McEwen Posts $0.60-Per-Share Loss as Third-Quarter Gold Production Falls
Key Facts
McEwen Mining posted a net loss of $36.655 million, or $0.60 per share, in the third quarter of 2026, compared with a loss of $462,000, or $0.01 per share, in the same period last year, according to its quarterly report filed with the U.S. Securities and Exchange Commission. The larger loss coincided with a decline in consolidated production to 22,852 gold equivalent ounces from 29,662 ounces a year earlier. The company said the quarter marked an operational transition, with challenges at its sites affecting production and costs. Gross profit was $4.0 million, down from $7.8 million in the third quarter of 2025, and the company attributed the margin pressure to lower gold production. It also cut its full-year consolidated production guidance, signaling the effect of expected operational changes on 2026 results.
Production at Gold Bar fell to 6,215 gold equivalent ounces in the third quarter, down 24% from 8,191 ounces in the same period. The company attributed the decline to lower metallurgical recovery amid higher carbonaceous material, despite an 8% increase in tons stacked. It said insufficient management oversight also contributed to weak production at the site. At the group level, quarterly production declined, but output in the first nine months rose to 84,195 gold equivalent ounces, compared with 81,346 ounces in the same period of 2025. McEwen revised its 2026 consolidated production outlook to a range of 109,000–120,000 gold equivalent ounces due to expected changes in its operations.
At the San José mine, the company said heavy snowfall increased moisture and forced the mine to change its ore blend, processing more sulphide ore and reducing clay-rich ore. The shift lowered gold and silver grades and metallurgical recovery, according to the company’s explanation of the operational problems. The impact of weak production appeared in profitability measures, with gross profit at $4.0 million versus $7.8 million a year earlier. McEwen also said operating conditions at San José are expected to improve in the fourth quarter. That expected improvement comes as Argentine inflation and a strong peso continue to put pressure on unit costs through the rest of 2026.
Weakness extended to cash flow, with operating activities using $29.862 million in the third quarter after generating $5.215 million a year earlier. The company posted an adjusted EBITDA loss of $10.850 million, compared with a profit of $11.815 million in the third quarter of 2025. McEwen said the quarterly net loss was affected by an $8.1 million increase in advanced projects and exploration investments, and a $7.3 million decline in unrealized gains on securities. It added that the difference in income and mining tax expenses was $14.3 million, most of it non-cash. These items show how weaker operating performance coincided with expenses and investments that affected the period’s results.
The company ended the quarter on September 30, 2026, with $49.1 million in cash and cash equivalents, alongside $10.4 million in marketable securities. Outstanding principal remained at $130 million. These balances come as the company recorded $29.862 million in cash used by operating activities during the quarter. In October, McEwen estimated all-in sustaining costs at Gold Bar at $2,873 per gold equivalent ounce, compared with $3,520 in the third quarter. The site also produced 3,353 gold equivalent ounces in October, and the team said it believes this level is sustainable.
The company expects production to begin at the new Stock mine within the Fox Complex in December 2026, with commercial production expected in the first half of 2027. The third-quarter results call is scheduled for November 10, 2026, at 11 a.m. U.S. Eastern time. MUX shares closed at $16.23 in the November 9, 2026, session. The company has placed Stock’s start-up on its timeline for the next stages, while expecting operating conditions at San José to improve in the fourth quarter. At the same time, it said Argentine inflation and a strong peso will continue to affect unit costs through the rest of the year.