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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):        November 8, 2023

 

McEWEN MINING INC.

(Exact name of registrant as specified in its charter)

 

Colorado   001-33190   84-0796160
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

 

150 King Street West, Suite 2800

Toronto, Ontario, Canada

M5H 1J9
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number including area code:       (866) 441-0690

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   MUX   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 2.02Results of Operations and Financial Condition.

 

On November 8, 2023, McEwen Mining Inc. (the “Company”) issued a press release summarizing its third quarter and nine month results for the period ended September 30, 2023, and announcing the quarter-end conference call and webcast to discuss those results. A copy of that press release is furnished with this report as Exhibit 99.1.

 

The information furnished under this Item 2.02, including the referenced exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by reference to such filing.

 

Item 9.01Financial Statements and Exhibits.

 

(d)            Exhibits. The following exhibits are furnished or filed with this report, as applicable:

 

99.1Press release dated November 8, 2023

 

104Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101)

 

Cautionary Statement

 

With the exception of historical matters, the matters discussed in the press release include forward-looking statements within the meaning of applicable securities laws that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained therein. Such forward-looking statements include, among others, statements regarding future production and cost estimates, exploration, development, construction and production activities. Factors that could cause actual results to differ materially from projections or estimates include, among others, future drilling results, metal prices, economic and market conditions, operating costs, receipt of permits, and receipt of working capital, as well as other factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and other filings with the United States Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made in the press release, whether as a result of new information, future events, or otherwise. Readers are cautioned not to put undue reliance on forward-looking statements.

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  McEWEN MINING INC.
   
     
Date: November 13, 2023 By: /s/ Carmen Diges
    Carmen Diges, General Counsel

 

 

Exhibit 99.1

 

 

 

MCEWEN MINING: Q3 2023 RESULTS

 

TORONTO, Nov 8th, 2023 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports its results for the third quarter (Q3) and nine months ended September 30th, 2023.

 

Operational and Financial Highlights

 

·Consolidated GEO production in Q3 improved by 8% compared to both Q2/23 and Q3/22. We produced 38,500 GEOs(1) in Q3, and 104,400 GEOs for the nine months ended September 30th. We reiterate our consolidated production guidance is at the lower end of our range of 150,000 to 170,000 GEOs for the year (see Table 1).

 

·We continue to meet safety standards at our 100% owned operations. During Q3, we had no lost-time incidents at our Fox Complex, Gold Bar Mine, and El Gallo operations.

 

·In Q3, our Fox Mine Complex performed well, producing 11,200 ounces (oz) gold and remains on track to meet guidance of 42,000 to 48,000 oz gold for the year. Cash costs(4) and AISC per GEO(4) sold for the Fox Complex were $1,078 and $1,288, respectively. We expect annual cash costs(4) per GEO(4) sold to be 10% above of our 2023 guidance. Figure 1 highlights the turnaround in production at Fox that has occurred since 2021.

 

·In Q3, the Gold Bar Mine produced 9,500 oz of gold, an increase of 20% compared to Q2/23. Production continues to increase quarterly, though delays from extreme weather and labor constraints during 2023 have impacted our annual outlook. We now expect production from Gold Bar to be between 36,500 to 40,000 oz gold. Cash costs(4) and AISC per GEO(4) sold for the Gold Bar mine were $1,529 and $2,160, respectively. AISC was affected by a $4.5 million sustaining capital investment in a heap leach pad expansion, which was substantially completed during the quarter. Additional mining crews and the completion of our heap leach expansion are expected to result in increased production in Q4/23 (see Figure 2), allowing Gold Bar to quickly realize recoveries on material stockpiled during the last quarter. While this should reduce costs per ounce in the fourth quarter, we still expect the average costs for the year to be 10% to 15% higher than our 2023 guidance.

 

·In Q3, the San José Mine produced 17,800 GEOs, an increase of 3% compared to Q2/23 due to a modest improvement in processed tonnes. Our joint venture partner and mine operator, Hochschild Mining, reiterates production guidance of 66,000 to 74,000 GEOs for the year. Cash costs(4) and AISC per GEO(4) sold for San José were $1,445 and $1,953, respectively. We expect costs to remain approximately 15% above 2023 guidance due to additional capital development costs associated with the operator’s revised mine plan.

