McEwen Mining (MUX) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 05, 2015
Document and Entity Information
Entity Registrant Name	McEwen Mining Inc.
Entity Central Index Key	314,203
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		274,015,609
Exchangeable Common Stock, Shares Outstanding		26,514,565
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUE:
Gold and silver sales	$ 16,160	$ 11,637	$ 39,042	$ 22,767
Total Revenue	16,160	11,637	39,042	22,767
COSTS AND EXPENSES:
Production costs applicable to sales	7,288	10,900	17,742	19,427
Mine construction costs		217		1,156
Mine development costs	163	155	337	1,723
Exploration costs	3,080	2,637	5,422	5,317
Property holding costs	496	734	1,988	2,188
General and administrative	3,277	3,213	6,485	6,440
Depreciation	208	229	480	454
Accretion of asset retirement obligation (note 4)	131	108	232	209
Loss (income) on investment in Minera Santa Cruz S.A. net of amortization (note 5)	2,652	2,438	2,323	(4,591)
Impairment of mineral property interests and property and equipment (note 4)	28,542	120,398	28,542	120,398
Gain on sale of assets	(4)	(18)	(4)	(18)
Total costs and expenses	45,833	141,011	63,547	152,703
Operating loss	(29,673)	(129,374)	(24,505)	(129,936)
OTHER INCOME (EXPENSE):
Net interest and other income	3,228	34	3,130	109
Foreign currency gain (loss)	8	284	(204)	(299)
Total other income (expense)	3,236	318	2,926	(190)
Loss before income taxes	(26,437)	(129,056)	(21,579)	(130,126)
Income tax recovery (note 9)	12,321	25,034	13,484	43,991
Net loss	(14,116)	(104,022)	(8,095)	(86,135)
OTHER COMPREHENSIVE (LOSS) INCOME:
Unrealized (loss) gain on available-for-sale securities, net of taxes	(482)	2	(647)	3
Comprehensive loss	$ (14,598)	$ (104,020)	$ (8,742)	$ (86,132)
Net loss per share (note 10):
Basic (in dollars per share)	$ (0.05)	$ (0.35)	$ (0.03)	$ (0.29)
Weighted average common shares outstanding (thousands) (note 10):
Basic (in shares)	300,530	297,164	300,364	297,162

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 22,371	$ 12,380
Investments (note 2)	1,334	1,082
IVA taxes receivable	10,455	11,739
Inventories (note 3)	13,771	12,404
Other current assets	7,532	2,096
Total current assets	55,463	39,701
Mineral property interests (note 4)	258,625	287,812
Investment in Minera Santa Cruz S.A. (note 5)	174,147	177,018
Property and equipment, net	17,849	17,896
Other assets (note 14)	531	531
TOTAL ASSETS	506,615	522,958
Current liabilities:
Accounts payable and accrued liabilities	20,219	21,654
Short-term bank indebtedness (note 6)	5,764
Current portion of asset retirement obligation (note 4)	2,485	2,427
Total current liabilities	28,468	24,081
Asset retirement obligation, less current portion (note 4)	5,572	5,044
Deferred income tax liability (note 9)	38,201	51,899
Deferred lease inducement	304	319
Other liabilities	400	400
Total liabilities	72,945	81,743
Shareholders' equity:
Common stock, no par value, 500,000 shares authorized; Common: 273,381 as of June 30, 2015 and 271,579 shares as of December 31, 2014 issued and outstanding Exchangeable: 27,149 shares as of June 30, 2015 and 28,521 shares as of December 31, 2014 issued and outstanding (note 7)	1,361,865	1,360,668
Accumulated deficit	(927,672)	(919,577)
Accumulated other comprehensive (loss) income	(523)	124
Total shareholders' equity	433,670	441,215
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$ 506,615	$ 522,958

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	500,000	500,000
Common, shares issued	273,381	271,579
Common, shares outstanding	273,381	271,579
Exchangeable, shares issued	27,149	28,521
Exchangeable, shares outstanding	27,149	28,521

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit	Total
Balance at Dec. 31, 2013	$ 1,354,696	$ (295)	$ (607,634)	$ 746,767
Balance (in shares) at Dec. 31, 2013	297,159,000
Increase (Decrease) in Shareholders' Equity
Stock-based compensation	$ 609			609
Exercise of stock options	$ 129			129
Exercise of stock options (in shares)	61,000
Unrealized (loss) gain on available-for-sale securities, net of taxes		3		3
Net loss			(86,135)	(86,135)
Balance at Jun. 30, 2014	$ 1,355,434	(292)	(693,769)	661,373
Balance (in shares) at Jun. 30, 2014	297,220,000
Balance at Dec. 31, 2014	$ 1,360,668	124	(919,577)	441,215
Balance (in shares) at Dec. 31, 2014	300,100,000
Increase (Decrease) in Shareholders' Equity
Shares issued for settlement of accounts payable	$ 443			443
Shares issued for settlement of accounts payable (in shares)	430,295
Stock-based compensation	$ 754			754
Unrealized (loss) gain on available-for-sale securities, net of taxes		(647)		(647)
Net loss			(8,095)	(8,095)
Balance at Jun. 30, 2015	$ 1,361,865	$ (523)	$ (927,672)	$ 433,670
Balance (in shares) at Jun. 30, 2015	300,530,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Cash paid to suppliers and employees	$ (32,379)	$ (37,085)
Cash received from gold and silver sales	37,711	22,767
Dividends received from Minera Santa Cruz S.A. (note 5)	548	7,113
Interest received	87	109
Cash provided by (used in) operating activities	5,967	(7,096)
Cash flows from investing activities:
Investment in available-for-sale securities (note 2)	(1,114)
Additions to property and equipment	(433)	(2,297)
Decrease to restricted time deposits for reclamation bonding		367
Proceeds from disposal of property and equipment		31
Cash used in investing activities	(1,547)	(1,899)
Cash flows from financing activities:
Short-term bank indebtedness (note 6)	5,764
Exercise of stock options		129
Cash provided by financing activities	5,764	129
Effect of exchange rate change on cash and cash equivalents	(193)	(306)
Increase (decrease) in cash and cash equivalents	9,991	(9,172)
Cash and cash equivalents, beginning of period	12,380	24,321
Cash and cash equivalents, end of period	22,371	15,149
Reconciliation of net loss to cash used in operating activities:
Net loss	(8,095)	(86,135)
Adjustments to reconcile net income (loss) to from operating activities:
Loss (income) on investment in Minera Santa Cruz S.A. net of amortization	2,323	(4,591)
Impairment of mineral property interests and property and equipment (note 4)	28,542	120,398
Gain on sale of assets	(4)	(18)
Recovery of income taxes	(13,484)	(43,991)
Stock-based compensation	754	609
Depreciation	480	454
Accretion of asset retirement obligation	591	209
Amortization of mineral property interests and asset retirement obligations	644	626
Foreign exchange loss	193	306
Change in non-cash working capital items:
Decrease (increase) in IVA taxes receivable, including collections of $4,026 (2014 - $nil)	1,284	(2,892)
Increase in other assets related to operations	(6,802)	(1,624)
(Decrease) increase in liabilities related to operations	(1,007)	2,440
Dividend received from Minera Santa Cruz S.A.	548	7,113
Cash provided by (used in) operating activities	$ 5,967	$ (7,096)

