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

- Company: [McEwen Inc.](/companies/mux.md) (CIK 314203)
- Form: 10-Q
- Filed: 2024-11-05
- Accepted by EDGAR: Nov 5, 2024, 22:26 ET
- Period: 2024-09-30
- Accession: 0001558370-24-014459
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/314203/000155837024014459/mux-20240930x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/314203/000155837024014459/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2024-09-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-07-01 to 2024-09-30 | $52.3m | us-gaap:Revenues |
| Revenue | 9 months, 2024-01-01 to 2024-09-30 | $141.0m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2024-07-01 to 2024-09-30 | $29.7m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months, 2024-01-01 to 2024-09-30 | $86.9m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2024-07-01 to 2024-09-30 | $13.8m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2024-01-01 to 2024-09-30 | $30.6m | us-gaap:GrossProfit |
| Operating income | 3 months, 2024-07-01 to 2024-09-30 | −$97.0k | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2024-01-01 to 2024-09-30 | −$36.0m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2024-07-01 to 2024-09-30 | $814.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2024-01-01 to 2024-09-30 | −$4.1m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-07-01 to 2024-09-30 | −$2.1m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2024-01-01 to 2024-09-30 | −$35.5m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2024-07-01 to 2024-09-30 | −$0.04 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2024-01-01 to 2024-09-30 | −$0.70 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-07-01 to 2024-09-30 | −$0.04 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2024-01-01 to 2024-09-30 | −$0.70 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-07-01 to 2024-09-30 | 51,953,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2024-01-01 to 2024-09-30 | 50,380,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2024-01-01 to 2024-09-30 | $30.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Cash and equivalents | at 2024-09-30 | $29.2m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2024-09-30 | $59.6m | us-gaap:AssetsCurrent |
| Total assets | at 2024-09-30 | $667.8m | us-gaap:Assets |
| Current liabilities | at 2024-09-30 | $50.9m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2024-09-30 | $165.7m | us-gaap:Liabilities |
| Long-term debt | at 2024-09-30 | $40.0m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2024-09-30 | $9.0m | us-gaap:DebtCurrent |
| Shareholders' equity | at 2024-09-30 | $502.1m | us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest |

## Management's discussion and analysis

As filed, 68,910 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 nine months ended September 30, 2024 and compares those to the results for the three and nine months ended September 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 and nine months ended September 30, 2024, and 2023 and to our *Consolidated Balance Sheets* as of September 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 33.

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 September 30, 2024, and 2023 are abbreviated as Q3/24 and Q3/23, respectively, and the reporting periods for the nine months ended September 30, 2024, and 2023 are abbreviated as 9M/24 and 9M/23, respectively.

Disclosed gold equivalent ounces (“GEO”) includes gold and silver ounces calculated based on a gold to silver ratio of 85:1 for Q3/24 and 82:1 for Q3/23, and 85:1 for 9M/24 and 83:1 for 9M/23, which is based on the average per ounce price of gold and silver during each period.

### 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 September 30, 2024, the Company also holds a 48.3% 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 using the equity method of accounting.

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; and CAD refers to Canadian dollars. 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 | 22 |
| Selected Consolidated Financial and Operating Results | 24 |
| Consolidated Performance | 25 |
| Consolidated Operations Review | 25 |
| Liquidity and Capital Resources | 26 |
| Operations Review | 27 |
| United States Segment | 27 |
| Gold Bar mine operating results | 27 |
| Exploration Activities | 28 |
| Timberline Acquisition | 28 |
| Canada Segment | 29 |
| Fox Complex operating results | 29 |
| Exploration Activities | 30 |
| Stock Development Activities | 30 |
| Mexico Segment | 30 |
| Advanced-Stage Properties – Fenix Project | 30 |
| Minera Santa Cruz Segment - Argentina | 31 |
| Minera Santa Cruz operating results | 31 |
| McEwen Copper Segment - Argentina | 32 |
| Los Azules Project | 32 |
| Non-GAAP Financial Performance Measures | 33 |
| Critical Accounting Policies | 38 |
| Forward-looking Statements | 38 |
| Risk Factors Impacting Forward-looking Statements | 39 |

### Q3/24 OPERATING AND FINANCIAL HIGHLIGHTS

Highlights for Q3/2024 are summarized below and discussed further under “Consolidated Performance”:

### Corporate Developments

- On July 12, 2024, McEwen Copper closed an initial tranche of a private placement financing for up to $70.0 million to advance the Los Azules copper project to feasibility, consisting of an investment by McEwen Mining for $14.0 million, and by Rob McEwen, Chairman and Chief Owner, for $5.0 million. McEwen Copper issued 466,667 common shares to McEwen Mining for the aforementioned proceeds. As of September 30, 2024, the Company owned a 48.3% interest in McEwen Copper. Subsequent to quarter end, McEwen Copper closed a second tranche of the offering for $37.0M, including $35.0M from Nuton LLC, a Rio Tinto Venture, and the Company’s ownership interest in McEwen Copper decreased from 48.3% to 46.4%.
- On August 19, 2024, the Company successfully completed its acquisition of all of the issued and outstanding shares of Timberline Resources Corporation (“Timberline”) by way of a merger between Timberline and a wholly owned subsidiary of the Company. As a result, the shares of Timberline ceased trading and were delisted from the TSX Venture Exchange and the OTCQB. This transaction augments McEwen’s existing portfolio of development and exploration projects in Nevada, including properties adjacent to our existing Gold Bar mine with near-term development potential.

