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What changed in McEwen Inc.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of McEwen Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+541 added−474 removedSource: 10-K (2024-03-15) vs 10-K (2023-03-14)

Top changes in McEwen Inc.'s 2023 10-K

541 paragraphs added · 474 removed · 311 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

73 edited+7 added−3 removed54 unchanged
Biggest changeEl Gallo Silver’s recoveries are 86% Au and 75% Ag. 9 Table of Contents MSC ​ Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec % San José (49% attrib.) 110 4.52 16 100 2.82 9 210 3.70 25 1,010 5.99 194 293gpt AgEq 90 Total 110 4.52 16 100 2.82 9 210 3.70 25 1,010 5.99 194 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Met Rec % San José (49% attrib.) 110 259 0.9 100 168 0.5 210 216 1.5 1,010 404 13.1 293gpt AgEq 90 Total 110 259 0.9 100 168 0.5 210 216 1.5 1,010 404 13.1 ​ ​ ​ Mineral resources, exclusive of reserves, as at December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec % San José (49% attrib.) 56 5.09 9.2 49 2.41 3.8 106 3.84 13.2 901 5.22 151.1 240g/t AgEq 90 Total 56 5.09 9.2 49 2.41 3.8 106 3.84 13.2 901 5.22 151.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Met Rec % San José (49% attrib.) 56 310 0.6 49 204 0.3 106 260 0.9 901 332 9.6 240g/t AgEq 90 Total 56 310 0.6 49 204 0.3 106 260 0.9 901 332 9.6 ​ ​ ​ McEwen Copper ​ Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec % Los Azules (68.1% attrib.) - - - 655,122 0.06 1,158 655,122 0.06 1,158 1,815,546 0.04 2,588 0.2%Cu 90 Total - - - 655,122 0.06 1,158 655,122 0.06 1,158 1,815,546 0.04 2,588 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Met Rec % Los Azules (68.1% attrib.) - - - 655,122 2 37.9 655,122 2 37.9 1,815,546 2 92.2 0.2%Cu 90 Total - - - 655,122 2 37.9 655,122 2 37.9 1,815,546 2 92.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) COG Met Rec % Los Azules (68.1% attrib.) - - - 655,122 0.48 6.9 655,122 0.48 6.9 1,815,546 0.33 13.1 0.2% Cu 90 Total - - - 655,122 0.48 6.9 655,122 0.48 6.9 1,815,546 0.33 13.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) COG Met Rec % Los Azules (68.1% attrib.) - - - 655,122 0.003 39 655,122 0.003 39 1,815,546 0.003 132.1 0.2%Cu 90 Total - - - 655,122 0.003 39 655,122 0.003 39 1,815,546 0.003 132.1 ​ ​ ​ 10 Table of Contents Mineral resources, exclusive of reserves, as at December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec % Los Azules (82% attrib.) - - - 788,800 0.06 1,394 788,800 0.06 1,394 2,186,000 0.04 3,116 0.2%Cu 90 Total - - - 788,800 0.06 1,394 788,800 0.06 1,394 2,186,000 0.04 3,116 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Met Rec % Los Azules (82% attrib.) - - - 788,840 1.8 45.7 788,800 1.8 45.7 2,186,000 1.6 111 0.2%Cu 90 Total - - - 788,840 1.8 45.7 788,800 1.8 45.7 2,186,000 1.6 111 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) COG Met Rec % Los Azules (82% attrib.) - - - 788,800 0.48 8.4 788,800 0.48 8.4 2,186,000 0.33 15.8 0.22% Cu 90 Total - - - 788,800 0.48 8.4 788,800 0.48 8.4 2,186,000 0.33 15.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) COG Met Rec % Los Azules (82% attrib.) - - - 788,800 0.003 47 788,800 0.003 47 2,186,000 0.003 159.1 0.2%Cu 90 Total - - - 788,800 0.003 47 788,800 0.003 47 2,186,000 0.003 159.1 ​ ​ ​ The following table is a variance of the mineral resources from December 31, 2021 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property Measured Indicated Measured & Indicated Inferred ​ Mass % Grade % Metal % Mass % Grade % Metal % Mass % Grade % Metal % Mass % Grade % Metal % Froome -5.8 -7.4 -12.4 -57.9 4.6 -55.6 -29.2 -2.1 -30.4 -21 -1.8 -20.7 Grey Fox - - - - - - - - - - - - Stock West - - - 9.3 -4.2 4.9 9.3 -4.2 4.9 -0.8 -3 -3.6 Stock East - - - - - - - - - - - - Fuller - - - - - - - - - - - - Gold Bar mine - - - 148.9 -59.4 1.8 148.9 -59.4 1.8 -21.6 78.8 41.9 Los Azules - - - -16.9 - -16.9 -16.9 - -16.9 -16.9 - -16.9 Fenix Project - - - - - - - - - - - - ​ Notes to the 2022 Mineral Resource tables Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Biggest changeEl Gallo Silver’s recoveries are 86% Au and 75% Ag. 9 Table of Contents MSC ​ Mineral resources, exclusive of reserves, as at December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG AgEq (g/t) Met Rec (%) San José (49% attrib.) 113 4.14 15.1 110 2.64 9.3 223 3.40 24.4 864 5.04 140.1 249 90 Total 113 4.14 15.1 110 2.63 9.3 223 3.40 24.4 864 5.04 140.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG AgEq (g/t) Met Rec (%) San José (49% attrib.) 113 223.00 0.8 110 185.00 0.7 223 204.00 1.5 864 329.00 9.1 249 90 Total 113 223.00 0.8 110 185.00 0.7 223 204.00 1.5 864 329.00 9.1 ​ ​ ​ Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG AgEq (g/t) Met Rec (%) San José (49% attrib.) 110 4.52 16.0 100 2.82 9.0 210 3.70 25.0 1,010 5.99 194.0 293 90 Total 110 4.52 16.0 100 2.82 9.0 210 3.70 25.0 1,010 5.99 194.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG AgEq (g/t) Met Rec (%) San José (49% attrib.) 110 259.00 0.9 100 168.00 0.5 210 216.00 1.5 1,010 404.00 13.1 293 90 Total 110 259.00 0.9 100 168.00 0.5 210 216.00 1.5 1,010 404.00 13.1 ​ ​ ​ McEwen Copper ​ Mineral resources, exclusive of reserves, as at December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Cu (%) Met Rec (%) Los Azules (47.7% attrib.) — — — 589,200 0.01 220 589,200 0.01 220 2,150,900 0.03 2020 0.031 62-66 Total — — — 589,200 0.01 220 589,200 0.01 220 2,150,900 0.03 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Cu (%) Met Rec (%) Los Azules (47.7% attrib.) — — — 589,200 0.25 4.8 589,200 0.25 4.8 2,150,900 1.0 71.1 0.031 54-69 Total — — — 589,200 0.25 4.8 589,200 0.25 4.8 2,150,900 1.0 71.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) COG Cu (%) Met Rec (%) Los Azules (47.7% attrib.) — — — 589,200 0.40 5.2 589,200 0.40 5.2 2,150,900 0.31 12.7 0.031 89-95 Total — — — 589,200 0.40 5.2 589,200 0.40 5.2 2,150,900 0.31 12.7 ​ ​ ​ 10 Table of Contents Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Cu (%) Met Rec (%) Los Azules (68.1% attrib.) — — — 655,122 0.06 1158 655,122 0.06 1158 1,815,546 0.04 2588 0.2 90 Total — — — 655,122 0.06 1158 655,122 0.06 1158 1,815,546 0.04 2588 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Cu (%) Met Rec (%) Los Azules (68.1% attrib.) — — — 655,122 2.00 37.9 655,122 2.00 37.9 1,815,546 2.00 92.2 0.2 90 Total — — — 655,122 2.00 37.9 655,122 2.00 37.9 1,815,546 2.00 92.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Copper Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) Tonnes (000s) Cu Grade (%) Contained Cu (Blbs) COG Cu (%) Met Rec (%) Los Azules (68.1% attrib.) — — — 655,122 0.48 6.9 655,122 0.48 6.9 1,815,546 0.33 13.1 0.2 90 Total — — — 655,122 0.48 6.9 655,122 0.48 6.9 1,815,546 0.33 13.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Molybdenum Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) Tonnes (000s) Mo Grade (%) Contained Mo (Mlbs) COG Cu (%) Met Rec (%) Los Azules (68.1% attrib.) — — — 655,122 0.00 39.0 655,122 0.00 39.0 1,815,546 0.00 132.1 0.2 90 Total — — — 655,122 0.00 39.0 655,122 0.00 39.0 1,815,546 0.00 132.1 ​ ​ ​ The following table is a variance of the mineral resources from December 31, 2022 and December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property Measured Indicated Measured & Indicated Inferred ​ Mass % Grade % Metal % Mass % Grade % Metal % Mass % Grade % Metal % Mass % Grade % Metal % Froome (49.2) (6.3) (52.5) (1.9) (4.1) (5.6) (36.6) (5.6) (40.0) (34.4) 5.5 (30.4) Grey Fox — — — — — — — — — — — — Stock West — — — 51.4 (9.8) 36.4 51.4 (9.8) 36.4 33.1 (7.5) 23.4 Stock East — — — — — — — — — — — — Fuller — — — — — — — — — — — — Gold Bar mine — — — 0.7 (3.8) (3.8) 0.7 (3.8) (3.8) (53.8) (12.8) (59.7) Los Azules — — — (10.1) (16.7) (24.6) (10.1) (16.7) (24.6) 18.5 (6.1) (3.1) San José mine — — — ​ ​ ​ — — — — — — Fenix Project (8.2) 10.9 2.1 21.3 17.4 47.1 1.4 7.7 9.3 50.0 32.3 100.0 ​ Notes to the 2023 Mineral Resource tables Mineral resources are not mineral reserves and do not have demonstrated economic viability.
At our Froome mine in Canada, mineralized material from the underground mine is transported to our Stock mill and fed to a crushing circuit. Final sized product is then leached with cyanide, and gold-cyanide in solution is recovered to activated carbon.
At our Froome mine in Canada, mineralized material from the underground mine is transported to our Stock mill and fed to a crushing circuit. The final sized product is then leached with cyanide, and gold-cyanide in solution is recovered to activated carbon.
Mineral resources for Grey Fox are reported above an economic cut-off grade of 2.30 g/t gold assuming underground extraction methods and based on a mining cost of C$80/t, process cost of C$24.34/t, G&A cost of C$10.50/t, haulage cost of C$5.64/t, refining cost of C$1.82/oz, metallurgical recovery of 85%, royalty NSR of 2.65%, dilution of 15%, and gold price of $1,725/oz. 11 Table of Contents Mineral resources for Stock West are reported above an economic cut-off grade of 1.95 g/t gold assuming underground extraction methods and based on a mining cost of C$80/t, process cost of C$24.34/t, G&A cost of C$10.50/t, refining cost of C$1.82/oz, metallurgical recovery of 94%, dilution of 15%, and gold price of $1,725/oz.
Mineral resources for Grey Fox are reported above an economic cut-off grade of 2.30 g/t gold assuming underground extraction methods and based on a mining cost of C$80/t, process cost of C$24.34/t, G&A cost of C$10.50/t, haulage cost of C$5.64/t, refining cost of C$1.82/oz, metallurgical recovery of 85%, NSR royalty of 2.65%, dilution of 15%, and gold price of $1,725/oz. 11 Table of Contents Mineral resources for Stock West are reported above an economic cut-off grade of 1.95 g/t gold assuming underground extraction methods and based on a mining cost of C$80/t, process cost of C$24.34/t, G&A cost of C$10.50/t, refining cost of C$1.82/oz, metallurgical recovery of 94%, dilution of 15%, and gold price of $1,725/oz.
Mineral Resources for Fuller are reported above an economic cut-off grade of 2.30 g/t gold assuming underground extraction methods and based on a mining cost of C$90/t, process cost of C$24.55/t, G&A cost of C$10.50/t, haulage cost of C$6.64/t, metallurgical recovery of 88%, 10% Net Profits Interest (NPI) royalty, dilution of 10% and gold price of $1,725/oz.
Mineral Resources for Fuller are reported above an economic cut-off grade of 2.30 g/t gold assuming underground extraction methods and based on a mining cost of C$90/t, process cost of C$24.55/t, G&A cost of C$10.50/t, haulage cost of C$6.64/t, metallurgical recovery of 88%, 10% Net Profits Interest royalty, dilution of 10% and gold price of $1,725/oz.
These prices were based off the 3-year trailing average of the London Closing Fix for 2017-2019 ($1,306 and $16.32) sourced from Kitco’s Historical Data charts. ​ Mineral resources are stated as in situ for El Gallo Silver, and as crushed and stacked, ready for hauling and processing for the El Gallo mine HLM. ​ El Gallo Silver: Milling recovery assumptions of 86% (sulfide) and 75% (oxide) for silver and 86% gold.
These prices were based off the 3-year trailing average of the London Closing Fix for 2017 to 2019 ($1,306/oz and $16.32/oz) sourced from Kitco’s Historical Data charts. ​ Mineral resources are stated as in situ for El Gallo Silver, and as crushed and stacked, ready for hauling and processing for the El Gallo mine HLM. ​ El Gallo Silver: Milling recovery assumptions of 86% (sulfide) and 75% (oxide) for silver and 86% gold.
(2) The reserve estimate for the San José mine as at December 31, 2021, presented on a 49% basis, was prepared by Hochschild and audited by P&E. 6 Table of Contents Notes to the 2022 Mineral Reserve tables Gold Bar mine Mineral reserves equal the total ore planned for processing from the mine plan based on a $1,650/oz gold price.
(2) The reserve estimate for the San José mine as at December 31, 2022, presented on a 49% basis, was prepared by Hochschild and audited by P&E. ​ ​ 6 Table of Contents Notes to the 2023 Mineral Reserve tables Gold Bar mine Mineral reserves equal the total ore planned for processing from the mine plan based on a $1,650/oz gold price.
(“McEwen Copper”), through which we hold an indirect interest in Los Azules in the province of San Juan, Argentina and the Elder Creek exploration property in Nevada.
(“McEwen Copper”), through which we hold an indirect interest in Los Azules, located in the province of San Juan, Argentina, and the Elder Creek exploration property, located in Nevada.
Ounces of gold and silver or pounds of copper and molybdenum included in the measured, indicated and inferred resources are those contained prior to losses during metallurgical treatment.
Ounces of gold and silver or pounds of copper included in the measured, indicated and inferred resources are those contained prior to losses during metallurgical treatment.
Mexico ​ Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec % Fenix Project 9,800 0.46 145 4,700 0.23 34 14,500 0.39 182 200 0.31 2 var (1) var (2) Total 9,800 0.46 145 4,700 0.23 34 14,500 0.39 182 200 0.31 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Au Grade (g/t) Contained Ag (Moz) Tonnes (000s) Au Grade (g/t) Contained Ag (Moz) Tonnes (000s) Au Grade (g/t) Contained Ag (Moz) Tonnes (000s) Au Grade (g/t) Contained Ag (Moz) COG Met Rec % Fenix Project 9,800 17 5.2 4,700 95 14.3 14,500 42 19.5 200 40 0.3 var (1) var (2) Total 9,800 17 5.2 4,700 95 14.3 14,500 42 19.5 200 40 0.3 ​ ​ (1) The El Gallo mine HLM has no COG as the entire heap is processed with zero selectivity.
Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec (%) Fenix Project 9,800 0.46 145 4,700 0.23 34 14,500 0.39 182 200 0.31 2 var (1) var (2) Total 9,800 0.46 145 4,700 0.23 34 14,500 0.39 182 200 0.31 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Met Rec (%) Fenix Project 9,800 17 5.2 4,700 95 14.3 14,500 42 19.5 200 40 0.3 var (1) var (2) Total 9,800 17 5.2 4,700 95 14.3 14,500 42 19.5 200 40 0.3 ​ ​ ​ (1) The El Gallo mine’s HLM has no COG as the entire heap is processed with zero selectivity.
The following changes have impacted mineral reserves during 2022: Mining depletion at Pick and Gold Bar South; operating costs increase largely driven by an increase in mining costs; revised interpretation of the mineralization and geological model, project costs were re-estimated based on current mining activity and new contractor quotes; an update to the mining schedule based on the costs.
The following changes have impacted mineral reserves during 2023: mining depletion at Pick and Gold Bar South; operating costs increase largely driven by an increase in mining costs; revised interpretation of the mineralization and geological model, project costs were re-estimated based on current mining activity and new contractor quotes; an update to the mining schedule based on the costs.
Such write- downs may adversely affect our results of operations and financial condition. ● A significant delay or disruption in sales of concentrates or doré as a result of the unexpected disruption in services provided by smelters or refiners or other third parties could have a material adverse effect on our results of operations. ​ 17 Table of Contents
Such write downs may adversely affect our results of operations and financial condition. 17 Table of Contents ● A significant delay or disruption in sales of concentrate or doré as a result of the unexpected disruption in services provided by smelters or refiners or other third parties could have a material adverse effect on our results of operations. ​
Of our employees in Mexico, 35 are covered by union labor contracts and we believe we have good relations with them. As part of our fundamental need to attract and retain talent, we regularly evaluate our compensation, benefits and employee wellness offerings. We have determined that our compensation arrangements are competitive in the industry.
Of our employees in Mexico, 39 are covered by union labor contracts and we believe we have good relations with them. As part of our fundamental need to attract and retain talent, we regularly evaluate our compensation, benefits, and employee wellness offerings. We have determined that our compensation arrangements are competitive in the industry.
The December 31, 2022 mineral reserves estimate was based on a gold price of $1,650/oz and a silver price of $22/oz. P&E determined that these metal prices are suitable to be utilized for mineral reserve estimation since they are based on recognized consensus forecast metal prices.
The December 31, 2023 mineral reserves estimate was based on a gold price of $1,650/oz and a silver price of $22/oz. P&E determined that these metal prices are suitable to be utilized for mineral reserve estimation since they are based on recognized consensus forecast metal prices.
Under CERCLA, any present or past owners or operators of a Superfund site generally may be held liable and may be forced to undertake remedial cleanup action or to pay for the government’s cleanup efforts. Such owners or operators may also be liable to governmental entities for the cost of damages to natural resources, which may be substantial.
Under CERCLA, any present or past owners or operators of a Superfund site generally may be held liable and may be forced to undertake remedial cleanup action or to pay for the government’s cleanup efforts. Such owners or operators may also be liable to governmental entities for the cost of damage to natural resources, which may be substantial.
There is no certainty that any part of the mineral resources estimated will be converted into a mineral reserves estimate. The numbers in the tables have been rounded to reflect the accuracy of the estimates and may not sum due to rounding.
There is no certainty that any part of the mineral resources estimated will be converted into a mineral reserve estimate. The numbers in the tables have been rounded to reflect the accuracy of the estimates and may not sum due to rounding.
For the 2022 mineral reserves estimate, inaccessible mineral resources that contained insufficient tonnages to permit the development of local infrastructure, mineral resources in mined out/isolated areas, mineral resources located in sill and rib pillars and operationally lost mineral resources were not included in the mineral reserves estimate.
For the 2023 mineral reserves estimate, inaccessible mineral resources that contained insufficient tonnages to permit the development of local infrastructure, mineral resources in mined out/isolated areas, mineral resources located in sill and rib pillars and operationally lost mineral resources were not included in the mineral reserves estimate.
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.
Our common stock is listed on the New York Stock Exchange (“NYSE”) and on the Toronto Stock Exchange (“TSX”) under the symbol “MUX.” 3 Table of Contents 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.
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. We also maintain offices in Elko, Nevada (U.S.), Matheson, Canada, Guamúchil, Mexico, and San Juan, Argentina. Our website is www.mcewenmining.com.
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. We also maintain offices in Elko, Nevada (U.S.), Matheson, Canada and Guamúchil, Mexico. 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 Ethics, on our website.
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.
The gold price used in estimating mineral resources of $1,725 was based on long-term consensus pricing forecasts published in late 2022. Resources are stated as in-situ. In addition, underground constraining shapes were used to better define reasonable prospects for eventual economic extraction.
The gold price used in estimating mineral resources of $1,725 was based on long-term consensus pricing forecasts published in late 2022 and into 2023. Resources are stated as in-situ. In addition, underground constraining shapes were used to better define reasonable prospects for eventual economic extraction.
Additional regulations or requirements may also be imposed upon our operations, tailings, and waste disposal areas, as well as upon mine closure under federal and state environmental laws and regulations, including, without limitation, CERCLA, the Clean Water Act, Clean Air Act, the Endangered Species Act and state law equivalents.
Additional regulations or requirements may also be imposed upon our operations, tailings, and waste disposal areas, as well as upon mine closure under federal and state environmental laws and regulations, including, without limitation, CERCLA, the Clean Water Act, Clean Air Act, the Endangered Species Act, and state law equivalents. See Item 8 .
Mineral reserves are contained within an engineered pit design between the $1,250/oz and $1,400/oz gold sales price Lerchs-Grossman pit shells, based on end of November 2022 topography. The metal price used ($1,650) for mineral reserves reflects a conservative combination of a recent trailing average sourced from Kitco’s Historic Price data and a consensus forecast via Bloomberg.
Mineral reserves are contained within an engineered pit design between the $1,250/oz and $1,400/oz gold sales price Lerchs-Grossman pit shells, based on end of December 2023 topography. The metal price used ($1,650/oz) for mineral reserves reflects a conservative combination of a recent trailing average sourced from Kitco’s Historic Price data and a consensus forecast via Bloomberg.
Proven and probable reserves disclosed at December 31, 2022 and 2021 have been prepared in accordance with the Regulation S-K 1300 requirements of the SEC.
Proven and probable reserves disclosed at December 31, 2023, and 2022 have been prepared in accordance with the Regulation S-K 1300 requirements of the SEC.
All our employees based in Toronto work in an executive, technical or administrative position, while our employees in the United States, Timmins, Mexico, and Argentina include management, laborers, craftsmen, miners, geologists, environmental specialists, information technologists, and various other support roles. As of December 31, 2022, MSC had 1,348 employees in Argentina.
All our employees based in Toronto work in an executive, technical or administrative position, while our employees in the United States, Timmins, and Mexico include management, laborers, craftsmen, miners, geologists, environmental specialists, information technologists, and various other support roles. As of December 31, 2023, MSC had 1,402 employees in Argentina.
Current production is from our Pick and Ridge deposits, and in December 2022 we began mining from our Gold Bar South (“GBS”) deposit. At the El Gallo mine in Sinaloa, Mexico, mining and crushing activities ceased during the second quarter of 2018, with production activities since that time limited to residual leaching up to the third quarter of 2022.
Current production is from our Pick, Ridge and Gold Bar South (“GBS”) deposits. At the El Gallo mine in Sinaloa, Mexico, mining and crushing activities ceased during the second quarter of 2018, with production activities since that time limited to residual leaching up to the third quarter of 2022.
San José mine Mineral reserves are reported at McEwen’s 49% attributable interest. Hochschild hold a 51% interest in San José. COG is reported in silver equivalent grams per tonne, calculated using a ratio of 75:1 Ag:Au. For mineral reserves, the silver equivalent COG is: cut & fill 311 g/t silver equivalent, long hole 250 g/t silver equivalent.
San José mine Mineral reserves are reported at McEwen’s 49% attributable interest. Hochschild hold a 51% interest in San José. COG is reported in silver equivalent grams per tonne, calculated using a ratio of 75:1 Ag:Au. For mineral reserves, the silver equivalent COG is: cut & fill 271 g/t silver equivalent, long hole 213 g/t silver equivalent.
We own 100% of the Froome mine and Stock mill in Ontario, Canada, a 100% interest in the Gold Bar mine in Nevada, 100% of the Fenix Project in Sinaloa, Mexico, 68.1% of 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.
We own 100% of the Froome mine and Stock mill in Ontario, Canada, 100% of the Gold Bar mine in Nevada, 100% of the Fenix Project in Sinaloa, Mexico, 47.7% 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.
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 2022, production consisted of 100% doré from the Gold Bar mine, 99% doré and 1% slag and fine carbon from the Fox Complex, and 92% doré and 8% slag and fine carbon from the El Gallo mine.
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 2023, production consisted of 100% doré from the Gold Bar mine, 99% doré and 1% slag and fine carbon from the Fox Complex, and 100% slag and fine carbon from El Gallo Mine.
Cut-off grades are reported in silver equivalent grams per tonne, calculated using a ratio of 75:1 Ag:Au. For mineral resources, the silver equivalent cut-off grades are: 293 g/t silver equivalent. The December 31, 2022 mineral resource estimate was based on a gold price of $1,800/oz and a silver price of $24/oz.
Cut-off grades are reported in silver equivalent grams per tonne, calculated using a ratio of 75:1 Ag:Au. For mineral resources, the silver equivalent cut-off grades are: 249 g/t silver equivalent. The December 31, 2023 mineral resource estimate was based on a gold price of $1,800/oz and a silver price of $24/oz.
(2) The reserve estimate for the San José mine as at December 31, 2022, presented on a 49% basis, was prepared by Hochschild and audited by P&E Mining Consultants Inc. (“P&E”).
(2) The reserve estimate for the San José mine as at December 31, 2023, presented on a 49% basis, was prepared by and audited by P&E Mining Consultants Inc. (“P&E”).
Recoveries are variable and as follows: 78% crushed oxide recovery at Pick and Ridge, 72% ROM oxide recovery at Pick and Ridge, 61% ROM oxide recovery at Gold Bar South, and 0% ROM mid-carbon recovery. COGs are variable and based on the presence or not of clay content, carbon content and recoveries and range from 0.0065 o/t to 0.0121 o/t.
Recoveries are variable and as follows: 78% crushed oxide recovery at Pick and Ridge, 72% ROM oxide recovery at Pick and Ridge, 61% ROM oxide recovery at Gold Bar South, and 0% ROM mid-carbon recovery. COGs are variable and based on the presence or not of clay content, carbon content and recoveries and range from 0.0054 o/t to 0.0129 o/t.
See Note 12 to our consolidation financial statements, Reclamation and Remediation Liabilities, for information on reclamation obligations under governmental environmental laws. We have reviewed and considered current federal legislation relating to climate change and do not believe it to have a material effect on our operations.
Financial Statements and Supplementary Data , Note 12 , Reclamation and remediation liabilities , for information on reclamation obligations under governmental environmental laws. We have reviewed and considered current federal legislation relating to climate change and do not believe it to have a material effect on our operations.
The Froome mine and Stock West used improvements to modeling and estimation methodology and updates based on drilling results.
The Froome mine and Stock West used improvements to modeling and estimation methodology and updates based on drilling and chip sampling results.
Mineral resources stated are contained within a $1,725/oz gold sales price Lerchs-Grossmann pits based on end of November 2022 topography. The gold price used in estimating mineral resources of $1,725 was based on long-term consensus pricing forecasts published in late 2022. Resources are reported as in-situ.
Mineral resources stated are contained within a $1,725/oz gold sales price Lerchs-Grossmann pits based on end of December 2023 topography. The gold price used in estimating mineral resources of $1,725 was based on long-term consensus pricing forecasts published in late 2022 and into 2023. Resources are reported as in-situ.
The Froome mine also included changes due to mining depletion. ​ United States - Gold Bar mine Mineral resources are based on the following economic input parameters: $3.19/ore ton mining cost, $1.99/waste ton mining cost, $4.91/ore ton crushed process cost, $3.77/ore ton ROM process cost, $3.16/ore ton G&A cost, $0.475/oz gold refining charge, $1.538/oz transport & sales cost, 99.95% payable gold, and a 1% royalty (Gold Bar South only).
The Froome mine also included changes due to mining depletion. ​ United States - Gold Bar mine Mineral resources are based on the following economic input parameters: $5.73/ore ton mining cost, $4.37/waste ton mining cost, $4.91/ore ton crushed process cost, $2.33/ore ton ROM process cost, $3.22/ore ton G&A cost, $0.475/oz gold refining charge, $1.538/oz transport & sales cost, 99.95% payable gold, and a 1% royalty (Gold Bar South only).
MSC has sales agreements with each of these purchasers. The remaining 8% of San José’s sales are made to a number of customers under smaller contract quantities. In the event that our customer relationships or MSC’s customer relationships were interrupted for any reason, we believe that we or MSC could locate other purchasers for our products.
MSC has sales agreements with each of these purchasers. The remaining 12% of San José’s sales are made to several customers under smaller contract quantities. If our customer relationships or MSC’s customer relationships were interrupted for any reason, we believe that we or MSC could locate other purchasers for our products.
Market fluctuations in the price of gold or silver, as well as increased production costs or reduced metallurgical recovery rates, could render certain proven and probable reserves containing higher cost reserves uneconomic to exploit and might result in a reduction of reserves.
Reserve estimates may require revision based on actual production. Market fluctuations in the price of gold or silver, as well as increased production costs or reduced metallurgical recovery rates, could render certain proven and probable reserves containing higher cost reserves uneconomic to exploit and might result in a reduction of reserves.
Mineral reserves as presented are in place and include average internal dilution of 6%, average mining and geotechnical dilution of 51%, and mine extraction of 29%, but do not include allowances for mill or smelter recoveries.
Mineral reserves as presented are in place and include average internal dilution of 5%, average mining and geotechnical dilution of 48%, and mine extraction of 32%, but do not include allowances for mill or smelter recoveries.
Proven and Probable Mineral Reserves We had attributable estimated proven and probable gold reserves of 0.3 million ounces of gold at our Gold Bar mine and the San José mine, and 5.1 million ounces of proven and probable silver reserves at the San José mine at December 31, 2022.
Proven and Probable Mineral Reserves We had attributable estimated proven and probable gold reserves of 0.3 million ounces of gold at our Gold Bar mine and the San José mine, and 4.9 million ounces of proven and probable silver reserves at the San José mine at December 31, 2023.
There was a minor amount of metal recovered of 844 ounces of gold and 616 ounces of silver at the operation in 2022. ​ MSC - San José mine Mineral resources are reported at McEwen’s 49% attributable interest. Hochschild has a 51% interest in San José. Mineral resources are in situ.
