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OPERATING SEGMENT REPORTING

12 Months Ended

Dec. 31, 2022

NOTE 3 OPERATING SEGMENT REPORTING

McEwen Mining is a mining and minerals production and exploration company focused on precious and base metals in the United States, Canada, Mexico, and Argentina. The Company’s chief operating decision maker (“CODM”) reviews the operating results, assesses performance and makes decisions about allocation of resources to these segments at the geographic region level or major mine/project where the economic characteristics of the individual mines or projects within a geographic region are not alike. As a result, these operating segments also represent the Company’s reportable segments. The Company’s business activities that are not considered operating segments are included in General and administrative and other and are provided in this note for reconciliation purposes.

The CODM reviews segment income or loss, defined as gold and silver sales less production costs applicable to sales, depreciation and depletion, advanced projects, and exploration costs, for all segments except for the MSC segment which is evaluated based on the attributable equity income or loss pickup. Gold and silver sales and production costs applicable to sales for the reportable segments are reported net of intercompany transactions.

Capital expenditures include costs capitalized in mineral property interests and plant and equipment in the respective periods.

Significant information relating to the Company’s reportable operating segments for the periods presented is summarized in the tables below:

Year ended December 31, 2022

USA

Canada

Mexico

MSC

McEwen Copper

Total

Revenue from gold and silver sales

47,926

60,848

1,643

—

110,417

Production costs applicable to sales

(43,500)

(36,845)

(10,915)

—

(91,260)

Depreciation and depletion

(4,737)

(14,964)

—

(19,701)

Gross profit (loss)

(311)

9,039

(9,272)

—

(544)

Advanced projects

(52)

(1,206)

(4,322)

—

(61,148)

(66,728)

Exploration

(4,828)

(9,443)

(2)

—

(700)

(14,973)

Gain from investment in Minera Santa Cruz S.A.

—

2,776

—

2,776

Segment profit (loss)

(5,191)

(1,610)

(13,596)

2,776

(61,848)

(79,469)

General and administrative and other

(819)

Loss before income and mining taxes

(80,288)

Capital expenditures

5,374

15,317

2,800

—

2,743

26,234


Year ended December 31, 2021	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	79,205	$	50,704	$	6,632	$	—	$	—	$	136,541
Production costs applicable to sales		(73,990)		(32,961)		(12,272)		—		—		(119,223)
Depreciation and depletion		(8,502)		(15,296)		—		—		—		(23,798)
Gross (loss) profit		(3,287)		2,447		(5,640)		—		—		(6,480)

Advanced projects		(440)		(2,635)		(4,345)		—	$	(5,019)		(12,439)
Exploration		(5,875)		(15,017)		(14)		—		(1,698)		(22,604)
Loss from investment in Minera Santa Cruz S.A.		—		—		—		(7,533)		—		(7,533)
Segment loss	$	(9,602)	$	(15,205)	$	(9,999)	$	(7,533)	$	(6,717)	$	(49,056)
General and administrative and other												(15,143)
Loss before income and mining taxes											$	(64,199)

Capital expenditures	$	2,416	$	33,617	$	—	$	—	$	—	$	36,033

0
Year ended December 31, 2020	USA		Canada		Mexico		MSC		McEwen Copper		Total
Revenue from gold and silver sales	$	48,884	$	41,452	$	14,453	$	—	$	—	$	104,789
Production costs applicable to sales		(58,465)		(34,639)		(15,723)		—		—		(108,827)
Depreciation and depletion		(11,785)		(10,883)		(242)		—		—		(22,910)
Gross loss		(21,366)		(4,070)		(1,512)		—		—		(26,948)

Advanced projects		(1,071)		(6,088)		(4,522)		—		—		(11,681)
Exploration		(6,777)		(6,450)		(513)		—		(2,121)		(15,861)
Impairment of mineral property interests and plant and equipment		(83,805)		—		—		—		—		(83,805)
Loss from investment in Minera Santa Cruz S.A.		—		—		—		(1,517)		—		(1,517)
Other operating		(1,390)		(578)		—		—		—		(1,968)
Segment loss	$	(114,409)	$	(17,186)	$	(6,547)	$	(1,517)	$	(2,121)	$	(141,780)
General and administrative and other												(11,935)
Loss before income and mining taxes											$	(153,715)

Capital expenditures	$	4,821	$	9,104	$	—	$	—	$	—	$	13,925

Geographic information

Geographic information includes the following long-lived assets balances and revenues presented for the Company’s operating segments:


	Non-current Assets				Revenue ⁽¹⁾
	Year ended December 31,				Year ended December 31,
	2022		2021		2022		2021		2020
USA	$	70,577	$	37,878	$	47,926	$	79,205	$	48,884
Canada		91,552		93,294		60,848		50,704		41,452
Mexico		29,219		26,561		1,643		6,632		14,453
Argentina ⁽²⁾		255,718		282,583		—		—		—
Total Consolidated ⁽³⁾	$	447,066	$	440,316	$	110,417	$	136,541	$	104,789

(1)	Presented based on the location from which the product originated.

(2)	Includes Investment in MSC of $93.5 million as of December 31, 2022 (December 31, 2021 - $90.9 million).

(3)	Total excludes $0.3 million (December 31, 2021 - $0.4 million) related to the Company’s ROU office lease asset as the business activities related to corporate are not considered to be a part of the operating segments

As gold and silver can be sold through numerous gold and silver market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product. The following is a summary of revenue from gold and silver sales for significant customers for the years ended December 31, 2022, 2021 and 2020:


		Year ended December 31,
		2022		2021		2020
Asahi Refining Inc.	$	57,835	$	134,395	$	66,934
Auramet		50,580		—		—
Bank of Nova Scotia		—		—		33,060
Other		2,002		2,146		4,795
Revenue from gold and silver sales	$	110,417	$	136,541	$	104,789

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 31
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+ Details