Goliath Drills Several Holes Of High-Grade Gold Up To 10.25 g/t Au Over 7.02 Meters Within 5.20 g/t Au Over 15.00 Meters From 281m To 296m Downhole, Surebet Discovery Remains Open, Golddigger Property, Golden Triangle, B.C.
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The November 6, 2025, press release reports McEwen's Q3 2025 financial and operational results. - Production: The company produced 29,662 gold equivalent ounces (GEOs) in Q3. Consolidated production guidance for 2025 was revised to the lower end, now targeting 112,000 to 123,000 GEOs. - Financials: The company reported revenue of $50.5 million, a net loss of $0.5 million (-$0.01 per share), and adjusted EBITDA of $11.8 million. - Costs: All-in sustaining costs (AISC) were extremely high. Gold Bar reported an AISC of $2,852 per GEO, and the Fox Complex reported an AISC of $2,352 per GEO. The company increased its full-year AISC guidance for the Gold Bar mine to $2,400-$2,500 per GEO. - Management Commentary: CEO Rob McEwen acknowledged significant operational challenges leading to production below guidance and higher-than-expected costs, particularly at the Nevada and Timmins operations. He stated that corrective measures are being implemented with positive results expected in Q4. - Project Updates: Progress continues on growth projects, including the Stock Mine (targeting mid-2026 production), El Gallo Phase 1 (mid-2027), a Grey Fox Pre-Feasibility Study (H1 2026), and the acquisition of Canadian Gold Corp.
The Q3 2025 results are materially negative. The report confirms significant operational failures, resulting in a production miss and a severe blowout in costs that erases margins even in a strong gold price environment.
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Operational Miss: Year-to-date production after Q3 is approximately 81,347 GEOs. To meet the low end of the new guidance (112,000 GEOs), the company must produce over 30,600 GEOs in Q4, which is higher than any quarter this year. The CEO's admission of "operational challenges" is a significant red flag. The Q3 conference call transcript reveals a material issue at Gold Bar where a zone planned as ore turned out to be unmineralized, forcing the company to pivot mining plans and treat it as waste. This is a major operational and geological modelling failure, not just a minor sequencing issue.
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Cost Blowout: The AISC figures are alarming. At $2,852/oz at Gold Bar and $2,352/oz at Fox, the mines are unprofitable or barely breaking even despite high gold prices. The updated cost guidance for Gold Bar of $2,400-$2,500/oz for the full year is exceptionally high for an open-pit heap leach operation and points to persistent underlying issues. These costs are unsustainable and question the economic viability of these assets if gold prices were to pull back.
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Growth Narrative vs. Reality: Management continues to push a long-term growth story centered on the Fox Complex expansion and the world-class Los Azules copper project. The positive Feasibility Study for Los Azules (released October 7) is a major de-risking event. However, the company's poor execution at its existing gold mines severely undermines confidence in its ability to deliver these complex, capital-intensive future projects on time and on budget. The Los Azules project, with an initial CAPEX of $3.17 billion, presents an enormous financing hurdle for a company of McEwen's size and operational track record.
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Governance Concerns: The acquisition of Canadian Gold Corp, announced October 14, is a related-party transaction, as CEO Rob McEwen holds a 32.5% stake in the target company. The deal was struck at a 96.7% premium, raising questions about whether it serves the best interests of MUX shareholders or its chairman. An analyst on the Q3 call representing a Canadian Gold shareholder voiced concerns over the fairness of the exchange ratio, which management deflected.
In conclusion, the Q3 results are a stark reminder of the company's execution risk. While the long-term potential of Los Azules is significant, the core gold business is struggling with high costs and operational failures. The negative reality of current performance overshadows the promise of future growth.
McEwen Inc. is a mining and exploration company with producing assets in the Americas. It has three producing mines: the 100%-owned Gold Bar mine in Nevada, the 100%-owned Fox Complex in Ontario, Canada, and a 49% interest in the San José mine in Argentina.
The company's flagship development project is the Los Azules copper project in San Juan, Argentina, held through its 46.4%-owned subsidiary, McEwen Copper. Los Azules is one of the world's largest undeveloped copper porphyry deposits. A recent Feasibility Study (October 2025) outlined a 21-year mine life with an after-tax NPV of $2.9 billion and an IRR of 19.8%, requiring an initial capital investment of $3.17 billion. The company is also advancing its gold project pipeline, primarily through the expansion of the Fox Complex with the development of the Stock and Grey Fox deposits.