# McEwen Inc.: Form 10-Q for the period ended Jun 30, 2024

- Company: [McEwen Inc.](/companies/mux.md) (CIK 314203)
- Form: 10-Q
- Filed: 2024-08-07
- Accepted by EDGAR: Aug 7, 2024, 21:25 ET
- Period: 2024-06-30
- Accession: 0001558370-24-011396
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/314203/000155837024011396/mux-20240630x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/314203/000155837024011396/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2024-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-04-01 to 2024-06-30 | $47.5m | us-gaap:Revenues |
| Revenue | 6 months, 2024-01-01 to 2024-06-30 | $88.7m | us-gaap:Revenues |
| Gross profit | 3 months, 2024-04-01 to 2024-06-30 | $10.8m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2024-01-01 to 2024-06-30 | $16.8m | us-gaap:GrossProfit |
| Operating income | 3 months, 2024-04-01 to 2024-06-30 | −$13.9m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2024-01-01 to 2024-06-30 | −$35.9m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2024-04-01 to 2024-06-30 | −$2.4m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2024-01-01 to 2024-06-30 | −$4.9m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-04-01 to 2024-06-30 | −$13.0m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2024-01-01 to 2024-06-30 | −$33.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2024-04-01 to 2024-06-30 | −$0.26 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2024-01-01 to 2024-06-30 | −$0.67 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-04-01 to 2024-06-30 | −$0.26 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2024-01-01 to 2024-06-30 | −$0.67 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-04-01 to 2024-06-30 | 49,718,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2024-01-01 to 2024-06-30 | 49,580,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2024-01-01 to 2024-06-30 | $7.5m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Cash and equivalents | at 2024-06-30 | $40.7m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2024-06-30 | $72.2m | us-gaap:AssetsCurrent |
| Total assets | at 2024-06-30 | $645.1m | us-gaap:Assets |
| Current liabilities | at 2024-06-30 | $43.0m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2024-06-30 | $159.9m | us-gaap:Liabilities |
| Long-term debt | at 2024-06-30 | $40.0m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2024-06-30 | $6.0m | us-gaap:DebtCurrent |
| Shareholders' equity | at 2024-06-30 | $485.2m | us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest |

## Management's discussion and analysis

As filed, 65,143 characters.

In the following discussion, “McEwen Mining,” the “Company,” “we,” “our,” and “us” refer to McEwen Mining Inc. and, as the context requires, its consolidated subsidiaries.

The discussion also analyzes our results of operations for the three and six months ended June 30, 2024 and compares those to the results for the three and six months ended June 30, 2023. Regarding properties or projects that are not in production, we provide some details of our plan of operation. We suggest that you read this discussion in conjunction with MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS and our audited consolidated financial statements contained in our annual report on Form 10-K for the year ended December 31, 2023.

The discussion contains financial performance measures that are not prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP” or “GAAP”). Each of the following is a non-GAAP measure: cash costs, cash costs per ounce, all-in sustaining costs (“AISC”), all-in sustaining cost per ounce, adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), and average realized price per ounce. These non-GAAP measures are used by management in running the business and we believe they provide useful information that can be used by investors to evaluate our performance and our ability to generate cash flows. These measures do not have standardized definitions and should not be relied upon in isolation or as a substitute for measures prepared in accordance with GAAP.

For a reconciliation of these non-GAAP measures to the amounts included in our *Consolidated Statements of Operations and Comprehensive Loss* for the three months ended June 30, 2024, and 2023 and to our *Consolidated Balance Sheets* as of June 30, 2024, and December 31, 2023, and certain limitations inherent in such measures, please see the discussion under “Non-GAAP Financial Performance Measures,” beginning on page 31.

This discussion also includes references to “advanced-stage properties,” which are defined as properties for which advanced studies and reports have been completed indicating the presence of measured, indicated, and inferred resources or proven and probable reserves, or that have obtained or are in the process of obtaining the required permitting. Our designation of certain properties as “advanced-stage properties” should not suggest that we have or ever will have proven or probable reserves at those properties as defined by S-K 1300.

Throughout this Management’s Discussion and Analysis (“MDA”), the reporting periods for the three months ended June 30, 2024, and 2023 are abbreviated as Q2/24 and Q2/23, respectively, and the reporting periods for the six months ended June 30, 2024, and 2023 are abbreviated as H1/24 and H1/23, respectively.

In addition, in this report, gold equivalent ounces (“GEO”) includes gold and silver ounces calculated based on a gold to silver ratio of 81:1 for Q2/24 and 83:1 for Q2/23, which approximates the average price during each fiscal quarter.

### OVERVIEW

The Company was organized under the laws of the State of Colorado on July 24, 1979, and is engaged in the production and sale of gold and silver, as well as the development and exploration of copper, gold, and silver mineral properties across North and South America.

The Company owns a 100% interest in the Gold Bar mine in Nevada, United States, the Fox Complex in Ontario, Canada, the Fenix Project in Sinaloa, Mexico and a portfolio of exploration properties in the United States, Canada, Mexico and Argentina. As of June 30, 2024, the Company also holds a 47.7% interest in McEwen Copper Inc. (“McEwen Copper”), which owns the Los Azules copper project in San Juan, Argentina and the Elder Creek exploration project in Nevada, United States, and a 49.0% interest in Minera Santa Cruz S.A. (“MSC”), which owns the producing San José silver-gold mine in Santa Cruz, Argentina and is operated by MSC’s majority owner, Hochschild Mining plc. The Company reports its investments in McEwen Copper and MSC as equity investments.

In this report, “Au” represents gold; “Ag” represents silver; “oz” represents troy ounce; “t” represents metric tonne; “g/t” represents grams per metric tonne; “ft” represents feet; “m” represents meter; “sq” represents square; C$ refers to Canadian dollars; and ARS refers to Argentine pesos. All of our financial information is reported in United States (U.S.) dollars unless otherwise noted.

### Index to Management’s Discussion and Analysis:

| ​ ​ | ​ |
| --- | ---: |
| Operating and Financial Highlights | 21 |
| Selected Consolidated Financial and Operating Results | 23 |
| Consolidated Performance | 24 |
| Consolidated Operations Review | 24 |
| Liquidity and Capital Resources | 25 |
| Operations Review | 26 |
| United States Segment | 26 |
| Gold Bar mine operating results | 26 |
| Exploration Activities | 27 |
| Canada Segment | 27 |
| Fox Complex operating results | 27 |
| Exploration Activities | 28 |
| Development Activities | 28 |
| Mexico Segment | 28 |
| Advanced-Stage Properties – Fenix Project | 28 |
| Minera Santa Cruz Segment - Argentina | 29 |
| Minera Santa Cruz operating results | 29 |
| McEwen Copper Segment - Argentina | 30 |
| Los Azules Project | 30 |
| Non-GAAP Financial Performance Measures | 31 |
| Critical Accounting Policies | 35 |
| Forward-looking Statements | 35 |
| Risk Factors Impacting Forward-looking Statements | 36 |

### Q2/24 OPERATING AND FINANCIAL HIGHLIGHTS

Highlights for Q2/2024 are summarized below and discussed further under “Consolidated Performance”:

### Corporate Developments

- On April 16, 2024, the Company entered into a definitive agreement to acquire all of the issued and outstanding shares of Timberline Resources Corporation (“Timberline”). Timberline shareholders will have the right to receive 0.01 of a share of the Company’s common stock for each share of Timberline’s common stock. At closing, the Company expects to issue approximately 1.8 million shares. The closing of the transaction is expected to occur by late August 2024, and is subject to customary conditions, including receipt of necessary regulatory and shareholder approvals.
- On June 14, 2024, the Company completed a flow-through share issuance for gross proceeds of $21.9 million. The proceeds will be used for eligible expenditures at the Company’s site in Timmins, Canada, including for exploration drilling and access ramp development. The Company expects to fulfill obligations associated with the most recent tranche of flow-through shares by the end of 2025.
- On June 25, 2024, McEwen Copper announced a private placement financing for up to $70.0 million to advance the Los Azules copper project, including a commitment by McEwen Mining for a $14.0 million investment, and by Rob McEwen, Executive Chairman and Chief Owner, for a $5.0 million investment. Subsequent to quarter end, McEwen Copper issued 466,667 common shares to McEwen Mining for the aforementioned proceeds. McEwen Mining’s ownership of McEwen Copper is currently 48.3%.

