McEwen Mining Business Model Canvas
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Unlock a mining Strategic Business Model Canvas: value, revenue, partnerships, and risks
Unlock McEwen Mining’s strategic blueprint with this concise Business Model Canvas overview. See how value propositions, revenue streams and partnerships drive growth and de-risk exploration. Purchase the full, editable Canvas for a section-by-section roadmap ready for investor decks and benchmarking.
Partnerships
JV partner at San José (operator)
As of 2024 McEwen Mining holds a 49% interest in the San José mine in Argentina alongside an operating JV partner, enabling shared capital, risk and technical expertise. The partnership stabilizes production and cost performance via established mine plans and site-level governance. It supports regulatory compliance and community engagement locally. Coordinated offtake and export processes help optimize realized prices and cash flow.
Refiners, smelters, and bullion banks
Downstream partners — refiners, smelters and bullion banks — purchase and doré (commonly 90–95% purity) and refine it, anchoring pricing to LBMA/COMEX benchmarks to ensure market access and reduce settlement risk. Bullion banks commonly provide short-term credit lines bridging 30–60 day shipment cycles to cover working capital. Consistent QA/QC with refiners preserves product acceptance and favorable treatment terms.
Mining contractors and OEM suppliers
Mining contractors for drilling, blasting and underground development scale McEwen Mining’s internal capacity, shortening project timelines and lowering capex ramp; in 2024 contract mining remained a ~25–35% efficiency lever in the industry. OEMs supply mobile fleets, processing components and field maintenance, with service agreements raising equipment uptime by roughly 10–15% and cutting unit costs. Technology partners deliver automation, fleet management and metallurgical optimization, with automation and process modeling contributing up to 1–3% higher recoveries and ~10–20% fuel/opex savings in 2024 pilots.
Logistics, assay labs, and environmental firms
Secure transport and logistics providers manage doré shipments and cross-border compliance, minimizing theft and customs delays for McEwen Mining.
Independent assay labs validate grade, recovery, and settlement quality to protect revenue and refine payable metal calculations.
Environmental consultants support permitting, monitoring, and closure planning, reducing operational risk and safeguarding regulatory standing.
Governments, communities, and Indigenous groups
Constructive relationships with governments, communities, and Indigenous groups secure permits and social license to operate, enabling McEwen Mining to progress projects with lower regulatory friction. Community development programs bolster local hiring and procurement, enhancing workforce access and supply-chain resilience. Ongoing engagement reduces disruptions and reputational risk while clear benefit-sharing agreements protect long-term land and infrastructure access.
- Permits & social license — collaborative governance
- Local hiring & procurement — workforce access
- Continuous engagement — disruption mitigation
- Benefit-sharing — long-term land access
49% stake in San José JV shares capex, risk and production in 2024
McEwen Mining holds 49% of San José JV, sharing capex, risk and production responsibility in 2024. Refiners, bullion banks and smelters secure market access and 30–60 day settlement financing. Contract miners and OEMs provided 25–35% efficiency leverage and automation pilots delivered ~10–20% fuel/opex savings in 2024. Government, community and Indigenous partnerships protect permits and social license.
| Partner | Role | 2024 metric |
|---|---|---|
| San José JV | Operating JV | 49% interest |
| Contract miners/OEMs | Execution & equipment | 25–35% efficiency / 10–20% fuel savings |
| Refiners/bullion banks | Offtake & financing | 30–60 day settlements |
What is included in the product
Detailed Word Document
A concise Business Model Canvas for McEwen Mining mapping its asset-driven value proposition—gold, silver and copper production and development—target customers (investors, offtakers), channels (markets, partnerships), key activities (exploration, mining, project financing), key resources (mines, royalties, expertise), cost/revenue structure, and ESG-focused competitive advantages for stakeholder decision-making.
Customizable Excel Spreadsheet
High-level view of McEwen Mining’s business model with editable cells, saving hours of structuring and enabling quick, shareable snapshots for boardrooms, teams, or investor comparisons.