There was a very minor amount of metal recovered of 211 ounces of gold at the operation in 2023. ​ MSC - San José mine Mineral resources are reported at McEwen’s 49% attributable interest. Hochschild has a 51% interest in San José. Mineral resources are in situ.
We had attributable estimated inferred mineral resources of 3.3 million ounces of gold, 105.6 million ounces of silver, and 5.9 million tonnes (or 13.1 billion pounds) of copper at December 31, 2022. ​ 7 Table of Contents The measured, indicated, and inferred resource figures presented herein are estimates based on information available at the time of calculation and are exclusive of reserves.
We had attributable estimated inferred mineral resources of 2.7 million ounces of gold, 80.5 million ounces of silver, and 5.8 million tonnes (or 12.7 billion pounds) of copper at December 31, 2023. ​ 7 Table of Contents The measured, indicated, and inferred resource figures presented herein are estimates based on information available at the time of calculation and are exclusive of reserves.
Mine depletion, commodity price changes and equivalents leading to cut-off grade changes will also have an effect on the comparative data. McEwen Copper - Los Azules The mineral resources estimate for Los Azules is reported inside of a pit shell.
Mine depletion, commodity price changes and equivalents leading to cut-off grade changes will also have an effect on the comparative data. McEwen Copper - Los Azules The mineral resources estimate for Los Azules is reported inside of an optimized pit shell demonstrating its reasonable prospects for eventual economic extraction (“RPEEE”).
Over 93% of our U.S. employees are enrolled in our medical benefit plan, over 90% of U.S. employees contribute to our 401(k) plan and 94% of employees in Canada contribute to our Deferred Profit Share Plan.
Over 93% of our U.S. employees are enrolled in our medical benefit plan, over 90% of U.S. employees contribute to our 401(k) plan and 94% of employees in Canada contribute to our registered retirement plans.
Mineral reserves are based on the following economic input parameters: $4.97/ average ore tonne mining cost, $3.35/ average waste tonne mining cost, $5.41/ore tonne crushed process cost, $4.13/ average ore tonne run-of-mine (“ROM”) process cost, $3.06/ average ore tonne general and administrative (“G&A”) cost, $0.475/oz gold refining charge, $1.538/oz transport & sales cost, 99.95% payable gold, and a 1% royalty at GBS only.
Mineral reserves are based on the following economic input parameters: $6.17 per average ore tonne mining cost, $4.52 per average waste tonne mining cost, $6.25 per ore tonne crushed process cost, $2.57 per average ore tonne run-of-mine (“ROM”) process cost, $3.22 per average ore tonne general and administrative (“G&A”) cost, $0.475/oz gold refining charge, $1.538/oz transport & sales cost, 99.95% payable gold, and a 1% royalty at GBS only.
During the year ended December 31, 2022, 92% of the total sales from the San José mine were made to three companies: Aurubis AG, a German company, accounted for 15% of the total sales; LS Nikko Copper, a Korean company, accounted for 35% of the total sales and Argor-Heraeus, a Swiss company, accounted for 42% of the total sales.
During the year ended December 31, 2023, 88% of the total sales from the San José mine were made to three companies: Aurubis AG, a German company, accounted for 23% of the total sales; LS Nikko Copper, a Korean company, accounted for 33% of the total sales, and Argor-Heraeus, a Swiss company, accounted for 32% of the total sales.
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 in the form of doré or concentrate.
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 of our gold and silver operations is generally in the form of doré or concentrate.
Mineral resources, exclusive of reserves, as at December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au g/t Met Rec % Gold Bar mine - - - 1,342 1.92 82.4 1,342 1.92 82.4 1,774 0.79 44.4 0.0065 - 0.0121 var (1) Total - - - 1,342 1.92 82.4 1,342 1.92 82.4 1,774 0.79 44.4 ​ ​ (1) 78% crushed oxide recovery at Pick & Ridge, 50% mid-carbon recovery at Pick & Ridge, 72% ROM oxide recovery at Pick & Ridge, 61% ROM oxide recovery at GBS, 0% ROM mid-carbon recovery.
Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au (g/t) Met Rec (%) Gold Bar mine — — — 3,339 0.78 83.9 3,339 0.78 83.9 1,391 1.41 63.0 0.0065 - 0.0121 var (1) Total — — — 3,339 0.78 83.9 3,339 0.78 83.9 1,391 1.41 63.0 ​ ​ ​ (1) 78% crushed oxide recovery at Pick & Ridge, 50% mid-carbon recovery at Pick & Ridge, 72% ROM oxide recovery at Pick & Ridge, 61% ROM oxide recovery at GBS, 0% ROM mid-carbon recovery.
The following tables summarize the estimated proven and probable gold and silver reserves attributable to our ownership or economic interest as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Reserves at December 31, 2022 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) Gold Bar mine (1) - - - ​ 5,943 1.07 204 ​ 5,943 1.07 204 San José mine (2) 251 5.95 48 ​ 209 6.88 46 ​ 461 6.37 94 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Reserves at December 31, 2022 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) San José mine (2) 251 337 2.7 ​ 209 346 2.3 ​ 461 341 5.1 (1) The reserve estimate for the Gold Bar mine as at December 31, 2022 is based on November 30, 2022 topography prepared by Joseph McNaughton, P.E., Senior Mining Engineers, Partner, Independent Mining Consultants.
The following tables summarize the estimated proven and probable gold and silver reserves attributable to our ownership or economic interest as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Reserves at December 31, 2022 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) Gold Bar mine (1) — — — ​ 5,943 1.1 204 ​ 5,943 1.1 204 San José mine (2) 251 6.0 48 ​ 209 6.9 46 ​ 461 6.4 94 ​ Silver Reserves at December 31, 2022 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) San José mine (2) 251 337 2.7 ​ 209 346 2.3 ​ 461 341 5.1 (1) The reserve estimate for the Gold Bar mine as at December 31, 2022 was prepared by Independent Mining Consultants.
During 2021 and 2022, we closed a $81.9 million private placement offering for a 31.9% interest in McEwen Copper, which included a $40 million investment by an affiliate of our Chairman and Chief Executive Officer, Robert McEwen. Our objective is to increase shareholder value through the exploration for and economic extraction of gold, silver and other valuable minerals.
From 2021 to 2023, we closed a total of $267.3 million in private placement offerings of McEwen Copper, which included a $40 million investment by an affiliate of our Executive Chairman and Chief Owner, Robert McEwen. Our objective is to increase shareholder value through the exploration for and economic extraction of gold, silver, and other valuable minerals.
MSC is controlled by the majority owner of the joint venture, Hochschild Mining plc (“Hochschild”). In addition to the above, we hold interests in advanced-stage and exploration-stage properties and 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.
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.
Mineral resources are in-situ and are reported at McEwen’s 68.1% attributable interest. ​ Competitive Business Conditions We compete with many companies in the mining and mineral exploration and production industry, including large, established mining companies with substantial capabilities, personnel, and financial resources.
Competitive Business Conditions We compete with many companies in the mining and mineral exploration and production industry, including large, established mining companies with substantial capabilities, personnel, and financial resources.
Other than the San José mine in Argentina, we generally conduct our activities as the sole operator, 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, each of which is owned directly, or indirectly, by us.
Other than the San José mine and the Los Azules copper project, both located in Argentina, we generally conduct our activities as the sole operator, 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.
Measured, Indicated, and Inferred Mineral Resources ​ We had attributable estimated measured and indicated mineral resources of 3.3 million ounces of gold, 58.9 million ounces of silver, and 3.1 million tonnes (or 6.9 billion pounds) of copper at December 31, 2022.
Measured, Indicated, and Inferred Mineral Resources ​ We had attributable estimated measured and indicated mineral resources of 2.4 million ounces of gold, 26.3 million ounces of silver, and 2.4 million tonnes (or 5.2 billion pounds) of copper at December 31, 2023.
However, any interruption may temporarily disrupt the sale of our products and may affect our operating results. Human Capital Resources As of December 31, 2022, we had 520 employees, including 75 in the United States, 25 in Toronto, Ontario, Canada, 193 in Timmins, Ontario, Canada, 84 in Mexico, and 143 in Argentina.
However, any interruption may temporarily disrupt the sale of our products and may affect our operating results. Human Capital Resources As of December 31, 2023, we had 575 employees, including 100 in the United States, 22 in Toronto, Ontario, Canada, 192 in Timmins, Ontario, Canada, and 87 in Mexico.
The term “probable reserves” means reserves for which quantity and grade are computed from information similar to that used for proven reserves, but the sites for sampling are farther apart or are otherwise less closely spaced.
The term “probable reserves” means reserves for which quantity and grade are computed from information similar to that used for proven reserves, but the sites for sampling are farther apart or are otherwise less closely spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.
Mining costs of $1.95/t, processing and G&A costs of $26.15/t milled were used. Mineral resources are stated within an optimized pit shell indicating reasonable prospects for eventual economic extraction. ​ HLM: Because of the unconsolidated nature of the heap leach material, the mine schedule plans to mine the entire heap without the benefit of selectivity.
Mineral resources are stated using a cut-off grade of 58 g/t Ag within an optimized pit shell indicating reasonable prospects for eventual economic extraction. ​ HLM: Because of the unconsolidated nature of the heap leach material, the mine schedule plans to mine the entire heap without the benefit of selectivity.
Measured, indicated, and inferred resources disclosed at December 31, 2022 have been prepared in accordance with the new Regulation S-K 1300 requirements of the SEC. ​ The following tables summarize measured, indicated and inferred resources, exclusive of reserves attributable to our ownership or economic interest as of December 31, 2022: Canada ​ Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au gt Met Rec % Froome mine 744 4.14 99 270 4.10 36 1,014 4.13 135 218 3.26 23 2.35 87 Grey Fox - - - 7,566 4.80 1,168 7,566 4.80 1,168 1,685 4.35 236 2.30 85 Stock West - - - 1,280 3.67 151 1,280 3.67 151 1,041 3.20 107 1.95 94 Fuller - - - 1,149 4.25 157 1,149 4.25 157 693 3.41 76 2.30 88 Stock East - - - 1,232 2.41 95 1,232 2.40 95 21 2.32 2 1.67 94 Others 504 6.42 104 1,221 2.19 86 1,725 3.43 190 254 5.02 41 ​ ​ Total 1,248 5.06 203 12,718 4.14 1,693 13,966 4.22 1,896 3,912 3.86 485 ​ ​ ​ Mineral resources, exclusive of reserves, as at December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au gt Met Rec % Froome mine 790 4.47 113 641 3.92 81 1,432 4.22 194 276 3.32 29 2.35 87 Grey Fox - - - 7,566 4.80 1,168 7,566 4.80 1,168 1,685 4.35 236 2.30 85 Stock West - - - 1,171 3.83 144 1,171 3.82 144 1,049 3.30 111 1.95 94 Fuller - - - 1,149 4.25 157 1,149 4.25 157 693 3.41 76 2.30 88 Stock East - - - 1,232 2.41 95 1,232 2.40 95 21 2.32 2 1.67 94 Others 484 6.30 98 1,227 2.18 86 1,711 3.34 184 309 5.13 51 ​ ​ Total 1,274 5.15 211 12,986 4.15 1,731 14,261 4.24 1,942 4,033 3.89 505 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 8 Table of Contents United States ​ Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au g/t Met Rec % Gold Bar mine - - - 3,339 0.78 83.9 3,339 0.78 83.9 1,391 1.41 63 0.0065 - 0.0121 var (1) Total - - - 3,339 0.78 83.9 3,339 0.78 83.9 1,391 1.41 63 ​ ​ (1) 78% crushed oxide recovery at Pick & Ridge, 50% mid-carbon recovery at Pick & Ridge, 72% ROM oxide recovery at Pick & Ridge, 61% ROM oxide recovery at GBS, 0% ROM mid-carbon recovery.
Measured, indicated, and inferred resources disclosed at December 31, 2023 have been prepared in accordance with Regulation S-K 1300 requirements of the SEC. ​ The following tables summarize measured, indicated and inferred resources, exclusive of reserves attributable to our ownership or economic interest as of December 31, 2023, and December 31, 2022: Canada ​ Mineral resources, exclusive of reserves, as at December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au (g/t) Met Rec (%) Froome mine 378 3.88 47 265 3.93 34 643 3.90 81 143 3.44 16 2.35 87 Grey Fox — — 0 7,566 4.80 1168 7,566 4.80 1168 1,685 4.35 236 2.30 85 Stock West — — 0 1,938 3.31 206 1,938 3.31 206 1,386 2.96 132 1.95 94 Fuller — — 0 1,149 4.25 157 1,149 4.25 157 693 3.41 76 2.30 88 Stock East — — 0 1,232 2.41 95 1,232 2.40 95 21 2.32 2 1.67 94 Others 504 6.42 104 1,221 2.19 86 1,725 3.43 190 254 5.02 41 ​ ​ Total 882 5.32 151 13,371 4.06 1746 14,253 4.14 1897 4,182 3.74 503 ​ ​ ​ Mineral resources, exclusive of reserves, as at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au (g/t) Met Rec (%) Froome mine 744 4.14 99 270 4.10 36 1,014 4.13 135 218 3.26 23 2.35 87 Grey Fox — — 0 7,566 4.80 1168 7,566 4.80 1168 1,685 4.35 236 2.30 85 Stock West — — 0 1,280 3.67 151 1,280 3.67 151 1,041 3.20 107 1.95 94 Fuller — — 0 1,149 4.25 157 1,149 4.25 157 693 3.41 76 2.30 88 Stock East — — 0 1,232 2.41 95 1,232 2.40 95 21 2.32 2 1.67 94 Others 504 6.42 104 1,221 2.19 86 1,725 3.43 190 254 5.02 41 ​ ​ Total 1,248 5.06 203 12,718 4.14 1693 13,966 4.22 1896 3,912 3.86 485 ​ ​ ​ 8 Table of Contents United States ​ Mineral resources, exclusive of reserves, as at December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Au (g/t) Met Rec (%) Gold Bar mine — — — 3,361 0.75 80.7 3,361 0.75 80.7 643 1.23 25.4 0.0054 - 0.0323 var (1) Total — — — 3,361 0.75 80.7 3,361 0.75 80.7 643 1.23 25.4 ​ ​ ​ (1) 78% crushed oxide recovery at Pick & Ridge, 50% mid-carbon recovery at Pick & Ridge, 72% ROM oxide recovery at Pick & Ridge, 61% ROM oxide recovery at GBS, 0% ROM mid-carbon recovery.
Customers Production from the Gold Bar mine, the Froome mine, and the El Gallo mine is sold as refined metal on the spot market or doré under the terms set out in doré purchase agreements. We have doré purchase agreements with Canadian financial institutions, Asahi Refining (“Asahi”), and with metals trading companies.
Customers Production from the Gold Bar mine and the Froome mine is sold as refined metal on the spot market or doré under the terms set out in doré purchase agreements. The Company has entered into doré purchase agreements with two Canadian financial institutions: Asahi Refining (“Asahi”), and Auramet International LLC (“Auramet”).
Fix prices per ounce for gold and London Fix prices per ounce for silver over the past three years and 2023 to the most recent practical date on the London Bullion Market: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ Silver Year ​ High ​ Low ​ Average ​ High ​ Low ​ Average ​ ​ (in dollars per ounce) 2020 ​ 2,067 ​ ​ 1,474 ​ ​ 1,770 ​ ​ 28.90 ​ ​ 12.00 ​ ​ 20.50 ​ 2021 ​ ​ 1,943 ​ ​ 1,684 ​ ​ 1,799 ​ ​ 29.59 ​ ​ 21.53 ​ ​ 25.14 ​ 2022 ​ ​ 2,039 ​ ​ 1,629 ​ ​ 1,800 ​ ​ 26.18 ​ ​ 17.77 ​ ​ 21.71 ​ 2023 (through March 10, 2023) ​ ​ 1,861 ​ ​ 1,816 ​ ​ 1,838 ​ ​ 21.09 ​ ​ 20.09 ​ ​ 20.65 ​ ​ On March 10, 2023, the London P.M.
Fix prices per ounce for gold and London Fix prices per ounce for silver over the past three years and 2024 to the most recent practical date on the London Bullion Market: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ Silver Year ​ High ​ Low ​ Average ​ High ​ Low ​ Average ​ ​ (in dollars per ounce) 2021 ​ $ 2,067 ​ $ 1,474 ​ $ 1,770 ​ $ 28.90 ​ $ 12.00 ​ $ 20.50 2022 ​ ​ 1,943 ​ ​ 1,684 ​ ​ 1,799 ​ ​ 29.59 ​ ​ 21.53 ​ ​ 25.14 2023 ​ ​ 2,078 ​ ​ 1,811 ​ ​ 1,940 ​ ​ 26.03 ​ ​ 20.09 ​ ​ 23.35 2024 (through March 14, 2024) ​ ​ 2,180 ​ ​ 1,985 ​ ​ 2,050 ​ ​ 24.97 ​ ​ 22.08 ​ ​ 23.05 ​ On March 14, 2024, the London P.M.
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 of our subsidiaries, including our 68.1% interest in McEwen Copper Inc. 3 Table of Contents Segment Information Our operating segments include Canada, United States, Mexico, MSC and McEwen Copper.
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. 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.
Mineral resources, exclusive of reserves, as at December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec % Fenix Project 9,800 0.46 146 4,700 0.23 35 14,500 0.39 182 200 0.31 2 var (1) var (2) Total 9,800 0.46 146 4,700 0.23 35 14,500 0.39 182 200 0.31 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Met Rec % Fenix Project 9,800 17 5.2 4,700 95 14.3 14,500 42 19.5 200 40 0.3 var (1) var (2) Total 9,800 17 5.2 4,700 95 14.3 14,500 42 19.5 200 40 0.3 ​ ​ (1) The El Gallo mine HLM has no COG as the entire heap is processed with zero selectivity.
Mexico ​ Mineral resources, exclusive of reserves, as at December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Measured Indicated Measured & Indicated Inferred ​ ​ ​ Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) Tonnes (000s) Au Grade (g/t) Contained Au (000s oz) COG Met Rec (%) Fenix Project 9,000 0.51 148 5,700 0.27 50 14,700 0.42 199 300 0.41 4 var (1) var (2) Total 9,000 0.51 148 5,700 0.27 50 14,700 0.42 199 300 0.41 4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) Tonnes (000s) Ag Grade (g/t) Contained Ag (Moz) COG Met Rec (%) Fenix Project 9,000 19 5.6 5,700 79 14.5 14,700 42 20.1 300 33 0.3 var (1) var (2) Total 9,000 19 5.6 5,700 79 14.5 14,700 42 20.1 300 33 0.3 ​ ​ ​ (1) The El Gallo mine’s HLM has no COG as the entire heap is processed with zero selectivity.
During 2022, revenues from gold and silver sales were $47.9 million from the Gold Bar mine, $60.8 million from the Fox Complex, $1.6 million from the El Gallo mine, and $124.8 million from the San José mine on a 49% basis.
During 2023, revenues from gold and silver sales were $83.4 million from the Gold Bar mine, $81.3 million from the Fox Complex, $1.5 million from the El Gallo mine, and $118.8 million from the San José mine on a 49% basis.
Financial Statements and Supplementary Data , Note 2 , Summary of Significant Accounting Policies—Investments and Note 9 , Investment in Minera Santa Cruz S.A. (“MSC”) – San José Mine for additional information regarding the equity method of accounting. 4 Table of Contents Like all metal producers, our operations are affected by fluctuations in metal prices.
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 Table of Contents Like all metal producers, our operations are affected by fluctuations in metal prices. The following table presents the annual high, low, and average daily London P.M.
Metallurgical recovery assumptions for the HLM are 85% gold and 60% silver. 12 Table of Contents ​ The differences in annual mineral resources at the El Gallo mine are attributed to the heap leach operation. Residual leaching continued through 2022.
Metallurgical recovery assumptions for the HLM are 85% gold and 60% silver. ​ 12 Table of Contents The differences in annual mineral resources at the El Gallo mine are attributed to an updated mineral resource estimate produced after a 98 sonic drillhole program during 2023 on the heap leach pad. Residual leaching continued until July 2022.
RISK FACTORS.” ​ Risks Related to Our Financial Condition, Results of Operation and Cash Flows ​ ● Our results of operations, cash flows and the value of our properties are highly dependent on the market prices of gold, silver, and copper and these prices can be volatile, which may cause volatility in the price of our common stock. ● We have incurred substantial losses in recent years and may never be profitable. ● Our current operations require substantial capital investment from outside sources, and we may be unable to raise additional funding on favorable terms to develop additional mining operations. ● Our ongoing reliance on equity funding will result in continued dilution to our existing shareholders. ● Our indebtedness adversely affects our cash flow and may adversely affect our ability to operate our business. ● Any failure to meet our debt obligations could harm our business and financial condition and may require us to sell assets or take other steps to satisfy the debt. ● Restrictive debt covenants contained in our debt agreement could limit our growth and our ability to finance our operations, fund our capital needs, respond to changing conditions, and engage in other business activities that may be in our best interests. ● Increased operating and capital costs could adversely affect our results of operations. ● If we do not hedge our exposure to reductions in gold and silver prices, we may be subject to significant reductions in the price we receive for our products. ● Estimates relating to new development projects and mine plans of existing operations are uncertain and we may incur higher costs and lower economic returns than estimated. ● We are subject to foreign currency risks which may increase our costs and affect our results of operation. ● Our continuing reclamation obligations at Tonkin, Gold Bar, Fox Complex, El Gallo, and other properties could require significant additional expenditures. ● There is no guarantee that we will declare distributions to shareholders. ​ Risks Relating to our Operations as a Mining Company ​ ● Our estimates of proven and probable mineral reserves and resources are based on interpretation and assumptions and may yield less mineral production than is currently estimated or may result in additional impairment charges to our operations. ● We may be unable to replace gold and silver reserves as they become depleted. ● Our acquisitions may not achieve their intended results. ● We own our 49% interest in the San José mine under the terms of an option and joint venture agreement and are therefore unable to control all aspects of the exploration and development of, and production from, this property. ● The development of the Los Azules project presents challenges that may negatively affect, if not completely negate, the feasibility for development of the property. ● We may acquire additional exploration-stage properties on which reserves may never be discovered. ● The nature of mineral exploration and production activities involves a high degree of risk and the possibility of uninsured losses that could adversely and materially affect our operations. ● Our operations are subject to permitting requirements which could require us to delay, suspend or terminate our operations on our mining properties. ● Our operations in Argentina, Mexico and Canada subject us to political and social risks. ● Our operations face substantial regulation of health and safety. ● Reform of the General Mining Law in the United States could adversely affect our results of operations. 16 Table of Contents ● Title to mineral properties can be uncertain, and we may be at risk of loss of ownership of one or more of our properties. ● We cannot ensure that we will have an adequate supply of water to complete desired exploration or development of our mining properties. ● Our ongoing operations and past mining activities are subject to environmental risks, which could expose us to significant liability and delay, suspension or termination of our operations. ● Our industry is highly competitive, attractive mineral lands are scarce, and we may not be able to obtain quality properties. ● We rely on contractors to conduct a significant portion of our operations and construction projects. ● If our employees or contractors engage in a strike, work stoppage or other slowdown, we could experience business disruptions and/or increased costs. ● Our business is sensitive to nature and climate conditions. ● Mining companies are increasingly required to consider and provide benefits to the communities and countries in which they operate in order to maintain operations. ​ Risks Related to Our Common Stock ​ ● A small number of existing shareholders own a significant portion of McEwen Mining common stock, which could limit your ability to influence the outcome of any shareholder vote. ● Our stock price may be volatile, and as a result you could lose all or part of your investment. ● Failure of the Company to maintain compliance with the NYSE listing requirements could result in delisting of our common stock, which in turn could adversely affect our future financial condition and the market for our common stock. ● The future issuances of our common stock will dilute current shareholders and may reduce the market price of our common stock. ​ General Risks ​ ● The Coronavirus pandemic could result in adverse operating results due to workforce reductions, supply and/or demand interruptions and travel restrictions. ● We do not insure against all risks to which we may be subject in our operations. ● Our business is subject to the U.S.
RISK FACTORS.” ​ Risks Related to Our Financial Condition, Results of Operation and Cash Flows ​ ● Our results of operations, cash flows and the value of our properties are highly dependent on the market prices of gold, silver, and copper and these prices can be volatile, which may cause volatility in the price of our common stock. ● We have incurred substantial losses in prior years and may not be consistently profitable in future years. ● Our current operations require substantial capital investment from outside sources, and we may be unable to raise additional funding on favorable terms to develop additional mining operations. ● Our ongoing reliance on equity funding will result in continued dilution to our existing shareholders. ● Our indebtedness adversely affects our cash flow and may adversely affect our ability to operate our business. ● Any failure to meet our debt obligations could harm our business and financial condition and may require us to sell assets or take other steps to satisfy the debt. ● Restrictive debt covenants contained in our debt agreement could limit our growth and our ability to finance our operations, fund our capital needs, respond to changing conditions, and engage in other business activities that may be in our best interests. ● Increased operating and capital costs could adversely affect our results of operations. ● If we do not hedge our exposure to reductions in gold and silver prices, we may be subject to significant reductions in the price we receive for our products. ● Estimates relating to new development projects and mine plans of existing operations are uncertain and we may incur higher costs and lower economic returns than estimated. ● We are subject to foreign currency risks which may increase our costs and affect our results of operation. ● Our continuing reclamation obligations at Tonkin, Gold Bar, Fox Complex, El Gallo, and other properties could require significant additional expenditure. ● There is no guarantee that we will declare distributions to shareholders. ​ Risks Relating to our Operations as a Mining Company ​ ● Our estimates of proven and probable mineral reserves and resources are based on interpretation and assumptions and may yield less mineral production than is currently estimated or may result in additional impairment charges to our operations. ● We may be unable to replace gold and silver reserves as they become depleted. ● Our acquisitions may not achieve their intended results. ● We own our 49.0% interest in the San José mine under the terms of an option and joint venture agreement and are therefore unable to control all aspects of the exploration and development of, and production from, this property. ● We own our 47.7% interest in the Los Azules project under the terms of the shareholder agreement and are therefore unable to control all aspects of the exploration and development of this property.
The degree of assurance, although lower than that for proven reserves, is high enough 5 Table of Contents to assume continuity between points of observation. Proven and probable reserves include gold and silver attributable to our ownership or economic interest. The proven and probable reserve figures presented herein are estimates based on information available at the time of calculation.
Proven and probable reserves include gold and silver attributable to our ownership or economic interest. 5 Table of Contents The proven and probable reserve figures presented herein are estimates based on information available at the time of calculation. No assurance can be given that the indicated levels of recovery of gold or silver will be realized.
Under the terms of our doré purchase agreements, we have the option to sell approximately 90% of the gold and silver contained in doré bars produced at the Gold Bar, Froome and El Gallo mines prior to the completion of refining. On July 27, 2022, we entered into a precious metals purchase agreement with Auramet International LLC (“Auramet”).
Under the terms of the agreement with Auramet, we have an option to sell up to 100% of the gold and silver contained in doré bars produced at the Gold Bar and Froome mines prior to the completion of refining.
The following tables summarize the estimated proven and probable gold and silver reserves attributable to our ownership or economic interest as of December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Reserves at December 31, 2021 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) Gold Bar mine - - - ​ 14,053 0.82 370 ​ 14,053 0.82 370 San José mine 381 5.69 70 ​ 351 5.68 64 ​ 733 5.69 134 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Silver Reserves at December 31, 2021 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) San José mine 381 368 4.5 ​ 351 314 3.5 ​ 733 342 8.1 (1) The reserve estimate for the Gold Bar mine as at December 31, 2021 was prepared by Joseph McNaughton, P.E., Senior Mining Engineers, Partner, Independent Mining Consultants.
The following tables summarize the estimated proven and probable gold and silver reserves attributable to our ownership or economic interest as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Reserves at December 31, 2023 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ Tonnes Gold Gold ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) ​ (kt) (g/t) (koz) Gold Bar mine (1) — — — ​ 4,944 1.0 164 ​ 4,944 1.0 164 San José mine (2) 288 5.1 47 ​ 229 5.7 42 ​ 517 5.4 89 ​ Silver Reserves at December 31, 2023 ​ Proven ​ Probable ​ Proven and Probable ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ Tonnes Silver Silver ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) ​ (kt) (g/t) (Moz) San José mine (2) 288 283 2.6 ​ 229 312 2.3 ​ 517 296 4.9 (1) The reserve estimate for the Gold Bar mine as at December 31, 2023 was prepared by Independent Mining Consultants.
Fix for gold was $1,861.25 per ounce and the London Fix for silver was $20.09 per ounce.
Fix for gold was $2,160.80 per ounce and the London Fix for silver was $24.97 per ounce.
At December 31, 2022, we accrued $41.8 million for reclamation costs relating to currently developed and producing properties. These amounts are included in Asset Retirement Obligation on the Consolidated Balance Sheets. U.S. Environmental Laws We are subject to extensive environmental regulation under the laws of the U.S. and the state of Nevada, where our U.S. operations are conducted.
As at December 31, 2023, we accrued $43.0 million for reclamation costs relating to currently developed and producing properties. These amounts are included in reclamation and remediation liabilities on I tem 8 . Financial Statements and Supplementary Data , Consolidated Balance Sheets. U.S.
Changes in mineral resources are due to mining depletion during 2022.
Changes in mineral resources are due to mining depletion during 2023 and an updated block model at GBS based on drilling results.
Under this agreement, we have the option to sell the gold on a Spot Basis, on a Forward Basis and on a Supplier Advance basis. During the year ended December 31, 2022, in respect of our 100% owned mines, 52% of our sales were made to Asahi, and 46% of our sales were made to Auramet.
During the year ended December 31, 2023, in respect of our 100% owned mines, 14% of our sales were made to Asahi, and 84% of our sales were made to Auramet, with the remaining 2% made to other customers.