### Operational Highlights

- ***Consolidated production of 35,180 GEOs in Q3/24 decreased by 9% compared to 38,613 GEOs in Q3/23.*** During 9M/24, we produced 103,445 GEOs, including 41,290 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 the production performance from the Gold Bar mine.
- ***Consolidated sales of 34,435 GEOs in Q3/24 decreased by 2% compared to 35,244 GEOs in Q3/23.*** During 9M/24, we sold 104,025 GEOs, including 42,241 attributable GEOs from the San José mine(1) compared to 100,859 GEOs sold during 9M/23 including 42,879 attributable GEOs from the San José mine(1).
- ***At the Fox Complex, we produced 7,855 GEOs during Q3/24***, a 30% decrease compared to 11,174 GEOs produced during Q3/23. Production continued to be impacted by a shortfall in development meters in H1/24 due to a stope failure, limiting stope availability in Q3/24. During 9M/24, we produced 23,600 GEOs compared with 34,225 GEOs during 9M/23. While stope availability is expected to improve during Q4/24, resulting in higher GEO production compared to prior quarters in 2024, we expect full year production to be approximately 15% to 20% below our annual production guidance of 40,000 to 42,000 GEOs.
- ***At the Gold Bar Mine, we produced 13,640 GEOs during Q3/24,*** an increase of 43% compared to 9,507 GEOs produced in Q3/23. Despite a 49% decrease in stacked tonnes, higher mined grades and recovery rates compared to prior year improved production significantly. During 9M/24, we produced 37,654 GEOs at the Gold Bar mine, and expect to meet, and potentially exceed, annual production guidance of 40,000 to 43,000 GEOs.
- ***At the San José Mine, Q3/24 production of 13,684 GEOs decreased by 24% compared to 17,932 GEOs during Q3/23.*** Production was impacted by lower than expected mined metal grades, however with additional infill drilling performed during the quarter and availability of new mining areas, grade performance is expected to improve during Q4/24. With 41,290 attributable GEOs produced in 9M/24, we expect the San José mine to meet annual production guidance of 50,000 to 60,000 attributable GEOs(1).
- ***We continued to advance our Los Azules copper project to feasibility.*** While drilling ceased during Argentina’s winter season, the McEwen Copper team remains on track to deliver a feasibility study during the first half of 2025.
- ***We continued to meet safety expectations at our 100% owned operating mines.*** During 9M/24, we did not have any lost-time incidents at our Fox Complex and Gold Bar Mine. Both of our operating mines have operated without lost-time incidents for over four years.

### Financial Highlights

- We reported consolidated cash and cash equivalents of $29.2 million, and consolidated working capital of $8.6 million as at September 30, 2024. (December 31, 2023 – $23.0 million and $22.7 million, respectively).
- Revenue of $52.3 million was reported in Q3/24 from the sale of 21,350 GEOs from our 100% owned operations at an average realized price(2) of $2,499 per GEO. This compares to Q3/23 revenue of $38.4 million from the sale of 20,620 GEOs from our 100% owned operations at a realized price of $1,920 per GEO.
- We reported gross profit of $13.8 million in Q3/24, compared to $3.8 million in Q3/23 from our 100% owned operations. Our increase in revenue that contributed to the increase in gross profit in Q3/24 was slightly offset by higher production costs attributable to sales during the 2024 period.
- Net loss for Q3/24 was $2.1 million, or $0.04 per share, compared to a net loss of $18.5 million for Q3/23, or $0.39 per share. Our results improved primarily due to lower attributable advanced projects expenditures at Los Azules, as well as our higher gross profit described above.
- Adjusted EBITDA(2) for Q3/24 was $10.5 million, or $0.20 per share, compared to Q3/23 adjusted EBITDA of $1.5 million, or $0.03 per share. Adjusted EBITDA excludes the impact of McEwen Copper’s results and reflects the earnings of our operating properties, including the San José mine.
- **Fox Complex unit costs:** Cash costs(2) and AISC(2) per GEO sold in Q3/24 were $1,572 and $1,953, respectively. 9M/24 cash costs and AISC per GEO sold were $1,572 and $1,909, respectively, as compared to annual guidance ranges of $1,225 to $1,325 and $1,450 to $1,550, respectively. Accelerated development costs to improve stope availability for Q4/24 increased unit costs during the third quarter. While we expect production to improve in the fourth quarter, including adding on new production from our Black Fox mine, we expect that unit costs will be 15% to 20% higher than annual guidance.
- **Gold Bar unit costs:** Cash costs(2) and AISC(2) per GEO sold in Q3/24 were $1,281 and $1,822, respectively. 9M/24 cash costs and AISC per GEO sold were $1,302 and $1,548, respectively, as compared to annual guidance of $1,450 to $1,550 and $1,650 to $1,750, respectively. While higher planned stripping costs in Q3/24 increased unit costs, we remain on track to meet our full year cost guidance.
- **San José unit costs:** Cash costs(2) and AISC(2) per GEO sold in Q3/24 were $2,173 and $2,675, respectively. 9M/24 cash costs and AISC per GEO sold were $1,788 and $2,194, respectively, as compared to full year guidance of $1,300 to $1,500 and $1,500 to $1,700, respectively. While Argentine cost inflation remained high, the relative strength of the peso against the US Dollar continued to increase costs in US Dollar terms. Combined with lower than expected mined grades, unit costs were higher than expected. While production is expected to recover in Q4/24 from new mining areas, unit costs are expected to remain above guidance due to macroeconomic factors.

### Exploration and Mineral Resources and Reserves

- McEwen Copper invested $6.1 million at the Los Azules copper project in Argentina during Q3/24 to advance its feasibility study and associated activities. Including amounts spent by Minera Andes Inc. prior to 2012, and McEwen Mining prior to 2021, we have invested over $350 million in exploration expenditures to develop Los Azules as a world-class copper deposit.
- We incurred $1.8 million in exploration expenses at Fox Complex during Q3/24 to advance our Grey Fox project, where we completed 29,918 feet (9,119 meters) of drilling and initiated mineralogical studies to better understand the nature of the mineralization.
- We incurred $3.5 million in exploration expenses at the Gold Bar mine on near-term production targets during Q3/24, including the Cabin, Gold Bar South and Hunter deposits, as well as greenfield targets for mine life extension opportunities.
- During Q4/24, we plan to initiate exploration at newly acquired properties from the Timberline acquisition that closed in August 2024.

#### (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 33.*

### SELECTED CONSOLIDATED FINANCIAL AND OPERATING RESULTS

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

*(in thousands, except per share)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended September 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: |
| Revenue from gold and silver sales (1) | **​** | **$52,250** | ​ | $38,404 | ​ | **$140,954** | ​ | $107,551 |
| Production costs applicable to sales (1) | **​** | **$(29,682)** | ​ | $(26,468) | ​ | **$(86,858)** | ​ | $(80,043) |
| Gross profit (1) | **​** | **$13,803** | ​ | $3,755 | ​ | **$30,572** | ​ | $4,138 |
| Adjusted EBITDA (2) | **​** | **$10,489** | ​ | $1,528 | ​ | **$24,039** | ​ | $(6,730) |
| Adjusted EBITDA per share (2) | **​** | **$0.20** | ​ | $0.03 | ​ | **$0.48** | ​ | $(0.14) |
| Net loss | **​** | **$(2,081)** | ​ | $(18,451) | ​ | **$(35,459)** | ​ | $(83,154) |
| Net loss per share | **​** | **$(0.04)** | ​ | $(0.39) | ​ | **$(0.70)** | ​ | $(1.75) |
| Cash from (used) in operating activities | **​** | **$23,161** | ​ | $(2,280) | ​ | **$30,666** | ​ | $(56,042) |
| Additions to mineral property interests and plant and equipment | **​** | **$19,140** | ​ | $9,319 | ​ | **$30,346** | ​ | $18,277 |

