0001558370-21-010222.txt : 20210804 0001558370-21-010222.hdr.sgml : 20210804 20210804162105 ACCESSION NUMBER: 0001558370-21-010222 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 82 CONFORMED PERIOD OF REPORT: 20210630 FILED AS OF DATE: 20210804 DATE AS OF CHANGE: 20210804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: McEwen Mining Inc. CENTRAL INDEX KEY: 0000314203 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 840796160 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-33190 FILM NUMBER: 211144314 BUSINESS ADDRESS: STREET 1: SUITE 2800 STREET 2: 150 KING STREET WEST, P.O. BOX 24 CITY: TORONTO STATE: A6 ZIP: M5H 1J9 BUSINESS PHONE: 647-258-0395 MAIL ADDRESS: STREET 1: SUITE 2800 STREET 2: 150 KING STREET WEST, P.O. BOX 24 CITY: TORONTO STATE: A6 ZIP: M5H 1J9 FORMER COMPANY: FORMER CONFORMED NAME: U S GOLD CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: U S SILVER STATE MINING CORP DATE OF NAME CHANGE: 19880706 FORMER COMPANY: FORMER CONFORMED NAME: SILVER STATE MINING CORP DATE OF NAME CHANGE: 19880629 10-Q 1 mux-20210630x10q.htm 10-Q
--12-312021Q20000314203false4591880004165870000000314203us-gaap:WarrantMemberus-gaap:MeasurementInputPriceVolatilityMemberus-gaap:ValuationTechniqueOptionPricingModelMember2021-06-300000314203mux:November2019OfferingMember2021-06-300000314203mux:March2019OfferingMember2021-06-300000314203us-gaap:MexicanTaxAuthorityMember2021-06-300000314203us-gaap:MexicanTaxAuthorityMember2020-12-310000314203mux:CommonStockAndAdditionalPaidInCapitalMember2021-04-012021-06-300000314203mux:FlowthroughCommonStockMember2021-01-012021-06-300000314203mux:CommonStockAndAdditionalPaidInCapitalMembermux:FlowthroughCommonStockMember2021-01-012021-06-300000314203mux:CommonStockAndAdditionalPaidInCapitalMember2021-01-012021-06-300000314203mux:CommonStockAndAdditionalPaidInCapitalMember2020-04-012020-06-300000314203mux:CommonStockAndAdditionalPaidInCapitalMember2020-01-012020-06-300000314203us-gaap:RetainedEarningsMember2021-06-300000314203us-gaap:RetainedEarningsMember2021-03-3100003142032021-03-310000314203us-gaap:RetainedEarningsMember2020-12-310000314203us-gaap:RetainedEarningsMember2020-06-300000314203us-gaap:RetainedEarningsMember2020-03-3100003142032020-03-310000314203us-gaap:RetainedEarningsMember2019-12-310000314203mux:CommonStockAndAdditionalPaidInCapitalMember2021-06-300000314203mux:CommonStockAndAdditionalPaidInCapitalMember2021-03-310000314203mux:CommonStockAndAdditionalPaidInCapitalMember2020-12-310000314203mux:CommonStockAndAdditionalPaidInCapitalMember2020-06-300000314203mux:CommonStockAndAdditionalPaidInCapitalMember2020-03-310000314203mux:CommonStockAndAdditionalPaidInCapitalMember2019-12-310000314203mux:EquityFinancingInFebruary2021Member2021-02-090000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianDevelopmentExpensesMember2021-01-290000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianExplorationExpendituresMember2020-12-310000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianExplorationExpendituresMember2020-09-100000314203us-gaap:MineralMembermux:UnitedStatesReportableSegmentMember2021-04-012021-06-300000314203us-gaap:MineralMembermux:MexicoReportableSegmentMember2021-04-012021-06-300000314203us-gaap:MineralMembermux:CanadaReportableSegmentMember2021-04-012021-06-300000314203us-gaap:MineralMember2021-04-012021-06-300000314203country:US2021-04-012021-06-300000314203country:MX2021-04-012021-06-300000314203country:CA2021-04-012021-06-300000314203us-gaap:MineralMembermux:UnitedStatesReportableSegmentMember2021-01-012021-06-300000314203us-gaap:MineralMembermux:MexicoReportableSegmentMember2021-01-012021-06-300000314203us-gaap:MineralMembermux:CanadaReportableSegmentMember2021-01-012021-06-300000314203us-gaap:MineralMember2021-01-012021-06-300000314203country:US2021-01-012021-06-300000314203country:MX2021-01-012021-06-300000314203country:CA2021-01-012021-06-300000314203us-gaap:MineralMembermux:UnitedStatesReportableSegmentMember2020-04-012020-06-300000314203us-gaap:MineralMembermux:MexicoReportableSegmentMember2020-04-012020-06-300000314203us-gaap:MineralMembermux:CanadaReportableSegmentMember2020-04-012020-06-300000314203us-gaap:MineralMember2020-04-012020-06-300000314203country:US2020-04-012020-06-300000314203country:MX2020-04-012020-06-300000314203country:CA2020-04-012020-06-300000314203us-gaap:MineralMembermux:UnitedStatesReportableSegmentMember2020-01-012020-06-300000314203us-gaap:MineralMembermux:MexicoReportableSegmentMember2020-01-012020-06-300000314203us-gaap:MineralMembermux:CanadaReportableSegmentMember2020-01-012020-06-300000314203us-gaap:MineralMember2020-01-012020-06-300000314203country:US2020-01-012020-06-300000314203country:MX2020-01-012020-06-300000314203country:CA2020-01-012020-06-300000314203mux:TimminsPropertyInCanadaMembermux:ReclamationBondMember2021-06-300000314203us-gaap:SuretyBondMember2021-06-300000314203us-gaap:AvailableforsaleSecuritiesMember2020-04-012020-06-300000314203srt:MaximumMemberus-gaap:SubsidiaryOfCommonParentMemberus-gaap:SubsequentEventMember2021-07-062021-07-060000314203mux:ChairmanAndChiefExecutiveOfficerMemberus-gaap:SubsequentEventMember2021-07-062021-07-060000314203mux:FlowThroughEligibleCanadianExplorationExpendituresMember2020-12-310000314203country:US2021-06-300000314203country:MX2021-06-300000314203country:CA2021-06-300000314203country:AR2021-06-300000314203country:US2020-12-310000314203country:MX2020-12-310000314203country:CA2020-12-310000314203country:AR2020-12-310000314203us-gaap:RetainedEarningsMember2021-04-012021-06-300000314203us-gaap:RetainedEarningsMember2021-01-012021-06-300000314203us-gaap:RetainedEarningsMember2020-04-012020-06-300000314203us-gaap:RetainedEarningsMember2020-01-012020-06-300000314203mux:TermLoanMember2019-12-310000314203mux:TermLoanMember2021-06-300000314203mux:TermLoanMember2020-12-310000314203mux:MineraSantaCruzSAMembercountry:AR2021-06-300000314203mux:MineraSantaCruzSAMember2021-06-300000314203mux:MineraSantaCruzSAMembercountry:AR2020-12-310000314203mux:MineraSantaCruzSAMember2020-12-310000314203mux:MineraSantaCruzSAMember2019-12-310000314203us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000314203us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000314203us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300000314203us-gaap:FairValueMeasurementsRecurringMember2021-06-300000314203us-gaap:CostOfSalesMember2021-04-012021-06-300000314203mux:ElGalloProjectMember2021-04-012021-06-300000314203mux:DepreciationAndDepletionMember2021-04-012021-06-300000314203us-gaap:CostOfSalesMember2021-01-012021-06-300000314203mux:DepreciationAndDepletionMember2021-01-012021-06-300000314203mux:GoldBarMineMember2021-01-012021-03-310000314203us-gaap:CostOfSalesMember2020-04-012020-06-300000314203mux:DepreciationAndDepletionMember2020-04-012020-06-300000314203mux:BlackFoxMember2020-04-012020-06-300000314203us-gaap:CostOfSalesMember2020-01-012020-06-300000314203mux:DepreciationAndDepletionMember2020-01-012020-06-300000314203mux:BlackFoxMember2020-01-012020-06-300000314203mux:GoldBarMineMember2020-01-012020-03-310000314203mux:AffiliateOfChairmanAndChiefExecutiveOfficerMember2021-04-012021-06-300000314203mux:AffiliateOfChairmanAndChiefExecutiveOfficerMember2021-01-012021-06-300000314203mux:AffiliateOfChairmanAndChiefExecutiveOfficerMember2020-04-012020-06-300000314203mux:AffiliateOfChairmanAndChiefExecutiveOfficerMember2020-01-012020-06-300000314203mux:GoldBarMineMember2020-01-012020-06-300000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianExplorationExpendituresMember2021-04-012021-06-300000314203mux:FlowThroughEligibleCanadianDevelopmentExpensesMember2021-04-012021-06-300000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianExplorationExpendituresMember2021-01-012021-06-300000314203mux:FlowThroughEligibleCanadianExplorationExpendituresMember2021-01-012021-06-300000314203mux:FlowThroughEligibleCanadianDevelopmentExpensesMember2021-01-012021-06-300000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianExplorationExpendituresMember2020-01-012020-12-310000314203mux:FlowThroughEligibleCanadianExplorationExpendituresMember2020-01-012020-12-310000314203us-gaap:AvailableforsaleSecuritiesMember2021-06-300000314203mux:WarrantsMember2021-06-300000314203us-gaap:AvailableforsaleSecuritiesMember2020-06-300000314203us-gaap:AvailableforsaleSecuritiesMember2019-12-310000314203mux:MineraSantaCruzSAMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-06-300000314203mux:TermLoanMembermux:ChairmanAndChiefExecutiveOfficerMember2018-08-102018-08-100000314203mux:TermLoanMember2021-01-012021-06-300000314203mux:TermLoanMembermux:ChairmanAndChiefExecutiveOfficerMember2020-06-250000314203mux:AmendedLoanAgreementMember2020-06-250000314203mux:TermLoanMembermux:ChairmanAndChiefExecutiveOfficerMember2018-08-100000314203us-gaap:ProductMembermux:UnitedStatesReportableSegmentMember2021-04-012021-06-300000314203us-gaap:ProductMembermux:MexicoReportableSegmentMember2021-04-012021-06-300000314203us-gaap:ProductMembermux:CanadaReportableSegmentMember2021-04-012021-06-300000314203us-gaap:MineralExplorationMembermux:UnitedStatesReportableSegmentMember2021-04-012021-06-300000314203us-gaap:MineralExplorationMembermux:MexicoReportableSegmentMember2021-04-012021-06-300000314203us-gaap:MineralExplorationMembermux:LosAzulesReportableSegmentMember2021-04-012021-06-300000314203us-gaap:MineralExplorationMembermux:CanadaReportableSegmentMember2021-04-012021-06-300000314203us-gaap:ProductMember2021-04-012021-06-300000314203us-gaap:MineralExplorationMember2021-04-012021-06-300000314203us-gaap:ProductMembermux:UnitedStatesReportableSegmentMember2021-01-012021-06-300000314203us-gaap:ProductMembermux:MexicoReportableSegmentMember2021-01-012021-06-300000314203us-gaap:ProductMembermux:CanadaReportableSegmentMember2021-01-012021-06-300000314203us-gaap:MineralExplorationMembermux:UnitedStatesReportableSegmentMember2021-01-012021-06-300000314203us-gaap:MineralExplorationMembermux:MexicoReportableSegmentMember2021-01-012021-06-300000314203us-gaap:MineralExplorationMembermux:LosAzulesReportableSegmentMember2021-01-012021-06-300000314203us-gaap:MineralExplorationMembermux:CanadaReportableSegmentMember2021-01-012021-06-300000314203us-gaap:ProductMember2021-01-012021-06-300000314203us-gaap:MineralExplorationMember2021-01-012021-06-300000314203us-gaap:ProductMembermux:UnitedStatesReportableSegmentMember2020-04-012020-06-300000314203us-gaap:ProductMembermux:MexicoReportableSegmentMember2020-04-012020-06-300000314203us-gaap:ProductMembermux:CanadaReportableSegmentMember2020-04-012020-06-300000314203us-gaap:MineralExplorationMembermux:UnitedStatesReportableSegmentMember2020-04-012020-06-300000314203us-gaap:MineralExplorationMembermux:MexicoReportableSegmentMember2020-04-012020-06-300000314203us-gaap:MineralExplorationMembermux:LosAzulesReportableSegmentMember2020-04-012020-06-300000314203us-gaap:MineralExplorationMembermux:CanadaReportableSegmentMember2020-04-012020-06-300000314203us-gaap:ProductMember2020-04-012020-06-300000314203us-gaap:MineralExplorationMember2020-04-012020-06-300000314203us-gaap:ProductMembermux:UnitedStatesReportableSegmentMember2020-01-012020-06-300000314203us-gaap:ProductMembermux:MexicoReportableSegmentMember2020-01-012020-06-300000314203us-gaap:ProductMembermux:CanadaReportableSegmentMember2020-01-012020-06-300000314203us-gaap:MineralExplorationMembermux:UnitedStatesReportableSegmentMember2020-01-012020-06-300000314203us-gaap:MineralExplorationMembermux:MexicoReportableSegmentMember2020-01-012020-06-300000314203us-gaap:MineralExplorationMembermux:LosAzulesReportableSegmentMember2020-01-012020-06-300000314203us-gaap:MineralExplorationMembermux:CanadaReportableSegmentMember2020-01-012020-06-300000314203us-gaap:ProductMember2020-01-012020-06-300000314203us-gaap:MineralExplorationMember2020-01-012020-06-3000003142032021-06-2900003142032021-04-160000314203us-gaap:WarrantMember2021-06-2300003142032020-06-300000314203mux:MineraSantaCruzSAMembermux:CurrentPeriodValuesIncludingFairValueAdjustmentsMember2021-06-300000314203mux:MineraSantaCruzSAMembermux:CurrentPeriodValuesExcludingFairValueAdjustmentsMember2021-06-300000314203mux:MineraSantaCruzSAMembermux:CurrentPeriodFairValueAdjustmentsMember2021-06-3000003142032020-01-012020-12-3100003142032019-12-310000314203us-gaap:WarrantMember2021-01-012021-06-300000314203mux:OptionsOneMember2021-01-012021-06-300000314203us-gaap:WarrantMember2020-01-012020-06-300000314203mux:OptionsOneMember2020-01-012020-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:RevLawMember2021-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:LexamLPMember2021-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:RevLawMember2020-12-310000314203mux:EntityAffiliatedWithRelatedPartyMembermux:LexamLPMember2020-12-310000314203mux:AmendedLoanAgreementMember2022-09-302022-09-300000314203mux:AmendedLoanAgreementMember2022-06-302022-06-300000314203mux:AmendedLoanAgreementMember2022-03-312022-03-310000314203mux:AmendedLoanAgreementMember2021-03-312021-03-310000314203mux:TermLoanMember2018-08-102018-08-100000314203stpr:NVus-gaap:SuretyBondMember2021-01-012021-06-300000314203country:CAus-gaap:SuretyBondMember2021-01-012021-06-300000314203us-gaap:SuretyBondMember2021-01-012021-06-300000314203us-gaap:SubsidiaryOfCommonParentMemberus-gaap:SubsequentEventMember2021-07-062021-07-060000314203mux:EquityFinancingInFebruary2021Member2021-02-092