XML 171 R23.htm IDEA: XBRL DOCUMENT
v3.25.0.1

COMMITMENTS AND CONTINGENCIES | 12 Months Ended
--- | ---
Dec. 31, 2024
COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES | NOTE 17 COMMITMENTS AND CONTINGENCIES ​ The following are minimum commitments of the Company as at December 31, 2024, and related payments due over the following five years: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Payments due by period
​ | ​ | 2025 | ​ | 2026 | ​ | 2027 | ​ | 2028 | ​ | Thereafter | ​ | ​ | Total
Mining and surface rights | ​ | $ | 1,711 | ​ | $ | 1,705 | ​ | $ | 1,669 | ​ | $ | 536 | ​ | $ | 539 | ​ | $ | 6,160
Reclamation costs(1) | ​ | ​ | 4,556 | ​ | ​ | 5,748 | ​ | ​ | 11,342 | ​ | ​ | 9,174 | ​ | ​ | 26,646 | ​ | ​ | 57,466
Lease obligations (Note 10) | ​ | ​ | 973 | ​ | ​ | 781 | ​ | ​ | 307 | ​ | ​ | 275 | ​ | ​ | 183 | ​ | ​ | 2,519
Total | ​ | $ | 7,240 | ​ | $ | 8,234 | ​ | $ | 13,318 | ​ | $ | 9,985 | ​ | $ | 27,368 | ​ | $ | 66,145
​
(1) | Amounts presented represent the undiscounted uninflated future payments.
​ Reclamation Bonds As part of its ongoing business and operations, the Company is required to provide bonding for its environmental reclamation obligations of $34.0 million in Nevada pertaining primarily to the Tonkin and the Gold Bar properties and $10.8 million (C$15.6 million) in Canada with respect to the Fox Complex. In addition, under Canadian regulations, the Company was required to deposit approximately $0.1 million with respect to its Lexam properties in Timmins, which is recorded as non-current restricted cash. The Company has a surety facility in place to cover all its bonding obligations. The terms of the facility carry an average annual financing fee of 2.4% and require a deposit of 7.2%. Surety bonds are available for drawdown by the beneficiary in the event the Company does not perform its reclamation obligations. If the specific reclamation requirements are met, the beneficiary of the surety bonds will release the instrument to the issuing entity. The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise. As at December 31, 2024, the Company recorded $3.8 million in restricted cash as a deposit against the surety facility (December 31, 2023 – $4.5 million). Streaming Agreement As part of the acquisition of the Fox Complex in 2017, the Company assumed a gold purchase agreement (the “streaming contract”) related to production, if any, from certain claims. Under the streaming contract, the Company is obligated to sell 8% of gold production from the Black Fox mine and 6.3% from the adjoining Pike River property to Sandstorm Gold Ltd. at the lesser of market price or $561 per ounce (with inflation adjustments of up to 2% per year) until 2090. During the year ended December 31, 2024, the realized gold price from the streaming agreement was $601 per ounce (December 31, 2023 – $589 per ounce). The Company records revenue on these shipments based on the contract price at the time of delivery to the customer. During the year ended December 31, 2024, the Company recorded revenue of $1.5 million (December 31, 2023 – $2.0 million) related to gold stream sales. Flow-through Eligible Expenses On December 14, 2023, the Company completed a flow-through share issuance for gross proceeds of $16.1 million. The proceeds of this offering will be used for the continued exploration and development of the Company’s properties in the Timmins region of Canada. The Company has fulfilled its remaining CEE and CDE obligations in 2024 (Note 13). On June 14, 2024, the Company completed a flow-through share issuance for gross proceeds of $21.9 million. The proceeds of this offering will be used for the continued exploration and development of the Company’s properties in the Timmins region of Canada. The Company expects to fulfill its CEE and CDE obligations from its latest funding round by the end of 2025. ​ Prepayment Agreement ​ In May 2024, the Company extended the existing precious metals purchase agreement with Auramet. Under this agreement, the Company may sell the gold on a spot basis, on a forward basis and on a supplier advance basis, i.e., the gold is priced and paid for while the gold is:
| (i) | at a mine for a maximum of 15 business days before shipment; or
| (ii) | in transit to a refinery; or
| (iii) | being refined at a refinery.
​ Subsequent to December 31, 2024, the Company extended its precious metals purchase agreement for a one year period. ​ During the year ended December 31, 2024, the Company received net proceeds of $8.4 million from the sales on a supplier advance basis. The Company recorded revenue of $4.9 million related to the gold sales, with the remaining $3.5 million representing 1,335 ounces pledged but not yet delivered to Auramet recorded as a contract liability on the Consolidated Balance Sheets. During the year ended December 31, 2023, the Company received net proceeds of $127.0 million from the sales on a supplier advance basis. The Company recorded revenue of $132.7 million related to the gold sales, with no amounts outstanding under this facility as at December 31, 2023. Other Potential Contingencies The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. The Company and its predecessors have transferred their interest in several mining properties to third parties throughout its history, and has also purchased several interests in mining properties from other third parties. The Company could remain potentially liable for environmental enforcement actions related to its current or prior ownership of such properties. However, the Company has no reasonable belief that any violation of relevant environmental laws or regulations has occurred regarding these transferred properties.

X
- Definition Represents information on rental expense, commitments and contingencies. + References No definition available. + Details
Name: | mux_RentalExpensesCommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | mux_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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