*(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 33.*

*(in thousands, unless otherwise indicated)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ ​ September 30, 2024 | ​ ​ | ​ ​ December 31, 2023 |
| --- | --- | ---: | --- | ---: |
| Cash and cash equivalents | ​ | **$29,226** | ​ | $23,020 |
| Current assets | ​ | **$59,572** | ​ | $52,661 |
| Current liabilities | ​ | **$50,936** | ​ | $30,003 |
| Long-term debt | ​ | **$31,000** | ​ | $40,000 |

*(in thousands, except per ounce)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended September 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| GEOs produced (1) | ​ | ​ **35.2** | ​ | ​ 38.6 | ​ | ​ **103.4** | ​ | ​ 104.7 |
| 100% owned operations | ​ | ​ **21.5** | ​ | ​ 20.7 | ​ | ​ **62.2** | ​ | ​ 58.0 |
| San José mine (49% attributable) | ​ | ​ **13.7** | ​ | ​ 17.9 | ​ | ​ **41.3** | ​ | ​ 46.7 |
| GEOs sold (1) | ​ | ​ **34.4** | ​ | ​ 35.2 | ​ | ​ **104.0** | ​ | ​ 100.9 |
| 100% owned operations | ​ | ​ **21.3** | ​ | ​ 20.6 | ​ | ​ **61.8** | ​ | ​ 58.0 |
| San José mine (49% attributable) | ​ | ​ **13.1** | ​ | ​ 14.6 | ​ | ​ **42.2** | ​ | ​ 42.9 |
| Average realized price ($/GEO) (2)(3) | ​ | **$2,499** | ​ | $1,920 | ​ | **$2,342** | ​ | $1,916 |
| P.M. Fix Gold ($/oz) | ​ | **$2,474** | ​ | $1,928 | ​ | **$2,296** | ​ | $1,930 |
| Cash costs per ounce ($/GEO sold) (2) | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| 100% owned operations | ​ | **$1,390** | ​ | $1,284 | ​ | **$1,406** | ​ | $1,381 |
| San José mine (49% attributable) | ​ | **$2,173** | ​ | $1,445 | ​ | **$1,788** | ​ | $1,505 |
| AISC per ounce ($/GEO sold) (2) | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| 100% owned operations | ​ | **$1,871** | ​ | $1,686 | ​ | **$1,687** | ​ | $1,683 |
| San José mine (49% attributable) | ​ | **$2,675** | ​ | $1,953 | ​ | **$2,194** | ​ | $1,971 |
| Gold : Silver ratio (1) | ​ | **​** **85 : 1** | ​ | ​ 82 : 1 | ​ | **​** **85 : 1** | ​ | ​ 83 : 1 |

*(1) Silver production is presented as a gold equivalent with a gold : silver ratio of 85 : 1 for Q3/24 and 82 : 1 for Q3/23.*

*(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 33.*

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

### CONSOLIDATED PERFORMANCE

Driven by a 36% increase in revenue from $38.4 million in Q3/23 up to $52.3 million in Q3/24, and slightly offset by a 12% increase in production costs, we reported a gross profit of $13.8 million in Q3/24, compared to a gross profit of $3.8 million for Q3/23.

Supported by our improvement in gross profit described above, we reported a net loss of $2.1 million (or $0.04 per share) and adjusted EBITDA of $10.5 million (or $0.20 per share) in Q3/24, compared to a net loss of $18.5 million (or $0.39 per share) and adjusted EBITDA of $1.5 million (or $0.03 per share) in Q3/23.

Production from our 100% owned mines of 21,495 GEOs in Q3/24 increased by 814 GEOs, from 20,681 GEOs produced in Q3/23. At the Gold Bar mine, the production increase of 4,133 GEOs in Q3/24 compared to Q3/23 was attributable to a 21% increase in higher gold grades of stacked mineralized material, and higher heap leach recovery rates. At the Fox Complex, the production decrease of 3,319 GEOs in Q3/24 compared to Q3/23 was driven by a 9% decrease in tonnes processed and a 21% decrease in average head grades processed.

Our attributable share of San José mine production was 13,684 GEOs in Q3/24, or 24% lower than the 17,932 GEOs produced in Q3/23. The decrease was primarily driven by temporary lower than expected metal grades mined and processed.

### CONSOLIDATED OPERATIONS REVIEW

*Revenue from gold and silver sales* from 100% owned operations increased to $52.3 million in Q3/24, compared to $38.4 million in Q3/23 due to higher average realized gold prices and consolidated gold sales, as described above. Our average realized gold price in Q3/24 was $2,499 per GEO, compared to $1,920 per GEO in Q3/23.

*Production costs applicable to sales* increased to $29.7 million in Q3/24, compared to $26.5 million in Q3/23. Production costs increased primarily at Gold Bar compared to prior year, driven by higher mining rates and contractor unit costs.

*Advanced project costs* were $2.5 million in Q3/24, compared to $20.4 million in Q3/23. Advanced project costs primarily relate to the Fenix Project in both Q3/23 and Q3/24, and Los Azules in Q3/23. 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 $5.3 million in Q3/24, compared to $4.7 million in Q3/23. Exploration expenditures focused on the Grey Fox project at the Fox Complex, and on near-term production targets and mine life extension opportunities at Gold Bar.

*Loss from investment in MSC*: During Q3/24 we recorded a loss of $1.2 million, compared to a loss of $2.7 million in Q3/23. 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:* During Q3/24 we recorded a loss of $1.9 million representing our attributable portion of the costs of McEwen Copper to advance the Los Azules project to feasibility. Prior to Q4/23, the financial results of McEwen Copper were consolidated. 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 $1.1 million in Q3/24, a $11.4 million decrease compared to income of $10.3 million in Q3/23. During Q3/23, interest and other finance income was impacted by the consolidation of McEwen Copper’s financial results, which included income earned from its investments of cash reserves not immediately required for exploration activities.

*Other expense* was $0.1 million in Q3/24, compared to an expense of $10.1 million in Q3/23. The increase was primarily attributable to a decrease in foreign exchange losses following the deconsolidation of McEwen Copper, as a sizable portion of its treasury was held in Argentine pesos during Q3/23.