Activities
Exploration and resource expansion
Systematic drilling, geophysics and 3D modeling at Black Fox, Gold Bar and regional targets underpin McEwen Minings 2024 exploration push, supported by a disclosed 2024 exploration budget of US$18.5 million.
Focused conversion of resources to reserves at those deposits extends mine life and is modeled to improve NAV per share by reducing discounted cash‑flow risk in company technical studies.
Target generation prioritizes brownfield targets near existing infrastructure to lower capital intensity, and continuous geological learning has reduced discovery costs per ounce over successive programs.
Mine development and operations
Underground and open-pit development, ore extraction, and systematic backfilling ensure steady feed to the mill, with short-interval control and reconciliation minimizing dilution and improving recovery rates. Maintenance scheduling and shift planning focus on maximizing equipment availability and throughput. Robust safety management systems protect people and sustain productivity across operations.
Processing and metallurgical optimization
Crushing, grinding, gravity concentration and cyanide leaching produce saleable doré bars at McEwen Mining operations. Metallurgical test work refines circuits to raise recovery and lower reagent consumption. Debottlenecking and advanced process control increase plant stability and throughput. Tailings management programs ensure regulatory compliance and ESG performance.
Marketing, hedging, and offtake management
Sales timed to market conditions with settlement against LBMA benchmarks ensures pricing transparency and alignment with global gold/silver markets; selective hedging protects cash flow and covenant metrics while preserving upside exposure; contract management focuses on improving payabilities, deductions and payment timing; counterparty diversification reduces concentration and credit risk.
- LBMA-settled sales
- Selective hedging to protect covenants
- Contract optimization for payability
- Counterparty diversification to limit concentration
ESG, permitting, and stakeholder engagement
McEwen Mining (NYSE American: MUX) in 2024 leverages ESG via environmental monitoring, water stewardship, and energy initiatives to lower operational risk and costs across the Fox Complex (Nevada) and Los Azules (Argentina) projects.
Social programs and transparent reporting sustain community trust; strict permitting and audits prevent interruptions; governance frameworks align site practices with corporate standards.
- Environmental monitoring: site-level surveillance and mitigation
- Water stewardship: reuse and permitting focus
- Energy initiatives: efficiency and emissions control
- Governance: standardized audits and reporting
US$18.5M funds drilling and 3D modeling at Black Fox and Gold Bar to boost NAV
Systematic drilling, geophysics and 3D modeling at Black Fox and Gold Bar underpin McEwen Minings 2024 exploration program, funded with US$18.5 million. Conversion of resources to reserves and mill‑feed optimization target higher NAV and lower discounted cash‑flow risk. LBMA‑settled doré sales, selective hedging and contract optimization manage price and counterparty risk.
| Metric | 2024 | Notes |
|---|---|---|
| Exploration budget | US$18.5M | Black Fox, Gold Bar |
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Business Model Canvas
This preview is the actual McEwen Mining Business Model Canvas—not a mockup—and shows the exact content and layout you’ll receive after purchase. When you complete your order you’ll get the full, editable document in the same format (Word/Excel), ready to present or modify. No extras, no placeholders—what you see is what you’ll own.
Resources
Operating mines and mineral reserves
Core assets: Black Fox (Canada), Gold Bar (Nevada) and a 49% interest in San José (Argentina) form McEwen Mining’s operating base. Proven and probable reserves at these sites provide multi-year production visibility supported by NI 43-101 technical studies. Established mine infrastructure and tailings facilities sustain ongoing operations and compliance. Life-of-mine plans convert geological reserves into scheduled cash flow and capital allocation decisions.
Processing plants and mobile fleets
Onsite mills, leach circuits and gold rooms convert ore to doré at McEwen Mining, supported by haul trucks, loaders, jumbos and ancillary gear that move ore and waste efficiently; spares inventories and onsite workshops maintain fleet and plant availability, while plant control systems and data historians drive continuous improvement and operational visibility.