021-02-090000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianDevelopmentExpensesMember2021-01-012021-06-300000314203mux:EquityFinancingInFebruary2021Member2021-01-012021-06-300000314203mux:CanadianExplorationExpendituresMember2020-01-012020-12-310000314203mux:MSCReportableSegmentMember2021-04-012021-06-300000314203mux:LosAzulesReportableSegmentMember2021-04-012021-06-300000314203mux:MSCReportableSegmentMember2021-01-012021-06-300000314203mux:LosAzulesReportableSegmentMember2021-01-012021-06-300000314203mux:MSCReportableSegmentMember2020-04-012020-06-300000314203mux:LosAzulesReportableSegmentMember2020-04-012020-06-300000314203mux:MSCReportableSegmentMember2020-01-012020-06-300000314203mux:LosAzulesReportableSegmentMember2020-01-012020-06-300000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianDevelopmentExpensesMember2021-01-292021-01-290000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianExplorationExpendituresMember2020-12-312020-12-310000314203mux:IssuanceOfFlowThroughCommonSharesMembermux:CanadianExplorationExpendituresMember2020-09-102020-09-100000314203mux:BlackFoxMember2021-04-012021-06-300000314203mux:BlackFoxMember2021-01-012021-06-300000314203mux:BlackFoxMember2020-04-012020-06-300000314203mux:BlackFoxMember2020-01-012020-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:RevLawMember2021-04-012021-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:RevLawMember2021-01-012021-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:LexamLPMember2021-01-012021-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:RevLawMember2020-04-012020-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:RevLawMember2020-01-012020-06-300000314203mux:EntityAffiliatedWithRelatedPartyMembermux:LexamLPMember2020-01-012020-06-300000314203mux:TonkinAndGoldBarPropertiesInAggregateMembermux:ReclamationBondMember2021-01-012021-06-300000314203mux:BlackFoxMembermux:ReclamationBondMember2021-01-012021-06-300000314203us-gaap:AvailableforsaleSecuritiesMember2020-01-012020-06-300000314203mux:PikeRiverPropertyMember2017-08-252017-08-250000314203us-gaap:AvailableforsaleSecuritiesMember2021-01-012021-06-300000314203mux:WarrantsMember2021-01-012021-06-300000314203us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2021-06-232021-06-230000314203mux:FlowThroughEligibleExpensesMember2020-01-012020-12-310000314203srt:MaximumMembermux:BlackFoxMember2017-08-252017-08-2500003142032021-06-3000003142032020-12-310000314203mux:BlackFoxMember2017-08-252017-08-250000314203us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembermux:ProjectsInNevadaMember2021-06-230000314203mux:AmendedLoanAgreementMember2020-06-252020-06-250000314203mux:TermLoanMember2020-01-012020-12-310000314203mux:MineraSantaCruzSAMember2021-04-012021-06-300000314203mux:MineraSantaCruzSAMember2020-04-012020-06-300000314203mux:MineraSantaCruzSAMember2020-01-012020-06-300000314203us-gaap:WarrantMember2021-06-300000314203mux:MineraSantaCruzSAMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-04-012021-06-300000314203mux:MineraSantaCruzSAMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-06-300000314203mux:MineraSantaCruzSAMember2021-01-012021-06-300000314203mux:MineraSantaCruzSAMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-04-012020-06-300000314203mux:MineraSantaCruzSAMember2020-01-012020-12-310000314203mux:MineraSantaCruzSAMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-01-012020-06-300000314203mux:UnitedStatesReportableSegmentMember2021-04-012021-06-300000314203mux:MexicoReportableSegmentMember2021-04-012021-06-300000314203mux:CanadaReportableSegmentMember2021-04-012021-06-3000003142032021-04-012021-06-300000314203mux:UnitedStatesReportableSegmentMember2021-01-012021-06-300000314203mux:MexicoReportableSegmentMember2021-01-012021-06-300000314203mux:CanadaReportableSegmentMember2021-01-012021-06-300000314203mux:UnitedStatesReportableSegmentMember2020-04-012020-06-300000314203mux:MexicoReportableSegmentMember2020-04-012020-06-300000314203mux:CanadaReportableSegmentMember2020-04-012020-06-3000003142032020-04-012020-06-300000314203mux:UnitedStatesReportableSegmentMember2020-01-012020-06-300000314203mux:MexicoReportableSegmentMember2020-01-012020-06-300000314203mux:CanadaReportableSegmentMember2020-01-012020-06-3000003142032020-01-012020-06-3000003142032021-08-0400003142032021-01-012021-06-30xbrli:sharesiso4217:USDxbrli:pureiso4217:USDutr:ozmux:itemmux:projectmux:propertyiso4217:CADiso4217:USDxbrli:shares

