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Mar 31
McEwen Mining Q1 2025 Earnings Report
McEwen Mining reported a decrease in revenue and a reduced net loss for Q1 2025, driven by higher realized gold prices despite lower gold equivalent ounces sold.
Key Takeaways
McEwen Mining Inc. experienced a decrease in revenue to $35.7 million in Q1 2025 from $41.2 million in Q1 2024, primarily due to a 34% decrease in gold equivalent ounces sold, partially offset by a 31% increase in realized gold prices. The company significantly reduced its net loss to $6.3 million in Q1 2025 from $20.4 million in Q1 2024, largely due to lower expenditures at McEwen Copper Inc. and higher gross profit.
Revenue from gold and silver sales decreased by 13% to $35.7 million in Q1 2025, primarily due to a 34% decrease in GEOs sold, offset by a 31% increase in realized gold prices.
Net loss significantly improved to $6.3 million ($0.12 per share) in Q1 2025, compared to $20.4 million ($0.41 per share) in Q1 2024, mainly due to lower McEwen Copper Inc. expenditures and higher gross profit.
Gross profit increased to $10.1 million in Q1 2025 from $6.0 million in Q1 2024, driven by a 31% higher average realized gold price.
Cash and cash equivalents increased by $55.0 million to $72.5 million as of March 31, 2025, primarily due to proceeds from the issuance of Senior Convertible Notes.
McEwen Mining
McEwen Mining
McEwen Mining Revenue by Segment
McEwen Mining Revenue by Geographic Location
Revenue by Segment
Gold Bar Mine Revenue
CapyFin.comFox Complex Revenue
CapyFin.comMinera Santa Cruz S.A. Revenue
CapyFin.comRevenue by Geographic Location
USA Revenue
CapyFin.comCanada Revenue
CapyFin.com Forward Guidance
McEwen Mining expects higher production across its operations for the remainder of 2025, aiming to meet its annual production guidance of 120,000 to 140,000 GEOs. The company is also advancing its Los Azules copper project towards feasibility and expects unit costs to decrease as production improves.
Positive Outlook
- Annual production guidance of 120,000 to 140,000 GEOs for 2025 is on track.
- Gold Bar Mine production is expected to increase steadily through the remainder of the year as pre-stripping activities wind down and production begins at Pick III.
- San José mine plans to increase plant throughput beginning April 2025, supported by recent mill improvements.
- Los Azules copper project is advancing to feasibility, with the study expected to be published in summer 2025.
- The Los Azules project, if RIGI approved, is expected to receive significant fiscal and regulatory benefits, including tax reductions and export duty exemptions.
Challenges Ahead
- Fox Complex production was below expectations in Q1/25 due to adverse winter conditions and labor challenges.
- San José mine experienced lower processed grades and recovery rates in Q1/25 due to elevated clay content.
- Higher unit costs at San José in Q1/25 were primarily due to relative strength in the Argentine peso and lower GEOs sold.
- The Fenix Project's decision to proceed with construction remains under review, pending key permits.
- The company's ability to meet future funding requirements may be impacted by volatility in equity security prices.
Revenue & Expenses
Visualization of income flow from segment revenue to net income