### Operational Highlights

- ***Consolidated production of 35,265 GEOs in Q2/24 was comparable to 35,658 GEOs in Q2/23.*** During H1/24, we produced 68,320 GEOs, including 27,605 attributable GEOs from the San José mine(1), and reiterate our consolidated production guidance of 130,000 to 145,000 GEOs for full year 2024, supported by strong production performance from the Gold Bar and San José Mines.
- ***Consolidated sales of 35,182 GEOs in Q2/24 was comparable to 35,051 GEOs in Q2/23.*** During H1/24, we sold 69,589 GEOs, including 29,156 attributable GEOs from the San José mine(1).
- ***At the Fox Complex, we produced 8,297 GEOs during Q2/24***, a 20% decrease compared to 10,351 GEOs produced during Q2/23. Limited access to available stopes due to development delays, resulting in lower mined material, was offset by the processing of our stockpile inventory to maintain mill throughput. During H1/24, we produced 15,800 GEOs at Fox Complex. While we engaged a mining contractor at the end of Q2/24 to address development, we expect annual production to be approximately 15-20% below the low end of annual guidance of 40,000 GEOs.
- ***At the Gold Bar Mine, we produced 12,297 GEOs during Q2/24,*** an increase of 56% compared to Q2/23. Increased mine production from our higher-grade Pick pit enabled higher GEO production from our expanded heap leach facilities. During H1/24, we produced 24,013 GEOs at the Gold Bar Mine and we remain on track to meet, and potentially exceed, annual production guidance of 40,000 to 43,000 GEOs.
- ***At the San José Mine, Q2/24 production decreased by 15% compared to Q2/23.*** San José mine produced 14,672 attributable GEOs(1) during Q2/24 compared to 17,358 attributable GEOs(1) during Q2/23. Production was primarily impacted adversely by lower gold grades processed, slightly offset by higher gold recoveries. With 27,605 attributable GEOs produced in H1/24, San José mine remains on track to meet annual production guidance of 50,000 to 60,000 attributable GEOs(1).
- ***We continued to advance our exploration program at Los Azules to feasibility.*** The Los Azules team concluded their 2023-2024 drilling program in June 2024 at the onset of winter in San Juan, Argentina, drilling over 230,800 feet (70,364 meters), sufficient to complete our planned feasibility study expected to be published in H1/25.
- ***We continued to meet safety expectations at our 100% owned operating mines.*** During H1/24, we did not have any lost-time incidents at our Fox Complex and Gold Bar Mine.

### Financial Highlights

- We reported consolidated cash and cash equivalents of $40.7 million, and consolidated working capital of $29.1 million as at June 30, 2024. (December 31, 2023 – $23.0 million and $22.7 million, respectively).
- Revenue of $47.5 million was reported in Q2/24 from the sale of 20,630 GEOs from our 100% owned operations at an average realized price(2) of $2,355 per GEO. This compares to Q2/23 revenue of $34.4 million from the sale of 18,172 GEOs from our 100% owned operations at a realized price of $1,951 per GEO.
- We reported gross profit of $10.8 million in Q2/24, compared to gross loss of $3.5 million in Q2/23 from our 100% owned operations. Higher revenues, driven by a 21% increase in realized gold prices and a 13% increase in GEOs sold drove improvements in gross profit.
- Net loss for Q2/24 was $13.0 million, or $0.26 per share, compared to a net loss of $21.6 million for Q2/23, or $0.46 per share. Our results improved primarily due to the improvement in gross margin, driven by higher average realized gold prices as discussed above.
- Adjusted EBITDA(2) for Q2/24 was $7.2 million, or $0.15 per share, compared to Q2/23 adjusted EBITDA of negative $5.8 million, or negative $0.12 per share. Adjusted EBITDA excludes the impact of McEwen Copper’s results and reflects the operating earnings of our properties, including the San José mine.
- Cash costs(2) and AISC(2) per GEO sold for the Fox Complex in Q2/24 were $1,588 and $1,874, respectively. H1/24 cash costs and AISC per GEO sold were $1,572 and $1,886, respectively, as compared to annual guidance ranges of $1,225 to $1,325 and $1,450 to $1,550, respectively. Consistent with our outlook on production, we expect that meeting cost guidance will remain challenging.
- Cash costs(2) and AISC(2) per GEO sold for the Gold Bar mine in Q2/24 were $1,532 and $1,634, respectively. H1/24 cash costs and AISC per GEO sold were $1,313 and $1,404, respectively, as compared to annual guidance of $1,450 to $1,550 and $1,650 to $1,750, respectively. Unit costs are expected to rise in the second half of 2024 as stripping costs increase to support production plans in 2025.
- Cash costs(2) and AISC(2) per GEO sold for the San José mine in Q2/24 were $1,624 and $2,032, respectively, as compared to full year guidance of $1,300 to $1,500 and $1,500 to $1,700, respectively. Mining and sustaining exploration costs increased in Q2/24 compared to plan, to address lower than expected mined grades. As planned production improves in H2/24, unit costs are expected to fall accordingly.

### Exploration and Mineral Resources and Reserves

- McEwen Copper invested $37.5 million in exploration expenditures at their Los Azules copper project in Argentina during Q2/24 primarily to complete its 2023 – 2024 drilling program and associated activities. Including amounts spent by Minera Andes Inc. prior to 2012, and McEwen Mining prior to 2021, we have invested over $350.0 million in exploration expenditures to develop Los Azules as a world-class copper deposit.
- We incurred $5.0 million in exploration expenses at our other operations during Q2/24, primarily to advance our Grey Fox project at the Fox Complex and to advance on short and medium term exploration projects at the Gold Bar mine through additional drilling on our Cabin Creek and Gold Bar South pits, among other targets.

#### (1) At our 49% attributable interest.

*(2) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. See “Non-GAAP Financial Performance Measures” beginning on page 31.*

### SELECTED CONSOLIDATED FINANCIAL AND OPERATING RESULTS

The following tables present selected financial and operating results of the Company for the three and six months ended June 30, 2024 and 2023:

*(in thousands, except per share)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Six months ended June 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: |
| Revenue from gold and silver sales (1) | ​ | **$47,476** | ​ | $34,395 | ​ | **$88,704** | ​ | $69,147 |
| Production costs applicable to sales (1) | ​ | **$(32,066)** | ​ | $(29,570) | ​ | **$(57,176)** | ​ | $(52,983) |
| Gross profit (loss) (1) | ​ | **$10,758** | ​ | $(3,468) | ​ | **$16,769** | ​ | $975 |
| Adjusted EBITDA (2) | ​ | **$7,227** | ​ | $(5,845) | ​ | **$(48,583)** | ​ | $(17,455) |
| Adjusted EBITDA per share (2) | ​ | **$0.15** | ​ | $(0.12) | ​ | **$(0.98)** | ​ | $(0.37) |
| Net loss | ​ | **$(12,995)** | ​ | $(21,627) | ​ | **$(33,378)** | ​ | $(64,703) |
| Net loss per share | ​ | **$(0.26)** | ​ | $(0.46) | ​ | **$(0.67)** | ​ | $(1.36) |
| Cash from (used) in operating activities | ​ | **$2,507** | ​ | $(25,154) | ​ | **$7,487** | ​ | $(53,762) |
| Additions to mineral property interests and plant and equipment | ​ | **$6,684** | ​ | $4,008 | ​ | **$11,206** | ​ | $8,958 |

*(1) Excludes results from the San José mine, which is accounted for under the equity method.*

*(2) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. See “Non-GAAP Financial Performance Measures” beginning on page 31.*

*(in thousands, unless otherwise indicated)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ ​ June 30, 2024 | ​ ​ | ​ ​ December 31, 2023 |
| --- | --- | ---: | --- | ---: |
| Cash and cash equivalents | ​ | **$40,685** | ​ | $23,020 |
| Working capital | ​ | **$29,137** | ​ | $22,658 |

