McEwen (MUX) Q4 2024 earnings summary

Executive summary

• 2024 revenue rose to $174.5M, up 5% year-over-year, with consolidated gold-equivalent production at 135,884 ounces, down 12% year-over-year but in line with guidance; higher gold prices led to a 3.8x increase in adjusted EBITDA to $29.2M ($0.57/share).

• Net loss of $43.7M was driven by $47M in McEwen Copper/Los Azules-related expenses and $16.5M in exploration investments, while underlying mining operations remained profitable.

• Strategic focus on advancing Los Azules and Fox Complex, with significant exploration investments expanding resources and extending mine life at key assets.

• Los Azules copper project advanced toward feasibility, with environmental permits secured, EIA approval, and IPO targeted post-feasibility and RIGI approval.

• Consolidated production could reach 225,000–255,000 GEOs by 2030 with Fox Complex expansion and permitting.

Financial highlights

• Adjusted EBITDA rose to $29.2M from $7.7M year-over-year, with margin improvement.

• Gross profit increased to $30.9M in 2024 from $17.8M in 2023.

• Cash and restricted cash as of March 13, 2025, was $62.2M, up from $17.5M at year-end 2024.

• Debt increased to $130M after issuing $110M in convertible notes, with net proceeds of $90.8M and $20M used to retire half of the $40M credit facility.

• Average realized gold price was $2,390/oz, above the 2024 LBMA average.

Outlook and guidance

• 2025 consolidated production guidance: 120,000–140,000 GEOs; Fox Complex targeting 30,000–35,000 GEOs in 2025, aiming to double output to 60,000 oz by 2027 and potentially 120,000–150,000 oz by 2030, pending permits.

• Gold Bar Mine guidance: 40,000–45,000 GEOs in 2025, with higher H1 costs due to stripping at Pick deposit.

• San José Mine (49% interest): 2025 guidance of 50,000–60,000 GEOs at cash cost $1,600–$1,800/GEO and AISC $1,900–$2,100/GEO.

• All-in sustaining costs (AISC) for 2025 projected at $1,700–$1,900 per GEO, with expectations for cost reductions as operations ramp up.

• Los Azules feasibility study completion targeted for June 2025; construction could start late 2026, with IPO timing dependent on copper market and RIGI approval.