Q1 2025 McEwen Mining Inc Earnings Call
Operator: Welcome to McEwen Mining's first quarter 2025 operating and financial results conference call.
Welcome to Mcewen Mining's first quarter 2025, operating and financial results Conference call present from the company today are Rob Mcewen, Chairman and Chief owner, William Schaefer, Chief Operating Officer, Perry Ing, Chief Financial Officer, Jeff Chen Vice President Finance its defense Spears.
Operator: Present from the company today are Rob McEwen, Chairman and Chief Owner, William Shaver, Chief Operating Officer, Perry Ing, Chief Financial Officer, Jeff Chan, Vice President Finance, Stefan Spears, Vice President Corporate Development, Michael Meding, Vice President and General Manager of McEwen Copper, and Carmen Diaz, General Counsel and Secretary.
Speaker Change: Vice President corporate development, Michael <unk>, Vice President and General manager of Mcewen, copper and Carmen D. S General Counsel and Secretary after the speaker's presentation. There will be a question and answer session. If you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question.
Operator: After the speaker's presentation, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star one.
Again press Star one.
Rob McEwen: I will now turn the call over to Mr. Rob McEwen, Chief Owner. Please go ahead, sir. Thank you, operator. Good morning and welcome fellow shareholders, analysts and interested investors. Year to date 2025 has been an eventful year for us, with the higher prices of gold, silver and copper, brightening the outlook for our operation. We've increased our liquidity by using a financial instrument called a capped call convertible note. This instrument allowed us to reduce potential share dilution by setting an effective conversion price at 100% premium to our share price at the time of the transaction. The majority of these funds will be used to advance the development of our FOX complex.
Speaker Change: I will now turn the call over to Mr. Rob Mcewen Chief owner. Please go ahead Sir.
Speaker Change: Thank you operator.
Speaker Change: Good morning, and welcome fellow shareholders analysts and interested investors.
Speaker Change: Year to date 2025 has been an eventful year for us with.
Speaker Change: With the higher prices of gold silver and copper brightening the outlook for operation.
Speaker Change: We've increased our liquidity by you.
Speaker Change: Using a financial instrument.
Speaker Change: The capped call convertible note.
Speaker Change: This instrument.
Speaker Change: Allowed us to reduce potential share dilution by setting an effective conversion price.
Speaker Change: At 100% premium to our share price at the time of the transaction.
Speaker Change: The majority of these funds will be used to advance the development of our Fox complex.
Rob McEwen: And we expect that once this work's completed and the stock and gray fox mines are in production, our consolidated annual production in 2030 could reach as high as 225,000 to 255,000 ounces. This represents an increase of over 80% above our current production.
Speaker Change: And we expect that once this work is completed and the stock and Grey Fox mines are in production our consolidated annual production in 2030.
Speaker Change: Could reach as high as 225000 to 255000 ounces.
Speaker Change: This represents an increase of over 80% above our current production.
Rob McEwen: So let's start with some other good news. It's taken some time, but our 49% interest in the San Jose mine has once again paid a dividend, and we're expecting more during the balance of the year. During the quarter, we were delighted to see Gold Bar produce 10% more gold. then budgeted at a cash cost 24% below the low end of our annual guidance. at $1,140. $6.00 as opposed to the low end of our guidance of $1500.
Speaker Change: So let's start with some other good news.
Speaker Change: It's taken some time, but our 49% interest in the San Jose mine.
Speaker Change: Once again paid a dividend and we're expecting more during the balance of the year.
Speaker Change: During the quarter, we were delighted to see goldfarb produced 10% more gold.
Speaker Change: Then back to the attic.
Speaker Change: At a cash cost of 24% below the low end of our annual guidance.
Speaker Change: At 1100 40.
Speaker Change: $6.
Speaker Change: As opposed to the low end of our guidance.
Speaker Change: <unk> hundred dollars.
Rob McEwen: However, I expect you will be alarmed when you see gold bars. All in sustaining costs per ounce of approximately $2,200 an ounce. I want to explain this high number. It was the result of our decision during the quarter to access. A gold zone that had been uneconomic at lower gold prices, but was quite economic at today's gold prices. So we decided to accelerate the stripping rate in the first half of this year. And so far, that's cost us about $7.5 million in order to increase our production and lower our all-in sustaining costs in the second half of the year.
