Executive Summary

Q2 2025 delivered a return to profitability: net income $3.0M ($0.06/share) vs net loss of $13.0M ($0.26/share) in Q2 2024; adjusted EBITDA rose to $17.3M ($0.32/share) on higher realized gold prices and cost control .
Revenue was $46.7M; S&P Global consensus was $49.1M, a miss; Primary EPS (S&P) was $0.19 vs $0.01 estimate, a significant beat as GAAP diluted EPS printed $0.06 *.
2025 production guidance reaffirmed at 120,000–140,000 GEOs; H2 production ramp expected to lower unit costs; Los Azules feasibility targeted for late Q3 2025 and LOI announced to acquire Canadian Gold Corp., adding potential near-term Canadian production optionality .
Stock reaction catalysts: feasibility study publication (Los Azules), Froome West high-grade discovery extending mine life, and the Canadian Gold LOI; management emphasized a path to double consolidated GEOs to 250–300k by 2030 .

What Went Well and What Went Wrong

What Went Well

Profitability inflection: gross profit rose to $12.3M (gross margin 26%); net income reached $3.0M ($0.06/share), reversing a $13.0M loss in Q2 2024 .
Adjusted EBITDA nearly doubled YoY to $17.3M ($0.32/share), supported by higher realized gold pricing ($3,298/GEO) and operating improvements .
Strategic progress: Froome West high-grade discovery to extend Fox Complex mine life; LOI signed to acquire Canadian Gold Corp. (Tartan Mine), plus Inventus milling agreement leveraging Stock mill capacity .
- “The higher gold price, while expected, had a welcome positive impact on our cash flow and net income,” said Rob McEwen, CEO and Chief Owner .

What Went Wrong

Lower consolidated production: 27,554 GEOs vs 35,265 GEOs in Q2 2024; 100%-owned operations saw higher cash costs/AISC ($1,906/$2,120 per GEO) as stripping and mine sequencing weighed on unit costs .
San José (49%): attributable production declined to 13,719 GEOs; cash costs/AISC rose to $2,310/$2,842 per GEO due to Argentine inflation and contractor use; management expects H2 improvements with higher throughput .
Revenue missed consensus ($46.7M vs $49.1M S&P estimate); underlying factors include fewer GEOs sold than prior year, partially offset by higher realized prices .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$47.5	$35.70*	$46.7
GAAP Diluted EPS ($USD)	-$0.26	-$0.12	$0.06
Net Income ($USD Millions)	-$13.0	-$6.3	$3.0
Adjusted EBITDA ($USD Millions)	$7.2	$8.7	$17.3
Gross Margin (%)	—	—	26%

Note: *Values retrieved from S&P Global.

Segment production and unit costs

Asset	GEOs (Q2 2024)	GEOs (Q2 2025)	Cash Costs/GEO (Q2 2024)	Cash Costs/GEO (Q2 2025)	AISC/GEO (Q2 2024)	AISC/GEO (Q2 2025)
Gold Bar (100%)	12,297	8,406	$1,532	$1,679	$1,634	$1,792
Fox Complex (100%)	8,297	5,429	$1,588	$2,212	$1,874	$2,563
San José (49% basis)	14,672	13,719	$1,624	$2,310	$2,032	$2,842
Consolidated GEOs	35,265	27,554	—	—	—	—

KPIs and liquidity

KPI	Q2 2024	Q2 2025
Average realized gold price ($/GEO)	$2,355	$3,298
Cash & Equivalents ($M)	$13.7	$53.6
Working Capital ($M)	—	$61.8
Total Debt Principal ($M)	$40.0	$130.0