CONSOLIDATED STATEMENTS OF CAS7

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Collection of IVA taxes receivable	$ 4,026

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Basis of Presentation McEwen Mining Inc. (the “Company” or “McEwen Mining”) was organized under the laws of the State of Colorado on July 24, 1979. Since inception, the Company has been engaged in the exploration for, development of, production and sale of gold and silver. The Company operates in Argentina, Mexico, and the United States. It owns a 49% interest in Minera Santa Cruz S.A. (“MSC”), owner and operator of the producing San José mine in Santa Cruz, Argentina, which is controlled by the majority owner of the joint venture, Hochschild Mining plc (‘‘Hochschild’’). It also owns the El Gallo 1 Mine in Sinaloa, Mexico. In addition to its operating properties, the Company also holds interests in numerous exploration stage properties and projects in Argentina, Mexico and the United States. The interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) has been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In management’s opinion, the unaudited Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2015 and 2014, the Consolidated Balance Sheets as at June 30, 2015 (unaudited) and December 31, 2014, the unaudited Consolidated Statement of Changes in Shareholders’ Equity for the six months ended June 30, 2015 and 2014, and the unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited consolidated financial statements. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Therefore these financial statements should be read in conjunction with the audited financial statements and notes thereto and summary of significant accounting policies included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Recently Adopted Accounting Pronouncements Presentation of Financial Statements and Property, Plant and Equipment — Reporting Discontinued Operations and Disclosures of Components of an Entity: In April 2014, Accounting Standards Codification (“ASC”) 205 and ASC 360 guidance were amended to change the requirements for reporting discontinued operations in ASC 205-20. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria in ASC 205-20-45-1E to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; or (3) the component of an entity or group of components of an entity is disposed of other than by sale. The update is effective for the Company’s fiscal year beginning January 1, 2015. The new guidance did not have an impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Presentation of Financial Statements — Going Concern — Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern: In August 2014, ASC 205-40 guidance was amended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update shall be effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016, with early application permitted. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements. Revenue from Contracts with Customers: In May 2014, ASC 606 was issued related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The standard will be effective for fiscal years beginning after December 15, 2017, including interim reporting periods within that year. The Company is evaluating the effect that the updated standard will have on its consolidated financial statements.

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2015
INVESTMENTS
INVESTMENTS	NOTE 2 INVESTMENTS During the quarter ended June 30, 2015 , the Company invested $1.1 million of cash in marketable equity securities. As of June 30, 2015, total cost of all marketable equity securities was $1.9 million (December 31, 2014 - $0.7 million). These securities are classified as available-for-sale securities and are recorded at fair value. As at June 30, 2015 , the fair value of these securities was $1.3 million, and as a result the Company recorded a loss, net of tax, of $0.5 million in other comprehensive income. The loss is recorded to an unrealized income and loss account (accumulated other comprehensive income (loss)) that is reported as a separate line item in the shareholders’ equity section of the balance sheet. The gains and losses for available-for-sale securities are not reported on the statement of operations until the securities are sold or if there is an other than temporary decline in fair value below cost, for the three months ended June 30, 2015.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2015
INVENTORIES
INVENTORIES	NOTE 3 INVENTORIES Inventories at June 30, 2015 and December 31, 2014 consist of the following: June 30, 2015 December 31, 2014 (in thousands) Ore on leach pads $ $ In-process inventory Stockpiles — Precious metals Materials and supplies Inventories $ $

