McEwen Inc.
PART I
ITEM 1. BUSINESS
History and Organization
McEwen Inc. (the “Company”) is a gold and silver mining production and exploration company with an advanced copper development project, focused on the Americas. We were incorporated under the laws of the state of Colorado in 1979 as US Gold Corp. In September 2011, US Gold Corp. acquired Minera Andes Inc., and was renamed McEwen Mining Inc. Effective July 7, 2025, the Company changed its name from McEwen Mining Inc. to McEwen Inc. We own 100% of the Froome mine and Stock mill in Ontario, Canada; 100% of the Gold Bar Mine Complex in Nevada; 100% of El Gallo (previously known as the Fenix Project) in Sinaloa, Mexico; a 46.3% interest in McEwen Copper Inc., the owner of the Los Azules copper project (“Los Azules”) in San Juan, Argentina; and a 49% interest in MSC, the owner and operator of the San José mine in Santa Cruz, Argentina. In addition to the above, we hold interests in advanced-stage and exploration-stage projects in the United States, Canada, Mexico, and Argentina.
Our commencement of Canadian operations in 2017 was facilitated by the acquisition of Lexam VG Gold Inc. (“Lexam”) in April 2017, followed by the acquisition of the Black Fox and Stock Properties from Primero Mining Corp. in October 2017. These two acquisitions provided us with an operating mine, mill, and significant land interests in the historic Timmins mining district of Ontario (collectively, the “Fox Complex”). On September 19, 2021, our currently operating Froome mine, located within the Black Fox Property, reached commercial production. The Company is currently developing its Stock Property as an underground mine, with production expected to begin by mid-2026. In January 2026, we closed the acquisition of Canadian Gold Corp. which holds a number of exploration-stage assets, including the Tartan Lake project in Manitoba.
In the United States, construction began on our 100% owned Gold Bar mine in Nevada in 2017. The Gold Bar mine poured its first gold ingot on February 16, 2019, and achieved commercial production on May 23, 2019. Current production is from our Pick, Ridge and Gold Bar South deposits. In August 2024, we expanded our portfolio of exploration-stage properties in Nevada through the acquisition of Timberline Resources Corporation (“Timberline”). Together with our Tonkin Project, acquired in 2005, these properties comprise the Gold Bar Mine Complex.
At El Gallo in Sinaloa, Mexico, mining and crushing activities ceased during the second quarter of 2018. The Company now plans to begin mill construction in H1 2026 as part of its heap leach material (“HLM”) reprocessing project contemplated in its 2021 feasibility study. Production is projected to begin by mid-2027 and is expected to run for 10 years, reaching an average annual output of approximately 20,000 GEOs once commercial production is achieved. A second operational phase focusing on silver dominant material has also been planned (“El Gallo Silver”).
Our objective is to increase shareholder value through the exploration for and economic extraction of gold, silver, and other valuable minerals. Other than the San José mine and the Los Azules copper project, both located in Argentina, we generally conduct our activities as the sole owner, but we may enter into strategic arrangements with other companies through joint venture or similar agreements. We hold our mineral property interests and operate our business through various subsidiary companies.
Our principal executive office is located at 150 King Street West, Suite 2800, Toronto, Ontario, Canada M5H 1J9 and our telephone number is (866) 441-0690. Our website is www.mcewenmining.com. We make available at no cost our periodic reports, including Forms 10-K, 10-Q and 8-K, and news releases and certain of our corporate governance documents, including our Code of Business Conduct and Ethics, on our website. Our common stock is listed on the New York Stock Exchange (“NYSE”) and on the Toronto Stock Exchange (“TSX”) under the symbol “MUX.”
In this report, unless otherwise noted, “Au” represents gold; “Ag” represents silver; “Cu” represents copper; “oz” represents troy ounce; “lb” represents pound; “g/t” represents grams per metric tonne; “o/t” represents troy ounces per short ton; “ft” represents feet; “m” represents meter; “sq” represents square; and C$ refers to Canadian dollars. All our financial information is reported in United States (U.S.) dollars, unless otherwise noted. References to our company include, where the context requires, all our subsidiaries.
