MUX

McEwen's FY2025 print is the cleanest in years: revenue grew 13.2% to $198M, net income flipped to +$34.4M (from -$43.7M in FY2024), and diluted EPS of $0.59 marks a real return to GAAP profitability after a decade of accumulated losses (retained earnings still -$1.28B). Cash ballooned 272% to $51M, driven not by operations but by the February 2025 issuance of $110M of 5.25% Convertible Senior Notes due 2030 (with a capped call lifting the effective conversion price to $17.30) and the extension of the credit agreement maturity to August 2028. That's a balance-sheet reset, not a cash-flow story — operating cash flow actually fell 76.7% to just $6.87M, far below the $27.8M D&A line, and long-term debt more than tripled to $126M. The 28.8x P/E and 5.1x P/S already discount a lot of operational improvement.

The real prize embedded in the stock is McEwen Copper's Los Azules project in San Juan, Argentina, where the October 2025 Feasibility Study supports an open-pit copper-cathode mine producing ~451 million pounds annually, now blessed under Argentina's Large Investment Incentive Regime. Production assets — Gold Bar (Nevada), Fox Complex (Ontario), and the 49%-stake San José mine (Argentina, which just paid its first meaningful dividend since 2021) — are the cash engine funding the copper option. Gross margin of 24.1% and operating margin of just 1.3% show the gold business is still marginal at the operating line; the net-income beat leans heavily on below-the-line items rather than mine-level operating leverage.