XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

EQUITY METHOD INVESTMENTS | 6 Months Ended
--- | ---
Jun. 30, 2024
EQUITY METHOD INVESTMENTS |
EQUITY METHOD INVESTMENTS | NOTE 9 EQUITY METHOD INVESTMENTS The Company accounts for investments over which it exerts significant influence but does not control through majority ownership using the equity method of accounting. In applying the equity method of accounting to the Company’s investments in McEwen Copper and MSC, MSC’s financial statements, which are originally prepared by MSC in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, have been adjusted to conform with US GAAP. Equity method investment in McEwen Copper A summary of the operating results for McEwen Copper for the three and six months ended June 30, 2024, is as follows: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended | ​ | ​ | Six months ended
​ | ​ | June 30, 2024 | ​ | ​ | June 30, 2024
McEwen Copper (100%) | ​ | ​ | ​ | ​ | ​
Advanced projects | $ | (37,547) | ​ | $ | (85,730)
Other expenses | ​ | (1,835) | ​ | ​ | (3,851)
Foreign exchange income (loss) | ​ | 310 | ​ | ​ | (3,682)
Interest and other income(1) | ​ | 3,841 | ​ | ​ | 20,295
Loss before tax | $ | (35,231) | ​ | $ | (72,968)
Current and deferred taxes | ​ | — | ​ | ​ | —
Net loss | $ | (35,231) | ​ | $ | (72,968)
​ | ​ | ​ | ​ | ​ | ​
Portion attributable to McEwen Mining (47.7%) | ​ | ​ | ​ | ​ | ​
Net loss on investment in McEwen Copper | $ | (16,816) | ​ | $ | (34,828)
​ (1) Interest and other income include gains on marketable securities and other finance-related income. ​ Changes in the Company’s investment in McEwen Copper for the six months ended June 30, 2024, and for the year ended December 31, 2023, are as follows: ​
​ | ​ | ​ | ​ | ​ | ​
​ | Six months ended | ​ | Year ended
​ | June 30, 2024 | ​ | December 31, 2023
Investment, beginning of period | $ | 326,147 | ​ | $ | —
Deconsolidation of McEwen Copper | ​ | — | ​ | ​ | 383,968
Attributable net loss from McEwen Copper | ​ | (34,828) | ​ | ​ | (57,821)
Investment, end of period | $ | 291,319 | ​ | $ | 326,147
​ A summary of the key assets and liabilities of McEwen Copper as at June 30, 2024, before and after adjustments for fair value increments arising from the purchase price allocation, is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Balance excluding | ​ | ​ | ​ | ​ | Balance including
As at June 30, 2024 | ​ | fair value increments | ​ | Adjustments | ​ | fair value increments
Current assets | ​ | $ | 20,423 | ​ | $ | — | ​ | $ | 20,423
Total assets | ​ | $ | 203,671 | ​ | $ | 262,494 | ​ | $ | 466,165
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current liabilities | ​ | $ | (21,938) | ​ | $ | — | ​ | $ | (21,938)
Total liabilities | ​ | $ | (22,188) | ​ | $ | — | ​ | $ | (22,188)
​ Equity method investment in MSC A summary of the operating results for MSC for the three and six months ended June 30, 2024, and 2023 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended June 30, | ​ | Six months ended June 30,
​ |  | 2024 | ​ | 2023 | ​ | 2024 | ​ | 2023
Minera Santa Cruz S.A. (100%) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revenue from gold and silver sales | ​ | $ | 74,348 | ​ | $ | 67,712 | ​ | $ | 140,274 | ​ | $ | 113,452
Production costs applicable to sales | ​ | ​ | (48,220) | ​ | ​ | (46,931) | ​ | ​ | (96,105) | ​ | ​ | (88,055)
Depreciation and depletion | ​ | ​ | (14,723) | ​ | ​ | (14,363) | ​ | ​ | (23,649) | ​ | ​ | (22,593)
Gross profit | ​ | ​ | 11,405 | ​ | ​ | 6,418 | ​ | ​ | 20,520 | ​ | ​ | 2,804
Exploration | ​ | ​ | (3,018) | ​ | ​ | (2,846) | ​ | ​ | (5,122) | ​ | ​ | (4,798)
Other expense(1) | ​ | ​ | (2,451) | ​ | ​ | (7,911) | ​ | ​ | (950) | ​ | ​ | (11,145)
Income (loss) before tax | ​ | $ | 5,936 | ​ | $ | (4,339) | ​ | $ | 14,448 | ​ | $ | (13,139)
Current and deferred tax recovery (expense) | ​ | ​ | 4,514 | ​ | ​ | 4,828 | ​ | ​ | (333) | ​ | ​ | 8,143
Net income (loss) | ​ | $ | 10,450 | ​ | $ | 489 | ​ | $ | 14,115 | ​ | $ | (4,996)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Portion attributable to McEwen Mining Inc. (49%) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (loss) | ​ | $ | 5,120 | ​ | $ | 239 | ​ | $ | 6,918 | ​ | $ | (2,448)
Amortization of fair value increments | ​ |  | (667) | ​ |  | (1,269) | ​ |  | (1,377) | ​ |  | (2,153)
Income tax recovery | ​ | ​ | 248 | ​ | ​ | 116 | ​ | ​ | 438 | ​ | ​ | 226
Income (loss) from investment in MSC, net of amortization | ​ | $ | 4,701 | ​ | $ | (914) | ​ | $ | 5,979 | ​ | $ | (4,375)
​ (1) Other expenses include foreign exchange gains and losses, accretion of asset retirement obligations and other finance-related expenses. ​ The income or loss from the investment in MSC attributable to the Company includes amortization of the fair value increments arising from the initial purchase price allocation and related income tax recovery. The income tax recovery reflects the impact of the devaluation of the Argentine peso against the U.S. dollar on the peso-denominated deferred tax liability recognized at the time of acquisition, as well as income tax rate changes over the periods. ​ Changes in the Company’s investment in MSC for the six months ended June 30, 2024, and for the year ended December 31, 2023, are as follows: ​
​ | ​ | ​ | ​ | ​ | ​
​ | Six months ended | ​ | Year ended
​ | June 30, 2024 |  | December 31, 2023
Investment, beginning of period | $ | 93,218 | ​ | $ | 93,451
Attributable net income from MSC | ​ | 6,918 | ​ | ​ | 4,157
Amortization of fair value increments |  | (1,377) | ​ |  | (4,612)
Income tax recovery | ​ | 438 | ​ | ​ | 517
Dividend distribution received |  | (383) | ​ |  | (295)
Investment, end of period | $ | 98,814 | ​ | $ | 93,218
​ A summary of the key assets and liabilities of MSC as at June 30, 2024 before and after adjustments for fair value increments arising from the purchase price allocation, are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Balance excluding | ​ | ​ | ​ | Balance including
As at June 30, 2024 | ​ | fair value increments | ​ | Adjustments | ​ | fair value increments
Current assets | ​ | $ | 117,716 | ​ | $ | 1,005 | ​ | $ | 118,721
Total assets | ​ | $ | 210,900 | ​ | $ | 68,970 | ​ | $ | 279,870
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current liabilities | ​ | $ | (42,792) | ​ | $ | — | ​ | $ | (42,792)
Total liabilities | ​ | $ | (78,945) | ​ | $ | 654 | ​ | $ | (78,291)
​

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration