8-K: McEwen Mining Shareholders Approve Name Change to McEwen Inc., Company Highlights Strong Operational Performance and Copper Project Advancement

McEwen Mining Inc. shareholders have approved the company's name change to McEwen Inc., effective July 7, 2025, as the company reports strong Q1 financial results, reaffirms 2025 production guidance, and details significant progress on its Los Azules copper project.

Summary

• Shareholders of McEwen Mining Inc. approved the change of the company's name to McEwen Inc., effective July 7, 2025, at their annual meeting on June 19, 2025.
• The annual meeting saw 51.81% of outstanding shares voted, with shareholders electing eleven directors, approving executive compensation on an advisory basis, and ratifying Ernst & Young LLP as the independent auditor for 2025.
• The company reported preliminary estimated cash of $51 million and working capital of $45 million as of May 31, 2025, with total debt at $130 million, including $110 million in convertible debt closed in February 2025.
• Q1 2025 gross profit increased to $10 million from $6 million in Q1 2024, and Adjusted EBITDA rose to $9 million ($0.16/share) from $6 million ($0.13/share) in Q1 2024.
• Consolidated Q1 2025 production was 24,132 gold equivalent ounces (GEOs), on track to meet the full-year guidance of 120,000-140,000 GEOs.
• However, consolidated Q1 2025 cash costs were $2,002/GEO and All-in Sustaining Costs (AISC) were $2,652/GEO, both higher than the full-year guidance ranges of $1,550-$1,750/GEO and $1,800-$2,000/GEO, respectively.
• The Los Azules copper project is steadily advancing, with the Environmental Impact Assessment (EIA) for construction and operations approved in December 2024, and an application submitted to Argentina's Large Investment Incentive Regime (RIGI) in February 2025.
• McEwen Copper has completed $453 million in private financings, including $35 million from Nuton (Rio Tinto) at $30/share, valuing McEwen Copper at $984 million (100% basis) and McEwen Mining's attributable value at $8.47/share.
• Exploration efforts continue to extend mine life and build resources, with Gold Bar adding 55,700 oz Gold in 2024 at a discovery cost of US$70/oz, and the Fox Complex's Froome mine life extended to Q2 2026 due to new high-grade mineralization.
• The company aims to reach 100,000 ounces of annual gold production by 2030 from its Timmins operations (Fox Complex, Stock, Grey Fox).

Sentiment

Score: 8

Explanation: The overall sentiment is highly positive, driven by the strategic name change, strong progress on the world-class Los Azules copper project, significant exploration success extending mine lives and increasing resources, and a confident financial outlook. While Q1 costs were higher than guidance, management expressed confidence in meeting full-year targets, and the long-term growth prospects, particularly in copper, are very strong.

Positives

• Shareholders approved the company's name change to McEwen Inc., signaling a strategic rebranding.
• All eleven nominated directors were re-elected, indicating strong shareholder confidence in the current board.
• Q1 2025 gross profit increased to $10 million from $6 million in Q1 2024, demonstrating improved operational profitability.
• Adjusted EBITDA for Q1 2025 rose to $9 million ($0.16/share) from $6 million ($0.13/share) in Q1 2024.
• Consolidated Q1 2025 production of 24,132 GEOs is on track to meet the full-year guidance of 120,000-140,000 GEOs.
• Gold Bar's Q1 2025 cash cost of $1,146/GEO was below its full-year guidance range of $1,500-$1,700/GEO.
• The Los Azules copper project achieved a major regulatory milestone with the Environmental Impact Assessment (EIA) approval in December 2024.
• McEwen Copper successfully raised $56 million in private placements, including $35 million from Nuton (Rio Tinto), valuing McEwen Copper at $984 million.
• The Los Azules project is positioned to be Argentina's first industrial-scale copper cathode producer, with a low environmental footprint, aiming for carbon neutrality by 2038 and 100% renewable power.
• Recent exploration at Los Azules suggests potential for significant expansion, with 7 new exploration targets identified.
• The Froome mine life at the Fox Complex has been extended to Q2 2026 due to new better-grade mineralization.
• The Stock Project is progressing towards commercial production in 2026, with anticipated production of >50 Koz Gold/year and a projected mine life of 6-8 years.
• The Grey Fox project, a 2 million oz Gold deposit, saw a 32% increase in Indicated Resources and a 95% increase in Inferred Resources in its Year End 2024 update, with a low discovery cost of US$15/oz Gold.
• The company maintains an excellent safety performance with no Lost Time Injuries at all operations and exploration projects, and zero environmental reportable incidents.
• Management expects significant improvements in Adjusted EBITDA based on the growth profile of Gold Bar and the Fox Complex, assuming a gold price of $3,350/oz.