3
Segment Information
Our operating segments include Canada, United States, Mexico, MSC and McEwen Copper. Financial information for each of our reportable segments can be found under Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8. Financial Statements and Supplementary Data, Note 3, Operating Segment Reporting.
Products
The end product at our gold and silver operations is generally doré bars or ore concentrate. Doré is an alloy consisting primarily of gold and silver but may also contain other trace elements, cast into unrefined bars. These bars are sent to third party refiners to produce saleable bullion. Ore concentrate, or simply concentrate, is raw mineralized material that has been finely ground into a powdery product from which gangue (waste) is removed, thus concentrating the metal component. Concentrate, as well as slag and fine carbons (which are by-products of the gold production process), are sent to third party smelters for further recovery of gold and silver.
During 2025, production consisted of 100% doré from the Gold Bar Mine Complex, 98% doré and 2% slag and fine carbon from the Fox Complex, and 91% doré and 9% slag and fine carbon from El Gallo. Production from the San José mine consisted of 13% doré and 87% concentrate.
During 2025, we reported the following gold equivalent ounce production attributable to us:
| | | | | | |
| | Gold | | Silver | | Gold equivalent |
Production | | ounces | | ounces | | ounces(1) |
Gold Bar Mine Complex | | 33,221 | | 540 | | 33,227 |
Fox Complex | | 23,144 | | 3,605 | | 23,187 |
El Gallo | | 396 | | 53,047 | | 1,152 |
San José mine (on 49% basis) | | 37,715 | | 1,776,034 | | 58,120 |
Total production | | 94,476 | | 1,833,226 | | 115,687 |
| (1) | Calculated using an average silver to gold spot price ratio of 86:1. |
Gold and silver contained in our end products are generally sold at the prevailing spot market price per ounce at the time of sale. Concentrates produced by the San José mine are provisionally priced, whereby the selling price is subject to final adjustments at the end of a period ranging from 30 to 90 days after delivery to the customer. The final price is based on the market price of the contained metals at the relevant quotation period stipulated in the contract. Due to the time elapsed between shipment and the final settlement with the buyer, MSC estimates the prices at which sales of metals will be settled. At the end of each financial reporting period, previously recorded provisional sales are adjusted to estimated settlement metals prices based on relevant forward market prices until final settlement with the buyer.
During 2025, revenues from gold and silver sales were $116.7 million from the Gold Bar Mine Complex, $76.0 million from the Fox Complex, $4.8 million from the El Gallo mine, and $225.2 million from the San José mine on a 49% basis. Revenue from the San José mine is not included in our Consolidated Statements of Operations and Comprehensive (Loss) as we use the equity method of accounting for MSC. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information regarding production and operating results for our properties, and Item 8. Financial Statements and Supplementary Data, Note 2, Summary of Significant Accounting Policies—Investments and Note 9, Equity Investments for additional information regarding the equity method of accounting.
4
Loading financial statements...
Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
| Line item |
|---|
| Period ending |
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In the following discussion, “McEwen”, the “Company,” “we,” “our,” and “us” refer to McEwen Inc. and, as the context requires, its consolidated subsidiaries.
The discussion also analyzes our results of operations for the three and six months ended June 30, 2026, and compares those to the results for the three and six months ended June 30, 2025. 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, 2025 (as amended, the “Annual Report”).
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 most directly comparable GAAP measure included in our Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2026, and 2025 and to our Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, and certain limitations inherent in such measures, see discussion under “Non-GAAP Financial Performance Measures,” beginning on page 47.
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. This section provides information up to the date of the filing of this report.
