OPERATING SEGMENT REPORTING

6 Months Ended

Jun. 30, 2023

OPERATING SEGMENT REPORTING

OPERATING SEGMENT REPORTING

NOTE 2 OPERATING SEGMENT REPORTING

The Company is a mining and minerals production and exploration company focused on precious and base 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 Income or Expense line item in the below table, and are provided 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, 2023	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	15,971	$	18,424	$	—	$	—	$	—	$	34,395
Production costs applicable to sales		(17,115)		(12,455)		—		—		—		(29,570)
Depreciation and depletion		(3,263)		(5,030)		—		—		—		(8,293)
Gross profit		(4,407)		939		—		—		—		(3,468)
Advanced projects		(303)		—		(972)		—		(28,524)		(29,799)
Exploration		(1,545)		(4,307)		—		—		—		(5,852)
Loss from investment in Minera Santa Cruz S.A.		—		—		—		(914)		—		(914)
Segment loss	$	(6,255)	$	(3,368)	$	(972)	$	(914)	$	(28,524)	$	(40,033)
General and administrative and other												(5,277)
Loss before income and mining taxes											$	(45,310)
Capital expenditures	$	3,235	$	1,410	$	—	$	—	$	561	$	5,206

Six months ended June 30, 2023	USA			Canada	Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	27,559	$	41,588	$	—	$	—	$	—	$	69,147
Production costs applicable to sales		(26,455)		(26,528)		—		—		—		(52,983)
Depreciation and depletion		(4,523)		(10,666)		—		—		—		(15,189)
Gross profit		(3,419)		4,394		—		—		—		975
Advanced projects		(592)		—		(2,362)		—		(60,405)		(63,359)
Exploration		(2,320)		(9,046)		—		—		(386)		(11,752)
Loss from investment in Minera Santa Cruz S.A.		—		—		—		(4,375)		—		(4,375)
Segment loss	$	(6,331)	$	(4,652)	$	(2,362)	$	(4,375)	$	(60,791)	$	(78,511)
General and Administrative and other												(3,745)
Loss before income and mining taxes											$	(82,256)
Capital expenditures	$	6,226	$	4,183	$	—	$	—	$	1,515	$	11,924

Three months ended June 30, 2022	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	9,996	$	20,246	$	405	$	—	$	—	$	30,647
Production costs applicable to sales		(8,305)		(11,260)		(3,378)		—		—		(22,943)
Depreciation and depletion		(943)		(2,526)		—		—		—		(3,469)
Gross profit (loss)		748		6,460		(2,973)		—		—		4,235
Advanced projects		(3)		(105)		(733)		—		(14,081)		(14,922)
Exploration		(1,244)		(2,621)		—		—		(428)		(4,293)
Income from investment in Minera Santa Cruz S.A.		—		—		—		2,511		—		2,511
Segment income (loss)	$	(499)	$	3,734	$	(3,706)	$	2,511	$	(14,509)	$	(12,469)
General and administrative and other												63
Loss before income and mining taxes											$	(12,406)
Capital expenditures	$	219	$	4,008	$	—	$	—	$	150	$	4,377

Six months ended June 30, 2022	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	21,739	$	33,141	$	1,309	$	—	$	—	$	56,189
Production costs applicable to sales		(22,477)		(19,907)		(8,383)		—		—		(50,767)
Depreciation and depletion		(1,760)		(5,421)		—		—		—		(7,181)
Gross profit (loss)		(2,498)		7,813		(7,074)		—		—		(1,759)
Advanced projects		(49)		(195)		(1,976)		—		(23,837)		(26,057)
Exploration		(2,695)		(4,321)		—		—		(487)		(7,503)
Income from investment in Minera Santa Cruz S.A.		—		—		—		1,391		—		1,391
Segment loss	$	(5,242)	$	3,297	$	(9,050)	$	1,391	$	(24,324)	$	(33,928)
General and Administrative and other												(357)
Loss before income and mining taxes											$	(34,285)
Capital expenditures	$	496	$	7,554	$	—	$	—	$	384	$	8,434

Geographic Information

Geographic information includes the long-lived asset balances and revenues presented for the Company’s operating segments, as follows:

	Non-current Assets				Revenue (1)				Revenue (1)
	June 30,		December 31,		Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022		2023		2022
USA (2)	$	73,726	$	70,577	$	15,971	$	9,996	$	27,559	$	21,739
Canada		92,347		91,552		18,424		20,246		41,588		33,141
Mexico		29,217		29,219		—		405		—		1,309
Argentina (3)		252,971		255,718		—		—		—		—
Total consolidated	$	448,261	$	447,066	$	34,395	$	30,647	$	69,147	$	56,189

(1) Presented based on the location from which the precious metals originated.

(2) Includes Elder Creek exploration property of $0.8 million as of June 30, 2023 (December 31, 2022 - $0.8 million).

(3) Includes Investment in MSC of $88.8 million as of June 30, 2023 (December 31, 2022 – $93.5 million).