McEwen Mining reports revenue growth in 2024 and Advances Key Projects

McEwen Mining has reported its fourth-quarter and full-year 2024 financial results, highlighting increased revenues driven by higher gold prices and solid production at its Fox Complex and Gold Bar Mine. The company remains focused on advancing its Los Azules copper project and expanding operations at Fox Complex, with strategic investments set to drive future growth.

**Financial Highlights**

McEwen Mining's 2024 revenue climbed to $174.5 million, a 5% increase from the previous year, primarily due to higher realized gold prices. The company sold 74,911 gold equivalent ounces (GEOs) at an average price of $2,390 per ounce, slightly above the London Bullion Market Association (LBMA) average of $2,386 per ounce.

Gross profit for 2024 reached $30.9 million, nearly doubling from $17.8 million in 2023. Adjusted EBITDA was $29.2 million, or $0.57 per share, a significant jump from $7.7 million in the previous year. This improvement was driven by stronger gold prices, a 5% reduction in production costs, and higher profitability at its operating assets.

Despite these gains, the company reported a net loss of $43.7 million, or $0.86 per share, largely due to $47 million in expenses related to McEwen Copper and $16.5 million invested in exploration across its wholly owned mines. In contrast, 2023 net income of $55.3 million was influenced by a one-time $222.2 million accounting gain from the deconsolidation of McEwen Copper.

**Production and Growth Outlook**

McEwen Mining's total 2024 production reached 135,884 GEOs, down from 154,587 GEOs in 2023. However, the company remains on track for substantial production growth, projecting 225,000-255,000 GEOs by 2030, supported by planned expansion at the Fox Complex.

Fox Complex, located in Timmins, faced operational challenges, including a stope failure and workforce shortages, leading to lower-than-expected production of 30,151 GEOs. However, development efforts are ongoing, with underground ramp access to the Stock orebodies expected to bolster production from 2026 onward. The company's goal is to double Fox Complex output to 60,000 ounces by 2027 and potentially expand further to 120,000-150,000 ounces by 2030, pending permit approvals.

Gold Bar Mine in Nevada produced 44,581 GEOs in 2024, aligning with guidance despite a planned 65% production reduction in the fourth quarter due to mine sequencing adjustments. Exploration at Gold Bar and the recently acquired Timberline properties is expected to extend mine life beyond 2029, with new production areas targeted for 2028 and 2030.

McEwen Mining also maintains a 49% non-operating interest in the San José mine in Argentina, which produced 122,653 GEOs in 2024. A new vertical mill installation is expected to enhance production efficiency in 2025.

**Liquidity and Strategic Investments**

To support its expansion, McEwen Mining raised $110 million through convertible senior unsecured notes maturing in 2030. Net proceeds of $90.8 million will be used for debt reduction and growth projects, including $60 million earmarked for the Fox Complex. The company also reported a strong liquidity position, with cash and equivalents rising to $62.2 million as of March 13, 2025, compared to $17.5 million at year-end 2024.

Additionally, McEwen Mining holds a 46.4% stake in McEwen Copper, valued at approximately $457 million, as well as investments in multiple junior exploration companies. Recent investments include a $6.93 million stake in Goliath Resources and a pending $1.39 million investment in Canadian Gold Corp.

**Exploration and Expansion Plans**

The company's 2025 exploration budget includes $9.7 million for Fox Complex, with plans for 68,500 meters of diamond drilling. At Gold Bar, exploration spending is expected to match 2024 levels, focusing on near-term production targets. Early drilling results from the Timberline-Eureka properties have confirmed gold mineralization along the Windfall fault zone, supporting the long-term development outlook.

At McEwen Copper's Los Azules project in Argentina, a feasibility study is scheduled for release in June 2025. Recent regulatory approvals, including an Environmental Impact Assessment, have positioned the project for potential construction beginning in late 2026.

**Commitment to ESG and Operational Excellence**

McEwen Mining continues to prioritize sustainability and safety, reporting zero significant environmental incidents in 2024. The company improved water recycling rates to over 90% at its Fox Complex and Gold Bar operations and maintained a strong safety record, with the Gold Bar Mine reaching five years without a lost-time injury.

"Our continued investments in exploration, development, and operational improvements are setting the stage for long-term value creation," said McEwen Mining Chairman Rob McEwen. "We are advancing high-potential projects while maintaining our commitment to responsible mining."

With a strong financial position, growing production pipeline, and strategic expansion efforts, McEwen Mining is well-positioned for sustained growth in the years ahead.

_**By Kevin Vincent, Senior Contributing Editor to Mining Life Online and Mining Life & Exploration News.**_

Tags: Northern Ontario / Deals & Financial / Gold / All Articles