Q3/25 OPERATING AND FINANCIAL HIGHLIGHTS
Highlights for Q3/25 are summarized below and discussed further under “Consolidated Performance”:
Corporate Developments
| ● | On September 11, 2025, the Company announced the appointment of Ian Ball as Vice-Chairman of McEwen Inc., a newly created executive position designed to support the Company’s strategic growth. |
| ● | On October 7, 2025, McEwen Copper announced the results of its Feasibility Study (“FS”) for the Los Azules copper project in San Juan, Argentina, with an effective date of September 3, 2025, following the approval of Los Azules to participate in Argentina’s Large Investment Incentive Regime (“RIGI”). The FS supports the development of an open-pit mine producing an average of approximately 451 million pounds of copper cathode per year over a 21-year mine life, with an after-tax NPV8% of $2.9 billion and an internal rate of return of 19.8% based on a copper price assumption of $4.25 per pound. The project is expected to have an estimated payback period of 3.9 years. |
| ● | On July 28, 2025, the Company announced a binding letter of intent to acquire all of the issued and outstanding securities of Canadian Gold Corp. (“Canadian Gold”) by way of a plan of arrangement. On October 10, 2025, the Company entered into a definitive agreement with Canadian Gold, subject to approval by Canadian Gold shareholders and the Supreme Court of British Columbia. Under the terms of the agreement, Canadian Gold shareholders will be entitled to receive 0.0225 shares of the Company’s common stock for each share of Canadian Gold common stock held. The transaction is expected to close in early January 2026, pending required approvals. |
| ● | On November 3, 2025, the Company signed agreements to acquire a 31% equity interest in Britannia Mining Solutions Inc., operating as Paragon Geochemical Laboratories Inc. (“Paragon”), a provider of advanced analytical services to the mining industry. The Company will acquire 648,002 shares of Paragon from Britannia Life Sciences Inc. and 226,286 shares through a private placement from Paragon, both at a deemed price of $12.49 (CAD$17.50) per share, payable in McEwen shares, representing a total investment of $10.9 million. |
Operational Highlights
| ● | Q3/25 consolidated production of 29,662 GEOs, compared to 35,180 GEOs produced in Q3/24. During 9M/25, we produced 81,346 GEOs, including 39,628 attributable GEOs from the San José mine(1). The Company has revised and tightened its annual 2025 GEO production guidance to 112,000 to 123,000 GEOs, from prior guidance of 120,000 to 140,000 GEOs. |
| ● | Q3/25 consolidated sales of 26,134 GEOs, compared to 34,435 GEOs sold in Q3/24. During 9M/25, we sold 77,988 GEOs, including 35,425 attributable GEOs from the San José mine(1). |
| ● | At the Fox Complex, we invested approximately $3.1 million in our Stock project during Q3/25, completing key infrastructure work, including the installation of air ventilation systems and rehabilitation of the historic mine shaft. During the quarter, ramp development at Stock advanced at an average rate of 22 feet (6.7 meters) per day, keeping the project on track for commercial production in 2026. Additionally, the discovery of higher-grade mineralization at the Froome West deposit have enabled the Company to de-risk production during the transition from Froome to Stock in 2026. During Q3/25, the Company focused its efforts on the development of Froome West as an ore source. While Q3/25 production met budget targets, production totaled 6,386 GEOs in Q3/25 and 17,334 GEOs during 9M/25, representing decreases of 19% and 27%, respectively, compared to 7,855 GEOs in Q3/24 and 23,600 GEOs during 9M/24. As the Company focuses on development efforts to secure production continuity through 2026, the Company has revised its 2025 annual production guidance for Froome to 25,000 to 28,000 GEOs, down from 30,000 to 35,000 GEOs. |
| ● | At the Gold Bar Mine Complex we produced 8,191 GEOs during Q3/25, representing a 40% decrease compared to 13,640 GEOs in Q3/24. Total production for 9M/25 was 24,285 GEOs, down from 37,654 GEOs for 9M/24. The Company had lower production than expected driven by mine to model variances. Updated reinterpretations of historic geological data were supported by derisk drilling completed in Q3/25, and mine plans and models have been updated to reflect these findings. As a result, the Company has revised and tightened its 2025 annual production guidance for the Gold Bar Mine Complex to 32,000 to 35,000 GEOs, down from the previous range of 40,000 to 45,000 GEOs. |