*(in thousands, except per ounce)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Six months ended June 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| GEOs produced (1) | ​ | ​ **35.3** | ​ | ​ 35.7 | ​ | ​ **68.3** | ​ | ​ 66.0 |
| 100% owned operations | ​ | ​ **20.6** | ​ | ​ 18.3 | ​ | ​ **40.7** | ​ | ​ 37.4 |
| San José mine (49% attributable) | ​ | ​ **14.7** | ​ | ​ 17.4 | ​ | ​ **27.6** | ​ | ​ 28.6 |
| GEOs sold (1) | ​ | ​ **35.2** | ​ | ​ 35.1 | ​ | ​ **69.6** | ​ | ​ 65.5 |
| 100% owned operations | ​ | ​ **20.6** | ​ | ​ 18.2 | ​ | ​ **40.4** | ​ | ​ 37.4 |
| San José mine (49% attributable) | ​ | ​ **14.6** | ​ | ​ 16.9 | ​ | ​ **29.2** | ​ | ​ 28.1 |
| Average realized price ($/GEO) (2)(3) | ​ | **$2,355** | ​ | $1,951 | ​ | **$2,246** | ​ | $1,877 |
| P.M. Fix Gold ($/oz) | ​ | **$2,338** | ​ | $1,975 | ​ | **$2,203** | ​ | $1,931 |
| Cash costs per ounce ($/GEO sold) (2) | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| 100% owned operations | ​ | **$1,554** | ​ | $1,627 | ​ | **$1,414** | ​ | $1,418 |
| San José mine (49% attributable) | ​ | **$1,624** | ​ | $1,362 | ​ | **$1,615** | ​ | $1,537 |
| AISC per ounce ($/GEO sold) (2) | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| 100% owned operations | ​ | **$1,728** | ​ | $1,912 | ​ | **$1,592** | ​ | $1,665 |
| San José mine (49% attributable) | ​ | **$2,032** | ​ | $1,811 | ​ | **$1,978** | ​ | $1,980 |
| Gold : Silver ratio (1) | ​ | **​** **81 : 1** | ​ | ​ 83 : 1 | ​ | **​** **85 : 1** | ​ | ​ 84 : 1 |

*(1) Silver production is presented as a gold equivalent with a gold : silver ratio of 81 : 1 for Q2/24 and 83 : 1 for Q2/23.*

*(2) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. See “Non-GAAP Financial Performance Measures” beginning on page 31.*

*(3) On sales from 100% owned operations only, excluding sales from our streaming arrangement at the Fox Complex.*

### CONSOLIDATED PERFORMANCE

Driven by an increase in the average realized price per GEO sold from $1,951 in Q2/23 to $2,355 in Q2/24, we reported a gross profit of $10.8 million in Q2/24, compared to a gross loss of $3.5 million for Q2/23. Sales volumes remained consistent across comparative periods, increasing to 35,182 GEOs in Q2/24 from 35,051 GEOs in Q2/23.

Supported by our improvement in gross margin described above, we reported a net loss of $13.0 million (or $0.26 per share) and adjusted EBITDA of $7.2 million (or $0.15 per share) in Q2/24, compared to a net loss of $21.6 million (or $0.46 per share) and adjusted EBITDA of negative $5.8 million (or negative $0.12 per share) in Q2/23.

Production from our 100% owned mines of 20,594 GEOs in Q2/24 increased by 2,327 GEOs, from 18,267 GEOs produced in Q2/23. At the Gold Bar mine, the production increase of 4,381 GEOs in Q2/24 compared to Q2/23 was primarily attributable to a 48% increase in tonnes processed, as well as higher processed gold grades. This was offset by a decrease in Fox Complex production of 2,054 GEOs in Q2/24 compared to Q2/23 driven by lower mine production, slightly offset by the processing of our stockpile inventory, resulting in a 14% decrease in average head grades processed.

Our attributable share of the San José mine production was 14,672 GEOs in Q2/24, or 15% lower than 17,358 GEOs produced in Q2/23. The decrease was primarily driven by lower average gold grades processed.

### CONSOLIDATED OPERATIONS REVIEW

*Revenue from gold and silver sales* from 100% owned operations increased to $47.5 million in Q2/24, compared to $34.4 million in Q2/23. This 38% increase was driven by an increase in average realized gold prices, and higher ounces sold at the Gold Bar mine. Our average realized gold price in Q2/24 was $2,355 per GEO, compared to $1,951 per GEO in Q2/23.

*Production costs applicable to sales* increased to $32.1 million in Q2/24, compared to $29.6 million in Q2/23. Production costs rose at Gold Bar compared to prior year, driven by higher mining contractor costs; tonnes mined increased by 31% year over year.

*Advanced project costs* were $3.0 million in Q2/24, compared to $29.8 million in Q2/23. Advanced project costs primarily relate to the Fenix Project in both Q2/23 and Q2/24, and Los Azules in Q2/23. Following the deconsolidation of McEwen Copper in Q4/23, the Company’s attributable costs for Los Azules are recognized through the *Loss from investment in McEwen Copper* line item on our *Statement of Operations* and are no longer recognized within *Advanced Project Costs.*

*Exploration costs* were $5.0 million in Q2/24, compared to $5.9 million in Q2/23. Exploration expenditures were primarily incurred at the Grey Fox project at the Fox Complex, and for a number of short and medium term targets at Gold Bar.

*Income from investment in MSC* increased to $4.7 million in Q2/24, compared to a loss of $0.9 million in Q2/23. This increase was a result of increased average realized gold prices, partially offset by higher production costs. Details of MSC’s operating results are presented in the “Operations Review” section of this MDA and Note 9 to the *Consolidated Financial Statements.*

*Loss from investment in McEwen Copper* of $16.8 million was recorded in Q2/24. Prior to Q4/23, the financial results of McEwen Copper were consolidated. The loss during Q2/24 represents our attributable portion of McEwen Copper’s costs, consisting primarily of expenditures to advance the Los Azules project to feasibility. Details of McEwen Copper’s operating results are presented in the “Operations Review” section of this MDA and Note 9 to the *Consolidated Financial Statements.*

*Interest and other finance expense, net* was $1.7 million in Q2/24, a $21.3 million decrease compared to income of $19.6 million in Q2/23. During Q2/23, interest and other finance income was driven by McEwen Copper’s income earned from its investments of cash reserves not immediately required for exploration activities.

*Other income (expense)* was $0.3 million in Q2/24, compared to an expense of $21.9 million in Q2/23. The increase was primarily attributable to a decrease in foreign exchange losses following the deconsolidation of McEwen Copper, as a significant portion of its treasury were held in Argentine pesos during Q2/23.

*Income and mining tax recovery* increased to $2.4 million in Q2/24, compared to $2.0 million in Q2/23. The increase resulted from a change in temporary tax differences on our investment in McEwen Copper and the amortization of the flow-through share premium.

### LIQUIDITY AND CAPITAL RESOURCES

Our cash and cash equivalents balance increased by $17.7 million during H1/24, from $23.0 million as at December 31, 2023 to $40.7 million as at June 30, 2024.

Cash from operating activities of $7.5 million during H1/24 reflects the net loss of $33.4 million for the period, as adjusted for non-cash impacts, including net losses from equity method investments of $28.8 million, depreciation, amortization, and depletion of $15.1 million, and income and mining tax recovery of $5.8 million. Further details are provided in the *Consolidated Statements of Cash Flows.*

Cash used in investing activities of $11.1 million during H1/24 consisted primarily of additions to mineral property interests and plant and equipment and was driven primarily by capital development at our Froome mine and Stock project in Canada.

Cash provided by financing activities of $20.0 million during H1/24 represented the proceeds from flow-through common shares of $21.8 million, offset by issuance costs of $1.4 million and finance lease payments of $0.4 million.

Working capital as at June 30, 2024 was $29.1 million, and increased by 25% from $22.7 million as at December 31, 2023. This improvement was primarily driven by the increase of cash and cash equivalents of $17.7 million described above, and a $1.8 million increase in other current assets. This was partially offset by an increase in current liabilities of $13.0 million, which primarily included $6.0 million in the current portion of long-term debt, $5.2 million in flow-through share premiums, and a $2.1 million increase in accounts payable and accrued liabilities.

The Company believes that it has sufficient liquidity along with funds generated from ongoing operations to fund anticipated cash requirements for operations, capital expenditures and working capital purposes for the next 12 months.

### OPERATIONS REVIEW

### United States Segment

The United States segment is comprised of the Gold Bar mine and our exploration properties in the State of Nevada.