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to

Commission File Number: 001-33190

MCEWEN MINING INC.

(Exact name of registrant as specified in its charter)

Colorado

84-0796160

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

150 King Street West, Suite 2800, Toronto, Ontario Canada M5H 1J9

(Address of principal executive offices) (ZIP code)

(866) 441-0690

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, no par value

MUX

New York Stock Exchange (“NYSE”)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 459,187,391 shares outstanding as of August 4, 2021.

MCEWEN MINING INC.

FORM 10-Q

Index

Part I        FINANCIAL INFORMATION

Item 1.

    

Financial Statements

   

3

Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2021 and 2020 (unaudited)

3

Consolidated Balance Sheets at June 30, 2021 and December 31, 2020 (unaudited)

4

Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended June 30, 2021 and 2020 (unaudited)

5

Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (unaudited)

6

Notes to Consolidated Financial Statements (unaudited)

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

Item 3.

Quantitative and Qualitative Disclosure about Market Risk

45

Item 4.

Controls and Procedures

47

Part II        OTHER INFORMATION

Item 4.

Mine Safety Disclosures

48

Item 6.

Exhibits

49

SIGNATURES

50

2

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

MCEWEN MINING INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

(in thousands of U.S. dollars, except per share)

Three months ended June 30,

Six months ended June 30,

2021

    

2020

    

2021

    

2020

Revenue from gold and silver sales

$

40,706

$

18,291

$

64,446

$

49,691

Production costs applicable to sales

 

(31,132)

 

(22,354)

 

(54,721)

 

(50,741)

Depreciation and depletion

(5,515)

(4,812)

(10,652)

(11,510)

Gross profit (loss)

4,059

(8,875)

(927)

(12,560)

OTHER OPERATING EXPENSES:

Advanced projects

 

(823)

 

(2,887)

 

(2,622)

 

(5,437)

Exploration

 

(6,916)

 

(3,548)

 

(11,872)

 

(7,338)

General and administrative

 

(2,834)

 

(2,240)

 

(4,917)

 

(4,304)

Loss from investment in Minera Santa Cruz S.A. (Note 9)

 

(1,853)

 

(1,045)

 

(2,427)

 

(3,721)

Depreciation

 

(75)

 

(114)

 

(150)

 

(229)

Revision of estimates and accretion of asset retirement obligations (Note 11)

 

(505)

 

(457)

 

(1,416)

 

(1,117)

Impairment of mineral property interests and plant and equipment (Note 8)

(83,805)

Other operating

(1,968)

(1,968)

 

(13,006)

 

(12,259)

 

(23,404)

 

(107,919)

Operating loss

 

(8,947)

 

(21,134)

 

(24,331)

 

(120,479)

OTHER INCOME (EXPENSE):

Interest and other finance expenses, net

 

(1,859)

 

(1,754)

 

(2,368)

 

(3,631)

Other income (Note 4)

3,795

 

3,044

 

5,207

 

3,981

Total other income

 

1,936

 

1,290

 

2,839

 

350

Loss before income and mining taxes

(7,011)

(19,844)

(21,492)

(120,129)

Income and mining tax recovery

1,022

30

3,037

1,124

Net loss and comprehensive loss

$

(5,989)

$

(19,814)

$

(18,455)

$

(119,005)

Net loss per share (Note 13):

Basic and Diluted

$

(0.01)

$

(0.05)

$

(0.04)

$

(0.30)

Weighted average common shares outstanding (thousands) (Note 13):

Basic and Diluted

 

459,187

 

400,513

 

450,539

 

400,442

The accompanying notes are an integral part of these consolidated financial statements.