 

·We continue to advance our exploration program at Los Azules aiming to deliver all information required for the feasibility study. During Q3, we completed planning and preparation work for the 2023-2024 drilling campaign, which has a target of 157,000 feet (48,000 meters) and includes additional exploration, infill, geotech, hydrological and hydrogeological drilling. 14 out of a total of 18 to 20 planned drill rigs are currently operating and we have drilled 19,600 feet (6,000 meters) to date. We invested $18.5 million in our Los Azules copper project during Q3 primarily to build a winter camp, further improve our road access, and to construct a logistics facility in San Juan.

 

 

 

McEwen Mining Inc.Page 1 

 

 

 

 

·Subsequent to the quarter end, McEwen Copper closed financings with Stellantis and Nuton, a Rio Tinto Venture, raising ARS$42 billion (Argentine Pesos) and $10.0 million, respectively, at a price of $26 per share, which implies a market value of $800.0 million for McEwen Copper. As part of these private placements, McEwen Mining received $6.0 million from the sale of 232,000 McEwen Copper common shares. McEwen Copper’s share ownership structure is now: McEwen Mining 47.7%, Stellantis 19.4%, Nuton 14.5%, Rob McEwen 12.9% and 5.5% other shareholders. The implied market value represents a value accretion of $207 million for McEwen Mining (from $175 million to $382 million of implied ownership value), representing a value of $7.48 per fully diluted McEwen Mining share.

 

·Consolidated cash and cash equivalents were $49.1 million (of which $47.5 million is to be used towards advancing the Los Azules copper project) and consolidated working capital $72.3 million as of September 30, 2023. We also reported investments of $40.8 million, which consist of liquid securities held in Argentina to mitigate inflation and devaluation risks.

 

·In Q3, we reported a gross profit of $3.8 million and cash gross profit(4) of $11.9 million from our 100% owned precious metal operations, compared to a gross profit of $1.5 million and cash gross profit(4) of $5.8 million in Q3/22. Higher revenues driven by a 34% increase in GEOs sold and a 10% increase in realized gold prices led to improvements in gross profit and cash gross profit(4). Including our 49% ownership of the San José Mine, we reported a total cash gross profit(4) of $22.3 million compared with a total cash gross profit(4) of $13.8 million in Q3/22.

 

·In Q3, we reported a net loss of $18.5 million, or $0.39 per share, compared to a net loss of $10.5 million, or $0.21 per share in Q3/22. Compared to our gross profit, our net loss was the result of higher year-over-year exploration and advanced project expenditures, including an $18.5 million investment in exploration activities at our Los Azules copper project.

 

·In Q3, we reported an adjusted net loss(4) of $4.2 million compared to an adjusted net income(4) of $6.4 million in Q3/22. Adjusted net loss(4) excludes the expenses of McEwen Copper and our interest in the San José mine, a metric that we believe best represents the results of our 100% owned precious metal operations. Compared to our cash gross profit(4) of $11.9 million, the adjusted net loss(4) includes $6.6 million in exploration and advanced project expenditures at our Fox Complex, Gold Bar mine and Fenix Project operations, $8.5 million in non-cash depreciation, and $3.7 million in general and administrative expenses.

 

·Revenues of $38.4 million were reported from the sale of 20,620 GEOs from our 100% owned operations at an average realized price(4) of $1,920 per GEO. Including our 49% ownership of San José Mine, Q3 revenue would have increased by $31.6 million. This compares to Q3/22 revenues of $26.0 million from the sale of 15,400 GEOs from our 100% owned operations at a realized price of $1,742 per GEO. Including our 49% ownership of San José Mine, Q3/22 revenue would have increased by $32.0 million.

 

·It is important to note that because of the recent McEwen Copper financing, MUX’s ownership in McEwen Copper is below 50%, and we expect to no longer consolidate the financials of McEwen Copper. From Q4/23 onward we expect to begin to account for McEwen Copper as an equity investment. The Company expects to conclude soon on the accounting impacts of our recent financing. The resulting impact on our financials on a go-forward basis, should McEwen Copper be deconsolidated, will be noticeable. Specifically, the carrying value of our investment in McEwen Copper ownership may increase significantly in line with the recent financings, and we expect that our cash and liquid assets and expenses will decline markedly.

 

 

 

McEwen Mining Inc.Page 2 

 

 

 

Webcast

 

A webcast will be held on Thursday, November 9th, 2023 at 11:00 AM EST, where management will discuss our financial results and project developments and follow with a question-and-answer session. Questions for the call can be emailed in advance to info@mcewenmining.com, or can be asked directly by participants over the phone during the webcast.

 

Q3 Results Conference Call - Thursday, November 9th, 2023, at 11:00 AM EST
Calling in: Participant Toll-Free Dial-In Number: (888) 210-3454
Participant Toll Dial-In Number: (646) 960-0130
Conference ID: 3232920

 

Webcast Registration Link:

 

 

 

https://events.q4inc.com/attendee/253960288

 

 

An archived replay of the webcast will be available approximately 2 hours following the conclusion of the live event. Access the replay on the Company’s media page at https://www.mcewenmining.com/media.

 

Table 1 below provides production and cost results for Q3 & 9M 2023 with comparative results for Q3 & 9M 2022 and our Forecast and Guidance for 2023. Our Forecast for 2023 reflects production to September 30th and management's current estimates for Q4 2023.

 

  Q3 9M

2023

Forecast(3)

2023
Guidance
2022 2023 2022 2023
Consolidated Production          
Gold (oz) 26,200 31,500 74,650 86,000 124,300-127,800 123,000-139,000
Silver (oz) 853,000 580,200 1,894,100 1,531,200 2,300,000 2.3M-2.6M
GEOs(1)(4) 35,700 38,500 97,000 104,400 152,300-155,800 150,000-170,000
Gold Bar Mine, Nevada          
GEOs(1)(4) 7,200 9,500 18,600 23,800 36,500-40,000 42,000-48,000
Cash Costs per GEO Sold(4) 1,712 1,529 1,859 1,743 1,600 1,400
AISC per GEO Sold(4) 2,049 2,160 2,251 2,203 1,900 1,680
Fox Complex, Canada          
GEOs(1)(4) 9,000 11,200 27,900 34,200 45,500 42,000-48,000
Cash Costs per GEO Sold(4) 774 1,078 978 1,129 1,100 1,000
AISC per GEO Sold(4) 1.308 1,288 1,415 1,321 1,330 1,320
San José Mine, Argentina (49%)(2)          
Gold Production 9,900 10,800 27,400 28,000 40,000 39,000-43,000

Silver Production

 

852,200 580,200 1,892,400 1,531,200 2,300,000 2.3M-2.6M

GEOs(1)(4)

 

19,300 17,800 49,700 46,400 68,000 66,000-74,000
Cash Costs per GEO Sold(4) 1,223 1,445 1,300 1,505 1,450 1,250
AISC per GEO Sold(4) 1,562 1,953 1,718 1,971 1,800 1,550

 

  Notes:

(1)Gold Equivalent Ounces (GEOs) are calculated based on a gold-to-silver price ratio of 90:1 for Q3 2022, 83:1 for 9M 2023, 82:1 for Q3 2022, and 83:1 for 9M 2022. 2023 production guidance is calculated based on an 85:1 gold-to-silver price ratio.
(2)The San José Mine is 49% owned by McEwen Mining Inc. and 51% owned and operated by Hochschild Mining plc. Production is shown on a 49% basis.
(3)El Gallo Mine (on care and maintenance) is expected to recover 2,300 oz gold in 2023 from plant and pond cleanout.
(4)See disclosure below about Non-GAAP Financial Performance Measures used in this release.
(5)Production figures may not add due to rounding.

 

 

 

McEwen Mining Inc.Page 3 

 

 

 

Figure 1 below shows the Fox Mine Complex actual annual production 2018-2022 and the 2023 forecast.

 

 

 

Figure 2 below shows Gold Bar Mine’s daily ounces processed through the process plant from Jan 1, 2023 to Oct 31, 2023.