MINERAL PROPERTY INTERESTS AND

MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS	6 Months Ended
	Jun. 30, 2015
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS
MINERAL PROPERTY INTEREST AND ASSET RETIREMENT OBLIGATIONS	NOTE 4 MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS Mineral Property Interests The Company conducts a review of potential triggering events for all its mineral projects on a quarterly basis. When events or changes in circumstances indicate that the related carrying amounts may not be recoverable, the Company carries out a review and evaluation of its long-lived assets for impairment, in accordance with its accounting policy. During the quarter ended June 30, 2015, the Company performed a strategic review of its mineral property interests in Nevada. A decision was made to allow certain non-essential claims and portions of claims, included within the Gold Bar Complex and Tonkin Complex, to lapse on the September 1, 2015 renewal date and therefore reduce property holding costs that otherwise would have been incurred in the third quarter of 2015. This resulted in a pre-tax impairment charge of $19.7 million for the Gold Bar project and $8.9 million for the Tonkin Project, and an income tax recovery of $10.0 million recognized in the Statement of Operations and Comprehensive Loss for the three and six months ended June 30, 2015. During the second quarter of 2014, the Company recorded an impairment charge of $120.4 million relating to its Los Azules copper exploration project (“Los Azules Project”). The triggering event identified was a recently announced acquisition of a copper project located in Argentina, which shared similarities with the Los Azules Project due to its scale, location, and stage of development. Based on the announcement day value of the similar project, the estimated market value per pound of copper equivalent mineralized material from this transaction was below the carrying value per pound of copper equivalent mineralized material of the Los Azules Project, indicating a potential significant decrease in the market price of the Company’s Los Azules Project, and therefore a requirement to test the Los Azules Project for recoverability. To assist in performing a recoverability test, the Company engaged a third-party valuation firm which determined that the carrying value of the property exceeded its estimated fair value, resulting in an impairment charge of $120.4 million, along with a resulting deferred income tax recovery of $22.5 million, being recorded in the Statement of Operations and Comprehensive Loss for the three and six months ended June 30, 2014. Based on the above, impairment changes were recorded on the following mineral property interests for the three and six months ended June 30, 2015 and 2014: Three months ended June 30, Six months ended June 30, Name of Property/Complex Segment 2015 2014 2015 2014 (in thousands) Gold Bar Project Nevada $ $ — $ $ — Tonkin Project Nevada — — Los Azules Copper Project Argentina — — Total impairments $ $ $ $ Asset Retirement Obligations The Company is responsible for reclamation of certain past and future disturbances at its properties. The two most significant properties subject to these obligations are the historic Tonkin property in Nevada and the El Gallo 1 Mine in Mexico. A reconciliation of the Company’s asset retirement obligations for the six months ended June 30, 2015 and for the year ended December 31, 2014 are as follows: Six months ended Year ended June 30, 2015 December 31, 2014 (in thousands) Asset retirement obligation liability, beginning balance $ $ Settlements — ) Accretion of liability Adjustment reflecting updated estimates ) Asset retirement obligation liability, ending balance $ $ As at June 30, 2015, the current portion of the asset retirement obligation was $2.5 million (December 31, 2014 - $2.4 million). Amortization of Mineral Property Interests and Asset Retirement Costs The definition of proven and probable reserves is set forth in the SEC Industry Guide 7. If proven and probable reserves exist at the Company’s properties, the relevant capitalized mineral property interests and asset retirement costs are to be charged to expense based on the units of production method and upon commencement of production. Since the Company has not completed feasibility or other studies sufficient to characterize the mineralized material at El Gallo 1 as proven or probable reserves, the amortization of the capitalized mineral property interests and asset retirement costs are charged to expense based on the straight-line method over the estimated useful life of the mine. For the three and six months ended June 30, 2015, the Company recorded $0.3 million and $0.6 million, respectively (June 30, 2014 $0.3 million and $0.6 million respectively), of amortization expense related to El Gallo 1, which is included in Production Costs Applicable to Sales in the Statement of Operations and Comprehensive Loss for the three and six months ended June 30, 2015, of which $0.1 million and $0.1 million, respectively, related to the amortization of capitalized asset retirement costs (June 30, 2014 $0.1 and $0.1 respectively) .

INVESTMENT IN MINERA SANTA CRUZ

INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE	6 Months Ended
	Jun. 30, 2015
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE	NOTE 5 INVESTMENT IN MINERA SANTA CRUZ S.A. (“MSC”) — SAN JOSÉ MINE The Company’s 49% attributable share of operations from its investment in MSC was a loss of $2.7 million and $2.3 million for the three and six months ended June 30, 2015, respectively. This compares to a loss of $2.4 million and income of $4.6 million for the three and six months ended June 30, 2014, respectively. These amounts are net of the amortization of the fair value increments arising from the purchase price allocation and related income tax expense. Included in the income tax recovery is the impact of fluctuations in the exchange rate between the Argentine peso and the U.S. dollar on the peso-denominated deferred tax liability associated with the investment in MSC recorded as part of the acquisition of Minera Andes. As a devaluation of the Argentine peso relative to the U.S. dollar results in a recovery of deferred income taxes, the impact has been a reduction in the loss from its investment in MSC for the three and six months ended June 30, 2015. During the three and six months ended June 30, 2015, the Company received $0.5 million in dividends from MSC, compared to $3.2 million and $7.1 million during the same period in 2014. The Company received an additional dividend payment of 8.1 million Argentine pesos in July 2014, equivalent to approximately $1.0 million based on foreign exchange rates at the date of the dividend receipt. Changes in the Company’s investment in MSC for the six months ended June 30, 2015 and year ended December 31, 2014 are as follows: Six months ended Year ended June 30, 2015 December 31, 2014 (in thousands) Investment in MSC, beginning balance $ $ Attributable net (loss) income from MSC ) ) Amortization of fair value increments ) ) Income tax recovery Dividends received ) ) Impairment of investment in MSC — ) Investment in MSC, ending balance $ $ A summary of the operating results from MSC for the three and six months ended June 30, 2015 and 2014 is as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Minera Santa Cruz S.A. (100%) Net sales $ $ $ $ Production costs applicable to sales ) ) ) ) Net (loss) income ) ) ) Portion attributable to McEwen Mining Inc. (49%) Net (loss) income $ ) $ ) $ ) $ Amortization of fair value increments ) ) ) ) Income tax recovery (Loss) income on investment in MSC, net of amortization $ ) $ ) $ ) $ As at June 30, 2015, MSC had current assets of $97.9 million, total assets of $509.5 million, current liabilities of $46.0 million and total liabilities of $154.0 million on an unaudited basis. These balances include the adjustments to fair value and amortization of the fair value increments arising from the purchase price allocation, net of impairment charges recorded in the second quarter of 2013 and fourth quarter of 2014. Excluding the fair value increments from the purchase price allocation, net of impairment charges, MSC had current assets of $96.5 million, total assets of $292.7 million, current liabilities of $48.4 million, and total liabilities of $85.7 million as at June 30, 2015.