Throughout this Management’s Discussion and Analysis (“MDA”), the reporting periods for the three months ended June 30, 2026, and 2025 are abbreviated as Q2/26 and Q2/25, respectively and the reporting periods for the six months ended June 30, 2026, and 2025 are abbreviated as H1/26 and H1/25, respectively. Disclosed gold equivalent ounces (“GEO”) includes gold and silver ounces calculated based on a gold to silver ratio of 61:1 for Q2/26 and 99:1 for Q2/25, based on the average per ounce price of gold and silver during each period.
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.
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.
31
The Company owns 100% of the Froome mine and Stock mill in Ontario, Canada; 100% of the Tartan Mine Project in Manitoba, Canada; 100% of the Gold Bar Mine Complex in Nevada; 100% of the Jewel Ridge Project in Nevada;100% of El Gallo (previously known as the Fenix Project) in Sinaloa, Mexico; a 46.3% interest in McEwen Copper Inc., the owner of the Los Azules copper project (“Los Azules”) in San Juan, Argentina; a 49% interest in MSC, the owner and operator of the San José mine in Santa Cruz, Argentina and 27% interest in Paragon Advanced Labs Inc. (“Paragon”), a provider of advanced analytical services to the mining industry. In addition to the above, we hold interests in advanced-stage and exploration-stage projects in the United States, Canada, Mexico, and Argentina.
Index to Management’s Discussion and Analysis:
| |
| |
33 | |
35 | |
36 | |
37 | |
38 | |
38 | |
38 | |
38 | |
40 | |
40 | |
41 | |
41 | |
41 | |
41 | |
43 | |
43 | |
45 | |
45 | |
47 | |
50 | |
50 | |
52 |
32
Q2/26 OPERATING AND FINANCIAL HIGHLIGHTS
Highlights for Q2/26 are summarized below and discussed further under “Consolidated Performance”:
Corporate Developments
| ● | On April 30, 2026, the Company completed the acquisition of 100% of Golden Lake Exploration Inc.’s (“Golden Lake”) outstanding equity interests. Golden Lake is a mineral exploration company with a focus on gold properties located within the south end of the Eureka belt, adjacent to the Company’s Windfall and Lookout Mountain properties. Under the terms of the arrangement, the Company issued a total of 532,499 common shares and 18,490 options, for a total fair value of $11.7 million as part of the consideration. |
| ● | On May 20, 2026, MSC paid a dividend of ARS $141.1 billion ($101.2 million) on a 100% basis, of which ARS $69.1 billion ($49.4 million) was attributable and paid to the Company. The Company received total dividends of $58.2 million in H1/26, compared to $2.2 million in H1/25. |
Operational Highlights
| ● | Q2/26 consolidated production was 30,872 GEOs (H1/26 - 61,342 GEOs), compared to 27,554 GEOs in Q2/25 (H1/25 - 51,685 GEOs). Production includes 17,019 GEOs in Q2/26 for our attributable interest in the San José mine(1) (Q2/25 - 13,835) and 31,601 attributable GEOs in H1/26 (H1/25 - 24,643 GEOs). Due to forecasted changes in our operations, we have revised our 2026 consolidated guidance to 109,000 to 120,000 GEOs. |
| ● | Q2/26 consolidated sales of 29,310 GEOs (H1/26 – 60,521 GEOs), compared to 28,039 GEOs sold in Q2/25 (H1/25 – 51,854 GEOs). Total sales include 15,362 attributable GEOs from the San José mine(1) in Q2/26 (Q2/25 – 15,362 GEOs) and 31,499 attributable GEOs during H1/26 (H1/25 – 24,258 GEOs). |