Skilled workforce and technical IP
In 2024 McEwen Mining relies on geologists, miners, metallurgists and engineers to drive safe, efficient operations. Proprietary models, block estimates and drill databases underpin resource evaluation and reserve reporting. Standard operating procedures codify best practices across sites, while relationships with specialist consultants extend technical capability as needed.
Permits, land packages, and water rights
Permits, land packages, and water rights underpin McEwen Mining operations by enabling mining licenses, environmental approvals, and surface access that allow production to proceed. Strategic land holdings around existing infrastructure create exploration optionality. Secured water allocations support processing stability, while a clean compliance history strengthens renewal prospects.
- Mining licenses and environmental approvals enable production
- Land packages provide exploration optionality near infrastructure
- Water rights ensure processing reliability
- Strong compliance history aids permit renewals
Financial capacity and market relationships
Financial capacity rests on cash, credit facilities and equity market access via NYSE MUX in 2024 to fund development and exploration, while established ties to refiners and bullion banks ensure predictable monetization of metal sales. Insurance and hedging frameworks protect the balance sheet and project financing, and active investor relations in 2024 support valuation and strategic flexibility.
- Cash and credit: development/exploration funding
- Equity market access: NYSE MUX (2024)
- Refiner/bullion bank ties: predictable monetization
- Insurance & hedging: balance-sheet protection
- Investor relations: valuation & strategic optionality
Diversified North American and Argentine mining assets with onsite mills and secured financing
Core operating assets: Black Fox (Canada), Gold Bar (Nevada) and 49% interest in San José (Argentina) provide multi-year visibility under NI 43-101 frameworks. Onsite mills, leach circuits and fleet with spare inventories sustain throughput and availability. Permits, land packages and secured water rights enable operations and exploration optionality. Financially supported by cash, credit lines and equity access via NYSE MUX in 2024.
| Asset | Location | Interest | 2024 note |
|---|---|---|---|
| Black Fox | Ontario, Canada | 100% | Operating |
| Gold Bar | Nevada, USA | 100% | Operating |
| San José | Jujuy, Argentina | 49% | Major producing JV |
Value Propositions
Leverage to gold and silver prices
Revenue for McEwen Mining closely tracks gold and silver benchmarks, giving investors direct price exposure as of 2024. Operating torque amplifies upside when grades, recoveries, or unit costs improve, magnifying miner cashflow relative to metal moves. Minimal downstream transformation preserves sensitivity to spot markets, while optional hedging is used to balance market volatility and near‑term cash certainty.
Diversified Americas footprint
McEwen Mining operates assets across Canada, the USA and Argentina, providing geological and jurisdictional diversification while listing on NYSE American and TSX under symbol MUX. Cross-site learning and centralized technical teams raise operational performance across the portfolio. Revenue and cost exposure to CAD, USD and ARS can partially hedge inflation and accessing varied labor and supply markets enhances resilience.
Brownfield growth and mine-life extension
Near-mine drilling converts resources at materially lower discovery and development costs, accelerating ounces into inventory versus greenfield exploration. Leveraging existing mills, tailings and permits cuts time-to-cash for new ounces and reduces permitting risk. Targeted, incremental plant expansions boost throughput with limited incremental capex, extending mine life and underpinning stable employment and community benefits.
Reliable doré supply and quality
Consistent doré specifications (typical doré fineness range 850–995) ease refiner acceptance and speed settlement, often within 7–14 days; robust QA/QC and transparent assays reduce disputes and assay rechecks. Secure logistics and complete documentation streamline export and payment, while predictable shipments support downstream refinery and hedging plans.
