Business Context and Reporting Period
Company: McEwen Inc. (formerly McEwen Mining Inc.)
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Quarter and six months ended June 30, 2026
Operations: Production and sale of gold and silver; development and exploration of copper, gold, and silver properties in North and South America. Key assets include the Gold Bar Mine Complex (USA), Fox Complex (Canada), El Gallo (Mexico), and equity interests in Minera Santa Cruz S.A. (MSC) and McEwen Copper Inc.
Key Financial Metrics
| Metric (in thousands USD) | Q2 2026 | Q2 2025 | H1 2026 | H1 2025 |
|---|---|---|---|---|
| Revenue (Gold/Silver Sales) | $59,234 | $46,700 | $133,283 | $82,396 |
| Gross Profit | $20,080 | $12,281 | $51,575 | $22,351 |
| Net Income (Loss) | $9,606 | $3,040 | $42,985 | $(3,230) |
| Diluted EPS | $0.14 | $0.06 | $0.61 | $(0.06) |
| Operating Cash Flow | N/A | N/A | $58,324 | $(1,454) |
| Cash & Equivalents (Balance) | $78,883 | N/A | $78,883 | N/A |
| Total Debt (Long-term + Current) | $126,572 | N/A | $126,572 | N/A |
Note: Q2 Operating Cash Flow is not explicitly provided in the summary tables; H1 2026 Operating Cash Flow was $58.3 million.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 27% in Q2 2026 and 62% in H1 2026 compared to prior year periods, driven primarily by a 35% increase in average realized gold prices ($4,454/oz in Q2 2026 vs. $3,298/oz in Q2 2025).
- Profitability: Net income turned from a loss of $3.2 million in H1 2025 to a profit of $43.0 million in H1 2026. This was driven by higher gross profit and a significant swing in equity method investment income (from a $11.5M loss in H1 2025 to a $41.6M gain in H1 2026).
- Production Volume: Consolidated production increased to 30,872 Gold Equivalent Ounces (GEOs) in Q2 2026 from 27,554 GEOs in Q2 2025. However, Gold Bar Mine production decreased 31% due to a one-month lab shutdown and geological complexities.
- Acquisitions: Completed acquisitions of Canadian Gold Corp. (Tartan Lake project) and Golden Lake Exploration Inc. in early 2026, adding new exploration segments.
Guidance, Outlook, and Risks
- Production Guidance:
- Consolidated: Revised 2026 guidance to 109,000 – 120,000 GEOs.
- Gold Bar Mine: Downgraded annual guidance to 30,000 – 33,000 GEOs due to operational issues and mine model reconciliation.
- Fox Complex: Upgraded annual guidance to 20,000 – 23,000 GEOs, expecting to exceed targets due to Froome West production.
- San José (MSC): Remains on track for 59,000 – 64,000 GEOs.
- Cost Outlook: Gold Bar Mine annual cost guidance increased to $2,650–$2,950 cash costs per GEO and $2,900–$3,200 AISC per GEO due to lower production volumes. San José unit costs are expected to remain elevated due to Argentine inflation and currency dynamics.
- Key Risks:
- Operational: Geologic complexities at Gold Bar Mine and potential for further production variances.
- Macroeconomic: Inflation and currency devaluation in Argentina impacting MSC costs; commodity price volatility.
- Development: Execution risks associated with the Los Azules copper project (McEwen Copper) and the El Gallo heap leach project.
Investor Verification Checklist
- Gold Bar Mine Recovery: Verify the resolution of the assay lab shutdown and the reconciliation of mine models regarding carbonaceous material to assess if production guidance can be met.
- Equity Method Volatility: Review the sustainability of the $41.6M income from MSC and McEwen Copper, noting that MSC results are heavily influenced by Argentine inflation and currency exchange rates.
- Capital Expenditures: Monitor the $39.8M in H1 2026 capital additions, specifically the $12.8M invested in the Stock project at Fox Complex, to ensure timelines for pre-commercial production (Q4 2026) are realistic.
- Debt Structure: Confirm the status of the $110M Convertible Notes due 2030 and the $20M term loan, including interest coverage ratios given the fixed coupon rates.
- Acquisition Integration: Assess the progress of the Canadian Gold Corp. and Golden Lake acquisitions, particularly the permitting status for the Tartan Lake project.