SHORT-TERM BANK INDEBTEDNESS

SHORT-TERM BANK INDEBTEDNESS	6 Months Ended
	Jun. 30, 2015
SHORT-TERM BANK INDEBTEDNESS
SHORT-TERM BANK INDEBTEDNESS	NOTE 6 SHORT-TERM BANK INDEBTEDNESS On May 29, 2015, Compañía Minera Pangea, a wholly-owned subsidiary of the Company (“CMP”), finalized a line of credit agreement with Banco Nacional de Comercio Exterior (“Banco Nacional”), for an amount up to 90,000,000 Mexican pesos (approximately $5.9 million as of May 29, 2015), which is secured by CMP’s IVA receivable balance. The line of credit was available for six (6) months starting April 17, 2015. The applicable interest rate is equal to: (i) two and one-half percent (2.5%) per annum plus (ii) the 91 day TIIE (Interbank Equilibrium Interest Rate) rate, as published by the Bank of Mexico, payable quarterly. As of June 30, 2015, the 91 day TIIE rate was 3.31%. Upon signing the agreement, CMP paid a 1% commission on the total value of the simple credit agreement to Banco Nacional. During the period ended June 30, 2015 CMP drew down the entire 90,000,000 Mexican pesos, equivalent to $5.8 million as of June 30, 2015 from the line of credit, and realized a foreign exchange gain of approximately $0.1 million during the period. The Company has guaranteed CMP’s obligations under the line of credit.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	NOTE 7 SHAREHOLDERS’ EQUITY During the six months ended June 30, 2015, 1.4 million exchangeable shares were converted into common stock (2014 – 1.2 million). At June 30, 2015, total outstanding exchangeable shares not exchanged and not owned by the Company or its subsidiaries totaled 27.1 million (December 31, 2014 – 28.5 million). During the six months ended June 30, 2015, there were no shares of common stock issued upon exercise of stock options under the Equity Incentive Plan. This compares to approximately 60,300 shares of common stock issued upon exercise of stock options during the same period of 2014, at a weighted average exercise price of $2.14 per share for proceeds of $0.1 million. During the six months ended June 30, 2015, the Company issued 430,295 shares of common stock under an agreement with one of its mining contractors to settle parts of its accounts payable for services rendered above a defined tonnage threshold. The fair value of the common stock at the time of issuance was $0.4 million. The agreement with this mining contractor expired and was renegotiated during the period. Under the revised agreement, the Company can no longer make share payments and instead is required to pay in cash. On June 18, 2015, the Board of Directors declared an annual return of capital of $0.01 per share of common stock, payable semi-annually. The first semi-annual return of capital payment of $0.005 is payable on August 17, 2015 to shareholders of record as of the close of business on July 31, 2015. Return of capital will be paid to shareholders of the Company’s shares of common stock and to holders of exchangeable shares. The second installment will occur in February 2016.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 8 STOCK-BASED COMPENSATION During the six months ended June 30, 2015, the Company granted stock options to certain employees for an aggregate of 0.1 million shares of common stock at a weighted average exercise price of $1.07 per share. The options vest equally over a three-year period if the individual remains affiliated with the Company (subject to acceleration of vesting in certain events) and are exercisable for a period of 5 years from the date of issue. During the comparable period in 2014, no stock options were granted to employees or directors. The principal assumptions used in applying the Black-Scholes option pricing model for these awards were as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Risk-free interest rate % — % — Dividend yield % — % — Volatility factor of the expected market price of common stock % — % — Weighted-average expected life of option — — Weighted-average grant date fair value $ — $ — During the three and six months ended June 30, 2015, the Company recorded stock option expense of $0.2 million and $0.8 million respectively. This compares to $0.2 million and $0.6 million for the three and six months ended June 30, 2014.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
INCOME TAXES
INCOME TAXES	NOTE 9 INCOME TAXES The Company’s income tax expense differs from the amount computed by applying the U.S. federal and state statutory corporate income tax rate of 35% to losses before taxes primarily as a result of valuation allowances being applied to losses, changes in the deferred tax liability associated with mineral property interests acquired in the Minera Andes acquisition and changes due to impairment of mineral property interests. The deferred tax liability is impacted by fluctuations in the foreign exchange rate between the Argentine peso and U.S. dollar. For the three and six months ended June 30, 2015, the Company recorded an income tax recovery of $0.8 million and $2.0 million, respectively, as a result of the Argentine peso devaluation, compared to $2.5 million and $21.4 million for the three and six months ended June 30, 2014, respectively. For the three and six months ended June 30, 2015, the Company recorded an income tax recovery of $10.0 million as a result of impairment of mineral property interests, described in Note 4, Mineral Property Interests and Asset Retirement Obligations.