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Production (GEOs)	FY 2025	120,000–140,000	120,000–140,000	Maintained
Gold Bar Production (GEOs)	FY 2025	40,000–45,000	40,000–45,000	Maintained
Fox Complex Production (GEOs)	FY 2025	30,000–35,000	30,000–35,000	Maintained
San José Attributable Production (GEOs)	FY 2025	50,000–60,000	50,000–60,000	Maintained
Gold Bar Cash Costs/AISC ($/GEO)	FY 2025	$1,500–$1,700 / $1,700–$1,900	$1,500–$1,700 / $1,700–$1,900	Maintained
Fox Cash Costs/AISC ($/GEO)	FY 2025	$1,600–$1,800 / $1,700–$1,900	$1,600–$1,800 / $1,700–$1,900	Maintained
San José Cash Costs/AISC ($/GEO)	FY 2025	$1,600–$1,800 / $1,900–$2,100	$1,600–$1,800 / $1,900–$2,100	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Production growth to 250–300k GEOs by 2030	Outlined Fox Complex scaling; Los Azules EIA approved; broader growth pipeline	Reiterated doubling plan; H1 exploration spend emphasized; near-term catalysts listed	Consistent, gaining momentum
Fox Complex execution	Q1 noted Froome constraints, Stock portal permits, ramp funded	Froome West high-grade discovery extends mine life; Stock ramp advancing	Improving visibility
San José operations & costs	Q1 seasonal weakness, higher costs due to FX; expected H2 cost improvement	Higher Q2 costs; management expects H2 reductions with throughput gains	Monitoring, expected improvement
Los Azules feasibility	Q4: EIA approval; progressing to definitive study	Feasibility targeted late Q3 2025; RIGI application updated	On track
M&A and asset pipeline	Timberline integration, investments in Goliath/Canadian Gold	LOI to acquire Canadian Gold (Tartan Mine); dewatering and restart path discussed	Expanding pipeline
Cost trajectory	Q1 higher AISC due to stripping; planned H2 cost declines	H2 production ramp expected to lower unit costs across operations	Expected easing

Management Commentary

“During H1 2025 we invested in development projects, including the proposed acquisition of Canadian Gold Corp., to position our company for operational growth.” — Rob McEwen, CEO and Chief Owner .
“We are proud of the teams at Fox Complex and Gold Bar… zero lost-time incidents… These accomplishments reinforce our momentum and strengthen our path toward achieving our full-year guidance.” — William Shaver, COO .
“We are excited at the potential of what Froome West holds… mineralization remains open both at depth and to the West.” — Rob Glover, Chief Geologist .

Q&A Highlights

Path to doubling production: management reiterated exploration-led growth, Fox Complex scaling, and Los Azules feasibility timing; near-term catalysts include Froome West and Canadian Gold LOI .
Tartan Mine restart considerations: ramp dewatering estimated at ~$3M; restart within 24–36 months post-close targeted, leveraging Fox Complex expertise .
Cost outlook: higher H1 costs reflect mine sequencing/stripping; management expects H2 production increases to lower unit costs .
Regulatory/process update: RIGI resubmission (July 11) to secure tax/regulatory benefits for Los Azules; feasibility study in late Q3 2025 remains the focus .

Estimates Context

Metric	S&P Global Consensus	Actual	Surprise
Primary EPS (Q2 2025) ($)	0.01*	0.19*	+0.18 (Beat)*
Revenue (Q2 2025) ($USD Millions)	49.05*	46.7	-2.35 (Miss)*

Notes: Values with asterisks retrieved from S&P Global. GAAP diluted EPS reported by the company was $0.06 ; S&P Primary EPS may reflect a different basis/normalization.

Key Takeaways for Investors

Earnings quality improved: GAAP profitability and strong adjusted EBITDA reflect higher realized gold prices and operational progress; watch H2 cost trajectory as production ramps .
Mixed scorecard vs Street: EPS beat on S&P Primary EPS while revenue missed; estimate revisions may skew positive for EPS but cautious for top-line until GEO volumes re-accelerate*.
Fox Complex derisking: Froome West discovery extends mine life; Stock ramp progress supports 2026 commercial production, underpinning medium-term growth .
San José sensitivity: costs elevated by local inflation/FX; monitor H2 throughput/cost reduction to validate guidance .
Strategic pipeline: Canadian Gold LOI (Tartan Mine) adds a restartable Canadian asset; integration synergies likely given Fox similarities; feasibility and RIGI at Los Azules are near-term catalysts .
Balance sheet flexibility: cash $53.6M; working capital $61.8M; convertible notes provide growth capital though leverage rose to $130M debt principal .
Trading implications: Near-term catalysts (Los Azules feasibility, exploration updates, LOI progress) and H2 production uplift are potential stock drivers; key monitoring points include unit cost reductions and segment GEO delivery .

Additional detail and cross-references:

Consolidated production and unit costs by asset, including non-GAAP reconciliations, are provided in the Q2 press release and 8-K exhibits .
Q1 2025 context and 2025 guidance ranges were previously disclosed and reaffirmed in Q2 .
Conference call logistics and replay links were published on August 4, 2025 .

McEwen Inc. (MUX)·Q2 2025 Earnings Summary