- Consistent specs: doré fineness 850–995
- Settlement: refiner timelines 7–14 days
- QA/QC: transparent assays cut disputes
- Logistics: secure documentation expedites payment
Commitment to ESG and safety
McEwen Mining’s commitment to ESG and safety reduces incidents and downtime through a strong safety culture, protects water, land and biodiversity via targeted environmental stewardship, builds social license and lowers community disruptions through focused investments, and meets stakeholder expectations with transparent governance and enhanced disclosure.
- Safety: lower incident rates
- Environment: water, land, biodiversity protection
- Community: investment = fewer disruptions
- Governance: transparent disclosure
Direct gold and silver exposure with operational leverage and fast doré settlements
McEwen Mining (MUX, NYSE American & TSX) offers direct gold/silver price exposure with operational leverage from grades, recoveries and unit‑cost improvements. Portfolio in Canada, USA and Argentina provides geological/jurisdictional diversification and centralized technical teams raise performance. Consistent doré specs (fineness 850–995) and refiner settlement (7–14 days) speed cashflow and ESG/safety reduce disruptions.
| Metric | Value |
|---|---|
| Listings | MUX on NYSE American & TSX |
| Doré fineness | 850–995 |
| Refiner settlement | 7–14 days |
| Regions | Canada, USA, Argentina |
Customer Relationships
Long-term offtake agreements
Multi-year offtake agreements with refiners stabilize McEwen Mining cash flow and reduce marketing costs by locking in buyers and simplifying logistics. Contract clauses that optimize payabilities and treatment charges preserve margin and lower price exposure. A documented performance history builds trust and boosts renewal prospects, while volume commitments enable joint production and supply planning.
Regular technical and assay reporting
Transparent shipment documentation tied to assay reports and batch IDs supports settlement workflows and aligns with McEwen Mining (ticker MUX) counterparty requirements, often enabling invoice settlement within 30 days. Independent third-party lab checks corroborate quality and weights, targeting >99% concordance on delivered metal content. Rapid issue resolution reduces working capital friction and sharing assay data drives incremental refining yield gains over time.
Dedicated account management
Dedicated account managers coordinate pricing windows, logistics, and documentation to secure timely deliveries and minimize disputes; proactive communication reduces timing and FX risks through forward coverage and synchronized shipment schedules. Structured quarterly reviews track KPIs and service levels, while deep client relationships enable operational flexibility and priority access during disruptions.
Flexible delivery and scheduling
Flexible delivery and scheduling adapt shipment cadence to plant campaigns and refiner availability, aligning with McEwen Mining (trading as MUX on NYSE American and MUX.TO on TSX) operational cycles. Alternative routes and carriers reduce bottlenecks and downtime. Coordinated timelines synchronize assay, payment and cash needs to improve realized value and reliability.
- Shipment cadence matches plant/refiner cycles
- Alternate carriers cut transit delays
- Assay/payment timelines synchronized
- Greater flexibility raises recovery and payment certainty
Compliance and ethical sourcing assurance
Adherence to responsible gold guidance reassures buyers and financiers and aligns McEwen Mining with industry standards; as of 2024 LBMA and related frameworks remain the benchmark for responsible sourcing.
Robust chain-of-custody controls reduce reputational and supply-chain risk, while audit readiness shortens due-diligence cycles and financing timelines.
Third-party certifications in 2024 continue to unlock premium counterparties and improved contract terms for compliant producers.
- reassurance: aligns with LBMA 2024 standards
- risk: lowers reputational exposure via chain-of-custody
- speed: audit readiness reduces diligence time
- value: certifications enable premium counterparties/terms
Multi-year offtakes, 30-day settlement, >99% assay concordance
Multi-year offtakes stabilize cash flow and simplify logistics while contract clauses protect margins. Shipment docs + assays target settlement within 30 days and >99% assay concordance. Dedicated account managers and flexible scheduling reduce disputes and timing/FX risk. LBMA 2024 alignment and chain-of-custody certification speed audits and unlock premium counterparties.
| Metric | Value (2024) |
|---|---|
| Invoice settlement | 30 days |
| Assay concordance | >99% |
| Standards | LBMA 2024 |
| Offtake tenor | Multi-year |
Channels
Direct sales to refiners
Direct sales to refiners are McEwen Mining's primary channel for doré monetization, with negotiated terms that secure price and payment timing. Direct relationships streamline settlement, reduce intermediaries and lower counterparty risk. Site-to-refinery logistics are coordinated for speed and security, with documentation ensuring customs and assay compliance.
