McEwen Mining Navigates Operational Headwinds Amid Exploration Success

The story at McEwen Mining is one of stark contrasts. While the company's exploration teams are delivering highly promising drill results, its operational performance has fallen short, creating a complex picture for investors. Recent quarterly figures have prompted a revision of annual targets, even as key development projects advance.

The third quarter of 2025 presented significant operational challenges. McEwen Mining reported revenue of $50.53 million, which fell well below analyst expectations of $64.22 million. The period concluded with a net loss of $0.5 million.

In response to these results, management has adjusted its full-year outlook. The company now anticipates 2025 production of 112,000 to 123,000 gold equivalent ounces (GEOs), a reduction from the previous target range of 120,000 to 140,000 GEOs. Concurrently, cost forecasts have risen. Projected cash costs per ounce are now $2,028 to $2,128, with all-in sustaining costs (AISC) expected to be between $2,356 and $2,456 per ounce.

Exploration Delivers High-Grade Results

Despite the quarterly setback, exploration efforts across McEwen's portfolio continue to yield strong results, adding potential long-term resource value.

At the Froome Mine in Ontario, an aggressive drilling campaign has successfully increased higher-grade gold mineralization by approximately 45%. Notable intercepts include hole 25PR-G467, which returned 31 meters grading 7.7 grams of gold per tonne, and hole 25PR-G478, assaying 15 meters at 6.1 grams per tonne. These results have extended the known mineralization vertically by 100 meters and up to 50 meters to the west. An updated resource estimate for the Froome West area is expected by the end of February.

Should investors sell immediately? Or is it worth buying McEwen Mining?

In Nevada, the program at the Gold Bar Mine Complex is focused on expanding the resource base and extending the mine's operational life. Promising drill results have been announced from three target areas:
* Lookout Mountain: 1.0 g/t gold over 89.9 meters.
* Windfall: 4.6 g/t gold over 26.7 meters.
* Unity Ridge: 3.6 g/t gold over 48.8 meters.

A significant portion of this mineralization is oxide gold, which allows the company to leverage the existing Gold Bar processing infrastructure, prioritizing capital discipline and operational efficiency.

Copper Project Advances with Fiscal Incentives

Beyond its gold assets, McEwen Mining holds a 46.4% interest in McEwen Copper, which is advancing the large-scale Los Azules copper project in Argentina. A feasibility study was completed in October, assigning an implied value of $456 million to McEwen Mining's stake. Designed to be one of the world's first regenerative copper mines, the project has secured tax incentives from the Argentine government that are expected to lower its effective tax rate by approximately 17 percentage points. First copper production is targeted for 2030.

Upcoming Catalysts

Looking ahead, investors can anticipate several key milestones. An updated resource estimate for the Grey Fox deposit is scheduled for the fourth quarter of 2025. This will be followed by a pre-feasibility study in the first half of 2026, which will provide further clarity on the project's economics and development pathway.