 

 

 

 

 

McEwen Mining Inc.Page 4 

 

 

 

For the SEC Form 10-Q Financial Statements and MD&A refer to: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000314203

 

Technical Information

 

The technical content of this news release related to financial results, mining and development projects has been reviewed and approved by William (Bill) Shaver, P.Eng., COO of McEwen Mining and a Qualified Person as defined by SEC S-K 1300 and the Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects."

 

Reliability of Information Regarding San José

 

Minera Santa Cruz S.A. (“MSC”), the owner of the San José Mine, is responsible for and has supplied to the Company all reported results from the San José Mine. McEwen Mining's joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.

 

NON-GAAP FINANCIAL PERFORMANCE MEASURES

 

We have included in this report certain non-GAAP financial performance measures as detailed below. In the gold mining industry, these are common performance measures but do not have any standardized meaning and are considered non-GAAP measures. We use these measures in evaluating our business and believe that, in addition to conventional measures prepared in accordance with GAAP, certain investors use such non-GAAP measures to evaluate our performance and ability to generate cash flow. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. There are limitations associated with the use of such non-GAAP measures. We compensate for these limitations by relying primarily on our U.S. GAAP results and using the non-GAAP measures supplementally. We do not provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures on a forward-looking basis because we are unable to predict items contained in the GAAP financial measures without unreasonable efforts.

 

The non-GAAP measures are presented for our wholly-owned mines and the San José mine. The GAAP information used for the reconciliation to the non-GAAP measures for the San José mine may be found in Note 9, Investment in Minera Santa Cruz S.A. (“MSC”) – San José Mine. The amounts in the tables labeled “49% basis” were derived by applying to each financial statement line item the ownership percentage interest used to arrive at our share of net income or loss during the period when applying the equity method of accounting. We do not control the interest in or operations of MSC and the presentations of assets and liabilities and revenues and expenses of MSC do not represent our legal claim to such items. The amount of cash we receive is based upon specific provisions of the Option and Joint Venture Agreement and varies depending on factors including the profitability of the operations.

 

The presentation of these measures, including those for MSC, has limitations as an analytical tool. Some of these limitations include:

 

·The amounts shown on MSC’s individual line items do not represent our legal claim to its assets and liabilities, or the revenues and expenses; and

 

·Other companies in our industry may calculate their cash gross profit, cash costs, cash cost per ounce, all-in sustaining costs, all-in sustaining cost per ounce, average realized price per ounce, and liquid assets differently than we do, limiting the usefulness as a comparative measure.

 

 

 

McEwen Mining Inc.Page 5 

 

 

 

Adjusted Net Income or Loss and Adjusted Net Income or Loss Per Share

 

Adjusted net income or loss is a non-GAAP financial measure and does not have any standardized meaning. We use adjusted net income to evaluate our operating performance and ability to generate cash flow from our wholly-owned operations in production; we disclose this metric as we believe this measure provides valuable assistance to investors and analysts in evaluating our ability to finance our precious metal operations and capital activities separately from our copper operations. The most directly comparable measure prepared in accordance with GAAP is net income or loss. Adjusted net income is calculated by adding back McEwen Copper and MSC’s income or loss impacts to our consolidated net income or loss.

 

The following tables present a reconciliation of adjusted net income to the most directly comparable GAAP measure, net income:

 

   Three months ended September 30,   Nine months ended September 30, 
   2023   2022   2023   2022 
  (in thousands)   (in thousands) 
Adjusted net income or loss                    
Net loss after income and mining taxes  $(29,661)  $(10,542)  $(109,332)  $(44,012)
Adjusted for:                    
Advanced Projects – McEwen Copper (Note 2)   18,478    7,623    78,883    31,460 
Exploration – McEwen Copper (Note 2)       141    386    629 
General and administrative – McEwen Copper   1,456    3,185    3,026    6,708 
Interest and other finance (income) loss – McEwen Copper   (24,554)   590    (57,937)   476 
Foreign currency loss (gain) – McEwen Copper   25,120    6,118    35,639    (1,577)
Income tax (recovery) expense – McEwen Copper   989    24    (132)   24 
Loss (income) from investment in Minera Santa Cruz S.A. (Note 9)   2,672    (758)   7,047    (2,149)
Adjusted net (loss) income  $(5,500)  $6,380   $(42,419)  $(8,441)
Weighted average shares outstanding (thousands)   47,429    50,778    47,428    48,218 
Adjusted net loss per share  $(0.12)  $0.13   $(0.89)  $(0.18)

