McEwen Mining 2025 Q1 Earnings Narrowed Losses as Net Income Improves 69%

McEwen Mining (MUX) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The total revenue of McEwen Mining decreased by 13.4% to $35.70 million in 2025 Q1, down from $41.23 million in 2024 Q1, with specific segment revenue listed as follow: Revenue from gold and silver sales: $35.70 million and Total: $35.70 million.

McEwen Mining's Q1 2025 results showed a narrowing of net losses, with the company reporting a net loss of $-6.27 million compared to $-20.38 million in Q1 2024. The EPS improved significantly, narrowing losses to $0.12 per share from $0.41 per share, marking a 70.7% improvement. This performance was in line with expectations, as the company had projected a revenue of approximately $35.7 million for Q1 2025 and an EPS of -$0.12. Despite challenges, McEwen Mining's strategic positioning and exploration activities, such as those at the Los Azules project, reflect a cautious yet optimistic outlook.

Revenue

During the first quarter of 2025, McEwen Mining saw its revenue from gold and silver sales reach $35.70 million, representing the total revenue for the period. This figure marked a 13.4% decrease from the previous year's Q1 revenue of $41.23 million, indicating a downturn in overall sales for the company.

Earnings/Net Income

McEwen Mining narrowed losses to $0.12 per share in 2025 Q1 from a loss of $0.41 per share in 2024 Q1 (70.7% improvement). Meanwhile, the company successfully narrowed its net loss to $-6.27 million in 2025 Q1, reducing losses by 69.2% compared to the $-20.38 million net loss reported in 2024 Q1. The EPS improvement reflects a positive trend despite the revenue decline.

Price Action

The stock price of McEwen Mining has edged down 2.73% during the latest trading day, has edged up 0.38% during the most recent full trading week, and has surged 16.69% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing McEwen Mining (MUX) shares following a quarter with decreased revenue, and holding them for a 30-day period, has demonstrated poor performance over the past five years. The 30-day holding window fails to effectively capitalize on either the recovery or further declines in the stock price. Data from the backtested period indicates an annualized return of -4.4%, with a maximum return of only 3.2%. This suggests that it is not a profitable strategy, highlighting the risks associated with relying solely on post-revenue-drop investments without considering broader market factors and company developments.

CEO Commentary

Rob McEwen, Chairman and Chief Owner of McEwen Mining, expressed optimism about the company's strategic positioning despite facing challenges. He highlighted that the business is benefiting from increased selling prices, which helped offset production declines. McEwen emphasized the successful exploration activities, particularly at the Los Azules project, which has significantly increased in value. He noted the commitment to enhancing productivity and extending the life of the company's assets, indicating a focus on both operational excellence and strategic investments to drive future growth.

Guidance

McEwen Mining projects revenue of approximately $35.7 million for Q1 2025, with an expected EPS of -$0.12. The company aims to increase production at the Fox Complex to 60,000 ounces by 2027, supported by a strategic investment plan. The outlook reflects a cautious yet positive approach, focusing on operational improvements while managing ongoing challenges related to costs and permitting processes.

Additional News

McEwen Mining recently exercised 9,200,000 warrants for shares of Inventus Mining (TSXV:IVS), an Ontario-based gold and critical metals explorer, securing an investment worth C$828,000. This move aligns with McEwen Mining's strategy to expand its equity exposure and leverage opportunities in the mining sector. Additionally, the company completed an upsized $110 million offering of convertible senior unsecured notes, which will fund growth initiatives and reduce debt, reflecting a strategic approach to enhance capital structure while minimizing shareholder dilution.