Speaker Change: However, I expect you will be alarmed when you see gold bars.
Speaker Change: All in sustaining cost per ounce of approximately $2200 an ounce.
Speaker Change: I wanted to explain this high number it was a result of our decision during the quarter.
Speaker Change: Two <unk>.
Speaker Change: Access.
Speaker Change: Our gold zone that has been an economic at lower gold prices.
Speaker Change: That was quite economic at today's gold prices.
Speaker Change: So we decided to accelerate the stripping rate in the first half of this year.
Speaker Change: And so far that has cost us about $7 $5 million.
Speaker Change: In order to increase our production and lower our all in sustaining costs in the second half of the year.
Rob McEwen: Financially, Q125 compares well to Q124. I'll give you some examples. Our gross profit was up 68% to $10.1 million. Our adjusted EBITDA was up 38% to $8.7 million. Our cash and cash equivalents increased to $68.5 million from $17.5 million. Our consolidated working capital increased to $61 million. as opposed to a negative six and a half million. Our total debt went up to $130 million from $40 million. Our debt cost of service went from nine and three quarters to six percent. And our net debt is currently standing at just over $42 million.
Speaker Change: Financially.
Speaker Change: Q1, 'twenty five compares well Q1 24.
Speaker Change: To give you some examples our gross profit was up 68% to $10 1 million.
Speaker Change: Our adjusted EBITDA was up 38%.
Speaker Change: $8 7 million.
Speaker Change: Our cash and cash equivalents increased to 68 and a half million dollars.
Speaker Change: $17 5 million.
Our consolidated working capital increased to $61 million.
Speaker Change: As opposed to a negative six and a half million dollars.
Speaker Change: Our total debt went up to $130 million from $40 million.
Speaker Change: Our debt cost of service land from nine and three quarters to 6%.
Speaker Change: And our net debt.
Speaker Change: It's currently standing at just over $42 million.
Speaker Change: So.
Rob McEwen: Speaking of our Fox complex. It was a disappointing quarter from an operational perspective because production was lower than budget and cost per ounce were unacceptably higher than that. However, many of the reasons for the underperformance are expected to be behind us, with production and cost per ounce for the balance of the year looking much improved.
Speaker Change: Speaking of our Fox complex.
Speaker Change: It was a disappointing quarter from an operational perspective.
Speaker Change: Production was lower than budget and cost per ounce were unacceptably higher than fact.
Speaker Change: However, many of the reasons for the under performance are expected to be behind us.
Speaker Change: With production and cost per ounce for the balance of the year looking much improved.
Rob McEwen: Speaking of Fox, on a positive note, we Just received our permit to construct our ramp to the underground at the stock mine. This is a key element in our plans for the stock complex expansion. So, we have exploration going on, active programs at both the Fox Complex and at Gold Bar, and we will be releasing updates on that throughout the year.
Speaker Change: Speaking of Fox.
Speaker Change: On a positive note we <unk>.
Speaker Change: Just received our permit to construct a ramp to the underground at the stock mine.
Speaker Change: This is a key element in our plan for the stock complex expansion.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: So.
Speaker Change: Where.
Speaker Change: We have exploration going on.
Speaker Change: Active programs at both the Fox complex and at Gold bar.
Speaker Change: And we will be releasing updates on that throughout the year, we just put out a release.
Rob McEwen: We just put out a release. earlier today on our exploration. Particularly at the Gray Fox, how that resource has been growing quite rapidly. Some good grades over nice intercepts, quite optimistic that this still has quite a bit more room to grow.
Speaker Change: Sure.
Speaker Change: Earlier today on our exploration.
Im showing.
Speaker Change: Particularly at the Great Fox, how that resource has been growing quite rapidly.
Speaker Change: Some good grades over nice intercepts.
Speaker Change: Quite optimistic that this still has quite a bit more room to grow.
Speaker Change: Okay.
Rob McEwen: With that, I'd like to open the session for questions. As a reminder, to ask a question, you will need to press star followed by the number one on your telephone keypad. To withdraw your question, press star one again. We will pause for just a moment.
Speaker Change: With that I'd like.
Speaker Change: <unk> to open the session for questions.