 

Cash Gross Profit or Loss

 

Cash gross profit or loss is a non-GAAP financial measure and does not have any standardized meaning. We use cash gross profit to evaluate our operating performance and ability to generate cash flow; we disclose cash gross profit as we believe this measure provides valuable assistance to investors and analysts in evaluating our ability to finance our ongoing business and capital activities. The most directly comparable measure prepared in accordance with GAAP is gross profit or loss. Cash gross profit is calculated by adding back the depreciation and depletion expense to gross profit or loss.

 

The following tables present a reconciliation of cash gross profit or loss to the most directly comparable GAAP measure, gross profit or loss:

 

   Three months ended September 30, 2023   Nine months ended September 30, 2023 
   Gold Bar   Fox Complex   El Gallo   Total(100%
owned)
   Gold Bar   Fox Complex   El Gallo   Total(100%
owned)
 
   (in thousands)   (in thousands) 
Revenue from gold and silver sales  $17,967   $20,259   $178   $38,404   $45,526   $61,847   $178   $107,551 
Less: Production costs applicable to sales   (14,406)   (12,069)       (26,475)   (41,453)   (38,597)       (80,050)
Less: Depreciation and depletion   (2,647)   (5,534)       (8,181)   (7,170)   (16,200)       (23,370)
Gross profit  $914   $2,656   $178   $3,748   $(3,097)  $7,050   $178   $4,131 
Add: Depreciation and depletion   2,647    5,534        8,181    7,170    16,200        23,370 
Cash gross profit  $3,561   $8,190   $178   $11,929   $4,073   $23,250   $178   $27,501 

 

 

 

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   Three months ended September 30, 2022   Nine months ended September 30, 2022 
   Gold Bar   Fox Complex   El Gallo   Total(100%
owned)
   Gold Bar   Fox Complex   El Gallo   Total (100%
owned)
 
   (in thousands)   (in thousands) 
Revenue from gold and silver sales  $12,596   $13,058   $334   $25,988   $34,334   $46,200   $1,643   $82,177 
Less: Production costs applicable to sales   (12,357)   (6,196)   (1,619)   (20,172)   (34,834)   (26,103)   (10,002)   (70,939)
Less: Depreciation and depletion   (1,514)   (2,799)       (4,313)   (3,275)   (8,219)       (11,494)
Gross profit  (loss)  $(1,275)  $4,063   $(1,285)  $1,503   $(3,775)  $11,878   $(8,359)  $(256)
Add: Depreciation and depletion   1,514    2,799        4,313    3,275    8,219        11,494 
Cash gross profit (loss)  $239   $6,862   $(1,285)  $5,816   $(500)  $20,097   $(8,359)  $11,238 

 

   Three months ended September 30,   Nine months ended September 30, 
   2023   2022   2023   2022 
  (in thousands) 
San José mine cash gross profit (100% basis)                    
Revenue from gold and silver sales  $64,495   $65,278   $177,947   $176,808 
Less: Production costs applicable to sales   (43,380)   (48,930)   (131,434)   (130,231)
Less: Depreciation and depletion   (15,190)   (9,376)   (37,783)   (21,629)
Gross profit (loss)  $5,925   $6,972   $8,730   $24,948 
Add: Depreciation and depletion   15,190    9,376    37,783    21,629 
Cash gross profit  $21,115   $16,348   $46,513   $46,577 
Cash gross profit (49% basis)  $10,346   $8,011   $22,791   $22,823 

 

   Three months ended September 30,   Nine months ended September 30, 
   2023   2022   2023   2022 
  (in thousands) 
Total cash gross profit                    
Cash gross profit from 100% owned operations  $11,936   $5,816   $27,508   $11,238 
Cash gross profit from San José mine (49% basis)   10,346    8,011    22,791    22,823 
Total cash gross profit  $22,282   $13,827   $50,299   $34,061 

 

Cash Costs and All-In Sustaining Costs (AISC)

 

The terms cash costs, cash cost per ounce, all-in sustaining costs (“AISC”), and all-in sustaining cost per ounce used in this report are non-GAAP financial measures. We report these measures to provide additional information regarding operational efficiencies on an individual mine basis, and believe these measures used by the mining industry provide investors and analysts with useful information about our underlying costs of operations.

