McEwen Mining Q1 Results Show Improvement
The results demonstrate a significant improvement in the company's financial performance, driven by higher gold prices and reduced expenditures. The company's growth plans and investments in new projects are expected to drive future growth, but permitting timelines and regulatory approvals remain a challenge.
McEwen Mining reported its Q1 2025 results, showing a net loss of $3.9 million, or $0.07 per share, compared to a net loss of $20.4 million, or $0.41 per share, in Q1 2024, driven by a 31% higher average realized gold price and reduced expenditures.
The company's adjusted EBITDA for Q1 was $8.7 million, or $0.16 per share, up from $6.3 million, or $0.13 per share, in Q1 2024. The gross profit increased to $10.1 million, up from $6.0 million in Q1 2024, due to the higher gold price. McEwen Mining also reported Q1 2025 production of 24,131 gold equivalent ounces (GEOs), including 10,924 attributable GEOs from the San José mine, and remains on track to deliver its 2025 production guidance of 120,000 to 140,000 GEOs.
The company initiated plans to increase annual gold production at its Fox Complex to 60,000 ounces by 2027, with potential expansion to 120,000-150,000 ounces by 2030, subject to timely permit approval. To fund this growth, the company completed a $110 million convertible debt offering. Additionally, McEwen Mining announced preliminary drill results from its Windfall Project and invested $21.3 million in McEwen Copper to advance its feasibility study on Los Azules, a world-class copper development project.
The company's consolidated cash and cash equivalents increased to $68.5 million, and consolidated working capital improved to $61.1 million as of March 31, 2025. However, McEwen Mining faces uncertainty regarding project approvals and a legal claim from an indigenous group, which may impact its future growth and profitability.