#### Gold Bar Mine

The following table summarizes the operating results for the Gold Bar mine for the three and six months ended June 30, 2024, and 2023:

*(in thousands, unless otherwise indicated)*

| ​ ​ ​ Operating Results | ​ ​ ​ | ​ ​ Three months ended June 30, 2024 | ​ | ​ ​ ​ 2023 | ​ ​ | ​ ​ Six months ended June 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mined mineralized material (t) |  | ​ **650** |  | ​ 496 |  | ​ **1,328** |  | ​ 1,060 |
| Average grade (g/t Au) |  | ​ **1.02** |  | ​ 0.76 |  | ​ **0.89** |  | ​ 0.80 |
| Processed mineralized material (t) |  | ​ **647** |  | ​ 479 |  | ​ **1,330** |  | ​ 1,057 |
| Average grade (g/t Au) |  | ​ **1.02** |  | ​ 0.69 |  | ​ **0.90** |  | ​ 0.77 |
| Gold ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **12.3** |  | ​ 7.9 |  | ​ **24.0** |  | ​ 14.4 |
| Sold |  | ​ **12.5** |  | ​ 8.1 |  | ​ **24.7** |  | ​ 14.4 |
| Silver ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **0.2** |  | ​ 0.1 |  | ​ **0.3** |  | ​ 0.4 |
| Sold |  | ​ **—** |  | ​ — |  | ​ **—** |  | ​ 0.4 |
| GEOs: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **12.3** |  | ​ 7.9 |  | ​ **24.0** |  | ​ 14.4 |
| Sold |  | ​ **12.5** |  | ​ 8.1 |  | ​ **24.7** |  | ​ 14.4 |
| Revenue from gold and silver sales | ​ | **$29,686** | ​ | $15,971 | ​ | **$54,964** | ​ | $27,559 |
| Cash costs (1) | ​ | **$19,170** | ​ | $17,115 | ​ | **$32,437** | ​ | $26,455 |
| Cash costs per ounce ($/GEO sold) (1) | ​ | **$1,532** | ​ | $2,113 | ​ | **$1,313** | ​ | $1,842 |
| All‑in sustaining costs (1) | ​ | **$20,444** | ​ | $20,935 | ​ | **$34,671** | ​ | $31,457 |
| AISC per ounce ($/GEO sold) (1) | ​ | **$1,634** | ​ | $2,585 | ​ | **$1,404** | ​ | $2,190 |
| Gold : Silver ratio | ​ | **81 : 1** | ​ | 83 : 1 | ​ | **85 : 1** | ​ | 84 : 1 |

*(1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 31 for additional information.*

#### Q2/24 compared to Q2/23

The Gold Bar mine produced 12,297 GEOs in Q2/24, representing a 55% increase from 7,916 GEOs produced in Q2/23. The increase in quarterly production was a result of higher average grades processed (1.02 g/t Au in Q2/24 compared to 0.69 g/t Au in Q2/23) along with a 35% increase in tonnes stacked on our heap leach.

*Revenue from gold and silver sales* was $29.7 million in Q2/24, an improvement of 86%, compared to $16.0 million in Q2/23. The increase in revenue was the result of higher GEOs sold during Q2/24 (12,510 GEOs in Q2/24 compared to 8,100 GEOs in Q2/23) together with a higher average realized gold price ($2,355 per GEO in Q2/24 compared with $1,951 per GEO in Q2/23).

*Production costs applicable to sales* of $19.2 million during Q2/24 were comparable to $17.1 million during Q2/23. This increase was primarily driven by higher mining and processing costs arising from a 35% increase in the volume of processed mineralized material.

*Cash costs* and *AISC* per GEO sold in Q2/24 were $1,532 and $1,634, respectively, compared to $2,113 and $2,585 in Q2/23, respectively. The reduction in cash costs and AISC per GEO sold was primarily driven by higher GEOs sold, as noted above.

#### Exploration Activities

In Q2/24, exploration efforts at Cabin Creek focused on drilling, geologic modeling, and resource assessment to evaluate the economic feasibility of near-term mining of shallow oxide resources. Assay results from the Phase 1 drilling over 17 holes demonstrated 40 feet of oxide gold mineralization, grading 0.58 g/t, starting at a depth of 70 feet.

At Gold Bar South, the Q2/24 drilling program was focused on three areas: North Zone, East Zone, and East Deep Zone. In the North Zone, additional near-surface mineralization was followed by Phase 2 drilling, potentially expanding our mineral resource. These results are expected to be included in geology and block model updates later in 2024. Drilling in the East Zone revealed extensions of mineralization from the existing pit, prompting further testing. In the East Deep Zone, assay results indicated higher-grade oxidized gold mineralization, prompting additional drilling planned for Q3/24.

At the Hunter Target, exploration drilling across six holes was targeting the geologic controls and potential for near-surface mineralization in legacy drill holes. Q2/24 drilling results demonstrated indicated higher-grade oxidized gold mineralization, with additional drilling planned to continue in Q3/24.

### Canada Segment

The Canada segment is comprised of the Fox Complex gold properties, which includes our Froome underground mine; the Stock Project (consisting of the West, East and Main zones); the Stock mill; the Grey Fox exploration project; a number of exploration properties located near the city of Timmins, Ontario, Canada; and the Black Fox mine.

#### Fox Complex

The following table summarizes the operating results for the Fox Complex for the three and six months ended June 30, 2024, and 2023:

*(in thousands, unless otherwise indicated)*

| ​ ​ ​ Operating Results | ​ ​ ​ | ​ ​ Three months ended June 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Six months ended June 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mined mineralized material (t) |  | ​ **73** |  | ​ 110 |  | ​ **152** |  | ​ 201 |
| Average grade (g/t Au) |  | ​ **2.99** |  | ​ 3.00 |  | ​ **2.91** |  | ​ 3.54 |
| Processed mineralized material (t) |  | ​ **105** |  | ​ 114 |  | ​ **210** |  | ​ 221 |
| Average grade (g/t Au) |  | ​ **2.71** |  | ​ 3.16 |  | ​ **2.55** |  | ​ 3.62 |
| Gold ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **8.3** |  | ​ 10.3 |  | ​ **15.8** |  | ​ 23.0 |
| Sold, excluding stream | ​ | ​ **7.4** | ​ | ​ 9.0 | ​ | ​ **14.4** | ​ | ​ 21.2 |
| Sold, stream |  | ​ **0.6** |  | ​ 1.1 |  | ​ **1.3** |  | ​ 1.8 |
| Sold, including stream | ​ | ​ **8.1** | ​ | ​ 10.1 | ​ | ​ **15.7** | ​ | ​ 23.0 |
| Silver ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **1.4** |  | ​ 1.3 |  | ​ **2.5** |  | ​ 2.8 |
| Sold |  | ​ **1.6** |  | ​ 0.8 |  | ​ **2.9** |  | ​ 3.3 |
| GEOs: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **8.3** |  | ​ 10.4 |  | ​ **15.8** |  | ​ 23.1 |
| Sold, excluding stream | ​ | ​ **7.4** | ​ | ​ 9.0 | ​ | ​ **14.4** | ​ | ​ 21.2 |
| Sold | ​ | ​ **8.1** | ​ | ​ 10.1 | ​ | ​ **15.7** | ​ | ​ 23.0 |
| Revenue from gold and silver sales | ​ | **$17,790** | ​ | $18,424 | ​ | **$32,540** | ​ | $41,588 |
| Cash costs (1) | ​ | **$12,896** | ​ | $12,455 | ​ | **$24,739** | ​ | $26,528 |
| Cash costs per ounce ($/GEO sold) (1) | ​ | **$1,588** | ​ | $1,237 | ​ | **$1,572** | ​ | $1,153 |
| All‑in sustaining costs (1) | ​ | **$15,213** | ​ | $13,808 | ​ | **$29,681** | ​ | $30,758 |
| AISC per ounce ($/GEO sold) (1) | ​ | **$1,874** | ​ | $1,371 | ​ | **$1,886** | ​ | $1,337 |
| Gold : Silver ratio | ​ | **81 : 1** | ​ | 83 : 1 | ​ | **85 : 1** | ​ | 84 : 1 |

*(1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 31 for additional information.*

#### Q2/24 compared to Q2/23

The Fox Complex produced 8,297 GEOs from the Froome mine in Q2/24, which represented a 20% decrease from the 10,351 GEOs produced in Q2/23. Due to development delays occurring in Q1/24 and early Q2/24 that reduced access to available stopes and resulted in a lower volume of mined material during the quarter, we processed low-grade stockpile inventory to maintain steady mill throughput. As a result, we realized a 14% decline in average head grades processed. We have engaged a mining contractor to address development concerns at the end of Q2/24 and expect to improve mining production in H2/24 accordingly.

*Revenue from gold sales* was $17.8 million in Q2/24, or a decrease of $0.6 million compared to $18.4 million in Q2/23. The decrease is attributable to the reduced number of GEOs sold during Q2/24 as described previously. This was partially offset by an increase in the average realized gold price from $1,951 per GEO in Q2/23 to $2,355 per GEO in Q2/24. Realized gold prices at the Fox Complex are impacted by historic streaming arrangements, which require the sale of a portion of gold produced from the Froome mine at lower than market prices, or $601 per ounce as of Q2/24.

