported a net loss of $0.462 million for the three months ended September 30, 2025, and a net loss of $3.692 million for the nine months ended September 30, 2025.

How did McEwen Inc.'s revenue from gold and silver sales change in Q3 2025?

Revenue from gold and silver sales for McEwen Inc. decreased to $50.534 million for the three months ended September 30, 2025, down from $52.250 million in the same period of 2024.

What was the primary reason for the increase in McEwen Inc.'s cash and cash equivalents?

McEwen Inc.'s cash and cash equivalents increased significantly to $51.249 million as of September 30, 2025, primarily due to $110.000 million in proceeds from senior convertible notes.

How has McEwen Inc.'s long-term debt changed as of September 30, 2025?

McEwen Inc.'s long-term debt, net of issuance costs, surged to $125.968 million as of September 30, 2025, from $40.000 million at December 31, 2024, largely due to the issuance of new convertible notes.

What is McEwen Inc.'s ownership stake in McEwen Copper Inc. and Minera Santa Cruz S.A.?

As of September 30, 2025, McEwen Inc. owns a 46.4% interest in McEwen Copper Inc. and a 49.0% interest in Minera Santa Cruz S.A.

What were the general and administrative expenses for McEwen Inc. in Q3 2025?

General and administrative expenses for McEwen Inc. increased to $6.069 million for the three months ended September 30, 2025, compared to $2.138 million in the prior-year quarter.

What impact did the investment in McEwen Copper Inc. have on McEwen Inc.'s net loss?

The loss from investment in McEwen Copper Inc. contributed significantly to McEwen Inc.'s net loss, totaling $19.831 million for the nine months ended September 30, 2025.

What are the key mining properties owned by McEwen Inc.?

McEwen Inc. owns 100% interest in the Gold Bar Mine Complex in Nevada, USA, the Fox Complex in Ontario, Canada, and the Fenix Project in Sinaloa, Mexico.

How many common shares of McEwen Inc. were outstanding as of November 5, 2025?

As of November 5, 2025, there were 54,480,457 shares of McEwen Inc. common stock outstanding.

What was the change in production costs applicable to sales for McEwen Inc. in Q3 2025?

Production costs applicable to sales for McEwen Inc. increased to $35.233 million for the three months ended September 30, 2025, up from $29.682 million in the prior-year quarter.

Risk Factors

Industry Context

The gold and silver mining industry is capital-intensive and subject to significant price volatility for its primary commodities. Companies like McEwen Inc. operate in a competitive landscape, balancing exploration and development with production costs and regulatory environments. The industry is also increasingly focused on ESG (Environmental, Social, and Governance) factors and managing the lifecycle of mining assets.

Regulatory Implications

McEwen Inc. operates under various mining, environmental, and securities regulations in the jurisdictions where it has operations. Compliance with these regulations is critical to maintaining licenses to operate and avoiding penalties. Changes in tax laws or environmental standards could materially impact operational costs and profitability.

What Investors Should Do

  1. Monitor G&A expense trends
  2. Analyze debt structure and repayment capacity
  3. Evaluate performance of equity investments
  4. Assess revenue drivers and cost controls

Key Dates

Glossary

Production costs applicable to sales
Direct costs incurred in producing gold and silver, including mining, processing, and refining, net of any by-product credits. (Key indicator of operational efficiency and cost management in the core mining business.)
Equity method of accounting
An accounting method where an investment in another company is initially recorded at cost and then adjusted to recognize the investor's share of the investee's net income or loss. (Used for investments in McEwen Copper Inc. and Minera Santa Cruz S.A., impacting the consolidated income statement and balance sheet.)
Senior convertible notes
Debt instruments that can be converted into a predetermined number of the issuer's common stock shares. (The issuance of $110.000 million in these notes significantly increased cash and long-term debt.)
Gross profit
Revenue from sales minus the cost of goods sold (production costs applicable to sales). (Measures the profitability of the company's core mining operations before other operating expenses.)
Operating loss
The loss incurred from a company's normal business operations, calculated as gross profit minus operating expenses. (Indicates the profitability of the company's core business activities before considering interest and taxes.)