 

Cash costs consist of mining, processing, on-site general and administrative expenses, community and permitting costs related to current operations, royalty costs, refining and treatment charges (for both doré and concentrate products), sales costs, export taxes and operational stripping costs, but exclude depreciation and amortization (non-cash items). The sum of these costs is divided by the corresponding gold equivalent ounces sold to determine a per ounce amount.

 

All-in sustaining costs consist of cash costs (as described above), plus accretion of retirement obligations and amortization of the asset retirement costs related to operating sites, environmental rehabilitation costs for mines with no reserves, sustaining exploration and development costs, sustaining capital expenditures and sustaining lease payments. Our all-in sustaining costs exclude the allocation of corporate general and administrative costs. The following is additional information regarding our all-in sustaining costs:

 

·Sustaining operating costs represent expenditures incurred at current operations that are considered necessary to maintain current annual production at the mine site and include mine development costs and ongoing replacement of mine equipment and other capital facilities. Sustaining capital costs do not include the costs of expanding the project that would result in improved productivity of the existing asset, increased existing capacity or extended useful life.

 

·Sustaining exploration and development costs include expenditures incurred to sustain current operations and to replace reserves and/or resources extracted as part of the ongoing production. Exploration activity performed near-mine (brownfield) or new exploration projects (greenfield) are classified as non-sustaining.

 

 

 

McEwen Mining Inc.Page 7 

 

 

 

 

The sum of all-in sustaining costs is divided by the corresponding gold equivalent ounces sold to determine a per ounce amount.

 

Costs excluded from cash costs and all-in sustaining costs, in addition to depreciation and depletion, are income and mining tax expense, all corporate financing charges, costs related to business combinations, asset acquisitions and asset disposals, impairment charges and any items that are deducted for the purpose of normalizing items.

 

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measure, production costs applicable to sales:

 

   Three months ended September 30, 2023   Nine months ended September 30, 2023 
   Gold Bar   Fox Complex   Total   Gold Bar   Fox Complex   Total 
   (in thousands, except per ounce)   (in thousands, except per ounce) 
Production costs applicable to sales - Cash costs (100% owned)  $14,406   $12,069   $26,475   $41,453   $38,597   $80,050 
In-mine exploration   1,457        1,457    3,054        3,054 
Capitalized underground mine development (sustaining)       2,227    2,227        6,058    6,058 
Capital expenditures on plant and equipment (sustaining)   4,478        4,478    7,655        7,655 
Sustaining leases   8    124    132    237    523    760 
All-in sustaining costs  $20,349   $14,420   $34,770   $52,399   $45,178   $97,577 
Ounces sold, including stream (GEO)(1)   9.4    11.2    20.6    23.8    34.2    58.0 
Cash cost per ounce sold ($/GEO)  $1,529   $1,078   $1,284   $1,743   $1,129   $1,381 
AISC per ounce sold ($/GEO)  $2,160   $1,288   $1,686   $2,203   $1,321   $1,683 

 

   Three months ended September 30, 2022   Nine months ended September 30, 2022 
   Gold Bar   Fox Complex   Total   Gold Bar   Fox Complex   Total 
   (in thousands, except per ounce)   (in thousands, except per ounce) 
Production costs applicable to sales - Cash costs (100% owned)  $12,357   $6,196   $18,553   $34,834   $26,103   $60,937 
Mine site reclamation, accretion and amortization   202        202    1,435        1,435 
In-mine exploration   767        767    2,830        2,830 
Capitalized underground mine development (sustaining)       4,080    4,080        11,130    11,130 
Capital expenditures on plant and equipment (sustaining)   1,012        1,012    1,508        1,508 
Sustaining leases   448    198    646    1,563    509    2,072 
All-in sustaining costs  $14,786   $10,474   $25,260   $42,170   $37,742   $79,912 
Ounces sold, including stream (GEO)(1)   7.2    8.0    15.2    18.7    26.7    45.4 
Cash cost per ounce sold ($/GEO)  $1,712   $774   $1,219   $1,859   $978   $1,342 
AISC per ounce sold ($/GEO)  $2,049   $1,308   $1,659   $2,251   $1,460   $1,760 