*Production costs applicable to sales* were $12.9 million, which increased in Q2/24 by $0.4 million from $12.5 million in Q2/23, driven by the processing of higher cost stockpiled material. This increase in costs was offset by reduced contractor costs for crushing activities.

*Cash costs* and *AISC per GEO sold* were $1,588 and $1,857 in Q2/24, respectively, compared to $1,237 and $1,371 in Q2/23, respectively. The increase in unit costs was driven primarily by lower GEOs sold as described above.

#### Exploration Activities

In Q2/24, $2.4 million was incurred primarily for exploration at the Grey Fox property. The company drilled 55,433 feet (16,896 meters) at Grey Fox.

#### Development Activities

In H1/24, we invested $4.3 million in the Stock Project. The earthworks construction at the portal entrance is expected to be completed in H2/24. Following construction of the portal, an underground ramp will be developed to access the Main, East and West zones of the Stock deposit.

### Mexico Segment

The Mexico segment includes the El Gallo mine and the related advanced-stage Fenix Project, located in Sinaloa state.

#### Advanced-Stage Properties – Fenix Project

On December 31, 2020, we announced the results of a feasibility study for the development of our 100%-owned Fenix Project, which includes existing heap leach material at the El Gallo mine and the El Gallo Silver deposit. Key environmental permits for Phase 1 were received in 2019, including the approval for an in-pit tailings storage facility and process plant construction.

The processing plant is expected to employ proven and conventional mineral processing and precious metal recovery technologies. Phase 1 is projected to have a processing rate of 3,400 tons per day.

Tailings generated during operations are expected to be stored in the depleted Samaniego pit at the El Gallo site. This approach provides increased safety by avoiding the construction of embankment structures, focusing solely on the geochemical stability of the dam, rather than its physical stability.

In supporting the Fenix Project, we purchased a secondhand gold processing plant and associated equipment in September 2022, which includes all of the major components contemplated in Phase 1 of our feasibility study. As of the end of 2023, most of the equipment necessary for the plant has been mobilized to our project site to undergo a comprehensive refurbishment program. This will allow us to maximize the utilization of the acquired equipment, with the mills and its main components being the first to be mobilized and refurbished, now ready for installation.

### Minera Santa Cruz Segment, Argentina

The Minera Santa Cruz Segment is comprised of a 49% interest in the San José mine, located in Santa Cruz, Argentina.

The following table sets out certain operating results for the San José mine for the three and six months ended June 30, 2024, and 2023 on a 100% basis:

*(in thousands, except otherwise indicated)*

| ​ ​ ​ Operating Results San José Mine—100% basis | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2024 ​ ​ | ​ ​ | ​ ​ 2023 ​ ​ | ​ ​ ​ | ​ ​ Six months ended June 30, 2024 ​ ​ | ​ ​ | ​ ​ 2023 ​ ​ |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mined mineralized material (t) |  | ​ **168** |  | ​ 131 |  | ​ **296** |  | ​ 239 |
| Average grade mined (g/t) | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Gold |  | ​ **3.3** |  | ​ 5.2 |  | ​ **3.6** |  | ​ 4.8 |
| Silver |  | ​ **209** |  | ​ 286 |  | ​ **218** |  | ​ 265 |
| Processed mineralized material (t) |  | ​ **143** |  | ​ 144 |  | ​ **269** |  | ​ 272 |
| Average grade processed (g/t) | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Gold |  | ​ **4.4** |  | ​ 5.4 |  | ​ **4.5** |  | ​ 4.7 |
| Silver |  | ​ **252** |  | ​ 288 |  | ​ **255** |  | ​ 254 |
| Average recovery (%): | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Gold |  | ​ **86.5** |  | ​ 85.9 |  | ​ **86.6** |  | ​ 85.7 |
| Silver |  | ​ **87.1** |  | ​ 87.4 |  | ​ **87.7** |  | ​ 87.4 |
| Gold ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **17.5** |  | ​ 21.4 |  | ​ **33.5** |  | ​ 35.1 |
| Sold |  | ​ **17.3** |  | ​ 20.0 |  | ​ **35.5** |  | ​ 33.5 |
| Silver ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **1,011** |  | ​ 1,163 |  | ​ **1,929** |  | ​ 1,941 |
| Sold |  | ​ **997** |  | ​ 1,201 |  | ​ **2,029** |  | ​ 1,985 |
| GEOs: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **29.9** |  | ​ 35.4 |  | ​ **56.3** |  | ​ 58.4 |
| Sold |  | ​ **29.7** |  | ​ 34.4 |  | ​ **59.5** |  | ​ 57.3 |
| Revenue from gold and silver sales | ​ | **$74,348** | ​ | $67,712 | ​ | **$140,275** | ​ | $114,948 |
| Average realized price: | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| Gold ($/Au oz) | ​ | **$2,509** | ​ | $1,966 | ​ | **$2,358** | ​ | $1,995 |
| Silver ($/Ag oz) | ​ | **$30.93** | ​ | $23.68 | ​ | **$27.90** | ​ | $24.26 |
| Cash costs (1) | ​ | **$48,220** | ​ | $46,931 | ​ | **$96,105** | ​ | $88,055 |
| Cash costs per ounce sold ($/GEO) (1) | ​ | **$1,624** | ​ | $1,362 | ​ | **$1,615** | ​ | $1,537 |
| All‑in sustaining costs (1) | ​ | **$60,342** | ​ | $62,400 | ​ | **$117,694** | ​ | $113,436 |
| AISC per ounce sold ($/GEO) (1) | ​ | **$2,032** | ​ | $1,811 | ​ | **$1,978** | ​ | $1,980 |
| Gold : Silver ratio | ​ | ​ **81 : 1** | ​ | 83 : 1 | ​ | **85 : 1** | ​ | 84 : 1 |

*(1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure. Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 31 for additional information.*

The analysis below compares the operating and financial results of MSC on a 100% basis.

#### Q2/24 compared to Q2/2023

On a 100% basis, the San José mine produced 29,942 GEOs in Q2/24 compared to 35,424 in Q2/23. The decrease in GEOs produced was driven by a 19% and 13% decrease in gold and silver head grades processed, respectively.

*Revenue from gold and silver sales* was $74.3 million in Q2/24 compared to $67.7 million in Q2/23. The increase was primarily due to a higher average realized gold price per ounce ($2,509/oz gold in Q2/24 compared with $1,966/oz gold in Q2/23).

*Production costs applicable to sales* were $48.2 million during Q2/24, compared to $46.9 million during Q2/23. The increase in production costs was driven by higher personnel, processing, and mining expenses, primarily due to Argentine inflation pressures and the regulated official exchange rate. Additionally, higher commercial discounts resulting from increased commodity prices contributed to the rise in costs.

*Cash costs* and *AISC* per GEO sold were $1,624 and $2,032 in Q2/24, respectively, compared to $1,362 and $1,811 in Q2/23, respectively. The increase in cash costs and AISC per GEO sold primarily resulted from higher production costs and lower GEOs sold as described above.

#### Investment in MSC

Our 49% attributable share of operations from our investment in MSC in Q2/24 resulted in income of $5.9 million, compared to a loss of $0.9 million in Q2/23.

### McEwen Copper Inc.

As of June 30, 2024, we own a 47.7% interest in McEwen Copper Inc., which owns a 100% interest in the Los Azules copper project in San Juan, Argentina, and the Elder Creek exploration project in Nevada, USA. Including amounts spent by Minera Andes Inc. prior to 2012, and directly by McEwen Mining prior to 2021, we have invested over $350.0 million in exploration expenditures to develop Los Azules as a world-class copper deposit.

### Los Azules, San Juan, Argentina

The Los Azules project is one of the world’s largest undeveloped open-pit copper porphyry copper deposits and is located in the Province of San Juan, Argentina.

During the first half of 2024, Los Azules spent $85.7 million in exploration expenditures at the Los Azules copper project in Argentina. These funds primarily supported key activities required to complete our planned feasibility study, such as an extensive drilling program, and the completion of geological and hydrological models. Our feasibility study is expected to be published in the first half of 2025.

McEwen Copper spent $37.5 million dollars in Q2/24 advancing the following exploration activities:

#### Drilling Program

Our drilling initiative for this season commenced in October 2023 and concluded in June 2024. During the 2023-2024 drilling campaign, we successfully completed approximately 230,800 feet (70,364 meters) of drilling. The Los Azules drill hole database for Q2/24 now totals approximately 710,000 feet (217,000 meters).

