Platinum Group Metals Ltd. press release
McEwen Reports Q2 2025 Results: Continuing Momentum to Double Gold and Silver Production by 2030
TSX - Toronto Stock Exchange · Platinum · Palladium · Rhodium · Gold · Copper · Nickel · Canada
TORONTO, Aug. 07, 2025 (GLOBE NEWSWIRE) -- McEwen Inc. (NYSE: MUX) (TSX: MUX) (“McEwen”, "MUX" or the "Company”) today announced its second quarter (Q2) and half year (H1) results for the period ended June 30, 2025, along with a discussion of our upcoming near-term catalysts.
“During H1 2025 we invested in development projects, including the proposed acquisition of Canadian Gold Corp., to position our company for operational growth. In addition, net income will be further improved with the publishing of the Los Azules Feasibility Study, as McEwen Copper will be able to capitalize the majority of the development costs going forward. Year-to-date, this expense was $15.6 million.”
_The higher gold price, while expected, had a welcome positive impact on our cash flow and net income,” __said Rob McEwen, CEO and Chief Owner. _
Highlights of Q2 2025
Abbreviations used are defined in the Glossary at the end of this press release.
| Profitability | Gross profit $12.3M vs $10.8M in Q2 2024, representing a gross margin of 26%.
Net income $3.0M or $0.06 per share , vs net loss of $13.0M or $0.26 per share in Q2 2024. | | | | | Adjusted EBITDA | Adjusted EBITDA $17.3M or $0.32 per share vs $7.2M or $0.15 per share in Q2 2024.
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. We use adjusted EBITDA to evaluate our operating performance and ability to generate cash flow from our gold operations in production, including the San José mine. | | | | | Revenue | $46.7M from the sale of 14,549 GEOs produced at our two 100%-owned operations, Fox Complex and Gold Bar, at an average realized gold price of $3,298 per GEO , vs revenue of $47.5M generated from the sale of 20,630 GEOs at an average realized gold sale price of $2,355 per GEO in Q2 2024. | | | | | June 30, 2025
Liquidity & Capital Resources | Cash and equivalents $53.6M vs $13.7M at June 30, 2024.
Marketable securities of $16.0M at June 30, 2025.
Working capital $61.8M vs negative $6.5M at December 31, 2024.
Debt principal outstanding $130M ($110.0M in convertible notes due 2030 and $20.0M under our term loan facility), vs $40.0 M debt at June 30, 2024.
The reported total debt of $125.8M reflects the debt principal of $130M, less debt issuance costs of $4.2M, which are amortized over the life of the debt, in accordance with accounting standards.
Based on the most recent financing of McEwen Copper at $30 per share, the implied market value of McEwen Copper is $984.0M. McEwen owns 46.4% of McEwen Copper. McEwen currently has 54,106,415 shares outstanding. | | | | | Production & Unit Costs | Consolidated production, which includes our 100%-owned mines plus our attributable production from our 49%-owned San José mine, totaled 27,554 GEOs vs 35,265 GEOs in Q2 2024.
Costs per GEO sold from our 100%-owned operations were $1,906 in cash costs and $2,120 in AISC, vs $1,554 in cash costs and $1,728 in AISC in Q2 2024.
Projected production increases in H2 2025 are expected to drive costs per GEO lower. | | | | | Exploration & Development | $5.4M invested in exploration programs at Grey Fox, Gold Bar, Lookout Mountain, and Windfall properties.
Fox Complex is advancing the Froome West discovery to production and the Stock mine ramp.
$ 7.0 M invested by McEwen Copper in the Los Azules copper project in Q2 2025, representing our 46.4% share of ongoing Feasibility Study costs. Once the Feasibility Study is published, the majority of future expenses at Los Azules will be capitalized and will no longer be included in the income statement of McEwen. | | | | | Safety | Zero lost-time incidents across 100%-owned sites. | | | | | _“We are proud of the teams at Fox Complex and Gold Bar for upholding safety standards with zero lost-time incidents and for driving progress on critical development milestones,” __added William Shaver, Chief Operating Officer. __“These accomplishments reinforce our momentum and strengthen our path toward achieving our full-year guidance.” _ | | | | | | 2025 Outlook | Full-year production guidance reaffirmed at 120,000–140,000 GEOs . | | | |
Looking Ahead – 7 Catalysts
Production goal of 250,000 to 300,000 GEOs consolidated by 2030.
