McEwen (MUX) risk factors, FY2024 10-K

Risks Relating to Our Financial Condition, Results of Operation and Cash Flows

1. 01Our results of operations, cash flows and the value of our properties are highly dependent on the market prices of gold, silver, and copper and these prices can be volatile
2. 02We have incurred substantial losses in prior years and may not be consistently profitable in future years
3. 03Our indebtedness adversely affects our cash flow and may adversely affect our ability to operate our business
4. 04Our outstanding convertible debt may impact the trading price of our common stock
5. 05Any failure to meet our debt obligations could harm our business and financial condition and may require us to sell assets or take other steps to satisfy the debt
6. 06Restrictive debt covenants could limit our growth and our ability to finance our operations, fund our capital needs, respond to changing conditions, and engage in other business activities that may be in our best interests
7. 07Increased operating and capital costs could adversely affect our results of operations
8. 08If we do not hedge our exposure to reductions in gold and silver prices, we may be subject to significant reductions in price
9. 09Estimates relating to new development projects and mine plans of existing operations are uncertain and we may incur higher costs and lower economic returns than estimated
10. 10We are subject to foreign currency risks which may increase our costs and affect our results of operation
11. 11Our continuing reclamation obligations at Tonkin, Gold Bar, Fox Complex, El Gallo, and other properties could require significant additional expenditure
12. 12There is no guarantee that we will declare distributions to shareholders

Risks Relating to Our Operations as a Mining Company

1. 13Our estimates of proven and probable mineral reserves and resources are based on interpretation and assumptions and, under actual conditions, may yield less mineral production than is currently estimated or may result in additional impairment charges to our operations
2. 14We may be unable to replace gold and silver reserves as they become depleted
3. 15Our acquisitions may not achieve their intended results
4. 16Even if McEwen Copper Inc. is successful in achieving one or more of its strategic initiatives at the Los Azules project, its development presents challenges that may negatively affect, if not completely negate, the feasibility for development of the property
5. 17We may acquire additional exploration-stage properties on which reserves may never be discovered
6. 18The nature of mineral exploration and production activities involves a high degree of risk and the possibility of uninsured losses that could adversely and materially affect our operations
7. 19Our operations are subject to permitting requirements which could require us to delay, suspend or terminate our operations on our mining properties
8. 20Tariffs and the imposition of other restrictions on trade could adversely affect the Company
9. 21Our operations in Argentina and Mexico are subject to political and social risks
10. 2225% to 35%. Starting in January 2022, these brackets will be annually adjusted to account for inflation, as per the consumer price index published by relevant governmental agency
11. 23Our operations and properties in Canada expose us to additional political risks
12. 24Our operations face substantial regulation of health and safety
13. 25Reform of the General Mining Law in the United States could adversely affect our results of operations
14. 26Title to mineral properties can be uncertain, and we may be at risk of loss of ownership of one or more of our properties
15. 27We cannot ensure that we will have an adequate supply of water to complete desired exploration or development of our mining properties
16. 28Our ongoing operations and past mining activities are subject to environmental risks, which could expose us to significant liability and delay, suspension or termination of our operations
17. 29Our industry is highly competitive, attractive mineral lands are scarce, and we may not be able to obtain quality properties
18. 30We rely on contractors to conduct a significant portion of our operations and construction projects
19. 31If our employees or contractors engage in a strike, work stoppage or other slowdown, we could experience business disruptions and/or increased costs
20. 32Our business is sensitive to nature and climate conditions
21. 33Mining companies are increasingly required to consider and provide benefits to the communities and countries in which they operate in order to maintain operations

Risks Relating to Our Common Stock

1. 34A small number of existing shareholders own a significant portion of McEwen Mining common stock, which could limit your ability to influence the outcome of any shareholder vote
2. 35Our stock price may be volatile, and as a result you could lose all or part of your investment
3. 36Failure of the Company to maintain compliance with the NYSE or TSX listing requirements could result in delisting of its common stock, which in turn could adversely affect its future financial condition and the market for its common stock
4. 37Failure of the Company to maintain proper and effective internal controls could impair our ability to produce accurate financial statements on a timely basis, which could adversely affect the market price of our common stock

General Risks

1. 38We do not insure against all risks to which we may be subject in our operations
2. 39Our business is subject to the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits and reputational harm
3. 40We may not be able to operate successfully if we are unable to recruit, hire, retain and develop key personnel and a qualified and diverse workforce. In addition, we are dependent upon our employees being able to perform their jobs in a safe and respectful work environment
4. 41We conduct operations in several foreign countries and are exposed to legal, political and social risks associated with those operations
5. 42Our business could be negatively impacted by security threats, including cybersecurity threats, and other disruptions
6. 43Environmental, social and governance matters may impact our business and reputation
7. 44Several of our directors and officers are residents outside of the United States, and it may be difficult for shareholders to enforce within the United States any judgments obtained against such directors or officers
8. 45The laws of the State of Colorado, our Articles of Incorporation and agreements with certain officers and directors may protect our directors from certain types of lawsuits
9. 46We may be required to write down certain long-lived assets, due to metal prices, operational challenges, or other factors. Such write- downs may adversely affect the results of our operations and financial condition
10. 47A significant delay or disruption in sales of concentrates or doré as a result of the unexpected disruption in services provided by smelters or refiners or other third parties could have a material adverse effect on our results of operations