| ● | At the Fox Complex, we invested approximately $12.8 million in the Stock project during Q2/26, completing key infrastructure work, and expanded its plans at Froome West. The Stock project continues to be on track to reaching pre-commercial production in Q4/26, with Q2/26 development efforts focused on prioritizing Stock East ventilation and haulage ramps. At Froome, we produced 7,000 GEOs during Q2/26 (H1/26 – 12,785 GEOs), representing a 29% increase compared to 5,429 GEOs in Q2/25 (H1/26 – 10,948 GEOs). Based on updated mine planning work completed during Q2/26, production from Froome West is now expected to extend until the end of Q4/26. As a result, the Fox Complex expects to exceed its annual production guidance, moving up to 20,000 to 23,000 GEOs from 16,000 to 19,000 GEOs. |
| ● | At the Gold Bar Mine Complex, we produced 5,842 GEOs during Q2 2026 (H1/26 – 13,726 GEOs), representing a 31% decrease from the 8,406 GEOs produced in Q2 2025 (H1/25 – 16,094 GEOs). This decline was attributable to timing and mine model factors. During Q2, a one-month shutdown in our mine assay laboratory operations limited our ore mining rate; mining operations focused on waste stripping activities instead. Additionally, complex mining zones with higher carbonaceous material than expected were encountered, which did not reconcile with our mine models. Additional studies are being completed in Q3/26 to better understand these reconciliation differences. As a result of these issues, the Gold Bar Complex has downgraded its annual production guidance to 30,000 to 33,000 GEOs. |
| ● | At the San José Mine, Q2/26 production of 17,019 GEOs(1) (H1/26 – 31,601 GEOs) increased by 24% compared to 13,719 GEOs(1) during Q2/25 (H1/25 – 24,543 GEOs). San José’s Q2/26 production increased due to a 4% increase in gold recovery rates, a 1% increase in silver recovery rates along with a 3% increase in processed mineralized material and a 4% increase in average gold grade processed. San José remains on track to meet its annual production guidance of 59,000 to 64,000 GEOs. |
| ● | We continued to meet safety expectations at our 100% owned operations. During Q2/26, we did not have any lost-time incidents at the Fox Complex, the Gold Bar Mine Complex, or El Gallo. The Nevada Mining Association recently recognized the Gold Bar Mine Complex as the recipient of its 2026 Mine Operator and Safety Award that recognizes companies that demonstrate exceptional safety performance. |
33
Financial Highlights
| ● | Q2/26 revenues of $59.2 million were recognized from the sale of 13,948 GEOs from our 100% owned operations at an average realized price(2) of $4,454 per GEO. This compares to Q2/25 revenues of $46.7 million from the sale of 14,549 GEOs at an average realized price of $3,298 per GEO. |
| ● | We reported gross profit of $20.1 million in Q2/26 compared to $12.3 million in Q2/25. The change was primarily driven by a 35% increase in average realized price during the quarter. |
| ● | Net income for Q2/26 was $9.6 million, or $0.16 per share, compared to a net income of $3.0 million for Q2/25, or $0.06 per share. The improvement was primarily driven by a $7.8 million increase in gross profit and a $15.0 million increase in income from equity method investments, partially offset by $8.5 million increase in other operating expenses. |
| ● | Adjusted EBITDA(2) for Q2/26 was $22.2 million, compared to Q2/25 adjusted EBITDA of $17.3 million. Adjusted EBITDA excludes the impact of McEwen Copper and Paragon’s results and reflects the earnings of our operating properties, including the San José mine(1). |
| ● | Fox Complex unit costs: Cash costs(2) and AISC(2) per GEO sold in Q2/26 were $1,972 and $2,701 respectively. as compared to annual guidance ranges of $2,200 to $2,400 and $2,650 to $2,850, respectively. The Company expects to remain on track to end the year within its guidance ranges, including costs associated with the additional production expected from Froome West in Q4/26. |
