Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 001-33190 | |
Entity Registrant Name | MCEWEN MINING INC. | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0796160 | |
Entity Address, Address Line One | 150 King Street West | |
Entity Address, Address Line Two | Suite 2800 | |
Entity Address, City or Town | Toronto | |
Entity Address, State or Province | ON | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | M5H 1J9 | |
City Area Code | 866 | |
Local Phone Number | 441-0690 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | MUX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,427,562 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000314203 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUE: | ||||
Revenue | $ 25,988 | $ 37,129 | $ 82,177 | $ 101,575 |
OPERATING EXPENSES: | ||||
Depreciation and depletion | (4,313) | (6,025) | (11,494) | (16,677) |
Gross profit (loss) | 1,503 | 344 | (256) | (583) |
OTHER OPERATING EXPENSES: | ||||
Advanced projects - Other | (8,817) | (4,013) | (34,874) | (6,635) |
Exploration | (3,929) | (6,245) | (11,432) | (18,117) |
General and administrative | (4,352) | (3,467) | (8,789) | (8,384) |
Income (loss) from investment in Minera Santa Cruz S.A. (Note 9) | 758 | (2,650) | 2,149 | (5,077) |
Depreciation | (214) | (94) | (494) | (244) |
Reclamation and Remediation (Note 11) | (526) | (1,309) | (2,559) | (2,725) |
Total other operating expenses | (17,080) | (17,778) | (55,999) | (41,182) |
Operating loss | (15,577) | (17,434) | (56,255) | (41,765) |
OTHER INCOME (EXPENSE): | ||||
Interest and other finance expenses, net | (1,817) | (2,072) | (5,096) | (4,440) |
Other income (Note 4) | 6,328 | 1,264 | 16,000 | 6,471 |
Total other income (expense) | 4,511 | (808) | 10,904 | 2,031 |
Loss before income and mining taxes | (11,066) | (18,242) | (45,351) | (39,734) |
Income and mining tax recovery | 524 | 841 | 1,339 | 3,878 |
Net loss after income and mining taxes | (10,542) | (17,401) | (44,012) | (35,856) |
Net gain attributable to non-controlling interests (Note 18) | 12 | 300 | ||
Net loss and comprehensive loss attributable to McEwen shareholders | $ (10,530) | $ (17,401) | $ (43,712) | $ (35,856) |
Net loss per share (Note 13): | ||||
Basic (in dollars per share) | $ (0.21) | $ (0.38) | $ (0.91) | $ (0.79) |
Diluted (in dollars per share) | $ (0.21) | $ (0.38) | $ (0.91) | $ (0.79) |
Weighted average common shares outstanding (thousands) (Note 1, Note 13): | ||||
Basic (in shares) | 50,778 | 45,919 | 48,218 | 45,345 |
Diluted (in shares) | 50,778 | 45,919 | 48,218 | 45,345 |
Los Azules | ||||
OTHER OPERATING EXPENSES: | ||||
Advanced projects - Other | $ (7,623) | $ (1,036) | $ (31,460) | $ (1,036) |
Other | ||||
OTHER OPERATING EXPENSES: | ||||
Advanced projects - Other | (1,194) | (2,977) | (3,414) | (5,599) |
Minera Santa Cruz S.A. [Member] | ||||
OTHER OPERATING EXPENSES: | ||||
Income (loss) from investment in Minera Santa Cruz S.A. (Note 9) | 758 | (2,650) | 2,149 | (5,077) |
Minera Santa Cruz S.A. [Member] | ||||
REVENUE: | ||||
Revenue | 65,278 | 72,098 | 176,808 | 195,797 |
OPERATING EXPENSES: | ||||
Depreciation and depletion | (9,376) | (11,690) | (21,629) | (28,422) |
OTHER INCOME (EXPENSE): | ||||
Loss before income and mining taxes | (636) | 1,777 | 2,160 | 6,091 |
Income and mining tax recovery | 468 | |||
Net loss and comprehensive loss attributable to McEwen shareholders | 3,682 | (559) | 9,407 | 189 |
Gold and silver sales | ||||
REVENUE: | ||||
Revenue | 10,208 | 37,129 | 66,397 | 101,575 |
Auramet International, LLC | ||||
REVENUE: | ||||
Revenue | 15,780 | 15,780 | ||
Production costs applicable to sales | ||||
OPERATING EXPENSES: | ||||
Production costs applicable to sales | $ (20,172) | $ (30,760) | $ (70,939) | $ (85,481) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents (Note 17) | $ 54,882 | $ 54,287 |
Restricted cash (Note 17) | 2,550 | |
Investments (Note 5) | 1,431 | 1,806 |
Receivables, prepaids and other assets (Note 6) | 9,603 | 10,591 |
Inventories (Note 7) | 30,152 | 15,792 |
Total current assets | 96,068 | 85,026 |
Mineral property interests and plant and equipment, net (Note 8) | 346,501 | 342,303 |
Investment in Minera Santa Cruz S.A. (Note 9) | 92,824 | 90,961 |
Inventories (Note 7) | 4,843 | 2,543 |
Restricted cash (Note 17) | 3,797 | 3,797 |
Other assets | 1,103 | 711 |
TOTAL ASSETS | 545,136 | 525,341 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 30,508 | 39,615 |
Contract liability (Note 16) | 4,715 | |
Flow-through share premium (Note 12) | 4,414 | 1,572 |
Lease liabilities | 1,534 | 2,901 |
Reclamation and remediation liabilities (Note 11) | 12,889 | 5,761 |
Debt, current portion (Note 10) | 4,000 | |
Other liabilities (Note 18) | 2,550 | |
Total current liabilities | 58,060 | 52,399 |
Lease liabilities | 790 | 1,515 |
Debt (Note 10) | 59,834 | 48,866 |
Reclamation and remediation liabilities (Note 11) | 25,200 | 29,691 |
Other liabilities | 2,927 | 2,929 |
Total liabilities | 146,811 | 135,400 |
Shareholders' equity: | ||
Common shares: 47,428 as of September 30, 2022 and 45,919 as of December 31, 2021 issued and outstanding (in thousands) (Note 1, Note 12) | 1,644,285 | 1,615,596 |
Non-controlling interests (Note 18) | 38,184 | 14,777 |
Accumulated deficit | (1,284,144) | (1,240,432) |
Total shareholders' equity | 398,325 | 389,941 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ 545,136 | $ 525,341 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common, shares issued | 47,428 | 45,919 |
Common, shares outstanding | 47,428 | 45,919 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Shares and Additional Paid-in Capital Flow-through common shares | Common Shares and Additional Paid-in Capital | Accumulated Deficit | Noncontrolling Interest | Flow-through common shares | Total |
Balance at Dec. 31, 2020 | $ 1,548,876 | $ (1,183,548) | $ 365,328 | |||
Balance (in shares) at Dec. 31, 2020 | 41,659 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Stock-based compensation | $ 732 | 732 | ||||
Sale of flow-through shares | $ 10,785 | 10,785 | ||||
Sale of flow-through shares (in shares) | 1,260 | |||||
Sale of shares for cash | $ 29,875 | 29,875 | ||||
Sale of shares for cash (in shares) | 3,000 | |||||
Issuance of equity by subsidiary (Note 18) | $ 25,086 | $ 14,914 | 40,000 | |||
Net loss | (35,856) | (35,856) | ||||
Balance at Sep. 30, 2021 | $ 1,615,354 | (1,219,404) | 14,914 | 410,864 | ||
Balance (in shares) at Sep. 30, 2021 | 45,919 | |||||
Balance at Dec. 31, 2020 | $ 1,548,876 | (1,183,548) | 365,328 | |||
Balance (in shares) at Dec. 31, 2020 | 41,659 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Issuance of equity by subsidiary (Note 18) | 14,900 | |||||
Balance at Dec. 31, 2021 | $ 1,615,596 | (1,240,432) | 14,777 | 389,941 | ||
Balance (in shares) at Dec. 31, 2021 | 45,919 | |||||
Balance at Jun. 30, 2021 | $ 1,589,974 | (1,202,003) | 387,971 | |||
Balance (in shares) at Jun. 30, 2021 | 45,919 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Stock-based compensation | $ 294 | 294 | ||||
Issuance of equity by subsidiary (Note 18) | 25,086 | 14,914 | 40,000 | |||
Net loss | (17,401) | (17,401) | ||||
Balance at Sep. 30, 2021 | $ 1,615,354 | (1,219,404) | 14,914 | 410,864 | ||
Balance (in shares) at Sep. 30, 2021 | 45,919 | |||||
Balance at Dec. 31, 2021 | $ 1,615,596 | (1,240,432) | 14,777 | 389,941 | ||
Balance (in shares) at Dec. 31, 2021 | 45,919 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Issuance of equity by subsidiary (Note 18) | 7,600 | |||||
Balance at Jun. 30, 2022 | $ 1,633,513 | (1,273,614) | 22,082 | 381,981 | ||
Balance (in shares) at Jun. 30, 2022 | 47,428 | |||||
Balance at Dec. 31, 2021 | $ 1,615,596 | (1,240,432) | 14,777 | 389,941 | ||
Balance (in shares) at Dec. 31, 2021 | 45,919 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Stock-based compensation | $ 313 | 313 | ||||
Sale of flow-through shares | $ 10,320 | $ 10,320 | ||||
Sale of flow-through shares (in shares) | 1,450 | |||||
Shares issued for debt refinancing | $ 500 | 500 | ||||
Shares issued for debt refinancing (in shares) | 59 | |||||
Issuance of equity by subsidiary (Note 18) | $ 17,643 | 23,707 | 41,350 | |||
Share repurchase (Note 1) | (87) | (87) | ||||
Net loss | (43,712) | (300) | (44,012) | |||
Balance at Sep. 30, 2022 | $ 1,644,285 | (1,284,144) | 38,184 | 398,325 | ||
Balance (in shares) at Sep. 30, 2022 | 47,428 | |||||
Balance at Jun. 30, 2022 | $ 1,633,513 | (1,273,614) | 22,082 | 381,981 | ||
Balance (in shares) at Jun. 30, 2022 | 47,428 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Stock-based compensation | $ 123 | 123 | ||||
Issuance of equity by subsidiary (Note 18) | 10,736 | 16,114 | 26,850 | |||
Share repurchase (Note 1) | (87) | (87) | ||||
Net loss | (10,530) | (12) | (10,542) | |||
Balance at Sep. 30, 2022 | $ 1,644,285 | $ (1,284,144) | $ 38,184 | $ 398,325 | ||
Balance (in shares) at Sep. 30, 2022 | 47,428 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (44,012) | $ (35,856) |
Adjustments to reconcile net loss from operating activities: | ||
(Income) loss from investment in Minera Santa Cruz S.A. (Note 9) | (2,149) | 5,077 |
Depreciation and amortization | 12,166 | 15,402 |
Loss (gain) on investments (Note 5) | 375 | (20) |
Gain on sale of mineral property interests | (2,270) | |
Unrealized foreign exchange loss (gain) and adjustment to estimate (Note 11) | (999) | (8) |
Income and mining tax recovery | (1,339) | (3,878) |
Stock-based compensation | 313 | 732 |
Reclamation and remediation (Note 11) | 4,009 | 2,725 |
Change in non-cash working capital items: | ||
Decrease (increase) in other assets related to operations | (14,590) | 7,481 |
Decrease in liabilities related to operations | (4,326) | (8,461) |
Cash used in operating activities | (50,552) | (19,076) |
Cash flows from investing activities: | ||
Net additions to mineral property interests and plant and equipment | (17,140) | (28,483) |
Investment in marketable equity securities (Note 5) | 492 | |
Cash used in investing activities | (16,854) | (20,430) |
Cash flows from financing activities: | ||
Proceeds from sale of shares, net of issuance costs (Note 18) | 41,263 | 29,875 |
Sale of flow-through common shares, net of issuance costs (Note 12) | 14,376 | 11,966 |
Proceeds from promissory note (Note 10 and Note 14) | 15,000 | 40,000 |
Subscription proceeds received in advance (Note 18) | (2,850) | 2,550 |
Payment of finance lease obligations | (2,338) | (4) |
Cash provided by financing activities | 65,451 | 84,387 |
(Decrease) increase in cash, cash equivalents and restricted cash | (1,955) | 44,881 |
Cash, cash equivalents and restricted cash, beginning of period | 60,634 | 24,438 |
Cash, cash equivalents and restricted cash, end of period (Note 17) | 58,679 | 69,319 |
Supplemental disclosure of cash flow information: | ||
Interest paid | (4,305) | (3,676) |
Interest received | 10 | 11 |
Minera Santa Cruz S.A. [Member] | ||
Adjustments to reconcile net loss from operating activities: | ||
(Income) loss from investment in Minera Santa Cruz S.A. (Note 9) | (2,149) | 5,077 |
Cash flows from investing activities: | ||