*Income and mining tax expense* was $0.8 million in Q3/24, compared to a recovery of $0.2 million in Q3/23. The decrease was primarily due to the Nevada net proceeds tax, partially offset by adjustments in temporary tax differences related to our McEwen Copper investment and the amortization of the flow-through share premium.

### LIQUIDITY AND CAPITAL RESOURCES

Our cash, cash equivalents and restricted cash balance increased by $4.8 million during 2024, from $27.5 million as at December 31, 2023 to $32.3 million as at September 30, 2024.

Cash from operating activities of $30.7 million during 9M/24 reflects the net loss of $35.5 million for the period, adjusted for non-cash impacts, including net losses from equity method investments of $31.9 million, depreciation, amortization, and depletion of $24.0 million, income and mining tax recovery of $6.3 million, an increase in non-cash working capital of $12.5 million, stock-based compensation of $2.1 million, and reclamation accretion and adjustments to estimate of $1.1 million. Further details are provided in the *Consolidated Statements of Cash Flows.*

Cash used in investing activities of $45.1 million during 9M/24 consisted of additions to mineral property interests and plant and equipment of $30.3 million, driven primarily by capital development at the Fox Complex, and the investment of an additional $14.0 million in McEwen Copper during the 2024 period, notes receivable acquired of $1.9 million. This was slightly offset by $1.1 million of cash and restricted cash received from the acquisition of Timberline.

Cash provided by financing activities of $19.5 million during 9M/24 consisted of proceeds from the issuance of flow-through common shares of $20.4 million in June 2024, offset by finance lease payments of $0.9 million.

Working capital as at September 30, 2024 was $8.6 million, and decreased by 62% from $22.7 million as at December 31, 2023. The decrease in working capital was driven by the reclassification of $9.0 million of long-term debt to current liabilities, an increase in accounts payables and accrued liabilities of $6.2 million, a $4.7 million increase in flow-through share premium liabilities, offset by a $6.2 million increase in cash and cash equivalents described above, and a $0.7 million increase in other current assets.

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 nine months ended September 30, 2024, and 2023:

*(in thousands, unless otherwise indicated)*

| ​ ​ ​ Operating Results | ​ ​ ​ | ​ ​ Three months ended September 30, 2024 | ​ | ​ ​ ​ 2023 | ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mined mineralized material (t) |  | ​ **381** |  | ​ 737 |  | ​ **1,709** |  | ​ 1,796 |
| Average grade (g/t Au) |  | ​ **0.83** |  | ​ 0.87 |  | ​ **0.88** |  | ​ 0.83 |
| Stacked mineralized material (t) |  | ​ **306** |  | ​ 604 |  | ​ **1,636** |  | ​ 1,661 |
| Average grade (g/t Au) |  | ​ **0.84** |  | ​ 0.69 |  | ​ **0.89** |  | ​ 0.77 |
| Gold ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **13.6** |  | ​ 9.5 |  | ​ **37.6** |  | ​ 23.9 |
| Sold |  | ​ **13.3** |  | ​ 9.4 |  | ​ **38.0** |  | ​ 23.8 |
| Silver ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **0.1** |  | ​ 0.2 |  | ​ **0.4** |  | ​ 0.5 |
| Sold |  | ​ **0.7** |  | ​ 0.3 |  | ​ **0.7** |  | ​ 0.7 |
| GEOs: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **13.6** |  | ​ 9.5 |  | ​ **37.7** |  | ​ 23.8 |
| Sold |  | ​ **13.3** |  | ​ 9.4 |  | ​ **38.0** |  | ​ 23.8 |
| Revenue from gold and silver sales | ​ | **$33,251** | ​ | $17,967 | ​ | **$88,215** | ​ | $45,526 |
| Cash costs (1) | ​ | **$17,078** | ​ | $14,399 | ​ | **$49,515** | ​ | $41,446 |
| Cash costs per ounce ($/GEO sold) (1) | ​ | **$1,281** | ​ | $1,529 | ​ | **$1,302** | ​ | $1,743 |
| All‑in sustaining costs (1) | ​ | **$24,293** | ​ | $20,342 | ​ | **$58,860** | ​ | $52,392 |
| AISC per ounce ($/GEO sold) (1) | ​ | **$1,822** | ​ | $2,160 | ​ | **$1,548** | ​ | $2,203 |
| Gold : Silver ratio | ​ | **85 : 1** | ​ | 82 : 1 | ​ | **85 : 1** | ​ | 83 : 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 33 for additional information.*

#### Q3/24 compared to Q3/23

The Gold Bar mine produced 13,640 GEOs in Q3/24, representing a 43% increase from 9,507 GEOs produced in Q3/23. The increase in quarterly production was a result of higher average gold grades in stacked material of 0.84 g/t Au in Q3/24 compared to 0.69 g/t Au in Q3/23, as well as higher recoveries realized during Q3/24 from previously stacked material.

*Revenue from gold and silver sales* increased 85% to $33.3 million in Q3/24, compared to $18.0 million in Q3/23. The increase in revenue was the result of higher GEOs sold during Q3/24 of 13,333 GEOs in Q3/24 compared to 9,420 GEOs in Q3/23 along with a higher average realized gold price of $2,499 per GEO in Q3/24 compared with $1,920 per GEO in Q3/23.

*Production costs applicable to sales* increased 19% to $17.1 million in Q3/24 from $14.4 million in Q3/23. Higher mining rates, including for stripping, and contractor unit costs contributed to the increase in year-over-year costs.

*Cash costs* and *AISC* per GEO sold in Q3/24 were $1,281 and $1,822 respectively, compared to $1,529 and $2,160 in Q3/23, respectively. Unit costs generally improved due to the higher GEOs sold in Q3/24 relative to Q3/23, offset by higher mining costs, including for capital development.

#### Exploration Activities

At the Gold Bar mine, exploration activities focused on near-mine mine life extension opportunities at Cabin Creek, Gold Bar South and Hunter.

In Q3/24, exploration at the Cabin Creek pit included drilling and updating of the resource model to evaluate the economic feasibility of mining shallow oxide resources in 2025. Assays from this drilling returned 90 feet of oxidized gold mineralization grading 0.63 g/t, starting at a depth of 105 feet. Additional holes were drilled late in the quarter, to fill in data gaps in the model and extend open mineralization. Drilling is expected to continue into Q4/24.