Speaker Change: As a reminder to ask a question you will need to press star followed by the number one on your telephone keypad to withdraw your question Press Star One again, we will pause for just a moment.
Okay.
Mike Kozak: And your first question comes from a line of Mike Kozak from Cantor Fitzgerald. Your line is open. Yeah, good morning. Hi. Good morning, Rob. Good morning, Rob and team. Thanks for hosting the call.
Speaker Change: And your first question comes from the line of Mike Kozak from Cantor Fitzgerald. Your line is open.
Mike Kozak: Yeah. Good morning, Hi, Hi, good morning, good morning, Rob and team thanks for hosting the call.
Mike Kozak: I just really had one question. How much cash or cash plus investments is held within the Copper subsidiary?
Mike Kozak: It just really had one question how much cash or cash plus investments is held within the copper subsidiary.
Jeff Chan: Hi Mike. So currently the treasury for McEwen Copper is below $10 million currently. Obviously we expect to announce another financing at some point as we move towards the publication of the feasibility study, but currently cash balances held at the McEwen Copper level are relatively minimal. Okay, and then my follow up to that is that 10 million, do you think that's enough to get you to get that feasibility study complete? And then is it still I think the schedule is still there for for July, ideally? We will likely need some additional runway to get to July, Mike.
Mike Kozak: Hi, Gary Hi, Mike So currently.
Speaker Change: The treasury for Mcewen copper is below 10 million currently.
Mike Kozak: Obviously.
Mike Kozak: We expect to.
Mike Kozak: Announce another financing at some point as we move towards the publication of the feasibility study but.
Mike Kozak: Currently our cash balances health App of Mcewen copper level are relatively minimal.
Speaker Change: Okay, and then my follow up to that is that $10 million do you think that's enough to get you to get that feasibility study complete and then is it still I think the schedule is still therefore for July ideally.
Speaker Change: We will likely need.
Speaker Change: Some additional runway to get to July Mike I mean.
Jeff Chan: I mean, we just finished a geotechnical program at sites. Sites have wound down, so costs have come down significantly, but ideally we'd like to complete another round prior to the feasibility study.
Speaker Change: We just finished the geotechnical program.
Speaker Change: At sites.
Speaker Change: Wow Okay.
Speaker Change: Costs have come down significantly, but are ideally we'd like to complete.
Speaker Change: Another round prior to the feasibility study.
Speaker Change: Okay.
Mike Kozak: Okay, that's it for me.
Mike Kozak: I'll turn it over.
Speaker Change: That's it for me I'll turn it over thank you. Thanks.
Operator: Thank you.
Michael: Thanks, Michael.
Operator: Again, if you'd like to ask a question, press star 1 on your telephone keypad.
Speaker Change: Again, if you'd like to ask a question press star one on your telephone keypad. Your next question comes from the line of Bill powers private Investor Your line is open.
Bill Powers: Your next question comes from the line of Bill Powers. Private investor, your line is open. Hi, Rob. Thanks, Rob. Thanks for hosting the call. A few quick questions.
Speaker Change: Hi, Rob Thanks, a lot.
Michael: Thanks for hosting the call.
Speaker Change: A few quick questions I guess, we'll start with San Jose as far as getting.
Bill Powers: I guess we'll start with San Jose, as far as getting a $2.2 million dividend during the quarter. It still seems as though, as I talked about last time, it still seems to be over $80 million of working capital. Has Hopshield given any indication? what they may be paying out. I would imagine, have you talked about regularly quarterly dividends with them? Or what do you know the status?
Michael: Being at $2 $2 million.
Michael: Dividend during the quarter.
Michael: It still seems as though as I talked about last.
Speaker Change: Tom there still seems to be over $80 million of working capital.
Michael: Have you given any indication on what they may be.
Speaker Change: I would imagine.
Speaker Change: Have you talked about regularly quarterly dividends from with them or what's the status.
Bill Shaver: Sure. I can answer that as well, Bill. No, we're in regular dialogue with Hochschilds. There is a focus to extend mine life at San Jose, so it's going to be a balance between reinvesting in the mine, especially with silver prices above $30 and gold where it is. So for rainy day enclosure, it's going to be a balancing act. And right now, in terms of the Argentine peso, it's very strong right now, so that has a negative impact on reported U.S. dollar cash costs. But we are optimistic. We think the mill expansion to 2,000 tons per day with the installation of the VertiMill has been performing very well.