3

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

MCEWEN MINING INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands of U.S. dollars)

June 30,

December 31,

    

2021

    

2020

 

ASSETS

Current assets:

Cash and cash equivalents

$

42,232

$

20,843

Investments (Note 5)

 

1,777

 

Receivables, prepaids and other assets (Note 6)

 

5,502

 

5,690

Inventories (Note 7)

 

25,430

 

26,964

Total current assets

 

74,941

 

53,497

Mineral property interests and plant and equipment, net (Note 8)

 

340,353

 

329,112

Investment in Minera Santa Cruz S.A. (Note 9)

 

98,338

 

108,326

Inventories, long-term (Note 7)

2,716

4,785

Restricted cash (Note 17)

3,625

3,595

Other assets

 

631

 

621

TOTAL ASSETS

$

520,604

$

499,936

LIABILITIES & SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

34,561

$

36,055

Flow-through share premium (Note 12)

2,581

3,827

Lease liabilities, current portion

2,960

2,440

Asset retirement obligation, current portion (Note 11)

 

4,883

 

3,232

Total current liabilities

 

44,985

 

45,554

Lease liabilities, long-term

2,849

3,056

Debt (Note 10)

24,250

24,080

Debt to related party (Notes 10 and 14)

24,250

24,080

Asset retirement obligation, long-term (Note 11)

 

30,001

 

30,768

Other liabilities

2,963

3,257

Deferred income and mining tax liability

 

3,334

 

3,813

Total liabilities

$

132,632

$

134,608

Shareholders’ equity:

Common shares: 459,188 as of June 30, 2021 and 416,587 as of December 31, 2020 issued and outstanding (in thousands) (Note 12)

$

1,589,975

$

1,548,876

Accumulated deficit

 

(1,202,003)

 

(1,183,548)

Total shareholders’ equity

 

387,972

 

365,328

TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY

$

520,604

$

499,936

The accompanying notes are an integral part of these consolidated financial statements.

4

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

MCEWEN MINING INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(UNAUDITED)

(in thousands of U.S. dollars and shares)

Common Stock

and Additional

Paid-in Capital

Accumulated

Three months ended June 30, 2020 and 2021:

    

Shares

    

Amount

Deficit

Total

Balance, March 31, 2020

 

400,399

$

1,530,852

$

(1,130,414)

$

400,438

Stock-based compensation

 

213

213

Shares issued for debt refinancing

2,092

1,875

1,875

Net loss

(19,814)

(19,814)

Balance, June 30, 2020

 

402,491

$

1,532,940

$

(1,150,228)

$

382,712

Balance, March 31, 2021

459,188

$

1,589,763

$

(1,196,014)

$

393,749

Stock-based compensation

 

212

212

Net loss

 

(5,989)

(5,989)

Balance, June 30, 2021

 

459,188

$

1,589,975

$

(1,202,003)

$

387,972

Common Stock

 

and Additional

 

Paid-in Capital

Accumulated

 

Six months ended June 30, 2020 and 2021:

    

Shares

    

Amount

Deficit

Total

 

Balance, December 31, 2019

 

400,339

$

1,530,702

$

(1,031,223)

$

499,479

Stock-based compensation

 

 

302

 

 

302

Exercise of stock options

 

60

 

61

 

 

61

Shares issued for debt refinancing

2,092

1,875

1,875

Net loss

(119,005)

(119,005)

Balance, June 30, 2020

 

402,491

$

1,532,940

$

(1,150,228)

$

382,712

Balance, December 31, 2020

416,587

$

1,548,876

$

(1,183,548)

$

365,328

Stock-based compensation

 

439

439

Sale of flow-through common shares

12,601

10,785

10,785

Sale of shares for cash

30,000

29,875

29,875

Net loss

 

(18,455)

(18,455)

Balance, June 30, 2021

 

459,188

$

1,589,975

$

(1,202,003)

$

387,972

The accompanying notes are an integral part of these consolidated financial statements.