At Gold Bar South, results from the North Zone drilling confirmed expansion of the near-surface gold resource. In the East Deep Zone, additional holes drilled during Q3/24 extended higher-grade oxidized gold mineralization along ENE-trending structural zones. This deeper mineralization remains open to the east and plans are being made for additional drilling.

At the Hunter exploration target, additional core drilling completed in Q3/24 defined the outer edges of the deposit and provided data to construct a geologic model in preparation for resource modelling. Development of the Hunter target is expected to result in production for 2026 onwards.

#### Timberline Acquisition

During August 2024, we closed the acquisition of Timberline Resources Corporation, which holds several exploration projects in Nevada, USA, two of which are located near current operations at the Gold Bar mine and have medium-term development potential. An initial phase of exploration is expected to begin at the historic Windfall project during Q4/24.

### Canada Segment

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

#### Fox Complex

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

*(in thousands, unless otherwise indicated)*

| ​ ​ ​ Operating Results | ​ ​ ​ | ​ ​ Three months ended September 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mined mineralized material (t) |  | ​ **89** |  | ​ 95 |  | ​ **241** |  | ​ 296 |
| Average grade (g/t Au) |  | ​ **2.78** |  | ​ 3.41 |  | ​ **2.91** |  | ​ 3.50 |
| Processed mineralized material (t) |  | ​ **105** |  | ​ 116 |  | ​ **315** |  | ​ 337 |
| Average grade (g/t Au) |  | ​ **2.52** |  | ​ 3.19 |  | ​ **2.55** |  | ​ 3.48 |
| Gold ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **7.8** |  | ​ 11.2 |  | ​ **23.6** |  | ​ 34.2 |
| Sold, excluding stream | ​ | ​ **7.4** | ​ | ​ 10.3 | ​ | ​ **21.8** | ​ | ​ 31.5 |
| Sold, stream |  | ​ **0.6** |  | ​ 0.9 |  | ​ **1.9** |  | ​ 2.7 |
| Sold, including stream | ​ | ​ **8.0** | ​ | ​ 11.2 | ​ | ​ **23.7** | ​ | ​ 34.2 |
| Silver ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **0.9** |  | ​ 1.4 |  | ​ **3.4** |  | ​ 4.2 |
| Sold |  | ​ **1.4** |  | ​ 1.5 |  | ​ **4.3** |  | ​ 4.7 |
| GEOs: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **7.9** |  | ​ 11.2 |  | ​ **23.6** |  | ​ 34.2 |
| Sold, excluding stream | ​ | ​ **7.4** | ​ | ​ 10.3 | ​ | ​ **21.8** | ​ | ​ 31.5 |
| Sold | ​ | ​ **8.0** | ​ | ​ 11.2 | ​ | ​ **23.8** | ​ | ​ 34.2 |
| Revenue from gold and silver sales | ​ | **$18,999** | ​ | $20,259 | ​ | **$51,539** | ​ | $61,847 |
| Cash costs (1) | ​ | **$12,604** | ​ | $12,069 | ​ | **$37,343** | ​ | $38,597 |
| Cash costs per ounce ($/GEO sold) (1) | ​ | **$1,572** | ​ | $1,078 | ​ | **$1,572** | ​ | $1,129 |
| All‑in sustaining costs (1) | ​ | **$15,660** | ​ | $14,420 | ​ | **$45,341** | ​ | $45,178 |
| AISC per ounce ($/GEO sold) (1) | ​ | **$1,953** | ​ | $1,288 | ​ | **$1,909** | ​ | $1,321 |
| Gold : Silver ratio | ​ | **85 : 1** | ​ | 82 : 1 | ​ | **85 : 1** | ​ | 83 : 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 33 for additional information.*

#### Q3/24 compared to Q3/23

The Fox Complex produced 7,855 GEOs from the Froome mine in Q3/24, which represented a 30% decrease from the 11,174 GEOs produced in Q3/23. Mine production was affected by a shortfall in development meters in H1/24 due to a stope failure, limiting stope availability in Q3/24 and negatively impacting planned mined and milled gold grades. Additional development was completed during Q3/24 to accelerate stope availability in Q4/24, including at our historic Black Fox underground mine.

*Revenue from gold sales* was $19.0 million in Q3/24, a decrease of $1.3 million compared to $20.3 million in Q3/23, A 28% decrease in GEOs sold was largely offset by an increase in the average realized gold price from $1,920 per GEO in Q3/23 to $2,499 per GEO in Q3/24. 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 and Black Fox mines at $601 per ounce as of Q3/24.

*Production costs applicable to sales* were $12.6 million, which increased in Q3/24 by $0.5 million from $12.1 million in Q3/23, driven primarily by higher mining contractor and labor costs required to complete work at Black Fox.

*Cash costs* and *AISC per GEO sold* were $1,572 and $1,953 in Q3/24, respectively, compared to $1,572 and $1,909 in Q3/23, respectively. The increase in unit costs was driven primarily by lower GEOs sold as described above, as well as accelerated capital development costs to increase stope availability in respect of AISC.

#### Exploration Activities

During Q3/24, $1.8 million was incurred primarily for exploration at the Grey Fox property. This included 29,918 feet (9,119 meters) of drilling at Grey Fox as well as the initiation of a mineralogical study, including laser-induced breakdown spectroscopy, of lithologies at the Gibson and Whiskey Jack zones at Grey Fox to better understand the nature of the mineralization. An infill geophysics program will be conducted at Grey Fox in Q4/24 to check for Black Fox-style mineralization believed to be below Grey Fox.

#### Stock Development Activities

During 9M/24, we invested $5.5 million in developing our Stock project. Earthworks have been completed in preparation for our mine portal construction later in 2024, with the objective of driving a ramp from the Stock East to the Stock West zones. We are also reviewing engineering plans for rehabilitation of the historic Stock shaft in 2025 to provide alternative means of access to the Stock ore bodies.

### 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. We are currently awaiting the renewal of key mining permits prior to a construction decision.

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.

### 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. Hochschild is the majority owner and operator of the San José mine.