LOSS PER SHARE

LOSS PER SHARE	6 Months Ended
	Jun. 30, 2015
LOSS PER SHARE
LOSS PER SHARE	NOTE 10 LOSS PER SHARE Basic net loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed similarly except that the weighted average number of common shares is increased to reflect all dilutive instruments. Below is a reconciliation of the basic weighted average number of common shares and the computations for basic loss per share for the three and six months ended June 30, 2015 and 2014: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in thousands, except per share) Net loss $ ) $ ) $ ) $ ) Weighted average number of common shares Loss per common share $ ) $ ) $ ) $ ) For the three months ended June 30, 2015, options to purchase 4.4 million shares of common stock outstanding at June 30, 2015 at an average exercise price of $3.36 per share were not included in the computation of diluted weighted average shares because the exercise price exceeded the average price of the Company’s common stock for the three months ended June 30, 2015. Outstanding options to purchase 0.05 million (June 30, 2014 – 0.9 million) shares of common stock were not included in the computation of diluted weighed average shares in the three months ended June 30, 2015 and 2014, respectively, because their effect would have been anti-dilutive. For the six months ended June 30, 2015, options to purchase 4.4 million shares of common stock outstanding at June 30, 2015 at an average exercise price of $3.49 per share were not included in the computation of diluted weighted average shares because the exercise price exceeded the average price of the Company’s common stock for the six months ended June 30, 2015. Other outstanding options to purchase 0.08 million (June 30, 2014 – 1.1 million) shares of common stock were not included in the computation of diluted weighed average shares in the three months ended June 30, 2015 and 2014, respectively, because their effect would have been anti-dilutive.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 11 RELATED PARTY TRANSACTIONS For the three and six months ended June 30, 2015, the Company incurred and paid $nil and $16,137, respectively, to an entity affiliated with the Company’s Chairman and Chief Executive Officer for the use of an aircraft, compared to $18,038 and $38,518 for the three and six months ended June 30, 2014, respectively.

SEGMENTED INFORMATION

SEGMENTED INFORMATION	6 Months Ended
	Jun. 30, 2015
SEGMENTED INFORMATION
SEGMENTED INFORMATION	NOTE 12 SEGMENTED INFORMATION McEwen Mining is a mining and minerals exploration, development and production company focused on precious metals in Argentina, Mexico and the United States. The Company identifies its reportable segments as those consolidated operations that are currently engaged in the exploration for and production of precious metals. Operations not actively engaged in the exploration for, or production of precious metals, are aggregated at the corporate level for segment reporting purposes. The financial information relating to the Company’s operating segments as of, and for the three and six months ended June 30, 2015 and 2014 is as follows: Corporate Argentina Mexico U.S. & Other Total (in thousands) For the three months ended June 30, 2015 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — — — — — Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment — — ) — ) Loss on investment in Minera Santa Cruz S.A. (net of amortization) ) — — — ) Operating (loss) income ) ) ) ) For the six months ended June 30, 2015 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — — — — — Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment — — ) — ) Income on investment in Minera Santa Cruz S.A. (net of amortization) ) — — — ) Operating (loss) income ) ) ) ) As at June 30, 2015 Investment in Minera Santa Cruz S.A. — — — Mineral property interests — Total assets Corporate Argentina Mexico U.S. & Other Total (in thousands) For the three months ended June 30, 2014 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — ) — — ) Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment ) — — — ) Loss on investment in Minera Santa Cruz S.A. (net of amortization) ) — — — ) Operating loss ) ) ) ) ) For the six months ended June 30, 2014 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — ) — — ) Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment ) — — — ) Income on investment in Minera Santa Cruz S.A. (net of amortization) — — — Operating loss ) ) ) ) ) As at June 30, 2014 Investment in Minera Santa Cruz S.A. — — — Mineral property interests — Total assets

FAIR VALUE ACCOUNTING

FAIR VALUE ACCOUNTING	6 Months Ended
	Jun. 30, 2015
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING	NOTE 13 FAIR VALUE ACCOUNTING Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Assets and liabilities measured at fair value on a recurring basis The following table identifies the fair value of the Company’s financial assets and liabilities as reported in the Consolidated Balance Sheets at June 30, 2015 and December 31, 2014 by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value as at June 30, 2015 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investments $ $ $ — $ — $ $ $ — $ — Fair Value as at December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investments $ $ $ — $ — $ $ $ — $ — Liabilities: Accounts payable and accrued liabilities — — $ $ $ — $ — The Company’s investments are marketable equity securities which are exchange traded, and which are valued using quoted market prices in active markets and are classified within Level 1 of the fair value hierarchy. The fair value of the investments is calculated as the quoted market price of the marketable equity security multiplied by the number of shares held by the Company. As at December 31, 2014, accounts payable included an accrual of $0.4 million for the fair value of accounts payable that were required to be settled with approximately 319,640 shares of the Company’s common stock. The Company settled this payable during the six month period ended in June 30, 2015 as discussed in Note 7, Shareholders’ Equity . The fair value of other financial assets and liabilities approximate their carrying values due to their short-term nature and historically negligible credit losses.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	NOTE 14 COMMITMENTS AND CONTINGENCIES Surety Bonds As part of its ongoing business and operations, the Company is required to provide bonding for its environmental reclamation obligations in the United States, as discussed in Note 4, Mineral Properties and Asset Retirement Obligations . These surety bonds are available for draw down in the event the Company does not perform its reclamation obligations. When the specific reclamation requirements are met, the beneficiary of the surety bonds will cancel and/or return the instrument to the issuing entity. The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise. As at June 30, 2015, there were $4.8 million of outstanding surety bonds (December 31, 2014 - $4.8 million). The annual financing fees are 1.5% of the value of the surety bonds, with a required initial deposit of 10% ($0.5 million), which is included in Other Assets in the Consolidated Balance Sheet.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENT.
SUBSEQUENT EVENTS	NOTE 15 SUBSEQUENT EVENT On July 16, 2015, the Company received reimbursement for approximately 80% of the fair value of the loss due to the robbery of gold concentrate that occurred on April 7, 2015 at the El Gallo 1 Mine. The amount of insurance proceeds receivable has been accrued at June 30, 2015 under Other Current Assets and recorded in the Consolidated Statements of Operations and Comprehensive Loss as a credit to cost of sales for the cost incurred in producing the ounces stolen, and the excess of the insurance proceeds over the cost of production has been recorded in Net Interest and Other Income .