5

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

MCEWEN MINING INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands of U.S. dollars)

Six months ended June 30,

2021

    

2020

Cash flows from operating activities:

Net loss

$

(18,455)

$

(119,005)

Adjustments to reconcile net loss from operating activities:

Impairment of mineral property interests and plant and equipment (Note 8)

 

 

83,805

Loss from investment in Minera Santa Cruz S.A., net of amortization (Note 9)

 

2,427

 

3,721

Gain on sale of mineral property interests (Note 5)

 

(2,270)

 

Depreciation and amortization

 

10,006

 

11,629

Loss on investments (Note 5)

620

Unrealized foreign exchange loss (gain) and adjustment to estimate (Note 11)

 

334

 

(969)

Income and mining tax (recovery)

 

(3,037)

 

(1,124)

Stock-based compensation

 

439

 

302

Revision of estimates and accretion of asset retirement obligations (Note 11)

1,416

666

Change in non-cash working capital items:

Decrease in other assets related to operations

 

3,647

 

6,705

Decrease in liabilities related to operations

(2,580)

(6,449)

Cash used in operating activities

$

(8,073)

$

(20,099)

Cash flows from investing activities:

Additions to mineral property interests and plant and equipment

$

(20,372)

$

(8,503)

Proceeds from disposal of property and equipment (Note 5)

492

Proceeds from sale of investments, net of investments

 

 

305

Dividends received from Minera Santa Cruz S.A. (Note 11)

 

7,561

 

282

Cash used in investing activities

$

(12,319)

$

(7,916)

Cash flows from financing activities:

Proceeds from sale of shares, net of issuance costs (Note 12)

$

29,875

$

Sale of flow-through common shares, net of issuance costs (Note 12)

11,966

Proceeds of exercise of stock options

61

Payment of finance lease obligations

(30)

(1,057)

Cash provided by (used in) financing activities

$

41,811

$

(996)

Effect of exchange rate change on cash and cash equivalents

 

969

Increase (decrease) in cash, cash equivalents and restricted cash

 

21,419

 

(28,042)

Cash, cash equivalents and restricted cash, beginning of period

 

24,438

 

46,500

Cash, cash equivalents and restricted cash, end of period (Note 17)

$

45,857

$

18,458

Supplemental disclosure of cash flow information:

Cash received (paid) during period for:

Interest paid

$

(2,449)

$

(2,570)

Interest received

13

151

Total cash, cash equivalents, and restricted cash

$

(2,436)

$

(2,419)

The accompanying notes are an integral part of these consolidated financial statements.

6

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

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, the Los Azules copper deposit in San Juan, Argentina and a portfolio of exploration properties in Nevada, Canada, Mexico and Argentina. 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 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”) for the three and six months ended June 30, 2021 and 2020, the unaudited Consolidated Balance Sheets as at June 30, 2021 and audited Consolidated Balance Sheets as at December 31, 2020, the unaudited Consolidated Statement of Changes in Shareholders’ Equity for the three and six months ended June 30, 2021 and 2020, and the unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited consolidated financial statements. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Therefore, these financial statements should be read in conjunction with the audited financial statements and notes thereto and the summary of significant accounting policies included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. Except as noted below, there have been no material changes in the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s Form 10-K for the year ended December 31, 2020. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Inter-company accounts and transactions have been eliminated.

7

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

Risks and Uncertainties

COVID-19

The Company continues to closely monitor and respond, as possible, to the ongoing COVID-19 pandemic. As the situation continues to rapidly change globally, ensuring the health and safety of the Company’s employees and contractors is one of the Company’s top priorities. Many jurisdictions including the United States, Canada, Mexico, and Argentina have varied but continued restrictions to travel, public gatherings, and certain business operations. Unlike the year 2020, there were no suspension mandated or otherwise for the Company’s operations during 2021. In addition, vaccination rates in countries where the Company operates continues to increase.

The Company’s results of operations, financial position, and cash flows were adversely affected in 2020 due to COVID-19. The continuing impact of the COVID-19 pandemic on the Company’s results of operations, financial position and cash flows will depend on future developments, including the duration and spread of the outbreak, variants of the COVID-19 virus, the availability and distribution of vaccinations, and government advisories, restrictions, and financial assistance offered. To ensure a safe working environment for the Company’s employees and contractors, and to prevent the spread of COVID-19, the Company continues to reinforce safety measures at all sites and offices including contact tracing, restricting non-essential travel, and complying with public health orders. The impact of COVID-19 on the global financial markets, the overall economy and the Company are highly uncertain and cannot be predicted. Maintaining normal operating capacity is also dependent on the continued availability of supplies and contractors, which are out of the Company’s control. If the financial markets and/or the overall economy continue to be impacted, the Company’s results of operations, financial position and cash flows may be further affected. As the situation continues to evolve, the Company will continue to monitor market conditions closely and respond accordingly.

