McEwen Mining Inc. (NYSE:MUX) reported third-quarter 2026 financial results below analyst expectations, with lower gold production and higher operating costs contributing to a quarterly loss and a decline in revenue.
The mining company posted a loss of $0.60 per share, compared with analysts’ expectations for earnings of $0.19 per share, representing a shortfall of $0.79 per share.
Quarterly revenue decreased 14% year-on-year to $43.6 million, compared with $50.5 million in the third quarter of 2025. The result was also below the analyst consensus estimate of $51.9 million.
McEwen attributed the performance to operational difficulties at its Gold Bar, Fox and San José mining complexes, although the company reported improvements at Gold Bar during October and maintained its full-year production guidance.
McEwen generated revenue of $43.6 million during the third quarter, representing a decrease of approximately $6.9 million compared with the corresponding period a year earlier.
The reported figure was $8.3 million below analysts’ expectations.
The company also reported a quarterly loss of $0.60 per share, compared with the consensus forecast for a profit of $0.19 per share.
The results reflected lower production volumes and increased operating expenses across several mining operations.
Despite receiving higher average realised gold prices, the company reported lower revenue as production and sales volumes affected its quarterly performance.
McEwen reported total production of 22,852 gold equivalent ounces during the third quarter, compared with 29,662 ounces in the same period of 2025.
The decrease represented approximately 23% year-on-year.
The company sold 10,689 gold equivalent ounces during the quarter at an average realised price of $4,151 per ounce.
The average selling price was 19% higher than in the corresponding period of the previous year.
However, the increase in realised prices did not offset the impact of reduced production and operating difficulties at the company’s mining facilities.
The production decline reflected a combination of operational issues, development activities and weather-related disruptions.
At the Gold Bar Complex, McEwen identified operational difficulties associated with inadequate management oversight.
The company responded by making leadership changes in late August and introducing revised operating procedures.
According to McEwen, these changes contributed to improvements in production and operating costs during October.
“New operating procedures have resulted in production rising and costs dropping in October, which the team believes can be sustained,” the company stated.
Gold Bar produced 3,353 gold equivalent ounces during October, while all-in sustaining costs declined to $2,873 per ounce.
This compared with all-in sustaining costs of $3,520 per ounce during the third quarter.
The reduction represented an improvement of $647 per ounce, or approximately 18.4%, compared with the quarterly cost level.
McEwen indicated that its operating team expects the improvements to continue, although future performance will depend on the execution of the revised procedures.
At the Fox Complex, McEwen reported elevated costs associated with development work at the Froome mine and the processing of lower-grade stockpiled material.
The company said the additional development activities were undertaken to support future mining operations.
Processing lower-grade stockpiles also affected operating efficiency and costs during the reporting period.
McEwen characterised the higher expenses as temporary, reflecting the combination of mine development work and the material processed during the quarter.
The impact of these activities contributed to the company’s consolidated operating cost performance.
The San José operation experienced weather-related disruptions during the third quarter.
McEwen reported that significant snowfall affected mining activities, resulting in the processing of lower-grade material.
The company also recorded reduced metal recovery rates, further affecting production during the period.
The combination of lower grades and reduced recoveries contributed to the decline in consolidated gold equivalent output.
The San José disruptions occurred alongside the operational difficulties at Gold Bar and the additional costs at Fox, affecting the company’s overall quarterly results.
Despite the third-quarter production decline, McEwen reaffirmed its full-year 2026 guidance of between 109,000 and 120,000 gold equivalent ounces.
The midpoint of the range is 114,500 ounces.
Maintaining the annual forecast indicates that management expects production performance to improve during the fourth quarter relative to the third quarter.
The company also left its consolidated cost guidance unchanged.
Cash costs are expected to range between $2,200 and $2,450 per ounce, while all-in sustaining costs are forecast at between $2,500 and $2,750 per ounce.
The guidance reflects the company’s expectations for its mining operations during the remainder of 2026.
Actual results will depend on production volumes, operating efficiency, ore grades and cost management across its facilities.
McEwen ended the third quarter with cash holdings of $49.1 million.
The company also reported $10.4 million in marketable securities, bringing the combined value of these assets to approximately $59.5 million.
These balances provide information about the company’s available financial resources at the end of September 2026.
The company did not provide additional details in the supplied announcement regarding changes in debt balances or operating cash flow during the quarter.
McEwen’s third-quarter results reflected lower gold equivalent production, higher operating costs and revenue below analyst expectations, despite an increase in average realised selling prices.
The company reported operational improvements at Gold Bar during October following management changes and revised procedures, while development activities at Fox and weather-related disruptions at San José affected quarterly performance.
McEwen maintained its full-year production and cost guidance, indicating that management expects improved operating results during the final quarter of 2026.
Investors will be monitoring production volumes, the sustainability of cost reductions at Gold Bar and the company’s progress towards its annual output target of 109,000 to 120,000 gold equivalent ounces.
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