OPERATING SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

OPERATING SEGMENT REPORTING

OPERATING SEGMENT REPORTING

NOTE 3 OPERATING SEGMENT REPORTING

McEwen Mining 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 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 McEwen Copper and MSC segments which are evaluated based on the attributable equity income or loss pickup. 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:

Year ended December 31, 2023	USA			Canada	Mexico		MSC		McEwen Copper (1)		Total
Revenue from gold and silver sales	$	83,409	$	81,295	$	1,527	$	—	$	—	$	166,231
Production costs applicable to sales		(67,335)		(51,895)		—		—		—		(119,230)
Depreciation and depletion		(7,130)		(22,091)		—		—		—		(29,221)
Gross profit		8,944		7,309		1,527		—		—		17,780
Advanced projects		—		—		(6,292)		—		(76,345)		(82,637)
Exploration		(6,225)		(13,556)		—		—		(386)		(20,167)
Income (loss) from equity investments		—		—		—		62		(57,821)		(57,759)
Segment loss	$	2,719	$	(6,247)	$	(4,765)	$	62	$	(134,552)	$	(142,783)
Gain on deconsolidation of McEwen Copper Inc.												222,157
General and administrative and other												(12,338)
Income before income and mining taxes											$	67,036
Capital expenditures	$	9,028	$	9,131	$	1,258	$	—	$	6,781	$	26,198

(1) Includes the consolidated results for McEwen Copper for the period from January 1, 2023 to October 10, 2023 and the loss from the equity accounted investment for the period from October 11, 2023 to December 31, 2023.

Year ended December 31, 2022	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	47,926	$	60,848	$	1,643	$	—	$	—	$	110,417
Production costs applicable to sales		(43,500)		(36,845)		(10,915)		—		—		(91,260)
Depreciation and depletion		(4,737)		(14,964)		—		—		—		(19,701)
Gross (loss) profit		(311)		9,039		(9,272)		—		—		(544)
Advanced projects		(52)		(1,206)		(4,322)		—		(61,148)		(66,728)
Exploration		(4,828)		(9,443)		(2)		—		(700)		(14,973)
Income from equity investments		—		—		—		2,776		—		2,776
Segment (loss) income	$	(5,191)	$	(1,610)	$	(13,596)	$	2,776	$	(61,848)	$	(79,469)
General and administrative and other												(819)
Loss before income and mining taxes											$	(80,288)
Capital expenditures	$	5,374	$	15,317	$	2,800	$	—	$	2,743	$	26,234

Year ended December 31, 2021	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	79,205	$	50,704	$	6,632	$	—	$	—	$	136,541
Production costs applicable to sales		(73,990)		(32,961)		(12,272)		—		—		(119,223)
Depreciation and depletion		(8,502)		(15,296)		—		—		—		(23,798)
Gross (loss) profit		(3,287)		2,447		(5,640)		—		—		(6,480)
Advanced projects		(440)		(2,635)		(4,345)		—		(5,019)		(12,439)
Exploration		(5,875)		(15,017)		(14)		—		(1,698)		(22,604)
Loss from equity investments		—		—		—		(7,533)		—		(7,533)
Segment loss	$	(9,602)	$	(15,205)	$	(9,999)	$	(7,533)	$	(6,717)	$	(49,056)
General and administrative and other												(15,143)
Loss before income and mining taxes											$	(64,199)
Capital expenditures	$	2,416	$	33,617	$	—	$	—	$	—	$	36,033

Geographic Information

Geographic information includes the following long-lived assets balances and revenues presented for the Company’s operating segments:

	Non-current Assets				Revenue (1)
	December 31,		December 31,		Year ended December 31,
	2023		2022		2023		2022		2021
USA	$	71,234	$	70,577	$	83,409	$	47,926	$	79,205
Canada		83,674		91,552		81,295		60,848		50,704
Mexico		30,304		29,219		1,527		1,643		6,632
Argentina (2), (3)		419,366		255,718		—		—		—
Total Consolidated	$	604,578	$	447,066	$	166,231	$	110,417	$	136,541

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

(2) Includes Investment in MSC of $93.2 million as of December 31, 2023 (December 31, 2022 - $93.5 million).

(3) Includes Investment in McEwen Copper of $326.1 million as of December 31, 2023 (December 31, 2022 - $nil).

As gold and silver can be sold through numerous gold and silver markets worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product. The following is a summary of revenue from gold and silver sales for significant customers for the years ended December 31, 2023, 2022 and 2021:

		Year ended December 31,
		2023		2022		2021
Auramet International LLC (“Auramet”)	$	136,911	$	50,580	$	—
Asahi Refining Inc.		24,639		57,835		134,395
Other		4,681		2,002		2,146
Revenue from gold and silver sales	$	166,231	$	110,417	$	136,541