| ● | Gold Bar Mine Complex unit costs: Cash costs(2) and AISC(2) per GEO sold in Q2/26 were $2,705 and $3,197, respectively, as compared to annual guidance of $2,250 to $2,450 and $2,350 to $2,550, respectively. Q2/26 unit costs were higher than annual guidance primarily due to lower quarterly GEO production. Due to the decrease in production guidance ranges, annual cost guidance is now projected to be $2,650 to $2,950 cash costs per GEO sold and $2,900 to $3,200 AISC per GEO sold. |
| ● | San José unit costs: Cash costs(2) and AISC(2) per GEO sold in Q2/26 were $2,466 and $2,913, respectively, as compared to full year guidance of $2,000 to $2,200 and $2,300 to $2,500, respectively. Higher unit costs were primarily the result of 22% higher production costs driven by relative strength in the Argentine peso compared to the US Dollar, as well as Argentine inflation. These trends are expected to continue through the remainder of 2026. |
Exploration Highlights
| ● | At Grey Fox, we published the results of a pre-feasibility study (“PFS”) in June 2026, indicating that Grey Fox is a robust and economically resilient asset with an anticipated mine life capable of supporting the continued growth of the Fox Complex, and established an initial mineral reserve of over 980,000 gold ounces. The Company’s next planned activities at Grey Fox include detailed engineering and permitting towards a final investment decision and construction. |
| ● | We completed 65,335 feet (19,914 meters) of drilling at our Grey Fox deposit, incurring $2.6 million during Q2/26. Objectives of our exploration program during Q2/26 were to grow and upgrade the Grey Fox resource base after the release of our pre-feasibility study (“PFS”). |
| ● | We incurred $6.5 million in exploration expenses at the Gold Bar Mine Complex during Q2/26, primarily to continue definition and de-risk drilling of the Windfall and Lookout Mountain deposits, and to advance ongoing drilling activities at Trinity Ridge. Subsequent to the second quarter, we also published an updated mineral resource estimate for Windfall and Lookout Mountain, together containing 629,800 gold ounces in indicated mineral resources and 262,000 gold ounces in inferred mineral resources. |
| ● | We incurred $2.3 million in exploration expenses at the Tartan Mine Project during Q2/26. The exploration expense was primarily incurred on drilling aiming to expand the high-grade portion of the Main Zone along the western flank and for the preparation of a technical report summary supporting the mineral resource estimate that was published in May. The mineral resource estimate incorporates drill hole data compiled from both historical and recent exploration programs, supporting an estimated 398,900 ounces of indicated gold resources and 302,700 ounces of inferred gold resources. |
(1) At our 49% attributable interest.
(2) This is a Non-GAAP financial performance measure. See “Non-GAAP Financial Performance Measures” beginning on page 47.
34
SELECTED CONSOLIDATED FINANCIAL AND OPERATING RESULTS
The following tables present consolidated selected financial and operating results of the Company for the three and six months ended June 30, 2026, and 2025:
| | | | | | | | | | | | | |
| | Three months ended June 30, | | Six months ended June 30, | | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | ||||
| | (in thousands, except per share) | | ||||||||||
Revenue from gold and silver sales (1) | | $ | 59,234 | | $ | 46,700 | | $ | 133,283 | | $ | 82,396 | |
Production costs applicable to sales (1) | | $ | (31,145) | | $ | (27,733) | | $ | (66,789) | | $ | (47,338) | |
Gross profit (1) | | $ | 20,080 | | $ | 12,281 | | $ | 51,575 | | $ | 22,351 | |
Net income (loss) | | $ | 9,606 | | $ | 3,040 | | $ | 42,985 | | $ | (3,230) | |
Net income (loss) per share | | $ | 0.16 | | $ | 0.06 | | $ | 0.72 | | $ | (0.06) | |