Speaker Change: Sure I can add to that as well Bill <unk> I know, we're in regular dialogue with hostiles.
Speaker Change: There is.
Speaker Change: Our focus to extend mine life at San Jose, So, it's going to be a balance between reinvesting in the mine, especially with silver prices.
Speaker Change: Above $30 and gold where it is so between.
Speaker Change: Continued exploration returned to shareholders and setting aside some funds for a rainy day and closure is going to be balanced.
Speaker Change: Balancing act and.
Speaker Change: Right now in terms of the Argentine peso.
Speaker Change: Right now very strong right now so that.
Speaker Change: <unk> has a negative impact on reported U S dollar cash cost, but we are optimistic we think the.
Speaker Change: The mine to the mill expansion to 2000 tonnes per day with the installation of the Verde mill that has been performing very well.
Bill Powers: And with that allows us to increase throughput and lower unit costs, which effectively lowers our cutoff rate at the mine. So all those things are important to us, but we do expect to receive further dividends this year at these commodity price levels. Okay, good to hear.
Speaker Change: And with that allows us to.
Speaker Change: Increased throughput and lower unit costs, which.
Speaker Change: Effectively lowers our cutoff grade at the mine. So all those things are important to us.
Speaker Change: But you know we do expect to receive further dividends this year.
Speaker Change: These commodity price levels.
Speaker Change: Okay. Good to hear I guess, one of the things I saw on your <unk>.
Bill Shaver: I guess one of the things I saw on your updated information sheet regarding the Fox complex is that it looks like there's about $71 million dollars. Bend for development this year. I was wondering, you know, how far along, I guess, percentage-wise are you complete with before you begin production? And is there any production expected to come from stock this year? Or, you know, I'm or what could be the status of that?
Speaker Change: <unk>.
Speaker Change: Information sheet regarding the Fox complex is that it looks like there's about $71 million of spend for development. This year I was wondering.
Speaker Change: How far along in August percentage Wise are you complete with it before you begin production.
Speaker Change: Is there any production expected to come from stock this year or.
Speaker Change: Or what.
Speaker Change: The status of that.
Bill Shaver: Yeah, Bill, I'm Bill Shaver here. I'll answer that for you. Yeah, we anticipate that we will have the first production from the underground portion of the stock mine in the last quarter of this year. The permit that we got a few days ago allows us to start the drilling and blasting of the ramp. And, you know, we now have, obviously, the final design of that ramp, and we anticipate that we will have the ramp down sometime late in the third quarter or early in the fourth quarter. And at the same time, we have the shaft now dewatered down below the 400 level, and we're in the midst now of doing the surveying, making sure that all the headings are safe and properly bolted and so on to the standard that's required today.
Speaker Change: Yes Moshe.
Speaker Change: Shafer here I'll answer that for you.
Speaker Change: We anticipate that we will have.
Speaker Change: The first production.
Speaker Change: From the underground portion of the stock bind in the last quarter of this year.
Speaker Change: The permit that we got.
Speaker Change: Got a few days ago.
Speaker Change: It allows us to start the drilling and blasting of the ramp.
Speaker Change: We now have obviously the final design of that ramp and we anticipate.
Speaker Change: Uh huh.
Speaker Change: We'll have the ramp.
Speaker Change: And some time Oh wait.
Speaker Change: In the third quarter or early in the fourth quarter.
Speaker Change: And at the same time, we have the shelf now dewatered down below the 400 level.
Speaker Change: And we're in the midst now of.
Speaker Change: Doing the surveying.
Speaker Change: And ensure that all the headings are safe.
Speaker Change: Properly bolted and so on to to the standard that's required today.
Bill Shaver: And the plan is to do some exploration-type work, sampling and so on, underground in the old workings, because we that mine was shut down when the gold price was relatively low. And, you know, we're confident that there's some, you know, a certain amount of ore down there that we can extract fairly quickly. So as soon as we get the ramp broken through so that we can load trucks from the underground, you know, that'll allow us to go ahead with that work. And, you know, then... As we go into next year, you know, we'll ramp stock up to its full production capability.