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

*(in thousands, except otherwise indicated)*

| ​ ​ ​ Operating Results San José Mine—100% basis | ​ ​ ​ ​ | ​ ​ Three months ended September 30, 2024 ​ ​ | ​ ​ | ​ ​ 2023 ​ ​ | ​ ​ ​ | ​ ​ Nine months ended September 30, 2024 ​ ​ | ​ ​ | ​ ​ 2023 ​ ​ |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Stacked mineralized material (t) |  | ​ **171** |  | ​ 152 |  | ​ **467** |  | ​ 390 |
| Average grade mined (g/t) | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Gold |  | ​ **4.0** |  | ​ 5.0 |  | ​ **3.7** |  | ​ 4.9 |
| Silver |  | ​ **241** |  | ​ 269 |  | ​ **225** |  | ​ 270 |
| Processed mineralized material (t) |  | ​ **152** |  | ​ 153 |  | ​ **421** |  | ​ 425 |
| Average grade processed (g/t) | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Gold |  | ​ **3.9** |  | ​ 5.2 |  | ​ **4.3** |  | ​ 4.9 |
| Silver |  | ​ **227** |  | ​ 271 |  | ​ **244** |  | ​ 260 |
| Average recovery (%): | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Gold |  | ​ **86.2** |  | ​ 87.1 |  | ​ **86.5** |  | ​ 85.7 |
| Silver |  | ​ **86.9** |  | ​ 88.9 |  | ​ **87.4** |  | ​ 87.4 |
| Gold ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **16.6** |  | ​ 22.1 |  | ​ **50.1** |  | ​ 57.1 |
| Sold |  | ​ **15.8** |  | ​ 18.0 |  | ​ **51.3** |  | ​ 51.5 |
| Silver ounces: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **965** |  | ​ 1,184 |  | ​ **2,895** |  | ​ 3,125 |
| Sold |  | ​ **928** |  | ​ 994 |  | ​ **2,957** |  | ​ 2,979 |
| GEOs: | ​ | ​ **​** | ​ | ​ ​ | ​ | ​ **​** | ​ | ​ ​ |
| Produced |  | ​ **27.9** |  | ​ 36.6 |  | ​ **84.3** |  | ​ 95.3 |
| Sold |  | ​ **26.7** |  | ​ 29.8 |  | ​ **86.2** |  | ​ 87.5 |
| Revenue from gold and silver sales | ​ | **$70,361** | ​ | $64,495 | ​ | **$210,636** | ​ | $179,443 |
| Average realized price: | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| Gold ($/Au oz) | ​ | **$2,639** | ​ | $2,138 | ​ | **$2,445** | ​ | $2,044 |
| Silver ($/Ag oz) | ​ | **$30.83** | ​ | $26.08 | ​ | **$28.82** | ​ | $24.88 |
| Cash costs (1) | ​ | **$58,031** | ​ | $43,380 | ​ | **$154,136** | ​ | $131,434 |
| Cash costs per ounce sold ($/GEO) (1) | ​ | **$2,173** | ​ | $1,445 | ​ | **$1,788** | ​ | $1,505 |
| All‑in sustaining costs (1) | ​ | **$71,434** | ​ | $58,617 | ​ | **$189,128** | ​ | $172,052 |
| AISC per ounce sold ($/GEO) (1) | ​ | **$2,675** | ​ | $1,953 | ​ | **$2,194** | ​ | $1,971 |
| Gold : Silver ratio | ​ | ​ **85 : 1** | ​ | 82 : 1 | ​ | **85 : 1** | ​ | 83 : 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 33 for additional information.*

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

#### Q3/24 compared to Q3/2023

On a 100% basis, the San José mine produced 27,927 GEOs in Q3/24, compared to 36,597 in Q3/23. The decrease in GEOs produced was driven by a 24% and 16% decrease in gold and silver head grades processed, respectively.

*Revenue from gold and silver sales* was $70.4 million in Q3/24, compared to $64.5 million in Q3/23. The increase was driven by a higher average realized gold price per ounce of $2,639/oz gold in Q3/24 compared with $2,138/oz gold in Q3/23, and offset by an 11% decrease in GEOs sold.

*Production costs applicable to sales* were $58.0 million during Q3/24, compared to $43.4 million during Q3/23. While cost inflation remained high from an Argentine perspective, the relative strength of the peso against the US Dollar continued to increase costs in US Dollar terms.

*Cash costs* and *AISC* per GEO sold were $2,173 and $2,675 in Q3/24, respectively, compared to $1,445 and $1,953 in Q3/23, respectively. Negative foreign exchange impacts, combined with temporary lower than expected mined grades, resulted in higher than expected unit costs.

#### Investment in MSC

Our 49% attributable share of operations from our investment in MSC in Q3/24 resulted in a loss of $1.2 million, compared to a loss of $2.7 million in Q3/23. Despite higher than planned unit costs, the metals price environment has allowed the operation to strengthen its liquidity, improving its working capital balance to $75.5 million as at September 30, 2024, while also investing $8.5 million in exploration expenditures and $3.5 million in mill expansion costs during 2024.

### McEwen Copper Inc.

As of September 30, 2024, we own a 48.3% interest in McEwen Copper, 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 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 copper deposits and is located in the Province of San Juan, Argentina.

During the nine months ended September 30, 2024, Los Azules spent $91.9 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 completed in June 2025, and the completion of geological and hydrological models. Our feasibility study is expected to be published towards during the first half of 2025.

#### 2023-2024 Assay Results

At Los Azules, infill drilling has upgraded resource classifications, validated the geological model, and confirmed the high-grade zone. During the 2023-24 drilling season, over 70,000 meters (m) were completed, enhancing the interpretation of the geological model and extending mineralization of the supergene enrichment zone both at its edges and at depth. Drill highlights include:

- 217 m of 1.11 % Cu, including 100 m of 1.32 % Cu (Hole AZ24375)
- 158 m of 0.84 % Cu, including 78.5 m of 1.10 % Cu (Hole AZ24335)
- 276 m of 0.86 % Cu, including 160 m of 0.96 % Cu (Hole AZ24403)
- 146 m of 0.89 % Cu , within the enriched zone (Hole AZ24320)
- 119.6 m of 0.72 % Cu , within the enriched zone (Hole AZ24332)
- 257 m of 0.76% Cu, within the enriched zone (Hole AZ23205MET)
- 446 m of 0.63% Cu, including 76 m of 0.92% Cu (Hole AZ23228MET)
- 250 m of 0.68% Cu, in the Enriched zone, including 192 m of 0.83% Cu (Hole AZ23230MET)
- 349 m of 0.77% Cu, including 232 m of 0.86% Cu in the Enriched zone (Hole AZ23292)
- 383 m of 0.54% Cu, including 74 m of 0.86% Cu in the Enriched zone (Hole AZ23277)

The 2023-2024 drill campaign successfully met its objectives by infilling existing drill hole data to facilitate the conversion of resources to Measured or Indicated Mineral Resources for inclusion in the Los Azules Feasibility Study. Additionally, the campaign included geotechnical, metallurgical, hydrogeological, and condemnation drilling.