Adjusted EBITDA (2) | | $ | 22,225 | | $ | 17,309 | | $ | 22,279 | | $ | 26,018 | |
Cash from (used in) operating activities | | $ | 46,221 | | $ | 478 | | $ | 58,324 | | $ | (1,454) | |
Additions to mineral property interests and plant and equipment | | $ | 22,964 | | $ | 9,649 | | $ | 39,849 | | $ | 24,183 | |
| (1) | Excludes results from the San José mine, which is accounted for under the equity method. |
| (2) | This is a Non-GAAP financial performance measure. See “Non-GAAP Financial Performance Measures” beginning on page 47. |
| | | | | | |
| | | ||||
| | June 30, 2026 | | December 31, 2025 | ||
| | (in thousands, unless otherwise indicated) | ||||
Cash and cash equivalents | | $ | 78,883 | | $ | 51,015 |
Current assets | | $ | 129,735 | | $ | 107,886 |
Current liabilities | | $ | 63,692 | | $ | 63,809 |
Long-term debt | | $ | 120,572 | | $ | 126,168 |
| | | | | | | | | | | | | |
| | Three months ended June 30, | | Six months ended June 30, | | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | ||||
| | | | ||||||||||
GEOs produced (1) | | | 30,872 | | | 27,554 | | | 61,342 | | | 51,685 | |
100% owned operations | | | 13,852 | | | 13,835 | | | 29,741 | | | 27,042 | |
San José mine (49% attributable) | | | 17,019 | | | 13,719 | | | 31,601 | | | 24,643 | |
GEOs sold (1) | | | 29,310 | | | 28,039 | | | 60,521 | | | 51,854 | |
100% owned operations | | | 13,948 | | | 14,549 | | | 29,021 | | | 27,596 | |
San José mine (49% attributable) | | | 15,362 | | | 13,490 | | | 31,499 | | | 24,258 | |
Average realized price ($/GEO) (2)(3) | | $ | 4,454 | | $ | 3,298 | | $ | 4,749 | | $ | 3,062 | |
P.M. Fix Gold ($/oz) | | $ | 4,506 | | $ | 3,281 | | $ | 4,691 | | $ | 3,069 | |
Cash costs per ounce ($/GEO sold) (2) | | | | | | | | | | | | | |
100% owned operations | | $ | 2,394 | | $ | 1,906 | | $ | 2,476 | | $ | 1,715 | |
San José mine (49% attributable) | | $ | 2,466 | | $ | 2,310 | | $ | 2,414 | | $ | 2,428 | |
AISC per ounce ($/GEO sold) (2) | | | | | | | | | | | | | |
100% owned operations | | $ | 2,932 | | $ | 2,120 | | $ | 2,904 | | $ | 2,210 | |
San José mine (49% attributable) | | $ | 2,913 | | $ | 2,842 | | $ | 2,806 | | $ | 2,933 | |
Gold : Silver ratio (1) | | | 61 : 1 | | | 99 : 1 | | | 59 : 1 | | | 94 : 1 | |
| (1) | Silver production is presented as a gold equivalent with a gold : silver ratio of 61 : 1 for Q2/26 and 99 : 1 for Q2/25. |
| (2) | This is a Non-GAAP financial performance measure. See “Non-GAAP Financial Performance Measures” beginning on page 47. |
| (3) | On sales from 100% owned operations only, excluding sales from our streaming arrangement at the Fox Complex. |
35
CONSOLIDATED OPERATIONS REVIEW
Revenue from gold and silver sales: During H1/26, revenue from our 100%-owned operations increased by 62% to $133.3 million, from $82.4 million in H1/25. During Q2/26, revenue from our 100% owned operations increased by 27% to $59.2 million, from $46.7 million in Q2/25. These improvements were primarily driven by higher realized gold prices, which increased to $4,749 per GEO in 2026 compared to $3,062 per GEO in 2025, and $4,454 per GEO in Q2/26, compared to $3,298 in Q2/25.
Production costs applicable to sales: For H1/26, production costs applicable to sales increased to $66.8 million as compared to $47.4 million for H1/25. For Q2/26 production costs were $31.1 million compared to $27.7 million for Q2/25. At the Gold Bar Mine Complex, these increases were primarily driven by higher fuel costs and fuel consumption, as well as alternative assay costs and temporary building and generator rental costs incurred as a result of the laboratory shutdown during Q2/26, while costs at the Fox Complex remained stable over the comparative periods.