Production from the San José mine consisted of 55% doré and 45% concentrate. ​ During 2022, we reported the following consolidated production attributable to us: ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Silver Gold equivalent Consolidated Production ​ ounces ​ ounces ​ ounces (1) Fox Complex 36,652 — 36,652 Gold Bar mine ​ 26,611 ​ 684 ​ 26,619 El Gallo mine ​ 844 ​ 616 ​ 851 San José mine (49% attributable basis) 38,613 2,593,304 69,129 Total Production ​ 102,720 ​ 2,594,604 ​ 133,252 (1) Calculated using an average silver to gold ratio of 84 : 1.
Production from the San José mine consisted of 38% doré and 62% concentrate. ​ During 2023, we reported the following gold equivalent ounce production attributable to us: ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold Silver Gold equivalent Production ​ ounces ​ ounces ​ ounces (1) Gold Bar Mine ​ 43,669 ​ 756 ​ 43,678 Fox Complex 44,373 5,590 44,439 El Gallo Mine ​ 787 ​ 877 ​ 797 San José mine (on 49% basis) 39,683 2,166,833 65,673 Total Production ​ 128,512 ​ 2,174,056 ​ 154,587 (1) Calculated using an average silver to gold ratio of 83 : 1.
Removed
The following table presents the annual high, low and average daily London P.M.
Added
Mining costs of $1.95/t, processing and G&A costs of $26.15/t milled were used.
Removed
No assurance can be given that the indicated levels of recovery of gold or silver will be realized. Reserve estimates may require revision based on actual production.
Added
The economic value of each block was calculated based on the metal content, the price of each metal, processing costs, and other downstream costs associated with having a final saleable product.
Removed
The parameters assumed are a copper price of $2.75/lb, operating costs of $1.70/t mining, $5.00/t for processing and $1.00/t for G&A, and copper metallurgical recovery of 90%. The mineral resources estimate is reported with a cut-off grade of 0.20% Cu.
Added
This value is stored for each block of the model as Net Smelter Return (“NSR”) and used to generate an open pit with variable cutoff values to cover the material types and recovery methodology ($2.74/t for the Leach material, $5.46/t for Enriched in the mill and $5.43 for Primary in the mill).
Added
A copper price of $4.00/lb was used with recoveries of 95% for the leach method. With the potential for froth flotation as a recovery method the NSR values were calculated for both high-grade enriched and primary material in a mill with recoveries of 86% and 90%, respectively. Mineral resources are in-situ and are reported at McEwen’s 47.7% attributable interest.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

81 edited+31 added−12 removed156 unchanged
Biggest changeWith respect to the El Gallo mine in Mexico, there has been an ongoing level of violence and crime relating to drug cartels and gangs in Sinaloa State where we operate, and in other regions of Mexico. Our facility at the El Gallo mine was robbed 25 Table of Contents in 2015.
Biggest changeMilei has proposed fast and radical measures to address a large fiscal imbalance, including dramatic cuts to federal spending, full dollarization, closure of the central bank and privatizations. ● On Dec 28, 2023, Argentine President Javier Milei sent a reform bill to Congress proposing far-reaching changes to the country's tax system, electoral law and public debt management. ​ With respect to the El Gallo mine in Mexico, there has been an ongoing level of violence and crime relating to drug cartels and gangs in Sinaloa State where we operate, and in other regions of Mexico.
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.
The value of cash and cash equivalents denominated in foreign currencies also fluctuates with changes in currency exchange rates. The 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.
These businesses are increasingly required to meaningfully engage with impacted stakeholders; understand and avoid or mitigate negative impacts while optimizing economic development and employment opportunities associated with their operations. The expectation is for companies to create shared value for shareholders, employees, governments, local communities and host countries.
These businesses are increasingly required to meaningfully engage with impacted stakeholders, and understand, avoid, or mitigate negative impacts while optimizing economic development and employment opportunities associated with their operations. The expectation is for companies to create shared value for shareholders, employees, governments, local communities and host countries.
As a result, you may be unable to resell your shares at a desired price. Failure of the Company to maintain compliance with the NYSE listing requirements could result in delisting of its common stock, which in turn could adversely affect its future financial condition and the market for its common stock.
As a result, you may be unable to resell your shares at the desired price. Failure of the Company to maintain compliance with the NYSE listing requirements could result in delisting of its common stock, which in turn could adversely affect its future financial condition and the market for its common stock.
Such write- downs may adversely affect our results of operations and financial condition. We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s Accounting Standards Codification Section 360. Under that standard, we review the recoverability of our long-lived assets, such as our mining properties, quarterly or upon a triggering event.
Such write- downs may adversely affect the results of our operations and financial condition. We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s Accounting Standards Codification Section 360. Under that standard, we review the recoverability of our long-lived assets, such as our mining properties, quarterly or upon a triggering event.
A cyber incident involving our business partners’ information systems and related infrastructure could disrupt our business plans and negatively impact our operations. Although to date we have not experienced any significant cyber-attacks, there can be no assurance that we will not be the target of such attacks in the future.
A cyber incident involving our business partners’ information systems and related infrastructure could disrupt our business plans and negatively impact our operations. Although to date we have not experienced any significant cyberattacks, there can be no assurance that we will not be the target of such attacks in the future.
We may be unable to obtain these permits in a timely manner, on reasonable terms or on terms that provide us sufficient resources to develop our properties in any way. Even if we are able to obtain such permits, the time required by the permitting process can be significant.
We may be unable to obtain these permits in a timely manner, on reasonable terms or on terms that provide us with sufficient resources to develop our properties in any way. Even if we are able to obtain such permits, the time required by the permitting process can be significant.
If we determine that certain of our estimated reserves or resources have become uneconomic, we may be forced to reduce our estimates. Actual production may be significantly less than we expect and such reductions may result in impairment charges such as we experienced in 2020.
If we determine that certain of our estimated reserves or resources have become uneconomic, we may be forced to reduce our estimates. Actual production may be significantly less than we expect, and such reductions may result in impairment charges such as those we experienced in 2020.
Our current exploration efforts, and future development and mining operations are subject to all of the operating hazards and risks normally incident to exploring for and developing mineral properties, such as, but not limited to: ● economically insufficient mineralized material; ● fluctuations in production costs that may render mining uneconomical; ● availability of labor, contractors, engineers, power, transportation and infrastructure; ● labor disputes; ● potential delays related to social, public health, and community issues; ● negotiations with aboriginal groups or local populations affecting our efforts to explore, develop or produce gold and silver deposits; ● unanticipated variations in grade and other geological problems; ● environmental hazards; ● water conditions; ● difficult surface or underground conditions; ● metallurgical and other processing problems; ● mechanical and equipment performance problems; ● industrial accidents, personal injury, fire, flooding, cave-ins, landslides and other natural disasters; and ● decrease in reserves or resources due to a lower price of silver, gold or copper.
Our current exploration efforts, and future development and mining operations are subject to all of the operating hazards and risks normally incident to exploring for and developing mineral properties, such as, but not limited to: ● economically insufficient mineralized material; ● fluctuations in production costs that may render mining uneconomical; ● availability of labor, contractors, engineers, power, transportation and infrastructure; ● labor disputes; ● potential delays related to social, public health, and community issues; ● negotiations with aboriginal groups or local populations affecting our efforts to explore, develop or produce 24 Table of Contents gold and silver deposits; ● unanticipated variations in grade and other geological problems; ● environmental hazards; ● water conditions; ● difficult surface or underground conditions; ● metallurgical and other processing problems; ● mechanical and equipment performance problems; ● industrial accidents, personal injury, fire, flooding, cave-ins, landslides, and other natural disasters; and ● decrease in reserves or resources due to a lower price of silver, gold, or copper.
Such review involves estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment, measured by comparing an asset’s carrying value to its fair value, must be recognized when the carrying value of the asset exceeds these cash flows.
Such a review involves estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment, measured by comparing an asset’s carrying value to its fair value, must be recognized when the carrying value of the asset exceeds these cash flows.
Any of these developments could require us to curtail or terminate operations at our mines, incur significant costs in renegotiating contracts and meeting newly-imposed environmental or other standards, pay greater royalties or higher prices 32 Table of Contents for labor or services and recognize higher taxes, or experience significant delays or obstacles in the recovery of consumption taxes or income tax refunds owed, which could materially and adversely affect our financial condition, results of operations and cash flows.
Any of these developments could require us to curtail or terminate operations at our mines, incur significant costs in renegotiating contracts and meeting newly-imposed environmental or other standards, pay greater royalties or higher prices 33 Table of Contents for labor or services and recognize higher taxes, or experience significant delays or obstacles in the recovery of consumption taxes or income tax refunds owed, which could materially and adversely affect our financial condition, results of operations and cash flows.
This report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward looking statements that may be affected by several risk factors, including those set forth below.
This report, including the Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements that may be affected by several risk factors, including those set forth below.
Such acquisitions are based on an analysis of a variety of factors including historical operating results, estimates and assumptions on the extent of ore reserves, the timing of production from such reserves, cash and other operating costs.
Such acquisitions are based on an analysis of a variety of factors including historical operating results, estimates and assumptions on the extent of ore reserves, the timing of production from such reserves, available cash, and other operating costs.
McEwen will be able to significantly influence the outcome of shareholder votes for the foreseeable future, including votes concerning the election of directors, amendments to our Articles of Incorporation or proposed mergers, acquisitions or other significant corporate transactions. 29 Table of Contents Our stock price may be volatile, and as a result you could lose all or part of your investment.
McEwen will be able to significantly influence the outcome of shareholder votes for the foreseeable future, including votes concerning the election of directors, amendments to our Articles of Incorporation or proposed mergers, acquisitions or other significant corporate transactions. ​ ​ ​ 30 Table of Contents Our stock price may be volatile, and as a result you could lose all or part of your investment.
There can be no assurance that our internal control 31 Table of Contents policies and procedures will always protect us from recklessness, fraudulent behavior, dishonesty or other inappropriate acts committed by our affiliates, employees or agents. As such, our corporate policies and processes may not prevent all potential breaches of law or other governance practices.
There can be no assurance that our internal control 32 Table of Contents policies and procedures will always protect us from recklessness, fraudulent behavior, dishonesty, or other inappropriate acts committed by our affiliates, employees or agents. As such, our corporate policies and processes may not prevent all potential breaches of law or other governance practices.
In the future, our ability to become profitable will depend on the profitability of the Gold Bar mine, the Fox Complex, including the Froome mine and Stock deposits, and the San José mine, our ability to generate revenue sufficient to cover our costs and expenses, and our ability to advance, sell or otherwise monetize our other properties and our interest in the Los Azules copper project.
In the future, our ability to remain profitable will depend on the profitability of the Gold Bar mine, the Fox Complex, including the Froome mine and Stock deposits, and the San José mine, our ability to generate revenue sufficient to cover our costs and expenses, and our ability to advance, sell or otherwise monetize our other properties and our interest in the Los Azules copper project.
There is a risk that we will be unable to fund any additional bonding requirements 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, and further, that the regulatory authorities may increase reclamation and bonding requirements to such 21 Table of Contents a degree that it would not be commercially reasonable to continue exploration activities, which may adversely affect our results of operations, financial performance and cash flows.
There is a risk that we will be unable to fund any additional bonding requirements 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, and further, that the regulatory authorities may increase reclamation and bonding requirements to such a degree that it would not be commercially reasonable to continue exploration activities, which may adversely affect our results of operations, financial performance and cash flows.
Historically, the market price of gold and silver has fluctuated significantly and is affected by numerous factors beyond our control.
Historically, the market price of gold, silver, and copper has fluctuated significantly and is affected by numerous factors beyond our control.
We may not be successful in obtaining the required financing to advance our projects or for other purposes, on terms that are favorable to us or at all, in which case, our ability to replace reserves and continue operating would be adversely affected.
We may not be successful in obtaining the required financing to advance our projects or for other purposes, on terms that are favorable to us or at all, in which case, our ability to replace depleted mineral reserves and continue operating would be adversely affected.
A disagreement between joint venture partners on strategic decisions or how to conduct business efficiently, the inability of joint venture partners to meet their obligations to the joint venture or third parties, or litigation arising between joint venture partners regarding joint venture matters could have a material adverse effect on the viability of our interests held through the joint venture.
A disagreement between joint venture partners or corporation shareholders on strategic decisions or how to conduct business efficiently, the inability of joint venture partners or corporation shareholders to meet their obligations to the joint venture or corporation or third parties, or litigation arising between joint venture partners or corporation shareholders regarding joint venture or corporation matters could have a material adverse effect on the viability of our interests held through the joint venture or corporation.
ITEM 1A. RISK FACTOR S Our operations and financial condition are subject to significant risks, including those described below. You should carefully consider these risks. If any of these risks actually occurs, our business, financial condition, and/or results of operation could be adversely affected.
ITEM 1A. RISK FACTOR S Our operations and financial condition are subject to significant risks, including those described below. You should carefully consider these risks. If any of these risks actually occur, our business, financial condition, and/or results of operation could be adversely affected.
As of December 31, 2022, a number of our employees were represented by different trade unions and work councils which subject us to employment arrangements very similar to collective bargaining agreements. Further, most of our employees are based in foreign locations.
As of December 31, 2023, a number of our employees were represented by different trade unions and work councils which subject us to employment arrangements very similar to collective bargaining agreements. Further, most of our employees are based in foreign locations.
Access to refiners and smelters on economical terms is critical to our ability to sell our products to buyers and generate revenues. We have existing agreements with refiners and smelters, some of which operate their refining or smelting facilities outside the United States.
Access to refiners and smelters on economic terms is critical to our ability to sell our products to buyers and generate revenues. We have existing agreements with refiners and smelters, some of which operate their refining or smelting facilities outside the United States.
However, the actual project profitability or economic feasibility may differ from such estimates as a result of any of the following factors, among others: ● Changes in metals prices; ● Changes in tonnage, grades and metallurgical characteristics of mineralized material to be mined and processed; ● Changes in input commodity and labor costs; 20 Table of Contents ● The quality of the data on which engineering assumptions were made; ● Adverse geotechnical conditions; ● Availability of an adequate and skilled labor force; ● Availability, supply and cost of utilities such as water and power; ● Fluctuations in inflation and currency exchange rates; or ● Changes in tax laws, the laws and/or regulations around royalties and other taxes due to the regional and national governments and royalty agreements.
However, the actual project profitability or economic feasibility may differ from such estimates as a result of any of the following factors, among others: ● Changes in metal prices; ● Changes in tonnage, grades and metallurgical characteristics of mineralized material to be mined and processed; ● Changes in input commodity and labor costs; ● The quality of the data on which engineering assumptions were made; ● Adverse geotechnical conditions; ● Availability of an adequate and skilled labor force; ● Availability, supply and cost of utilities such as water and power; ● Fluctuations in inflation and currency exchange rates; or ● Changes in tax laws, the laws and/or regulations around royalties and other taxes due to the regional and national governments and royalty agreements.
We conduct operations in a number of foreign countries and are exposed to legal, political and social risks associated with those operations. A significant portion of our revenue in 2022 was generated by operations outside the United States.
We conduct operations in a number of foreign countries and are exposed to legal, political and social risks associated with those operations. A significant portion of our revenue in 2023 was generated by operations outside the United States.
We continue to evaluate capital and development expenditure requirements as well as other options to monetize certain assets in the Company’s portfolio including Los Azules, Grey Fox, Stock West and the Fenix Project. If we make a positive decision to develop one or more of these initiatives, the expenditures incurred may significantly exceed our working capital.
We continue to evaluate capital and development expenditure requirements as well as other options to monetize certain assets in the Company’s portfolio including Los Azules, Grey Fox, Stock West and the Fenix Project. If we make a positive decision to develop one or more of these initiatives, the expenditure required may significantly exceed our working capital.
We have also entered into indemnification agreements with our executive officers and directors which require that we indemnify them against certain liabilities incurred by them in their capacity as such. The exculpation provisions may have the effect of preventing shareholders from recovering damages against our directors caused by their negligence, poor judgment or other 33 Table of Contents circumstances.
We have also entered into indemnification agreements with our executive officers and directors which require that we indemnify them against certain liabilities incurred by them in their capacity as such. The exculpation provisions may have the effect of preventing shareholders from recovering damages against our directors caused by their negligence, poor judgment, or other circumstances.
Our operations face substantial regulation of health and safety. Our operations are subject to extensive and complex laws and regulations governing worker health and safety across our projects and our failure to comply with applicable legal requirements can result in substantial penalties.
Our operations face substantial regulation of health and safety. Our operations are subject to extensive and complex laws and regulations governing workers’ health and safety across our projects and our failure to comply with applicable legal requirements can result in substantial penalties.
Any such actions would adversely affect our results of operations and financial condition. We may record other types of charges in the future if we sell a property or asset for a price less than its carrying value or have to increase reclamation liabilities in connection with the closure and reclamation of a property.
Any such actions would adversely affect the results of our operations and financial condition. 35 Table of Contents We may record other types of charges in the future if we sell a property or asset for a price less than its carrying value or have to increase reclamation liabilities in connection with the closure and reclamation of a property.
We cannot ensure that alternative refiners or smelters would be available or offer comparable terms if the need for them were to arise or that it would not experience delays or disruptions in sales that would materially and adversely affect results of operations. 34 Table of Contents ITEM 1B. UNRESOLVED STAFF COMMENT S None. ​
We cannot ensure that alternative refiners or smelters would be available or offer comparable terms if the need for them were to arise or that it would not experience delays or disruptions in sales that would materially and adversely affect results of operations. ​ ITEM 1B. UNRESOLVED STAFF COMMENT S ​ [NONE] ​
Our business is dependent upon our workforce being able to safely perform their jobs, including the potential for physical injuries or illness. If we experience periods where our employees are unable to perform their jobs for any reason, including as a result of illness (such as COVID-19), our operations could be adversely affected.
Our business is dependent upon our workforce being able to safely perform their jobs, including the potential for physical injuries or illness. If we experience periods where our employees are unable to perform their jobs for any reason, including as a result of illness, our operations could be adversely affected.
We cannot ensure that these estimates will be accurate, or this mineralization can be mined or processed profitably. Any material changes in mineral estimates and grades of mineralization may affect the economic viability of placing a property into production and such property’s return on capital.
We cannot ensure that these estimates will be accurate, or this mineralization can be mined or processed profitably. ​ 22 Table of Contents Any material changes in mineral estimates and grades of mineralization may affect the economic viability of placing a property into production and such property’s return on capital.
With respect to Los Azules and our affiliated company, Minera Santa Cruz S.A, which owns the San José mine, there are risks relating to an uncertain or unpredictable political and economic environment in Argentina, illustrated by the following: ● Argentina defaulted on foreign debt repayments and on the repayment on a number of official loans to multinational organizations in 2002 and 2003, and defaulted again on its bonds in 2014. ● In 2012, Argentina’s President announced the nationalization of the majority stake of Yacimientos Petrolíferos Fiscales (“YPF”), Argentina’s largest oil company. ● In December 2017, Argentina enacted comprehensive tax reform (Law No. 27,430 (the “Law”)).
With respect to our interests in McEwen Copper Inc., which owns the Los Azules copper project, and Minera Santa Cruz S.A, which owns the San José mine, there are risks relating to an uncertain or unpredictable political and economic environment in Argentina, illustrated by the following: ● Argentina defaulted on foreign debt repayments and on the repayment on a number of official loans to multinational organizations in 2002 and 2003 and defaulted again on its bonds in 2014. ● In 2012, Argentina’s President announced the nationalization of the majority stake of Yacimientos Petrolíferos Fiscales (“YPF”), Argentina’s largest oil company. ● In December 2017, Argentina enacted comprehensive tax reform (Law No. 27,430 (the “Law”)).
In December 2009, the United States Environmental Protection Agency (“EPA”) issued an endangerment finding under the U.S. Clean Air Act that current and projected concentrations of certain mixed greenhouse gases, including carbon dioxide, in the atmosphere threaten the public health and welfare.
In December 2009, the United States Environmental Protection Agency (“EPA”) 29 Table of Contents issued an endangerment finding under the U.S. Clean Air Act that current and projected concentrations of certain mixed greenhouse gases, including carbon dioxide, in the atmosphere threaten the public health and welfare.
A portion of our operations and construction projects are currently conducted in whole or in part by contractors, including our operations at the Gold Bar mine, Fox Complex and Los Azules.
A portion of our operations and construction projects are currently conducted in whole or in part by contractors, including our operations at the Gold Bar mine and Fox Complex.
Hedging transactions also involve the risk that the counterparty may be unable to satisfy its obligations. Estimates relating to new development projects and mine plans of existing operations are uncertain and we may incur higher costs and lower economic returns than estimated.
Hedging transactions also involve the risk that the counterparty may be unable to satisfy its obligations. 20 Table of Contents Estimates relating to new development projects and mine plans of existing operations are uncertain and we may incur higher costs and lower economic returns than estimated.
Many competitors not only explore for and mine precious metals, but conduct refining and marketing operations on a world-wide basis. Such competition may result in our Company being unable not only to acquire desired properties, but to recruit or retain qualified employees or to acquire the capital necessary to fund our operation and advance our properties.
Many competitors not only explore for and mine precious metals but conduct refining and marketing operations on a world-wide basis. Such competition may result in our Company being unable not only to acquire desired properties, but to recruit or retain qualified employees or to acquire the capital necessary to fund our operation and advance 28 Table of Contents our properties.
Los Azules is located in a remote location, previously accessibly only by 75 miles of dirt road with eight river crossings and two mountain passes above 13,450 feet. An additional access road at lower altitude was completed in May 2022, which has one mountain pass above 11,000 feet.
Los Azules is located in a remote location, previously accessible only by 75 miles of dirt road with fourteen river crossings and two mountain passes above 13,450 feet. An additional access road at lower altitude was completed in May 2022, which has one mountain pass above 11,000 feet.
Starting in January 2022, these brackets will be annually adjusted to account for inflation, as per the consumer price index published by relevant governmental agency. ● Under prior law, distribution of earnings attributable to fiscal year 2021 were subject to withholding tax at a 13% rate. The rate was tied to the prior income tax rate of 25%.
Starting in January 2022, these brackets will be annually adjusted to account for inflation, as per the consumer price index published by relevant governmental agency. ● Under prior law, the distribution of earnings attributable to fiscal year 2021 was subject to withholding tax at a 13% rate.
We may be at a competitive disadvantage in acquiring mineral properties, since we compete with 27 Table of Contents these individuals and companies, many of which have greater financial resources and larger technical staffs than we do.
We may be at a competitive disadvantage in acquiring mineral properties, since we compete with these individuals and companies, many of which have greater financial resources and larger technical staffs than we do.
If the long-term price of copper decreased significantly below the current price or capital cost estimates increased significantly, Los Azules may not be feasible for development, and we may have to write off the remaining carrying value of the asset. Furthermore, the project’s economic feasibility has not yet been demonstrated through a full feasibility study.
If the long-term price of copper decreased significantly below the current price or capital cost estimates increased significantly, Los Azules may not be feasible for development, and we may have to write off the remaining carrying value of our investment in McEwen Copper. Furthermore, the project’s economic feasibility has not yet been demonstrated through a full feasibility study.
Although it is impossible to predict at this time what royalties may be imposed in the future, the imposition of such royalties could adversely affect the potential for development of such mining claims, and the economics of existing operating mines on federal unpatented mining claims.
Although it is impossible to predict at this time what royalties may be imposed in the future, the imposition of such royalties could adversely affect the potential for development of such mining claims, and the economics of existing operating mines on federal unpatented mining claims. Passage of such legislation could adversely affect our business.
The estimated impact to MSC is a tax of approximately 7.5% of revenue. ● In September 2019, Argentine authorities implemented new foreign exchange regulations that impact the results of MSC.
The estimated impact to MSC is a tax of approximately 7.5% of revenue. 25 Table of Contents ● In September 2019, Argentine authorities implemented new foreign exchange regulations that impact the results of MSC.
We believe we currently have contractual arrangements with a sufficient number of refiners and smelters so that the loss of any one refiner or smelter would not significantly or materially impact our operations or our ability to generate revenues.
We believe we currently have contractual arrangements with a sufficient number of refiners and smelters such that the loss of any one refiner or smelter would not significantly or materially affect our operations or our ability to generate revenues.
We have not posted a bond in Mexico as none is required by the current legislation; however, we have recorded a liability of $10.5 million based on the estimated amount of our reclamation obligations in that jurisdiction.
We have not posted a bond in Mexico as none is required by the current legislation; however, we have recorded a liability of $8.0 million based on the estimated amount of our reclamation obligations in that jurisdiction.
Such expectations tend to be particularly focused on companies whose activities are perceived to have high socio-economic and environmental impacts. In response, we have developed and continues to evolve a system of ESG management that includes standards, guidance, assurance, participation in international organizations focused on improved performance and outcomes for host communities and the environment.
Such expectations tend to be particularly focused on companies whose activities are perceived to have high socio-economic and environmental impacts. In response, we have developed and continue to evolve a system of Environmental, Social and Governance (“ESG”) management that includes standards, guidance, assurance, participation in international organizations focused on improved performance and outcomes for host communities and the environment.
Exploration is highly speculative in nature, involves many risks and uncertainties and is frequently unsuccessful in discovering significant mineralization. Accordingly, our current or future exploration programs may not result in new mineral producing 22 Table of Contents operations.
Exploration is highly speculative in nature, involves many risks and uncertainties and is frequently unsuccessful in discovering significant mineralization. Accordingly, our current or future exploration programs may not result in new mineral producing operations.
An asset impairment charge may also result from the occurrence of unexpected adverse events that impact our estimates of expected cash flows generated from our producing properties or the market value of our non-producing properties, including a material diminution in the price of gold and/or silver.
An asset impairment charge may also result from the occurrence of unexpected adverse events, including a material diminution in the price of gold, silver, and/or copper, that impacts our estimates of expected cash flows generated from our producing properties or the market value of our non-producing properties and investments, including McEwen Copper.
Our operations and properties in Canada expose us to additional political risks. Our properties in Canada may be of particular interest or sensitivity to one or more interest groups, including aboriginal groups (which are generally referred to as "First Nations" and “Metis” groups). We have mineral projects in Ontario that are in areas with an aboriginal presence.
Our properties in Canada may be of particular interest or sensitivity to one or more interest groups, including aboriginal groups (which are generally referred to as "First Nations" and “Metis” groups). We have mineral projects in Ontario that are in areas with an aboriginal presence.
Our credit facility contains covenants that restrict or limit our ability to: ● Pay dividends or distributions on our capital stock; ● Borrow additional funds; ● Repurchase, redeem, or retire our capital stock; 19 Table of Contents ● Make certain loans and investments; ● Sell assets; ● Enter into certain transactions with affiliates; ● Create or assume certain liens on our assets; ● Make certain acquisitions; or ● Engage in certain other corporate activities.
Our credit facility contains covenants that restrict or limit our ability to: ● Borrow additional funds; ● Repurchase, redeem, or retire our capital stock; ● Make certain loans and investments; ● Sell assets; ● Enter into certain transactions with affiliates; ● Create or assume certain liens on our assets; ● Make certain acquisitions; or ● Engage in certain other corporate activities.
Even if we are successful in achieving one or more of our strategic initiatives at the Los Azules project, its development presents challenges that may negatively affect, if not completely negate, the feasibility for development of the property.
Even if McEwen Copper is successful in achieving one or more of its strategic initiatives at the Los Azules project, its development presents challenges that may negatively affect, if not completely negate, the feasibility for development of the property.
On December 17, 2019, the US State Department issued a Level 2 (“Increased caution”) warning with respect to five Mexican states, including Sinaloa State, due to violent crime. On September 8, 2020, the US State Department issued a Level 3 (“Reconsider travel”) warning with respect to five Mexican states, including Sinaloa State, due to violent crime and COVID-19.
On September 8, 2020, the US State Department issued a Level 3 (“Reconsider travel”) warning with respect to five Mexican states, including Sinaloa State, due to violent crime and COVID-19.
Risks Relating to Our Common Stock A small number of existing shareholders own a significant portion of McEwen Mining common stock, which could limit your ability to influence the outcome of any shareholder vote. As of March 13, 2023, Mr. McEwen beneficially owned approximately 17% of the 47.4 million shares of McEwen Mining common stock outstanding.
Risks Relating to Our Common Stock A small number of existing shareholders own a significant portion of McEwen Mining common stock, which could limit your ability to influence the outcome of any shareholder vote. As of March 15, 2024, Mr. McEwen beneficially owned approximately 16% of the 49.4 million shares of McEwen Mining common stock outstanding.
We have acquired in the past and may acquire in the future additional exploration-stage properties. There can be no assurance that we have completed or will be able to complete the acquisition of such properties at reasonable prices or on favorable terms and that reserves will be identified on any properties that we acquire.
There can be no assurance that we have completed or will be able to complete the acquisition of such properties at reasonable prices or on favorable terms and that reserves will be identified on any properties that we acquire.
As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any security vulnerabilities.
As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any security vulnerabilities. Environmental, social and governance matters may impact our business and reputation.
Since all day-to-day decisions are made by the majority owner of the venture, we are unable to participate in those decisions, including whether and when to pay dividends to the venture partners.
Since all day-to-day decisions are made by the majority owner of each of the San José mine and the Los Azules copper project, we are unable to participate in those decisions, including whether and when to pay dividends to the venture partners.
We have assumed substantially all of the liabilities associated with acquired properties, and such liabilities could be significant. We own our 49% interest in the San José mine under the terms of an option and joint venture agreement (“OJVA”), and therefore we are unable to control all aspects of the exploration and development of, and production from, this property.
We have assumed substantially all of the liabilities associated with acquired properties, and such liabilities could be significant. ​ ​ ​ 23 Table of Contents We own our 49.0% interest in the San José mine under the terms of an option and joint venture agreement (“OJVA”), and our 47.7% interest in the Los Azules copper project under the terms of a shareholder agreement, and therefore we are unable to control all aspects of the exploration and development of, and production from, these properties.
