McEwen Mining Reports Q1 2025 Revenue of $35.7 Million, Production Decline

McEwen Mining Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $35.7 million from gold and silver sales, a decrease of 13% from $41.2 million in the same period last year. The company produced 24,132 gold equivalent ounces (GEOs) during the quarter, down from 33,037 GEOs in Q1 2024. The average realized price per GEO increased significantly to $2,803, compared to $2,131 in the prior year, contributing to a gross profit of $10.1 million, up from $6.0 million in Q1 2024. Despite the revenue decline, the net loss narrowed to $6.3 million, or $0.12 per share, from a loss of $20.4 million, or $0.41 per share, in the previous year.

The company's operational performance showed a notable reduction in production costs, which fell by 22% to $19.6 million, primarily due to lower GEOs produced and sold. McEwen Mining's investment in McEwen Copper Inc. resulted in a loss of $8.6 million, a significant decrease from the $18.0 million loss reported in Q1 2024. This reduction was attributed to lower expenditures at McEwen Copper, which positively impacted the overall financial results. Additionally, the company recorded an income of $0.5 million from its investment in Minera Santa Cruz S.A., down from $1.3 million in the previous year.

Strategically, McEwen Mining made several significant moves during the quarter, including the issuance of $110 million in convertible senior unsecured notes due in 2030. The net proceeds from this offering, approximately $90.7 million after costs, are expected to support ongoing operations and capital expenditures. The company also participated in private placements, acquiring shares in Goliath Resources Limited and Canadian Gold Corp, further diversifying its investment portfolio. Additionally, McEwen Copper applied for admission into Argentina’s Large Investment Incentive Regime, which could provide substantial fiscal benefits for its Los Azules copper project.

Operationally, the company faced challenges at its Fox Complex and Gold Bar Mine, with production impacted by adverse weather conditions and labor challenges. The Gold Bar Mine produced 7,688 GEOs, a decrease from 11,716 GEOs in Q1 2024, while the Fox Complex produced 5,520 GEOs, down from 7,486 GEOs. The San José Mine, in which McEwen holds a 49% interest, produced 22,294 GEOs, a decline from 26,396 GEOs in the previous year. The company remains committed to meeting its annual production guidance of 120,000 to 140,000 GEOs for 2025.

Looking ahead, McEwen Mining anticipates improved production as it continues to address operational challenges and advance its projects. The company expects to benefit from higher production rates in the latter half of the year, supported by ongoing investments in its mining operations and strategic initiatives aimed at enhancing operational efficiency. The management remains optimistic about the potential for increased revenues driven by higher gold and silver prices, alongside a focus on cost management and operational improvements.