Dividends received from Minera Santa Cruz S.A. (Note 9) | $ 286 | $ 7,561 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1 NATURE OF OPERATIONS AND BASIS OF PRESENTATION McEwen Mining Inc. (the “Company”) was organized under the laws of the State of Colorado on July 24, 1979. The Company is engaged in the exploration, development, production and sale of gold and silver and exploration and development of copper. The Company operates in the United States, Canada, Mexico and Argentina. The Company owns a 100% interest in the Gold Bar gold mine in Nevada, the Black Fox gold mine in Ontario, Canada, the El Gallo gold project and the Fenix silver-gold project in Sinaloa, Mexico and a portfolio of exploration properties in Nevada, Canada, Mexico and Argentina. As of September 30, 2022, the Company owns a 68% interest in the Los Azules copper deposit in San Juan, Argentina through its subsidiary, McEwen Copper Inc. (“McEwen Copper”). It also owns a 49% interest in Minera Santa Cruz S.A. (“MSC”), owner of the producing San José silver-gold mine in Santa Cruz, Argentina, which is operated by the joint venture majority owner Hochschild Mining plc. The Company reports its investment in McEwen Copper as a controlling interest and its investment in MSC as an equity investment. The interim consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are unaudited. While information and note disclosures normally included in financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, the Company believes that the information and disclosures included are adequate and not misleading. In management’s opinion, the unaudited Consolidated Statements of Operations and Comprehensive Loss Statement of Operations Consolidated Balance Sheet Consolidated Balance Sheet Consolidated Statement of Changes in Shareholders’ Equity Consolidated Statements of Cash Flows Share consolidation and Articles of Amendment Effective after the close of trading on July 27, 2022, the Company filed Articles of Amendment to its Second Amended and Restated Articles of Incorporation with the Colorado Secretary of State to, among other items, effect a one-for- ten The Articles of Amendment also served to reduce the Company’s authorized capital from 675,000,002 shares to 200,000,002 shares, with 200,000,000 shares being common stock and 2 shares being a special preferred stock. |
SIGNIFICANT ACCOUNTING ISSUES
SIGNIFICANT ACCOUNTING ISSUES | 9 Months Ended |
Sep. 30, 2022 | |
SIGNIFICANT ACCOUNTING ISSUES | |
SIGNIFICANT ACCOUNTING ISSUES | NOTE 2 SIGNIFICANT ACCOUNTING ISSUES Flow-through Issuance and Equity Financing During the nine months ended September 30, 2022, the Company completed a Canadian Exploration Expenditures (“CEE”) flow-through common share financing for gross proceeds of $15.1 million. In March 2022, the Company issued a $15.0 million unsecured subordinated promissory note and amended the terms of its $50.0 million senior secured term loan facility (Note 10). In June 2022 and August 2022, a subsidiary of the Company secured an additional $15.0 million and $28.9 million, respectively, of equity financing for its Los Azules project in Argentina (Note 18). During the nine months ended September 30, 2021, the Company raised gross proceeds of $12.7 million through a Canadian Development Expenses (“CDE”) flow-through common share issuance and proceeds of $31.5 million through an equity financing (Note 12). In addition, a subsidiary of the Company secured an additional $40.0 million of equity financing for its Los Azules project in Argentina (Note 18). |
OPERATING SEGMENT REPORTING
OPERATING SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2022 | |
OPERATING SEGMENT REPORTING | |
OPERATING SEGMENT REPORTING | NOTE 3 OPERATING SEGMENT REPORTING The Company is a mining and minerals production and exploration company focused on precious metals in the United States, Canada, Mexico, and Argentina. The Company’s chief operating decision maker (“CODM”) reviews the operating results, assesses performance and makes decisions about the allocation of resources to these segments at the geographic region level or major mine/project level where the economic characteristics of the individual mines or projects within a geographic region are not alike. As a result, these operating segments also represent the Company’s reportable segments for accounting purposes. The Company’s business activities that are not considered operating segments are included in General and Administrative and Other and are provided in this note for reconciliation purposes. The CODM reviews segment income or loss, defined as gold and silver sales less production costs applicable to sales, depreciation and depletion, advanced projects and exploration costs, for all segments except for the MSC segment, which is evaluated based on the attributable equity income or loss. Gold and silver sales and production costs applicable to sales for the reportable segments are reported net of intercompany transactions. Capital expenditures include costs capitalized in mineral property interests and plant and equipment in the respective periods. Significant information relating to the Company’s reportable operating segments for the periods presented is summarized in the tables below: Three months ended September 30, 2022 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 12,596 $ 13,058 $ 334 $ — $ — $ 25,988 Production costs applicable to sales (12,357) (6,196) (1,619) — — (20,172) Depreciation and depletion (1,514) (2,799) — — — (4,313) Gross profit (loss) (1,275) 4,063 (1,285) — — 1,503 Advanced projects (4) (30) (1,160) — (7,623) (8,817) Exploration (1,055) (2,733) — — (141) (3,929) Income from investment in Minera Santa Cruz S.A. — — — 758 — 758 Segment income (loss) $ (2,334) $ 1,300 $ (2,445) $ 758 $ (7,764) $ (10,485) General and administrative and other (581) Loss before income and mining taxes $ (11,066) Capital expenditures $ 1,012 $ 4,080 $ 2,827 $ — $ 159 $ 8,078 Nine months ended September 30, 2022 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 34,334 $ 46,200 $ 1,643 $ — $ — $ 82,177 Production costs applicable to sales (34,834) (26,103) (10,002) — — (70,939) Depreciation and depletion (3,275) (8,219) — — — (11,494) Gross profit (loss) (3,775) 11,878 (8,359) — — (256) Advanced projects (52) (227) (3,135) — (31,460) (34,874) Exploration (3,747) (7,056) — — (629) (11,432) Impairment of mineral property interests and plant and equipment (Note 8) — — — — — — Income from investment in Minera Santa Cruz S.A. — — — 2,149 — 2,149 Segment income (loss) $ (7,574) $ 4,595 $ (11,494) $ 2,149 $ (32,089) $ (44,413) General and Administrative and other (938) Loss before income and mining taxes $ (45,351) Capital expenditures $ 1,508 $ 11,633 $ 2,827 $ — $ 544 $ 16,512 Three months ended September 30, 2021 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 21,683 $ 14,227 $ 1,219 $ — $ — $ 37,129 Production costs applicable to sales (18,753) (9,635) (2,372) — — (30,760) Depreciation and depletion (2,140) (3,885) — — — (6,025) Gross profit (loss) 790 707 (1,153) — — 344 Advanced projects (234) (871) (1,872) — (1,036) (4,013) Exploration (1,432) (4,817) 4 — — (6,245) Loss from investment in Minera Santa Cruz S.A. — — — (2,650) — (2,650) Segment loss $ (876) $ (4,981) $ (3,021) $ (2,650) $ (1,036) $ (12,564) General and administrative and other (5,678) Loss before income and mining taxes $ (18,242) Capital expenditures $ 353 $ 10,775 $ — $ — $ — $ 11,128 Nine months ended September 30, 2021 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 60,919 $ 34,966 $ 5,690 $ — $ — $ 101,575 Production costs applicable to sales (53,376) (22,622) (9,483) — — (85,481) Depreciation and depletion (6,208) (10,469) — — — (16,677) Gross profit (loss) 1,335 1,875 (3,793) — — (583) Advanced projects (203) (2,058) (3,338) — (1,036) (6,635) Exploration (3,887) (12,532) (14) — (1,684) (18,117) Loss from investment in Minera Santa Cruz S.A. — — — (5,077) — (5,077) Segment loss $ (2,755) $ (12,715) $ (7,145) $ (5,077) $ (2,720) $ (30,412) General and Administrative and other (9,322) Loss before income and mining taxes $ (39,734) Capital expenditures $ 1,110 $ 20,342 $ — $ — $ — $ 21,452 Geographic Information Geographic information includes the long-lived asset balances and revenues presented for the Company’s operating segments, as follows: Long-lived Assets Revenue (1) Revenue (1) September 30, December 31, Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 2022 2021 USA $ 38,404 $ 37,877 $ 12,596 $ 21,683 $ 34,334 $ 60,919 Canada 95,570 93,294 13,058 14,227 46,200 34,966 Mexico 29,385 26,561 334 1,219 1,643 5,690 Argentina (2) 285,709 282,583 — — — — Total consolidated (3) $ 449,068 $ 440,315 $ 25,988 $ 37,129 $ 82,177 $ 101,575 (1) Presented based on the location from which the precious metals originated. (2) Includes Investment in MSC and other subsidiaries of $92.8 million as of September 30, 2022 (December 31, 2021 – $90.9 million). (3) Total excludes $0.4 million related to the Company's Right of use office lease asset as the business activities related to corporate are not considered to be a part of the operating segments. |
OTHER INCOME
OTHER INCOME | 9 Months Ended |
Sep. 30, 2022 | |
OTHER INCOME | |
OTHER INCOME | NOTE 4 OTHER INCOME The following is a summary of other income for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 COVID-19 Relief $ — $ 611 $ — $ 3,447 Unrealized and realized gain (loss) on investments (1,367) 18 (754) 20 Foreign currency gain on Blue Chip Swap 5,721 — 12,309 — Foreign currency gain, other 1,412 654 3,880 751 Other income (loss), net 562 (19) 565 2,253 Total other income $ 6,328 $ 1,264 $ 16,000 $ 6,471 During the three and nine months ended September 30, 2022, the Company recognized $nil (three and nine months ended September 30, 2021 - $0.6 million and $3.4 million, respectively) of other income through COVID-19 relief from the Canadian government via the Canadian Emergency Wage Subsidy and Canada Emergency Rent Subsidy programs. From time to time, the Company may acquire and transfer marketable securities (“Blue Chip Swap”) to facilitate intragroup funding transfers between the U.S. parent and its Argentine subsidiary. The Blue Chip Swap transaction utilizes the existing loan structure between the Company’s Canadian, Cayman Islands, and Argentina entities. The Company does not acquire marketable securities or engage in these transactions for speculative purposes. Under this strategy, the Company generally uses marketable securities of large, well-established companies, with high trading volumes and low volatility. The Company does this to improve cash management for funding its Argentinean subsidiary. Nonetheless, as the process to acquire, transfer and ultimately sell the marketable securities occurs over several days, some fluctuations are unavoidable. As the marketable securities are acquired with the intention of a near term sale, generally less than seven days, they are considered financial instruments that are held for trading. Accordingly, all changes in the fair value of the instruments, between acquisition and disposition, are recognized through operations in the Consolidated Statements of Operations. Upon receipt of the transferred equity instruments by the local investment broker, the Company realizes an immediate foreign exchange impact. This foreign exchange impact is incurred directly as a result of holding equity instruments with the intention of trading, and as such the foreign exchange impact is also recognized through operations. For the nine months ended September 30, 2022, the Company completed eight blue chip swap transactions to transfer funds from its Canadian USD bank account to Argentina. These funds were used for the continued development of the Los Azules Copper project. For the three and nine months ended September 30, 2022, the Company realized a net gain of $5.5 million and $11.6 million, respectively. The net gain for the three and nine months ended September 30, 2022 was comprised of a foreign currency gain of $5.7 million and $12.3 million and a realized loss on investments of $0.2 million and $0.7 million, respectively, including the impact of fees and commissions. No similar transactions occurred in 2021. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENTS | |
INVESTMENTS | NOTE 5 INVESTMENTS The following is a summary of the activity in investments for the nine months ended September 30, 2022: As at Additions/ Net gain Disposals/ Unrealized As at December 31, transfers during (loss) on transfers during gain (loss) on September 30, 2021 period securities sold period securities held 2022 Marketable equity securities – fair value 1,644 — — — (375) 1,269 Warrants 162 — — — — 162 Total Investments $ 1,806 $ — $ — $ — $ (375) $ 1,431 On June 23, 2021, the Company closed the sale of two projects in Nevada, Limousine Butte and Cedar Wash, with Nevgold Corp. (“Nevgold”). In addition to $0.5 million cash received as part of the consideration, the Company received 4,963,455 common shares and 2,481,727 warrants of Nevgold. Upon issuance, the common shares received by the Company represented 10% of the issued and outstanding shares of Nevgold. The warrants have an exercise price of $0.60 per share and are exercisable until June 23, 2023. The common shares trade on the TSX Venture Exchange. |
RECEIVABLES, PREPAIDS AND OTHER
RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS | |
RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS | NOTE 6 RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS The following is a breakdown of balances in receivables, prepaids and other assets as at September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 Government sales tax receivable $ 1,989 $ 3,708 Prepaids and other assets 7,614 6,883 Receivables, prepaid and other current assets $ 9,603 $ 10,591 Included in government sales tax receivable for the nine months ended September 30, 2022 is $0.2 million of harmonized sales tax (“HST”) receivable from the Company’s operations in Black Fox (December 31, 2021 - $2.2 million). Government sales tax receivable includes $0.8 million of Mexican value-added tax (“VAT”) at September 30, 2022 (December 31, 2021 – $0.9 million). The Company collected $1.2 million of VAT during the nine months ended September 30, 2022 (September 30, 2021 – $1.1 million). |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2022 | |
INVENTORIES | |
INVENTORIES | NOTE 7 INVENTORIES Inventories at September 30, 2022 and December 31, 2021 consisted of the following: September 30, 2022 December 31, 2021 Material on leach pads $ 8,425 $ 4,660 In-process inventory 4,203 3,049 Stockpiles 14,010 5,105 Precious metals 1,550 1,819 Materials and supplies 6,807 3,702 $ 34,995 $ 18,335 Less long-term portion (4,843) (2,543) Current portion $ 30,152 $ 15,792 During the nine months ended September 30, 2022, inventory at the Black Fox, El Gallo and Gold Bar operation were written down to their estimated net realizable value by $1.6 million, $4.6 million and $nil respectively. During the nine months ended September 30, 2021, inventory at the Black Fox, El Gallo and Gold Bar operation were written down to their estimated net realizable value by $0.4 million, $2.5 million and $1.4 million respectively. Of these write-downs, a total of $5.9 million (nine months ended September 30, 2021 – $4.0 million) was included in production costs applicable to sales and $0.3 million was included in depreciation and depletion (nine months ended September 30, 2021 - $0.3 million) in the Statement of Operations. |
MINERAL PROPERTY INTERESTS AND
MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2022 | |
MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT | |
MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT | NOTE 8 MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT The applicable definition of proven and probable reserves is set forth in the new Regulation S-K 1300 requirements of the SEC. If proven and probable reserves exist at the Company’s properties, the relevant capitalized mineral property interests and asset retirement costs are charged to expense based on the units of production method upon commencement of production. The Company’s Gold Bar and Black Fox properties have proven and probable reserves estimated in accordance with Regulation S-K 1300. The El Gallo Project is depleted and depreciated using the straight line method, as the project does not have proven and probable reserves as defined in Regulation S-K 1300. The Company reviews and evaluates its long-lived assets for impairment on a quarterly basis or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Once it is determined that impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its estimated fair value. During the nine months ended September 30, 2022, no indicators of impairment have been noted for any of the Company’s mineral property interests. |
INVESTMENT IN MINERA SANTA CRUZ
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | NOTE 9 INVESTMENT IN MINERA SANTA CRUZ S.A. (“MSC”) – SAN JOSÉ MINE The Company accounts for investments over which it exerts significant influence but does not control through majority ownership using the equity method of accounting. In applying the equity method of accounting to the Company’s investment in MSC, MSC’s financial statements, which are originally prepared by MSC in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, have been adjusted to conform with U.S. GAAP. As such, the summarized financial data presented under this heading is presented in accordance with U.S. GAAP. A summary of the operating results for MSC for the three and nine months ended September 30, 2022 and 2021 is as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Minera Santa Cruz S.A. ( 100% ) Revenue from gold and silver sales $ 65,278 $ 72,098 $ 176,808 $ 195,797 Production costs applicable to sales (48,930) (47,911) (130,231) (125,167) Depreciation and depletion (9,376) (11,690) (21,629) (28,422) Gross profit 6,972 12,498 24,948 42,209 Exploration (1,960) (2,710) (6,788) (7,887) Other expenses (1) (5,648) (8,010) (16,000) (28,231) Net income (loss) before tax $ (636) $ 1,777 $ 2,160 $ 6,091 Current and deferred tax expense 4,318 (2,336) 7,247 (5,902) Net income (loss) $ 3,682 $ (559) $ 9,407 $ 189 Portion attributable to McEwen Mining Inc. ( 49% ) Net income (loss) $ 1,804 $ (273) $ 4,610 $ 93 Amortization of fair value increments (1,228) (2,481) (2,929) (5,571) Income tax recovery 182 104 468 401 Income (loss) from investment in MSC, net of amortization $ 758 $ (2,650) $ 2,149 $ (5,077) (1) Other expenses include foreign exchange, accretion of asset retirement obligations, other finance-related expenses. The income or loss from the investment in MSC attributable to the Company includes amortization of the fair value increments arising from the initial purchase price allocation and related income tax recovery. The income tax recovery reflects the impact of the devaluation of the Argentine peso against the U.S. dollar on the peso-denominated deferred tax liability recognized at the time of acquisition, as well as income tax rate changes over the periods. Changes in the Company’s investment in MSC for the nine months ended September 30, 2022 and year ended December 31, 2021 are as follows: Nine months ended September 30, 2022 Year ended Investment in MSC, beginning of period $ 90,961 $ 108,326 Attributable net income from MSC 4,610 132 Amortization of fair value increments (2,929) (8,331) Income tax recovery 468 666 Dividend distribution received (286) (9,832) Investment in MSC, end of period $ 92,824 $ 90,961 During the three and nine months ended September 30, 2022, the Company received $nil and $0.3 million in dividends from MSC, respectively (three and nine months ended September 30, 2021 – $nil and $7.6 million, respectively). A summary of the key assets and liabilities of MSC on a 100% basis as at September 30, 2022, before and after adjustments to fair value on acquisition and amortization of the fair value increments arising from the purchase price allocation, are as follows: As at September 30, 2022 Balance excluding FV increments Adjustments Balance including FV increments Current assets $ 89,774 $ 1,151 $ 90,925 Total assets $ 197,130 $ 84,120 $ 281,250 Current liabilities $ (57,912) $ — $ (57,912) Total liabilities $ (90,203) $ (1,622) $ (91,825) |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
DEBT | |
DEBT | NOTE 10 DEBT $50 Million Term Loan Facility On August 10, 2018, the Company finalized a $50.0 million senior secured three-year term loan facility with a third party, as administrative agent, and the lenders party thereto. Interest on the loan accrued at the rate of 9.75% per annum with interest due monthly and was secured by a lien on certain of the Company’s and its subsidiaries’ assets. On June 25, 2020, the Company entered into an Amended and Restated Credit Agreement (“ARCA”) which refinanced the outstanding $50.0 million loan and included the following revisions: ● Scheduled repayments were extended by two years ; monthly repayments of principal in the amount of $2.0 million were due beginning on August 31, 2022, and continuing for 11 months , followed by a final principal payment of $26.0 million, and any accrued interest on August 31, 2023 (but, later extended, as described below). ● Additionally, the minimum working capital maintenance requirement was reduced from $10.0 million under the original term loan to $nil between June 30, 2020 through December 31, 2020, and from $10.0 million to $2.5 million from March 31, 2021 until the end of 2021. The working capital requirement increased to $5.0 million at March 31, 2022, $7.0 million at June 30, 2022, and $10 million at September 30, 2022, and each fiscal quarter thereafter (further amended, see below). ● The Company issued 2,091,700 shares of common stock valued at $1,875,000 to the lenders as consideration for the maintenance, continuation, and extension of the maturity date of the loan. The value of the shares plus the unamortized costs of the original term loan are being amortized over the modified term of the loan. ● Sprott Private Resource Lending II (Collector), LP replaced Royal Capital Management Corp. as the administrative agent and a lender. An affiliate of Robert R. McEwen remained as a lender. The remaining principal terms of the original agreement remained unchanged. On March 31, 2022, further amendments were made to the ARCA which refinanced the outstanding $50.0 million loan and which terms differed in material respects from the previous amendment as follows: ● Scheduled repayments of the principal were extended by 18 months thereafter; monthly repayments of principal in the amount of $2.0 million are now due beginning on August 31, 2023, and continuing for 18 months , followed by a final principal payment of $12.0 million, and any accrued interest on March 31, 2025. ● The minimum working capital maintenance requirement was reduced from $10.0 million under the amended term loan to $5.0 million at March 31, 2022 and until March 31, 2023. The working capital requirement increases to $7.0 million at June 30, 2023 and $10 million at September 30, 2023 and each fiscal quarter thereafter. ● The Company issued shares of common stock valued at $0.5 million to the unaffiliated lender as consideration for the maintenance, continuation, and extension of the maturity date of the loan. The value of the shares plus the unamortized costs of the original term loan are being amortized over the modified term of the loan. The remaining principal terms of the original agreement remained unchanged. The Company is currently in full compliance with all covenants under the ARCA. $15 Million Subordinated Promissory Note On March 31, 2022, the Company issued a $15.0 million unsecured subordinated promissory note to a company controlled by Robert R. McEwen, the Chairman and Chief Executive Officer of the Company (“Promissory Note”). The Promissory Note is payable in full on or before September 25, 2025, interest is payable monthly at a rate of 8% per annum. The promisory note is subordinated to the ARCA loan facility. A reconciliation of the Company’s long-term debt for the nine months ended September 30, 2022 and for the year ended December 31, 2021 is as follows: Nine months ended September 30, 2022 Year ended Balance, beginning of year $ 48,866 $ 48,160 Promissory note- initial recognition 15,000 — Interest expense 4,114 5,581 Interest payments (3,646) (4,875) Bonus interest - Equity based financing fee (500) — Balance, end of period $ 63,834 $ 48,866 Less current portion 4,000 — Long-term portion $ 59,834 $ 48,866 |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2022 | |
