McEwen Q2 Results: Net Income of $9.6M ($0.16 per Share), Compared with $3.0M ($0.06 per Share) in Q2 2025; Exploration Results Driving Resource Growth Across All Sites; New Stock Mine in Timmins Nearing Production, with Mine Life Extended

McEwen Inc. (MUX) reported second-quarter 2026 financial results on August 5, 2026, highlighting a 27% year-over-year increase in revenue to $59.2 million, driven by higher gold prices and increased production at its San José mine. The company posted net income of $9.6 million, or $0.16 per share, compared to $3.0 million, or $0.06 per share, in the same period last year. Adjusted EBITDA rose to $22.2 million, or $0.37 per share, up from $17.3 million, or $0.32 per share, in Q2 2025.

The strong performance was underpinned by an average realized gold price of $4,454 per GEO, a 35% increase from $3,298 in Q2 2025. Production reached 13,948 GEOs, contributing to a gross profit of $20.1 million against $12.3 million in the prior year quarter. San José contributed significantly to the balance sheet, with the company receiving $49.4 million in dividends during Q2. Year-to-date dividends total $58.2 million, exceeding the previously guided range of $40–50 million.

McEwen Inc. updated its full-year 2026 production guidance, setting a consolidated target of 109,000–120,000 GEOs. Guidance for the Fox Complex was raised to 20,000–23,000 GEOs, up from 16,000–19,000, with all-in sustaining costs (AISC) remaining between $2,650 and $2,850 per GEO. Conversely, guidance for the Gold Bar Complex was lowered to 30,000–33,000 GEOs from 39,000–43,000, with AISC raised to $2,900–$3,200 per GEO due to assay lab downtime and higher carbon content in the ore. The San José Mine is targeting 59,000–64,000 GEOs, with cash costs of $2,000–$2,200 per GEO and AISC of $2,300–$2,500 per GEO. Additionally, the El Gallo project is forecast to produce 20,000 GEOs annually starting in the second half of 2027.

Significant exploration results were released from the Grey Fox and Tartan projects, supporting long-term growth targets of 250,000–300,000 GEOs by 2030. At Grey Fox, the Whiskey Jack Zone yielded 97.7 gpt Au over 4.4m (TW) in hole 26GF-1755, 64.8 gpt Au over 3.3m (TW) in hole 26GF-1743, and 32.5 gpt Au over 5.2m (TW) in hole 26GF-1733. The Gibson Zone returned 19.3 gpt Au over 2.8m (TW) in hole 26GF-1729 and 11.9 gpt Au over 4.0m (TW) in hole 26GF-1762. A new discovery at Grey Fox South included 57.3 gpt Au over 1.0m (TW) in hole 26GF-1736.

At Tartan, the Central Zone Discovery returned 5.8 gpt Au over 8.3m (CW) and 4.1 gpt Au over 9.0m (CW) in holes TLMZ26-53 and TLMZ26-53W3, respectively. The Eastern and Western Flanks showed 29.1 gpt Au over 10.0m (CW) in hole TLMZ26-67, including 572.0 gpt Au over 0.5m, and 17.8 gpt Au over 15.9m (CW) in hole TLMZ26-58, including 241.6 gpt Au over 1.0m. Drilling at the South Zone Extension extended mineralization vertically by 300 meters, or 46%, from current resource limits.

Project development updates indicated that the Stock Mine at the Fox Complex is on time and budget, with $12.8 million invested in Q2. Mining is expected to begin in Q4 2026, with commercial production targeted for 2027, extending the mine life to 8.5 years. The Grey Fox project released a Preliminary Feasibility Study (PFS) projecting production to reach 100,000 GEOs by 2029, with next steps including detailed engineering, water permit submission, and construction in H1 2027. The Tartan project is reviewing a larger mine/mill scenario of 1,000–1,500 tpd, potentially producing 40,000–65,000 GEOs per year over 7–10 years.

At the Gold Bar Complex, a Windfall Mineral Resource Estimate was published containing 792,000 ounces of Indicated and 281,000 ounces of Inferred resources, with a Trinity Ridge MRE expected in Q1 2027. McEwen Copper advanced toward a Final Investment Decision (FID) for the Los Azules project, with 27% of the FID work program completed. Société Générale was appointed as exclusive financial advisor for debt financing, and IPO preparations were initiated. Construction is targeted for early 2027, with production expected in 2030.

McEwen Inc. also signed a memorandum of understanding (MOU) with Paragon Advanced Labs for PhotonAssay™ services at Gold Bar, Fox, and El Gallo, securing a 3% royalty on gross revenues from third-party clients. The company’s balance sheet showed cash and equivalents of $78.9 million, up from $51.0 million at December 31, 2025, and marketable securities of $12.8 million. Debt stood at $130.0 million principal outstanding, comprising $110 million in convertible notes and a $20 million term loan. Shares outstanding increased to 59.7 million from 55.5 million due to acquisitions of Canadian Gold Corp and Golden Lake Exploration. The investment in McEwen Copper carries an implied market value of $457 million based on a $30 per share financing.

Management stated, "Management believes that estimated production will generate sufficient cash flow to self-fund production growth with limited to no share dilution, based on an average price of $4,000 per ounce of gold and $50 per ounce of silver." Regarding the Fox Complex, management noted, "Leveraging our current mill will allow us to limit initial capital expenditures versus building a new plant." Addressing the Gold Bar Complex guidance reduction, management explained, "This occurred due to 1) The mine assay lab being down for a period during Q2... and 2) More carbonaceous material being associated with the ore than anticipated."