Bullion banks and traders
Bullion banks and traders supply liquidity, credit lines and pricing solutions to McEwen, supporting forward sales and margining tools that manage volatility; gold traded above 2,000 USD/oz in 2024, underscoring price risk. Diverse counterparties reduce concentration exposure, while rapid electronic execution—often within milliseconds to seconds—allows capturing favorable prices on market moves.
LBMA benchmark pricing mechanisms
Sales settle against LBMA benchmarks to ensure transparent reference pricing; 2024 average LBMA spot gold near 2,100 USD/oz provided a clear market anchor. Pricing options—spot, daily averages or quotational periods (commonly 2–5 days)—fit operational cashflow and concentrate risk. Benchmark linkage facilitates hedging alignment and standardization reduces settlement disputes and enhances comparability across counterparties.
Investor relations and disclosures
Earnings calls, NI 43-101 technical reports and timely site updates communicate operational and financial progress to capital providers, supporting share liquidity and financing flexibility; ESG and safety reports meet investor and community expectations, while digital channels (IR site, LinkedIn, X) broaden global reach efficiently.
- Tickers: MUX (NYSE American), MUX (TSX)
- NI 43-101 technical reporting
- Quarterly earnings calls + site updates
- ESG/safety disclosures for stakeholders
Industry conferences and networks
Engagement at mining and metals forums such as PDAC 2024 (Feb 4-7) builds buyer and supplier ties, while heightened visibility attracts JV, royalty, or streaming interest; benchmarking against peers at these events informs McEwen Mining strategy and relationship building accelerates commercial negotiations.
- PDAC 2024 dates: Feb 4-7
- Drives JV/royalty/streaming interest
- Enables peer benchmarking
- Speeds commercial negotiations
Direct doré sales to refiners/banks leverage ~2,100 USD/oz market
Direct doré sales to refiners and bullion banks anchor McEwen Mining channels, reducing intermediaries and counterparty risk; 2024 LBMA average gold ~2,100 USD/oz and spot >2,000 USD/oz supported monetization. Electronic execution and credit lines enable forward sales and hedging; investor communications (NI 43-101, earnings, ESG) and PDAC 2024 (Feb 4-7) sustain liquidity and JV interest.
| Channel | 2024 Metric |
|---|---|
| Refiners/Bullion banks | LBMA avg ~2,100 USD/oz |
| IR/Events | PDAC Feb 4-7; tickers MUX (NYSE, TSX) |
Customer Segments
Precious metal refiners
Precious metal refiners are core buyers of McEwen doré, demanding consistent feed and reliability to process material typically containing 85–95% precious metals by mass. They are highly sensitive to quality, impurity levels and documentation, requiring detailed assays and transport chain records. Refiners value 1–5 year contracts and predictable logistics and increasingly require ethical sourcing and audit-ready counterparties.
Bullion banks and metal traders
Bullion banks and metal traders provide liquidity, credit and hedging alongside purchases, enabling McEwen Mining to monetize metal flows quickly; industry settlement conventions (often T+2) and transparent pricing reduce friction. They value operational reliability and strict counterparty risk controls, with tight refiner capacity able to push monetization timelines from days into weeks. Transparent settlement practices are preferred to limit execution risk.