Passage of such legislation could adversely affect our business. 26 Table of Contents Title to mineral properties can be uncertain, and we may be at risk of loss of ownership of one or more of our properties. Our ability to explore and operate our properties depends on the validity of our title to those properties.
Title to mineral properties can be uncertain, and we may be at risk of loss of ownership of one or more of our properties. Our ability to explore and operate our properties depends on the validity of our title to those properties.
Similarly, under Argentine Law, failure to comply with applicable conditions may result in the termination of the concession. Uncertainties inherent in mineral properties relate to such things as the sufficiency of mineral discovery, proper posting and marking of boundaries, assessment work and possible conflicts with other claims not determinable from public record.
Uncertainties inherent in mineral properties relate to such things as the sufficiency of mineral discovery, proper posting and marking of boundaries, assessment work and possible conflicts with other claims not determinable from public record.
We may discover title defects, adverse environmental or other conditions relating to the properties acquired of which we are currently unaware. Environmental, title, and other problems could reduce the value of the properties to us, and depending on the circumstances, we could have limited or no recourse to the sellers with respect to those problems.
Environmental, title, and other problems could reduce the value of the properties to us, and depending on the circumstances, we could have limited or no recourse to the sellers with respect to those problems.
Investors should also be aware that resources may not be converted into reserves. Please also see, CAUTIONARY NOTE TO UNITED STATES INVESTORS-INFORMATION CONCERNING PREPARATION OF RESOURCE AND RESERVE ESTIMATES. We may be unable to replace gold and silver reserves as they become depleted.
Investors should also be aware that resources may not be converted into reserves. Please also see, CAUTIONARY NOTE REGARDING DISCLOSURE OF MINERAL PROPERTIES. We may be unable to replace gold and silver reserves as they become depleted.
Regulations relating to emission levels (such as carbon taxes) and energy efficiency are becoming more stringent. If the current regulatory trend continues, this may result in increased costs at some or all of our project locations. In addition, the physical risks of climate change may also have an adverse effect on our operations and properties.
If the current regulatory trend continues, this may result in increased costs at some or all of our project locations. In addition, the physical risks of climate change may also have an adverse effect on our operations and properties.
The Preliminary Economic Assessment (“PEA”) is preliminary in nature, includes S-K 1300 mineral resources that are considered too speculative geologically to have economic considerations applied to them that would allow them to be categorized as mineral reserves either under S-K 1300 or NI 43-101, and there is no certainty that the PEA will be realized. 23 Table of Contents We may acquire additional exploration-stage properties on which reserves may never be discovered.
The Initial Assessment (“IA”) is preliminary in nature, includes S-K 1300 mineral resources that are considered too speculative geologically to have economic considerations applied to them that would allow them to be categorized as mineral reserves either under S-K 1300 or NI 43-101, and there is no certainty that the IA will be realized.
Similarly, Canadian mineral properties consist of patented and unpatented claims which each have their respective risks and uncertainties. Further, there may be title defects or additional rights that are not recorded on the title. Our concessions in Mexico are subject to continuing government regulation and failure to adhere to such regulations will result in termination of the concession.
Similarly, Canadian mineral properties consist of patented and unpatented claims which each have their respective risks and uncertainties. Further, there may be title defects or additional rights that are not recorded on the title.
We may not be successful in negotiating new collective bargaining agreements or other employment arrangements when the current ones expire. Furthermore, future labor negotiations could result in significant increases in our labor costs.
We may not be successful in negotiating new collective bargaining agreements or other employment arrangements when the current ones expire. Furthermore, future labor negotiations could result in significant increases in our labor costs. The occurrence of any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations.
Our interest in the San José mine is subject to the risks normally associated with the conduct of joint ventures.
Our interests in the San José mine and Los Azules copper project are subject to the risks normally associated with the conduct of joint ventures and corporations.
If we cannot obtain or maintain the necessary permits, or if there is a delay in receiving these permits, our timetable and business plan for exploration of our properties will be adversely affected, which may in turn adversely affect our results of operations, financial condition, cash flows and market price of our securities. 24 Table of Contents Due to increased activity levels of non-governmental, aboriginal and local groups targeting the mining industry, the potential for the government or process instituted by non-governmental, aboriginal and local groups, to delay the issuance of permits or impose new requirements or conditions upon mining operations may be increased.
If we cannot obtain or maintain the necessary permits, or if there is a delay in receiving these permits, our timetable and business plan for exploration of our properties will be adversely affected, which may in turn adversely affect our results of operations, financial condition, cash flows and market price of our securities.
As of December 31, 2022, we have accrued $41.8 million in estimated reclamation costs for our properties, including $39.4 million covered by surety bonds for projects in the United States and Canada.
In Canada and the United States, we are required to post bonds to ensure performance of our reclamation obligations. As of December 31, 2023, we have accrued $43.0 million in estimated reclamation costs for our properties, including $42.5 million covered by surety bonds for projects in the United States and Canada.
Even if we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. 18 Table of Contents Our business requires substantial capital investment from outside sources, and we may be unable to raise additional funding on favorable terms to develop additional mining operations.
We may suffer significant additional losses in the future and may not be profitable again. 18 Table of Contents Our business requires substantial capital investment from outside sources, and we may be unable to raise additional funding on favorable terms to develop additional mining operations.
Restrictive debt covenants could limit our growth and our ability to finance our operations, fund our capital needs, respond to changing conditions, and engage in other business activities that may be in our best interests.
In addition, any failure to make scheduled payments of interest and principal on our outstanding indebtedness could result in the immediate acceleration of the debt and foreclosure of our assets. ​ ​ ​ ​ ​ ​ ​ 19 Table of Contents Restrictive debt covenants could limit our growth and our ability to finance our operations, fund our capital needs, respond to changing conditions, and engage in other business activities that may be in our best interests.
Our indebtedness adversely affects our cash flow and may adversely affect our ability to operate our business. As of December 31, 2022, we had an outstanding long term, secured debt with a principal amount of $50.0 million and an outstanding long term, unsecured subordinated promissory note with a principal amount of $15.0 million.
Our indebtedness adversely affects our cash flow and may adversely affect our ability to operate our business. As of December 31, 2023, we had an outstanding credit facility with a principal amount of $40.0 million. Repayment of the debt is secured by a lien on certain of our and our subsidiaries’ assets.
The promissory note is payable in full on or before September 25, 2025, and interest on the promissory note is payable monthly at a rate of 8% per annum. We cannot be certain that our cash flow from operations will be sufficient to allow us to pay the principal and interest on our debt and meet our other obligations.
We cannot be certain that our cash flow from operations will be sufficient to allow us to pay the principal and interest on our debt and meet our other obligations.
During 2022, the price of gold, as measured by the London PM fix, fluctuated between $1,629 and $2,039 per ounce, while the price of silver fluctuated between $17.77 and $26.18 per ounce. As at March 10, 2023, gold, silver and copper prices were $1,861.25/oz, $20.09/oz, and $3.86/lb, respectively.
During 2023, the price of gold, as measured by the London P.M. fix, fluctuated between $1,811 and $2,078 per ounce, while the price of silver fluctuated between $20.09 and $26.03 per ounce. As at March 14, 2024, gold, silver and copper prices were $2,160.80/oz, $24.97/oz, and $4.03/lb, respectively.
Repayment of the debt is secured by a lien on certain of our and our subsidiaries’ assets. This debt requires us to make monthly principal payments of $2.0 million beginning on August 31, 2023 for 18 months, with a final $12.0 million principal payment on March 31, 2025.
This debt requires us to make monthly principal payments of $1.0 million beginning on January 31, 2025, for 18 months, with a final $21.0 million principal payment on August 31, 2026.
We cannot assure that any of these remedies could, if necessary, be completed on commercially reasonable terms, in a timely manner or at all. In addition, any failure to make scheduled payments of interest and principal on our outstanding indebtedness could result in the immediate acceleration of the debt and foreclosure of our assets.
We cannot assure that any of these remedies could, if necessary, be completed on commercially reasonable terms, in a timely manner or at all.
On January 5, 2023, the US State Department reiterated its caution against travel to Sinaloa State due to unrest resulting from the capture of Ovidio Guzmán López, a high-ranking member of the Sinaloa Cartel. These events may disrupt our ability to carry out exploration and mining activities and may affect the safety and security of our employees and contractors.
On January 5, 2023, the US State Department reiterated its caution against travel to Sinaloa State due to unrest resulting from the capture of Ovidio Guzmán López, a high-ranking member of the Sinaloa Cartel. A general update on August 22, 2023, reiterated a do not travel warning to Sinaloa State due to violent crime and kidnapping.
We have not utilized market risk sensitive instruments to manage our exposure to foreign currency exchange rates but may do so in the future. We also hold portions of our cash reserves in Canadian, Mexican and Argentine currency. Our continuing reclamation obligations at Tonkin, Gold Bar, Fox Complex, El Gallo, and other properties could require significant additional expenditures.
We also hold portions of our cash reserves in Canadian, Mexican, and Argentine currency. ​ ​ ​ 21 Table of Contents Our continuing reclamation obligations at Tonkin, Gold Bar, Fox Complex, El Gallo, and other properties could require significant additional expenditure. We are responsible for the reclamation obligations related to disturbances on all our properties.
The occurrence of any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations. 28 Table of Contents Our business is sensitive to nature and climate conditions A number of governments have introduced or are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels.
Our business is sensitive to nature and climate conditions. A number of governments have introduced or are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels. Regulations relating to emission levels (such as carbon taxes) and energy efficiency are becoming more stringent.
The enacted Law 27,630 reduced the withholding tax rate on dividend distributions to non-residents from earnings obtained from the beginning of 2021 to 7%.
Law 27,630, enacted in June 2021, reduced this withholding tax rate on distributions of earnings to 7%. ● On Nov 19, 2023, Argentina elected Javier Milei as its new president.
We have incurred substantial losses in recent years and may never return to profitability. During the three years ended December 31, 2022, 2021, and 2020, we have incurred pre-tax losses on an annual basis of $80.3 million $64.2 million and $153.7 million, respectively. As of December 31, 2022, our accumulated deficit, which includes historic non-cash impairment charges, was $1.3 billion.
We have incurred substantial losses in prior years and may not be consistently profitable in future years. For the year ended December 31, 2023, the Company earned pre-tax income of $67.0 million. During the two years ended December 31, 2022, and 2021, we incurred pre-tax losses of $80.3 million and $64.2 million, respectively.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWithnell and Ralph S.Withnell Not currently under agreement. ​ The following table summarizes our properties (other than the Fox Complex) in Canada in the Province of Ontario: ​ ​ ​ ​ ​ ​ ​ Property name Municipality Type of Interest Acres / Hectares Stage Conditions Ownership Buffalo Ankerite Timmins 11 Patented claims 432 / 175 Exploration NPI agreement with Summit Held by McEwen Mining via Lexam VG Paymaster Timmins 15 Patented claims 1730 / 700 Exploration None 60% JV interest with Newmont (40%) Black Fox North Black River-Matheson 50 Unpatented claims 1608 / 651 Exploration None 100% McEwen Mining 35 Table of Contents The location of our significant production, advanced-stage and exploration properties is shown below: ​ ​ 36 Table of Contents SEGMENT: UNITED STATES The following map depicts the location of our major properties in the United States segment, including the Gold Bar mine and exploration properties which are fully owned by us or subject to joint venture agreements.
Biggest changePaymaster Timmins 15 Patented claims 432/175 Exploration 60% JV interest with Newmont (40%) Black Fox North Black River-Matheson 50 Unpatented claims 1608/651 Exploration 100% McEwen Mining ​ The following table summarizes our properties (other than McEwen Copper properties) in Argentina: ​ ​ ​ ​ ​ ​ ​ Property name Municipality Type of Interest Acres/Hectares Conditions Ownership Cateo Rio Ansilta Calingasta-San Juan Not applicable 6439/2606 None 100% Minandes S.A.
The Stock property, the site of former Stock mine, is located approximately 17 miles from the Black Fox mine. The Stock property includes the Stock mill where mineralized material from the Froome mine is transported to and processed, and the Stock West advanced development project.
The Stock property, the site of the former Stock mine, is located approximately 17 miles west of the Black Fox mine. The Stock property includes the Stock mill, where mineralized material from the Froome mine is transported to and processed, and the Stock West advanced development project.
The mine site is accessed from US Highway 50 by travelling north on Robert’s Creek Road, an unimproved dirt road maintained by the Company. The mine area is approximately 15 miles from U.S. Highway 50. Geology and Mineralization The mine is located in the Battle Mountain-Eureka mineral belt in a large window of lower-plate carbonate rocks surrounded by upper-plate rocks.
The mine site is accessed from US Highway 50 by travelling north on Robert’s Creek Road, an unimproved dirt road maintained by the Company. The mine area is approximately 15 miles from U.S. Highway 50. Geology and Mineralization The mine is located in the Battle Mountain-Eureka-Cortez mineral belt in a large window of lower-plate carbonate rocks surrounded by upper-plate rocks.
We are targeting an average annualized production rate of 40,000 - 45,000 gold equivalent ounces (“GEO”) from Froome over its life of mine. Advanced-Stage Properties Stock West, Canada (100% owned) The Stock West project is located approximately one mile west of the historic Stock mine shaft and 0.6 mile southwest of the Stock mill.
We are targeting an average annualized production rate of 40,000 - 45,000 gold equivalent ounces from Froome over its life of mine. Advanced-Stage Properties Stock West, Canada (100% owned) The Stock West project is located approximately one mile west of the historic Stock mine shaft and 0.6 mile southwest of the Stock mill.
The mine site is currently on care and maintenance, and we continue to advance the reclamation program. We also continue evaluation work with respect to the Tonkin deposit. Other exploration properties We hold other exploration stage properties throughout Nevada which are not considered material at this time.
The mine site is currently on care and maintenance, and we continue to advance the reclamation program. We also continue evaluation work with respect to the Tonkin deposit. Other exploration properties We hold other exploration stage properties throughout Nevada and Colorado which are not considered material at this time.
The lower-plate carbonates consist of (from oldest to youngest) an east-dipping section of Silurian Lone Mountain Dolomite, Devonian McColley Canyon Formation, Devonian Denay Formation, Devonian Devils Gate Limestone and siliceous Horse Canyon. Gold mineralization is hosted primarily in the Bartine Member of the McColley Canyon Formation, which consists of carbonate wackestones and packstones approximately 250 to 380 feet thick.
The lower-plate carbonates consist of (from oldest to youngest) an east-dipping section of Silurian Lone Mountain Dolomite, Devonian McColley Canyon Formation, Devonian Denay Formation, Devonian Devils Gate Limestone, and Devonian Horse Canyon siltstone. Gold mineralization is hosted primarily in the Bartine Member of the McColley Canyon Formation, which consists of carbonate wackestones and packstones approximately 250 to 380 feet thick.
A feasibility study was completed in October 2005 under the direction of MSC and, following construction, commercial production was declared on January 1, 2008. 49 Table of Contents The mine is part of a larger property which covers a total area of approximately 1,004 sq. miles and consists of 141 mining concessions.
A feasibility study was completed in October 2005 under the direction of MSC and, following construction, commercial production was declared on January 1, 2008. 53 Table of Contents The mine is part of a larger property which covers a total area of approximately 1,004 sq. miles and consists of 141 mining concessions.
Minor amounts of mineralization are found in the underlying dolomitic limestone Kobeh Member of the McColley Canyon Formation where it is adjacent to apparent feeder structures. The project is in an area with “Carlin-Type” sediment-hosted gold mineralization characteristics with typical associated alteration (decalcification, silicification).
Minor amounts of mineralization are found in the underlying dolomitic limestone Kobeh Member of the McColley Canyon Formation where it is adjacent to apparent feeder structures. The project is in an area with “Carlin-Type” sediment-hosted gold mineralization characteristics with typical associated alteration (decalcification, argillization, and silicification).
The mineralized material from Froome is hauled approximately 20 miles to the Stock mill, where it is processed. Based on the PEA announced on January 26, 2022 and effective December 31, 2021, the life of mine of the Froome mine is expected to total four years.
The mineralized material from Froome is hauled approximately 20 miles to the Stock mill, where it is processed. Based on the IA announced on January 26, 2022, and effective December 31, 2021, the life of mine of the Froome mine is expected to total four years.
With multiple near-surface targets identified, we expect to continue similar drilling around the Gold Bar mine in 2023. Exploration Properties Tonkin property (100% owned) The Tonkin property represents our second largest holding within the Battle Mountain-Eureka Trend in Eureka County, Nevada with approximately 45 square miles of claims.
With multiple near-surface targets identified, we expect to continue similar drilling around the Gold Bar mine in 2024. ​ Exploration Properties Tonkin property (100% owned) The Tonkin property represents our second largest holding within the Battle Mountain-Eureka-Cortez trend in Eureka County, Nevada with approximately 45 square miles of claims.
The Destor-Porcupine Fault has a total strike length of approximately 124 miles and hosts many of Ontario and Quebec’s prolific gold mines. The Black Fox property includes the Black Fox mine and surrounding properties, including the advanced-stage Grey Fox property and Froome mine, the latter of which declared commercial production during the third quarter of 2021.
The Destor-Porcupine Fault has a total strike length of approximately 124 miles and hosts many of Ontario and Quebec’s prolific gold mines. 43 Table of Contents The Black Fox property includes the Black Fox mine and surrounding properties, including the advanced-stage Grey Fox property and Froome mine, the latter of which declared commercial production during the third quarter of 2021.
The alteration footprint significantly extends to the north and south of the deposit with future drilling planned to expand the current footprint. Facilities and Infrastructure Gold Bar mine construction began in November 2017 with key site facilities and infrastructure completed by the end of 2018. Commercial production was declared on May 23, 2019.
The alteration footprint significantly extends to the north and south of the deposit with future drilling planned to expand the current footprint. 42 Table of Contents Facilities and Infrastructure ​ Gold Bar mine construction began in November 2017 with key site facilities and infrastructure completed by the end of 2018. Commercial production was declared on May 23, 2019.
Grey Fox, Canada (100% owned) The Grey Fox project is located 2.2 miles southeast of Black Fox mine and adjacent to Agnico Eagle’s former Hislop mine. Access is either by paved or well maintained, two-way, dirt roads. The approximate coordinates of Grey Fox are N48°30'20.0” and W80°18'20.0”.
Grey Fox, Canada (100% owned) The Grey Fox project is located 2.2 miles southeast of Black Fox mine and adjacent to Agnico Eagle’s formerly producing Hislop mine. Access is either by paved or well maintained, two-way, dirt roads. The approximate coordinates of Grey Fox are N48°30'20.0” and W80°18'20.0”.
There is an assay lab and several other buildings to support operations and milling, including a hoist house, warehouse and maintenance shop, mine dry building, crusher and conveyor systems and the mill building itself. The site also houses various support structures including storage and generator buildings.
Two buildings support security and administration of the mill. There is an assay lab and several other buildings to support operations and milling, including a hoist house, warehouse, and maintenance shop, mine dry building, crusher and conveyor systems and the mill building itself. The site also houses various support structures including storage and generator buildings.
The mine is 1,087 miles south-southwest of the city of Buenos Aires and 217 miles southwest of the Atlantic port city of Comodoro Rivadavia. The principal access route to the San José property is a paved highway from Comodoro Rivadavia followed by a 20 mile two-lane dirt road to the mine.
The mine is 1,087 miles south-southwest of the city of Buenos Aires and 217 miles southwest of the Atlantic port city of Comodoro Rivadavia. The principal access route to the San José property is a paved highway from Comodoro Rivadavia followed by a 20-mile two-lane dirt road to the mine. Comodoro Rivadavia has regularly scheduled air services to Buenos Aires.
Elder Creek property On October 24, 2022, McEwen Copper signed an agreement whereby Kennecott Exploration Company (“KEX”), a subsidiary of Rio Tinto, for KEX to earn a 60% interest in the Elder Creek property by investing $18 million over up to seven years (the “Expenditure Commitment”).
Elder Creek property On October 24, 2022, McEwen Copper signed an agreement whereby Kennecott Exploration Company (“KEX”), a subsidiary of Rio Tinto, could earn up to a 60% interest in the Elder Creek property by investing $18 million over seven years.
The water supply for the Gold Bar mine and processing 38 Table of Contents facilities comes from production wells located approximately two miles southeast from the site and powered by a diesel generator. The mining of the open pits, carried out by a contractor, progressed during 2022.
The water supply for the Gold Bar mine and processing facilities comes from production wells located approximately two miles southeast from the site and powered by a diesel generator. The mining of the open pits, carried out by a contractor, progressed during 2023.
The laboratory is equipped to process all assay samples from the mine, core, chips and soil. The metallurgical lab is capable of determining cyanide leaching amenability and gold and silver recoveries of mineralized material amenable to cyanide leaching.
The laboratory is equipped to process all assay samples from the mine, core, chips and soil. The metallurgical lab can determine cyanide leaching amenability and gold and silver recoveries of mineralized material amenable to cyanide leaching.
In 1994, Minera Andes acquired lands in the southern portion of the Los Azules area. Over the years, additional exploration was performed by Minera Andes and other companies who owned adjacent properties around Los Azules. We acquired Minera Andes in January 2012.
In 1994, Minera Andes Inc. (“Minera Andes”) acquired lands in the southern portion of the Los Azules area. Over the years, additional exploration was performed by Minera Andes and other companies who owned adjacent properties around Los Azules. McEwen Mining acquired Minera Andes in January 2012.
Comodoro Rivadavia has regularly scheduled air services to Buenos Aires. The nearest town is Perito Moreno, which is approximately 19 miles west of the San José property. Geology and Mineralization The San José property is in the Deseado Massif, which consists of Paleozoic metamorphic basement rocks unconformably overlain by Middle to Upper Jurassic bimodal andesitic and rhyolitic volcanics and volcaniclastics.
The nearest town is Perito Moreno, which is approximately 19 miles west of the San José property. Geology and Mineralization The San José property is in the Deseado Massif, which consists of Paleozoic metamorphic basement rocks unconformably overlain by Middle to Upper Jurassic bimodal andesitic and rhyolitic volcanics and volcaniclastics.
No exploration work was performed at these properties in 2022. ​ SEGMENT: MEXICO The following map depicts the location of our property forming the Mexico segment, of which the El Gallo mine and the advanced-stage Fenix Project are described in the sections below: ​ ​ 43 Table of Contents The following table summarizes the Company’s land position in Mexico as of December 31, 2022: ​ ​ ​ ​ ​ ​ Mexico Mineral Property Interest ​ Number of Claims ​ Square Miles Fenix Project (including the El Gallo mine) 45 ​ 204 Other Mexico properties ​ 1 ​ 2 Total Mexico Properties 46 ​ 206 ​ Mexico Properties El Gallo mine, Mexico (100% owned) For detailed information on the El Gallo mine production statistics and financial results, refer to Item 7.
No exploration work was performed at these properties in 2023. ​ 47 Table of Contents SEGMENT: MEXICO The following map depicts the location of our property forming the Mexico segment, of which the El Gallo mine and the advanced-stage Fenix Project are described in the sections below: ​ ​ The following table summarizes the Company’s land position in Mexico as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ Mexico Mineral Property Interest ​ Claims ​ Square Miles ​ Square Kilometers Fenix Project (including the El Gallo mine) 20 ​ 178 461 Other Mexico properties ​ 25 ​ 26 ​ 67 El Gallo Gold (In Remediation) ​ 1 ​ 2 ​ 5 Total Mexico Properties 46 ​ 206 533 ​ Mexico Properties Fenix Project, Mexico (100% owned) For detailed information on the El Gallo mine production statistics and financial results, refer to Item 7.
A new low altitude access road (max. 11,155 feet ASL) was completed in early 2022, which has only one high mountain pass, and successfully used to extend our drilling season to May 2022. We share part of the new access road with other mining projects, including El Pachón (Glencore) and Altar (Sibanye-Stillwater and Aldebaran Resources).
A second access road, known as the South Road (max. 11,155 feet ASL) was reconditioned in early 2022, has only one high mountain pass, and was successfully used to extend our drilling season beginning in 2022. We share part of the South Road with other mining projects, including El Pachón (Glencore) and Altar (Sibanye-Stillwater and Aldebaran Resources).
Location and Access The project is located at approximately S31 o 13’30” and W70 o 13’50” and abuts the border of Chile and Argentina. The elevation at the site ranges between 11,500 feet to 14,750 feet above sea level (“ASL”).
Location and Access The project is located at approximately S31 o 13’30” and W70 o 13’50” and abuts the border of Chile and Argentina and is currently accessible via a 120 km gravel road known as the Exploration Road. The elevation at the site ranges between 11,500 feet to 14,750 feet above sea level (“ASL”).
Location and Access The Gold Bar mine is located in the Southern Roberts Creek Mountains, in Eureka County, Nevada, approximately 30 miles northwest of the town of Eureka, Nevada, primarily in Township 22 North, Range 50 East (N39°48’16.5”; W116°21’09.65”).
The property was previously mined from 1987 to 1994 by Atlas Precious Metals Inc. Location and Access The Gold Bar mine is located in the Southern Roberts Creek Mountains, in Eureka County, Nevada, approximately 30 miles northwest of the town of Eureka, Nevada, primarily in Township 22 North, Range 50 East (N39°48’16.5”; W116°21’09.65”).
Los Azules is located in the Andean Copper Belt in Northern Argentina, which hosts many of the world’s largest copper deposits. ​ ​ The following table summarizes the land position related to the McEwen Copper segment as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ Number of Square McEwen Copper Mineral Property Interest ​ Claims ​ Miles Los Azules project 21 126 Elder Creek exploration property 573 18 Other Argentina properties 17 180 Total McEwen Copper Properties 611 324 ​ 46 Table of Contents Los Azules Copper Project, Argentina (100% owned by McEwen Copper) Overview and History The Los Azules copper project is an advanced-stage porphyry copper exploration project located in the cordilleran region in the province of San Juan, Argentina near the border with Chile.
The following table summarizes the land position related to the McEwen Copper segment as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Square Square McEwen Copper Mineral Property Interest ​ Claims ​ Miles ​ Kilometers Los Azules project 21 ​ 126 326 Elder Creek exploration property (Nevada, USA) ​ 573 ​ 18 ​ 47 Other Argentina properties 17 ​ 180 466 Total McEwen Copper Properties 611 324 839 ​ 50 Table of Contents Los Azules Copper Project, Argentina (47.7% owned) Overview and History The Los Azules copper project is an advanced stage porphyry copper exploration project located in the cordilleran region in the province of San Juan, Argentina near the border with Chile.
Gold mineralization at the Black Fox and Froome mines occurs in different geological environments within a complex system of structurally-prepared pathways (conduits) that host economic quantities of gold mineralization as: (1) free gold grains associated with shallow dipping quartz veins (aka ‘flats’) and stockworks within green carbonate and ankerite-altered ultramafic rocks; (2) gold associated with the development and distribution of pyrite, and (3) free gold carried within steeply dipping sigmoidal/sheared quartz veins.
Gold mineralization at the Black Fox and Froome mines occurs in different geological environments within a complex system of structurally-prepared pathways (conduits) that host economic quantities of gold mineralization as: (1) free gold grains associated with shallow dipping quartz veins (flats) and stockworks within green carbonate and ankerite-altered ultramafic rocks; (2) gold associated with the development and distribution of pyrite, and (3) free gold carried within steeply dipping sigmoidal/sheared quartz veins. 45 Table of Contents Facilities and Infrastructure The Black Fox property has well developed infrastructure including electricity, roads, water supply and high-speed internet access.
In addition, the Canada segment includes other exploration properties such as Fuller, Davidson-Tisdale, Buffalo Ankerite and Paymaster. 39 Table of Contents The location of the various properties is shown below: ​ ​ The following table summarizes the Canada land position of our company as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Number of ​ Square Canada Mineral Property Interest ​ PINs (1) ​ Claims ​ Miles Black Fox property 32 53 10 Stock property ​ 25 ​ 108 ​ 10 Davidson-Tisdale ​ 11 ​ 1 ​ 2 Fuller ​ 4 ​ — ​ 1 Paymaster 15 — 1 Buffalo Ankerite 7 1 3 Total Canada Properties 94 163 27 (1) Parcel Identification Number (“PIN”) is a unique number assigned to each automated parcel in the Ontario Land Registry.
The location of the various properties is shown below: ​ ​ The following table summarizes the Canada land position of our company as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Number of ​ Square ​ Square Canada Mineral Property Interest ​ PINs (1) ​ Claims ​ Miles ​ Kilometers Black Fox Property 32 ​ 53 ​ 10 ​ 26 Stock Property ​ 25 ​ 108 ​ 10 ​ 26 Davidson-Tisdale ​ 11 ​ 1 ​ 2 ​ 5 Fuller ​ 4 ​ — ​ 1 ​ 3 Paymaster 15 ​ — ​ 1 ​ 3 Buffalo Ankerite 7 ​ 1 ​ 3 ​ 8 Total Canada Properties 94 163 27 ​ 71 (1) Parcel Identification Number (“PIN”) is a unique number assigned to each automated parcel in the Ontario Land Registry. 44 Table of Contents Production Properties Fox Complex, Canada (100% owned) For detailed information on the Fox Complex production statistics and financial results, refer to Item 7.
Mineralization is typically associated with strong decalcification of the host limestone and local pods of remobilized carbon. At Gold Bar South, oxide gold mineralization is stratigraphically hosted in the lower Devonian Horse Canyon overlying the Devonian Devils Gate Limestone. Mineralization occurs along the crest of a broad fold with higher-grade mineralization focused along the intersection of northwest and northeast faults.
Mineralization is typically associated with strong decalcification and argillization of the host limestone and local pods of remobilized carbon. At Gold Bar South, oxide gold mineralization is stratigraphically hosted in Devonian Horse Canyon siltstone overlying the Devonian Devils Gate Limestone.
Under a 50/50 JV with Bonaventure (Iconic) South Midas (Squaw Creek) Elko County 151 Unpatented Claims 3096 1253 Held by McEwen Mining Nevada Inc.
