McEwen Inc (MUX) (Q3 2026) Earnings Call Highlights: Gold Bar Recovery and Los Azules Progress ... GuruFocus News Tue, November 10, 2026 at 8:07 PM EST 6 min read MUX GC=F Trade McEwen on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
McEwen Inc (NYSE:MUX) remains on track to double gold production by 2030 to 250,000-300,000 ounces, supported by a 5.8 million ounce gold resource base.
Gold Bar returned to positive cash flow in October, with the highest monthly production in 15 months, and the positive trend continued into November.
The Fox complex is transitioning to the higher-grade Stock mine, which is expected to be more profitable with better recoveries, no royalties, and 30% increased mill capacity.
Los Azules copper project is advancing with FID work on schedule, environmental approval for grid connection received, and strong community support (97% acceptance).
McEwen Inc (NYSE:MUX) has adequate liquidity with $49 million cash, $10 million in marketable securities, and an additional $55 million raised from non-core asset sales in October.
McEwen Inc (NYSE:MUX) reported an unacceptable third quarter, failing to generate a profit due to operational issues at Gold Bar, Fox, and San Jose.
Gold Bar faced lack of oversight, delayed decision-making, and personnel changes, which took time to correct due to its heap-leach nature.
The Fox complex incurred elevated all-in sustaining costs from development expenses and low-grade stockpile processing, though these are temporary.
San Jose operations were impacted by record snowfall and excess moisture, forcing lower-grade sulfide processing and reducing production and recoveries.
Los Azules faces a three-to-four-month delay in site access due to heavy snowfall, potentially affecting the construction schedule and requiring costly mitigation measures.
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Q: Looking at the Los Azules timeline, has the adverse weather affected anything, and have any delays been built into the current timeline for the FID?A: Michael Medding, Managing Director of McEwen Copper, acknowledged a three-to-four-month delay in site access due to the heaviest snowfall in over two decades. To mitigate this, the company is scaling up construction camp capacity to 3,000 beds (from 2,500) to allow more people to work sooner and claw back lost time. While site works will start later than planned, the engineering and cost work for FID is done offsite and remains on track. The target for first copper remains 2030, contingent on site access and recovery measures.
Q: At San Jose, what have you seen so far in Q4 regarding the weather issues, and are there changes you can make to the plant to avoid blockages in the future?A: Ian Ball, Executive Vice Chairman, stated that the excess moisture was a "one-off" event in the plant's 20-year history. The team expects a very strong Q4 as they move back to clay material, which should increase grades and recoveries back to Q1/Q2 levels. While no plant modifications are currently planned, the operation is expected to meet its annual production guidance.
Q: Given the production of over 3,000 gold equivalent ounces at Gold Bar in October, are you expecting that rate to continue for the rest of the quarter?A: Ian Ball, Executive Vice Chairman, confirmed that October's performance was not a one-off buildup. The grade was average, but the team was more efficient in moving ore tons to the leach pad. He expects similar production levels in November and December, with early budgeting showing this average monthly rate continuing into 2027.
Q: Should we expect the San Jose JV to revert to retaining cash flow, or will dividends continue into 2027?A: Perry Ng, CFO, stated that no further dividends are expected for the balance of 2026. However, with closure obligations substantially met and a healthy cash balance of approximately $135 million, the company expects additional dividends in 2027. The quantum will be relative to silver prices, with a profile similar to 2026 expected.
Q: Can you give us guidance on what spending from El Gallo and the Fox Complex advanced projects category might look like in Q4 and next year?A: Perry Ng, CFO, noted that earthworks for the El Gallo mill construction have just started, so Q4 will see modest spend. Heavy spending will not begin until EPCM contracts are finalized, leading to more consistent spend in the first half of 2027. This spending will be capitalized rather than expensed.
Q: Can you give us a dollar impact on diesel prices and how much you spend on diesel now versus Q1?A: Chana Kumrage, VP of Operations, reported that increased diesel costs in Q3 accounted for about a $200 per ounce increase in cash costs at Gold Bar. Perry Ng, CFO, added that for other operations, the impact would be $50 per ounce or less, as Gold Bar is the only all-pit operation subject to significant diesel purchases.
Q: What is the status of the financing for Los Azules?A: Michael Medding, Managing Director of McEwen Copper, outlined three sources: senior project debt (with Societe Generale as advisor), equity at the McEwen Copper level from strategic investors, and a potential IPO. None of the construction financing is committed yet, which is normal before the FID basis is complete. The company continues to target FID and full project financing in mid-2027.
Q: What are the key milestones to watch for Los Azules?A: Michael Medding, Managing Director of McEwen Copper, listed the FID basis completion around year-end, the EPCM award, the updated feasibility study targeted for February 2027, site access in early 2027, and lender feedback leading to FID with full project financing in mid-2027.
Q: What is the status of the water concession permit for Los Azules?A: Michael Medding, Managing Director of McEwen Copper, stated that the application is complete and the authority has no open information requests. The company awaits the Provincial Water Council's decision and is "cautiously optimistic."
Q: What is the liquidity position of McEwen Inc.?A: Rob McEwen, Chairman and Chief Owner, reported that at the end of the quarter, the company had $49 million in cash and $10 million in marketable securities. In early October, the company closed on a sale of non-core properties, adding a further $55 million. He believes this treasury is adequate to cover organic growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
