McEwen Inc.
A 23 % resource lift that shouts “growth” while the market remains unconvinced
McEwen Inc. (NYSE/TSX: MUX) just announced a 23 % increase in its Year‑End 2025 Mineral Resource Estimate for the Grey Fox Project, a core component of the Fox Complex in Timmins, Ontario. The updated figures now read 1.9 million indicated gold ounces and 436,000 inferred gold ounces—a jump that is not just a headline, but a strategic lever for the company’s future cash flow and capital structure.
Why does a 23 % lift matter when the market price sits at CAD 32.88, a far cry from the 52‑week high of CAD 34.92? Because McEwen is positioning itself for a prefeasibility study in Q2 2026, a step that can unlock a new generation of capital projects and potentially justify a price premium that current investors have yet to recognize.
The resource story in detail
| Metric | Value | Implication |
|---|---|---|
| Indicated gold ounces | 1.9 million | Directly correlates with proven revenue streams; higher indicated resources reduce investment risk. |
| Inferred gold ounces | 436,000 | Expands the project’s potential; a solid foundation for future expansion. |
| Projected gold price | US$3,000/oz | Anchors the valuation; any upward movement in gold prices magnifies McEwen’s upside. |
| Upcoming prefeasibility | Q2 2026 | A critical milestone that will test the economic viability of mining the new resource. |
| Adjacent Stroud Property | Historical resource | A tangible asset that can be integrated to further swell the resource base. |
McEwen’s stated growth drivers are clear:
- Acquisition of the adjacent Stroud Property – a historical resource that can be seamlessly merged into Grey Fox’s mine plan.
- Post‑cut‑off drill results – additional data that could push the resource past current estimates.
- Optimization of mine and plant design – an engineering refinement that promises higher recovery rates and lower operating costs.
These levers are not hypothetical; they are backed by concrete drilling results and a well‑structured corporate strategy.
Market sentiment vs. fundamentals
McEwen’s market cap of CAD 1.85 billion and a Price‑to‑Earnings ratio of –107.88 paint an uneasy picture. A negative P/E is not a sign of a high‑growth asset; it indicates that earnings are currently negligible or negative. Yet the company’s 52‑week low of CAD 9.13 demonstrates that investors have yet to price in the upside that a 23 % resource expansion brings.
The real question is whether the market will:
- Reward the company for its aggressive resource development and forthcoming prefeasibility, or
- Punish it for the lack of immediate cash flow and the inherent risks of mining development.
If McEwen can deliver on its prefeasibility targets and secure financing on favorable terms, the price will likely climb toward its recent high of CAD 34.92. Until then, the stock remains a speculative play for those willing to gamble on the future rather than the present.
A cautionary note
While the numbers are compelling, the mining sector is notoriously volatile. Drilling results can change, commodity prices can swing, and regulatory environments can shift. McEwen’s current negative P/E is a stark reminder that past performance and future potential are not guaranteed.
In sum: McEwen Inc. has posted a significant resource upgrade, set the stage for a pivotal prefeasibility study, and highlighted clear expansion pathways. Investors must weigh these growth prospects against the backdrop of a low price, negative earnings, and the inherent risks of mineral development. The market’s next move will decide whether McEwen’s bold strategy translates into shareholder value or remains an unfulfilled promise.