ASSET RETIREMENT OBLIGATIONS | |
ASSET RETIREMENT OBLIGATIONS | NOTE 11 ASSET RETIREMENT OBLIGATIONS The Company is responsible for the reclamation of certain past and future disturbances at its properties. The most significant properties subject to these obligations are the Gold Bar and Tonkin properties in Nevada, the Timmins properties in Canada and the El Gallo Project in Mexico. A reconciliation of the Company’s asset retirement obligations for the nine months ended September 30, 2022 and for the year ended December 31, 2021 are as follows: Nine months ended September 30, 2022 Year ended Asset retirement obligation liability, beginning balance $ 35,452 $ 34,000 Settlements (372) (2,225) Accretion of liability 1,572 2,405 Revisions to estimates and discount rate 2,436 1,257 Foreign exchange revaluation (999) 15 Asset retirement obligation liability, ending balance $ 38,089 $ 35,452 Less current portion 12,889 5,761 Long-term portion $ 25,200 $ 29,691 The Company’s reclamation expenses for the periods presented consisted of the following: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Reclamation adjustment reflecting updated estimates $ — $ 830 $ 986 $ 1,256 Reclamation accretion 526 479 1,573 1,470 Total $ 526 $ 1,309 $ 2,559 2,725 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | NOTE 12 SHAREHOLDERS’ EQUITY Equity Issuances Flow-Through Shares Issuance – Canadian Exploration Expenditures (“CEE”) On March 2, 2022, the Company issued 1,450,000 flow-through common shares priced at $10.40 per share for gross proceeds of $15.1 million. The proceeds of this offering have been or will be used for the continued development of the Company’s properties in the Timmins region of Canada. The total proceeds were allocated between the sale of tax benefits and the sale of common shares. The total issuance costs related to the issuance of the flow-through shares were $0.8 million, which were accounted for as a reduction to the value of the common shares. The net proceeds of $14.4 million were allocated between the sale of tax benefits in the amount of $4.1 million and the sale of common shares in the amount of $10.3 million. On December 31, 2020, the Company issued 766,990 flow-through common shares priced at $12.80 per share for gross proceeds of $9.8 million. The purpose of this offering was to fund exploration activities on the Company’s properties in the Timmins region of Canada. No issuance costs were incurred as part of this issuance. Proceeds of $9.8 million were allocated between the sale of tax benefits in the amount of $2.1 million and the sale of common shares in the amount of $7.7 million. On September 10, 2020, the Company issued 629,816 flow-through common shares priced at $16.50 per share for gross proceeds of $10.4 million. The purpose of this offering was also to fund exploration activities on the Company’s properties in the Timmins region of Canada. The total issuance costs related to the issuance of the flow-through shares were $0.6 million, which were accounted for as a reduction to the common shares. The net proceeds of $9.8 million were allocated between the sale of tax benefits in the amount of $2.0 million and the sale of common shares in the amount of $7.8 million. The Company is required to spend these flow-through share proceeds on flow-through eligible CEE as defined by subsection 66.1(6) of the Income Tax Act (Canada). As of September 30, 2022, the Company had incurred a total of $18.9 million in eligible CEE ($12.7 million as of December 31, 2021 and $6.2 million as of September 30, 2022). The Company expects to fulfill its remaining CEE commitments from its most recent common share flow through offering of $15.1 million by the end of 2023. Flow-Through Shares Issuance – Canadian Development Expenses (“CDE”) On January 29, 2021, the Company issued 1,260,060 flow-through common shares priced at $10.10 per share for gross proceeds of $12.7 million. The purpose of this offering was to fund the continued development of the Froome deposit. The total issuance costs related to the issuance of the flow-through shares were $0.7 million, which were accounted for as a reduction to the common shares. The net proceeds of $12.0 million were allocated between the sale of tax benefits in the amount of $1.2 million and the sale of common shares in the amount of $10.8 million. The Company is required to spend these flow-through share proceeds on flow-through eligible CDE as defined by subsection 66.2(5) of the Income Tax Act (Canada). The Company satisfied the total of $12.7 million CDE requirement during 2021. Shareholders’ Distributions Pursuant to the ARCA ( Note 10 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
NET LOSS PER SHARE | |
NET LOSS PER SHARE | NOTE 13 NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss attributable to the Company’s common shareholders by the weighted average number of common shares outstanding during the period. Potentially dilutive instruments are not included in the calculation of diluted net loss per share for the three and nine months ended September 30, 2022 and 2021, as they would be anti-dilutive. For the nine months ended September 30, 2022, all the outstanding stock options (467,499) and all of the outstanding warrants (2,977,077) were excluded from the computation of diluted loss per share. Similarly, for the nine months ended September 30, 2021, the outstanding stock options (646,005) and the outstanding warrants (2,977,077) were excluded. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 14 RELATED PARTY TRANSACTIONS The Company recorded the following expense in respect to the related parties outlined below during the periods presented: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Lexam L.P. — 4 — 78 REVlaw 49 69 $ 303 210 The Company has the following outstanding accounts payable balances in respect to the related parties outlined below: September 30, 2022 December 31, 2021 REVlaw $ 66 137 REVlaw is a company owned by Carmen Diges, General Counsel & Secretary of the Company. The legal services of Ms. Diges as General Counsel & Secretary and other support staff, as needed, are provided by REVlaw in the normal course of business and have been recorded at their exchange amount. An affiliate of Mr. McEwen participated as a lender in the $50.0 million term loan by providing $25.0 million of the total $50.0 million funding and continued as such under the ARCA. During the three and nine months ended September 30, 2022, the Company paid $0.6 million and $1.8 million, respectively (three and nine months ended September 30, 2021 – $0.6 million and $1.8 million, respectively) in interest to this affiliate. (Note 10) On March 31, 2022, the Company issued a $15.0 million unsecured subordinated promissory note to a company controlled by Mr. McEwen. The Promissory Note is payable in full on or before September 25, 2025, interest is payable monthly at a rate of 8% per annum and is subordinated to the ARCA loan facility. The amount of interest paid for the period ended September 30,2022 is $0.5 million (Note 10). On August 23, 2021, an affiliate of Mr. McEwen participated in the Series B private placement offering conducted by McEwen Copper, the Company’s subsidiary that owns and is developing the Los Azules copper project (Note 18). |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE ACCOUNTING | |
FAIR VALUE ACCOUNTING | NOTE 15 FAIR VALUE ACCOUNTING As required by accounting guidance, assets and liabilities on the Consolidated Balance Sheets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Warrants Upon initial recognition, the warrants received as part of the asset sale to Nevgold (Note 5) Assets and liabilities measured at fair value on a recurring basis. The following table identifies certain of the Company’s assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at September 30, 2022 and December 31, 2021, as reported in the Consolidated Balance Sheets Fair value as at September 30, 2022 Fair value as at December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Marketable equity securities $ 1,269 $ — $ 1,269 $ 1,644 $ — $ 1,644 Total investments $ 1,269 $ — $ 1,269 $ 1,644 $ — $ 1,644 Marketable equity securities that the Company holds are exchange-traded and are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the investment is calculated as the quoted market price of the marketable equity security multiplied by the number of shares held by the Company. The fair value of financial assets and liabilities held at September 30, 2022 were assumed to approximate their carrying values due to their historically negligible credit losses. Debt is recorded at a carrying value of $63.8 million (December 31, 2021 – $48.9 million). The debt is not traded on quoted markets and approximates its fair value based on recent refinancing. Impairment of Mineral Property During the nine months ended September 30, 2022, there were no indicators of impairment for the Company’s long-lived assets and the Company did not record any impairments. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 COMMITMENTS AND CONTINGENCIES In addition to the commitments for payments on operating and finance leases and the repayment of long-term debt ( Note 10 Reclamation Obligations As part of its ongoing business and operations, the Company is required to provide surety bonding for its environmental reclamation obligations of $25.3 million in Nevada pertaining primarily to the Tonkin and the Gold Bar properties and $11.4 million (C$15.6 million) in Canada with respect to the Black Fox Complex. In addition, under Canadian regulations, the Company was required to deposit approximately $0.1 million with respect to its Lexam properties in Timmins, which is recorded as non-current restricted cash ( Note 17) Surety Bonds As at September 30, 2022, the Company had a surety facility in place to cover all its bonding obligations, which include $25.3 million of bonding in Nevada and $11.4 million (C$15.6 million) of bonding in Canada. The terms of the facility carry an average annual financing fee of 2.3% and require a deposit of 10%. The surety bonds are available for draw-down by the beneficiary in the event the Company does not perform its reclamation obligations. If the specific reclamation requirements are met, the beneficiary of the surety bonds will release 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 September 30, 2022, the Company recorded $3.8 million in restricted cash in non-current assets as a deposit against the surety facility. Streaming Agreement As part of the acquisition of the Black Fox Complex in 2017, the Company assumed a gold purchase agreement (streaming contract) related to production from certain land claims. The Company is obligated to sell 8% of gold production from the Black Fox mine and 6.3% from the adjoining Pike River property (Black Fox extension) to Sandstorm Gold Ltd. at the lesser of market price or $561 per ounce (with inflation adjustments of up to 2% per year) until 2090. The Company records the revenue from these shipments based on the contract price at the time of delivery to the customer. During the three and nine months ended September 30, 2022, the Company recorded revenue of $0.4 million and $1.2 million, respectively (for the three and nine months ended September 30, 2021 – $0.3 million and $0.9 million, respectively) related to the gold stream sales. Flow-through Eligible Expenses On March 2, 2022, the Company completed a flow-through share issuance for gross proceeds of $15.1 million. The proceeds of this offering will be used for the continued development of the Company’s properties in the Timmins region of Canada. As at September 30, 2022, the Company has not started to incur the required CEE spend. In January 2021, the Company closed a flow-through share issuance to fund the development at the Froome deposit. The Company incurred the full required spend of $12.7 million in CDE during 2021. In 2020, the Company completed two flow-through share issuances. The total proceeds of $18.3 million have been used to incur qualifying CEE in the Timmins region of Ontario by December 31, 2022. As of September 30, 2022, the Company has incurred $18.9 million of the required CEE spend ($12.7 million as of December 2021) and expects to fulfill the remaining $1.3 million of CEE commitments by the end of 2023 (Note 12) Prepayment Agreement On July 27, 2022, the Company entered into a precious metals purchase agreement with Auramet International LLC (“Auramet”). Under this agreement, the Company may sell the gold on a Spot Basis, on a Forward Basis and on a Supplier Advance basis, i.e. the gold is priced and paid for while the gold is: (i) at a mine for a maximum of 15 business days before shipment; or (ii) in-transit to a refinery; or (iii) while being refined at a refinery. During the three and nine months ended September 30, 2022, the Company received the combined net proceeds of $20.5 million from the sales on a Supplier Advance Basis. The Company recorded revenue of $15.8 million related to the gold sales, with the remaining $4.7 million representing 2,860 ounces pledged but not yet delivered to Auramet, recorded as a contract liability on the Consolidated Balance Sheets. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 9 Months Ended |
Sep. 30, 2022 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 17 CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Consolidated Balance Sheets Consolidated Statements of Cash Flows September 30, 2022 December 31, 2021 Cash and cash equivalents $ 54,882 $ 54,287 Restricted cash - current - 2,550 Restricted cash - non-current 3,797 3,797 Total cash, cash equivalents, and restricted cash $ 58,679 $ 60,634 As of September 30, 2022, of $54.9 million of cash and cash equivalents, $13.3 million in cash and $40 million in bankers’ acceptance notes with maturity dates between 34 (Note 16). |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2022 | |
NON-CONTROLLING INTERESTS | |
NON-CONTROLLING INTERESTS | NOTE 18 NON-CONTROLLING INTERESTS On August 23, 2021, the Company announced that its subsidiary, McEwen Copper, closed the first tranche of a Series B private placement offering in which McEwen Copper issued 4,000,000 common shares at a price of $10.00 per share for gross proceeds of $40.0 million. An affiliate of Mr. McEwen purchased all the shares in this first tranche. As of August 23, 2021 and December 31, 2021, the affiliate held 18.6% ownership of McEwen Copper. As of September 30, 2022, this ownership was decreased to 15.57% due to the closing of the second and the third tranches of Series B private placement offering. As a result of the common shares issued, the Company’s 100% ownership in McEwen Copper was reduced by 18.6% to 81.4%. The Company assessed 18.6% as non-redeemable non-controlling interests. Consequently, the Company recorded $14.9 million as non-controlling interests and $25.1 million as additional paid-in-capital on the Consolidated Balance Sheets in 2021. On June 21, 2022, the Company announced that McEwen Copper had closed the second tranche of the Series B private placement offering in which McEwen Copper issued 1,500,000 additional common shares at a price of $10.00 per share for gross proceeds of $15.0 million. As a result of the common shares issued, the Company’s 81.4% ownership in McEwen Copper was reduced by 5.31% to 76.09%. The Company assessed 23.91% as non-redeemable non-controlling interests. Consequently, the Company recorded $7.6 million as non-controlling interests and $7.4 million as additional paid-in-capital in 2022. On August 31, 2022, the Company announced that McEwen Copper had closed its third and final tranche of the Series B private placement offering under which McEwen Copper issued 2,685,000 additional common shares at a price of $10.00 per share for gross proceeds of $26.9 million. As a result of the common shares issued, the Company’s 76.09% ownership in McEwen Copper was reduced by 7.96% to 68.13%. The Company assessed 31.87% as non-redeemable non-controlling interests. Consequently, the Company recorded $16.1 million as non-controlling interests and $10.8 million as additional paid-in-capital in 2022. On September 30, 2022, the Company recorded $0.3 million net loss attributed to non-controlling interests of 31.87%. |
OPERATING SEGMENT REPORTING (Ta
OPERATING SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
OPERATING SEGMENT REPORTING | |
Schedule of significant information relating to reportable operating segments | Three months ended September 30, 2022 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 12,596 $ 13,058 $ 334 $ — $ — $ 25,988 Production costs applicable to sales (12,357) (6,196) (1,619) — — (20,172) Depreciation and depletion (1,514) (2,799) — — — (4,313) Gross profit (loss) (1,275) 4,063 (1,285) — — 1,503 Advanced projects (4) (30) (1,160) — (7,623) (8,817) Exploration (1,055) (2,733) — — (141) (3,929) Income from investment in Minera Santa Cruz S.A. — — — 758 — 758 Segment income (loss) $ (2,334) $ 1,300 $ (2,445) $ 758 $ (7,764) $ (10,485) General and administrative and other (581) Loss before income and mining taxes $ (11,066) Capital expenditures $ 1,012 $ 4,080 $ 2,827 $ — $ 159 $ 8,078 Nine months ended September 30, 2022 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 34,334 $ 46,200 $ 1,643 $ — $ — $ 82,177 Production costs applicable to sales (34,834) (26,103) (10,002) — — (70,939) Depreciation and depletion (3,275) (8,219) — — — (11,494) Gross profit (loss) (3,775) 11,878 (8,359) — — (256) Advanced projects (52) (227) (3,135) — (31,460) (34,874) Exploration (3,747) (7,056) — — (629) (11,432) Impairment of mineral property interests and plant and equipment (Note 8) — — — — — — Income from investment in Minera Santa Cruz S.A. — — — 2,149 — 2,149 Segment income (loss) $ (7,574) $ 4,595 $ (11,494) $ 2,149 $ (32,089) $ (44,413) General and Administrative and other (938) Loss before income and mining taxes $ (45,351) Capital expenditures $ 1,508 $ 11,633 $ 2,827 $ — $ 544 $ 16,512 Three months ended September 30, 2021 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 21,683 $ 14,227 $ 1,219 $ — $ — $ 37,129 Production costs applicable to sales (18,753) (9,635) (2,372) — — (30,760) Depreciation and depletion (2,140) (3,885) — — — (6,025) Gross profit (loss) 790 707 (1,153) — — 344 Advanced projects (234) (871) (1,872) — (1,036) (4,013) Exploration (1,432) (4,817) 4 — — (6,245) Loss from investment in Minera Santa Cruz S.A. — — — (2,650) — (2,650) Segment loss $ (876) $ (4,981) $ (3,021) $ (2,650) $ (1,036) $ (12,564) General and administrative and other (5,678) Loss before income and mining taxes $ (18,242) Capital expenditures $ 353 $ 10,775 $ — $ — $ — $ 11,128 Nine months ended September 30, 2021 USA Canada Mexico MSC Los Azules Total Revenue from gold and silver sales $ 60,919 $ 34,966 $ 5,690 $ — $ — $ 101,575 Production costs applicable to sales (53,376) (22,622) (9,483) — — (85,481) Depreciation and depletion (6,208) (10,469) — — — (16,677) Gross profit (loss) 1,335 1,875 (3,793) — — (583) Advanced projects (203) (2,058) (3,338) — (1,036) (6,635) Exploration (3,887) (12,532) (14) — (1,684) (18,117) Loss from investment in Minera Santa Cruz S.A. — — — (5,077) — (5,077) Segment loss $ (2,755) $ (12,715) $ (7,145) $ (5,077) $ (2,720) $ (30,412) General and Administrative and other (9,322) Loss before income and mining taxes $ (39,734) Capital expenditures $ 1,110 $ 20,342 $ — $ — $ — $ 21,452 |
Schedule of geographic information | Long-lived Assets Revenue (1) Revenue (1) September 30, December 31, Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 2022 2021 USA $ 38,404 $ 37,877 $ 12,596 $ 21,683 $ 34,334 $ 60,919 Canada 95,570 93,294 13,058 14,227 46,200 34,966 Mexico 29,385 26,561 334 1,219 1,643 5,690 Argentina (2) 285,709 282,583 — — — — Total consolidated (3) $ 449,068 $ 440,315 $ 25,988 $ 37,129 $ 82,177 $ 101,575 (1) Presented based on the location from which the precious metals originated. (2) Includes Investment in MSC and other subsidiaries of $92.8 million as of September 30, 2022 (December 31, 2021 – $90.9 million). (3) Total excludes $0.4 million related to the Company's Right of use office lease asset as the business activities related to corporate are not considered to be a part of the operating segments. |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
OTHER INCOME | |
Schedule of other income (expense) | Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 COVID-19 Relief $ — $ 611 $ — $ 3,447 Unrealized and realized gain (loss) on investments (1,367) 18 (754) 20 Foreign currency gain on Blue Chip Swap 5,721 — 12,309 — Foreign currency gain, other 1,412 654 3,880 751 Other income (loss), net 562 (19) 565 2,253 Total other income $ 6,328 $ 1,264 $ 16,000 $ 6,471 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENTS | |
Summary of investment portfolio | As at Additions/ Net gain Disposals/ Unrealized As at December 31, transfers during (loss) on transfers during gain (loss) on September 30, 2021 period securities sold period securities held 2022 Marketable equity securities – fair value 1,644 — — — (375) 1,269 Warrants 162 — — — — 162 Total Investments $ 1,806 $ — $ — $ — $ (375) $ 1,431 |
RECEIVABLES, PREPAIDS AND OTH_2
RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS | |
Schedule of balances in receivables and other current assets | September 30, 2022 December 31, 2021 Government sales tax receivable $ 1,989 $ 3,708 Prepaids and other assets 7,614 6,883 Receivables, prepaid and other current assets $ 9,603 $ 10,591 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