 

 

 

McEwen Mining Inc.Page 8 

 

 

 

 

   Three months ended September 30,   Nine months ended September 30, 
   2023   2022   2023   2022 
  (in thousands, except per ounce) 
San José mine cash costs (100% basis)                    
Production costs applicable to sales - Cash costs  $43,380   $48,930   $131,434   $130,231 
Mine site reclamation, accretion and amortization   0    25    386    213 
Site exploration expenses   2,538    1,961    7,336    6,788 
Capitalized underground mine development (sustaining)   11,890    10,051    27,939    27,758 
Less: Depreciation   (909)   (476)   (2,162)   (1,491)
Capital expenditures (sustaining)   1,718    1,998    7,119    8,630 
All-in sustaining costs  $58,617   $62,489   $172,052   $172,130 
Ounces sold (GEO)   30.0    40.0    87.3    100.2 
Cash cost per ounce sold ($/GEO)  $1,445   $1,223   $1,505   $1,300 
AISC per ounce sold ($/GEO)  $1,953   $1,562   $1,971   $1,718 

 

Average Realized Price

 

The term average realized price per ounce used in this report is also a non-GAAP financial measure. We prepare this measure to evaluate our performance against the market (London P.M. Fix). The average realized price for our 100% owned properties is calculated as gross sales of gold and silver, less streaming revenue, divided by the number of net ounces sold in the period, less ounces sold under the streaming agreement.

 

The following table reconciles the average realized prices to the most directly comparable U.S. GAAP measure, revenue from gold and silver sales.

 

   Three months ended September 30,   Nine months ended September 30, 
   2023   2022   2023   2022 
  (in thousands, except per ounce) 
Average realized price - 100% owned                    
Revenue from gold and silver sales  $38,404   $25,988   $107,551   $82,177 
Less: revenue from gold sales, stream   527    426    1,567    1,237 
Revenue from gold and silver sales, excluding stream  $37,877   $25,562   $105,984   $80,940 
GEOs sold   20.6    15.4    58.0    46.3 
Less: gold ounces sold, stream   0.9    0.7    2.7    2.2 
GEOs sold, excluding stream   19.7    14.7    55.3    44.1 
Average realized price per GEO sold, excluding stream  $1,920   $1,742   $1,916   $1,833 

 

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

 

This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this news release, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, effects of the COVID-19 pandemic, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the corporation to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to the calculation of mineral resources and reserves, and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

 

 

 

McEwen Mining Inc.Page 9 

 

 

 

 

The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management of McEwen Mining Inc.

 

ABOUT MCEWEN MINING

 

McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 47.7% of McEwen Copper which owns the large, advanced stage Los Azules copper project in Argentina. The Company’s goal is to improve the productivity and life of its assets with the objective of increasing its share price and providing a yield. Rob McEwen, Chairman and Chief Owner has personally provided the Company with $220 million and takes an annual salary of $1.

 

WEB SITE SOCIAL MEDIA    
www.mcewenmining.com    McEwen Mining
  Facebook: facebook.com/mcewenmining
CONTACT INFORMATION LinkedIn: linkedin.com/company/mcewen-mining-inc- 
  Twitter: twitter.com/mcewenmining
150 King Street West  Instagram:  instagram.com/mcewenmining
Suite 2800, PO Box 24     
Toronto, ON, Canada    McEwen Copper
M5H 1J9 Facebook: facebook.com/ mcewencopper
  LinkedIn: linkedin.com/company/mcewencopper
Relationship with Investors:  Twitter: twitter.com/mcewencopper
(866)-441-0690 Toll free  Instagram:  instagram.com/mcewencopper 
(647)-258-0395    
    Rob McEwen 
Mihaela Iancu ext. 320  Facebook: facebook.com/mcewenrob 
info@mcewenmining.com  LinkedIn: linkedin.com/in/robert-mcewen-646ab24
  Twitter:  twitter.com/robmcewenmux

 

 

 

McEwen Mining Inc.Page 10 

 

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