Nevada Gold Mines Etchegaray, Smith, Damele et al ​ New Pass Churchill County 107 Unpatented Claims 2211/895 Under a 50/50 JV with Bonaventure (Iconic) Held by McEwen Mining Nevada Inc. South Midas (Squaw Creek) Elko County 151 Unpatented Claims 3096/1253 Under a 50/50 JV with Bonaventure (Iconic) Held by McEwen Mining Nevada Inc.
The concession area is located approximately 20 miles by road from the village of Mocorito, approximately 30 miles from the town of Guamúchil. The approximate coordinates for the center of the district are longitude W107°51’ and latitude N25°38’. Facilities and Infrastructure The El Gallo mine has well-developed infrastructure including electricity, roads, water supply and high-speed internet access.
Access is by paved and well maintained, two-way dirt roads. The concession area is located approximately 20 miles by road from the village of Mocorito, approximately 30 miles from the town of Guamúchil. The approximate coordinates for the center of the district are longitude W107°51’ and latitude N25°38’.
An internal feasibility-level study completed on the Grey Fox project in early 2015 by Primero, recommended further development of the deposit.
An internal feasibility-level study completed on the Grey Fox project in early 2015 by Primero Mining recommended further development of the deposit. Further advanced project work continued until 2016, when Primero ceased all non-essential expenditures.
Current water supplies are adequate to sustain current and planned future operations. 41 Table of Contents The Stock property, the site of our Stock mill, also has well developed infrastructure including electricity, roads, water supply and high-speed internet access. Two buildings support security and administration of the mill.
The primary water supply for the Black Fox property comes from an on-site freshwater well and water produced from dewatering activities. Current water supplies are adequate to sustain current and planned future operations. The Stock property, the site of our Stock mill, also has well developed infrastructure including electricity, roads, water supply and high-speed internet access.
Under a 50/50 JV with Bonaventure (Iconic) Slaven Canyon Lander County 68 Unpatented Claims 1382 559 Held by WKGUS LLC Currently in an Exploration Agreement with Option to Lease with Baker Hughes Oilfield Operations LLC, set to expire 5/7/2023 Keystone and O'Dair Eureka County 2 Patented Claims 16.52 6.7 Owned by: 50% Nevada Pacific Gold (US), Inc. 50% Robert C.
Slaven Canyon Lander County 68 Unpatented Claims 1382/559 Not currently under agreement. Held by WKGUS LLC Keystone and O'Dair Eureka County 2 Patented Claims 16/7 Not currently under agreement. Owned by: 50% Nevada Pacific Gold (US), Inc. 50% Robert C.
Approximately 25 miles northwest of the Gold Bar property is the Cortez gold mine owned by Nevada Gold Mines (Barrick Gold Corporation and Newmont Corporation joint venture), and 25 miles southeast is the producing Ruby Hill mine: ​ ​ The following table summarizes the land position of our properties in Nevada as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ Number of Square USA Mineral Property Interest ​ Claims ​ Miles Gold Bar 3,016 97 Tonkin 1,390 45 Other Properties 994 32 Total United States Properties 5,400 174 ​ 37 Table of Contents Production Properties Gold Bar mine, Nevada (100% owned) For detailed information on the Gold Bar mine production statistics and financial results, refer to Item 7.
The following table summarizes the land position of our properties in Nevada as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Square Square USA Mineral Property Interest ​ Claims ​ Miles ​ Kilometers Gold Bar 2,376 ​ 97 ​ 251 Tonkin 1,390 ​ 45 ​ 117 Other Properties 994 ​ 32 ​ 83 Total USA Properties 4,760 174 451 ​ 41 Table of Contents Production Properties Gold Bar mine, Nevada (100% owned) For detailed information on the Gold Bar mine production statistics and financial results, refer to Item 7.
We commenced construction in November 2017 following receipt of the signed Record of Decision from the U.S. Environmental Protection Agency. The Gold Bar mine achieved commercial production on May 23, 2019.
We commenced construction in November 2017 following receipt of the signed Record of Decision from the U.S. Environmental Protection Agency. The Gold Bar mine achieved commercial production on May 23, 2019. Mining currently occurs at the Pick, Ridge, and Gold Bar South deposits. The property is located within the Battle Mountain-Eureka-Cortez gold trend in Eureka County, Nevada.
Location and Access The El Gallo mine and the surrounding properties are in northwestern Mexico in the western foothills of the Sierra Madre Occidental mountain range, within the State of Sinaloa in the Mocorito Municipality, approximately 60 miles by air northwest of Culiacan, the capital city of Sinaloa State. Access is by paved and well maintained, two-way dirt roads.
The decision to proceed with the project remains under review at this time. ​ Location and Access The Fenix Project and the surrounding properties are in northwestern Mexico in the western foothills of the Sierra Madre Occidental mountain range, within the State of Sinaloa in the Mocorito Municipality, approximately 60 miles by air northwest of Culiacan, the capital city of Sinaloa State.
The following table summarizes our properties (other than the Gold Bar mine and the Elder Creek exploration property) in the State of Nevada, United States: ​ ​ ​ ​ ​ ​ ​ Project Name County Type of Interest Acres Hectares Claimant or Owner Agreement Status Tonkin Springs Eureka County 1390 Unpatented Claims 27708 11213 Held By Tonkin Springs LLC Not currently under agreement.
Our current operating or advanced stage properties are the following: the Fox Complex in Ontario, Canada; the Gold Bar mine in Nevada, United States; the Fenix Project in Sinaloa, Mexico; the Los Azules copper project in San Juan, Argentina; and the San José mine in Santa Cruz, Argentina. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 37 Table of Contents The following table summarizes our properties (other than the Gold Bar mine and the Elder Creek exploration property) in the State of Nevada, United States: ​ ​ ​ ​ ​ ​ ​ Property name County Type of Interest Acres/Hectares Conditions Ownership Tonkin Springs Eureka County 1390 Unpatented Claims 27708/11213 Not currently under agreement.
Exploration activities (primarily diamond drilling and geophysical surveys) were initiated at the Stock property in early 2018, and continued at a steady pace throughout 2019.
Exploration activities (primarily diamond drilling and geophysical surveys) were initiated at the Stock property in early 2018 and continued at a steady pace throughout 2019. These efforts led to the discovery of additional mineralized material at Stock East, and a new source of potentially economic bulk mineralization at Stock West.
As of the end of 2022, this equipment was in the process of being mobilized from the Los Mochis port to the Fenix Project site. 45 Table of Contents SEGMENT: MCEWEN COPPER Exploration Properties Our McEwen Copper segment contains the Los Azules copper project in the province of San Juan, Argentina as well as the Elder Creek exploration property in the state of Nevada, United States. ​ The following map depicts the location of the Los Azules project.
This will allow us to maximize the utilization of each acquired equipment, with the mills being the first to be mobilized and refurbished, now ready for installation. ​ 49 Table of Contents SEGMENT: MCEWEN COPPER ​ Exploration Properties Our McEwen Copper segment contains the Los Azules copper project in the province of San Juan, Argentina as well as the Elder Creek exploration property in the state of Nevada, United States. ​ The following map depicts the location of the Los Azules project.
Our Stock property hosts the Stock mill and is the site of the former Stock mine previously operated until 2005 by St Andrews Goldfields. Exploration initiated by us in 2018 and continuing in 2022 has defined two mineralized zones at Stock East and Stock West, within a 2-mile mineralized trend along the Destor-Porcupine Fault.
Exploration initiated by us in 2018 and continuing in 2023 has defined three mineralized zones at Stock East, the down dip component of the historical Stock Mine, and Stock West, within a 2-mile mineralized trend along the Destor-Porcupine Fault.
Cornerstone Eureka County 50 Unpatented Claims 1015 411 Held by Nevada Pacific Gold LLC Not currently under agreement. Patty JV Eureka County Total of 616 claims 311 claims contributed by McEwen Mining Nevada Inc. 257 claims contributed by NGM 48 Leased Claims 12644 5117 McEwen Mining Nevada Inc.
Held by Nevada Pacific Gold LLC Patty JV Eureka County Total of 616 claims 311 claims contributed by McEwen Mining Nevada Inc. 257 claims contributed by NGM 48 Leased Claims 12644/5117 Joint Venture with Nevada Gold Mines (60% as Manager) Serabi Gold (10%) and McEwen Mining Nevada Inc. (30%) McEwen Mining Nevada Inc.
Phase 1 includes the reprocessing of material from the heap leach pad at the existing El Gallo mine, which we refer to as HLM. Phase 2 includes the processing of open pit silver mineralization from the nearby El Gallo Silver deposit, with our existing process plant.
Phase 1 involves the reprocessing of material from the leach pad at the existing El Gallo mine, referred to as HLM. Phase 2 encompasses the processing of open-pit silver mineralization from the nearby El Gallo Silver deposit, utilizing our existing processing plant. The processing plant is expected to employ proven and conventional mineral processing and precious metal recovery technologies.
Exploration Activities Exploration activities in 2022 included drilling 16,924 feet of core and reverse circulation (“RC”) drilling focused on targets around the Gold Bar mine, including near-mine extensions at Cabin North, Pick and potential extensions at the Atlas Pit. A concerted effort was placed on fieldwork and new target development in the Cabin South and Wall Fault Corridor areas.
Exploration Activities Exploration activities in 2023 included drilling 68,020 feet of reverse circulation (“RC”) drilling focused on targets around the Gold Bar mine, including near-mine extensions at Cabin North, Cabin South, Pick, Benmark, Pot Canyon and Gold Canyon, Wall Fault and Gold Bar South.
The Black Fox property includes the Froome mine, the Grey Fox deposit, as well as the Black Fox mine which is currently under care and maintenance. The Black Fox mine initially produced gold from 1997 to 2001, operated by Exall Resources Limited. Re-commissioned by Brigus Gold Corporation (“Brigus”), the mine restarted in early 2009. Primero Mining Corp.
The Black Fox mine initially produced gold from 1997 to 2001, operated by Exall Resources Limited. Re-commissioned by Brigus Gold Corporation (“Brigus”), the mine restarted in early 2009. Primero Mining Corp. (“Primero”) acquired Brigus on March 5, 2014, and continued to operate the mine. We acquired the property on October 3, 2017, and continued commercial operations.
This was published in January 2022 as both NI 43-101 (PEA) and S-K 1300 Technical Reports (Initial Assessment). Diamond drilling operations at Grey Fox continued in 2022 with the primary goal being to identify new lenses of mineralization at two of the select zones (Gibson and Whiskey Jack) present at this project.
Diamond drilling operations at Grey Fox continued in 2023 with a total of 21 holes (35,361 feet) drilled with the primary goal being to identify new lenses of mineralization at two of the select zones (Gibson and Whiskey Jack) present at this project.
Residual leaching production and ongoing closure and reclamation activities continued through 2022. The El Gallo mine consists of 8 square miles of concessions. Concession titles are granted under Mexican mining law. Mining concessions are subject to annual work requirements and payment of annual surface taxes that are assessed and levied on a semi-annual basis in accordance with Mexican law.
Mining concessions are subject to annual work requirements and payment of annual surface taxes that are assessed and levied on a semi-annual basis in accordance with Mexican law. An annual lease agreement for surface access to the El Gallo mine is currently in place.
If and when the Expenditure Commitment is completed, KEX and McEwen Copper will form an unincorporated 60:40 joint venture. 48 Table of Contents SEGMENT: MINERA SANTA CRUZ (“MSC”), ARGENTINA ​ The following map depicts the location in the northwest corner of the Deseado Massif region of the San José mine land package, which forms the Minera Santa Cruz segment.
McEwen Copper is currently reviewing the technical data and results of KEX’s program to determine next steps for the Elder Creek property. ​ 52 Table of Contents SEGMENT: MINERA SANTA CRUZ (“MSC”), ARGENTINA ​ The following map depicts the location in the northwest corner of the Deseado Massif region of the San José mine land package, which forms the Minera Santa Cruz segment.
Advanced-Stage Properties Fenix Project, Mexico (100% owned) Overview and History Two areas of interest located inside of our property are currently considered for the Fenix Project and are the basis of the resource estimate included in the feasibility study released on February 16, 2021. 44 Table of Contents The Fenix Project, which is currently under consideration but has not been approved for development, contemplates a two-phase development process.
Two areas of interest located within these concessions are currently under consideration for the Fenix Project and form the basis for the resource estimate included in a feasibility study published on February 16, 2021. The Fenix Project envisions a two-phase development process.
Management’s Discussion and Analysis of Financial Condition and Results of Operations. Overview and History We own 100% of the El Gallo mine, originally known as the Magistral mine. The El Gallo mine was an open pit gold mine and heap leach operation that we operated from September 2012 to June 2018, when we ceased active mining.
Management’s Discussion and Analysis of Financial Condition and Results of Operations . 48 Table of Contents Overview and History We own 100% of the El Gallo mine, originally known as the Magistral mine.
These properties are located in the well-established Timmins Gold Mining district in Northern Ontario, Canada. Given the proximity to communities in a region with primary industries of mining and forestry, local supplies and services are easily available and can be delivered in a timely manner to our operations.
Given the proximity to communities in a region with primary industries of mining and forestry, local supplies and services are easily available and deliverable in a timely manner to our operations. The Black Fox property includes the Froome mine, the Grey Fox deposit, as well as the Black Fox mine which is currently under care and maintenance.
Further advanced project work continued until 2016, when Primero ceased all non-essential expenditures. 42 Table of Contents In 2021, we undertook a substantial surface exploration program of 185 holes and nearly 255,000 feet of core drilling that focused on the Stock and Grey Fox properties in support of a planned preliminary economic assessment.
In 2021, Grey Fox undertook a substantial surface exploration program of 185 holes and nearly 255,000 feet of core drilling that focused on the Stock and Grey Fox properties in support of a planned preliminary economic assessment. This was published in January 2022 in both NI 43-101 (Preliminary Economic Assessment or PEA) and S-K 1300 (Initial Assessment) Technical Reports.
Facilities and Infrastructure In addition to the El Gallo mine infrastructure described above, which would support the Fenix Project if a positive production decision is made, we purchased a secondhand gold processing plant and associated equipment in September 2022, which includes substantially all of the major components contemplated in Phase 1 of our Fenix Project feasibility study.
In supporting the Fenix Project, we purchased a secondhand gold processing plant and associated equipment in September 2022, which includes all of the major components contemplated in Phase 1 of our feasibility study. As of the end of 2023, most of the equipment necessary for the plant has been mobilized at our project site to undergo a comprehensive refurbishment program.
Facilities and Infrastructure The Black Fox property has well developed infrastructure including electricity, roads, water supply and high-speed internet access. There are seven fully serviced modular buildings supporting various functions of the underground mine, including a maintenance shop, warehouse, compressed air plant, backfill plant and water management facilities.
There are seven fully serviced modular buildings supporting various functions of the underground mine, including a maintenance shop, warehouse, compressed air plant, backfill plant and water management facilities. Mineralized material from the Froome mine is transported to, and processed at, the Stock mill, which has a nominal processing capacity of 1,200 tonnes per day.
Production Properties Fox Complex, Canada (100% owned) For detailed information on the Fox Complex production statistics and financial results, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 40 Table of Contents Overview and History We acquired the properties comprising the Fox Complex during 2017.
Management’s Discussion and Analysis of Financial Condition and Results of Operations. Overview and History We acquired the properties comprising the Fox Complex during 2017. These properties are located in the well-established Timmins Gold Mining district in Northern Ontario, Canada.
Removed
Our current operating or advanced stage properties are the following: the Fox Complex in Ontario, Canada; the Gold Bar mine in Nevada, United States; the Fenix Project in Sinaloa, Mexico; the Los Azules copper project in San Juan, Argentina; and the San José mine in Santa Cruz, Argentina.
Added
Held By Tonkin Springs LLC Cornerstone Eureka County 50 Unpatented Claims 1015/411 Not currently under agreement.
Removed
Nevada Gold Mines Etchegaray, Smith, Damele et al ​ Joint Venture with Nevada Gold Mines (60% as Manager) Serabi Gold (10%) and McEwen Mining Nevada Inc. (30%) New Pass Churchill County 107 Unpatented Claims 2211 895 Held by McEwen Mining Nevada Inc.
Added
Withnell and Ralph S.Withnell ​ The following table summarizes our properties in Canada in the Province of Ontario: ​ ​ ​ ​ ​ ​ ​ Property name Municipality Type of Interest Acres/Hectares Conditions Ownership Buffalo Ankerite Timmins 16 Patented claims 1364/552 Exploration Held by McEwen Mining via Lexam VG Gold Inc.
Removed
Mining occurs at the Pick and Ridge pits, as well as the Gold Bar South pit, where we received permitting on in April 2022 and began mining in December 2022. The property is located within the Battle Mountain-Eureka-Cortez gold trend in Eureka County, Nevada. The property was previously mined from 1987 to 1994 by Atlas Precious Metals Inc.
Added
Lagañoso 1 Calingasta-San Juan 21 unpatented claims 5189/2100 None 100% Minandes S.A. Lagañoso 2 Calingasta-San Juan 28 unpatented claims 6918/2800 None 100% Minandes S.A. Nevada Calingasta-San Juan 35 unpatented claims 12305/4979 None 100% Minandes S.A. Nevada 2 Calingasta-San Juan 22 unpatented claims 5436/2200 None 100% Minandes S.A. Chiflones 1 Calingasta-San Juan 6 unpatented claims 1482/600 None 100% Minandes S.A.
Removed
At Cabin South, we completed 12 shallow rotary air blast holes for a total of 990 feet, the results of which provided three intercepts in early 2023 that we are following up on with a phase one core drilling campaign. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for more details.
Added
Chiflones 2 Calingasta-San Juan 6 unpatented claims 1482/600 None 100% Minandes S.A. Diego 1 Calingasta-San Juan 33 unpatented claims 8107/3280 None 100% Minandes S.A. Diego 2 Calingasta-San Juan 30 unpatented claims 7358/2977 None 100% Minandes S.A. Julia 4 Calingasta-San Juan 10 unpatented claims 2471/1000 None 100% Minandes S.A. Julia 1 Calingasta-San Juan 10 unpatented claims 2471/1000 None 100% Minandes S.A.
Removed
(“Primero”) acquired Brigus on March 5, 2014, and continued to operate the mine. We acquired the property on October 3, 2017 and continued commercial operations. During 2021, mining transitioned to the Froome mine where we have been operating since.
Added
Julia 2 Calingasta-San Juan 10 unpatented claims 2471/1000 None 100% Minandes S.A. Julia 3 Calingasta-San Juan 10 unpatented claims 2471/1000 None 100% Minandes S.A. Julia 5 Calingasta-San Juan 10 unpatented claims 2471/1000 None 100% Minandes S.A. Ines 1 Calingasta-San Juan 35 unpatented claims 12324/4987 None 100% Minandes S.A.
Removed
Mineralized material from the Froome mine is transported to, and processed at, the Stock mill, which has a nominal processing capacity of 1,200 tonnes per day. The primary water supply for the Black Fox property comes from an on-site fresh water well and water produced from dewatering activities.
Added
Vero Calingasta-San Juan 2 unpatented claims 409/165 None 100% Minandes S.A. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 38 Table of Contents The following table summarizes our properties (other than El Gallo) in Mexico: ​ ​ ​ ​ ​ ​ ​ Property name Municipality Type of Interest Acres/Hectares Conditions Ownership 2da.
Removed
These efforts led to growth of mineralized material at Stock East, and the discovery of a new source of potentially economic bulk mineralization known as Stock West sitting approximately 0.5 miles west of the existing mine workings. We resumed exploration at Stock West in late August 2020.
Added
Reduccion Rocio Fracción A Mocorito, Sinaloa Mexico 1 Patented claim 40187/16263 None 100% McEwen Mining El Gallo Silver (partial) Mocorito, Sinaloa Mexico 1 Patented claim 2923/1183 None 100% McEwen Mining El Encuentro (partial) Mocorito, Sinaloa Mexico 2 Patented claims 1040/421 Payment of royalties as of January 31, 2022 Held by McEwen Mining via purchase option with Almaden de Mexico - Minera Gavilan SA de CV Palmarito Mocorito, Sinaloa Mexico 1 Patented claim 282/114 Payment of royalties for the period from July 14, 2016 to July 14, 2026 Held by McEwen Mining via purchase option with Consorcio Minero Latinoamericano SA de CV Palmarito Mocorito, Sinaloa Mexico 2 Patented claims 1774/718 None Held by McEwen Mining via purchase option with Atonilco Construcciones SA de CV San Dimas Mocorito, Sinaloa Mexico 1 Patented claim 259/105 None Held by McEwen Mining via purchase option with Arturo Molina 3era.
Removed
In early 2021 and continuing into 2022, a diamond drill program totaling 94 holes and 107,375 feet (2022) were initiated in close proximity to the former producing Stock Mine which was designed to identify zones of mineralization meant to enhance the PEA for the Fox Complex, including for Stock West.
Added
Reducción Shakira Fracción A (**) Sinaloa de Leyva, Sinaloa Mexico 1 Patented claim 50928/20610 None 100% McEwen Mining Mina Grande (partial) Sinaloa de Leyva, Sinaloa Mexico 1 Patented claim 151/61 None Held by McEwen Mining via purchase option with Arturo Molina Twin Domes Mocorito, Sinaloa Mexico 1 Patented claim 49/20 None 100% McEwen Mining Haciendita (partial) Sinaloa de Leyva, Sinaloa Mexico 1 Patented claim 358/145 None 100% McEwen Mining ​ 39 Table of Contents The location of our significant production, advanced-stage and exploration properties is shown below: ​ ​ 40 Table of Contents SEGMENT: UNITED STATES The following map depicts the location of our major properties in the United States segment, including the Gold Bar mine and exploration properties which are fully owned by us or subject to joint venture agreements.
Removed
An annual lease agreement for surface access to the El Gallo mine is currently in place.
Added
Approximately 25 miles northwest of the Gold Bar property is the Cortez gold mine owned by Nevada Gold Mines (Barrick Gold Corporation and Newmont Corporation joint venture), and 25 miles southeast is the producing Ruby Hill mine owned by i-80 Gold Corp.
Removed
The process plant is expected to use conventional and proven mineral processing and precious metals recovery technologies. Phase 1 is envisioned to have a throughput rate of 5,000 tonnes per day. During Phase 2, mineralized material from the El Gallo Silver deposit would be processed at a maximum of 3,250 tonnes per day.
Added
Mineralization occurs along the crest of a broad fold with higher-grade mineralization focused along the intersection of northwest and northeast faults.
Removed
The difference in treatment rate is due to the finer grind sizes targeted, and the difference in grinding characteristics of the El Gallo Silver mineralized material. Tailings produced during the operation would be stored in the mined-out Samaniego open pit at the El Gallo mine.
Added
A concerted effort was placed on fieldwork and new target development in the Saddle, Cabin, Pot Canyon, and Wall Fault Corridor areas. At Gold Bar South, we completed 11 RC holes, which helped to convert inferred resources into indicated resources. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for more details.
Removed
As part of this process, tailings deposition would include a delivery system designed to maximize tailings consolidation and water recovery.
Added
In addition, the Canada segment includes other exploration properties such as Fuller, Davidson-Tisdale, Buffalo Ankerite and Paymaster.
Removed
Utilizing the in-pit tailings storage technology is expected to be cost effective and environmentally friendly as it would reduce the disturbance footprint and construction material, eliminate the construction of a tailings dam, recycle process water, and reduce closure obligations by removing the leach pad.
Added
During 2021, mining transitioned to the Froome mine where we have been operating since. Our Stock property hosts the Stock mill and is the site of the former Stock mine previously operated until 2005 by St Andrew Goldfields Ltd.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeBased on strong leadership and involvement from all levels of the organization, these programs and procedures form the cornerstone of safety at McEwen Mining, ensuring that employees are provided a safe and healthy environment and are intended to reduce workplace accidents, incidents and losses, comply with all mining-related regulations and provide support for both regulators and the industry to improve mine safety. 50 Table of Contents The operation of our Gold Bar mine is subject to regulation by the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”).
Biggest changeBased on strong leadership and involvement from all levels of the organization, these programs and procedures form the cornerstone of safety at McEwen Mining, ensuring that employees are provided a safe and healthy environment and are intended to reduce workplace accidents, incidents and losses, comply with all mining-related regulations and provide support for both regulators and the industry to improve mine safety. 54 Table of Contents The operation of our Gold Bar mine is subject to regulation by the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”).
We are required to report certain mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K, and that required information is included in Exhibit 95 filed with this report. ​ 51 Table of Contents PART II
We are required to report certain mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K, and that required information is included in Exhibit 95 filed with this report. ​ 55 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+2 added−0 removed2 unchanged
Biggest changeThe graph assumes a $100 investment on December 31, 2017, in our common stock and the two other stock market indices, and assumes the reinvestment of dividends, if any. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2017 2018 2019 2020 2021 2022 McEwen Mining (MUX) ​ $ 100 ​ $ 80 ​ $ 56 ​ $ 43 ​ $ 39 ​ $ 26 ​ NYSE Arca Gold Bugs Index ​ 100 ​ 84 ​ 126 ​ 156 ​ 135 ​ 119 ​ NYSE Composite Index ​ 100 ​ 89 ​ 109 ​ 113 ​ 134 ​ 119 ​ ​ ​ ​ ​ ITEM 6. [RESERVED] 52 Table of Contents ​
Biggest changeThe graph assumes a $100 investment on December 31, 2018, in our common stock and the two other stock market indices, and assumes the reinvestment of dividends, if any. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2018 2019 2020 2021 2022 2023 McEwen Mining (MUX) ​ $ 100 ​ $ 70 ​ $ 54 ​ $ 49 ​ $ 32 ​ $ 40 NYSE Arca Gold Bugs Index ​ 100 ​ 151 ​ 187 ​ 161 ​ 143 ​ 152 NYSE Composite Index ​ 100 ​ 122 ​ 128 ​ 151 ​ 133 ​ 148 ​ ​ ​ ​ ITEM 6. [RESERVED] 56 Table of Contents ITEM 7.
Performance Graph ​ ​ The above graph compares our cumulative total shareholder return for the five years ended December 31, 2022, with (i) the NYSE Arca Gold Bugs Index, which is an index of companies involved in the gold industry and (ii) the NYSE Composite Index, which is a performance indicator of the overall stock market.
Performance Graph ​ ​ The above graph compares our cumulative total shareholder return for the five years ended December 31, 2023, with (I) the NYSE Arca Gold Bugs Index, which is an index of companies involved in the gold industry and (ii) the NYSE Composite Index, which is a performance indicator of the overall stock market.
As of March 13, 2023, there were 47,427,584 shares of our common stock outstanding, which were held by approximately 3,000 stockholders of record. Transfer Agent Computershare Trust Company, N.A. is the transfer agent for our common stock. The principal office of Computershare is 250 Royall Street, Canton, Massachusetts, 02021 and its telephone number is (303) 262-0600.
As of March 15, 2024, there were 49,439,696 shares of our common stock outstanding, which were held by approximately 3,000 stockholders of record. Transfer Agent Computershare Trust Company, N.A. is the transfer agent for our common stock. The principal office of Computershare is 250 Royall Street, Canton, Massachusetts, 02021 and its telephone number is (303) 262-0600.
Added
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Introduction This section of this Annual Report on Form 10-K generally discusses fiscal 2023 and 2022 items including our results of operations and financial condition, and year-to-year comparisons between 2023 and 2022 with a particular emphasis on 2023.
