McEwen Inc. (NYSE/TSX: MUX) has released its fourth quarter and full year operational and financial results for the period ending December 31, 2025, showcasing a remarkable turnaround and outlining ambitious growth strategies. The company reported a net income of $38.1 million, or $0.70 per share, in Q4 2025, compared to a net loss of $8.2 million, or $0.16 per share, in the same quarter of 2024. This performance is attributed to favorable gold and silver prices trading near record highs, positioning McEwen to potentially generate substantial free cash flow in the coming year.
Financial Performance and Cash Flow Projections
Rob McEwen, CEO and Chief Owner, emphasized that the strong Q4 results enable the company to accelerate its plans to double production. McEwen projects that its 100%-owned operations could yield $80 million in free cash flow during 2026, with an additional $50 million in dividends expected from its 49% ownership in the San José Mine. This robust cash flow is critical for funding expansion initiatives aimed at increasing production to between 250,000 and 300,000 gold equivalent ounces (GEOs) by 2030, while simultaneously reducing costs and extending mine life across its operations.
Advancing Key Development Projects
McEwen is actively progressing several key projects to achieve its production goals. In Canada, the company forecasts production growth from 16,000-19,000 GEOs in 2026 to 105,000-120,000 GEOs by 2030. This expansion will primarily come from the Fox Complex in Timmins, Ontario, and the recently acquired Tartan Mine Project in Flin Flon, Manitoba.
Canadian Projects Overview
Stock Mine (Fox Complex): During 2025, McEwen invested $29.5 million in advancing the Stock Mine toward production. The project remains on schedule and budget, with initial production expected by mid-2026 and commercial production slated for 2027. The Stock Mine is projected to have a six-year life based on current mineral resource estimates, with potential for extension through ongoing drilling. It is anticipated to lower gold production costs at the Fox Complex due to reduced royalty burdens, shorter haulage distances, and the processing of softer material.
Grey Fox (Fox Complex): An updated mineral resource estimate released in January showed a 23% increase in indicated resources to 1,892,000 gold ounces. A pre-feasibility study scheduled for Q2 2026 will highlight opportunities to extend the mine life at the Fox Complex. McEwen targets combined annual production from Grey Fox and Stock of 75,000 to 90,000 GEOs.
Tartan Mine Project: Expected to deliver a mineral resource estimate by the end of March, the Tartan Mine is under review for exploration and environmental licenses. McEwen plans to restart production within existing permits, with initial annual production averaging approximately 30,000 GEOs. Potential modifications could double mill capacity from 500 to 1,000 tonnes per day, increasing production to 45,000-55,000 GEOs annually.
Los Azules Copper Project in Argentina
Concurrently, McEwen is advancing the Los Azules project, one of the world's largest undeveloped copper deposits. The company recently received approval to enter Argentina's Large Infrastructure Investment Incentive Regime (RIGI), which grants 30 years of regulatory stability, access to international arbitration, a lower tax rate, and removed exchange controls. This regime is seen as a game-changer for Argentina's mining sector.
A feasibility study released last quarter outlines a base case scenario with a 22-year project life, average copper production of 205,000 tonnes per annum in the first five years, and 148,000 tonnes per annum over the asset's life. The study also suggests potential for an additional 33 years of mine life at 141,000 tonnes per annum. At a copper price of $4.35 per pound, Los Azules has an after-tax net present value (NPV) of $2.9 billion, or approximately $23 per attributable MUX share. This increases to $6.3 billion, or about $49 per share, at $5.80 per pound.
Rob McEwen stated that Los Azules is designed as a low-cost, environmentally responsible operation, with one-quarter the water consumption and one-tenth the carbon emissions of a conventional mine. It has the potential to operate using 100% renewable power and eliminate the need for conventional tailings storage. As global copper demand rises with electrification and infrastructure investment, Los Azules represents a transformational opportunity for shareholders, aligning with McEwen's vision to build a new model for the mine of the future.
Overall, McEwen Inc.'s strong financial performance and strategic project advancements position the company for significant growth, aiming to double production by 2030 while enhancing operational efficiency and sustainability.