#### 2023-2024 Preliminary Assay Results

Preliminary assay results from the 2023-2024 drilling season have been received and analyzed during H1/24. These assay results include significant copper values over wide intercepts and align with those predicted by the resource block model used in the June 2023 Preliminary Economic Assessment (“PEA”) for Los Azules. Drill highlights include:

- 257 m of 0.76% Cu, within the enriched zone (Hole AZ23205)
- 446 m of 0.63% Cu, including 76 m of 0.92% Cu (Hole AZ23228)
- 250 m of 0.68% Cu, in the Enriched zone, including 192 m of 0.83% Cu (Hole AZ23230)
- 349 m of 0.77% Cu, including 232 m of 0.86% Cu in the Enriched zone (Hole AZ23292)
- 382 m of 0.54% Cu, including 74 m of 0.86% Cu in the Enriched zone (Hole AZ23277)

Further details on our assay results were included in our press releases dated February 26, 2024 and May 16, 2024.

#### Environmental Impact Assessment

The first presentation of the Environmental Impact Assessment to the Technical Evaluation Commission (“CIEAM”) was delivered on November 24, 2023. Comments raised by CIEAM primarily focused on water management and the preservation of onsite meadows/wetlands. Furthermore, additional works and infrastructure needs identified by the Company were addressed during the meeting. Following this presentation, in April 2024, CIEAM visited our Los Azules site for two days to continue their evaluation of our Environmental Impact Assessment.

### NON-GAAP FINANCIAL PERFORMANCE MEASURES

We have included in this report certain non-GAAP 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 to evaluate our business on an ongoing basis 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. We also report these measures to provide investors and analysts with useful information about our underlying costs of operations and clarity over our ability to finance operations. 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 US GAAP results and using the non-GAAP measures supplementally.

The non-GAAP measures are presented for our wholly owned mines and our interest in the San José mine. The GAAP information used for the reconciliation to the non-GAAP measures for our minority interest in the San José mine may be found in Item 8. Financial Statements and Supplementary Data, *Note 9, Equity Investments*. The amounts in the reconciliation 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 (“OJVA”) and varies depending on factors including the profitability of the operations.

The presentation of these measures, including the minority interest in the San José, has limitations as an analytical tool. Some of these limitations include:

The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not represent our legal claim to the 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, and average realized price per ounce differently than we do, limiting the usefulness as a comparative measure.

#### Cash Costs and All-In Sustaining Costs

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.

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:

*(in thousands, except per ounce)*

*(in thousands, except per ounce)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2024 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total | ​ ​ ​ ​ | ​ ​ Six months ended June 30, 2024 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **Production costs applicable to sales (100% owned)** |  | $19,170 | ​ | $12,896 | ​ | **$32,066** | ​ | $32,437 | ​ | $24,739 | ​ | **$57,176** |
| Mine site reclamation, accretion and amortization | ​ | ​ 307 | ​ | ​ 134 | ​ | **​** **442** | ​ | ​ 615 | ​ | ​ 271 | ​ | **​** **885** |
| In‑mine exploration | ​ | ​ 507 | ​ | ​ — | ​ | **​** **507** | ​ | ​ 587 | ​ | ​ — | ​ | **​** **587** |
| Capitalized underground mine development (sustaining) | ​ | ​ — | ​ | ​ 2,102 | ​ | **​** **2,102** | ​ | ​ — | ​ | ​ 4,405 | ​ | **​** **4,405** |
| Capital expenditures on plant and equipment (sustaining) | ​ | ​ 428 | ​ | ​ — | ​ | **​** **428** | ​ | ​ 979 | ​ | ​ — | ​ | **​** **979** |
| Sustaining leases | ​ | ​ 32 | ​ | ​ 81 | ​ | **​** **113** | ​ | ​ 53 | ​ | ​ 266 | ​ | **​** **320** |
| **All‑in sustaining costs** | **​** | $20,444 | ​ | $15,213 | ​ | **$35,658** | ​ | $34,671 | ​ | $29,681 | ​ | **$64,352** |
| Ounces sold, including stream (GEO) | ​ | ​ 12.5 | ​ | ​ 8.1 | ​ | **​** **20.6** | ​ | ​ 24.7 | ​ | ​ 15.7 | ​ | **​** **40.4** |
| **Cash cost per ounce sold ($/GEO)** | ​ | $1,532 | ​ | $1,588 | ​ | **$1,554** | ​ | $1,313 | ​ | $1,572 | ​ | **$1,414** |
| **AISC per ounce sold ($/GEO)** | ​ | $1,634 | ​ | $1,874 | ​ | **$1,728** | ​ | $1,404 | ​ | $1,886 | ​ | **$1,592** |

*(in thousands, except per ounce)*

*(in thousands, except per ounce)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2023 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total | ​ ​ ​ ​ | ​ ​ Six months ended June 30, 2023 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Production costs applicable to sales - Cash costs (100% owned) | ​ | $17,115 | ​ | $12,455 | ​ | $29,570 | ​ | $26,455 | ​ | $26,528 | ​ | $52,983 |
| In‑mine exploration | ​ | ​ 1,115 | ​ | ​ — | ​ | ​ 1,115 | ​ | ​ 1,597 | ​ | ​ — | ​ | ​ 1,597 |
| Capitalized underground mine development (sustaining) | ​ | ​ — | ​ | ​ 1,177 | ​ | ​ 1,177 | ​ | ​ — | ​ | ​ 3,831 | ​ | ​ 3,831 |
| Capital expenditures on plant and equipment (sustaining) | ​ | ​ 2,484 | ​ | ​ — | ​ | ​ 2,484 | ​ | ​ 3,177 | ​ | ​ — | ​ | ​ 3,177 |
| Sustaining leases | ​ | ​ 221 | ​ | ​ 176 | ​ | ​ 397 | ​ | ​ 229 | ​ | ​ 399 | ​ | ​ 628 |
| All‑in sustaining costs | ​ | $20,935 | ​ | $13,808 | ​ | $34,743 | ​ | $31,458 | ​ | $30,758 | ​ | $62,216 |
| Ounces sold, including stream (GEO) | ​ | ​ 8.1 | ​ | ​ 10.1 | ​ | ​ 18.2 | ​ | ​ 14.4 | ​ | ​ 23.0 | ​ | ​ 37.4 |
| Cash cost per ounce sold ($/GEO) | ​ | $2,113 | ​ | $1,237 | ​ | $1,627 | ​ | $1,842 | ​ | $1,153 | ​ | $1,418 |
| AISC per ounce sold ($/GEO) | ​ | $2,585 | ​ | $1,371 | ​ | $1,912 | ​ | $2,190 | ​ | $1,337 | ​ | $1,665 |

*(in thousands, except per ounce)*

| ​ ​ ​ San José mine cash costs (100% basis) | ​ ​ ​ | ​ ​ Three months ended June 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Six months ended June 30, 2024 | ​ | ​ ​ 2023 | ​ ​ ​ |
| --- | --- | ---: | --- | --- | --- | --- | --- | --- | --- |
| **Production costs applicable to sales - Cash costs** | ​ | **$48,220** | ​ | $46,931 | ​ | **$96,105** | ​ | $88,055 | ​ |
| Mine site reclamation, accretion and amortization | ​ | **​** **361** | ​ | ​ 95 | ​ | **​** **665** | ​ | ​ 386 | ​ |
| Site exploration expenses | ​ | **1,890** | ​ | ​ 2,846 | ​ | **​** **3,321** | ​ | ​ 4,798 | ​ |
| Capitalized underground mine development (sustaining) | ​ | **7,049** | ​ | ​ 8,919 | ​ | **​** **14,380** | ​ | ​ 16,049 | ​ |
| Less: Depreciation | ​ | **​** **(621)** | ​ | ​ (703) | ​ | **​** **(1,420)** | ​ | ​ (1,253) | ​ |
| Capital expenditures (sustaining) | ​ | **3,443** | ​ | ​ 4,312 | ​ | **​** **4,643** | ​ | ​ 5,401 | ​ |
| **All‑in sustaining costs** | **​** | **$60,342** | ​ | $62,400 | ​ | **$117,694** | ​ | $113,436 | ​ |
| Ounces sold (GEO) | ​ | ​ **29.7** | ​ | ​ 34.4 | ​ | **​** **59.5** | ​ | ​ 57.3 | ​ |
| **Cash cost per ounce sold ($/GEO)** | **​** | **$1,624** | ​ | $1,362 | **​** | **$1,615** | **​** | $1,537 | ​ |
| **AISC per ounce sold ($/GEO)** | ​ | **$2,032** | ​ | $1,811 | ​ | **$1,978** | ​ | $1,980 | ​ |

#### Adjusted EBITDA and adjusted EBITDA per share

Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is a non-GAAP financial measure and does not have any standardized meaning. We use adjusted EBITDA 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 exploration operations. The most directly comparable measure prepared in accordance with GAAP is net loss before income and mining taxes. Adjusted EBITDA is calculated by adding back McEwen Copper's income or loss impacts on our consolidated income or loss before income and mining taxes.