Added
In each case, we discuss factors that we believe have affected our operating results and financial condition and may do so in the future. For a discussion of our financial condition and results of operations for 2022 compared to 2021, please refer to

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeAs a result, we have ceased using cash cost and all-in sustaining cost per gold equivalent ounce to evaluate the El Gallo mine on an ongoing basis and have therefore ceased disclosure of such metric: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, 2022 ​ Year ended December 31, 2022 ​ 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 - Cash costs (100% owned) $ 8,666 ​ $ 10,742 ​ $ 19,408 ​ $ 43,500 ​ $ 36,845 ​ $ 80,345 Mine site reclamation, accretion and amortization ​ ​ 218 ​ ​ — ​ ​ 218 ​ ​ 1,654 ​ ​ — ​ ​ 1,654 In‑mine exploration ​ ​ 505 ​ ​ — ​ ​ 505 ​ ​ 3,335 ​ ​ — ​ ​ 3,335 Capitalized underground mine development (sustaining) ​ ​ — ​ ​ 4,317 ​ ​ 4,317 ​ ​ — ​ ​ 15,448 ​ ​ 15,448 Capital expenditures on plant and equipment (sustaining) ​ ​ 1,576 ​ ​ — ​ ​ 1,576 ​ ​ 3,084 ​ ​ — ​ ​ 3,084 Sustaining leases ​ ​ 191 ​ ​ 110 ​ ​ 301 ​ ​ 1,754 ​ ​ 619 ​ ​ 2,373 All ‑ in sustaining costs ​ $ 11,156 ​ $ 15,169 ​ $ 26,325 ​ $ 53,327 ​ $ 52,912 ​ $ 106,239 Ounces sold, including stream (GEO) (1) ​ ​ 8.0 ​ ​ 9.4 ​ ​ 17.4 ​ ​ 26.8 ​ ​ 36.1 ​ ​ 62.9 Cash cost per ounce ($/GEO sold) ​ $ 1,083 ​ $ 1,137 ​ $ 1,112 ​ $ 1,622 ​ $ 1,020 ​ $ 1,276 AISC per ounce ($/GEO sold) ​ $ 1,395 ​ $ 1,606 ​ $ 1,509 ​ $ 1,989 ​ $ 1,465 ​ $ 1,688 (1) Total gold equivalent ounces sold for Q4/22 and 2022 is 36,724 and 132,186 respectively and includes gold equivalent ounces sold from 49% interest in MSC and 100% owned operating mines of 17,446 and 62,942, as disclosed above, and 0 and 883 gold equivalent ounces sold from the El Gallo mine for Q4/22 and 2022, respectively. ​ 72 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, 2021 ​ Year ended December 31, 2021 ​ 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 - Cash costs (100% owned) ​ $ 20,615 ​ $ 10,339 ​ $ 30,954 ​ $ 73,990 ​ $ 32,961 ​ $ 106,951 Mine site reclamation, accretion and amortization ​ ​ 167 ​ ​ 152 ​ ​ 320 ​ ​ 651 ​ ​ 906 ​ ​ 1,557 In‑mine exploration ​ ​ 40 ​ ​ 436 ​ ​ 476 ​ ​ 921 ​ ​ 2,248 ​ ​ 3,168 Capitalized underground mine development (sustaining) ​ ​ — ​ ​ 4,969 ​ ​ 4,969 ​ ​ — ​ ​ 5,771 ​ ​ 5,771 Capital expenditures on plant and equipment (sustaining) ​ ​ 29 ​ ​ 110 ​ ​ 139 ​ ​ 29 ​ ​ 836 ​ ​ 865 Sustaining leases ​ ​ 435 ​ ​ 215 ​ ​ 650 ​ ​ 1,279 ​ ​ 735 ​ ​ 2,014 All‑in sustaining costs ​ $ 21,286 ​ $ 16,221 ​ $ 37,507 ​ $ 76,870 ​ $ 43,456 ​ $ 120,326 Ounces sold, including stream (GEO) (1) ​ ​ 10.1 ​ ​ 9.2 ​ ​ 19.3 ​ ​ 43.9 ​ ​ 29.7 ​ ​ 73.6 Cash cost per ounce ($/GEO sold) ​ $ 2,038 ​ $ 1,122 ​ $ 1,601 ​ $ 1,687 ​ $ 1,108 ​ $ 1,453 AISC per ounce ($/GEO sold) ​ $ 2,104 ​ $ 1,760 ​ $ 1,940 ​ $ 1,753 ​ $ 1,461 ​ $ 1,635 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2020 ​ ​ Gold Bar ​ Fox Complex ​ Total ​ ​ (in thousands, except ounces and per ounce) Production costs applicable to sales - Cash costs (100% owned) ​ $ 58,465 ​ $ 34,639 ​ $ 93,104 Mine site reclamation, accretion and amortization ​ ​ 1,223 ​ ​ 414 ​ ​ 1,637 In‑mine exploration ​ ​ 1,923 ​ ​ 1,280 ​ ​ 3,203 Capitalized underground mine development (sustaining) ​ ​ — ​ ​ 3,646 ​ ​ 3,646 Capital expenditures on plant and equipment (sustaining) ​ ​ 4,739 ​ ​ 601 ​ ​ 5,340 Sustaining leases ​ ​ 1,922 ​ ​ 324 ​ ​ 2,246 All‑in sustaining costs ​ $ 68,272 ​ $ 40,904 ​ $ 109,176 Ounces sold, including stream (GEO) ​ ​ 27.8 ​ ​ 24.8 ​ ​ 52.6 Cash cost per ounce ($/GEO sold) ​ $ 2,106 ​ $ 1,397 ​ $ 1,772 AISC per ounce ($/GEO sold) ​ $ 2,459 ​ $ 1,650 ​ $ 2,077 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 ​ 2020 San José mine cash costs (100% basis) ​ (in thousands, except per ounce) ​ ​ ​ Production costs applicable to sales - Cash costs ​ $ 51,963 ​ $ 70,866 ​ $ 182,195 ​ $ 196,032 ​ $ 138,182 Mine site reclamation, accretion and amortization ​ ​ 111 ​ ​ 118 ​ ​ 400 ​ ​ 451 ​ ​ 635 Site exploration expenses ​ 2,158 ​ ​ 2,715 ​ ​ 8,946 ​ ​ 11,207 ​ ​ 9,183 Capitalized underground mine development (sustaining) ​ 10,201 ​ ​ 9,509 ​ ​ 37,959 ​ ​ 27,548 ​ ​ 16,782 Less: Depreciation ​ ​ (499) ​ ​ (647) ​ ​ (1,990) ​ ​ (1,971) ​ ​ (1,184) Capital expenditures (sustaining) ​ 3,006 ​ ​ 2,199 ​ ​ 11,636 ​ ​ 15,751 ​ ​ 6,117 All ‑ in sustaining costs ​ $ 66,939 ​ $ 84,761 ​ $ 239,146 ​ $ 249,018 ​ $ 169,715 Ounces sold (GEO) ​ ​ 39.3 ​ ​ 41.5 ​ ​ 139.5 ​ ​ 155.3 ​ ​ 112.1 Cash cost per ounce ($/GEO sold) ​ $ 1,321 ​ $ 1,708 ​ $ 1,306 ​ $ 1,262 ​ $ 1,233 AISC per ounce ($/GEO sold) ​ $ 1,701 ​ $ 2,043 ​ $ 1,714 ​ $ 1,603 ​ $ 1,514 ​ Average realized prices The term average realized price per ounce used in this report is also a non-GAAP financial measure.
Biggest changeAs a result, we have ceased using cash cost and all-in sustaining cost per gold equivalent ounce to evaluate the El Gallo mine on an ongoing basis and have therefore ceased disclosure of such metric: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, 2023 ​ Year ended December 31, 2023 ​ ​ 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 - Cash costs (100% owned) $ 25,889 ​ $ 13,298 ​ $ 39,187 ​ $ 67,335 ​ $ 51,895 ​ $ 119,230 In‑mine exploration ​ ​ 1,705 ​ ​ — ​ ​ 1,705 ​ ​ 4,759 ​ ​ — ​ ​ 4,759 Capitalized underground mine development (sustaining) ​ ​ — ​ ​ 2,119 ​ ​ 2,119 ​ ​ — ​ ​ 8,046 ​ ​ 8,046 Capital expenditures on plant and equipment (sustaining) ​ ​ 1,374 ​ ​ — ​ ​ 1,374 ​ ​ 9,028 ​ ​ — ​ ​ 9,028 Sustaining leases ​ ​ 11 ​ ​ 153 ​ ​ 164 ​ ​ 248 ​ ​ 676 ​ ​ 924 All ‑ in sustaining costs ​ $ 28,978 ​ $ 15,570 ​ $ 44,548 ​ $ 81,370 ​ $ 60,617 ​ $ 141,987 Ounces sold, including stream (GEO) ​ ​ 19.2 ​ ​ 10.6 ​ ​ 29.9 ​ ​ 43.0 ​ ​ 44.9 ​ ​ 87.9 Cash cost per ounce sold ($/GEO) ​ $ 1,345 ​ $ 1,253 ​ $ 1,313 ​ $ 1,565 ​ $ 1,157 ​ $ 1,356 AISC per ounce sold ($/GEO) ​ $ 1,506 ​ $ 1,467 ​ $ 1,492 ​ $ 1,891 ​ $ 1,351 ​ $ 1,615 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, 2022 ​ Year ended December 31, 2022 ​ ​ 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 - Cash costs (100% owned) ​ $ 8,666 ​ $ 10,742 ​ $ 19,408 ​ $ 43,500 ​ $ 36,845 ​ $ 80,345 Mine site reclamation, accretion and amortization ​ ​ 218 ​ ​ — ​ ​ 218 ​ ​ 1,654 ​ ​ — ​ ​ 1,654 In‑mine exploration ​ ​ 505 ​ ​ — ​ ​ 505 ​ ​ 3,335 ​ ​ — ​ ​ 3,335 Capitalized underground mine development (sustaining) ​ ​ — ​ ​ 4,317 ​ ​ 4,317 ​ ​ — ​ ​ 15,448 ​ ​ 15,448 Capital expenditures on plant and equipment (sustaining) ​ ​ 1,576 ​ ​ — ​ ​ 1,576 ​ ​ 3,084 ​ ​ — ​ ​ 3,084 Sustaining leases ​ ​ 191 ​ ​ 110 ​ ​ 301 ​ ​ 1,754 ​ ​ 619 ​ ​ 2,373 All‑in sustaining costs ​ $ 11,156 ​ $ 15,169 ​ $ 26,325 ​ $ 53,327 ​ $ 52,912 ​ $ 106,239 Ounces sold, including stream (GEO) ​ ​ 8.0 ​ ​ 9.4 ​ ​ 17.4 ​ ​ 26.8 ​ ​ 36.1 ​ ​ 62.9 Cash cost per ounce sold ($/GEO) ​ $ 1,083 ​ $ 1,137 ​ $ 1,112 ​ $ 1,622 ​ $ 1,020 ​ $ 1,276 AISC per ounce sold ($/GEO) ​ $ 1,395 ​ $ 1,606 ​ $ 1,509 ​ $ 1,989 ​ $ 1,465 ​ $ 1,688 ​ 79 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, 2021 ​ Year ended December 31, 2021 ​ ​ 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 - Cash costs (100% owned) ​ $ 20,615 ​ $ 10,339 ​ $ 30,954 ​ $ 73,990 ​ $ 32,961 ​ $ 106,951 Mine site reclamation, accretion and amortization ​ ​ 167 ​ ​ 152 ​ ​ 319 ​ ​ 651 ​ ​ 906 ​ ​ 1,557 In‑mine exploration ​ ​ 40 ​ ​ 436 ​ ​ 476 ​ ​ 921 ​ ​ 2,248 ​ ​ 3,168 Capitalized underground mine development (sustaining) ​ ​ — ​ ​ 4,969 ​ ​ 4,969 ​ ​ — ​ ​ 5,771 ​ ​ 5,771 Capital expenditures on plant and equipment (sustaining) ​ ​ 29 ​ ​ 110 ​ ​ 139 ​ ​ 29 ​ ​ 836 ​ ​ 865 Sustaining leases ​ ​ 435 ​ ​ 215 ​ ​ 650 ​ ​ 1,279 ​ ​ 735 ​ ​ 2,014 All‑in sustaining costs ​ $ 21,286 ​ $ 16,221 ​ $ 37,507 ​ $ 76,870 ​ $ 43,457 ​ $ 120,326 Ounces sold, including stream (Au Eq. oz) ​ ​ 10.1 ​ ​ 9.2 ​ ​ 19.3 ​ ​ 43.9 ​ ​ 29.7 ​ ​ 73.6 Cash cost per ounce ($/Au Eq. oz sold) ​ $ 2,038 ​ $ 1,122 ​ $ 1,601 ​ $ 1,687 ​ $ 1,108 ​ $ 1,453 AISC per ounce ($/Au Eq. oz sold) ​ $ 2,104 ​ $ 1,760 ​ $ 1,940 ​ $ 1,753 ​ $ 1,461 ​ $ 1,635 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2023 2022 2023 2022 ​ 2021 San José mine cash costs (100% basis) ​ (in thousands, except per ounce) ​ ​ ​ Production costs applicable to sales - Cash costs ​ $ 45,800 ​ $ 51,963 ​ $ 177,234 ​ $ 182,195 ​ $ 196,032 Mine site reclamation, accretion and amortization ​ ​ 93 ​ ​ 111 ​ ​ 535 ​ ​ 400 ​ ​ 451 Site exploration expenses ​ 1,831 ​ ​ 2,158 ​ ​ 9,167 ​ ​ 8,946 ​ ​ 11,207 Capitalized underground mine development (sustaining) ​ 10,379 ​ ​ 10,201 ​ ​ 38,318 ​ ​ 37,959 ​ ​ 27,548 Less: Depreciation ​ ​ (768) ​ ​ (499) ​ ​ (2,930) ​ ​ (1,990) ​ ​ (1,971) Capital expenditures (sustaining) ​ 2,106 ​ ​ 3,006 ​ ​ 9,224 ​ ​ 11,636 ​ ​ 15,751 All ‑ in sustaining costs ​ $ 59,441 ​ $ 66,940 ​ $ 231,548 ​ $ 239,146 ​ $ 249,018 Ounces sold (GEO) ​ ​ 39.7 ​ ​ 39.3 ​ ​ 127.3 ​ ​ 139.5 ​ ​ 155.3 Cash cost per ounce sold ($/GEO) ​ $ 1,155 ​ $ 1,321 ​ $ 1,393 ​ $ 1,306 ​ ​ 1,262 AISC per ounce sold ($/GEO) ​ $ 1,499 ​ $ 1,701 ​ $ 1,820 ​ $ 1,714 ​ ​ 1,603 ​ Average realized prices The term average realized price per ounce used in this report is also a non-GAAP financial measure.
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 gross profit, cash costs, cash cost per ounce, all-in sustaining costs, all-in sustaining cost per ounce, average realized price per ounce, and liquid assets differently than we do, limiting the usefulness as a comparative measure.
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 gross profit, cash costs, cash cost per ounce, all-in sustaining costs, all-in sustaining cost per ounce, and average realized price per ounce differently than we do, limiting the usefulness as a comparative measure.
Forward-looking statements and information are based upon several estimates and assumptions that, while considered reasonable by management, they 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.
Forward-looking statements and information are based upon several 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.
In developing the mine production portion of the budget, we evaluate several 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). 77 Table of Contents ● dilution of material processed. ● internal and contractor equipment and labor availability. ● seasonal weather patterns.
In developing the mine production portion of the budget, we evaluate several 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.
Lease obligations disclosed above include long term leases covering office space, exploration expenditures, option payments and option payments on properties. ​ 69 Table of Contents NON-GAAP FINANCIAL PERFORMANCE M EASURES We have included in this report certain non-GAAP performance measures as detailed below.
Lease obligations disclosed above include long term leases covering office space, exploration expenditures, option payments and option payments on properties. ​ 75 Table of Contents NON-GAAP FINANCIAL PERFORMANCE M EASURES We have included in this report certain non-GAAP performance measures as detailed below.
Costs are allocated to precious metal inventories based on costs of the respective in-process inventories incurred prior to the refining process plus applicable refining costs. The assumptions used by the Company to measure metal content during each stage of the inventory conversion process includes estimated recovery rates based on laboratory testing and assaying.
Costs are allocated to precious metal inventories based on costs of the respective in-process inventories incurred prior to the refining process plus applicable refining costs. The assumptions used by the Company to measure metal content during each stage of the inventory conversion process include estimated recovery rates based on laboratory testing and assaying.
(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 70. (3) On sales from 100% owned operations only, excluding streaming arrangement.
(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 76. (3) On sales from 100% owned operations only, excluding streaming arrangement.
Sustaining capital costs do not include costs of expanding the 71 Table of Contents 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.
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.
Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 70 for additional information.
Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 76 for additional information.
We undertake no responsibility or obligation to update publicly these forward-looking statements, except as required by law and we 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. ​
We undertake no responsibility or obligation to update publicly these forward-looking statements, except as required by law and we 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. ​ 85 Table of Contents
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.
Therefore, actual results and future events could differ materially from those anticipated in such statements and information. ​ ​ ​ ​ ​ 83 Table of Contents 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.
For a reconciliation of these non-GAAP measures to the amounts included in our Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 and to our Balance Sheets as of December 31, 2022 and 2021 and certain limitations inherent in such measures, please see the discussion under “Non-GAAP Financial Performance Measures”, beginning on page 70.
For a reconciliation of these non-GAAP measures to the amounts included in our Consolidated Statements of Operations for the years ended December 31, 2023, and 2022 and to our Balance Sheets as of December 31, 2023, and 2022, and certain limitations inherent in such measures, please see the discussion under “Non-GAAP Financial Performance Measures”, beginning on page 76.
Throughout this Management’s Discussion and Analysis (“MDA”), the reporting periods for the three months ended on December 31, 2022 and December 31, 2021 are abbreviated as Q4/22 and Q4/21, the reporting for the years ended December 31, 2022 and 2021 are abbreviated as the full year 2022 and the full year 2021 respectively.
Throughout this Management’s Discussion and Analysis (“MDA”), the reporting periods for the three months ended on December 31, 2023, and December 31, 2022, are abbreviated as Q4/23 and Q4/22, and the reporting for the years ended December 31, 2023, and 2022 are abbreviated as the full year 2023 and the full year 2022 respectively.
RISK FACTORS IMPACTING FORWARD-LOOKING STATEMENTS The important factors that could prevent us from achieving our stated goals and objectives include, but are not limited to, those set forth in other “Risk Factors” section in this report and the following: ● our ability to raise funds required for the execution of our business strategy; ● the effects of pandemics such as COVID-19 on health in our operating jurisdictions and the worldwide, national, state and local responses to such pandemics, and direct and indirect effects of Covid-19 or other pandemics on our business plans and operations; ● 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 on-going listing of our common stock on the New York Stock Exchange or another national securities exchange in the U.S; ● 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; ● 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; 78 Table of Contents ● 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; ● our continued listing on a public exchange; ● uncertainty relating to title to mineral properties; ● changes in relationships with the local communities in the areas in which we operate; ● changes in environmental laws and requirements in the jurisdictions in which we operate; ● decisions by third parties over which we have no control.
RISK FACTORS IMPACTING FORWARD-LOOKING STATEMENTS The 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 this report and the following: ● our ability to raise funds required for the execution of our business strategy; ● 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 on-going listing of our common stock on the New York Stock Exchange or another national securities exchange in the U.S, the Toronto Stock Exchange, or another public exchange in Canada; ● our ability to remediate the material weakness and return to effective our internal control over financial reporting and disclosure controls and procedures in a timely manner; 84 Table of Contents ● 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; ● changes in environmental laws and requirements in the jurisdictions in which we operate; and ● decisions by third parties over which we have no control.
All financial quarterly and other interim results are unaudited. In addition, in this report, gold equivalent ounces (“GEO”) includes gold and silver ounces calculated based on a silver to gold ratio of 78:1 for Q1/22, 83:1 for Q2/22, 90:1 for Q3/22, and 85:1 for Q4/22.
All quarterly financial and other interim results are unaudited. In addition, in this report, gold equivalent ounces (“GEO”) includes gold and silver ounces calculated based on a silver to gold ratio of 84:1 for Q1/23, 83:1 for Q2/23, 82:1 for Q3/23, and 85:1 for Q4/23.
When the specific reclamation requirements are met, the beneficiary of the surety bonds will cancel and/or return the instrument to the issuing entity. As of December 31, 2022, no additional liability has been recognized for our surety bonds of $39.4 million.
When the specific reclamation requirements are met, the beneficiary of the surety bonds will cancel and/or return the instrument to the issuing entity. As of December 31, 2023, no additional liability has been recognized for our surety bonds of $42.5 million.
The accounting estimates related to amortization are critical accounting estimates because (1) the determination of reserves involves uncertainties with respect to the ultimate geology of its reserves and the assumptions used in determining the economic feasibility of mining those reserves and (2) changes in estimated proven and probable reserves and asset useful lives can have a material impact on net (loss) income.
The accounting estimates related to amortization are critical accounting estimates because (1) the determination of reserves involves uncertainties with respect to the ultimate geology of its reserves and the assumptions used in determining the economic feasibility of mining those reserves and (2) changes in estimated proven and probable reserves and asset useful lives can have a material impact on net (loss) income. 81 Table of Contents Estimates regarding mine development capitalization costs involve the determination of proven and probable reserves.
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, Investment in Minera Santa Cruz S.A. (“MSC”) – 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 .
Each of the following is a non-GAAP measure: cash gross profit, cash costs, cash cost per ounce, all-in sustaining costs (“AISC”), all-in sustaining cost per ounce, average realized price per ounce, and liquid assets.
Each of the following is a non-GAAP measure: adjusted net income or loss, adjusted net income or loss per share, cash gross profit, cash costs, cash cost per ounce, all-in sustaining costs (“AISC”), all-in sustaining cost per ounce, and average realized price per ounce.
The most directly comparable measure prepared in accordance with GAAP is gross profit or loss.
The most directly comparable measure prepared in accordance with GAAP is net loss.
These statements include, among others: ● statements about our anticipated exploration results, cost and feasibility of production, production estimates, receipt of permits or other regulatory or government approvals and plans for the development of our properties; ● statements regarding the potential impacts of the COVID-19 pandemic, government responses to the continuing pandemic, and our response to those issues; ● 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; ● statements of our expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts.
These statements include, among others: ● statements about our anticipated exploration results, cost and feasibility of production, production estimates, receipt of permits or other regulatory or government 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.
Average realized price 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. 73 Table of Contents The following table reconciles this non-GAAP measure to the most directly comparable U.S. GAAP measure, revenue from gold and silver sales.
We prepare this measure to evaluate our performance against market (London P.M. Fix). Average realized price 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 this non-GAAP measure to the most directly comparable U.S.
Regarding properties and projects that are not in production, we provide some details of our plan of operation. This section provides information up to the date of filing this report. The discussion contains financial performance measures that are not prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP” or “GAAP”).
This section provides information up to the date of filing this report. The discussion contains financial performance measures that are not prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP” or “GAAP”).
On February 23, 2023, the Company and McEwen Copper announced the closing of an ARS $30.0 billion investment by FCA Argentina S.A., a subsidiary of Stellantis N.V. (“Stellantis”) to acquire shares of McEwen Copper in a two-part transaction that closed on February 23, 2023. The transaction consisted of: 1. Private placement of 2,850,000 common shares, and 2.
On February 23, 2023, we closed an ARS 30 billion investment by FCA Argentina S.A., a subsidiary of Stellantis, to acquire shares of McEwen Copper in a two-part transaction. The transaction consisted of a private placement of 2,850,000 common shares of McEwen Copper, and the sale of 1,250,000 common shares indirectly owned by McEwen Mining.
Revenue from gold and silver sales was $14.6 million in Q4/22 compared to $15.7 million in Q4/21. The decrease was primarily due to a lower average realized gold price per ounce ($1,674/oz gold in Q4/22 compared with $1,806/oz gold in Q4/21).
Revenue from gold and silver sales was $19.4 million in Q4/23 compared to $14.6 million in Q4/22. The increase was primarily due to a higher average realized gold price per ounce ($1,956/oz gold in Q4/23 compared with $1,674/oz gold in Q4/22).
Changes in the estimates could result in material adjustments to the Company’s reserves and asset values. Income and Mining Taxes: The Company accounts for income and mining taxes under ASC 740 using the liability method, recognizing certain temporary differences between the financial reporting basis of liabilities and assets and the related tax basis for such liabilities and assets.
Income and Mining Taxes: The Company accounts for income and mining taxes under ASC 740 using the liability method, recognizing certain temporary differences between the financial reporting basis of liabilities and assets and the related tax basis for such liabilities and assets.
Gold Bar mine The following table sets out operating results for the Gold Bar mine for the three months ended December 31,2022 and 2021 and year ended December 31, 2022, compared to 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 ​ 2021 2022 2021 2020 Operating Results ​ (in thousands, unless otherwise indicated) ​ ​ ​ Mined mineralized material (t) ​ 87 ​ 511 ​ 1,382 ​ 2,227 ​ 1,072 ​ Average grade (g/t Au) ​ 0.49 ​ 0.39 ​ 0.65 ​ 0.63 ​ 0.72 ​ Processed mineralized material (t) ​ 140 ​ 529 ​ 1,336 ​ 2,296 ​ 1,164 ​ Average grade (g/t Au) ​ 0.64 ​ 0.41 ​ 0.67 ​ 0.64 ​ 0.69 ​ Gold ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 7.9 ​ 10.0 ​ 26.6 ​ 43.9 ​ 27.9 ​ Sold ​ 8.0 ​ 10.1 ​ 26.8 ​ 43.9 ​ 27.8 ​ Silver ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 0.1 ​ 0.1 ​ 0.7 ​ 1.1 ​ 0.7 ​ Sold ​ — ​ — ​ 0.6 ​ — ​ 0.6 ​ Gold equivalent ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 8.0 ​ 10.0 ​ 26.6 ​ 43.9 ​ 27.9 ​ Sold ​ 8.0 ​ 10.1 ​ 26.8 ​ 43.9 ​ 27.8 ​ Revenue from gold and silver sales ​ $ 13,592 ​ $ 18,286 ​ $ 47,926 ​ $ 79,205 ​ $ 48,884 ​ Cash costs (1) ​ $ 8,666 ​ $ 20,615 ​ $ 43,500 ​ $ 73,991 ​ $ 58,465 ​ Cash cost per ounce ($/GEO) (1) ​ $ 1,083 ​ $ 2,038 ​ $ 1,622 ​ $ 1,687 ​ $ 2,106 ​ All‑in sustaining costs (1) ​ $ 11,156 ​ $ 21,286 ​ $ 53,328 ​ $ 76,870 ​ $ 68,272 ​ AISC per ounce ($/GEO) (1) ​ $ 1,395 ​ $ 2,104 ​ $ 1,989 ​ $ 1,753 ​ $ 2,459 ​ Silver : gold ratio ​ 85 : 1 ​ 77 : 1 ​ 84 : 1 ​ 72 : 1 ​ 86 : 1 ​ (1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
Gold Bar mine The following table sets out operating results for the Gold Bar mine for the three months ended December 31, 2023, and 2023 and year ended December 31, 2023, compared to 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2023 ​ 2022 2023 2022 2021 Operating Results ​ (in thousands, unless otherwise indicated) ​ ​ ​ Mined mineralized material (t) ​ 699 ​ 87 ​ 2,495 ​ 1,382 ​ 2,227 Average grade (g/t Au) ​ 0.86 ​ 0.49 ​ 0.84 ​ 0.65 ​ 0.63 Processed mineralized material (t) ​ 877 ​ 140 ​ 2,537 ​ 1,336 ​ 2,296 Average grade (g/t Au) ​ 0.69 ​ 0.64 ​ 0.77 ​ 0.67 ​ 0.64 Gold ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 19.8 ​ 7.9 ​ 43.7 ​ 26.6 ​ 43.9 Sold ​ 19.2 ​ 8.0 ​ 43.0 ​ 26.8 ​ 43.9 Silver ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 0.2 ​ 0.1 ​ 0.8 ​ 0.7 ​ 1.1 Sold ​ — ​ — ​ 0.7 ​ 0.6 ​ — GEOs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 19.8 ​ 7.9 ​ 43.7 ​ 26.6 ​ 43.9 Sold ​ 19.2 ​ 8.0 ​ 43.0 ​ 26.8 ​ 43.9 Revenue from gold and silver sales ​ $ 37,883 ​ $ 13,592 ​ $ 83,409 ​ $ 47,926 ​ $ 79,205 Cash costs (1) ​ $ 25,889 ​ $ 8,666 ​ $ 67,335 ​ $ 43,500 ​ $ 73,990 Cash cost per ounce ($/GEO sold) (1) ​ $ 1,345 ​ $ 1,083 ​ $ 1,565 ​ $ 1,622 ​ $ 1,687 All‑in sustaining costs (1) ​ $ 28,978 ​ $ 11,156 ​ $ 81,370 ​ $ 53,328 ​ $ 76,870 AISC per ounce ($/GEO sold) (1) ​ $ 1,506 ​ $ 1,395 ​ $ 1,891 ​ $ 1,989 ​ $ 1,753 Gold : Silver ratio ​ 85 : 1 ​ 85 : 1 ​ 83 : 1 ​ 84 : 1 ​ 72 : 1 (1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
MSC – Operating Results The following table sets out operating results for the San José mine for the three months ended December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021, and 2020 (on a 100% basis): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 2020 Operating Results ​ (in thousands, except otherwise indicated) San José Mine—100% basis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mined mineralized material (t) ​ 150 ​ 144 ​ 555 ​ 532 ​ 400 Average grade mined (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ 5.0 ​ 5.7 ​ 5.0 ​ 5.4 ​ 5.7 Silver ​ 320 ​ 358 ​ 345 ​ 353 ​ 389 Processed mineralized material (t) ​ 153 ​ 143 ​ 507 ​ 539 ​ 401 Average grade processed (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ 5.4 ​ 5.8 ​ 5.6 ​ 5.5 ​ 5.6 Silver ​ 332 ​ 346 ​ 369 ​ 344 ​ 357 Average recovery (%): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ 86.3 ​ 86.9 ​ 87.0 ​ 88.1 ​ 89.4 Silver ​ 87.8 ​ 87.3 ​ 88.0 ​ 88.0 ​ 89.1 Gold ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 22.8 ​ 23.1 ​ 78.8 ​ 83.6 ​ 65.0 Sold ​ 22.5 ​ 22.7 ​ 77.2 ​ 81.8 ​ 65.3 Silver ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 1,430 ​ 1,393 ​ 5,292 ​ 5,250 ​ 4,108 Sold ​ 1,435 ​ 1,392 ​ 5,303 ​ 5,229 ​ 4,172 Gold equivalent ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 39.6 ​ 41.2 ​ 141.1 ​ 156.8 ​ 111.2 Sold ​ 39.3 ​ 41.5 ​ 139.5 ​ 155.3 ​ 112.1 Revenue from gold and silver sales ​ $ 77,890 ​ $ 76,065 ​ $ 254,698 ​ $ 271,863 ​ $ 219,020 Average realized price: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ($/Au oz) ​ $ 1,988 ​ $ 1,869 ​ $ 1,826 ​ $ 1,760 ​ $ 1,842 Silver ($/Ag oz) ​ $ 23.16 ​ $ 24.12 ​ $ 21.45 ​ $ 24.45 ​ $ 23.67 Cash costs (1) ​ $ 51,963 ​ $ 70,866 ​ $ 182,195 ​ $ 196,032 ​ $ 138,182 Cash cost per ounce ($/GEO) (1) ​ $ 1,321 ​ $ 1,708 ​ $ 1,306 ​ $ 1,262 ​ $ 1,233 All‑in sustaining costs (1) ​ $ 66,939 ​ $ 84,761 ​ $ 239,146 ​ $ 249,018 ​ $ 169,715 AISC per ounce ($/GEO) (1) ​ $ 1,701 ​ $ 2,043 ​ $ 1,714 ​ $ 1,603 ​ $ 1,514 Silver : gold ratio ​ ​ 85 : 1 ​ 77 : 1 ​ 84 : 1 ​ 72 : 1 ​ ​ 89 : 1 (1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
MSC – Operating Results The following table sets out operating results for the San José mine for the three months ended December 31, 2023, and 2022, and for the years ended December 31, 2023, 2022, and 2021 (on a 100% basis): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2023 2022 2023 2022 2021 Operating Results ​ (in thousands, except otherwise indicated) San José Mine—100% basis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mined mineralized material (t) ​ 173 ​ 150 ​ 563 ​ 555 ​ 532 Average grade mined (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ 4.69 ​ 5.00 ​ 4.83 ​ 5.00 ​ 5.4 Silver ​ 274 ​ 320 ​ 270 ​ 345 ​ 353 Processed mineralized material (t) ​ 154 ​ 153 ​ 579 ​ 507 ​ 539 Average grade processed (g/t) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ 5.5 ​ 5.4 ​ 5.0 ​ 5.6 ​ 5.5 Silver ​ 297 ​ 332 ​ 270 ​ 369 ​ 344 Average recovery (%): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ​ 87.2 ​ 86.3 ​ 86.5 ​ 87.0 ​ 88.1 Silver ​ 88.1 ​ 87.8 ​ 88.0 ​ 88.0 ​ 88.0 Gold ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 23.8 ​ 22.8 ​ 81.0 ​ 78.8 ​ 83.6 Sold ​ 23.4 ​ 22.5 ​ 75.1 ​ 77.2 ​ 81.8 Silver ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 1,297 ​ 1,430 ​ 4,422 ​ 5,292 ​ 5,250 Sold ​ 1,384 ​ 1,435 ​ 4,363 ​ 5,303 ​ 5,229 GEOs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 39.1 ​ 39.6 ​ 134.0 ​ 141.1 ​ 156.8 Sold ​ 39.7 ​ 39.3 ​ 127.3 ​ 139.5 ​ 155.3 Revenue from gold and silver sales ​ $ 76,979 ​ $ 77,890 ​ $ 242,461 ​ $ 254,698 ​ $ 271,863 Average realized price: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold ($/Au oz) ​ $ 1,941 ​ $ 1,988 ​ $ 1,985 ​ $ 1,826 ​ $ 1,760 Silver ($/Ag oz) ​ $ 22.81 ​ $ 23.16 ​ $ 21.43 ​ $ 21.45 ​ $ 24.45 Cash costs (1) ​ $ 45,800 ​ $ 51,963 ​ $ 177,234 ​ $ 182,195 ​ $ 196,032 Cash cost per ounce sold ($/GEO) (1) ​ $ 1,155 ​ $ 1,321 ​ $ 1,393 ​ $ 1,306 ​ $ 1,262 All‑in sustaining costs (1) ​ $ 59,441 ​ $ 66,939 ​ $ 231,548 ​ $ 239,146 ​ $ 249,018 AISC per ounce sold ($/GEO) (1) ​ $ 1,499 ​ $ 1,701 ​ $ 1,820 ​ $ 1,714 ​ $ 1,603 Gold : Silver ratio ​ ​ 85 : 1 ​ 85 : 1 ​ 83 : 1 ​ 84 : 1 ​ ​ 72 : 1 ​ (1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
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.