Year-Over-Year Comparison

McEwen Inc. has demonstrated a significant improvement in its net loss, reducing it from $2.081 million in Q3 2024 to $0.462 million in Q3 2025, and from $35.459 million YTD 2024 to $3.692 million YTD 2025. However, this improvement comes alongside a decrease in revenue from gold and silver sales and a substantial increase in long-term debt to $125.968 million, primarily from new convertible notes. While cash reserves have surged to $51.249 million, driven by this financing, the company also faces rising general and administrative expenses and continued losses from its investment in McEwen Copper.

Filing Stats: 4,746 words · 19 min read · ~16 pages · Grade level 15.8 · Accepted 2025-11-05 17:23:07

Filing Documents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2025, and 2024 (unaudited) 3 Consolidated Balance Sheets at September 30, 2025 (unaudited), and December 31, 2024 4 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2025, and 2024 (unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025, and 2024 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8 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 25 Item 3. Quantitative and Qualitative Disclosure about Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 48

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 50 Item 6. Exhibits 51

SIGNATURES

SIGNATURES 52 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENT S

Item 1. FINANCIAL STATEMENT S McEWEN INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in thousands of U.S. dollars, except per share, and shares) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Revenue from gold and silver sales $ 50,534 $ 52,250 $ 132,930 $ 140,954 Production costs applicable to sales ( 35,233 ) ( 29,682 ) ( 82,571 ) ( 86,858 ) Depreciation and depletion ( 7,485 ) ( 8,765 ) ( 20,192 ) ( 23,524 ) Gross profit 7,816 13,803 30,167 30,572 OTHER OPERATING INCOME (EXPENSES): Advanced projects ( 1,658 ) ( 2,468 ) ( 4,237 ) ( 7,912 ) Exploration ( 6,778 ) ( 5,329 ) ( 15,851 ) ( 14,184 ) General and administrative ( 6,069 ) ( 2,138 ) ( 14,484 ) ( 10,672 ) Loss from investment in McEwen Copper Inc. (Note 9) ( 4,275 ) ( 1,852 ) ( 19,831 ) ( 36,680 ) Income (loss) from investment in Minera Santa Cruz S.A. (Note 9) 3,469 ( 1,228 ) 7,575 4,751 Depreciation ( 158 ) ( 156 ) ( 475 ) ( 485 ) Reclamation and remediation ( 778 ) ( 729 ) ( 2,310 ) ( 1,416 ) ( 16,247 ) ( 13,900 ) ( 49,613 ) ( 66,598 ) Operating loss ( 8,431 ) ( 97 ) ( 19,446 ) ( 36,026 ) OTHER INCOME (EXPENSES): Interest and other finance expenses, net ( 1,628 ) ( 1,084 ) ( 4,660 ) ( 3,688 ) Other income (expenses) (Note 3) 8,328 ( 86 ) 16,955 136 Total other income (expenses) 6,700 ( 1,170 ) 12,295 ( 3,552 ) Loss before income and mining taxes ( 1,731 ) ( 1,267 ) ( 7,151 ) ( 39,578 ) Income and mining tax recovery (expense) (Note 17) 1,269 ( 814 ) 3,459 4,119 Net loss after income and mining taxes $ ( 462 ) $ ( 2,081 ) $ ( 3,692 ) $ ( 35,459 ) Net loss per share (Note 13): Basic and diluted $ ( 0.01 ) $ ( 0.04 ) $ ( 0.07 ) $ ( 0.70 ) Weighted average common shares outstanding (thousands) (Note 13): Basic and diluted 54,170 51,953 53,808

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) NOTE 1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION McEwen Inc. (the "Company"), through its predecessor entity, US Gold Corporation, was organized under the laws of the State of Colorado on July 24, 1979. Effective July 7, 2025, the Company changed its name from McEwen Mining Inc. to McEwen Inc. The Company is engaged in the production and sale of gold and silver, as well as the development and exploration of copper, gold, and silver mineral properties across North and South America. The Company owns a 100 % interest in the Gold Bar Mine Complex in Nevada, United States, the Fox Complex in Ontario, Canada, the Fenix Project in Sinaloa, Mexico and a portfolio of exploration properties in the United States, Canada, Mexico and Argentina. As of September 30, 2025, the Company also owns a 46.4 % 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 under the equity method of accounting. 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 no