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2015
INVENTORIES
Schedule of inventories	June 30, 2015 December 31, 2014 (in thousands) Ore on leach pads $ $ In-process inventory Stockpiles — Precious metals Materials and supplies Inventories $ $

MINERAL PROPERTY INTERESTS AN24

MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2015
MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS
Schedule of impairment charges on mineral property	Three months ended June 30, Six months ended June 30, Name of Property/Complex Segment 2015 2014 2015 2014 (in thousands) Gold Bar Project Nevada $ $ — $ $ — Tonkin Project Nevada — — Los Azules Copper Project Argentina — — Total impairments $ $ $ $
Schedule of reconciliation of asset retirement obligations	Six months ended Year ended June 30, 2015 December 31, 2014 (in thousands) Asset retirement obligation liability, beginning balance $ $ Settlements — ) Accretion of liability Adjustment reflecting updated estimates ) Asset retirement obligation liability, ending balance $ $

INVESTMENT IN MINERA SANTA CR25

INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables)	6 Months Ended
	Jun. 30, 2015
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Schedule of change in the entity's investment in MSC	Six months ended Year ended June 30, 2015 December 31, 2014 (in thousands) Investment in MSC, beginning balance $ $ Attributable net (loss) income from MSC ) ) Amortization of fair value increments ) ) Income tax recovery Dividends received ) ) Impairment of investment in MSC — ) Investment in MSC, ending balance $ $
Summary of MSC's financial information from operations	Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Minera Santa Cruz S.A. (100%) Net sales $ $ $ $ Production costs applicable to sales ) ) ) ) Net (loss) income ) ) ) Portion attributable to McEwen Mining Inc. (49%) Net (loss) income $ ) $ ) $ ) $ Amortization of fair value increments ) ) ) ) Income tax recovery (Loss) income on investment in MSC, net of amortization $ ) $ ) $ ) $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
STOCK-BASED COMPENSATION
Schedule of weighted-average assumptions used for estimation of the fair value of the options granted under the Plan at the date of grant, using the Black-Scholes Option Valuation Model	Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Risk-free interest rate % — % — Dividend yield % — % — Volatility factor of the expected market price of common stock % — % — Weighted-average expected life of option — — Weighted-average grant date fair value $ — $ —

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
LOSS PER SHARE
Schedule of reconciliation of the basic weighted average number of common shares and the computations for basic loss per share	Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in thousands, except per share) Net loss $ ) $ ) $ ) $ ) Weighted average number of common shares Loss per common share $ ) $ ) $ ) $ )

SEGMENTED INFORMATION (Tables)

SEGMENTED INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
SEGMENTED INFORMATION
Schedule of the financial information relating to the Company's segments	Corporate Argentina Mexico U.S. & Other Total (in thousands) For the three months ended June 30, 2015 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — — — — — Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment — — ) — ) Loss on investment in Minera Santa Cruz S.A. (net of amortization) ) — — — ) Operating (loss) income ) ) ) ) For the six months ended June 30, 2015 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — — — — — Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment — — ) — ) Income on investment in Minera Santa Cruz S.A. (net of amortization) ) — — — ) Operating (loss) income ) ) ) ) As at June 30, 2015 Investment in Minera Santa Cruz S.A. — — — Mineral property interests — Total assets Corporate Argentina Mexico U.S. & Other Total (in thousands) For the three months ended June 30, 2014 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — ) — — ) Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment ) — — — ) Loss on investment in Minera Santa Cruz S.A. (net of amortization) ) — — — ) Operating loss ) ) ) ) ) For the six months ended June 30, 2014 Gold and silver sales $ — $ $ — $ — $ Production costs applicable to sales — ) — — ) Mine construction costs — ) — — ) Mine development costs — ) — — ) Exploration costs ) ) ) ) ) Impairment of mineral property interests and property and equipment ) — — — ) Income on investment in Minera Santa Cruz S.A. (net of amortization) — — — Operating loss ) ) ) ) ) As at June 30, 2014 Investment in Minera Santa Cruz S.A. — — — Mineral property interests — Total assets

FAIR VALUE ACCOUNTING (Tables)

FAIR VALUE ACCOUNTING (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE ACCOUNTING
Schedule of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy	Fair Value as at June 30, 2015 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investments $ $ $ — $ — $ $ $ — $ — Fair Value as at December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investments $ $ $ — $ — $ $ $ — $ — Liabilities: Accounts payable and accrued liabilities — — $ $ $ — $ —

NATURE OF OPERATIONS AND SUMM30

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2015	Jun. 30, 2014
MSC
THE COMPANY
Ownership interest (as a percent)	49.00%	49.00%

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
INVESTMENTS
Cash investments in marketable equity securities	$ 1,100
Cost of purchase of marketable equity securities	1,900	$ 700
Market value of available-sale-securities	1,334	$ 1,082
Unrealized loss on available-for-sale securities	$ 500

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
INVENTORIES
Ore on leach pads	$ 6,846	$ 6,221
In-process inventory	3,051	2,302
Stockpiles	841
Precious metals	1,762	2,403
Materials and supplies	1,271	1,478
Inventories	$ 13,771	$ 12,404