The following tables present a reconciliation of adjusted EBITDA:

*(in thousands)*

*(in thousands)*

| ​ ​ ​ Adjusted EBITDA | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2024 | ​ | ​ ​ 2023 | ​ ​ ​ ​ | ​ ​ Six months ended June 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net loss before income and mining taxes | ​ | **$(15,371)** | ​ | $(45,310) | ​ | **$(38,311)** | ​ | $(82,256) |
| Less: | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| Depreciation and depletion | ​ | **​** **4,810** | ​ | ​ 8,602 | ​ | **​** **15,088** | ​ | ​ 15,780 |
| Loss from investment in McEwen Copper Inc. (Note 9) | ​ | **​** **16,816** | ​ | ​ — | ​ | **​** **34,828** | ​ | ​ — |
| Advanced Projects – McEwen Copper Inc. | ​ | **​** **—** | ​ | ​ 28,524 | ​ | **​** **—** | ​ | ​ 60,405 |
| General, interest and other – McEwen Copper Inc. | ​ | **​** **—** | ​ | ​ 661 | ​ | **​** **—** | ​ | ​ (5,211) |
| Interest expense | ​ | **​** **972** | ​ | ​ 1,678 | ​ | **​** **1,945** | ​ | ​ 3,025 |
| Adjusted EBITDA | ​ | **$7,227** | ​ | $(5,845) | ​ | **$(48,583)** | ​ | $(17,455) |
| Weighted average shares outstanding (thousands) | ​ | **​** **49,718** | ​ | ​ 47,428 | ​ | **​** **49,580** | ​ | ​ 47,428 |
| Adjusted EBITDA per share | ​ | **$0.15** | ​ | $(0.12) | ​ | **$(0.98)** | ​ | $(0.37) |

33

#### 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. Ounces of gold and silver sold for the San José mine are provided to us by MSC.

*(in thousands, except per ounce)*

| ​ ​ ​ Average realized price - 100% owned | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Six months ended June 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue from gold and silver sales | ​ | **$47,476** | ​ | $34,395 | ​ | **$88,704** | ​ | $69,147 |
| Less: revenue from gold sales, stream | ​ | **​** **379** | ​ | ​ 638 | ​ | **​** **758** | ​ | ​ 1,040 |
| Revenue from gold and silver sales, excluding stream | ​ | **$47,097** | ​ | $33,757 | ​ | **$87,946** | ​ | $68,107 |
| GEOs sold | ​ | **​** **20.6** | ​ | ​ 18.4 | ​ | **​** **40.4** | ​ | ​ 38.1 |
| Less: gold ounces sold, stream | ​ | **​** **0.6** | ​ | ​ 1.1 | ​ | **​** **1.3** | ​ | ​ 1.8 |
| GEOs sold, excluding stream | ​ | **​** **20.0** | ​ | ​ 17.3 | ​ | **​** **39.2** | ​ | ​ 36.3 |
| Average realized price per GEO sold, excluding stream | ​ | **$2,355** | ​ | $1,951 | ​ | **$2,246** | ​ | $1,877 |

*(in thousands, except per ounce)*

| ​ ​ ​ Average realized price - San José mine (100% basis) ​ | ​ ​ ​ ​ | ​ ​ Three months ended June 30, 2024 ​ | ​ ​ | ​ ​ 2023 ​ | ​ ​ ​ | ​ ​ Six months ended June 30, 2024 ​ ​ | ​ ​ | ​ ​ 2023 ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: |
| Gold sales | ​ | **$43,508** | ​ | $39,257 | ​ | **$83,683** | ​ | $66,798 |
| Silver sales | ​ | **​** **30,840** | ​ | 28,455 | ​ | **​** **56,591** | ​ | 48,151 |
| Gold and silver sales | ​ | **$74,348** | ​ | $67,712 | ​ | **$140,275** | ​ | $114,949 |
| Gold ounces sold | ​ | **17.3** | ​ | 20.0 | ​ | **​** **35.5** | ​ | 33.5 |
| Silver ounces sold | ​ | **997** | ​ | 1,201 | ​ | **​** **2,029** | ​ | 1,985 |
| GEOs sold | ​ | **29.7** | ​ | 34.4 | ​ | **​** **59.5** | ​ | 57.3 |
| Average realized price per gold ounce sold | ​ | **$2,509** | ​ | $1,966 | ​ | **$2,358** | ​ | $1,995 |
| Average realized price per silver ounce sold | ​ | **$30.93** | ​ | $23.68 | ​ | **$27.90** | ​ | $24.26 |
| Average realized price per GEO sold | ​ | **$2,503** | ​ | $1,966 | ​ | **$2,358** | ​ | $2,006 |

### CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical accounting policies and estimates used to prepare our financial statements are discussed with our Audit Committee as they are implemented on an annual basis.

The were no significant changes in our critical accounting policies or estimates since December 31, 2023. For further details on the Company’s accounting policies and estimates, refer to the Form 10-K for the year ended December 31, 2023.

### FORWARD-LOOKING STATEMENTS

This report contains or incorporates by reference “forward-looking statements”, as that term is used in federal securities laws, about our financial condition, results of operations and business. These statements include, among others:

- statements about our anticipated exploration results, costs and feasibility of production, production estimates, receipt of permits or other regulatory or governmental approvals and plans for the development of our properties.
- statements regarding strategic alternatives that we are, or may in the future, evaluate in connection with our business.
- statements concerning the benefits or outcomes that we expect will result from our business activities and certain transactions that we contemplate or have completed, such as receipt of proceeds, increased revenues, decreased expenses and avoided expenses and expenditures;
- the anticipated timeframe for remediating the material weakness in our internal control over financial reporting and effectiveness of our disclosure controls and procedures; and
- statements of our expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts.

These statements may be made expressly in this document or may be incorporated by reference to other documents that we will file with the SEC. Many of these statements can be found by looking for words such as “believes”, “expects”, “anticipates”, “estimates” or similar expressions used in this report or incorporated by reference in this report.

Forward-looking statements and information are 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.

Included among the forward-looking statements and information that we may provide is production guidance. From time to time the Company provides guidance on operations, based on stand-alone budgets for each operating mine. In developing the mine production portion of the budget, we evaluate a number of factors and assumptions, which include, but are not limited to:

- gold and silver price forecasts.
- average gold and silver grade mined, using a resource model.
- average grade processed by the crushing facility (Gold Bar) or milling facility (San José mine and Fox Complex).
- expected tonnes moved and strip ratios.
- available stockpile material (grades, tonnes, and accessibility).
- estimates of in process inventory (either on the leach pad or plant for the El Gallo mine and Gold Bar, or in the mill facility for the San José mine and the Black Fox mine).
- estimated leach recovery rates and leach cycle times (the El Gallo mine and Gold Bar).
- estimated mill recovery rates (San José mine and Fox Complex).
- dilution of material processed.
- internal and contractor equipment and labor availability.
- seasonal weather patterns.

Actual production results are sensitive to variances in any of the key factors and assumptions noted above. As a result, we frequently evaluate and reconcile actual results to budgeted results to determine if key assumptions and estimates require modification. Any changes will, in turn, influence production guidance.

We caution you not to put undue reliance on these forward-looking statements, which speak only as of the date of this report. Further, the forward-looking information contained in this document or incorporated herein by reference is a statement of our present intention and is based on present facts and assumptions, and may change at any time and without notice, based on changes in such facts or assumptions. Readers should not place undue reliance on forward-looking statements.

