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INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE (Tables)

6 Months Ended

Jun. 30, 2021

INVESTMENT IN MINERA SANTA CRUZ S.A. ("MSC") - SAN JOSE MINE

Summary of MSC's financial information from operations


		Three months ended June 30,						Six months ended June 30,
		2021			2020			2021			2020
Minera Santa Cruz S.A. (100%)
Revenue from gold and silver sales		$	70,396		$	47,081		$	123,699		$	84,471
Production costs applicable to sales			(40,888)			(30,402)			(77,256)			(58,718)
Depreciation and depletion			(9,779)			(7,650)			(16,732)			(14,977)
Gross profit			19,729			9,029			29,711			10,776
Exploration			(2,941)			(2,175)			(5,177)			(5,041)
Other expenses⁽¹⁾			(14,684)			(8,925)			(20,220)			(11,142)
Net income (loss) before tax		$	2,104		$	(2,071)		$	4,314		$	(5,407)
Current and deferred tax expense			(1,937)			1,884			(3,566)			1,933
Net income (loss)		$	167		$	(187)		$	748		$	(3,474)

Portion attributable to McEwen Mining Inc. (49%)
Net income (loss)		$	81		$	(92)		$	366		$	(1,703)
Amortization of fair value increments			(2,019)			(1,251)			(3,090)			(2,636)
Income tax recovery			85			298			297			618
Loss from investment in MSC, net of amortization		$	(1,853)		$	(1,045)		$	(2,427)		$	(3,721)

(1) Other expenses include foreign exchange, accretion of asset retirement obligations, other finance related expenses, and COVID-19 related expenses of $4.4 million and $11.9 million for the three and six months ended June 30, 2021.

Schedule of change in the entity's investment in MSC


	June 30, 2021			December 31, 2020
Investment in MSC, beginning of period	$	108,326		$	110,183
Attributable net income from MSC		366			2,745
Amortization of fair value increments		(3,090)			(5,390)
Income tax recovery		297			1,128
Dividend distribution received		(7,561)			(340)
Investment in MSC, end of period	$	98,338		$	108,326

Summary of key assets and liabilities, before and after adjustments to fair value


As at June 30, 2021		Balance excluding FV increments			Adjustments			Balance including FV increments
Current assets		$	84,938		$	437		$	85,375
Total assets		$	177,194		$	101,013		$	278,207

Current liabilities		$	(44,327)		$	—		$	(44,327)
Total liabilities		$	(74,196)		$	(3,331)		$	(77,527)