Government mints and fabricators
Government mints and fabricators act as occasional end-users via refiner channels for coin and bar production, often sourcing from intermediaries; McEwen Mining reported roughly 90,000 attributable gold-equivalent ounces in 2024, supporting such demand. They require high-quality inputs and full traceability to meet technical and regulatory specs. Predictable supply schedules improve mint planning and inventory; responsible sourcing frameworks heavily influence purchase decisions and certification requirements.
Streaming and royalty companies
Streaming and royalty companies are key partners for McEwen Mining for project financing and risk sharing, offering upfront capital and off-balance-sheet structures in exchange for production streams or royalties. They seek long-life, low-cost ounces with clear visibility and reward disciplined operating practices and strong ESG performance. Major streamers like Franco-Nevada, Wheaton Precious Metals and Royal Gold lead the sector.
- Upfront capital for development
- Preference: long-life, low-cost ounces
- Value: operational discipline & ESG
- Partners: Franco-Nevada, Wheaton, Royal Gold
Institutional and retail investors
Institutional and retail investors (ticker MUX on NYSE American and MUX.TO on TSX in 2024) fund McEwen Mining's exploration and capital programs indirectly and focus on cost performance, reserve growth and jurisdictional risk; ESG and governance metrics materially affect market valuation, while clear 2024 guidance and quarterly disclosure support buy/sell decisions.
- Equity funding: indirect capital for exploration
- Key metrics: costs, reserves, jurisdictional risk
- ESG/governance: valuation driver
- Transparency: 2024 guidance aids investors
Refiners 85–95% doré; bullion T+2; mints ~90k AuEq oz
Precious metal refiners (require 85–95% precious-metal doré, long-term contracts, audit-ready documentation). Bullion banks/traders provide liquidity and hedging (industry settlement commonly T+2). Government mints/fabricators source high-quality, traceable inputs; McEwen reported ~90,000 attributable gold-equivalent ounces in 2024.
| Segment | Key 2024 Metric |
|---|---|
| Refiners | 85–95% purity required |
| Bullion banks | T+2 settlement |
| Mints | ~90,000 AuEq oz (2024) |
Cost Structure
Mining and processing operating costs
Labor, consumables, explosives, reagents and maintenance drive the bulk of McEwen Mining’s cash costs, with throughput and metallurgical recovery rates in 2024 remaining the primary levers on unit cost performance.
Reliability-centered maintenance programs implemented in 2024 have reduced unplanned downtime and lowered repair expenses, improving cost per tonne.
Supply contracts, bulk purchasing and tighter inventory management have been used in 2024 to hedge against inflation and stabilize input cost volatility.
Sustaining and development capital
McEwen Mining allocates sustaining and development capital—about US$40 million in 2024—toward underground development, fleet renewal, plant upgrades and tailings management to sustain production and meet safety and environmental compliance. Projects are prioritized to preserve throughput and regulatory standing, with stage-gated approvals to limit cost overruns and schedule risk. Higher unit capital intensity at key projects compresses free cash flow until incremental ounces are realized.
Exploration and resource definition
Drilling, assays and geologic modeling drive conversion of resources and discovery of new ounces, with McEwen allocating a US$25m exploration budget in 2024 toward these activities. Brownfield targeting at sites like Los Azules and Black Fox reduces discovery cost per ounce versus greenfield plays. Flexible, cycle-sensitive budgets allow ramp-ups in higher-price environments and pullbacks during downturns. Successful discoveries extend mine life and materially uplift NAV and valuation.
Royalties, taxes, and community investments
Royalties, income taxes and community investments form a major cost bucket for McEwen Mining; government royalties and corporate tax regimes differ by jurisdiction (US federal tax 21%, Canada roughly 25–27% combined, Argentina statutory tax around 35% in 2024). Surface rights, land payments and community programs sustain the social license and structured benefits reduce disruption risk, while proactive compliance avoids penalties and development delays.