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) The CODM reviews segment income or loss, defined as gold and silver sales less production costs applicable to sales, depreciation and depletion, advanced projects, and exploration costs and an allocation of other segment items for all segments except for the McEwen Copper and MSC segments, which are evaluated based on the attributable equity income or loss pickup. The CODM uses segment gross profit (loss) and profit (loss) before taxes, or income (loss) from equity method investments, to allocate resources (including employees, property, and financial or capital resources) for each segment. The CODM predominantly considers such measures in the annual budget and forecasting process. The CODM considers budget-to-actual variances for operating segments on a quarterly basis to support resource allocation and performance evaluation. Gold and silver sales and production costs applicable to sales for the reportable segments are reported net of intercompany transactions. Capital expenditures include costs capitalized in mineral property interests and plant and equipment in the respective periods. Significant information relating to the Company's reportable operating segments for the periods presented is summarized in the tables below: Three months ended September 30, 2025 USA Canada Mexico MSC McEwen Copper Total Revenue from gold and silver sales $ 29,427 $ 20,780 $ 327 $ — $ — $ 50,534 Production costs applicable to sales (1) ( 21,701 ) ( 13,485 ) ( 47 ) — — ( 35,233 ) Depreciation and depletion (1) ( 2,212 ) ( 5,273 ) — — — ( 7,485 ) Gross profit 5,514 2,022 280 — — 7,816 Advanced projects (1) — — ( 1,658 ) — — ( 1,658 ) Exploration (1) ( 3,806 ) ( 2,972 ) — — — ( 6,778 ) Income (loss) from equity method inves

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) Nine months ended September 30, 2025 USA Canada Mexico MSC McEwen Copper Total Revenue from gold and silver sales $ 79,340 $ 53,263 $ 327 $ — $ — $ 132,930 Production costs applicable to sales (1) ( 44,815 ) ( 37,709 ) ( 47 ) — — ( 82,571 ) Depreciation and depletion (1) ( 4,526 ) ( 15,666 ) — — — ( 20,192 ) Gross profit (loss) 29,999 ( 112 ) 280 — — 30,167 Advanced projects (1) — — ( 4,237 ) — — ( 4,237 ) Exploration (1) ( 7,756 ) ( 8,095 ) — — — ( 15,851 ) Income (loss) from equity method investments (2) — — — 7,575 ( 19,831 ) ( 12,256 ) Other segment items (3) ( 1,310 ) ( 1,957 ) ( 4,057 ) — — ( 7,324 ) Segment profit (loss) $ 20,933 $ ( 10,164 ) $ ( 8,014 ) $ 7,575 $ ( 19,831 ) $ ( 9,501 ) Unallocated amounts: General and administrative (4) ( 11,134 ) Depreciation (5) ( 332 ) Interest and other finance expense, net ( 4,219 ) Other income 18,035 Loss before income and mining taxes $ ( 7,151 ) Capital expenditures $ 10,503 $ 24,309 $ 200 $ — $ — $ 35,012 Three months ended September 30, 2024 USA Canada Mexico MSC McEwen Copper Total Revenue from gold and silver sales $ 33,251 $ 18,999 $ — $ — $ — $ 52,250 Production costs applicable to sales (1) ( 17,078 ) ( 12,604 ) — — — ( 29,682 ) Depreciation and depletion (1) ( 4,235 ) ( 4,530 ) — — — ( 8,765 ) Gross profit 11,938 1,865 — — — 13,803 Advanced projects (1) — — ( 2,468 ) — — ( 2,468 ) Exploration (1) ( 3,474 ) ( 1,855 ) — — — ( 5,329 ) Loss from equity method investments (2) — — — ( 1,228 ) ( 1,852 ) ( 3,080 ) Other segment items (3) ( 901 ) ( 626 ) 9 — — ( 1,518 ) Segment prof