| ● | At the San José Mine, Q3/25 production of 14,986 attributable GEOs(1) increased by 10% compared to 13,684 attributable GEOs during Q3/24, and 39,628 attributable GEOs(1) in 9M/25 compared to 41,290 in 9M/24. The increase was primarily due to a higher volume of processed mineralized material. The Company has tightened its full-year production guidance to 55,000 to 60,000 attributable GEOs for San José. |
| ● | We continued to meet safety expectations at our 100% owned operations. During Q3/25, we did not have any lost-time incidents at the Fox Complex, the Gold Bar Mine Complex, or El Gallo. |
Financial Highlights
| ● | Q3/25 revenues of $50.5 million were recognized from the sale of 14,968 GEOs from our 100% owned operations at an average realized price(2) of $3,477 per GEO. This compares to Q3/24 revenues of $52.3 million from the sale of 21,350 GEOs at a realized price of $2,499 per GEO. |
| ● | We reported gross profit of $7.8 million in Q3/25 compared to $13.8 million in Q3/24. The change was primarily driven by an 19% increase in production costs from processing lower grade material at the Gold Bar Mine Complex, along with a decrease in revenues as noted above. |
| ● | Net loss for Q3/25 was $0.5 million, or $0.01 per share, compared to a net loss of $2.1 million for Q3/24, or $0.04 per share. The improvement was primarily driven by an unrealized gain of $8.1 million on our investments in marketable securities, in addition to a $1.3 million in income tax recovery. |
| ● | Adjusted EBITDA(2) for Q3/25 was $11.8 million, or $0.22 per share, compared to Q3/24 adjusted EBITDA of $10.5 million, or $0.20 per share. Adjusted EBITDA excludes the impact of McEwen Copper’s results and reflects the earnings of our operating properties, including the San José mine(1). |
| ● | Fox Complex unit costs: Cash costs(2) and AISC(2) per GEO sold in Q3/25 were $2,132 and $2,352, respectively. 9M/25 cash costs and AISC per GEO sold were $2,138 and $2,473, respectively. While unit costs have decreased in Q3 driven by higher production, this has been slightly offset by higher contractor labour costs and Froome West development costs. Our restated cost guidance is as follows: cash costs per ounce of $2,000 to $2,100, and AISC per ounce of $2,300 to $2,400. |
| ● | Gold Bar Mine Complex unit costs: Cash costs(2) and AISC(2) per GEO sold in Q3/25 were $2,540 and $2,852, respectively. 9M/25 cash costs and AISC per GEO sold were $1,805 and $2,286, respectively. Unit costs increases have primarily been driven by production shortfalls, and our restated cost guidance is as follows: cash costs per ounce of $2,050 to $2,150, and AISC per ounce of $2,400 to $2,500. |
| ● | San José unit costs: Cash costs(2) and AISC(2) per GEO sold in Q3/25 were $2,196 and $2,771, respectively. Cash costs and AISC per GEO sold during 9M/25 were $2,355 and $2,881, respectively. Unit costs are expected to continue to be impacted by the strong Argentine peso during the remainder of 2025, and we reiterate revised cost guidance of $1,900 to $2,050 cash costs and $2,200 to $2,350 AISC, respectively. |
Exploration Highlights
| ● | During 2025, McEwen Copper invested $39.9 million to complete the Feasibility Study for the Los Azules copper project, the results of which were published on October 7, 2025. The study marked a key technical milestone, establishing proven and probable copper reserves of 10.2 billion pounds. The project design emphasizes environmental sustainability, incorporating renewable energy sources and milling methods that reduce water usage. |
| ● | We completed 65,000 feet (20,000 meters) of drilling at our Grey Fox deposit during Q3/25 to support the development of a resource estimate. This estimate will form the basis of ongoing technical studies for a pre-feasibility report, scheduled for publication in H1/26. Preliminary technical evaluations, including trade-off analyses and mine design studies, indicate that Grey Fox is a robust and economically resilient asset with an anticipated mine life capable of supporting the growth of the Fox Complex. |
| ● | We incurred $3.8 million in exploration expenses at the Gold Bar Mine Complex during Q3/25, primarily designed to explore the resource potential of Windfall, Lookout Mountain, and Seven Troughs properties, in addition to Gold Bar South targets identified earlier in the year. At Windfall, exploration activities revealed multiple high-grade intercepts, including the discovery of a high-grade zone in the footwall. Notable results include 2.4 g/t over 74.7 meters and, within, 12.8 g/t gold over 7.6 meters. Resource modelling efforts continued based on newly received Lookout Mountain assays, while drilling continued at key Seven Troughs targets. |
(1) At our 49% attributable interest.
(2) T**his is a Non-GAAP financial performance measure. See “Non-GAAP Financial Performance Measures” beginning on page 40.