Resource update for Windfall and Lookout Mountain projects in Nevada, near our Gold Bar Mine expected in Q4 2025. Permitting relating to production has been initiated.
Completing the acquisition of Canadian Gold Corp. by early 2026.
Grey Fox Pre-feasibility Study H1 2026.
Commencement of production at Stock Mine by mid-2026
Potential future dividend from San José based on price environment and working capital
Continuing exploration updates across the Company
Added driver - Los Azules Feasibility Study late Q3 2025
Individual Asset Performance – Production & Costs, Project Updates _(See __Table 1 __for Q2 2025 and H1 2025 production and costs, 2024 comparatives and 2025 guidance) _
Gold Bar Mine, Nevada (100% owned)
Production and Costs
8,406 GEOs were produced. Costs per GEO sold were $1,679 cash costs and $1,792 AISC , both within 2025 guidance range. As accelerated stripping activity, initiated to take advantage of higher gold prices, is nearing completion, we expect production to increase, and costs per GEO to decrease in H2. Annual Guidance for the year 40,000–45,000 GEOs
Exploration
Spent $1.2 million at Gold Bar Mine to extend the current mine life beyond 2029. Spent $1.3 million at Lookout Mountain and Windfall projects to advance them towards production.
Fox Complex Mine, Ontario (100% owned)
Production and Costs
5,429 GEOs from mining in the lower-grade zones at the bottom of the Froome mine. Costs per GEOs sold were $2,212 cash costs and $2,563 AISC . As output increases in H2 2025, costs per GEO sold are expected to decline. Annual Guidance for the year 30,000–35,000 GEOs.
Exploration
Delineation drilling around Froome Mine led to the discovery of new high-grade gold mineralization approx. 200 meters (650 feet) to the west, which is expected to extend the mine life and supports continuing exploration of the area for potential resource expansion. Invested $2.9 million at Grey Fox’s Gibson Zone, completing 20,000 m (67,000 ft) of drilling.
Notable Gold Assays
Froome West
Along the high-grade plunge: 36.0 g/t Au over 10.0 m and 9.3 g/t Au over 7.8 m (TW, drill hole 25PR-G424 ) Extending mineralization further West: 11.7 g/t Au over 2.4 m and 18.5 g/t Au over 0.5 m (TW, drill hole 25PR-G390 )
Grey Fox
12.4 g/t Au over 1.7 m incl. 27.9 g/t Au over 4.5 m (TW, drill hole 25GF-1539 ) 6.2 g/t Au over 7.8 m incl. 4.4 g/t Au over 16.0 m (TW, drill hole 25GF-1537 ) Building on the resource size, currently at 1,538,000 gold ounces @ 3.64 g/t Au Indicated & 458,000 gold ounces @ 3.30 g/t Au Inferred.
Development
Invested $5.6 million on Stock ramp, having completed the portal access; targeting commercial production by the middle of 2026. Extended Froome mine life through the middle of 2026 with the discovery of Froome West.
San José Mine, Argentina (49% owned)
Production and Costs
Attributable production: 13,719 GEOs , down due to lower grades and recovery rates. Costs per GEO sold were $2,310 cash costs and $2,842 AISC , influenced by high inflation outpacing the devaluation of the Argentine peso and increased use of contractors. Production growth in H2 is expected to reduce these costs closer to guidance. A $2.2 million dividend distribution was received during H1 2025. Building cash balances at San José mine, reaching $55.6 million (100% basis) as of June 30, 2025. Annual guidance of 50,000–60,000 GEOs .
McEwen Copper – Los Azules Project, Argentina (46.4% ownership and 1.25% NSR)
Projects Update
Invested $15.6 million in Q2, advancing towards publishing a Feasibility Study in late Q3 2025 . Feasibility Study progressing Cost estimates and hydrogeological modeling being completed to current market conditions. Engineering focusing on reducing upfront capital through layout and infrastructure optimization. Q3 2025 priorities: finalizing geotechnical inputs, completing the optimized mine schedule, life-of-mine production profile, capital and operating cost estimates, and the heap leach design.
