Q2/25 OPERATING AND FINANCIAL HIGHLIGHTS
Highlights for Q2/25 are summarized below and discussed further under “Consolidated Performance”:
Corporate Developments
| ● | On July 2, 2025, the Company entered into a milling agreement with Inventus Mining Corp. (TSX-V: IVS) for the processing of up to 45,000 tonnes of bulk sample material from Inventus’s 100%-owned Pardo Gold Project. This agreement allows the Company to utilize available milling capacity and maintain stable mill throughput as we transition mining operations to Froome West and Stock. |
| ● | On July 27, 2025, the Company entered into a binding letter of intent in respect of a proposed transaction to acquire all of the issued and outstanding securities of Canadian Gold Corp (TSX-V: CGC) (“Canadian Gold”) by way of plan of arrangement. Canadian Gold shareholders will have the right to receive 0.0225 of a share of the Company’s common stock for each share of Canadian Gold’s common stock. |
Operational Highlights
| ● | Q2/25 consolidated production of 27,554 GEOs, compared to 35,265 GEOs produced in Q2/24. During H1/25, we produced 51,685 GEOs, including 24,643 attributable GEOs from the San José mine(1). Our annual plans include higher production across our operations through the remainder of the year, and we remain on track to deliver 2025 production guidance of 120,000 to 140,000 GEOs. |
| ● | Q2/25 consolidated sales of 28,039 GEOs, compared to 35,182 GEOs sold in Q2/24. During H1/25, we sold 51,854 GEOs, including 24,258 attributable GEOs from the San José mine(1). |
| ● | Fox Complex operational developments include an investment of approximately $5.6 million in our Stock project, which allowed for the completion of the mine portal and initiation of ramp access development, targeting commercial production in 2026. At the Froome mine, production totaled 5,429 GEOs during Q2/25, representing a 35% decrease compared to 8,297 GEOs produced during Q2/24 as mining continues in the lower-grade zones at the bottom of the deposit. For H1/25, Froome produced a total of 10,948 GEOs, compared to annual production guidance of 30,000 to 35,000 GEOs. While Froome production has been planned to increase in the latter half of the year, we are assessing early opportunities for ore at Froome West and Stock as well to derisk the mine plan. |
| ● | At the Gold Bar Mine, we produced 8,405 GEOs during Q2/25, representing a 32% decrease compared to Q2/24, with total production of 16,091 GEOs for H1/25. The decrease in production was primarily due to lower mined and stacked tonnes. 2025 mining operations are focused on the Pick III deposit, which has a higher strip ratio than deposits mined in prior year. Higher production is expected in the second half of 2025 as planned stripping activities reduce and the operation shifts to ore extraction. As a result, the Gold Bar Mine remains on track to achieve its annual production guidance of 40,000 to 45,000 GEOs. |
| ● | At the San José Mine, Q2/25 production of 13,719 attributable GEOs(1) decreased by 6% compared to 14,672 attributable GEOs during Q2/24. The decrease was primarily due to lower processed grades and reduced recovery rates compared to the prior year. With 24,643 attributable GEOs produced in H1/25, the Company reiterates its full-year production guidance of 50,000 to 60,000 attributable GEOs for San José. |
| ● | Work continues towards feasibility at the Los Azules copper project. During H1/25, McEwen Copper completed the final drilling activities required to support the Los Azules feasibility study. The data collected will be used to refine the geotechnical characterization of the deposit and finalize both the mine plan and production schedule. Feasibility study is expected to be published in Q3/25. |
| ● | We continued to meet safety expectations at our 100% owned operating mines. During Q2/25, we did not have any lost-time incidents at the Fox Complex or the Gold Bar Mine. |
Financial Highlights
| ● | Q2/25 revenues of $46.7 million were recognized from the sale of 14,549 GEOs from our 100% owned operations at an average realized price(2) of $3,298 per GEO. This compares to Q2/24 revenues of $47.5 million from the sale of 20,630 GEOs at a realized price of $2,355 per GEO. |
| ● | We reported gross profit of $12.3 million in Q2/25 compared to $10.8 million in Q2/24. This increase was primarily driven by a 14% lower production costs applicable to sales. |
| ● | Net income for Q2/25 was $3.0 million, or $0.06 per share, compared to a net loss of $13.0 million for Q2/24, or $0.26 per share. The improvement was primarily driven by lower expenditures at McEwen Copper Inc., reducing our portion of its recognized loss from $16.8 million in Q2/24 to $7.0 million in Q2/25, and a $6.5 million unrealized gain on our investments in marketable securities, as well as higher gross profit discussed above. |
| ● | Adjusted EBITDA(2) for Q2/25 was $17.3 million, or $0.32 per share, compared to Q2/24 adjusted EBITDA of $7.2 million, or $0.15 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 Q2/25 were $2,212 and $2,563, respectively. H1/25 cash costs and AISC per GEO sold were $2,142 and $2,534, respectively, as compared to annual guidance ranges of $1,600 to $1,800 and $1,700 to $1,900, respectively. Unit costs are expected to decrease through the year as production increases as planned during H2/25. |
| ● | Gold Bar unit costs: Cash costs(2) and AISC(2) per GEO sold in Q2/25 were $1,679 and $1,792, respectively. H1/25 cash costs and AISC per GEO sold were $1,419 and $1,986, respectively, as compared to annual guidance of $1,500 to $1,700 and $1,700 to $1,900, respectively. The Company expects unit costs to move toward the lower end of the guidance range beginning in mid-Q3/25, when the high-stripping phase at Pick III is anticipated to be completed and more ounces are recovered. |
| ● | San José unit costs: Cash costs(2) and AISC(2) per GEO sold in Q2/25 were $2,310 and $2,842, respectively. H1/25 cash costs and AISC per GEO sold were $2,428 and $2,933, respectively, as compared to full year guidance of $1,600 to $1,800 and $1,900 to $2,100, respectively. As higher planned production is achieved through the remainder of 2025, we expect San José to decrease its unit costs. |
Exploration Highlights
| ● | During the H1/2025, McEwen Copper invested $33.5 million to advance its feasibility study on Los Azules. Including amounts spent by Minera Andes Inc. prior to 2012, and McEwen Mining prior to 2021, we have invested over $420 million to develop Los Azules as a world-class copper deposit. |
| ● | We discovered new high-grade mineralization approximately 650 feet (200 meters) west of the Froome Mine at the Fox Complex (“Froome West”), highlighted by an intercept of 36.0 g/t gold over 10 meters. This discovery is expected to extend Froome’s mine life and supports further resource expansion in the area. Total exploration expenditures for Q2/25 were $2.9 million, which also included 67,000 feet (20,000 meters) of diamond drilling at Grey Fox, primarily focused on the Gibson Zone. |
| ● | We incurred $1.2 million in exploration expenses at the Gold Bar Mine during Q2/25, primarily designed to explore the resource potential of the Jug Handle target within the Gold Bar South deposit, as well as at Taurus and North Hunter target areas. At our Timberline properties, we invested $1.3 million in infill drilling and advancing geological understanding of the Windfall and Lookout Mountain deposits. |
(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 37.