Advanced project costs were $3.4 million in Q2/26, a $2.5 million increase compared to Q2/25. For H1/26, advanced project costs were $8.1 million as compared to $2.6 million in H1/25.This increase was primarily attributable to study costs associated with the Grey Fox project and a $2.3 million increase in costs incurred at El Gallo related to additional crushing activities and metallurgical testing undertaken to optimize cyanide destruction.
Exploration costs were $16.9 million in H1/26, compared to $9.1 million in H1/25. For Q2/26, exploration costs were $11.4 million, compared to $5.4 million in Q2/25. The year-over-year increase was primarily driven by expanded drilling and technical study activities across the Company's development assets. At the Fox Complex, exploration expenditures of $2.6 million were primarily related to Canadian Exploration Expenses ("CEE") at the Grey Fox deposit, supporting resource growth initiatives. At the Tartan Mine Project, $2.3 million was incurred for drilling programs and metallurgical testing aimed at optimizing process plant design and underground mine plans. At the Gold Bar Mine Complex, $6.5 million was spent on the Windfall, Lookout Mountain, and Trinity Ridge projects. No exploration expenditures were incurred at the Jewel Ridge Project during Q2/26.
Income from equity method investments: During H1/26, we recorded an income of $41.6 million from our equity method investments compared to a loss of $11.5 million in H1/25. In Q2/26, we recorded an income of $11.2 million from our equity method investments, compared to a loss of $3.4 million in Q2/25. This amount represents the Company’s proportionate share of the results of MSC, McEwen Copper, and Paragon. Details of operating results of the Company’s equity method investees are presented in the “Operations Review” section of this MDA and Note 9 to the Consolidated Financial Statements..
General and administrative expenses: General and administrative costs of $17.4 million for H1/26 increased by $9.0 million compared to full year 2025. In Q2/26, we incurred $7.9 million in general and administrative expenses compared to $5.0 million in Q2/25. The increase was primarily attributable to a $2.6 million increase in fees paid for professional services.
Interest and other finance expenses, net: Interest and other finance expense totaled $2.0 million for H1/26, a $1.0 million decrease compared to an expense of $3.0 million for H1/25. For Q2/26, interest and other finance expense totaled $0.5 million compared to $1.7 million in Q2/25. The year-over-year change was comparable, as interest expense levels remained consistent and were largely offset by interest income earned on short-term deposits and loans receivable in 2026. Refer to Note 14 to the Consolidated Financial Statements.
Other income (expense): Other expense of $7.9 million for H1/26 decreased from an income of $8.6 million for H1/25. For Q2/26, other expense was $1.4 million compared to an income of $7.1 million in Q2/25. The changes in other income were primarily driven by fair value revaluation on the contingent shares owed to a related party in connection with the Canadian Gold Corp. acquisition and a loss on marketable securities of $8.3 million in H1/26, compared to a $6.5 million gain on marketable securities in H1/25.
Income and mining tax recovery: Income and mining tax recovery for H1/26 was $4.0 million, compared to a recovery of $2.2 million in H1/25. The increase in tax recovery was primarily attributable to the amortization of flow-through share
36
premium liabilities of $1.8 million, a $1.0 million discrete tax recovery related to the true-up of prior-year tax provisions, and a $1.0 million deferred tax recovery arising from post-acquisition adjustments to deferred tax liabilities recorded in connection with the Canadian Gold Corp. acquisition. These items were partially offset by current and deferred tax expense recognized across the Company's operating jurisdictions.
LIQUIDITY AND CAPITAL RESOURCES
Our cash, cash equivalents and restricted cash balance increased by $25.3 million during H1/26, from $53.5 million as at December 31, 2025, to $78.9 million as at June 30, 2026.
