McEwen (MUX) Q3 2024 earnings summary

Executive summary

• Revenue rose 36% year-over-year to $52.3 million in Q3 2024, driven by higher gold prices and increased sales from wholly owned operations.

• Gross profit surged 268% to $13.8 million, and adjusted EBITDA increased 586% to $10.5 million, reflecting operational improvements.

• Net loss narrowed to $2.1 million ($0.04/share) from $18.5 million ($0.39/share) in Q3 2023, mainly due to strategic exploration expenses and cost controls.

• Operating cash flow improved to $23.2 million, up from negative $2.3 million in Q3 2023.

• Completed acquisition of Timberline Resources, expanding Nevada exploration portfolio.

Financial highlights

• Q3 2024 revenue: $52.3M (Q3 2023: $38.4M); gross profit: $13.8M (Q3 2023: $3.8M); adjusted EBITDA: $10.5M (Q3 2023: $1.5M).

• Q3 2024 net loss: $2.1M; 9M 2024 net loss: $35.5M (9M 2023: $83.2M).

• Cash and cash equivalents at September 30, 2024: $29.2M; working capital: $8.6M.

• Average realized gold price: $2,499/oz in Q3 2024, up from $1,920/oz in Q3 2023.

• Consolidated Q3 production: 35,200 GEOs, down from 38,500 GEOs in Q3 2023.

Outlook and guidance

• 2024 consolidated production guidance reaffirmed at 130,000–145,000 GEOs.

• Gold Bar Mine expected to meet or exceed annual guidance of 40,000–43,000 oz Au; Fox Complex to produce 15–20% below its 40,000–42,000 oz Au guidance due to stope issues.

• San José Mine expected to meet annual guidance of 50,000–60,000 GEOs attributable.

• Los Azules copper project feasibility study scheduled for H1 2025, supported by recent $56 million funding.

• Guidance for Gold Bar and Fox costs expected to be met or slightly exceeded on an annual basis.