Further details on our assay results were included in our press releases dated February 26, 2024, May 16, 2024, and August 8, 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.

#### Energy Supply Contract

McEwen Copper Inc. has reached an agreement with YPF Luz to power its Los Azules copper project in San Juan, Argentina, with renewable energy. The companies signed a Memorandum of Understanding to negotiate the energy supply, which will come from YPF Luz’s renewable assets connected to the Argentine Interconnection System. YPF Luz will also develop, construct, and finance a high-voltage transmission line to connect the project to the grid, ensuring a sustainable energy supply for the copper project.

#### Regime of Incentives for Investment (RIGI)

The Regime of Incentives for Investment aims to attract domestic and foreign investment to a number of sectors in Argentina, including mining, enhancing resource exploration and production while creating job opportunities and increasing energy security. The regime offers various benefits to companies, including reduced income tax rates, stability agreements for a predictable regulatory environment, and legal protections for investments. Additionally, RIGI facilitates access to mineral and energy resources providing clearer regulatory guidelines, and ensuring that companies can secure the necessary permits and licenses to operate, and provides a stable framework that reduces investment risks.

The fiscal and financial tax benefits associated with the RIGI are expected to lead to a significant enhancement of the overall economics of the Los Azules project, positively impacting both its net present value and internal rate of return.

### 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 mine, 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 costs, cash cost per ounce, all-in sustaining costs, all-in sustaining cost per ounce, adjusted EBITDA 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 September 30, 2024 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total | ​ ​ ​ ​ | ​ ​ Nine months ended September 30, 2024 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **Production costs applicable to sales (100% owned)** |  | $17,078 | ​ | $12,604 | ​ | **$29,682** | ​ | $49,515 | ​ | $37,343 | ​ | **$86,858** |
| Mine site reclamation, accretion and amortization | ​ | ​ 328 | ​ | ​ 162 | ​ | **​** **490** | ​ | ​ 943 | ​ | ​ 433 | ​ | **​** **1,376** |
| In‑mine exploration | ​ | ​ 165 | ​ | ​ — | ​ | **​** **165** | ​ | ​ 647 | ​ | ​ — | ​ | **​** **647** |
| Capitalized mine development (sustaining) | ​ | ​ 5,246 | ​ | ​ 2,870 | ​ | **​** **8,116** | ​ | ​ 5,246 | ​ | ​ 7,275 | ​ | **​** **12,521** |
| Capital expenditures on plant and equipment (sustaining) | ​ | ​ 1,459 | ​ | ​ — | ​ | **​** **1,459** | ​ | ​ 2,438 | ​ | ​ — | ​ | **​** **2,438** |
| Sustaining leases | ​ | ​ 17 | ​ | ​ 24 | ​ | **​** **41** | ​ | ​ 70 | ​ | ​ 290 | ​ | **​** **360** |
| **All‑in sustaining costs** | **​** | $24,293 | ​ | $15,660 | ​ | **$39,953** | ​ | $58,860 | ​ | $45,341 | ​ | **$104,200** |
| Ounces sold, including stream (GEO) | ​ | ​ 13.3 | ​ | ​ 8.0 | ​ | **​** **21.3** | ​ | ​ 38.0 | ​ | ​ 23.8 | ​ | **​** **61.8** |
| **Cash cost per ounce sold ($/GEO)** | ​ | $1,281 | ​ | $1,572 | ​ | **$1,390** | ​ | $1,302 | ​ | $1,572 | ​ | **$1,406** |
| **AISC per ounce sold ($/GEO)** | ​ | $1,822 | ​ | $1,953 | ​ | **$1,871** | ​ | $1,548 | ​ | $1,909 | ​ | **$1,687** |

*(in thousands, except per ounce)*

*(in thousands, except per ounce)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended September 30, 2023 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total | ​ ​ ​ ​ | ​ ​ Nine months ended September 30, 2023 Gold Bar | ​ ​ | ​ ​ Fox Complex | ​ ​ | ​ ​ Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Production costs applicable to sales - Cash costs (100% owned) | ​ | $14,399 | ​ | $12,069 | ​ | $26,468 | ​ | $41,446 | ​ | $38,597 | ​ | $80,043 |
| Mine site reclamation, accretion and amortization | ​ | ​ — | ​ | ​ — | ​ | ​ — | ​ | ​ — | ​ | ​ — | ​ | ​ — |
| 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 | ​ | $20,342 | ​ | $14,420 | ​ | $34,762 | ​ | $52,392 | ​ | $45,178 | ​ | $97,570 |
| Ounces sold, including stream (GEO) | ​ | ​ 9.4 | ​ | ​ 11.2 | ​ | ​ 20.6 | ​ | ​ 23.8 | ​ | ​ 34.2 | ​ | ​ 58.0 |
| Cash cost per ounce sold ($/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 |

*(in thousands, except per ounce)*

| ​ ​ ​ San José mine cash costs (100% basis) | ​ ​ ​ | ​ ​ Three months ended September 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | ---: | --- | --- | --- | --- | --- | --- |
| **Production costs applicable to sales - Cash costs** | ​ | **$58,031** | ​ | $43,380 | ​ | **$154,136** | ​ | $131,434 |
| Mine site reclamation, accretion and amortization | ​ | **​** **338** | ​ | ​ — | ​ | **​** **1,003** | ​ | ​ 386 |
| Site exploration expenses | ​ | **1,605** | ​ | ​ 2,538 | ​ | **​** **4,926** | ​ | ​ 7,336 |
| Capitalized underground mine development (sustaining) | ​ | **7,045** | ​ | ​ 11,890 | ​ | **​** **21,425** | ​ | ​ 27,939 |
| Less: Depreciation | ​ | **​** **(616)** | ​ | ​ (909) | ​ | **​** **(2,036)** | ​ | ​ (2,162) |
| Capital expenditures (sustaining) | ​ | **5,031** | ​ | ​ 1,718 | ​ | **​** **9,674** | ​ | ​ 7,119 |
| **All‑in sustaining costs** | **​** | **$71,434** | ​ | $58,617 | ​ | **$189,128** | ​ | $172,052 |
| Ounces sold (GEO) | ​ | ​ **26.7** | ​ | ​ 29.8 | ​ | **​** **86.2** | ​ | ​ 87.5 |
| **Cash cost per ounce sold ($/GEO)** | **​** | **$2,173** | ​ | $1,445 | **​** | **$1,788** | **​** | $1,505 |
| **AISC per ounce sold ($/GEO)** | ​ | **$2,675** | ​ | $1,953 | ​ | **$2,194** | ​ | $1,971 |