Cash provided by operating activities of $58.3 million during H1/26 reflects the net income of $43.0 million for the period and $58.3 million in dividends received from MSC, adjusted for non-cash impacts, including net loss from equity method investments of $41.6 million, depreciation, amortization, and depletion of $15.3 million, unrealized loss on marketable securities of $5.9 million, flow-through premium amortization of $1.8 million, a mining tax recovery of $1.3 million, and $23.9 million in changes in non-cash working capital. Further details are provided in the Consolidated Statements of Cash Flows.
Cash used in investing activities of $45.7 million during H1/26 primarily consisted of cash additions to mineral property interests, plant and equipment of $39.8 million and a loan provided to McEwen Copper of $7.5 million, and cash provided by other investing activities of $1.7 million.
Cash provided by financing activities of $14.5 million during H1/26 consisted of $14.8 million proceeds from issuance of flow through common shares and $0.2 million proceeds from exercise of stock options and warrants, partially offset by a $0.6 million repayment of finance lease obligations.
Working capital as at June 30, 2026, was $66.0 million, a $21.9 million increase from $44.1 million as at December 31, 2025. The increase in working capital was primarily driven by a $27.9 million increase in cash and cash equivalents, a $3.9 million increase in inventories, a $0.1 million decrease in dues from McEwen Copper, a $8.3 million decrease in marketable securities, a $3.6 million decrease in accounts payabale and accrued liabilities, a $2.5 million decrease in tax liabilities, offset by a $6.0 million increase in current-portion of long term debt, and a $0.7 million decrease in flow through share premium.
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 and beyond. See Note 10, Debt, Note 11, Reclamation and Remediation Liabilities, and Note 16, Commitments and Contingencies, to the consolidated financial statements included elsewhere in this report for further details regarding our material cash requirements from known contractual and other obligations.
37
OPERATIONS REVIEW
United States Segment
The United States segment is comprised of the Gold Bar Mine Complex, consisting of the operating Gold Bar mine, and the Tonkin, Jewel Ridge, Windfall and Lookout Mountain exploration projects; as well as other exploration properties in the State of Nevada.
Gold Bar Mine Complex
The following table summarizes the operating and financial results for the Gold Bar Mine for the three and six months ended June 30, 2026, and 2025:
| | | | | | | | | | | | |
| | Three months ended June 30, | | Six months ended June 30, | ||||||||
| | 2026 | | | 2025 | | 2026 | | 2025 | |||
Operating Results | | | ||||||||||
Mined mineralized material (kt) |
| | 325 |
| | |||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-29 | Brissenden Richard W. | Director | Sell | -3,275 | $18.13 | -$59,372 |
| 2026-06-05 | Kaszas Stephen Douglas | Director | Buy | +1,000 | $18.36 | $18,360 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-11-04 10-Q expected by 2026-11-07 (in 72 days)
- ~2027-03-16 10-K expected by 2027-03-21 (in 204 days)
- ~2027-05-05 10-Q expected by 2027-05-08 (in 254 days)
- ~2027-08-04 10-Q expected by 2027-08-07 (in 345 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-08-07 8-K Earnings Release; Financial Statements and Exhibits
- 2026-08-05 10-Q Quarterly Report
- 2026-06-24 10-K/A Annual Report (Amended)
- 2026-06-01 8-K/A Other Events; Financial Statements and Exhibits
- 2026-05-22 8-K Other Events; Financial Statements and Exhibits
- 2026-05-20 10-K/A Annual Report (Amended)
- 2026-05-08 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-06 10-Q Quarterly Report
- 2026-04-24 DEF 14A Proxy Statement
- 2026-04-10 PRE 14A Preliminary Proxy Statement
- 2026-03-17 10-K Annual Report
- 2026-03-12 8-K Earnings Release; Financial Statements and Exhibits
- 2026-01-23 8-K Unregistered Equity Sale; Financial Statements and Exhibits
- 2026-01-08 8-K Other Events; Financial Statements and Exhibits
- 2025-12-23 8-K Regulation FD Disclosure; Other Events; Financial Statements and Exhibits