Submitted RIGI application to secure significant tax and regulatory benefits Application submitted on February 11, 2025 On July 11, 2025, a revised application was submitted.
Exploration & Development
Completed geotechnical, hydrogeological, and condemnation drilling for the Feasibility Study . Finalizing updated resource model. Exploration has generated three other nearby copper targets which will be drilled in late fall of 2025.
Further Corporate Developments
On July 2, 2025, the Company entered into a milling agreement with Inventus Mining Corp. The agreement enables us to utilize excess milling capacity and reduce our cost per ounce. On July 27, 2025, the Company signed a binding LOI to acquire Canadian Gold Corp., a strategic move to increase our resource base and future production in Manitoba, a mining friendly part of Canada. Upon completion of the acquisition, the next steps are to update the current resource estimate, prepare a preliminary economic assessment, and amend the mining permits associated with the Tartan Mine so we can restart production quickly. During this process, McEwen intends to continue exploration drilling at the Tartan Mine and the newly acquired high-grade gold properties to the west.
Management Conference Call
Management will discuss our Q2 2025 financial results and project developments and follow with a question-and-answer session. Questions can be asked directly by participants over the phone during the webcast.
| Thursday August 7 th 2025 at 11:00 AM EDT | Toll Free Dial-In North America: | (888) 210-3454 | | Toll Dial-In: | (646) 960-0130 | | | Dial-In Other Countries: | https://events.q4irportal.com/custom/access/2324/ | | | Conference ID Number: | 3232920 | | | Webcast Link: | https://events.q4inc.com/attendee/735940300/guest | | | | | |
An archived replay of the webcast will be available approximately 2 hours after the conclusion of the live event. Access the replay on the Company’s media page at https://www.mcewenmining.com/media .
Table 1. Q2 and H1 2025 Production and Costs, Comparatives from Q2 and H1 2024 and 2025 Guidance Range
| | Q2 | H1 | Full Year 2025 Guidance Range | | | | 2024 | 2025 | 2024 | 2025 | | | | Consolidated Production | | | | | | | GEOs (2) | 35,265 | 27,554 | 68,320 | 51,685 | 120,000–140,000 | | Gold Bar Mine, Nevada | | | | | | | GEOs | 12,297 | 8,406 | 24,013 | 16,094 | 40,000–45,000 | | Cash Costs/GEO | $1,532 | $ 1,679 | $1,313 | $ 1,419 | $1,500–$1,700 | | AISC/GEO | $1,634 | $ 1,792 | $1,404 | $ 1,986 | $1,700–$1,900 | | Fox Complex, Canada | | | | | | | GEOs | 8,297 | 5,429 | 15,782 | 10,948 | 30,000–35,000 | | Cash Costs/GEO | $1,588 | $ 2,212 | $1,572 | $ 2,142 | $1,600–$1,800 | | AISC/GEO | $1,874 | $ 2,563 | $1,886 | $ 2,534 | $1,700–$1,900 | | San José Mine, Argentina (49%) (3) | | | | | | | GEOs | 14,672 | 13,719 | 27,605 | 24,643 | 50,000–60,000 | | Cash Costs/GEO | $1,624 | $ 2,310 | $1,615 | $ 2,428 | $1,600–$1,800 | | AISC/GEO | $2,032 | $ 2,842 | $1,978 | $ 2,933 | $1,900–$2,100 |
Notes:
1. Cash gross profit, cash costs per ounce, and all-in sustaining costs (AISC) per ounce, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) and adjusted EBITDA per share are non-GAAP financial performance measures with no standardized definition under U.S. GAAP. For definitions of these non-GAAP measures, refer to the “Non-GAAP Financial Measures” section in this press release. For reconciliations to the closest U.S. GAAP measures, see the Management Discussion and Analysis for the quarter ended June 30, 2025 , filed on EDGAR and SEDAR Plus . 2. Gold Equivalent Ounces (GEOs) are calculated using gold-to-silver price ratios: 99:1 for Q2 2025 , 81:1 for Q2 2024 , and 85:1 for 2025 production guidance . H1 2024 consolidated production included 920 GEOs recovered form tailings at El Gallo mine. 3. San José Mine figures represent the portion attributable to McEwen from its 49% interest in the San José Mine.