INVENTORIES | |
Schedule of inventories | September 30, 2022 December 31, 2021 Material on leach pads $ 8,425 $ 4,660 In-process inventory 4,203 3,049 Stockpiles 14,010 5,105 Precious metals 1,550 1,819 Materials and supplies 6,807 3,702 $ 34,995 $ 18,335 Less long-term portion (4,843) (2,543) Current portion $ 30,152 $ 15,792 |
INVESTMENT IN MINERA SANTA CR_2
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |
Summary of MSC's financial information from operations | Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Minera Santa Cruz S.A. ( 100% ) Revenue from gold and silver sales $ 65,278 $ 72,098 $ 176,808 $ 195,797 Production costs applicable to sales (48,930) (47,911) (130,231) (125,167) Depreciation and depletion (9,376) (11,690) (21,629) (28,422) Gross profit 6,972 12,498 24,948 42,209 Exploration (1,960) (2,710) (6,788) (7,887) Other expenses (1) (5,648) (8,010) (16,000) (28,231) Net income (loss) before tax $ (636) $ 1,777 $ 2,160 $ 6,091 Current and deferred tax expense 4,318 (2,336) 7,247 (5,902) Net income (loss) $ 3,682 $ (559) $ 9,407 $ 189 Portion attributable to McEwen Mining Inc. ( 49% ) Net income (loss) $ 1,804 $ (273) $ 4,610 $ 93 Amortization of fair value increments (1,228) (2,481) (2,929) (5,571) Income tax recovery 182 104 468 401 Income (loss) from investment in MSC, net of amortization $ 758 $ (2,650) $ 2,149 $ (5,077) (1) Other expenses include foreign exchange, accretion of asset retirement obligations, other finance-related expenses. |
Schedule of change in the entity's investment in MSC | Nine months ended September 30, 2022 Year ended Investment in MSC, beginning of period $ 90,961 $ 108,326 Attributable net income from MSC 4,610 132 Amortization of fair value increments (2,929) (8,331) Income tax recovery 468 666 Dividend distribution received (286) (9,832) Investment in MSC, end of period $ 92,824 $ 90,961 |
Summary of key assets and liabilities, before and after adjustments to fair value | As at September 30, 2022 Balance excluding FV increments Adjustments Balance including FV increments Current assets $ 89,774 $ 1,151 $ 90,925 Total assets $ 197,130 $ 84,120 $ 281,250 Current liabilities $ (57,912) $ — $ (57,912) Total liabilities $ (90,203) $ (1,622) $ (91,825) |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
DEBT | |
Schedule of debt activity | Nine months ended September 30, 2022 Year ended Balance, beginning of year $ 48,866 $ 48,160 Promissory note- initial recognition 15,000 — Interest expense 4,114 5,581 Interest payments (3,646) (4,875) Bonus interest - Equity based financing fee (500) — Balance, end of period $ 63,834 $ 48,866 Less current portion 4,000 — Long-term portion $ 59,834 $ 48,866 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
ASSET RETIREMENT OBLIGATIONS | |
Schedule of reconciliation of asset retirement obligations | Nine months ended September 30, 2022 Year ended Asset retirement obligation liability, beginning balance $ 35,452 $ 34,000 Settlements (372) (2,225) Accretion of liability 1,572 2,405 Revisions to estimates and discount rate 2,436 1,257 Foreign exchange revaluation (999) 15 Asset retirement obligation liability, ending balance $ 38,089 $ 35,452 Less current portion 12,889 5,761 Long-term portion $ 25,200 $ 29,691 |
Schedule of reclamation expense | The Company’s reclamation expenses for the periods presented consisted of the following: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Reclamation adjustment reflecting updated estimates $ — $ 830 $ 986 $ 1,256 Reclamation accretion 526 479 1,573 1,470 Total $ 526 $ 1,309 $ 2,559 2,725 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party expense and outstanding accounts payable | The Company recorded the following expense in respect to the related parties outlined below during the periods presented: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Lexam L.P. — 4 — 78 REVlaw 49 69 $ 303 210 The Company has the following outstanding accounts payable balances in respect to the related parties outlined below: September 30, 2022 December 31, 2021 REVlaw $ 66 137 |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 Fair value as at December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Marketable equity securities $ 1,269 $ — $ 1,269 $ 1,644 $ — $ 1,644 Total investments $ 1,269 $ — $ 1,269 $ 1,644 $ — $ 1,644 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
Schedule of reconciliation of cash and cash equivalents, and restricted cash | September 30, 2022 December 31, 2021 Cash and cash equivalents $ 54,882 $ 54,287 Restricted cash - current - 2,550 Restricted cash - non-current 3,797 3,797 Total cash, cash equivalents, and restricted cash $ 58,679 $ 60,634 |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Nature of operations and recent accounting pronouncements | ||
Ownership interests in various mines (as a percent) | 100% | |
Minera Andes Inc. | ||
Nature of operations and recent accounting pronouncements | ||
Ownership interest (as a percent) | 49% | 49% |
Minera Andes Inc. | Minera Santa Cruz S.A. [Member] | ||
Nature of operations and recent accounting pronouncements | ||
Ownership interest (as a percent) | 68% |
NATURE OF OPERATIONS AND BASI_3
NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Share consolidation and Articles of Amendment (Details) | 9 Months Ended | |
Jul. 27, 2022 shares | Sep. 30, 2022 shares | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | ||
Stock split conversion ratio | 0.10 | |
Reverse stock splits shares | 10 | |
Number of common shares after share consolidation | 200,000,002 | |
Authorized capital | 675,000,002 | |
Common stock, shares authorized | 200,000,000 | |
Preferred stock, shares authorized | 2 |
SIGNIFICANT ACCOUNTING ISSUES -
SIGNIFICANT ACCOUNTING ISSUES - Risks and Uncertainties (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||||
Mar. 02, 2022 | Jan. 29, 2021 | Dec. 31, 2020 | Sep. 10, 2020 | Sep. 30, 2022 | Dec. 31, 2021 | Aug. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Long-term debt | $ 59,834 | $ 48,866 | |||||||
Secured Debt | |||||||||
Long-term debt | $ 50,000 | ||||||||
Unsecured Debt | |||||||||
Long-term debt | $ 15,000 | ||||||||
Los Azules Copper Project | |||||||||
Long-term debt | $ 28,900 | $ 15,000 | |||||||
Canadian Development Expenses | Los Azules Copper Project | |||||||||
Long-term debt | 40,000 | ||||||||
Canadian Development Expenses | Equity Financing In February 2021 | |||||||||
Gross proceeds | 31,500 | ||||||||
Canadian Development Expenses | Flow Through Common Shares | |||||||||
Gross proceeds | $ 12,700 | $ 12,700 | |||||||
Canadian Exploration Expenditures | Flow Through Common Shares | |||||||||
Gross proceeds | $ 15,100 | $ 9,800 | $ 10,400 | $ 15,100 |
OPERATING SEGMENT REPORTING - S
OPERATING SEGMENT REPORTING - Summary of Reportable Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Segment Reporting | ||||
Revenue from gold and silver sales | $ 25,988 | $ 37,129 | $ 82,177 | $ 101,575 |
Depreciation and depletion | (4,313) | (6,025) | (11,494) | (16,677) |
Gross profit (loss) | 1,503 | 344 | (256) | (583) |
Advanced projects - Other | (8,817) | (4,013) | (34,874) | (6,635) |
Income (loss) from investment in Minera Santa Cruz S.A. | 758 | (2,650) | 2,149 | (5,077) |
Segment income (loss) | (10,485) | (12,564) | (44,413) | (30,412) |
General and Administrative and other | (581) | (5,678) | (938) | (9,322) |
Loss before income and mining taxes | (11,066) | (18,242) | (45,351) | (39,734) |
Capital expenditures | 8,078 | 11,128 | 16,512 | 21,452 |
United States Reportable Segment [Member] | ||||
Operating Segment Reporting | ||||
Revenue from gold and silver sales | 12,596 | 21,683 | 34,334 | 60,919 |
Depreciation and depletion | (1,514) | (2,140) | (3,275) | (6,208) |
Gross profit (loss) | (1,275) | 790 | (3,775) | 1,335 |
Advanced projects - Other | (4) | (234) | (52) | (203) |
Segment income (loss) | (2,334) | (876) | (7,574) | (2,755) |
Capital expenditures | 1,012 | 353 | 1,508 | 1,110 |
Canada | ||||
Operating Segment Reporting | ||||
Revenue from gold and silver sales | 13,058 | 14,227 | 46,200 | 34,966 |
Depreciation and depletion | (2,799) | (3,885) | (8,219) | (10,469) |
Gross profit (loss) | 4,063 | 707 | 11,878 | 1,875 |
Advanced projects - Other | (30) | (871) | (227) | (2,058) |
Segment income (loss) | 1,300 | (4,981) | 4,595 | (12,715) |
Capital expenditures | 4,080 | 10,775 | 11,633 | 20,342 |
Mexico Reportable Segment [Member] | ||||
Operating Segment Reporting | ||||
Revenue from gold and silver sales | 334 | 1,219 | 1,643 | 5,690 |
Gross profit (loss) | (1,285) | (1,153) | (8,359) | (3,793) |
Advanced projects - Other | (1,160) | (1,872) | (3,135) | (3,338) |
Segment income (loss) | (2,445) | (3,021) | (11,494) | (7,145) |
Capital expenditures | 2,827 | 2,827 | ||
MSC | ||||
Operating Segment Reporting | ||||
Income (loss) from investment in Minera Santa Cruz S.A. | 758 | (2,650) | 2,149 | (5,077) |
Segment income (loss) | 758 | (2,650) | 2,149 | (5,077) |
Los Azules | ||||
Operating Segment Reporting | ||||
Advanced projects - Other | (7,623) | (1,036) | (31,460) | (1,036) |
Segment income (loss) | (7,764) | (1,036) | (32,089) | (2,720) |
Capital expenditures | 159 | 544 | ||
Other | ||||
Operating Segment Reporting | ||||
Advanced projects - Other | (1,194) | (2,977) | (3,414) | (5,599) |
Gold and silver sales | ||||
Operating Segment Reporting | ||||
Revenue from gold and silver sales | 10,208 | 37,129 | 66,397 | 101,575 |
Product [Member] | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | (20,172) | (30,760) | (70,939) | (85,481) |
Product [Member] | United States Reportable Segment [Member] | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | (12,357) | (18,753) | (34,834) | (53,376) |
Product [Member] | Canada | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | (6,196) | (9,635) | (26,103) | (22,622) |
Product [Member] | Mexico Reportable Segment [Member] | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | (1,619) | (2,372) | (10,002) | (9,483) |
Exploration | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | (3,929) | (6,245) | (11,432) | (18,117) |
Exploration | United States Reportable Segment [Member] | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | (1,055) | (1,432) | (3,747) | (3,887) |
Exploration | Canada | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | (2,733) | (4,817) | (7,056) | (12,532) |
Exploration | Mexico Reportable Segment [Member] | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | $ 4 | (14) | ||
Exploration | Los Azules | ||||
Operating Segment Reporting | ||||
Production costs applicable to sales | $ (141) | $ (629) | $ (1,684) |
OPERATING SEGMENT REPORTING - G
OPERATING SEGMENT REPORTING - Geographic information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Segment Reporting | ||||||
Long-lived Assets | $ 449,068 | $ 449,068 | $ 440,315 | |||
Revenue | 25,988 | $ 37,129 | 82,177 | $ 101,575 | ||
Investment in MSC | 92,824 | 92,824 | 90,961 | |||
Total which excludes Company's ROU office lease asset | 400 | 400 | ||||
Minera Santa Cruz S.A. | ||||||
Operating Segment Reporting | ||||||
Revenue | 65,278 | 72,098 | 176,808 | 195,797 | ||
Investment in MSC | 92,824 | 92,824 | 90,961 | $ 108,326 | ||
UNITED STATES | ||||||
Operating Segment Reporting | ||||||
Long-lived Assets | 38,404 | 38,404 | 37,877 | |||
Revenue | 12,596 | 21,683 | 34,334 | 60,919 | ||
Canada | ||||||
Operating Segment Reporting | ||||||
Long-lived Assets | 95,570 | 95,570 | 93,294 | |||
Revenue | 13,058 | 14,227 | 46,200 | 34,966 | ||