During the six months ended June 30, 2021, the Company has raised $12.7 million and $31.5 million through a Canadian Development Expenses (“CDE”) flow-through common share issuance and an equity financing, and raised $20.2 million in Canadian Exploration Expenditures (“CEE”) financings during 2020. However, a severe prolonged economic downturn could result in a variety of risks to the business, including impeding access to capital markets when needed on acceptable terms, if at all. The Company has completed various scenario planning analyses to consider the potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). However, there is no assurance that these measures will prevent adverse effects from COVID-19 in the future.

8

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

Recently Adopted Accounting Pronouncements

Income Taxes:  In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740).”  ASU 2019-12 simplifies the accounting for income taxes by reducing existing complexity in the accounting standard.  The update to the accounting standard is effective for the Company for the fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of ASU 2019-12 in 2021 did not have a material impact on the Company’s financial statements and related disclosures.

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 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. 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 June 30, 2021

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

$

26,343

$

12,178

$

2,185

$

$

$

40,706

Production costs applicable to sales

(21,067)

(6,331)

(3,734)

 

(31,132)

Depreciation and depletion

(2,326)

(3,189)

(5,515)

Gross profit (loss)

2,950

2,658

(1,549)

4,059

Advanced projects

116

(564)

(375)

 

(823)

Exploration

(1,591)

(4,281)

(10)

(1,034)

(6,916)

Income from investment in Minera Santa Cruz S.A.

(1,853)

 

(1,853)

Other operating

Segment (loss) income

$

1,475

$

(2,187)

$

(1,934)

$

(1,853)

$

(1,034)

$

(5,533)

General and Administrative and other

(1,478)

Loss before income and mining taxes

$

(7,011)

Capital expenditures

$

353

10,775

$

11,128

9

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

Six months ended June 30, 2021

    

USA

    

Canada

Mexico

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

$

39,236

$

20,739

$

4,471

$

$

$

64,446

Production costs applicable to sales

(34,623)

(12,987)

(7,111)

$

 

(54,721)

Depreciation and depletion

(4,068)

(6,584)

$

(10,652)

Gross profit (loss)

545

1,168

(2,640)

(927)

Advanced projects

32

(1,188)

(1,466)

$

 

(2,622)

Exploration

(2,455)

(7,716)

(17)

$

(1,684)

 

(11,872)

Impairment of mineral property interests and plant and equipment (Note 8)

$

Loss from investment in Minera Santa Cruz S.A.

(2,427)

$

 

(2,427)

Other operating

Segment loss

$

(1,878)

$

(7,736)

$

(4,123)

$

(2,427)

$

(1,684)

$

(17,848)

General and Administrative and other

(3,644)

Loss before income and mining taxes

$

(21,492)

Capital expenditures

$

1,110

$

20,342

$

$

$

$

21,452

Three months ended June 30, 2020

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

$

10,770

$

4,166

$

3,355

$

$

$

18,291

Production costs applicable to sales

(11,039)

(8,150)

(3,165)

(22,354)

Depreciation and depletion

(2,565)

(2,184)

(63)

(4,812)

Gross (loss) profit

(2,834)

(6,168)

127

(8,875)

Advanced projects

(183)

(1,760)

(944)

(2,887)

Exploration

(2,031)

(840)

(36)

(641)

(3,548)

Loss from investment in Minera Santa Cruz S.A.

(1,045)

(1,045)

Other operating

(1,390)

(578)

(1,968)

Segment loss

$

(6,438)

$

(9,346)

$

(853)

$

(1,045)

$

(641)

$

(18,323)

General and Administrative and other

(1,521)

Loss before income and mining taxes

$

(19,844)

Capital expenditures

$

2,799

$

211

$

$

$

$

3,010

10

Table of Contents

MCEWEN MINING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2021

(tabular amounts are in thousands of U.S. dollars, unless otherwise noted)

Six months ended June 30, 2020

    

USA

    

Canada

    

Mexico

    

MSC

    

Los Azules

    

Total

Revenue from gold and silver sales

$

25,088

$

16,905

$

7,698

$

$

$

49,691

Production costs applicable to sales

(28,071)

(15,357)

(7,313)

(50,741)

Depreciation and depletion

(6,428)

(4,932)

(150)

(11,510)

Gross (loss) profit

(9,411)

(3,384)

235

(12,560)

Advanced projects

(548)

(2,826)

(2,063)

(5,437)

Exploration

(2,840)

(3,245)

(36)

(1,217)

(7,338)

Impairment of mineral property interests and plant and equipment (Note 8)

(83,805)

(83,805)

Loss from investment in Minera Santa Cruz S.A.

(3,721)