The PFS significantly de-risks Grey Fox and extends mine life, but production ramp-up is back-loaded (2029+) with permitting and construction milestones over the next 12-18 months. Monitor permitting progress, gold price trajectory (current ~$4,000/oz supports economics), and the company's ability to self-fund CAPEX without dilution. The 2026 exploration spend of $5M with five drills running could further expand resources and improve economics.
Price Chart
Executive Summary
McEwen Inc. released a Pre-Feasibility Study for its 100%-owned Grey Fox gold project, projecting a 15-year mine life and average annual production of ~87,000 ounces from 2028-2041. The PFS shows robust economics with a post-tax NPV(5%) of $282M and IRR of 25% at a $3,000/oz gold base case, and $841M NPV with 55% IRR at $4,500/oz. This is a material de-risking event that extends Fox Complex life and supports the company's 2030 production target of 250,000-300,000 GEOs, though initial CAPEX of $181M and permitting timelines (12-18 months) introduce execution risk.
Key Facts
- Grey Fox PFS extends Fox Complex mine life by 15 years to 2041 with 980,300 oz probable reserves at 3.24 g/t gold
- Post-tax NPV(5%) of $282M and IRR of 24.8% at $3,000/oz gold base case; $841M NPV and 55.1% IRR at $4,500/oz enhanced case
- Initial CAPEX of $181M spread over 2026-2029 ($17M, $60M, $80M, $24M) expected to be funded internally from treasury and operating cash flow
- Fox Complex 2026 production projected at only 16,000-19,000 gold ounces, with Grey Fox commercial production targeted for 2029
- Life-of-mine AISC of $2,212/oz at $3,000/oz gold and $2,421/oz at $4,500/oz gold
- Permitting amendments targeted within 12-18 months; construction target Spring 2027 with underground development starting Q3 2027
Financial Impact
Post-tax NPV(5%) of $282M-$841M depending on gold price scenario; initial CAPEX $181M; LOM EBITDA $902M-$2,130M
Risk Factors
- Permitting delays beyond the 12-18 month target could push back construction and commercial production
- Gold price volatility — economics are highly sensitive to gold price (NPV ranges from $282M at $3,000/oz to $841M at $4,500/oz)
- Execution risk on $181M initial CAPEX and underground development at Grey Fox
- Current Fox Complex production is very low (16,000-19,000 oz in 2026) — cash flow generation may be insufficient to fully self-fund CAPEX without dilution
- Grade and recovery assumptions (87.5% recovery, 3.24 g/t feed grade) may not be achieved in practice
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3307888 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 14d ago | 8-K | $15.60 $15.84 | ▲ +1.54% | ▲ +1.08% | $15.40 (−1.28%) |
Aug 24, 2026 9w ago | Press Release | $21.45 $19.15 | ▼ −10.72% | ▼ −10.18% | $15.40 (−28.21%) |
Aug 5, 2026 11w ago | Press Release | $18.26 $18.58 | ▲ +1.75% | ▲ +0.54% | $15.40 (−15.66%) |
Aug 4, 2026 11w ago | Press Release | $19.71 $19.15 | ▼ −2.84% | ▼ −3.19% | $15.40 (−21.87%) |
Jun 26, 2026 17w ago | Press Release | $17.94 $18.84 | ▲ +5.02% | ▲ +3.63% | $15.40 (−14.16%) |
Jun 8, 2026 20w ago | Press Release | $18.39 $20.10 | ▲ +9.30% | ▲ +7.19% | $15.40 (−16.26%) |
Jun 2, 2026 21w ago | 8-K / DEFA14A | $20.85 $17.29 | ▼ −17.07% | ▼ −13.25% | $15.40 (−26.14%) |
May 22, 2026 22w ago | 8-K | $22.02 $22.31 | ▲ +1.32% | ▲ +0.10% | $15.40 (−30.06%) |
May 14, 2026 23w ago | Press Release | $22.81 $21.14 | ▼ −7.32% | ▼ −8.28% | $15.40 (−32.49%) |
May 8, 2026 24w ago | 8-K | $24.23 $24.85 | ▲ +2.56% | ▲ +1.10% | $15.40 (−36.44%) |
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