Glossary of Abbreviations
| Au AISC CW ft GEO g/t H1 H2 | – gold – all-in sustaining costs – core width – foot – gold equivalent ounce – grams per tonne – first half (January 1 - June 30) – second half (July 1 - December 31) | LOI M m Q1 Q2 Q3 Q4 TW | – Letter of Intent – million – meter – first quarter (January 1 - March 31) – second quarter (April 1 - June 30) – third quarter (July 1 - September 30) – fourth quarter (October 1 - December 31) – true width | | | | | |
CAUTIONARY NOTE REGARDING NON-GAAP 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 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 cost per ounce and all-in sustaining costs 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 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 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 expenses, all corporate financing charges, costs related to business combinations, asset acquisitions and asset disposal, 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.
| | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | Six months ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | Gold Bar | | Fox Complex | | Total | | Gold Bar | | Fox Complex | | Total | | | | | | | | | | | | (in thousands, except per ounce) | | (in thousands, except per ounce) | | | | | | | | | | | | | | | | | | Production costs applicable to sales (100% owned) | | $ | 14,020 | | $ | 13,713 | | $ | 27,733 | | $ | 23,113 | | $ | 24,225 | | | $ | 47,338 | | | In‑mine exploration | | | 67 | | | — | | | 67 | | | 67 | | | — | | | | 67 | | | Capitalized mine development (sustaining) | | | — | | | 2,140 | | | 2,140 | | | 7,597 | | | 4,478 | | | | 12,075 | | | Capital expenditures on plant and equipment (sustaining) | | | 870 | | | — | | | 870 | | | 1,535 | | | — | | | | 1,535 | | | Sustaining leases | | | 9 | | | 32 | | | 41 | | | 22 | | | (43 | ) | | | (21 | ) | | All ‑ in sustaining costs | | $ | 14,966 | | $ | 15,885 | | $ | 30,851 | | $ | 32,334 | | $ | 28,660 | | | $ | 60,994 | | | Ounces sold, including stream (GEO) | | | 8,350 | | | 6,199 | | | 14,549 | | | 16,285 | | | 11,311 | | | | 27,596 | | | Cash cost per ounce sold ($/GEO) | | $ | 1,679 | | $ | 2,212 | | $ | 1,906 | | $ | 1,419 | | $ | 2,142 | | | $ | 1,715 | | | AISC per ounce sold ($/GEO) | | $ | 1,792 | | $ | 2,563 | | $ | 2,120 | | $ | 1,986 | | $ | 2,534 | | | $ | 2,210 | |
| | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2024 | | Six months ended June 30, 2024 | | | | | | | | | | | | | | | | | | Gold Bar | | Fox Complex | | Total | | Gold Bar | | Fox Complex | | Total | | | | | | | | | | (in thousands, except per ounce) | | (in thousands, except per ounce) | | | | | | | | | | | | | | | | Production costs applicable to sales (100% owned) | | $ | 19,170 | | $ | 12,896 | | $ | 32,066 | | $ | 32,437 | | $ | 24,739 | | $ | 57,176 | | 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) | | | 735 | | | 134 | | | 869 | | | 1,594 | | | 271 | | | 1,865 | | Sustaining leases | | | 32 | | | 81 | | | 113 | | | 53 | | | 266 | | | 319 | | All‑in sustaining costs | | $ | 20,444 | | $ | 15,213 | | $ | 35,657 | | $ | 34,671 | | $ | 29,681 | | $ | 64,352 | | Ounces sold, including stream (GEO) | | | 12,510 | | | 8,120 | | | 20,630 | | | 24,700 | | | 15,734 | | | 40,434 | | 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 | | | | | | | | | | | | | | | | | | | | |