MINERAL PROPERTY INTERESTS AN33

MINERAL PROPERTY INTERESTS AND ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Mineral Property Interests
Impairment charges	$ 28,542	$ 120,398	$ 28,542	$ 120,398
Recovery of deferred income tax	10,000		10,000
Income tax recovery	(12,321)	(25,034)	(13,484)	(43,991)
Changes in the asset retirement obligations
Amortization of mineral property interests and asset retirement obligations			644	626
Asset retirement obligation liability, beginning balance			7,471	7,247	$ 7,247
Settlements					(52)
Accretion of liability	131	108	232	209	407
Adjustment reflecting updated estimates			354		(131)
Asset retirement obligation liability, ending balance	8,057		8,057		7,471
Current portion of the asset retirement obligation	2,485		2,485		2,427
MSC
Mineral Property Interests
Income tax recovery	2,240	1,182	4,652	7,883	$ 10,503
Gold Bar Project | Nevada
Mineral Property Interests
Impairment charges	19,686		19,686
Tonkin Project | Nevada
Mineral Property Interests
Impairment charges	8,856		8,856
Los Azules Copper Project
Mineral Property Interests
Impairment charges		120,400		120,400
Recovery of deferred income tax		22,500		22,500
Income tax recovery	$ 10,000		$ 10,000
Los Azules Copper Project | Argentina
Mineral Property Interests
Impairment charges		120,398		120,398
Tonkin property and El Gallo 1 mine portion of the El Gallo Complex
Changes in the asset retirement obligations
Number of most significant properties subject to reclamation obligations | item	2		2
El Gallo mine
Changes in the asset retirement obligations
Amortization of mineral property interests and asset retirement obligations	$ 300	300	$ 600	600
Amortization of capitalized asset retirement costs	$ 100	$ 100	$ 100	$ 100

INVESTMENT IN MINERA SANTA CR34

INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details) $ in Thousands, ARS in Millions	1 Months Ended		3 Months Ended	6 Months Ended
	Jul. 31, 2014ARS	Jul. 31, 2014USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Dividends received				$ 548	$ 7,113
MSC
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Ownership interest (as a percent)			49.00%	49.00%	49.00%
Dividends received	ARS 8.1	$ 1,000	$ 3,200	$ 500	$ 7,100

INVESTMENT IN MINERA SANTA CR35

INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Change in the investment in MSC
Investment in MSC, beginning balance			$ 177,018
Income tax recovery	$ (12,321)	$ (25,034)	(13,484)	$ (43,991)
Investment in MSC, ending balance	174,147	210,425	174,147	210,425	$ 177,018
MSC
Change in the investment in MSC
Investment in MSC, beginning balance			177,018	212,947	212,947
Attributable net (loss) income from MSC	(1,491)	(191)	(887)	2,838	(2,597)
Amortization of fair value increments	(3,401)	(3,429)	(6,088)	(6,130)	(13,190)
Income tax recovery	2,240	$ 1,182	4,652	$ 7,883	10,503
Dividends received			(548)		(9,483)
Impairment of investment in MSC					(21,162)
Investment in MSC, ending balance	$ 174,147		$ 174,147		$ 177,018

INVESTMENT IN MINERA SANTA CR36

INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Income tax recovery	$ (12,321)	$ (25,034)	$ (13,484)	$ (43,991)
(Loss) income on investment in MSC, net of amortization	$ (2,652)	$ (2,438)	$ (2,323)	$ 4,591
MSC
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Net sales percentage	100.00%	100.00%	100.00%	100.00%
Net sales	$ 49,858	$ 53,234	$ 95,749	$ 110,123
Production costs applicable to sales	(41,310)	(41,847)	(78,173)	(81,484)
Net (loss) income	$ (3,042)	$ (390)	$ (1,810)	$ 5,792
Ownership interest (as a percent)	49.00%	49.00%	49.00%	49.00%
Net (loss) income	$ (1,491)	$ (191)	$ (887)	$ 2,838	$ (2,597)
Amortization of fair value increments	(3,401)	(3,429)	(6,088)	(6,130)	(13,190)
Income tax recovery	2,240	1,182	4,652	7,883	$ 10,503
(Loss) income on investment in MSC, net of amortization	$ (2,652)	$ (2,438)	$ (2,323)	$ 4,591

INVESTMENT IN MINERA SANTA CR37

INVESTMENT IN MINERA SANTA CRUZ S.A. (''MSC'') - SAN JOSE MINE (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Current assets	$ 55,463	$ 39,701
Total assets	506,615	522,958	$ 796,270
Current liabilities	28,468	24,081
Total liabilities	72,945	$ 81,743
MSC
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Current assets	97,900
Total assets	509,500
Current liabilities	46,000
Total liabilities	154,000
MSC | Current Period Values Excluding Fair Value Increments And Impairment Charge
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE
Current assets	96,500
Total assets	292,700
Current liabilities	48,400
Total liabilities	$ 85,700

SHORT-TERM BANK INDEBTEDNESS (D

SHORT-TERM BANK INDEBTEDNESS (Details) - Line of Credit. - Secured Debt $ in Millions	May. 29, 2015MXN	Jun. 30, 2015USD ($)	Jun. 30, 2015MXN	Jun. 30, 2015USD ($)	May. 29, 2015USD ($)
SHORT TERM BANK INDEBTEDNESS
Maximum borrowing amount	MXN 90,000,000		MXN 90,000,000	$ 5.8	$ 5.9
Foreign exchange gain		$ 0.1
Term of line of credit	6 months
Applicable interest rate (as a percent)	2.50%
Commission fee (as a percent)	1.00%
TIIE (Interbank Equilibrium Interest Rate)
SHORT TERM BANK INDEBTEDNESS
Interest rate basis	91 day TIIE (Interbank Equilibrium Interest Rate)	91 day TIIE rate
Stated interest rate (as a percent)			3.31%	3.31%

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands	Jun. 18, 2015$ / shares	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2014USD ($)shares	Jul. 31, 2015$ / shares	Dec. 31, 2014shares
Exchangeable shares converted into common stock		1,400,000	1,200,000
Exchangeable, shares outstanding		27,100,000			28,500,000
Common stock issued		273,381,000			271,579,000
Proceed from exercised stock options | $			$ 129
Number of mining contractors with which the entity has entered into an agreement | item		1
Fair Value of common stock at issuance | $		$ 443
Common Stock
Common stock issued		0
Shares of common stock issued upon exercise of stock options			61,000
Weighted average exercise price of stock options (in dollars per share) | $ / shares		$ 2.14
Shares issued for settlement of accounts payable (in shares)		430,295
Annual return of capital declared (in dollars per share) | $ / shares	$ 0.01
First semi-annual return of capital payable (in dollars per share) | $ / shares				$ 0.005
Fair Value of common stock at issuance | $		$ 443