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. 78 Table of Contents The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measure, production costs applicable to sales.
Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 70 for additional information. 2022 compared to 2021 The Gold Bar mine produced 7,943 and 26,619 GEOs in Q4/22 and the full year 2022, respectively.
Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 76 for additional information. 66 Table of Contents 2023 compared to 2022 The Gold Bar mine produced 19,797 and 43,678 GEOs in Q4/23 and full year 2023, respectively.
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. Cash Costs equals Production Costs Applicable to Sales and is used interchangeably throughout the document.
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.
The Company’s forecasts are also used in determining the level of valuation allowances on the Company’s deferred tax assets. Reserves also play a key role in the valuation of certain assets in the determination of the purchase price allocations for acquisitions. Reserves involve many estimates and are not guarantees that the Company will recover the indicated quantities of metals.
The Company’s forecasts are also used in determining the level of valuation allowances on the Company’s deferred tax assets. Reserves also play a key role in the valuation of certain assets in the determination of the purchase price allocations 82 Table of Contents for acquisitions.
(“Stellantis”) to acquire shares of McEwen Copper in a two-part transaction that closed on February 24, 2023. The transaction consisted of: 1. Private placement of 2,850,000 common shares, and 2. Purchase of 1,250,000 common shares indirectly owned by McEwen Mining in a secondary sale.
Additionally, on March 15, 2023, we closed a $30 million investment by Nuton to acquire shares of McEwen Copper in a two-part transaction. The transaction consisted of a private placement of 350,000 common shares of McEwen Copper, and the sale of 1,250,000 common shares indirectly owned by McEwen Mining.
Fix Gold ($/oz) (4) ​ $ 1,726 ​ $ 1,795 ​ $ 1,800 ​ $ 1,799 ​ $ 1,735 Cash cost per ounce ($/GEO): (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 100% owned operations ​ $ 1,112 ​ $ 1,601 ​ $ 1,276 ​ $ 1,453 ​ $ 1,772 San José mine (49% attributable) ​ $ 1,321 ​ $ 1,708 ​ $ 1,306 ​ $ 1,262 ​ $ 1,233 AISC per ounce ($/GEO): (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 100% owned operations ​ $ 1,509 ​ $ 1,940 ​ $ 1,688 ​ $ 1,635 ​ $ 2,077 San José mine (49% attributable) ​ $ 1,701 ​ $ 2,043 ​ $ 1,714 ​ $ 1,603 ​ $ 1,514 Cash gross profit (loss) (2) ​ $ 7,919 ​ $ 1,224 ​ $ 19,157 ​ $ 17,318 ​ ​ (4,038) Gross profit (loss) ​ $ (288) ​ $ (5,898) ​ $ (544) ​ $ (6,481) ​ ​ (26,948) Silver : Gold ratio (1) ​ ​ 85 : 1 ​ ​ 77 : 1 ​ ​ 84 : 1 ​ ​ 72 : 1 ​ ​ 86 : 1 (1) Silver production is presented as a gold equivalent; the silver to gold ratio used is 84:1 for 2022 and 72:1 for 2021 and 86:1 for 2020; 85:1 for Q4/22 and 77:1 for Q4/21.
Fix Gold ($/oz) ​ $ 1,971 ​ $ 1,726 ​ $ 1,940 ​ $ 1,800 ​ $ 1,799 Cash cost per ounce ($/GEO sold): (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 100% owned operations ​ $ 1,313 ​ $ 1,112 ​ $ 1,356 ​ $ 1,276 ​ $ 1,453 San José mine (49% attributable) ​ $ 1,155 ​ $ 1,321 ​ $ 1,393 ​ $ 1,306 ​ $ 1,262 AISC per ounce ($/GEO sold): (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 100% owned operations ​ $ 1,492 ​ $ 1,509 ​ $ 1,615 ​ $ 1,688 ​ $ 1,635 San José mine (49% attributable) ​ $ 1,499 ​ $ 1,701 ​ $ 1,820 ​ $ 1,714 ​ $ 1,603 Cash gross profit (2) ​ $ 19,493 ​ $ 7,919 ​ $ 47,001 ​ $ 19,157 ​ $ 17,318 Gold : Silver ratio (1) ​ ​ 85 : 1 ​ ​ 85 : 1 ​ ​ 83 : 1 ​ ​ 84 : 1 ​ ​ 72:1 (1) Silver production is presented as a gold equivalent; the silver to gold ratio used is 83:1 for 2023, 84:1 for 2022, 72:1 for 2021 and 85:1 for Q4/23 and Q4/22.
Cash gross profit or loss is calculated by adding depletion and depreciation to gross profit or loss. 70 Table of Contents The following tables present a reconciliation of cash gross profit or loss to the most directly comparable GAAP measure, gross profit or loss: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2022 ​ ​ Gold Bar Fox Complex El Gallo Total (100% owned) ​ ​ ​ (in thousands) ​ Gross profit (loss) ​ $ (311) ​ $ 9,039 ​ $ (9,272) ​ $ (544) ​ Add: Depreciation and depletion ​ ​ 4,737 ​ ​ 14,964 ​ ​ — ​ ​ 19,701 ​ Cash gross profit (loss) ​ $ 4,426 ​ $ 24,003 ​ $ (9,272) ​ $ 19,157 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 ​ 2020 ​ ​ (in thousands) San José mine cash gross profit (100% basis) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit (loss) ​ $ 15,356 ​ $ (6,327) ​ $ 40,303 ​ $ 35,882 ​ $ 51,029 Add: Depreciation and depletion ​ ​ 10,571 ​ ​ 11,527 ​ ​ 32,200 ​ ​ 39,948 ​ ​ 29,809 Cash gross profit ​ $ 25,927 ​ $ 5,200 ​ $ 72,503 ​ $ 75,830 ​ $ 80,838 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2021 ​ Gold Bar Fox Complex El Gallo Total (100% owned) ​ ​ (in thousands) Gross (loss) profit ​ $ (3,287) ​ $ 2,447 ​ $ (5,640) ​ $ (6,480) Add: Depreciation and depletion ​ ​ 8,502 ​ ​ 15,296 ​ ​ — ​ ​ 23,798 Cash gross (loss) profit ​ $ 5,215 ​ $ 17,743 ​ $ (5,640) ​ $ 17,318 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2020 ​ Gold Bar Fox Complex El Gallo Total (100% owned) ​ ​ (in thousands) Gross (loss) profit ​ $ (21,366) ​ $ (4,070) ​ $ (1,512) ​ $ (26,948) Add: Depreciation and depletion ​ ​ 11,785 ​ ​ 10,883 ​ ​ 242 ​ ​ 22,910 Cash gross (loss) profit ​ $ (9,581) ​ $ 6,813 ​ $ (1,270) ​ $ (4,038) ​ 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.
The following tables present a reconciliation of cash gross profit or loss to the most directly comparable GAAP measure, gross profit or loss: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2023 ​ ​ Gold Bar ​ Fox Complex ​ El Gallo ​ Total (100% owned) ​ ​ (in thousands) Gross profit ​ $ 8,944 ​ $ 7,309 ​ $ 1,527 ​ $ 17,780 Add: Depreciation and depletion ​ ​ 7,130 ​ ​ 22,091 ​ ​ — ​ ​ 29,221 Cash gross profit ​ $ 16,074 ​ $ 29,400 ​ $ 1,527 ​ $ 47,001 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2022 ​ ​ Gold Bar ​ Fox Complex ​ El Gallo ​ Total (100% owned) ​ ​ (in thousands) Gross profit (loss) ​ $ (311) ​ $ 9,039 ​ $ (9,272) ​ $ (544) Add: Depreciation and depletion ​ ​ 4,737 ​ ​ 14,964 ​ ​ — ​ ​ 19,701 Cash gross profit (loss) ​ $ 4,426 ​ $ 24,003 ​ $ (9,272) ​ $ 19,157 ​ 77 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2021 ​ ​ Gold Bar ​ Fox Complex ​ El Gallo ​ Total (100% owned) ​ ​ (in thousands) Gross profit (loss) ​ $ (3,287) ​ $ 2,447 ​ $ (5,640) ​ $ (6,480) Add: Depreciation and depletion ​ ​ 8,502 ​ ​ 15,296 ​ ​ — ​ ​ 23,798 Cash gross profit (loss) ​ $ 5,215 ​ $ 17,743 ​ $ (5,640) ​ $ 17,318 ​ 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 continue to review opportunities to shorten the payback period of the Fox Complex. ​ The following table sets out operating results for the Fox Complex mines for the three months ended December 31, 2022 and 2021, and the years ended December 31, 2022, 2021, and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 2020 Operating Results ​ ​ (in thousands, unless otherwise indicated) ​ ​ ​ Mined mineralized material (t) ​ 95 ​ 122 ​ 419 ​ 307 ​ 200 ​ Average grade (g/t Au) ​ 3.33 ​ 3.05 ​ 3.49 ​ 3.38 ​ 3.51 ​ Processed mineralized material (t) ​ 88 ​ 92 ​ 345 ​ 303 ​ 235 ​ Average grade (g/t Au) ​ 3.74 ​ 3.41 ​ 3.77 ​ 3.24 ​ 3.19 ​ Gold equivalent ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 9.9 ​ 9.5 ​ 36.7 ​ 30.0 ​ 24.4 ​ Sold ​ ​ 9.4 ​ ​ 9.2 ​ ​ 36.1 ​ ​ 29.7 ​ ​ 24.8 ​ Revenue from gold and silver sales ​ $ 14,648 ​ $ 15,738 ​ $ 60,848 ​ $ 50,704 ​ $ 41,452 ​ Cash costs (1) ​ $ 10,742 ​ $ 10,339 ​ $ 36,845 ​ $ 32,961 ​ $ 34,639 ​ Cash cost per ounce ($/GEO) (1) ​ $ 1,137 ​ $ 1,122 ​ $ 1,020 ​ $ 1,108 ​ $ 1,397 ​ All‑in sustaining costs (1) ​ $ 15,169 ​ $ 16,221 ​ $ 52,912 ​ $ 43,457 ​ $ 40,904 ​ AISC per ounce ($/GEO) (1) ​ $ 1,606 ​ $ 1,760 ​ $ 1,465 ​ $ 1,461 ​ $ 1,650 ​ Silver : gold ratio ​ 85 : 1 ​ 77 : 1 ​ 84 : 1 ​ 72 : 1 ​ 86 : 1 ​ (1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
Canada Segmen t The Canada segment is comprised of our Fox Complex property, which includes the Froome underground mine; the Grey Fox and Stock West advanced-stage projects; the Stock mill; a number of exploration properties located near the city of Timmins, Ontario, Canada; and the Black Fox mine, currently on care and maintenance. ​ Fox Complex ​ The following table sets out operating results for the Fox Complex mines for the three months ended December 31, 2023, and 2022, and the years ended December 31, 2023, 2022, and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2023 2022 2023 2022 2021 Operating Results ​ ​ (in thousands, unless otherwise indicated) ​ ​ ​ Mined mineralized material (t) ​ 96 ​ 95 ​ 391 ​ 419 ​ 307 Average grade (g/t Au) ​ 3.08 ​ 3.33 ​ 3.40 ​ 3.49 ​ 3.38 Processed mineralized material (t) ​ 120 ​ 88 ​ 457 ​ 345 ​ 303 Average grade (g/t Au) ​ 2.84 ​ 3.74 ​ 3.31 ​ 3.77 ​ 3.24 Gold ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 10.2 ​ 7.8 ​ 44.4 ​ 26.8 ​ ​ Sold, excluding stream ​ ​ 9.8 ​ ​ 7.2 ​ ​ 41.3 ​ ​ 24.5 ​ ​ ​ Sold, stream ​ 0.8 ​ 0.7 ​ 3.5 ​ 2.2 ​ ​ Sold, including stream ​ ​ 10.6 ​ ​ 7.9 ​ ​ 44.8 ​ ​ 26.7 ​ ​ ​ Silver ounces: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 1.4 ​ 0.5 ​ 5.6 ​ 2.6 ​ ​ Sold ​ 0.9 ​ 3.0 ​ 5.6 ​ 3.0 ​ ​ GEOs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Produced ​ 10.2 ​ 9.9 ​ 44.4 ​ 36.7 ​ ​ 30.0 Sold, excluding stream ​ ​ 10.3 ​ ​ 7.2 ​ ​ 41.3 ​ ​ ​ ​ ​ ​ Sold ​ ​ 10.6 ​ ​ 9.4 ​ ​ 44.9 ​ ​ 36.7 ​ ​ 29.7 Revenue from gold and silver sales ​ $ 19,448 ​ $ 14,648 ​ $ 81,295 ​ $ 60,848 ​ $ 50,704 Cash costs (1) ​ $ 13,298 ​ $ 10,742 ​ $ 51,895 ​ $ 36,845 ​ $ 32,961 Cash cost per ounce ($/GEO sold) (1) ​ $ 1,253 ​ $ 1,137 ​ $ 1,157 ​ $ 1,020 ​ $ 1,108 All‑in sustaining costs (1) ​ $ 15,570 ​ $ 15,169 ​ $ 60,617 ​ $ 52,912 ​ $ 43,457 AISC per ounce ($/GEO sold) (1) ​ $ 1,467 ​ $ 1,606 ​ $ 1,351 ​ $ 1,465 ​ $ 1,461 Gold : Silver ratio ​ 85 : 1 ​ 85 : 1 ​ 83 : 1 ​ 84 : 1 ​ 72 : 1 (1) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
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.
The change is primarily attributable to the derecognition of liabilities from the deconsolidation of McEwen Copper. ​ 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.
Cash costs for the Company’s 100% owned operations equal Production costs applicable to sales. See “Non-GAAP Financial Performance Measures” beginning on page 70 for additional information. 2022 compared to 2021 The Froome mine produced 9,869 and 36,652 GEOs in Q4/22 and full year 2022, respectively.
See “Non-GAAP Financial Performance Measures” beginning on page 76 for additional information. 68 Table of Contents 2023 compared to 2022 The Froome mine produced 10,215 and 44,439 GEOs in Q4/23 and full year 2023, respectively, compared to 9,869 and 36,652 GEOs produced in Q4/22 and full year 2022, respectively.
The Company records a valuation allowance against any portion of those deferred income and mining tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all the deferred income and mining tax asset will not be realized. 76 Table of Contents FORWARD-LOOKING S TATEMENTS 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.
The Company records a valuation allowance against any portion of those deferred income and mining tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all the deferred income and mining tax asset will not be realized.
Cash Gross Profit Cash gross profit is a non-GAAP financial measure and does not have any standardized meaning.
Adjusted Net Income or Loss and Adjusted Net Income or Loss Per Share Adjusted net income or loss is a non-GAAP financial measure and does not have any standardized meaning.
The decrease in revenue was due to a decrease in GEOs sold during Q4/22 together with a lower average realized gold price ($1,642 per GEO in Q4/22 compared with $1,806 per GEO in Q4/21).
The increase in revenue was the result of higher GEOs sold during Q4/23 (19,245 GEOs in Q4/23 compared to 8,000 GEOs in Q4/22) together with a higher average realized gold price ($1,956 per GEO in Q4/23 compared with $1,674 per GEO in Q4/22).
Revenue from gold and silver sales was $60.8 million for full year 2022 compared to $50.7 million for full year 2021, driven by higher ounces sold and slightly offset by lower realized prices.
Revenue from gold and silver sales was $81.3 million for full year 2023 compared to $60.8 million for full year 2022, driven by higher ounces sold (44,868 GEOs in 2023 compared to 36,652 GEOs in 2022) and higher realized prices ($1,927/oz in 2023 and $1,788/oz in 2022).
We sold 36,724 GEOs in Q4/22, including 19,278 attributable GEOs from the San José mine (1) , bringing our total sales in full year 2022 to 132,186 GEOs, including 68,360 attributable GEOs from the San José mine (1) .
We sold 49,991 GEOs in Q4/23, including 19,432 attributable GEOs from the San José mine (1) , bringing our total sales in full year 2023 to 151,054 GEOs, including 62,355 attributable GEOs from the San José mine (1) .
Ounces of gold and silver sold for the San José mine are provided to us by MSC. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 2020 Average realized price - 100% owned ​ (in thousands, except per ounce) Revenue from gold and silver sales ​ $ 28,240 ​ $ 34,966 ​ $ 110,417 ​ $ 136,541 ​ $ 104,789 Less: revenue from gold sales, stream ​ ​ 512 ​ ​ 413 ​ ​ 1,748 ​ ​ 1,309 ​ ​ 1,194 Revenue from gold and silver sales, excluding stream ​ $ 27,728 ​ $ 34,553 ​ $ 108,669 ​ $ 135,232 ​ $ 103,595 Gold equivalent ounces sold ​ ​ 17.4 ​ ​ 19.9 ​ ​ 63.8 ​ ​ 77.3 ​ ​ 60.6 Less: gold ounces sold, stream ​ ​ 0.9 ​ ​ 0.7 ​ ​ 3.0 ​ ​ 2.3 ​ ​ 2.1 Gold equivalent ounces sold, excluding stream ​ ​ 16.6 ​ ​ 19.1 ​ ​ 60.8 ​ ​ 75.0 ​ ​ 58.5 Average realized price per GEO sold, excluding stream ​ $ 1,674 ​ $ 1,806 ​ $ 1,788 ​ $ 1,803 ​ $ 1,771 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 2020 Average realized price - San José mine (100% basis) ​ (in thousands, except per ounce) Gold sales ​ $ 44,648 ​ $ 42,484 ​ $ 140,948 ​ $ 144,024 ​ $ 120,258 Silver sales ​ ​ 33,242 ​ 33,581 ​ ​ 113,750 ​ 127,839 ​ ​ 98,762 Gold and silver sales ​ $ 77,890 ​ $ 76,065 ​ $ 254,698 ​ $ 271,863 ​ $ 219,020 Gold ounces sold ​ 22.5 ​ 22.7 ​ ​ 77.2 ​ 81.8 ​ 65.3 Silver ounces sold ​ 1,435 ​ 1,392 ​ ​ 5,303 ​ 5,229 ​ 4,172 Gold equivalent ounces sold ​ 39.3 ​ 41.5 ​ ​ 139.5 ​ 155.3 ​ 112.1 Average realized price per gold ounce sold ​ $ 1,988 ​ $ 1,869 ​ $ 1,826 ​ $ 1,760 ​ $ 1,842 Average realized price per silver ounce sold ​ $ 23.2 ​ $ 24.12 ​ $ 21.5 ​ $ 24.45 ​ $ 23.67 Average realized price per gold equivalent ounce sold ​ $ 1,980 ​ $ 1,834 ​ $ 1,826 ​ $ 1,750 ​ $ 1,954 ​ ​ Liquid assets The term liquid assets used in this report is also a non-GAAP financial measure.
Ounces of gold and silver sold for the San José mine are provided to us by MSC. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ ​ 2023 2022 2023 2022 2021 Average realized price - 100% owned ​ (in thousands, except per ounce) Revenue from gold and silver sales ​ $ 58,680 ​ $ 28,240 ​ $ 166,231 ​ $ 110,417 ​ $ 136,541 Less: revenue from gold sales, stream ​ ​ 474 ​ ​ 512 ​ ​ 2,042 ​ ​ 1,748 ​ ​ 1,309 Revenue from gold and silver sales, excluding stream ​ $ 58,206 ​ $ 27,728 ​ $ 164,189 ​ $ 108,669 ​ $ 135,232 GEOs sold ​ ​ 30.6 ​ ​ 17.4 ​ ​ 88.7 ​ ​ 63.8 ​ ​ 77.3 Less: gold ounces sold, stream ​ ​ 0.8 ​ ​ 0.9 ​ ​ 3.5 ​ ​ 3.0 ​ ​ 2.3 GEOs sold, excluding stream ​ ​ 29.8 ​ ​ 16.5 ​ ​ 85.2 ​ ​ 60.8 ​ ​ 75.0 Average realized price per GEO sold, excluding stream ​ $ 1,956 ​ $ 1,674 ​ $ 1,927 ​ $ 1,788 ​ $ 1,803 80 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2023 2022 2023 2022 2021 Average realized price - San José mine (100% basis) ​ (in thousands, except per ounce) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gold sales ​ $ 45,415 ​ $ 44,648 ​ $ 148,971 ​ $ 140,948 ​ $ 144,024 Silver sales ​ ​ 31,564 ​ 33,242 ​ ​ 93,490 ​ 113,750 ​ ​ 127,839 Gold and silver sales ​ $ 76,979 ​ $ 77,890 ​ $ 242,461 ​ $ 254,698 ​ $ 271,863 Gold ounces sold ​ 23.4 ​ 22.5 ​ ​ 75.1 ​ 77.2 ​ 81.8 Silver ounces sold ​ 1,384 ​ 1,435 ​ ​ 4,363 ​ 5,303 ​ 5,229 GEOs sold ​ 39.7 ​ 39.3 ​ ​ 127.3 ​ 139.5 ​ 155.3 Average realized price per gold ounce sold ​ $ 1,941 ​ $ 1,988 ​ $ 1,985 ​ $ 1,826 ​ $ 1,760 Average realized price per silver ounce sold ​ $ 22.81 ​ $ 23.20 ​ $ 21.43 ​ $ 21.50 ​ $ 24.45 Average realized price per GEO sold ​ $ 1,941 ​ $ 1,980 ​ $ 1,905 ​ $ 1,826 ​ $ 1,750 ​ CRITICAL ACCOUNTING ESTIMATES AND ACCOUNTING DEVELOPMENTS Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses our consolidated financial statements, which have been prepared in conformity with US GAAP.
It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs of capital are each subject to significant risks and uncertainties. 75 Table of Contents Stockpiles, Material on Leach Pads, In-process Inventory, Precious Metals Inventory and Materials and Supplies: Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates.
It is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs of capital are each subject to significant risks and uncertainties.
For a discussion of our financial condition and results of operations for 2021 compared to 2020, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 7, 2022.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 14, 2023. Regarding properties and projects that are not in production, we provide some details of our plan of operation.
Exploration Activities During 2022, we concentrated on resource delineation and exploration expansion at both our Stock and Grey Fox 63 Table of Contents properties. The principle aim of the diamond drilling was to enhance the initial PEA for Stock West by identifying additional resources in proximity to the proposed ramp to Stock West.
The principle aim of the diamond drilling was to enhance the PEA for Stock West by identifying additional resources in proximity to the proposed ramp to Stock West, as well as potentially expanding the resource at Stock East, the historic Stock mine at depth, and Grey Fox. During Q4/23, we incurred $1.6 million in exploration expenses at our Stock property.
We have implemented preventative measures to ensure a safe working environment for our employees and contractors and to prevent the spread of COVID-19 including facilitating access to vaccinations at our sites by coordinating with local health authorities and continue to maintain these systems and safety protocols through 2023. ​ 54 Table of Contents Index to Management’s Discussion and Analysis: ​ ​ I ​ Page 2022 and Q4/22 Operating and Financial Highlights 56 Selected Consolidated Financial and Operating Results 58 Consolidated Performance 58 Consolidated Financial Review 59 Liquidity and Capital Resources 60 Operations Review 61 U.S.A Segment 61 Gold Bar mine operating results 61 Exploration Activities - Nevada 62 Canada Segment 62 Fox Complex, Black Fox mine and Froome mine development 62 Froome Underground Mine Development 63 Exploration Activities - Fox Complex 63 Mexico Segment 64 El Gallo mine operating results 64 Advanced-Stage Properties - Fenix Project 65 MSC Segment, Argentina 66 MSC operating results 66 McEwen Copper Inc 67 Los Azules Project 68 Commitments and Contingencies 69 Non-GAAP Financial Performance Measures 70 Critical Accounting Estimates 75 Forward Looking Statements 77 Risk Factors Impacting Forward-Looking Statements 78 ​ ​ 55 Table of Contents 2022 AND Q4/22 OPERATING AND FINANCIAL HIGHLIGHTS Highlights for the year and quarter ended December 31, 2022 are summarized below and discussed further in the section entitled “Consolidated Performance”: Corporate Developments ● Mr.
Beginning in Q2/19, we adopted a variable silver to gold ratio for reporting that approximates the average price during each fiscal quarter. 57 Table of Contents Index to Management’s Discussion and Analysis: ​ ​ I ​ Page 2023 and Q4/23 Operating and Financial Highlights 59 Selected Consolidated Financial and Operating Results 59 Consolidated Performance 62 Consolidated Operations Review 63 Liquidity and Capital Resources 64 Environmental, Social, and Governance 64 Operations Review 66 U.S.A Segment 66 Gold Bar mine operating results 66 Exploration Activities - Nevada 67 2024 Production and Cost Outlook 68 Canada Segment 68 Fox Complex operating results 68 Exploration Activities – Fox Complex 69 2024 Production and Cost Outlook 70 Mexico Segment 70 Advanced-Stage Properties - Fenix Project 70 MSC Segment, Argentina 71 MSC operating results 71 2024 Production and Cost Outlook 71 McEwen Copper Inc 72 Los Azules Project 73 Commitments and Contingencies 75 Non-GAAP Financial Performance Measures 76 Critical Accounting Estimates and Accounting Developments 81 Forward-Looking Statements 83 Risk Factors Impacting Forward-Looking Statements 84 ​ ​ 58 Table of Contents 2023 AND Q4/23 OPERATING AND FINANCIAL HIGHLIGHTS Highlights for the year and quarter ended December 31, 2023, are summarized below and discussed further under “Consolidated Performance”: Corporate Developments ● On February 23, 2023, we closed an ARS $30 billion investment by FCA Argentina S.A., a subsidiary of Stellantis N.V.
We also continued exploration activities on our Cabin South deposit, trenching approximately 3,550 feet and drilling 12 rotary air blast holes totaling 990 feet. (1) At our 49% attributable interest. (2) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
(1) At our 49% attributable interest. (2) As used here and elsewhere in this report, this is a Non-GAAP financial performance measure.
For full year 2022, cash cost and AISC per GEO sold were $1,020 and $1,465, respectively compared to $1,108 and $1,461 for full year 2021. The decrease in cash cost per GEO sold was driven by mining and milling efficiency gains in 2022. AISC was similar year over year.
Cash cost and AISC per GEO sold were $1,565 and $1,891 for full year 2023, respectively, compared to $1,622 and $1,989 for full year 2022, respectively. The year-over-year decrease in AISC per GEO sold was driven by improved mine contractor productivity, which directly increased GEOs sold.
Estimates regarding mine development capitalization costs involve the determination of proven and probable reserves. Impairment of Long-lived Assets: The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.
Impairment of Long-lived Assets: The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Once it is determined that impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its fair value.
Residual leaching costs for the year ended December 31, 2022 were $0.7 million compared to $9.3 million for the year ended in 2021.
The El Gallo mine results are excluded from this reconciliation for 2023, 2022 and 2021 as the economics of residual leaching operations are measured by incremental revenue exceeding incremental costs. Residual leaching costs for the year ended December 31, 2023, were $nil million compared to $0.7 million in 2022 and $9.3 million in 2021.