Speaker Change: The plan is to do some exploration type or sampling and so on underground and the old workings, because we know that mine was shut down when the gold price was relatively low.
Speaker Change: We're confident that there is some.
Speaker Change: Certain of ore down there that we can extract fairly quickly so.
Speaker Change: As soon as we get the ramp broken through so that we can load trucks from the underground.
Speaker Change: That will allow us to go ahead with that work and then.
Speaker Change: As we go into next year.
Speaker Change: Ramp stocks.
Speaker Change: Stock up to its full production capability.
Bill Powers: Okay, that was good to hear.
Speaker Change: Oh, okay.
Speaker Change: Good to hear I guess, one last question regarding grey Fox.
Bill Powers: I guess one last question regarding Gray Fox. You guys have done a lot of drilling, seems to be going well. I guess what is the time frame and what might you envision the cost to put the Gibson ramp back into production?
Speaker Change: Yes, it's been a lot of drilling seems to be going well I guess, what is the timeframe and what might you envision the cost to clear the Gibson ramp back into production.
Bill Shaver: So that's a very good question. So we're just in the midst of starting a study on, on that, you know, what the capital costs are going to be, what the operating costs are going to be, and what the exact strategy is for number one, getting the permit in as timely a manner as possible. And then, you know, number two, what's that going to look like in terms of a mine plan and capital? And I guess the opening of the mine, the Gray Fox mine, I mean, right now we're studying which is the best access method.
Speaker Change: So that's a very good question. So we're.
Speaker Change: Just in the midst of.
Speaker Change: Starting.
Speaker Change: Ah study.
Speaker Change: Oh, you know what the capital costs are going to be what the operating costs are going to be and what the exact strategy is for number one.
Speaker Change: Getting the permit in as timely a manner as possible.
Speaker Change: And then.
Speaker Change: Number two what's that going to look like in terms of a mine plan on capital.
Speaker Change: And I guess.
Speaker Change: The opening of.
Speaker Change: The mine.
Speaker Change: Grey Fox mine.
Speaker Change: I mean were right now were.
Speaker Change: Studying which is the best best.
Speaker Change: Access method should we be talking about an underground operation or should we be talking about a small open pit.
Bill Shaver: Should we be talking about an underground operation or should we be talking about a small open pit? And both of those options are viable. So now it's a question of deciding which one is the best. You know, the cheapest and the fastest. So the, the, uh, The plan initially for, you know, for that part of the property, Gray Fox and the associated other ore bodies around there would be to bring that ore back to the stock mill. And, you know, it's relatively high grade. And therefore, we would establish some cash flow. And then the next step would be, you know, what is the long term potential of Gray Fox, which, you know, we see as pretty robust.
Speaker Change: And both of those options are viable. So now it's a question of deciding which one is.
Speaker Change: The cheapest in our fasteners.
Speaker Change: So the.
Speaker Change: Uh huh.
Speaker Change: The plan initially for.
Speaker Change: For that part of the property grey Fox and the associated or the other.
Speaker Change: Ore bodies around there would be to bring that.
Speaker Change: Or back to the stock mill.
Speaker Change: It's relatively high grade and therefore, we would establish some cash flow and then the next step would be what is the long term potential.
Speaker Change: Grey Fox, which we.
Speaker Change: We see.
Speaker Change: For the robust.
Bill Shaver: So then we would want to increase the tonnage through a process plant that would be significantly larger than the stock mill. So, you know, that's another part of this study that we're working on. And, you know, I guess I see a mine that's running at three to 5000 tons a day. And, you know, then we need a tailings facility and so on and, and, you know, I guess the major thing we have to think about in terms of the, you know, the The ultimate time frame for putting that together is how long is the permitting going to take?
Speaker Change: So then we would want to increase the tonnage through.
Speaker Change: A process plant that would be significantly larger than <unk>.
Speaker Change: So in the stock mill so.
Speaker Change: That's another part of this study that we're working on and I guess I see.
Speaker Change: Our mind, that's running a three to 5000 tonnes a day.
Speaker Change: And then we need a tailings facility and so on.
Speaker Change: And I guess the major thing we have to think about in terms of the.
Speaker Change: The.