### RISK FACTORS IMPACTING FORWARD-LOOKING STATEMENTS

Important factors that could prevent us from achieving our stated goals and objectives include, but are not limited to, those set forth in the “Risk Factors” section in our report on Form 10-K for the year ended December 31, 2023 and other reports filed with the SEC, and the following:

- our ability to raise funds required for the execution of our business strategy.
- the effects of pandemics on health in our operating jurisdictions and the worldwide, national, state and local responses to such pandemics, and direct and indirect effects of pandemics on our business plans and operations.
- our ability to secure permits or other regulatory and government approvals needed to operate, develop or explore our mineral properties and projects.
- our ability to maintain an ongoing listing of our common stock on the New York Stock Exchange or another national securities exchange in the United States.
- decisions of foreign countries, banks, and courts within those countries.
- national and international geopolitical events and conflicts, and unexpected changes in business, economic, and political conditions.
- operating results of MSC and McEwen Copper.
- fluctuations in interest rates, inflation rates, currency exchange rates, or commodity prices.
- timing and amount of mine production.
- our ability to retain and attract key personnel.
- technological changes in the mining industry.
- changes in operating, exploration, or overhead costs.
- access and availability of materials, equipment, supplies, labor and supervision, power, and water.
- results of current and future exploration activities.
- results of pending and future feasibility studies or the expansion or commencement of mining operations without feasibility studies having been completed.
- changes in our business strategy.
- interpretation of drill hole results and the geology, grade, and continuity of mineralization.
- the uncertainty of reserve estimates and timing of development expenditures.
- litigation or regulatory investigations and procedures affecting us.
- changes in federal, state, provincial and local laws, and regulations.
- local and community impacts and issues including criminal activity and violent crimes.
- accidents, public health issues, and labor disputes.
- uncertainty relating to title to mineral properties.
- changes in relationships with the local communities in the areas in which we operate; and
- decisions by third parties over which we have no control.

We undertake no responsibility or obligation to update publicly these forward-looking statements, except as required by law and may update these statements in the future in written or oral statements. Investors should take note of any future statements made by or on our behalf.

## Market risk

As filed, 5,913 characters.

Our exposure to market risks includes, but is not limited to, the following risks: changes in foreign currency exchange rates, equity price risks, commodity price fluctuations, credit risk, interest rate risk and inflationary risk. We do not use derivative financial instruments as part of an overall strategy to manage market risk.

Further, our participation in the joint venture with Hochschild for the 49.0% interest held at Minera Santa Cruz S.A. (“MSC”) and our 47.7% ownership in McEwen Copper Inc. (“McEwen Copper”), creates additional risks because, among other things, we do not exercise decision-making power over the day-to-day activities at MSC or McEwen Copper; however, implications from our partner’s decisions may result in us having to provide additional funding to MSC or McEwen Copper, or result in a decrease in our percentage of ownership.

### Foreign Currency Risk

During the three months ended June 30, 2024, the Mexican peso depreciated 9.3% against the U.S dollar compared to an 5.1% appreciation in the same period of 2023.

The Canadian dollar experienced a 1.0% depreciation against the U.S. dollar for the three months ended June 30, 2024, compared to a 2.2% appreciation in the comparable period of 2023.

The value of cash and cash equivalents denominated in foreign currencies also fluctuates with changes in currency exchange rates. Appreciation of non-U.S. dollar currencies results in a foreign currency gain on such investments and a depreciation in non-U.S. dollar currencies results in a loss. We hold portions of our cash reserves in non-U.S. dollar currencies.

Our Canadian dollar and Mexican peso cash balance was $26.6 million (CAD 35.0 million) and $0.17 million (MXN 3.1 million), respectively, at June 30, 2024. The effect that a 1.0% change in these respective currencies would result in gains/losses that are immaterial for disclosure. We have not utilized material market risk-sensitive instruments to manage our exposure to the Canadian dollar and Mexican peso exchange rates but may do so in the future.

Further, we are also subject to foreign currency risk on the fluctuation of the Mexican peso on our VAT receivable balance. As of June 30, 2024, our VAT receivable balance was $15.4 million Mexican pesos, equivalent to approximately $0.8 million, for which a 1.0% change in the Mexican peso would have resulted in an immaterial gain/loss in the *Consolidated Statements of Operations.*

### Equity Price Risk

We have invested and may continue to invest in shares of common stock of other entities in the mining sector. Some of our investments may be highly volatile and lack liquidity caused by lower trading volumes. As a result, we are inherently exposed to fluctuations in the fair value of our investments, which may result in gains or losses upon their valuation.

We have in the past sought and will likely in the future seek to acquire additional funding from the sale of common stock or other equity securities. Movements in the price of our common stock have been volatile in the past and may also be volatile in the future. As a result, there is a risk that we may not be able to sell equity securities at an acceptable price to meet future funding requirements.

### Commodity Price Risk

We produce and sell gold and silver. Changes in the market price of gold and silver have and could in the future significantly affect the results of our operations and cash flows. Changes in the price of gold and silver could materially affect our revenues. Based on our revenues from gold and silver sales of $47.5 million for the three months ended June 30, 2024, a 10% change in the price of gold and silver would have had an impact of approximately $4.8 million on our revenues. Changes in the price of gold and silver can also affect the provisionally priced sales that we make under agreements with refiners and other purchasers of our products. At June 30, 2024, we had no gold or silver sales subject to provisional pricing at our 100% owned operations.

We have in the past and may in the future hold a portion of our treasury in gold and silver bullion, where the value is recorded at the lower of cost or market. Gold and silver prices may affect the value of any bullion that we hold in treasury.

We do not hedge any of our sales and are therefore subject to all changes in commodity prices.

### Credit Risk

We may be exposed to credit loss through our precious metals and doré sales agreements with Canadian financial institutions and refineries if these customers are unable to make payment in accordance with the terms of the agreements. However, based on the history and the financial condition of our counterparties, we do not anticipate that any of our customers will default on their obligations. As of June 30, 2024, we do not believe we have any significant credit exposure associated with precious metals and our doré sales agreements.

In Nevada and Ontario, Canada we are required to provide security to cover our projected reclamation costs. As at June 30, 2024, we have surety bonds of $40.6 million in place to satisfy bonding requirements for this purpose. The bonds have an annual fee of 2.3% of their value and require a deposit of 6.1% of the amount of the bond. Although we do not believe we have any significant credit exposure associated with these bonds or the deposit, we are exposed to the risk that the surety may default in returning our deposit or that the surety bonds may no longer be accepted by the governmental agencies as satisfactory reclamation coverage, in which case we would be required to replace the surety bonding with cash.

### Interest rate risk

Our outstanding debt consists of various equipment leases and the $40.0 million debt payable under the Third Amended and Restated Credit Agreement. As the debt is at fixed rates, we consider our interest rate risk exposure to be insignificant at this time.

## Controls and procedures

As filed, 3,527 characters.

### Overview

We are in the process of remediating the material weakness in internal control over financial reporting discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 (as amended, the “Annual Report”), the completion of which should enable the Company’s certifying officers to again confirm the effectiveness of the Company’s disclosure controls and procedures discussed below. During the quarter ended June 30, 2024, the Company made progress in redesigning and adding layers of review concerning its control procedures related to its transactions within inventory, mineral properties, income taxes, and non-routine transactions, including by adding human resources and/or engaging the assistance of third-party resources as deemed appropriate to assist management in its remediation efforts. The newly designed control procedures and additional remediation efforts will be implemented and tested over a sufficient number of instances with the intent to be considered effective in the coming quarters.

### Evaluation of Disclosure Controls and Procedures

During the fiscal period covered by this report, our management, with the participation of the Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, to the extent of the material weakness identified in internal control over financial reporting and previously disclosed in Part II, Item 9A of the Company’s Annual Report that continued to exist as of June 30, 2024, the Company’s disclosure controls and procedures were not effective as of June 30, 2024.

In light of the foregoing, management performed additional analysis and other procedures to ensure that our unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Accordingly, management, including the Chief Executive Officer and Chief Financial Officer, believes that the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial position, results of operations, and cash flows as of and for the periods presented, in accordance with U.S. GAAP.

### Changes in Internal Control Over Financial Reporting

Other than as described above, there was no change in the Company’s internal control over financial reporting during the quarter ended June 30, 2024, that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

### Limitations on Controls and Procedures

All disclosure controls and procedures and internal control over financial reporting processes and systems, no matter how well designed, have inherent limitations. Processes and systems deemed to be effective at any time can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness for future periods are subject to the risk that controls may become inadequate due to changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Company conducts periodic evaluations of its internal controls to enhance, where deemed appropriate, its procedures and controls.

## Risk factors

As filed, 473 characters.

There were no material changes from the risk factors set forth under Part I, Item 1A, Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The risks described in our Annual Report and herein are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, cash flows and/or future results.

Filed Aug 7, 2024.
Source: SEC EDGAR, the filing index for accession 0001558370-24-011396. Last ingested by Listed: Oct 24, 2026, 14:55 ET. No prices; not investment advice.