Precious metals miner McEwen posts Q1 revenue gains, own-funded growth pipeline

The average realised gold sale price was $4792/oz in the quarter – 71% higher than the first quarter of last year.

The group generated a gross profit of $31.5-million in the quarter under review, compared with $10.1-million in the same quarter last year. Notably, net income for the first quarter was $33.4-million, or $0.56 apiece, compared with a net loss of $6.3-million in the prior comparable quarter.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) increased to $44.8-million, or $0.76 apiece, compared with adjusted Ebitda of $8.7-million, or $0.16 apiece, in the first quarter of last year.

GROWTH PIPELINE

McEwen remains on track to increase production to between 250 000 and 300 000 GEOs by 2030, with its 2026 guidance remaining unchanged at between 114000 and 126000 GEOs.

Based on current silver and gold prices, McEwen believes that if mine operations meet guidance, the company can self-fund its future production growth with limited share dilution – this will be a key driver of higher share prices.

In Canada, the company is advancing growth projects to increase production from between 16000 and 19000 GEOs in 2026 to between 105000 and 120000 GEOs by 2030. The Canadian projects are being developed in a phased approach that is focused on initial capital requirements, internal rate of return and the ability to execute successfully while prioritising future growth through continued exploration.

The projects in Canada include Stock and Grey Fox, in Ontario, and Tartan, in Manitoba.

In the US, McEwen forecasts that production will more than double from between 39000 and 43000 GEOs to between 90000 and 110 000 GEOs by 2030, driven by production from Lookout Mountain, Windfall and Trinity Ridge. All three deposits are located within the Gold Bar mine complex.

In Mexico, the company is forecasting 20000 GEOs of production starting in mid-2027 from the El Gallo mine.

In Argentina, McEwen’s San Josê mine is benefitting from a recently completed process plant expansion and higher mining rates. Production attributable to McEwen’s 49% interest in the mine is targeted at between 60000 and 70000 GEOs a year.

McEwen also owns a 46.3% equity stake in McEwen Copper and a 1.25% net smelter return royalty on McEwen Copper’s Los Azules project. The royalty is expected to generate pre-tax earnings of $520-million at higher copper prices (5.80/lb) and $389-million at base case copper prices (4.35/lb) over the 22-year mine life.