OPERATING SEGMENT REPORTING

9 Months Ended

Sep. 30, 2024

OPERATING SEGMENT REPORTING

OPERATING SEGMENT REPORTING

NOTE 2 OPERATING SEGMENT REPORTING

The Company is a mining and minerals production, development, 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, major mine/project level or investment 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 the General and Administrative and Other income/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 and McEwen Copper segments, which are 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, 2024	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	33,251	$	18,999	$	—	$	—	$	—	$	52,250
Production costs applicable to sales		(17,078)		(12,604)		—		—		—		(29,682)
Depreciation and depletion		(4,235)		(4,530)		—		—		—		(8,765)
Gross profit		11,938		1,865		—		—		—		13,803
Advanced projects		—		—		(2,468)		—		—		(2,468)
Exploration		(3,474)		(1,855)		—		—		—		(5,329)
Loss from equity method investments		—		—		—		(1,228)		(1,852)		(3,080)
Segment profit (loss)	$	8,464	$	10	$	(2,468)	$	(1,228)	$	(1,852)	$	2,926
General and administrative												(2,138)
Other expense												(2,055)
Loss before income and mining taxes											$	(1,267)
Capital expenditures	$	11,307	$	7,343	$	490	$	—	$	—	$	19,140

Nine months ended September 30, 2024	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	88,215	$	51,539	$	1,200	$	—	$	—	$	140,954
Production costs applicable to sales		(49,515)		(37,343)		—		—		—		(86,858)
Depreciation and depletion		(10,705)		(12,819)		—		—		—		(23,524)
Gross profit		27,995		1,377		1,200		—		—		30,572
Advanced projects		—		—		(7,912)		—		—		(7,912)
Exploration		(7,102)		(7,082)		—		—		—		(14,184)
Income (loss) from equity method investments		—		—		—		4,751		(36,680)		(31,929)
Segment profit (loss)	$	20,893	$	(5,705)	$	(6,712)	$	4,751	$	(36,680)	$	(23,453)
General and administrative												(10,672)
Other expense												(5,453)
Loss before income and mining taxes											$	(39,578)
Capital expenditures	$	12,756	$	15,547	$	2,043	$	—	$	—	$	30,346

Three months ended September 30, 2023	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	17,967	$	20,259	$	178	$	—	$	—	$	38,404
Production costs applicable to sales		(14,399)		(12,069)		—		—		—		(26,468)
Depreciation and depletion		(2,647)		(5,534)		—		—		—		(8,181)
Gross profit		921		2,656		178		—		—		3,755
Advanced projects		—		—		(1,966)		—		(18,478)		(20,444)
Exploration		(1,813)		(2,861)		—		—		—		(4,674)
Loss from equity method investments		—		—		—		(2,672)		—		(2,672)
Segment loss	$	(892)	$	(205)	$	(1,788)	$	(2,672)	$	(18,478)	$	(24,035)
General and administrative												(3,720)
Other expense												(862)
Loss before income and mining taxes											$	(28,617)
Capital expenditures	$	5,211	$	2,574	$	705	$	—	$	1,573	$	10,063

Nine months ended September 30, 2023	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	45,526	$	61,847	$	178	$	—	$	—	$	107,551
Production costs applicable to sales		(41,446)		(38,597)		—		—		—		(80,043)
Depreciation and depletion		(7,170)		(16,200)		—		—		—		(23,370)
Gross profit (loss)		(3,090)		7,050		178		—		—		4,138
Advanced projects		—		—		(4,308)		—		(78,883)		(83,191)
Exploration		(4,133)		(11,907)		—		—		(386)		(16,426)
Loss from equity method investments		—		—		—		(7,047)		—		(7,047)
Segment loss	$	(7,223)	$	(4,857)	$	(4,130)	$	(7,047)	$	(79,269)	$	(102,526)
General and administrative												(9,211)
Other income												864
Loss before income and mining taxes											$	(110,873)
Capital expenditures	$	11,437	$	6,757	$	705	$	—	$	3,088	$	21,987

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)
	September 30,		December 31,		Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023		2024		2023
USA	$	90,059	$	71,234	$	33,251	$	17,967	$	88,215	$	45,526
Canada		84,763		83,674		18,999		20,259		51,539		61,847
Mexico		32,345		30,304		—		178		1,200		178
Argentina (2)(3)		401,053		419,366		—		—		—		—
Total Consolidated	$	608,220	$	604,578	$	52,250	$	38,404	$	140,954	$	107,551

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

(2) Includes Investment in MSC of $97.6 million (December 31, 2023 – $93.2 million) and Investment in McEwen Copper of $303.5 million (December 31, 2023 – $326.1 million).

(3) Revenue is not reported on a consolidated basis for equity method investments. For a breakdown of Argentina segment revenue, refer to Note 9 Equity Method Investments.