MEXICO | ||||||
Operating Segment Reporting | ||||||
Long-lived Assets | 29,385 | 29,385 | 26,561 | |||
Revenue | 334 | $ 1,219 | 1,643 | $ 5,690 | ||
ARGENTINA | ||||||
Operating Segment Reporting | ||||||
Long-lived Assets | 285,709 | 285,709 | 282,583 | |||
ARGENTINA | Minera Santa Cruz S.A. | ||||||
Operating Segment Reporting | ||||||
Investment in MSC | $ 92,800 | $ 92,800 | $ 90,900 |
OTHER INCOME - Summary of Other
OTHER INCOME - Summary of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
OTHER INCOME | ||||
COVID-19 relief | $ 611 | $ 3,447 | ||
Unrealized and realized gain (loss) on investments | $ (1,367) | 18 | $ (754) | 20 |
Foreign currency gain on Blue Chip Swap | 5,721 | 12,309 | ||
Foreign currency gain, other | 1,412 | 654 | 3,880 | 751 |
Other income (loss), net | 562 | (19) | 565 | 2,253 |
Total other income | $ 6,328 | $ 1,264 | $ 16,000 | $ 6,471 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
OTHER INCOME | ||||
COVID-19 relief | $ 611 | $ 3,447 | ||
Realized gain from a mechanism whereby US funds are used to buy and then sell government bonds denominated in pesos | $ 5,500 | $ 11,600 | ||
Foreign currency gain | 5,700 | 12,300 | ||
Realized loss on investments | $ (200) | $ 700 |
INVESTMENTS - Activity in Inves
INVESTMENTS - Activity in Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Investments rollforward | ||
Opening balance | $ 1,806 | |
Net gain (loss) on securities sold | $ (200) | 700 |
Unrealized gain (loss) on securities held | (375) | |
Fair Value end of the period | 1,431 | 1,431 |
Marketable equity securities | ||
Investments rollforward | ||
Opening balance | 1,644 | |
Unrealized gain (loss) on securities held | (375) | |
Fair Value end of the period | 1,269 | 1,269 |
Warrants | ||
Investments rollforward | ||
Opening balance | 162 | |
Fair Value end of the period | $ 162 | $ 162 |
INVESTMENTS (Details)
INVESTMENTS (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jun. 23, 2021 USD ($) property $ / shares shares | Sep. 30, 2021 USD ($) | |
Investments | ||
Number of common shares | shares | 4,963,455 | |
Warrants received | shares | 2,481,727 | |
Proceeds from sale of investments | $ | $ 492 | |
Disposal Group | Projects in Nevada | ||
Investments | ||
Number of projects sold | property | 2 | |
Cash consideration received | $ | $ 500 | |
Percentage of common shares received | 10% | |
Price per common share for each warrant | $ / shares | $ 0.60 |
RECEIVABLES, PREPAIDS AND OTH_3
RECEIVABLES, PREPAIDS AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Receivables, prepaids and other current assets | |||
Government sales tax receivable | $ 1,989 | $ 3,708 | |
Prepaids and other assets | 7,614 | 6,883 | |
Receivables and other current assets | 9,603 | 10,591 | |
VAT collected | 1,200 | $ 1,100 | |
Black Fox Complex | |||
Receivables, prepaids and other current assets | |||
Government sales tax receivable | 200 | 2,200 | |
Mexican Tax Authority | |||
Receivables, prepaids and other current assets | |||
Government sales tax receivable | $ 800 | $ 900 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Inventories | |||
Material on leach pads | $ 8,425 | $ 4,660 | |
In-process inventory | 4,203 | 3,049 | |
Stockpiles | 14,010 | 5,105 | |
Precious metals | 1,550 | 1,819 | |
Materials and supplies | 6,807 | 3,702 | |
Inventories | 34,995 | 18,335 | |
Less long-term portion | (4,843) | (2,543) | |
Current portion | 30,152 | $ 15,792 | |
Cost Of Sales [Member] | |||
Inventories | |||
Inventory write-down | 5,900 | $ 4,000 | |
Depreciation and depletion | |||
Inventories | |||
Inventory write-down | 300 | 300 | |
Black Fox Complex | |||
Inventories | |||
Current portion | 1,600 | 400 | |
Gold Bar mine | |||
Inventories | |||
Current portion | 1,400 | ||
El Gallo Project | |||
Inventories | |||
Current portion | $ 4,600 | $ 2,500 |
MINERAL PROPERTY INTERESTS AN_2
MINERAL PROPERTY INTERESTS AND PLANT AND EQUIPMENT (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
MINERAL PROPERTY INTERESTS | |
Impairment charges | $ 0 |
INVESTMENT IN MINERA SANTA CR_3
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE - Summary of Operating Results from MSC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||||
Revenue from gold and silver sales | $ 25,988 | $ 37,129 | $ 82,177 | $ 101,575 | |
Depreciation and depletion | (4,313) | (6,025) | (11,494) | (16,677) | |
Net income before tax | (11,066) | (18,242) | (45,351) | (39,734) | |
Net income (loss) | (10,530) | (17,401) | (43,712) | (35,856) | |
Income tax recovery | 524 | 841 | 1,339 | 3,878 | |
Income (loss) from investment in MSC, net of amortization | $ 758 | $ (2,650) | $ 2,149 | $ (5,077) | |
Subsidiary (as a percent) | 100% | 100% | 100% | 100% | |
Subsidiary of Common Parent [Member] | |||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||||
Ownership interest (as a percent) | 49% | 49% | 49% | 49% | |
Minera Santa Cruz S.A. [Member] | |||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||||
Income (loss) from investment in MSC, net of amortization | $ 758 | $ (2,650) | $ 2,149 | $ (5,077) | |
Minera Santa Cruz S.A. [Member] | Subsidiary of Common Parent [Member] | |||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||||
Net income (loss) | 1,804 | (273) | 4,610 | 93 | |
Amortization of fair value increments | (1,228) | (2,481) | (2,929) | (5,571) | |
Income tax recovery | 182 | 104 | 468 | 401 | |
Income (loss) from investment in MSC, net of amortization | $ 758 | (2,650) | $ 2,149 | (5,077) | |
Ownership interest (as a percent) | 68% | 68% | |||
Minera Santa Cruz S.A. [Member] | |||||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | |||||
Revenue from gold and silver sales | $ 65,278 | 72,098 | $ 176,808 | 195,797 | |
Production costs applicable to sales | (48,930) | (47,911) | (130,231) | (125,167) | |
Depreciation and depletion | (9,376) | (11,690) | (21,629) | (28,422) | |
Gross profit | 6,972 | 12,498 | 24,948 | 42,209 | |
Exploration | (1,960) | (2,710) | (6,788) | (7,887) | |
Other expenses | (5,648) | (8,010) | (16,000) | (28,231) | |
Net income before tax | (636) | 1,777 | 2,160 | 6,091 | |
Current and deferred tax expense | 4,318 | (2,336) | 7,247 | (5,902) | |
Net income (loss) | $ 3,682 | $ (559) | 9,407 | $ 189 | |
Net income (loss) | 4,610 | $ 132 | |||
Amortization of fair value increments | (2,929) | (8,331) | |||
Income tax recovery | $ 468 | $ 666 |
INVESTMENT IN MINERA SANTA CR_4
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE - Changes in Company's Investment in MSC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Change in the investment in MSC | |||||
Investment in MSC, beginning of period | $ 90,961 | ||||
Income tax recovery | $ 524 | $ 841 | 1,339 | $ 3,878 | |
Investment in MSC, end of period | 92,824 | 92,824 | $ 90,961 | ||
Minera Santa Cruz S.A. [Member] | |||||
Change in the investment in MSC | |||||
Dividend distribution received | (286) | (7,561) | (9,832) | ||
Minera Santa Cruz S.A. [Member] | |||||
Change in the investment in MSC | |||||
Investment in MSC, beginning of period | 90,961 | 108,326 | 108,326 | ||
Attributable net income from MSC | 4,610 | 132 | |||
Amortization of fair value increments | (2,929) | (8,331) | |||
Income tax recovery | 468 | 666 | |||
Investment in MSC, end of period | $ 92,824 | 92,824 | $ 90,961 | ||
Dividends received | $ 300 | $ 7,600 |
INVESTMENT IN MINERA SANTA CR_5
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE - Assets and Liabilities Associated with MSC (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | $ 96,068 | $ 85,026 |
Total assets | 545,136 | 525,341 |
Current liabilities | (58,060) | (52,399) |
Total liabilities | (146,811) | $ (135,400) |
Balance excluding FV increments | Minera Santa Cruz S.A. | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 89,774 | |
Total assets | 197,130 | |
Current liabilities | (57,912) | |
Total liabilities | (90,203) | |
Adjustments | Minera Santa Cruz S.A. | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 1,151 | |
Total assets | 84,120 | |
Total liabilities | (1,622) | |
Balance including FV increments | Minera Santa Cruz S.A. | ||
INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE | ||
Current assets | 90,925 | |
Total assets | 281,250 | |
Current liabilities | (57,912) | |
Total liabilities | $ (91,825) |
DEBT (Details)
DEBT (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 02, 2022 | Jun. 25, 2020 | Aug. 10, 2018 | Jun. 30, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
LONG-TERM DEBT | |||||||||||||
Sale of flow-through shares | $ 14,400,000 | $ 10,785,000 | |||||||||||
Term Loan | |||||||||||||
LONG-TERM DEBT | |||||||||||||
Working capital covenant | $ 10,000,000 | ||||||||||||
Term Loan | Chairman and Chief Executive Officer [Member] | |||||||||||||
LONG-TERM DEBT | |||||||||||||
Face amount | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||||||
Term of debt instrument | 3 years | ||||||||||||
Stated interest rate (as a percent) | 9.75% | ||||||||||||
Amended loan agreement | |||||||||||||
LONG-TERM DEBT | |||||||||||||
Face amount | $ 50,000,000 | $ 50,000,000 | |||||||||||
Extension term for repayment of debt | 18 months | 2 years | |||||||||||
Term loan retirement period | 18 months | 11 months | |||||||||||
Principal repayments | $ 2,000,000 | $ 2,000,000 | |||||||||||
Final payment | 12,000,000 | $ 26,000,000 | |||||||||||
Working capital covenant | $ 10,000,000 | $ 7,000,000 | $ 5,000,000 | $ 10,000,000 | $ 7,000,000 | 5,000,000 | 10,000,000 | $ 2,500,000 | |||||
Shares issued as bonus interest | 2,091,700 | ||||||||||||
Sale of flow-through shares | $ 1,875,000 | $ 500,000 | |||||||||||
Commercial Paper | Company Controlled by Mcewen | |||||||||||||
LONG-TERM DEBT | |||||||||||||
Due to Related Parties | $ 15,000,000 | ||||||||||||
Related Party Transaction, Interest Rate | 8% |
DEBT - Rollforward (Details)
DEBT - Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Long-term debt | |||
Balance, beginning of year | $ 48,866 | $ 48,160 | $ 48,160 |
Promissory note- initial recognition | 15,000 | $ 40,000 | |
Interest expense | 4,114 | 5,581 | |
Interest payments | (3,646) | (4,875) | |
Bonus Interest - Equity based financing fee | (500) | ||
Balance, end of year | 63,834 | 48,866 | |
Less current portion | 4,000 | ||
Long-term portion | $ 59,834 | $ 48,866 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Retirement obligation rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Changes in the reclamation and remediation liability | ||
Asset retirement obligation liability, beginning balance | $ 35,452 | $ 34,000 |
Settlements | (372) | (2,225) |
Accretion of liability | 1,572 | 2,405 |
Revisions to estimates and discount rate | 2,436 | 1,257 |
Foreign exchange revaluation | (999) | 15 |
Asset retirement obligation liability, ending balance | 38,089 | 35,452 |
Less current portion | 12,889 | 5,761 |
Long-term portion | $ 25,200 | $ 29,691 |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS - Reclamation and Accretion (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclamation obligations | ||||
Reclamation adjustment reflecting updated estimates | $ 830 | $ 986 | $ 1,256 | |
Reclamation accretion | $ 526 | 479 | 1,573 | 1,470 |
Total | $ 526 | $ 1,309 | $ 2,559 | $ 2,725 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | 21 Months Ended | |||||
Mar. 02, 2022 | Jan. 29, 2021 | Dec. 31, 2020 | Sep. 10, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||||||
Net proceeds | $ 14,400 | $ 10,785 | ||||||
