McEwen Mining Inc

Fox Complex

The following table summarizes the operating results for the Fox Complex for the three and six months ended June 30, 2024, and 2023:

Q2/24 compared to Q2/23

The Fox Complex produced 8,297 GEOs from the Froome mine in Q2/24, which represented a 20% decrease from the 10,351 GEOs produced in Q2/23. Due to development delays occurring in Q1/24 and early Q2/24 that reduced access to available stopes and resulted in a lower volume of mined material during the quarter, we processed low-grade stockpile inventory to maintain steady mill throughput. As a result, we realized a 14% decline in average head grades processed. We have engaged a mining contractor to address development concerns at the end of Q2/24 and expect to improve mining production in H2/24 accordingly.

Revenue from gold saleswas $17.8 million in Q2/24, or a decrease of $0.6 million compared to $18.4 million in Q2/23. The decrease is attributable to the reduced number of GEOs sold during Q2/24 as described previously. This was partially offset by an increase in the average realized gold price from $1,951 per GEO in Q2/23 to $2,355 per GEO in Q2/24. Realized gold prices at the Fox Complex are impacted by historic streaming arrangements, which require the sale of a portion of gold produced from the Froome mine at lower than market prices, or $601 per ounce as of Q2/24.

Production costs applicable to sales were $12.9 million, which increased in Q2/24 by $0.4 million from $12.5 million in Q2/23, driven by the processing of higher cost stockpiled material. This increase in costs was offset by reduced contractor costs for crushing activities.

Cash costs andAISC per GEO sold were $1,588 and $1,857 in Q2/24, respectively, compared to $1,237 and $1,371 in Q2/23, respectively. The increase in unit costs was driven primarily by lower GEOs sold as described above.