The ultimate time.
Speaker Change: Time frame for putting that together is how long is the permitting going to date.
Bill Shaver: So that's something that we're actively working on. And, you know, as we've all heard from our governments at both federal and provincial levels, that they're going to speed up the permitting process. At the present time, based on historical timeframes, that would take about three years. We're hoping that that might get down to. You know, 18 months to two years would be, I think, an optimistic view of that. And, you know, that's kind of what we're hoping for.
Speaker Change: And so that's something that we're actively working on.
Speaker Change: As we've all heard well.
Speaker Change: Well from our government, both federal and provincial levels that theyre going to speed up.
Speaker Change: Permitting process.
Speaker Change: The present time based on historical.
Speaker Change: Timeframes that would take about three years, we're hoping that that might get down to.
Speaker Change: 18 months to two years would be I think.
Speaker Change: Domestic view of that.
Speaker Change: That's kind of what we're hoping for.
Bill Shaver: Okay, no, that's very helpful. And so basically, the timeframe of getting it would depend on a mine, I'm guessing it would require a fair bit of work since it has not been, I'm guessing hasn't been active for quite some time. Well, that area, in fact, has a ramp there, an exploration ramp that was driven many years ago. You know, to tell you the truth, I don't know exactly when it was, but it's approximately 10 years ago. And so there, you know, there's a significant amount of development to bringing a new mine into operation there. The positive thing about that area is the depth of the overburden is insignificant.
Speaker Change: Okay, No that's very helpful and so basically the timeframe of getting it would depend on our mind I'm I'm guessing.
Speaker Change: It would require a fair bit of work since it has not been.
Speaker Change: Im guessing hasnt been active for quite some time.
Speaker Change: While that area in fact has a ramp there in exploration ramp was driven many years ago to tell you that I don't know exactly when it was but its approximately 10 years ago.
Speaker Change: And so there.
Speaker Change: There's a significant amount of development to bringing a new mine into operation there.
Speaker Change: Positive.
Speaker Change: Just thinking about that area is the depth of the overburden is insignificant.
Bill Shaver: We have ore right at surface, you know, that we understand, you know, that we could be mining, like within months of getting a permit. So I think there's lots of really good things about the ore body that's out at Gray Fox. And the drilling that we're doing right now continues to expand the resources that we have there. And we've just spent a couple of days up there reviewing the drilling and the exploration program. And we're very, very positive about what's going to happen up there based on our success up to now.
Speaker Change: We have ore right at surface.
Speaker Change: We understand that we could be mining like within.
Speaker Change: Months of getting a permit.
Speaker Change: So so I think theres lots of really good.
Speaker Change: Good things about the ore body, that's out of grey Fox and the drilling that we're doing right now.
Speaker Change: <unk> continues to expand.
Speaker Change: The resources that we have there.
Speaker Change: We've just spent a couple of days up they're reviewing.
Speaker Change: <unk>.
Speaker Change: Drilling in the exploration program in a very very positive about what's going to happen up there.
Speaker Change: Based on our success up to now.
Bill Powers: Okay, that's great.
Speaker Change: Okay. That's great. Thank you so much for all your time today.
Bill Powers: Thank you so much for all your time today.
Bill Powers: Thank you, Bill.
Speaker Change: You bet.
Operator: And as a final reminder, if you would like to ask a question, press star 1 on your telephone keypad. We'll pause for just a moment.
Speaker Change: And as a final reminder, if you'd like to ask a question press star one on your telephone keypad, well pause for just a moment.
Speaker Change: Okay.
Rob McEwen: While we're pausing, operator, one thing I'd like to bring up that I didn't mention in my introductory comments. was Something that's going to happen to our financials, our income statement is going to look better. Once the feasibility study for Los Azules has been published, which will be this summer, It's going to improve because we won't be needing to include the expenses of McEwen, Copper and Los Azules. Income Statement any longer once the feasibility is published. That expense will be capitalized under accounting standards, and so it will improve our bottom line, and over a period of the last few years, I think Jeff is going to tell us how much we've had to incorporate in our income statement.
Speaker Change: While we are pausing operator, one thing I would like to bring up that I didn't mention in my introductory comment.
Speaker Change: Whereas.
Speaker Change: Yes.
