McEwen Mining Inc

The Minera Santa Cruz Segment is comprised of a 49% interest in the San José mine, located in Santa Cruz, Argentina.

The following table sets out certain operating results for the San José mine for the three and six months ended June 30, 2024, and 2023 on a 100% basis:

(1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 31 for additional information.

The analysis below compares the operating and financial results of MSC on a 100% basis.

Q2/24 compared to Q2/2023

On a 100% basis, the San José mine produced 29,942 GEOs in Q2/24 compared to 35,424 in Q2/23. The decrease in GEOs produced was driven by a 19% and 13% decrease in gold and silver head grades processed, respectively.

Revenue from gold and silver sales was $74.3 million in Q2/24 compared to $67.7 million in Q2/23. The increase was primarily due to a higher average realized gold price per ounce ($2,509/oz gold in Q2/24 compared with $1,966/oz gold in Q2/23).

Production costs applicable to sales were $48.2 million during Q2/24, compared to $46.9 million during Q2/23. The increase in production costs was driven by higher personnel, processing, and mining expenses, primarily due to Argentine inflation pressures and the regulated official exchange rate. Additionally, higher commercial discounts resulting from increased commodity prices contributed to the rise in costs.

Cash costs andAISC per GEO sold were $1,624 and $2,032 in Q2/24, respectively, compared to $1,362 and $1,811 in Q2/23, respectively. The increase in cash costs and AISC per GEO sold primarily resulted from higher production costs and lower GEOs sold as described above.

Investment in MSC

Our 49% attributable share of operations from our investment in MSC in Q2/24 resulted in income of $5.9 million, compared to a loss of $0.9 million in Q2/23.