See “Non-GAAP Financial Performance Measures” beginning on page 70. ​ 57 Table of Contents SELECTED CONSOLIDATED FINANCIAL AND OPERATING RESULTS ​ The following tables present selected financial and operating results of our company for the three months ended December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021, and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 2020 ​ ​ (in thousands, except per share) Revenue from gold and silver sales (1) ​ $ 28,240 ​ $ 34,966 ​ $ 110,417 ​ $ 136,541 ​ $ 104,789 Production costs applicable to sales ​ $ (20,321) ​ $ (33,742) ​ $ (91,260) ​ $ (119,223) ​ $ (108,827) Loss before income and mining taxes ​ $ (34,937) ​ $ (24,465) ​ $ (80,288) ​ $ (64,199) ​ $ (153,715) Net loss ​ $ (37,364) ​ $ (20,856) ​ $ (81,076) ​ $ (56,712) ​ $ (152,325) Net loss per share ​ $ (0.79) ​ $ (0.46) ​ $ (1.71) ​ $ (1.25) ​ $ (3.78) Cash used in operating activities ​ $ (8,057) ​ $ (1,147) ​ $ (58,609) ​ $ (20,223) ​ $ (27,873) Cash additions to mineral property interests and plant and equipment ​ $ (7,047) ​ $ (6,405) ​ $ (24,187) ​ $ (34,888) ​ $ (13,373) (1) Excludes revenue from the San José mine, which is accounted for under the equity method. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ 2022 2021 2022 2021 2020 ​ ​ (in thousands, except per ounce) Produced - gold equivalent ounces (1) ​ ​ 37.3 ​ ​ 40.2 ​ ​ 133.3 ​ ​ 154.4 ​ ​ 114.8 100% owned operations ​ ​ 17.9 ​ ​ 20.0 ​ ​ 64.2 ​ ​ 77.6 ​ ​ 60.3 San José mine (49% attributable) ​ ​ 19.4 ​ ​ 20.2 ​ ​ 69.1 ​ ​ 76.8 ​ ​ 54.5 Sold - gold equivalent ounces (1) ​ ​ 36.7 ​ ​ 40.2 ​ ​ 132.2 ​ ​ 153.4 ​ ​ 115.6 100% owned operations ​ ​ 17.4 ​ ​ 19.9 ​ ​ 63.8 ​ ​ 77.3 ​ ​ 60.7 San José mine (49% attributable) ​ ​ 19.3 ​ ​ 20.3 ​ ​ 68.4 ​ ​ 76.1 ​ ​ 54.9 Average realized price ($/GEO) (2)(3) ​ $ 1,674 ​ $ 1,806 ​ $ 1,788 ​ $ 1,803 ​ $ 1,771 P.M.
See “Non-GAAP Financial Performance Measures” beginning on page 76. ​ SELECTED CONSOLIDATED FINANCIAL AND OPERATING RESULTS ​ The following tables present selected financial and operating results of our company for the three months ended December 31, 2023, and 2022 and for the years ended December 31, 2023, 2022, and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, ​ Year ended December 31, ​ ​ 2023 2022 2023 2022 2021 ​ ​ (in thousands, except per share) Revenue from gold and silver sales (1) ​ $ 58,680 ​ $ 28,240 ​ $ 166,231 ​ $ 110,417 ​ $ 136,541 Production costs applicable to sales (1) ​ $ (39,332) ​ $ (20,321) ​ $ (119,230) ​ $ (91,260) ​ $ (119,223) Gross profit (loss) (1) ​ $ 13,050 ​ $ (288) ​ $ 17,780 ​ $ (544) ​ $ (6,480) Adjusted net income (loss) (2) ​ $ 21,111 ​ $ (8,586) ​ $ (23,047) ​ $ (16,964) ​ $ (43,034) Adjusted net income (loss) per share (2) ​ $ 0.44 ​ $ (0.18) ​ $ (0.48) ​ $ (0.36) ​ $ (0.95) Net income (loss) ​ $ 138,453 ​ $ (37,364) ​ $ 55,299 ​ $ (81,075) ​ $ (56,712) Net income (loss) per share ​ $ 2.89 ​ $ (0.79) ​ $ 1.16 ​ $ (1.71) ​ $ (1.25) Cash gross profit (1) (2) ​ $ 19,493 ​ $ 7,919 ​ $ 47,001 ​ $ 19,157 ​ $ 17,318 Cash from (used) in operating activities ​ $ 16,405 ​ $ (8,057) ​ $ (39,637) ​ $ (56,580) ​ $ (20,063) Cash additions to mineral property interests and plant and equipment ​ $ (7,822) ​ $ (7,047) ​ $ (26,099) ​ $ (24,187) ​ $ (34,888) ​ (1) Excludes revenue from the San José mine, which is accounted for under the equity method.
Advanced-Stage Properties – Fenix Project We announced on December 31, 2020 the results of a feasibility study for the development of our 100%-owned Fenix Project, which includes HLM at the El Gallo mine and the El Gallo Silver deposit.
For full year 2024, we expect to produce between 40,000 to 42,000 GEOs at a cash cost per GEO sold between $1,225 and $1,325 per ounce and an AISC per GEO sold between $1,450 and $1,550 per ounce. ​ Mexico Segment ​ The Mexico segment includes the El Gallo mine and the related advanced-stage Fenix Project, both located in Sinaloa state. ​ Advanced-Stage Properties – Fenix Project ​ We announced on December 31, 2020, 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.
The comparative analysis below compares the operating and financial results of MSC on a 100% basis. 2022 compared to 2021 GEOs produced decreased by 4% in Q4/22 compared to Q4/21, driven by lower gold and silver grades processed as well as lower recoveries.
The comparative analysis below compares the operating and financial results of MSC on a 100% basis. 2023 compared to 2022 On a 100% basis, the San José mine produced 39,093 and 134,027 GEOs in Q4/23 and full year 2023, respectively, compared to 39,600 and 141,100 GEOs produced in Q4/22 and full year 2022, respectively.
Key environmental permits for Phase 1 were received in 2019, including the approval for an in-pit tailings storage facility and process plant construction. An agreement to purchase a second-hand gold processing plant and associated equipment was executed in September 2022 for a purchase price of $2.8 million.
Key environmental permits for Phase 1 were received in 2019, including the approval for an in-pit tailings storage facility and process plant construction. 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.
CONSOLIDATED FINANCIAL REVIEW Year ended December 31, 2022, compared to 2021 Revenue from gold and silver sales in full year 2022 of $110.4 million decreased by 19% compared to full year 2021.
This decrease was primarily driven by lower average gold and silver head grades year over year. CONSOLIDATED OPERATIONS REVIEW Revenue from gold and silver sales: For the year ended December 31, 2023, revenue from 100% owned operations increased to $166.2 million, compared with $110.4 million in 2022.
(4) Average for the quarter or year as presented. ​ CONSOLIDATED PERFORMANCE For the year ended December 31, 2022, we reported a net loss of $81.1 million (or $1.71 per share) compared to a net loss of $56.7 million (or $1.25 per share) for the year ended December 31, 2021.
See “Non-GAAP Financial Performance Measures” for a reconciliation to gross profit (loss), which we consider to be the nearest GAAP measure beginning on page 76. ​ For the year ended December 31, 2023, we reported a net income of $55.3 million (or $1.16 per share) compared to a net loss of $81.1 million (or $1.71 per share) for the year ended December 31, 2022.
Cash cost and AISC per GEO sold were $1,622 and $1,989 for full year 2022 respectively compared to $1,687 and $1,753 for full year 2021 respectively. The year-over-year decrease in cash costs was primarily a result of reduced contract mining costs.
For full year 2022, cash costs (2) and AISC (2) per GEO sold for the Gold Bar mine were $1,622 and $1,989, respectively. 60 Table of Contents ● Cash costs (2) and AISC (2) per GEO sold for MSC for full year 2023 were $1,393 and $1,820, respectively, compared to full year 2023 guidance of $1,250 and $1,550, respectively.
Los Azule s, San Juan, Argentina The Los Azules project is one of the world’s largest undeveloped open-pit copper porphyry deposits and is located in the Province of San Juan, Argentina. The total indicated and inferred resources were estimated at 6.9 and 13.1 billion lbs. of copper, respectively, as defined in our 2017 PEA.
Currently, McEwen Mining owns 47.7% of McEwen Copper while Stellantis and Nuton own 19.4% and 14.5%, respectively. 72 Table of Contents Los Azule s, San Juan, Argentina The Los Azules project is one of the world’s largest undeveloped open-pit copper porphyry copper deposits and is located in the province of San Juan, Argentina.
(“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. On August 23, 2021, McEwen Copper successfully closed the first tranche of the proposed $81.9 million private placement (the “Offering”), with a $40.0 million investment by Robert McEwen, Chairman and Chief Owner.
We own a 47.7% interest in McEwen Copper, which owns a 100% interest in the Los Azules copper project in San Juan, Argentina, and a 100% interest in the Elder Creek copper exploration project in Nevada, USA.
This decrease was driven by lower sales of 13,478 GEOs from our 100% owned mines in 2022 compared to 2021 as well as a slightly lower average realized price of $1,788 per GEO or a $15 per GEO decrease compared to 2021.
This 51% increase was driven by year-over-year production improvements at both of our 100% owned operations totaling 88,699 GEOs sold as well as an increase in average realized gold prices. Our average realized price in 2023 was $1,927 per GEO, compared with $1,788 per GEO in 2022.
Revenue from gold and silver sales was $47.9 million for the 61 Table of Contents full year 2022 compared to $79.2 million for the full year 2021, with the decrease driven by both lower volumes sold and lower gold prices. Production costs applicable to sales were $8.7 million in Q4/22 compared to $20.6 million in Q4/21.
Production costs applicable to sales were $25.9 million in Q4/23 compared to $8.7 million in Q4/22. The increase was driven primarily by higher GEOs sold as described above. Production costs applicable to sales were $67.3 million for full year 2023, compared to $43.5 million for full year 2022.
During full year 2022, we incurred $11.4 million in exploration expenses, completing 181,148 feet of drilling over 139 holes (125 holes at the Stock property and 14 at Grey Fox).
During full year 2023, we incurred $13.6 million in exploration expenses, completing 223,674 feet of drilling at Stock and 35,360 feet of drilling at Grey Fox. At the Stock property, drilling activities focused on expanding known mineralization to the east of Stock East, infill drilling at Stock West, and deep drilling below the historic Stock mine resource.
Advanced projects of $66.7 million in full year 2022 increased by $54.3 million compared to full year 2021. We spent $61.2 million at our Los Azules project in Argentina, continuing to advance our project to feasibility. Expenditures included in advanced projects also related to the construction of the Gold Bar South haul road in Nevada.
Advanced project costs : Advanced project costs of $82.6 million in full year 2023 increased by $15.9 million compared to full year 2022. Prior to our deconsolidation, the Company spent $80.0 million at the Los Azules project in Argentina primarily to advance to feasibility. The remaining $6.3 million was related to the further advancement of Fenix Project in Mexico.
COMMITMENTS AND CONTINGENCIES As of December 31, 2022, we have the following consolidated contractual obligations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments due by period ​ ​ 2023 ​ 2024 ​ 2025 ​ 2026 ​ Thereafter ​ Total Mining and surface rights ​ $ 1,555 ​ $ 1,401 ​ $ 607 ​ $ 600 ​ $ 52 $ 4,215 Exploration - Los Azules ​ ​ 29,428 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ 29,428 Exploration - Other ​ ​ 13,155 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ 13,155 Reclamation costs (1) ​ ​ 12,815 ​ ​ 1,400 ​ ​ 1,744 ​ ​ 3,068 ​ ​ 32,821 ​ 51,849 Long-term debt ​ ​ 14,712 ​ ​ 26,833 ​ ​ 16,337 ​ ​ — ​ ​ — ​ 57,882 Lease obligations ​ ​ 1,572 ​ ​ 689 ​ ​ 272 ​ ​ 147 ​ ​ — ​ 2,680 Total ​ $ 73,237 ​ $ 30,324 ​ $ 18,960 ​ $ 3,815 ​ $ 32,873 $ 159,209 (1) Amounts presented represent the undiscounted uninflated future payments.
COMMITMENTS AND CONTINGENCIES As of December 31, 2023, we have the following consolidated contractual obligations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payments due by period Contractual Obligations 2024 2025 2026 2027 Thereafter Total ​ (in thousands) Mining and surface rights ​ $ 2,082 ​ $ 1,002 ​ $ 673 ​ $ 660 ​ $ 35 ​ $ 4,452 Reclamation costs (1) ​ ​ 9,608 ​ ​ 3,152 ​ ​ 4,220 ​ ​ 8,473 ​ ​ 27,002 ​ ​ 52,455 Other plant and equipment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Long-term debt ​ ​ — ​ ​ 12,000 ​ ​ 28,000 ​ ​ — ​ ​ — ​ ​ 40,000 Lease obligations ​ ​ 1,073 ​ ​ 330 ​ ​ 207 ​ ​ — ​ ​ — ​ ​ 1,610 Total ​ $ 12,763 ​ $ 16,484 ​ $ 33,100 ​ $ 9,133 ​ $ 27,037 ​ $ 98,517 ​ (1) Amounts presented represent the undiscounted uninflated future payments.
The transaction consisted of: 1. Private placement of 2,850,000 common shares, and 2. Purchase of 1,250,000 common shares indirectly owned by McEwen Mining in a secondary sale. The proceeds of the private placement will be used to advance development of the Los Azules copper project in San Juan, Argentina, and for general corporate purposes.
The transaction consisted of a private placement of 2,850,000 common shares of McEwen Copper, and a sale of 1,250,000 common shares indirectly owned by McEwen Mining. ● On March 15, 2023, we closed a $30.0 million investment by Nuton LLC, a Rio Tinto Venture (“Nuton”) and existing McEwen Copper shareholder to acquire shares of McEwen Copper in a two-part transaction.
Cash cost and AISC per GEO sold were $1,137 and $1,606 in Q4/22, respectively, compared to $1,122 and $1,760 in Q4/21, respectively. Cash cost per GEO sold in Q4/22 was consistent with Q4/21. The decrease in AISC per GEO sold in Q4/22 was primarily due to lower capitalized underground development associated with the mine plan.
This was primarily due to Argentina’s inflation, combined with an official fixed foreign exchange conversion rate. ​ Cash cost and AISC per GEO sold were $1,155 and $1,499 in Q4/23, respectively, compared to $1,321 and $1,701 in Q4/22, respectively.
Encouraging intercepts were drilled at the Fox Complex during Q4/22 including SM22-110, which returned an intercept of 6.5 g/t gold over 34.4 feet true width and is located just southwest of the proposed ramp system to Stock West, and S22-255W1, which returned 4 g/t gold over 32.8 feet true width and is located approximately 200 feet down plunge of the current Stock West resource.
During Q4/23, encouraging results were received for shallow drilling in proximity to the proposed ramp system to Stock West showing intercepts of 6.2 g/t gold over 74.5 feet true width located in the Stock West Portal Zone, and 4.0 g/t gold 69 Table of Contents over 48.2 feet true width in the Stock West shallow plunge zone.
We produced 37,279 GEOs in Q4/22, including 19,417 attributable GEOs from the San José mine (1) , bringing our full year 2022 production to 133,300 GEOs, including 69,129 GEOs from the San José mine (1) .
This compares to 36,700 GEOs sold in Q4/22, including 19,300 attributable GEOs from the San Jose mine, bringing our total sales in the full year 2022 to 132,225 GEOs, including 68,400 GEOs from the San Jose mine. ● We continued to improve and sustain record throughput at the Fox Complex in 2023.
A higher proportion of operational costs were in respect of development capital during 2022 in respect of managing carbonaceous ore. Cash cost and AISC per GEO sold were $1,083 and $1,395 in Q4/22 respectively compared to $2,038 and $2,104 in Q4/21 respectively.
Cash cost and AISC per GEO sold were $1,345 and $1,506 in Q4/23, respectively, compared to $1,083 and $1,395 in Q4/22, respectively. The increase in cash costs was driven by higher year-over-year mining costs as a result of lower mining activity in Q4/22 while Gold Bar onboarded our current mining contractor.
In addition, our revenues decreased by $26.1 million, driven by a 13.8% decrease in GEOs sold and a slightly lower average realized price compared to 2021.
This increase was primarily driven by an accounting gain recognized on the deconsolidation of McEwen Copper of $222.2 million. In addition, our revenues increased by $55.8 million, driven by a 14.2% increase in GEOs sold and a higher average realized gold price compared to 2022.
AISC per GEO for full year 2022 increased by 7% compared to full year 2021. Changes in AISC per GEO resulted largely from the same issues described in changes in cash costs per GEO, discussed above.
For full year 2023, cash cost and AISC per GEO sold were $1,157 and $1,351, respectively, compared to $1,020 and $1,465 for full year 2022. The increase in cash costs year-over-year was driven by an increase in contractor crushing costs described above and partially offset by increased gold sales.
This is discussed further in Note 12 to the Consolidated Financial Statements . Other income was $22.9 million for 2022 compared to $6.3 million for 2021. Other income in 2022 includes realized gains from our Blue Chip Swap transactions . This is discussed further in Notes 4 and 5 to the Consolidated Financial Statements.
Other expense: Other expenses of $30.0 million in full year 2023 decreased from income of $22.9 million in full year 2022 due to devaluation of cash holdings denominated in ARS against USD. This is discussed further in Note 4 to the Consolidated Financial Statements.
No development decision has been made on the Fenix Project as we evaluate these alternatives. ​ 65 Table of Contents MSC Segment , Argentina The MSC segment is comprised of a 49% interest in the San José mine, located in Santa Cruz, Argentina.
This will allow us to maximize the utilization of the acquired equipment, with the mills being the first to be mobilized and refurbished, now ready for installation. ​ The decision to proceed with the project remains under review. ​ 70 Table of Contents MSC Segment , Argentina ​ The MSC segment is comprised of a 49% interest in the San José mine, located in Santa Cruz, Argentina.
Removed
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Introduction This section of this Annual Report on Form 10-K generally discusses fiscal 2022 and 2021 items including our results of operations and financial condition, and year-to-year comparisons between 2022 and 2021 with a particular emphasis on 2022.
Added
(“Stellantis”) to acquire shares of McEwen Copper in a two-part transaction.
Removed
In each case, we discuss factors that we believe have affected our operating results and financial condition and may do so in the future.
Added
The transaction consisted of a private placement of 350,000 common shares of McEwen Copper, and a sale of 1,250,000 common shares indirectly owned by McEwen Mining. ● On May 23, 2023, we repaid $25.0 million of senior secured debt payable to Sprott Private Resource Lending II (Collector), LP.
Removed
Beginning with Q2/19, we adopted a variable silver to gold ratio for reporting that approximates the average price during each fiscal quarter. ​ ​ ​ ​ 53 Table of Contents ​ Response to the COVID-19 Pandemic We are continuing to closely monitor and respond, as possible, to the ongoing COVID-19 pandemic.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeInflationary Risk Argentina has experienced a significant amount of inflation over the last ten years and has now been classified as a highly inflationary economy. ASC 830 defines a hyperinflationary economy as one where the cumulative inflation rate exceeds 100% over the last three years which precede the reporting period.
Biggest changeASC 830 defines a hyperinflationary economy as one where the cumulative inflation rate exceeds 100% over the last three years which precede the reporting period. In this scenario, ASC 830 requires companies to change the functional currency of its foreign subsidiaries operating in a highly inflationary economy, to match the company’s reporting currency.
Further, our participation in the joint venture with Hochschild for the 49% interest held at MSC creates additional risks because, among other things, we do not exercise decision-making power over the day-to-day activities at MSC; however, implications from our partner’s decisions may result in us having to provide additional funding to MSC or in a decrease in our percentage of ownership.
Furthermore, our participation in the joint venture with Hochschild for the 49% interest held at MSC creates additional risks because, among other things, we do not exercise decision-making power over the day-to-day activities at MSC; however, implications from our partner’s decisions may result in us having to provide additional funding to MSC or in a decrease in our percentage of ownership.
As of December 31, 2022, we do not believe we have any significant credit exposure associated with precious metals and our doré sales agreements . ​ In Mexico, we are exposed to credit loss regarding our VAT taxes receivable if the Mexican tax authorities are unable or unwilling to make payments in accordance with our monthly filings.
As of December 31, 2023, we do not believe we have any significant credit exposure associated with precious metals and our doré sales agreements . ​ In Mexico, we are exposed to credit loss regarding our VAT taxes receivable if the Mexican tax authorities are unable or unwilling to make payments in accordance with our monthly filings.
Although we transact most of our business in U.S. dollars, some expenses, labor, operating supplies and property and equipment are denominated in Canadian dollars, Mexican pesos or Argentine pesos. Since 2008, the Argentine peso has been steadily devaluing against the U.S. dollar by 10% to 53% on an annual basis.
Although we transact most of our business in U.S. dollars, some expenses, labor, operating supplies and property and equipment are denominated in Canadian dollars, Mexican pesos or Argentine pesos. Since 2008, the Argentine peso has been steadily devaluing against the U.S. dollar by 10% to 73% on an annual basis.
We also hold negligible portions of our cash reserves in Mexican pesos, with effect of a 1% change in this currency resulting in gains/losses immaterial for disclosure purposes. Further, we are also subject to foreign currency risk on the fluctuation of the Mexican peso on our VAT receivable balance.
We also hold negligible portions of our cash reserves in Mexican and Argentine pesos, with effect of a 1% change in this currency resulting in gains/losses immaterial for disclosure purposes. Further, we are also subject to foreign currency risk on the fluctuation of the Mexican peso on our VAT receivable balance.
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 Canadian and American financial institutions and refineries, should these customers be unable to make payment in accordance with the terms of the agreements.
We do not hedge any of our sales and are therefore subject to all changes in commodity prices. 87 Table of Contents Credit Risk We may be exposed to credit loss through our precious metals and doré sales agreements with Canadian and American financial institutions and refineries, should these customers be unable to make payment in accordance with the terms of the agreements.
Changes in the price of gold and silver can also affect the provisionally priced sales that we make under agreements with refiners and other purchasers of our products. At December 31, 2022, we had no gold or silver sales subject to final pricing.
Changes in the price of gold and silver can also affect the provisionally priced sales that we make under agreements with refiners and other purchasers of our products. As at December 31, 2023, we had no gold or silver sales subject to final pricing.
However, at this time we are uncertain when, if ever, our Mexican operations will generate sufficient taxable operating profits to offset this receivable against taxes payable. We continue to face risk on the collection of our VAT receivables, which amount to $0.6 million as at December 31, 2022.
However, at this time we are uncertain when, if ever, our Mexican operations will generate sufficient taxable operating profits to offset this receivable against taxes payable. We continue to face risk on the collection of our VAT receivables, which amount to $0.9 million as at December 31, 2023.
The following chart illustrates changes in the value of these currencies compared to the U.S. dollar in the twelve months ended December 31, 2022: ​ ​ The value of cash and cash equivalents denominated in foreign currencies also fluctuates with changes in currency exchange rates.
The following chart illustrates changes in the value of these currencies compared to the U.S. dollar in the twelve months ended December 31, 2023: ​ ​ 86 Table of Contents The value of cash and cash equivalents denominated in foreign currencies also fluctuates with changes in currency exchange rates.
In Nevada and Ontario, Canada we are required to provide security to cover our projected reclamation costs. As at December 31, 2022, we have surety bonds of $39.4 million in place to satisfy bonding requirements for this purpose.
In Nevada and Ontario, Canada we are required to provide security to cover our projected reclamation costs. As at December 31, 2023, we have surety bonds of $42.5 million in place to satisfy bonding requirements for this purpose.
As of December 31, 2022, our VAT receivable balance was MEX$19.95 million, equivalent to approximately $0.6 million, for which a 1% change in the Mexican peso would have resulted in a gain/loss of less than $0.01 million in the Consolidated Statements of Operations and Comprehensive (Loss) Income .
As of December 31, 2023, our VAT receivable balance was MEX$14.9 million, equivalent to approximately $0.9 million, for which a 1% change in the Mexican peso would have resulted in a gain/loss of less than $0.1 million in the Consolidated Statements of Operations and Comprehensive (Loss) Income .
Based on our revenues from gold and silver sales of $110.4 million for the year ended December 31, 2022, with all other variables held constant, a 10% change in the price of gold and silver would have had resulted in an additional income or loss before income and mining taxes of approximately $11.0 million.
Based on our revenues from gold and silver sales of $166.2 million for the year ended December 31, 2023, with all other variables held constant, a 10% change in the price of gold and silver would have had resulted in an additional income or loss before income and mining taxes of approximately $16.6 million.
MSC holds a portion of its local cash balances in Argentine pesos and is therefore exposed to the effects of this continued devaluation and also the risk that there may be a sudden severe devaluation of the Argentine peso.
MSC holds a portion of its local cash balances in Argentine pesos and is therefore exposed to the effects of this continued devaluation and also the risk that there may be a sudden severe devaluation of the Argentine peso. A severe devaluation could result in material foreign exchange losses as reported in U.S. dollars.
Movements in the price of our common stock 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.
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. We have invested and may continue to invest in shares of common stock of other entities in the mining sector.
Although we do not believe we have any significant credit exposure associated with these bonds, we are exposed to the risk 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. 81 Table of Contents Interest rate risk Our outstanding debt consists of various equipment leases, a revolving gold prepayment facility, and the senior secured credit facility.
Although we do not believe we have any significant credit exposure associated with these bonds, we are exposed to the risk 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.
We hold minor portions of our cash reserves in non-U.S. dollar currencies. Based on our Canadian cash balance of $1.00 million (C$1.37 million) at December 31, 2022, a 1% change in the Canadian dollar would result in a gain/loss of $0.01 million in the Consolidated Statements of Operations and Comprehensive (Loss) Income .
Based on our Canadian cash balance of $13.4 million (C$17.8 million) as at December 31, 2023, a 1% change in the Canadian dollar would result in a gain/loss of $0.1 million in the Consolidated Statements of Operations and Comprehensive (Loss) Income .
As such, we do not expect the classification of Argentina’s economy as a highly inflationary economy, to change our financial reporting methodology. ​ ​ 82 Table of Contents
In our case, the functional currency of all our Argentine subsidiaries has always been our reporting currency, the U.S. dollar. As such, we do not expect the classification of Argentina’s economy as a highly inflationary economy, to change our financial reporting methodology. ​ ​ 88 Table of Contents
During 2022, the Mexican peso appreciated 12% against the US dollar, compared to a devaluation of 3% and 5% in 2021 and 2020 respectively. 79 Table of Contents During 2022, the Canadian dollar devalued by 6% against the U.S. dollar, compared to a devaluation of 0.4% in 2021 and an increase in value of 2% in 2020.
During 2023, the Canadian dollar appreciated by 1.3% against the U.S. dollar, compared to a devaluation of 6% and 0.4% in 2022 and 2021, respectively.
As noted in the graph below, during 2022 the Argentine peso devalued 41% compared to devaluations of 18% and 29% in 2021 and 2020 respectively.
As noted in the graph below, during 2023 the Argentine peso devalued 73% compared to devaluations of 41% and 18% in 2022 and 2021 respectively. During 2023, the Mexican peso appreciated 14% against the US dollar, compared to an appreciation of 12% in 2022 and a devaluation of 3% in 2021.
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. Commodity Price Risk We produce and sell gold and silver, therefore changes in the market price of gold and silver could significantly affect our results of operations and cash flows in the future.
Commodity Price Risk We produce and sell gold and silver, therefore changes in the market price of gold and silver could significantly affect our results of operations and cash flows in the future. Change in the price of gold and silver could materially affect our revenues.
A severe devaluation could result in material foreign exchange losses as reported in U.S. dollars. 80 Table of Contents Equity Price Risk We have in the past sought and will likely in the future seek to acquire additional funding by sale of common stock or other equity securities.
Equity Price Risk We have in the past sought and will likely in the future seek to acquire additional funding by sale of common stock or other equity securities. Movements in the price of our common stock have been volatile in the past and may also be volatile in the future.
The leases and senior secured facility are at fixed rates; the prepayment facility is subject to variable rates. Exposure to variable rates is very limited, (less than 30 days) and as the debt is at fixed rates, we consider our interest rate risk exposure to be insignificant at this time.
Exposure to variable rates is very limited, (less than 30 days) and as the debt is at fixed rates, we consider our interest rate risk exposure to be insignificant at this time. Inflationary Risk Argentina has experienced a significant amount of inflation over the last ten years and has now been classified as a highly inflationary economy.
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.
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.
Removed
Based on our Argentine peso balance of $2.14 million (ARG$379.77 million) at December 31, 2022, a 1% change in the Argentine peso would result in a gain/loss of $0.02 million in the Consolidated Statements of Operations and Comprehensive (Loss) Income .
Added
As of December 31, 2023, 95% of our foreign currency holdings was held in Canadian dollars, representing 58% of our total treasury. We held minor positions in Mexican and Argentine Pesos.
Removed
Change in the price of gold and silver could materially affect our revenues.
Added
McEwen Copper Inc. holds a large portion of its local cash balance in Argentine pesos and is exposed to the effects of the significant, and at times sudden, devaluation of the currency.
Removed
In this scenario, ASC 830 requires companies to change the functional currency of its foreign subsidiaries operating in a highly inflationary economy, to match the company’s reporting currency. In our case, the functional currency of all our Argentine subsidiaries has always been our reporting currency, the U.S. dollar.
Added
McEwen Copper has purchased $33.9 million in equity securities trading on the Bolsa de Comercio de Buenos Aires exchange as Argentinian depositary receipts, known as CEDEARs, and other short term investment instruments to partially offset the impact of devaluation of the Argentine peso. A severe devaluation could result in material foreign exchange losses as reported in U.S. dollars.
Added
Interest rate risk Our outstanding debt consists of various equipment leases, a revolving gold prepayment facility, and the senior secured credit facility. The leases and senior secured facility are at fixed rates; the prepayment facility is subject to variable rates.

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