Quarterly profit surges on stronger gold output and exploration
McEwen Inc. announced strong second-quarter results, reporting net income of $9.6 million, or $0.16 per share, according to its August 5 release. This represents a significant jump from $3.0 million, or $0.06 per share, in the second quarter of 2025. The improvement is attributed to increased gold production and improved performance from exploration activities at its Canadian properties.
The company has revised its full-year production forecast for the Fox Complex to a range of 20,000 to 23,000 GEOs, up from the earlier guidance of 16,000 to 19,000. All-in sustaining costs remain unchanged at $2,650 to $2,850 per GEO for the year. The updated projection reflects ongoing progress at the Fox Complex and the development of new projects.
McEwen is also working on multiple development projects aimed at boosting gold production across its operations. The company anticipates these projects will help push annual gold output to between 250,000 and 300,000 GEOs by 2030. Exploration efforts have already returned promising results, supporting the potential for long-term growth and resource expansion.
New mine in Timmins nears production, with mine life extended
The Stock Mine, a part of the Fox Complex in Timmins, Ontario, is on track for commercial production in 2027. The company has been developing the mine within budget, investing $12.8 million in the second quarter and $52.2 million since the start of the previous fiscal year. Engineering and mine planning in Q2 have led to an updated mine life projection of 8.5 years, up from the initial 6 years.
The Stock Mine is expected to provide lower-cost gold production due to a reduced royalty burden and a shorter haulage distance to the existing milling facility. The material being processed is also softer, which should help reduce operational costs. The mine is expected to contribute significantly to the company's overall production output once it begins operating.
As part of the development process, mineralized material has already been transported to the mill for processing. Mining operations are set to begin in the fourth quarter of 2026, but production from the Stock Mine will not be included in the 2026 production guidance.
The mine life extension is based on recent geological assessments and additional drilling results. The company is optimistic that further underground exploration could lead to even more extensions in the future, making the project more sustainable in the long run.
High-grade gold discoveries at Grey Fox and Tartan boost resource estimates
McEwen has made several high-grade gold discoveries at the Grey Fox Project and the Tartan Mine Project. At Grey Fox, part of the Fox Complex, the company reported intersections of up to 97.7 grams per tonne (gpt) over 4.4 meters, 64.8 gpt over 3.3 meters, and 32.5 gpt over 5.2 meters. These results are helping the company expand its resource base and improve its long-term production outlook.
At the Tartan Mine Project in Flin Flon, Manitoba, drilling has intersected high-grade gold, including 17.8 gpt over 15.9 meters and 29.1 gpt over 10.0 meters. These findings indicate significant potential for resource growth and may lead to further extensions of the mine's life. The discoveries were made near existing underground infrastructure, which the company believes will help reduce development costs.
These high-grade intersections are not only boosting resource estimates but also demonstrating McEwen's ability to grow its operations organically. The company is currently analyzing the data to determine how these results can be incorporated into its long-term planning.
The Tartan Mine Project is also undergoing a design review. The company is considering a larger mine and mill setup, ranging between 1,000 and 1,500 tonnes per day (tpd), compared to the initial plan of a smaller staged approach (500 tpd expanding to 1,000 tpd). While this would require more initial capital, it could result in higher gold production and lower operating costs in the long run.
Based on the new design under consideration, Tartan has the potential to produce between 40,000 and 65,000 GEOs annually over a 7- to 10-year mine life. The company is also focusing on completing engineering and securing necessary permits to ensure the project moves forward efficiently.
McEwen believes the cash flow generated by its current production and these exploration successes will be sufficient to self-fund expansion projects. This is based on assumptions that the price of gold will remain around $4,000 per ounce and silver around $50 per ounce.
These developments, along with the success of the Grey Fox Prefeasibility Study, are helping position McEwen for sustained growth. The company plans to move forward with detailed engineering, long-lead purchases, and construction activities in preparation for commercial production in 2029.
The Grey Fox project is expected to significantly boost gold production at the Fox Complex, with output projected to reach 100,000 GEOs in 2029 and averaging 87,000 GEOs from 2028 to 2041. The project is seen as a key component of McEwen's strategy to expand its operations and increase its market presence.
Drilling in this area has already covered a large section, and further exploration is ongoing to better understand its potential.