#### 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)*

| ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended September 30, 2024 | ​ | ​ ​ 2023 | ​ ​ ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net loss before income and mining taxes | ​ | **$(1,267)** | ​ | $(28,617) | ​ | **$(39,578)** | ​ | $(110,873) |
| Less: | ​ | **​** **​** | ​ | ​ ​ | ​ | **​** **​** | ​ | ​ ​ |
| Depreciation and depletion | ​ | **​** **8,921** | ​ | ​ 8,506 | ​ | **​** **24,009** | ​ | ​ 24,286 |
| Loss from investment in McEwen Copper Inc. (Note 9) | ​ | **​** **1,852** | ​ | ​ — | ​ | **​** **36,680** | ​ | ​ — |
| Advanced Projects – McEwen Copper Inc. | ​ | **​** **—** | ​ | ​ 18,478 | ​ | **​** **—** | ​ | ​ 78,883 |
| General, interest and other – McEwen Copper Inc. | ​ | **​** **—** | ​ | ​ 2,179 | ​ | **​** **—** | ​ | ​ (3,033) |
| Interest expense | ​ | **​** **983** | ​ | ​ 982 | ​ | **​** **2,928** | ​ | ​ 4,007 |
| Adjusted EBITDA | ​ | **$10,489** | ​ | $1,528 | ​ | **$24,039** | ​ | $(6,730) |
| Weighted average shares outstanding (thousands) | ​ | **​** **51,953** | ​ | ​ 47,471 | ​ | **​** **50,380** | ​ | ​ 47,442 |
| Adjusted EBITDA per share | ​ | **$0.20** | ​ | $0.03 | ​ | **$0.48** | ​ | $(0.14) |

#### 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 September 30, 2024 ​ | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue from gold and silver sales | ​ | **$52,250** | ​ | $38,404 | ​ | **$140,954** | ​ | $107,551 |
| Less: revenue from gold sales, stream | ​ | **​** **349** | ​ | ​ 527 | ​ | **​** **1,283** | ​ | ​ 1,567 |
| Revenue from gold and silver sales, excluding stream | ​ | **$51,901** | ​ | $37,877 | ​ | **$139,671** | ​ | $105,984 |
| GEOs sold | ​ | **​** **21.3** | ​ | ​ 20.6 | ​ | **​** **61.8** | ​ | ​ 58.0 |
| Less: gold ounces sold, stream | ​ | **​** **0.6** | ​ | ​ 0.9 | ​ | **​** **2.1** | ​ | ​ 2.7 |
| GEOs sold, excluding stream | ​ | **​** **20.8** | ​ | ​ 19.7 | ​ | **​** **59.6** | ​ | ​ 55.3 |
| Average realized price per GEO sold, excluding stream | ​ | **$2,499** | ​ | $1,920 | ​ | **$2,342** | ​ | $1,916 |

*(in thousands, except per ounce)*

| ​ ​ ​ Average realized price - San José mine (100% basis) | ​ ​ ​ | ​ ​ Three months ended September 30, 2024 | ​ | ​ ​ 2023 | ​ ​ | ​ ​ Nine months ended September 30, 2024 | ​ | ​ ​ 2023 |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: |
| Gold sales | ​ | **$41,739** | ​ | $38,563 | ​ | **$125,422** | ​ | $105,319 |
| Silver sales | ​ | **​** **28,622** | ​ | 25,932 | ​ | **​** **85,214** | ​ | 74,124 |
| Gold and silver sales | ​ | **$70,361** | ​ | $64,495 | ​ | **$210,636** | ​ | $179,443 |
| Gold ounces sold | ​ | **15.8** | ​ | 18.0 | ​ | **​** **51.3** | ​ | 51.5 |
| Silver ounces sold | ​ | **928** | ​ | 994 | ​ | **​** **2,957** | ​ | 2,979 |
| GEOs sold | ​ | **26.7** | ​ | 30.0 | ​ | **​** **86.2** | ​ | 87.3 |
| Average realized price per gold ounce sold | ​ | **$2,639** | ​ | $2,138 | ​ | **$2,445** | ​ | $2,044 |
| Average realized price per silver ounce sold | ​ | **$30.83** | ​ | $26.08 | ​ | **$28.82** | ​ | $24.88 |
| Average realized price per GEO sold | ​ | **$2,635** | ​ | $2,149 | ​ | **$2,443** | ​ | $2,055 |

### 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 the negative of these terms or similar expressions used in this report or incorporated by reference in this report, but the absence of these terms does not mean that a statement is not forward-looking.

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.
- our acquisitions may not achieve their intended results. 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, 5,711 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 MSC and our 48.3% ownership in McEwen Copper as of September 30, 2024, 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 further decrease in our percentage of ownership.

### Foreign Currency Risk

The Company is exposed to foreign currency risks directly through exposure to the Mexican peso and Canadian dollar, and indirectly through exposure to the Argentine peso through our investments in MSC and McEwen Copper.

During the three months ended September 30, 2024, the Mexican peso depreciated 7% against the U.S dollar, compared to an 1.5% depreciation in the same period of 2023.

The Canadian dollar experienced a 1.2% appreciation against the U.S. dollar for the three months ended September 30, 2024, compared to a 2.1% depreciation 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 balances were $6.8 million (CAD 9.2 million) and $0.5 million (MXN 9.8 million), respectively, as at September 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.

### 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 investments 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 will 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 $52.3 million for the three months ended September 30, 2024, a 10% change in the price of gold and silver would have had an impact of approximately $5.2 million on our revenues. Changes in the price of gold and silver can also affect the provisionally priced sales that we make under sales agreements. At September 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 will 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 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 September 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 September 30, 2024, we have surety bonds of $44.8 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, 3,540 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 September 30, 2024, the Company continued to make 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 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 tested over a sufficient number of instances with the intent to be considered effective in the coming quarter.

### 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 September 30, 2024, the Company’s disclosure controls and procedures were not effective as of September 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 September 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, 515 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, herein and other reports we have filed with the SEC 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 Nov 5, 2024.
Source: SEC EDGAR, the filing index for accession 0001558370-24-014459. Last ingested by Listed: Oct 24, 2026, 14:55 ET. No prices; not investment advice.