Q2 2026 McEwen Inc Earnings Call Transcript
Key Points
- Management is taking concrete steps to address the carbonaceous ore issue at Gold Bar, including expanded metallurgical testing, improved geological modeling, and modified mine sequencing.
- Exploration programs at the Fox complex are showing significant potential to expand the resource base and extend mine life, supporting long-term value creation.
- Los Azules is advancing well, with reduced technical risk, strengthened engineering, and progress on permitting and financing discussions, positioning it as a potential world-class copper project.
- The company is actively exploring financing options for Los Azules, including export credit agencies and a potential IPO, aiming to minimize dilution and maximize shareholder value.
- The NSR royalty portfolio, including the Los Azules royalty, is being evaluated for potential value unlocking, possibly through a future spin-out or IPO.
- Improved pit design at Los Azules, based on new geotechnical data, will increase ore recovery and reduce stripping, enhancing project economics.
- Production at Gold Bar fell short of expectations due to higher-than-expected carbonaceous material, leading to lower recoveries and higher costs.
- All-in sustaining costs (AISC) rose significantly due to the production shortfall, with a fixed cost base spread over fewer ounces.
- The company faces ongoing operational challenges, including labor shortages and industry-wide cost pressures, which have impacted execution.
- Permitting for the Fox complex's hub-and-spoke model is still about two years away, delaying potential production contributions from surrounding deposits.
- No further dividends from the San Jose JV are expected this year, limiting near-term cash inflows.
- The company is exposed to rising diesel prices, which could further increase AISC if fuel costs continue to climb.
Good morning, ladies and gentlemen, and welcome to McEwen's second quarter 2026 Operating and Financial Results Conference Call.
Present from the company today are Rob McEwen, Chairman and Chief Owner Ian Ball, Executive Vice Chairman William Shaver, Chief Operating Officer Perry Ng, Chief Financial Officer.
Jeff Chan, Vice President of Finance Stefan Spears, Vice President of Corporate Development Michael Medding, Managing Director of McEwen Copper and Carmen Diaz, General Counsel and Secretary.
Other management of the company will also be available to answer questions during the call.
Please note, this event is being recorded.
For the question-and-answer session after the speaker's presentation, if you would like to ask a question, press star followed by the number one on your telephone keypad.
If you would like to withdraw your question, press star one again.
I will now turn the conference over to Mr. Rob McEwen, chief owner. Please go ahead, sir.
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