Issuance costs | $ 700 | |||||||
Sale of common stock for cash, net of issuance costs | $ 41,263 | $ 29,875 | ||||||
Canadian Development Expenses | ||||||||
Price per unit | $ 10.10 | |||||||
Equity Financing In February 2021 | Canadian Development Expenses | ||||||||
Gross proceeds | $ 31,500 | |||||||
Common Stock [Member] | ||||||||
Number of units issued | 1,260,000 | |||||||
Net proceeds | $ 10,785 | |||||||
Flow Through Common Shares | Canadian Development Expenses | ||||||||
Number of units issued | 1,260,060 | |||||||
Gross proceeds | $ 12,700 | 12,700 | ||||||
Net proceeds allocated to the sale of tax benefits | 12,000 | |||||||
Sale of common stock for cash, net of issuance costs | 10,800 | |||||||
Exploration expenditures | 12,700 | |||||||
Flow Through Common Shares | Canadian Exploration Expenditures | ||||||||
Number of units issued | 1,450,000 | 766,990 | 629,816 | |||||
Price per unit | $ 10.40 | $ 12.80 | $ 16.50 | |||||
Gross proceeds | $ 15,100 | $ 9,800 | $ 10,400 | 15,100 | ||||
Net proceeds | 9,800 | 9,800 | ||||||
Issuance costs | 0 | 600 | ||||||
Net proceeds allocated to the sale of tax benefits | 4,100 | $ 1,200 | 2,100 | 2,000 | ||||
Sale of common stock for cash, net of issuance costs | 10,300 | $ 7,700 | $ 7,800 | |||||
Exploration expenditures | $ 6,200 | $ 12,700 | $ 18,900 | |||||
Recent Raise | $15.1 | |||||||
Flow Through CEE | ||||||||
Issuance costs | $ 800 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Options and warrants outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares) | 467,499 | 646,005 |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Options and warrants outstanding not included in the computation of diluted weighted average shares because their effect would have been anti-dilutive (in shares) | 2,977,077 | 2,977,077 |
RELATED PARTY TRANSACTIONS - Ex
RELATED PARTY TRANSACTIONS - Expense and Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lexam LP [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Expense | $ 4 | $ 78 | |||
Entity Affiliated With Related Party [Member] | REVlaw | |||||
RELATED PARTY TRANSACTIONS | |||||
Expense | $ 49 | $ 69 | $ 303 | $ 210 | |
Related party outstanding accounts payable (receivable) | $ 66 | $ 66 | $ 137 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2022 | Mar. 02, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Aug. 10, 2018 | |
RELATED PARTY TRANSACTIONS | |||||||
Sale of flow-through shares | $ 14,400 | $ 10,785 | |||||
Chairman and Chief Executive Officer | Term Loan | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Face amount | $ 50,000 | $ 50,000 | $ 50,000 | ||||
Long-term debt from related party | 25,000 | 25,000 | |||||
Affiliate of Robert McEwen | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Debt interest expense | $ 600 | $ 600 | $ 1,800 | $ 1,800 | |||
Company Controlled by Mcewen | Commercial Paper | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Debt interest expense | $ 500 | ||||||
Due to Related Parties | $ 15,000 | ||||||
Related Party Transaction, Interest Rate | 8% |
FAIR VALUE ACCOUNTING (Details)
FAIR VALUE ACCOUNTING (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Jun. 23, 2021 $ / shares | |
Liabilities: | |||
Long term debt | $ 63,800 | $ 48,900 | |
Impairment of long-lived assets | 0 | ||
Disposal Group | Projects in Nevada | |||
Liabilities: | |||
Price per common share for each warrant | $ / shares | $ 0.60 | ||
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Investments | 1,269 | 1,644 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Investments | 1,269 | 1,644 | |
Marketable equity securities. | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Investments | 1,269 | 1,644 | |
Marketable equity securities. | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Investments | $ 1,269 | $ 1,644 | |
Warrant | Disposal Group | Projects in Nevada | |||
Liabilities: | |||
Price per common share for each warrant | $ / shares | $ 0.60 | ||
Warrants exercised | shares | 0 | ||
Warrant | Volatility | Valuation Technique, Option Pricing Model | Projects in Nevada | |||
Liabilities: | |||
Average volatility | 94.6 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Reclamation Bonds and Surety Bonds (Details) $ in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 CAD ($) | |
Surety Bonds | ||
Reclamation Bonds | ||
Percentage of annual fees on surety bonds | 2.30% | 2.30% |
Percentage of required deposit on value of surety bonds | 10% | 10% |
Restricted cash | $ 3.8 | |
Surety Bonds | Nevada | ||
Reclamation Bonds | ||
Surety bonding obligation | 25.3 | |
Surety Bonds | Canada [Member] | ||
Reclamation Bonds | ||
Surety bonding obligation | 11.4 | $ 15.6 |
Reclamation Bonds | Black Fox Complex | ||
Reclamation Bonds | ||
Reclamation bonding obligation | 11.4 | $ 15.6 |
Reclamation Bonds | Tonkin and Gold Bar Properties | ||
Reclamation Bonds | ||
Reclamation bonding obligation | 25.3 | |
Reclamation Bonds | Timmins | ||
Reclamation Bonds | ||
Restrictive time deposits for reclamation bonding | $ 0.1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Streaming Agreement (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Aug. 25, 2017 $ / oz | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Black Fox Complex | |||||
Other commitments | |||||
Revenue of acquiree since acquisition date and implementation of streaming agreement | $ 1.2 | $ 0.9 | |||
Pike River property | |||||
Other commitments | |||||
Obligation to sell (as a percent) | 6.30% | ||||
Black Fox Complex | |||||
Other commitments | |||||
Obligation to sell (as a percent) | 8% | ||||
Long term gold price (in dollars per ounce) | $ / oz | 561 | ||||
Revenue of acquiree since acquisition date and implementation of streaming agreement | $ 0.4 | $ 0.3 | |||
Black Fox Complex | Maximum [Member] | |||||
Other commitments | |||||
Inflation adjustment (as a percent) | 2% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Flow-through Eligible Expenses (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Mar. 02, 2022 USD ($) | Jan. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 item | Sep. 30, 2022 USD ($) | |
Flow Through CDE | Froome deposit | ||||||
Other commitments | ||||||
Exploration expenditures | $ 12.7 | |||||
Flow Through CEE | ||||||
Other commitments | ||||||
Number of flow through share issuances | item | 2 | |||||
Flow Through CEE | Timmins | ||||||
Other commitments | ||||||
Exploration expenditures | $ 12.7 | $ 18.9 | ||||
Commitment amount | $ 1.3 | $ 1.3 | ||||
Gross proceeds | $ 15.1 | $ 18.3 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Prepayment Agreement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Commitments [Line Items] | ||||
Revenue | $ 25,988,000 | $ 37,129,000 | $ 82,177,000 | $ 101,575,000 |
Remaining net proceeds recorded as deferred revenue | 4,715,000 | 4,715,000 | ||
Gold and silver sales | ||||
Other Commitments [Line Items] | ||||
Revenue | 10,208,000 | $ 37,129,000 | 66,397,000 | $ 101,575,000 |
Prepayment Agreement | Auramet International LLC guarantee obligation | ||||
Other Commitments [Line Items] | ||||
Remaining net proceeds recorded as deferred revenue | $ 4,700,000 | $ 4,700,000 | ||
Number of ounces of gold pledged but not delivered | 2,860 | 2,860 | ||
Prepayment Agreement | Auramet International LLC guarantee obligation | Auramet Revolving Facility [Member] | ||||
Other Commitments [Line Items] | ||||
Net proceeds from Auramet Facility | $ 20,500,000 | $ 20,500,000 | ||
Prepayment Agreement | Auramet International LLC guarantee obligation | Gold and silver sales | ||||
Other Commitments [Line Items] | ||||
Revenue | $ 15,800,000 | $ 15,800,000 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Cash and cash equivalents (Note 17) | $ 54,882 | $ 54,287 | ||
Restricted cash - current | 2,550 | |||
Restricted cash - non-current | 3,797 | 3,797 | ||
Total cash, cash equivalents, and restricted cash | 58,679 | $ 60,634 | $ 69,319 | $ 24,438 |
Cash | 13,300 | |||
Bankers' acceptance notes | $ 40,000 | |||
Minimum | ||||
Term of debt instrument | 34 days | |||
Maximum | ||||
Term of debt instrument | 81 days |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2022 | Jun. 21, 2022 | Aug. 23, 2021 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Noncontrolling Interest | ||||||||||
Issuance of equity by subsidiary (Note 18) | $ 26,850 | $ 40,000 | $ 41,350 | $ 40,000 | ||||||
Net loss | (10,542) | (17,401) | (44,012) | (35,856) | ||||||
Noncontrolling Interest | ||||||||||
Noncontrolling Interest | ||||||||||
Issuance of equity by subsidiary (Note 18) | 16,114 | $ 14,914 | $ 7,600 | 23,707 | $ 14,914 | $ 14,900 | ||||
Net loss | $ (12) | $ (300) | ||||||||
Additional Paid-in Capital | ||||||||||
Noncontrolling Interest | ||||||||||
Issuance of equity by subsidiary (Note 18) | $ 7,400 | $ 25,100 | ||||||||
McEwen Copper | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by company before private placement | 81.40% | 76.09% | 100% | |||||||
McEwen Copper | Minimum | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 18.60% | |||||||||
McEwen Copper | Maximum | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 81.40% | |||||||||
McEwen Copper | Noncontrolling Interest | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 31.87% | 23.91% | 31.87% | |||||||
McEwen Copper | Additional Paid-in Capital | ||||||||||
Noncontrolling Interest | ||||||||||
Issuance of equity by subsidiary (Note 18) | $ 10,800 | |||||||||
Series B Private Placement Offering - Tranche One | McEwen Copper | ||||||||||
Noncontrolling Interest | ||||||||||
Sale of flow-through shares (in shares) | 4,000,000 | |||||||||
Share price | $ 10 | |||||||||
Gross proceeds from private placement offering | $ 40,000 | |||||||||
Percentage of ownership by noncontrolling shareholders | 18.60% | |||||||||
Series B Private Placement Offering - Tranche One | McEwen Copper | Affiliate of Robert McEwen | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 18.60% | 18.60% | ||||||||
Series B Private Placement Offering - Tranche Two | McEwen Copper | ||||||||||
Noncontrolling Interest | ||||||||||
Sale of flow-through shares (in shares) | 1,500,000 | |||||||||
Share price | $ 10 | |||||||||
Gross proceeds from private placement offering | $ 15,000 | |||||||||
Series B Private Placement Offering - Tranche Two | McEwen Copper | Minimum | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 5.31% | |||||||||
Series B Private Placement Offering - Tranche Two | McEwen Copper | Maximum | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 76.09% | |||||||||
Series B Private Placement Offering - Tranche Two | McEwen Copper | Affiliate of Robert McEwen | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 15.57% | 15.57% | ||||||||
Series B Private Placement Offering - Third and final Tranche | ||||||||||
Noncontrolling Interest | ||||||||||
Gross proceeds from private placement offering | $ 26,900 | |||||||||
Series B Private Placement Offering - Third and final Tranche | McEwen Copper | ||||||||||
Noncontrolling Interest | ||||||||||
Sale of flow-through shares (in shares) | 2,685,000 | |||||||||
Share price | $ 10 | |||||||||
Series B Private Placement Offering - Third and final Tranche | McEwen Copper | Minimum | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 7.96% | 7.96% | ||||||||
Series B Private Placement Offering - Third and final Tranche | McEwen Copper | Maximum | ||||||||||
Noncontrolling Interest | ||||||||||
Percentage of ownership by noncontrolling shareholders | 68.13% | 68.13% |