EQUITY METHOD INVESTMENTS

3 Months Ended

Mar. 31, 2026

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, Paragon and MSC, the financial statements of Paragon and MSC, which are originally prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, have been adjusted to conform with U.S. GAAP.

A reconciliation of the Company’s equity method investments as at March 31, 2026, and December 31, 2025, is as follows:


		March 31, 2026			December 31, 2025
Investment in McEwen Copper Inc.		$	272,115		$	274,189
Investment in Minera Santa Cruz S.A.			164,650			140,733
Investment in Paragon Advanced Labs Inc.			13,241			13,719
Total equity method investments		$	450,006		$	428,641

Equity method investment in McEwen Copper

A summary of the operating results for McEwen Copper for the three months ended March 31, 2026, and 2025, is as follows:


		Three months ended March 31,
		2026			2025
McEwen Copper (100%)
Advanced projects		$	—		$	(21,271)
Other expenses			(2,900)			(1,097)
Foreign exchange gain (loss)			177			(9)
Interest and other income (expenses) ⁽¹⁾			(1,720)			3,906
Loss before tax		$	(4,443)		$	(18,471)
Current and deferred taxes			—			—
Net loss		$	(4,443)		$	(18,471)

Portion attributable to McEwen Inc.
Net loss		$	(2,057)		$	(8,578)
McEwen Inc.'s portion of interest capitalized			(17)			—
Loss from investment in McEwen Copper		$	(2,074)		$	(8,578)

(1) Interest and other income (expenses) include interest on term debt and finance-related income and expenses.

Changes in the Company’s investment in McEwen Copper for the three months ended March 31, 2026, and for the year ended December 31, 2025, are as follows:


		Three months ended			Year ended
		March 31, 2026			December 31, 2025
Investment, beginning of period		$	274,189		$	298,947
Dilution gain			—			789
Attributable net loss from McEwen Copper			(2,074)			(25,547)
Investment, end of period		$	272,115		$	274,189

A summary of the key assets and liabilities of McEwen Copper as at March 31, 2026, and December 31, 2025, is as follows:


As at		March 31, 2026			December 31, 2025
Current assets		$	24,589		$	7,089
Total assets		$	236,725		$	203,277

Current liabilities		$	(17,667)		$	(11,365)
Total liabilities		$	(67,761)		$	(41,759)

As at March 31, 2026, the Company's investment in McEwen Copper exceeded its proportionate share of the underlying net assets by $199.1 million. This basis difference is attributable to equity method goodwill and not amortized.

Equity method investment in MSC

A summary of the operating results for MSC for the three months ended March 31, 2026, and 2025, is as follows:


		Three months ended March 31,
		2026			2025
Minera Santa Cruz S.A. (100%)
Revenue from gold and silver sales		$	185,813		$	71,903
Production costs applicable to sales			(77,655)			(56,588)
Depreciation and depletion			(7,896)			(10,610)
Gross profit			100,262			4,705
Exploration			(4,341)			(2,300)
Other income ⁽¹⁾			2,600			826
Income before tax		$	98,521		$	3,231
Current and deferred income tax expense			(31,271)			(1,039)
Net income		$	67,250		$	2,192

Portion attributable to McEwen Inc.
Net income		$	32,953		$	1,073
Amortization of fair value increments			(199)			(568)
Income tax recovery (expense)			(2)			5
Income from investment in MSC, net of amortization		$	32,752		$	510

(1) Other income includes foreign exchange gains and losses, accretion of asset retirement obligations, and other finance-related income.

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 three months ended March 31, 2026, and for the year ended December 31, 2025, are as follows:


		Three months ended				Year ended
		March 31, 2026				December 31, 2025
Investment, beginning of period		$	140,733		$	101,854
Attributable net income from MSC			32,953			43,256
Amortization of fair value increments			(199)			(2,160)
Income tax recovery (expense)			(2)			29
Dividend distribution received			(8,835)			(2,246)
Investment, end of period		$	164,650		$	140,733

A summary of the key assets and liabilities of MSC as at March 31, 2026, and December 31, 2025, is as follows:


As at		March 31, 2026			December 31, 2025
Current assets		$	352,418		$	290,704
Total assets		$	435,282		$	372,994

Current liabilities		$	(119,476)		$	(107,930)
Total liabilities		$	(158,855)		$	(145,761)

As at March 31, 2026, the Company’s investment in MSC exceeded its proportionate share of the underlying net assets by $29.2 million. This basis difference is primarily attributable to mineral property interests and amortized on a unit-of-production basis.

Equity method Investment in Paragon

On December 9, 2025, the Company completed the transaction to acquire 27.32% equity interest in Paragon, a provider of advanced analytical services to the mining industry. The transaction involved a share exchange in which the Company acquired a total of 8,742,880 Paragon shares in exchange for 709,992 common shares of the Company. The total fair value of the transaction was $13.7 million, based on the Company's closing share price of $19.35 per share on December 9, 2025.

The Company's investment in Paragon exceeded its proportionate share of the underlying net assets by $12.5 million. This basis difference is attributable to equity-method goodwill and is not amortized.

Subsequent to the acquisition, on December 15, 2025, an existing shareholder exercised 400,000 warrants to acquire an equivalent number of common shares of Paragon. As a result, the Company’s ownership in Paragon decreased from 27.3% to 27.0%. This reduction in ownership is accounted for as a notional disposition of shares, resulting in a $0.2 million dilution loss.

Due to the timing of the availability of financial information, the Company recognizes its share of the earnings of Paragon on a three-month lag basis. The Company monitors the investee for material intervening events and concluded that no material adjustments were necessary for the three months ended March 31, 2026.

A summary of the operating results for Paragon for the period from December 9, 2025, to December 31, 2025, is as follows:


		Period ended
		December 31, 2025
Paragon (100%)
Revenue		$	312
Production costs applicable to sales			(591)
Gross loss			(279)
Operating expense			(749)
Other expense			(231)
Net loss			(1,259)
Change in foreign currency translation adjustments			90
Net comprehensive loss for the year		$	(1,169)

Portion attributable to McEwen Inc.
Net loss		$	(340)
Attributable change in foreign currency translation adjustments			24
Comprehensive loss from investment in Paragon		$	(315)

Changes in the Company’s investment in Paragon for the three months ended March 31, 2026, and December 31, 2025, are as follows:


		Three months ended			Period ended
		March 31, 2026			December 31, 2025
Investment, beginning of period		$	13,719		$	—
Investment in Paragon			—			13,719
Net loss attributable to McEwen Inc.			(340)			—
Dilution loss			(162)			—
Change in foreign currency translation adjustments			24			—
Investment, end of period		$	13,241		$	13,719

A summary of the key assets and liabilities of Paragon as at December 31, 2025, is as follows:


As at		December 31, 2025
Current assets		$	6,328
Total assets		$	35,622

Current liabilities		$	(10,642)
Total liabilities		$	(33,050)