Speaker Change: Something thats going to happen to our financials, our income statements going to look better.
Speaker Change: The feasibility study for losses.
Speaker Change: It's been published which will be this summer.
Speaker Change: It's going to improve because we won't be needing to.
Speaker Change: They include the expenses of Mcewen copper and losses Lewis.
Speaker Change: In our income statement any longer one.
Speaker Change: <unk> ability as published.
Speaker Change: Sure.
Speaker Change: That expense will be capitalized under accounting standards.
Speaker Change: And so it.
Speaker Change: We will improve our bottom line and over.
Speaker Change: For the period in the last few years.
Speaker Change: I think Jeff is going to tell us how much we had to incorporate in our income statement.
Jeff Chan: or. The Expenses of Losses of Ascent, but that will be removed. which I think is a good thing. We've invested heavily to increase the value of Las Azulas, and we've paid the price of showing a negative bottom line for quite a while as a result of those investments.
Speaker Change: Or.
Speaker Change: The expenses of losses and that that will be removed.
Which I think is a good thing.
Speaker Change: We've invested heavily to increase the value of losses or less and we've paid the price that are showing.
Speaker Change: A negative bottom line for quite a while and as a result of those investments.
Speaker Change: Okay, Yeah. So.
Jeff Chan: Yeah, so just to just to expand on what Rob just mentioned, at the end of the first quarter, we reported negative $6.3 million in net income, and capitalizing the expenditures of McEwen Copper would have resulted in a positive net income of $2.3 million, rather than a negative.
Rob McEwen: Just to expand on what Rob just mentioned.
Rob McEwen: At the end of the first quarter, we reported negative $6 3 million in net income and capitalizing the expenditures of Mcewen copper would have resulted in a positive net income of $2 $3 million.
Rob McEwen: Rather than a negative if we take a look at the last few years of expenditures since 2021.
Jeff Chan: If we take a look at the last few years of expenditures, since 2021, we've spent over $250 million in McEwen Copper that we could have capitalized onto our books should we have hit feasibility four years Thank you, Jeff. And there are no...
Rob McEwen: Spent over $250 million in Mcewen copper that we could have capitalized onto our books should we have hit feasibility four years ago.
Jay: Thank you Jay.
Rob McEwen: And there are no.
Operator: My apologies, there are no questions at this time.
Speaker Change: My apologies there are no questions at this time I will now turn the call back over to you Rob Mcewen for some final closing remarks.
Rob McEwen: I will now turn the call back over to you, Rob McEwen, for some final closing remarks. Thank you, Operator. When I look at it, It's been an interesting year so far. I think it's going to get more exciting. From an operational standpoint, we're still not quite there in terms of where we want to be. With respect to performance. But that's on the right track to be repaired. As I said, From a financial standpoint, we've improved our liquidity. We have the money to advance the project at FOX, and that's going to have a big impact on our future, although a couple of years away, but that's moving ahead.
Rob McEwen: Thank you operator.
Rob McEwen: <unk>.
Rob McEwen: When I look at it.
Rob McEwen: It's been an interesting year, so far I think it's going to get more exciting.
Rob McEwen: From an operational standpoint, we're still not quite there in terms of where we want to be.
Rob McEwen: With respect to performance.
Rob McEwen: But that's on the right track to be repaired.
Rob McEwen: As I said.
Rob McEwen: From a financial standpoint, we have improved our liquidity.
Rob McEwen: We have the money to advance the project at Fox and Thats going to have a big impact on your future, although a couple of years away.
Rob McEwen: That's moving ahead exploration is delivering encouraging results and so there'll be active news coming out on exploration each quarter.
Rob McEwen: Exploration is delivering encouraging results, and so there will be active news coming out on exploration each quarter. And I believe the price of gold is going higher. So for a company like such as ourselves, higher gold is a good price for us. Thank you.
Rob McEwen: And I believe my skills going higher so.
Rob McEwen: For a company.
Rob McEwen: Such as ourselves iron ore is a good price for us.
Rob McEwen: Thank you.
Operator: And this concludes today's call. You may now disconnect.
Speaker Change: And this concludes today's call you may now disconnect.
Speaker Change: [music].
Speaker Change: Mhm.
Speaker Change: [music].