Negatives

• Q1 2025 cash costs and AISC for the Fox Complex ($2,061/GEO cash cost, $2,504/GEO AISC) were higher than their respective full-year guidance ranges ($1,600-$1,800/GEO cash cost, $1,700-$1,900/GEO AISC).
• Q1 2025 AISC for Gold Bar ($2,197/GEO) was higher than its full-year guidance range ($1,700-$1,900/GEO).
• Q1 2025 cash costs and AISC for San José ($2,575/GEO cash cost, $3,047/GEO AISC) were significantly higher than their respective full-year guidance ranges ($1,600-$1,800/GEO cash cost, $1,900-$2,100/GEO AISC), attributed to inflationary pressure on local Argentine costs.
• Consolidated Q1 2025 cash costs ($2,002/GEO) and AISC ($2,652/GEO) were higher than the full-year guidance ranges ($1,550-$1,750/GEO cash cost, $1,800-$2,000/GEO AISC).
• Starting gold and silver production in Mexico at the El Gallo project is challenging due to the permitting pace and opposition to open pit mining.

Risks

• Fluctuations in the market price of precious metals (gold, silver) and copper.
• General mining industry risks, including operational challenges and unforeseen geological conditions.
• Political, economic, social, and security risks associated with foreign operations, particularly in Argentina and Mexico.
• The ability to receive or receive in a timely manner permits or other approvals required for operations and development projects.
• Risks associated with the construction of mining operations and commencement of production, and the projected costs thereof.
• Risks related to litigation.
• The state of the capital markets and the ability to secure additional financing for projects like Los Azules.
• Environmental risks and hazards, and compliance with environmental regulations.
• Uncertainty as to the calculation of mineral resources and reserves.
• Risk of delisting from a public exchange.
• Inflationary pressures on local operating costs, as experienced at the San José mine in Argentina.

Future Outlook

McEwen Mining expects to meet its consolidated production guidance of 120,000-140,000 gold equivalent ounces for 2025, with management anticipating unit costs to decline and meet full-year cost guidance despite higher Q1 figures. The company projects significant improvements in Adjusted EBITDA and Adjusted EPS based on the growth profile of its Gold Bar and Fox Complex operations, assuming a gold price of $3,350/oz and a stable foreign exchange environment. For McEwen Copper, the Feasibility Study for Los Azules is expected to be completed by the beginning of Q3 2025, followed by the initiation of basic engineering to support a Final Investment Decision. The company plans to intensify strategic investor engagement for a potential IPO of McEwen Copper and progress an ESIA addenda to support multilateral financing. Long-term objectives include extending Gold Bar mining and exploration into the 2030s, bringing Timberline assets into production by 2027, and achieving 100,000 ounces of annual gold production from the Timmins operations (Stock, Grey Fox) by 2030. The Los Azules copper project is targeted to begin production in 2029-2030, aiming for 175,000 tonnes/year of copper cathodes and carbon neutrality by 2038.

Management Comments

• "Currently maintaining production and cost guidance at our operations as follows: Fox Complex: Mining production improved during Q2 compared to Q1 2025, and we remain on target to meet production guidance through the remainder of the year. Unit costs declined accordingly and we also expect to meet cost guidance for 2025."
• "Gold Bar: Capital stripping finalized at Pick and is on track to meet production and cost guidance for 2025."
• "San José: While on track to meet production guidance, we continue to monitor inflationary pressure on local Argentine costs."
• "Our People Are the Key to Our Success."
• "Long Term Objective: Reaching 100,000 ounces annual gold production by 2030."
• "We hope to be able to start producing a small amount of Gold and Silver in Mexico at the same time as reclamation work continues but this will be challenging due to the permitting pace and the opposition to open pit mining."
• "Growth Self-Funded Through Operating Free Cash Flow."
• "Self Financing Remains Viable in Face of Gold Price Volatility."
• "Adjusted EBITDA removes the investment impact of McEwen Copper on our operational results, which we currently expense under US GAAP."

Industry Context

The document highlights several key industry trends. It notes that commodities, particularly gold, are currently undervalued relative to equities, with the S&P GS Commodity Index at a 55-year low compared to the S&P 500. The mining industry's aggregate market capitalization is also at a historical low (2%) relative to total global stocks, suggesting potential for significant re-rating. Copper is presented as a prime investment preference, with demand rising due to the energy transition (EVs, AI data centers, power grids) and a projected need for 900,000 tonnes of new copper capacity annually. Permitting delays and geopolitical instability are making new mine development challenging, leading to supply security concerns and protectionism in North America and Europe. Argentina is identified as an emerging Tier 1 mining jurisdiction with strong copper potential, attracting significant foreign investment and implementing favorable regimes like RIGI. The divergence between gold prices and gold equities (GDX, GDXJ ETFs) is noted, with gold equities poised to outperform, suggesting a potential catch-up trade.