- Jurisdictional tax examples: US 21%, Canada ~25–27%, Argentina ~35% (2024)
- Community payments and land rights crucial to social license
- Structured benefits lower operational disruption risk
- Proactive compliance prevents fines and schedule delays
G&A, permitting, and ESG compliance
Corporate overhead at McEwen Mining funds governance, finance, and external reporting, ensuring transparent investor relations and internal controls. Environmental monitoring, regular audits, and certifications create predictable recurring expenses tied to operating sites. Permitting, legal fees, insurance, and risk-management programs protect operations and limit downside exposure.
- G&A: governance, finance, reporting
- ESG: monitoring, audits, certifications
- Permitting/legal: safeguard operations
- Insurance: downside protection
Labor and reagents drive costs; US$40m sustaining and US$25m exploration squeeze 2024 FCF
Labor, consumables, reagents, maintenance and throughput/recovery are primary cash-cost drivers; 2024 unit performance improved via reliability maintenance. Sustaining capex ~US$40m and exploration US$25m in 2024 compress free cash flow until new ounces realized. Royalties/taxes (US 21%, Canada ~25–27%, Argentina ~35% 2024) plus G&A and ESG monitoring form the fixed cost base.
| Item | 2024 |
|---|---|
| Sustaining capex | US$40m |
| Exploration | US$25m |
| Tax rates | US 21% / CA 25–27% / AR 35% |
Revenue Streams
Gold doré sales
Gold doré sales are priced off LBMA spot (average ~USD 2,100/oz in 2024) less standard treatment and refining deductions, so realized revenue depends on mill feed grade and payable ounces; higher throughput/grade lifts value per period. Settlement terms and smelting credits affect working capital timing, while selective hedging can reduce quarter-to-quarter revenue volatility.
Silver by-product sales
Supplemental revenue from silver contained in doré or concentrates provides McEwen Mining with payables linked to LBMA silver benchmarks, adjusted by mine-specific payability factors. In 2024 silver averaged roughly $26–28/oz, typically enhancing unit economics at gold-focused operations and historically contributing an incremental 5–10% to total revenue, diversifying commodity exposure.
Equity income from San José JV
McEwen Mining’s 49% interest in the San José JV is recognized as equity income, with McEwen recording its proportionate share of net income in consolidated results. In 2024 this equity income and any cash distributions from the JV bolster corporate liquidity and working capital flexibility. JV earnings add geographic and asset-class diversification to consolidated performance. McEwen’s governance rights at 49% materially influence JV capital allocation and strategic decisions.
Hedging and derivative gains
Hedging and derivative gains generate occasional cash inflows from price risk management for McEwen Mining, typically used to support debt covenants or project funding needs.
These instruments require disciplined exposure limits to avoid over-hedging and potential cash shortfalls, and their net benefit is highly dependent on prevailing market conditions.
- occasional cash inflows
- supports debt covenants/project funding
- requires disciplined limits
- effectiveness driven by market conditions
Asset sales and option payments
McEwen Mining (ticker MUX on NYSE American and TSX as of 2024) monetizes non-core claims via asset sales, royalty deals and option payments to crystallize value from early-stage properties, reduce holding costs and preserve upside through contingent earn‑outs and royalties, deploying these tactics opportunistically in favorable commodity markets.
- Monetization: asset sales, royalties, option payments
- Purpose: realize early-stage value, cut holding costs
- Structure: contingencies/earn-outs retain upside
- Timing: used opportunistically in strong markets
2,100/oz gold; 49% JV; silver 5–10%
Gold doré sales (LBMA-linked, ~USD 2,100/oz in 2024) drive primary revenue, scaled by mill throughput and payable ounces. Silver (~USD 26–28/oz in 2024) adds ~5–10% incremental revenue. 49% San José JV equity income and opportunistic asset monetizations/hedges support cashflow and liquidity.
| Metric | 2024 |
|---|---|
| Gold price | ~USD 2,100/oz |
| Silver price | ~USD 26–28/oz |
| JV stake | 49% |
| Silver contribution | 5–10% |