McEwen Mining Inc. Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Acquisition of Canadian Gold Corp: Set to close in January 2026. An updated resource estimate is expected end of February 2026, to be part of a preliminary economic assessment. Exploration is ongoing with drilling on the main zone and recently acquired ground west of Tartan.
• Los Azules Copper Project: Accepted into Argentina's large-scale investment incentive program, collaborated with IFC, published NI 43-101 feasibility study. Detailed engineering to commence, targeting construction late 2026/early 2027. 8 significant targets identified with exploration ongoing.
• Financials: Net loss of $0.5 million in Q3 2025, adjusted EBITDA $11.8 million. Capital needs in 2026 include finishing stock ramp, heap leach pad expansion at Gold Bar, and El Gallo Phase 1 with ~$25 million CapEx, utilizing existing treasury and cash flows, and possibly gold prepay for El Gallo.
• Operations: Froome mine had Q3 issues but Froome West deposit is kicking in, Stock ramp development on schedule, Gold Bar had Q3 challenges but Q4 is back to normal, and exploration success at sites like Seven Troughs in Nevada and Grey Fox in Timmins.

Segment Performance

• Copper (Los Azules): The NI 43-101 feasibility study published in October 2025 projects 204,000 tonnes of pure copper per year in the first 5 years, with a $2.9 billion after-tax NPV at 8%, 19.8% after-tax IRR, 3.9-year payback, C1 cash cost of $1.71 per pound, and all-in sustaining cost of $2.11 per pound, using a $4.35 per pound copper price assumption. Specific revenue contribution percentage not explicitly stated in absolute terms.
• Gold Operations: Reported a net loss of $0.5 million or $0.01 per share in Q3 2025, with adjusted EBITDA of $11.8 million. Ended the quarter with $51 million in cash and $24 million in marketable securities. Froome mine had challenges in Q3 but Froome West deposit is kicking in, Gold Bar had Q3 challenges but Q4 is looking good, and Grey Fox area in Timmins has a preliminary economic assessment expected in Q1 2026.

Guidance

• Production: Aim to deliver 250,000 to 300,000 gold equivalent ounces of annual production by 2030, with Los Azules expected to produce over 450 million pounds of copper per year in the first 5 years.
• Capital Projects: Expect to finish stock ramp by end of 2026, complete heap leach pad expansion at Gold Bar, and undertake El Gallo Phase 1 with $25 million CapEx, using existing treasury and cash flows.
• Acquisition: Canadian Gold Corp acquisition set to close in January 2026, with a preliminary economic assessment (PEA) expected in fourth quarter 2027.

Risks

• Technical Difficulties: Experienced during the call, causing a brief interruption.
• Permitting Uncertainty: For projects like Phoenix, timing of permits is unknown but optimistic about getting them in time.
• Mine Life Issues: Froome mine had issues due to end of mine life, but Froome West deposit is kicking in.
• Market and Input Risks: Competition for inputs, delays in decision points, and need for technology to compress time in the industry.

Question and Answer

• Q: Comment on vertical integration and potential for more like Paragon Geochemical Labs? **A: Paragon's photo assay technology is disruptive, will look for other opportunities to accelerate industry knowledge.
• Q: Gold Bar production lower than expected, impact? **A: Temporary issue due to unmineralized material in mining zone, now back to normal ore.
• Q: Timeline for Canadian Gold Corp merger and PEA? **A: Shareholder vote in December, court ratification in early January, PEA expected in fourth quarter 2027.
• Q: IPO for Los Azules? **A: Hoping to go public next year, feasibility study out in October, market not ready for Q4 IPO, expecting higher price at public offering.