Comparison to Industry Standards

• McEwen Mining's Enterprise Value (EV) to Gold Equivalent Ounces (GEO) ratio is US$4,398/GEO, which is significantly lower than the peer group average EV/GEO of US$7,195/GEO (peers include Jaguar Mining, Silvercorp, Fortitude, Endeavour Silver), suggesting the company may be undervalued relative to its peers.
• The Los Azules copper project is positioned to become Argentina's first industrial-scale copper cathode producer, a significant achievement in a country emerging as a Tier 1 mining jurisdiction.
• Los Azules' projected annual nominal production of 175,000 tonnes/year (385M lb/year) positions it as a substantial copper project globally, comparable in scale to major copper mines.
• The project's commitment to being carbon neutral by 2038, powered 100% by solar, hydro, and wind, and having among the lowest water consumption in the region, sets a high standard for environmental performance within the mining industry.
• The company's safety record of 5.3 years without Lost Time Injuries at Gold Bar and over 1.79 million work hours logged since July 2023 with no Lost Time Incidents or Environmental Events at McEwen Copper demonstrates a strong commitment to safety and environmental stewardship, exceeding typical industry benchmarks.

Corporate Governance

Stakeholder Impact

• **Shareholders:** The name change and strong performance of McEwen Copper, along with positive exploration results and future growth plans, could enhance shareholder value and confidence. The re-election of the board indicates stability and alignment with shareholder interests. The potential IPO of McEwen Copper could unlock further value.
• **Employees:** The company's emphasis on excellent safety performance and a vision for a 'positive & highly desirable workplace' suggests a focus on employee well-being and retention.
• **Customers:** The Los Azules project's aim to produce high-purity copper cathodes (99.99%) will provide a reliable and high-quality supply for industrial applications, supporting the global energy transition.
• **Suppliers:** The development of new projects like Los Azules, Stock, and Grey Fox will create demand for equipment, services, and materials, benefiting suppliers.
• **Creditors:** The company's improved liquidity, reduced debt, and self-funding growth strategy enhance its financial stability and ability to meet obligations, positively impacting creditors.
• **Local Communities:** The Los Azules project's strong community support (97% acceptance, 94% trust), commitment to low environmental footprint, and alignment with IFC Performance Standards indicate a positive impact on local communities through responsible development and engagement.

Next Steps

• The company intends to file the Articles of Amendment for the name change with the Secretary of State of Colorado to become effective on July 7, 2025.
• Conforming changes to the Amended and Restated Bylaws will become effective on July 7, 2025, contemporaneously with the name change.
• Mining production at Fox Complex is expected to continue improving in Q2 2025, with unit costs declining to meet full-year guidance.
• Capital stripping at Gold Bar's Pick zone is finalized, and the operation is on track to meet production and cost guidance for 2025.
• The Stock Mine and Mill project will continue ramp access development, with mining planned to start in 2026.
• The Study & Permitting Phase for the Grey Fox Mine has started, with production planned for 2028.
• The company aims to reach 100,000 ounces of annual gold production from its Timmins operations by 2030.
• Gold Bar will continue mining and exploration into 2030, and Gold Bar South will mine all known resources in 2026.
• Work on permitting for Timberline assets will continue, with a goal of production in 2027.
• McEwen Copper expects to complete the Feasibility Study for Los Azules by the beginning of Q3 2025.
• Basic engineering for Los Azules will be initiated to support a Final Investment Decision.
• Strategic investor engagement for McEwen Copper will be intensified in preparation for a potential IPO.
• An ESIA addenda that is IFC performance standard compliant will be progressed to support multilateral, ECA, and DFI financing for Los Azules.
• Exploration drilling at Gold Bar (Nevada projects) will continue with a US$7 million budget and 36,000 meters planned for 2025, focusing on near-mine targets and Timberline Eureka properties.
• The Fox Complex exploration budget is US$10 million for 2025, with 68,500 meters of drilling planned, focusing on high-priority areas like Gibson, Grey Fox South (GFS), and Whiskey Jack.
• A Pre-Feasibility study for Grey Fox is being worked towards to build long-term value.

Key Dates

Recommendation

Keywords

Mining, Copper, Gold, Silver, Exploration, Development, Los Azules, McEwen Copper, McEwen Inc., McEwen Mining, Argentina, Nevada, Canada, SEC Filing, 8-K, Shareholder Meeting, Financial Results, Production Guidance, ESG, Capital Raise, Timmins, Fox Complex, Gold Bar, San José