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) Nine months ended September 30, 2024 USA Canada Mexico MSC McEwen Copper Total Revenue from gold and silver sales $ 88,215 $ 51,539 $ 1,200 $ — $ — $ 140,954 Production costs applicable to sales (1) ( 49,515 ) ( 37,343 ) — — — ( 86,858 ) Depreciation and depletion (1) ( 10,705 ) ( 12,819 ) — — — ( 23,524 ) Gross profit 27,995 1,377 1,200 — — 30,572 Advanced projects (1) — — ( 7,912 ) — — ( 7,912 ) Exploration (1) ( 7,102 ) ( 7,082 ) — — — ( 14,184 ) Income (loss) from equity method investments (2) — — — 4,751 ( 36,680 ) ( 31,929 ) Other segment items (3) ( 1,594 ) ( 377 ) ( 752 ) — — ( 2,723 ) Segment profit (loss) $ 19,299 $ ( 6,082 ) $ ( 7,464 ) $ 4,751 $ ( 36,680 ) $ ( 26,176 ) Unallocated amounts: General and administrative (4) ( 9,945 ) Depreciation (5) ( 366 ) Interest and other finance expense, net ( 2,373 ) Other expense ( 718 ) Loss before income and mining taxes $ ( 39,578 ) Capital expenditures $ 12,756 $ 15,547 $ 2,043 $ — $ — $ 30,346 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to CODM. (2) Operating results of McEwen Copper and MSC on a 100 % basis are presented in Note 9 Equity Method Investments. (3) Other segment items include: a. General and administrative expenses attributable to the segment b. Depreciation unrelated to production activities of the segment c. Accretion expense d. Interest and other (income) expenses e. Foreign currency loss (gain) (4) General and administrative expenses are comprised primarily of corporate expenses not attributable to any reporting segment. (5) Depreciation is attributable to the corporate assets and other non-productive assets. Geographic informati

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) NOTE 3 OTHER INCOME (EXPENSES) The following is a summary of other income (expenses) for the three and nine months ended September 30, 2025 and 2024: Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Unrealized and realized gain (loss) on investments $ 8,053 $ ( 362 ) $ 14,503 $ ( 103 ) Foreign currency gain (loss) 281 62 2,207 ( 333 ) Other income (expense) ( 6 ) 214 245 572 Total other income (expenses) $ 8,328 $ ( 86 ) $ 16,955 $ 136 NOTE 4 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a breakdown of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets : September 30, 2025 December 31, 2024 Cash and cash equivalents and restricted cash held in USD $ 52,091 $ 15,578 Cash and cash equivalents and restricted cash held in CAD 2,803 1,501 Cash and cash equivalents and restricted cash held in other currencies 357 385 Total cash and cash equivalents and restricted cash $ 55,251 $ 17,464 NOTE 5 MARKETABLE SECURITIES The following is a summary of the activity in marketable securities for the nine months ended September 30, 2025, and 2024: As at Additions/ Disposals/ Unrealized As at December 31, transfers during transfers during gain on September 30, 2024 period period securities held 2025 Equity securities $ 1,206 $ 7,690 $ ( 168 ) $ 11,921 $ 20,649 Warrants 411 982 ( 480 ) 2,609 3,522 Total marketable securities $ 1,617 $ 8,672 $ ( 648 ) $ 14,530 $ 24,171 As at Additions/ Disposals/ Unrealized As at December 31, transfers during transfers during loss on September 30, 2023 period period securities held 2024 Equity securiti

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (tabular amounts are in thousands of U.S. dollars, unless otherwise noted) On March 27, 2025, the Company participated in two private placement offerings by Canadian Gold Corp (TSX-V: CGC) ("Canadian Gold"), acquiring 8,823,529 common shares and 2,941,176 units for a total investment of $ 1.4 million. Each unit consists of one common share and one non-transferable share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at an exercise price of C$ 0.22 per share up to March 27, 2026. Following the closing, as at March 27, 2025, the Company held

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