McEwen Mining Inc.

Management did not restate quarterly revenue or EPS on the call, but it said operationally Q2 was below expectations, with lower production and higher costs. The main issue was at Gold Bar, where more carbonaceous ore than expected reduced gold recoveries, and Perry Ing said the higher AISC was largely driven by the shortfall in production ounces at a fairly fixed-cost operation. He added that AISC should trend down in the second half as ounce recovery improves. On Gold Bar, Rob McEwen said permitting for surrounding deposits in the hub-and-spoke plan is about two years away, while exploration at Eureka could make a large contribution to the 90,000 to 100,000 ounces per year target. For Los Azules, Michael Meding said the overall financing package is about $4 billion, with about $1.6 billion of equity, and that the project is targeting a 60% debt / 40% equity structure; he also said the FID work program was about 27% complete at June and is targeted to finish in Q4.

Rob McEwen’s tone was candid but constructive: he said the quarter was not what the company wanted and took responsibility for the Gold Bar miss, calling out execution and recoveries as the core issue. At the same time, he framed the company as building long-term value through discovery at Fox Complex and through Los Azules, which he described as a rare, potentially company-changing copper asset. He repeatedly emphasized disciplined capital allocation, saying the goal is to create value before the market recognizes it.

Perry Ing focused on the financial impact of the operational shortfall. He said Gold Bar is a fairly fixed-cost operation, so lower ounces directly lifted AISC, and he expects AISC to come down as recoveries improve in the second half of the year. In response to a cash question, he said San José had roughly $130 million in U.S. cash and investments at the end of Q2, no further dividend is expected this year, and dividends are expected to resume next year if conditions allow. He also noted diesel exposure at Gold Bar, saying U.S. diesel had risen from about $3.75 in 2025 to about $4.75 per gallon this year, with roughly a $100 per ounce impact on AISC for that move.

Analysts pressed on Gold Bar’s production outlook, the localizing of carbonaceous zones, and whether the revised guidance included additional conservatism. William Shaver said the model is continuously updated with blast-hole sampling, that the issue was localized in the quarter, and that the company increased mining volume to move more waste while trying to recover more ore. On Los Azules, questions centered on financing, the Finnish export credit agency, and dilution tolerance; management said the ECA process is one piece of a broader package and that they are trying to keep dilution as small as possible. They described a plan built around ECA debt, IFC/DFI participation, an IPO later this year, and partner equity, while also considering whether to keep or eventually spin out the royalty/NSR interests.