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
STOCK BASED COMPENSATION
Stock option expense	$ 0.2	$ 0.2	$ 0.8	$ 0.6
Principal assumptions used in applying the Black-Scholes option pricing model for the awards
Risk-free interest rate (as a percent)	1.12%		1.10%
Dividend yield (as a percent)	0.00%		0.00%
Volatility factor of the expected market price of common stock (as a percent)	72.90%		74.08%
Weighted-average expected life of option	3 years 6 months		3 years 6 months
Weighted-average grant date fair value (in dollars per share)	$ 0.58		$ 0.56
Certain employees and directors
STOCK BASED COMPENSATION
Stock options granted (in shares)	0.1	0	0.1	0
Exercise price of options granted (in dollars per share)	$ 1.07		$ 1.07
Vesting period of options	3 years		3 years
Exercisable period of options	5 years		5 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
INCOME TAXES
U.S. federal and state statutory corporate income tax rate (as a percent)			35.00%
Recovery of income taxes related to Argentine peso devaluation	$ 0.8	$ 2.5	$ 2	$ 21.4
Deferred Income Tax on Impairment of Mineral Properties	$ 10		$ 10

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
LOSS PER SHARE
Net income (loss)	$ (14,116)	$ (104,022)	$ (8,095)	$ (86,135)
Weighted average number of common shares	300,530	297,164	300,364	297,162
Loss per common share	$ (0.05)	$ (0.35)	$ (0.03)	$ (0.29)
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Options outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares)	4,400		4,400
Average exercise price of options outstanding (in dollars per share)	$ 3.36		$ 3.49
Other options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Options outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares)	50	900	80	1,100

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Entity Affiliated With Related Party | Chairman and Chief Executive Officer
RELATED PARTY TRANSACTIONS
Amount of expenses incurred and paid	$ 18,038	$ 16,137	$ 38,518

SEGMENTED INFORMATION (Details)

SEGMENTED INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Operating Segment Reporting
Gold and silver sales	$ 16,160	$ 11,637	$ 39,042	$ 22,767
Production costs applicable to sales	(7,288)	(10,900)	(17,742)	(19,427)
Mine construction costs		(217)		(1,156)
Mine development costs	(163)	(155)	(337)	(1,723)
Exploration costs	(3,080)	(2,637)	(5,422)	(5,317)
Impairment of mineral property interests and property and equipment	(28,542)	(120,398)	(28,542)	(120,398)
Income (loss) on investment in Minera Santa Cruz S.A. (net of amortization)	(2,652)	(2,438)	(2,323)	4,591
Operating (loss) income	(29,673)	(129,374)	(24,505)	(129,936)
Investment in Minera Santa Cruz S.A.	174,147	210,425	174,147	210,425	$ 177,018
Mineral property interests	258,625	521,884	258,625	521,884	287,812
Total assets	506,615	796,270	506,615	796,270	$ 522,958
Argentina
Operating Segment Reporting
Exploration costs	(659)	(249)	(922)	(750)
Impairment of mineral property interests and property and equipment		(120,398)		(120,398)
Income (loss) on investment in Minera Santa Cruz S.A. (net of amortization)	(2,652)	(2,438)	(2,323)	4,591
Operating (loss) income	(3,634)	(123,817)	(3,853)	(117,559)
Investment in Minera Santa Cruz S.A.	174,147	210,425	174,147	210,425
Mineral property interests	202,889	337,805	202,889	337,805
Total assets	379,987	551,324	379,987	551,324
Mexico
Operating Segment Reporting
Gold and silver sales	16,160	11,637	39,042	22,767
Production costs applicable to sales	(7,288)	(10,900)	(17,742)	(19,427)
Mine construction costs		(217)		(1,156)
Mine development costs	(163)	(155)	(337)	(1,723)
Exploration costs	(1,275)	(1,488)	(2,874)	(2,876)
Operating (loss) income	5,863	(2,150)	14,210	(5,198)
Mineral property interests	10,051	11,341	10,051	11,341
Total assets	67,946	59,649	67,946	59,649
United States
Operating Segment Reporting
Exploration costs	(1,065)	(831)	(1,454)	(1,517)
Impairment of mineral property interests and property and equipment	(28,542)		(28,542)
Operating (loss) income	(29,846)	(1,025)	(30,527)	(2,454)
Mineral property interests	45,685	172,738	45,685	172,738
Total assets	46,435	176,415	46,435	176,415
Corporate & Other
Operating Segment Reporting
Exploration costs	(81)	(69)	(172)	(174)
Operating (loss) income	(2,056)	(2,382)	(4,335)	(4,725)
Total assets	$ 12,247	$ 8,882	$ 12,247	$ 8,882

FAIR VALUE ACCOUNTING (Details)

FAIR VALUE ACCOUNTING (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Liabilities:
Shares of common stock required to be issued as part of settlement	319,640
Recurring | Total
Assets:
Investments	$ 1,082	$ 1,334
Assets	1,082	1,334
Liabilities:
Accounts payable and accrued liabilities	355
Liabilities	355
Recurring | Level 1
Assets:
Investments	1,082	1,334
Assets	1,082	$ 1,334
Liabilities:
Accounts payable and accrued liabilities	355
Liabilities	$ 355

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
COMMITMENTS AND CONTINGENCIES.
Outstanding surety bonds	$ 4.8	$ 4.8
Percentage of annual fees on surety bonds	1.50%
Percentage of upfront deposit on surety bonds	10.00%
Surety bonds upfront deposit amount	$ 0.5

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details)	Jul. 16, 2015
Subsequent Event
Subsequent Event
Percentage of fair value of loss due to robbery of gold concentrate reimbursed	80.00%