How will the new high-grade gold zone affect McEwen Inc.'s near‑term production outlook and revenue guidance?

The discovery of a new high‑grade gold zone at the Windfall Project should translate into a near‑term lift in McEwen’s production profile. The 2025 drill results indicate ore grades well above the company’s current average, meaning less material has to be processed to hit the same ounce output. Assuming the zone is amenable to open‑pit mining, McEwen can accelerate the ramp‑up of the Windfall mine and potentially bring an additional ~10–15 koz of gold online within the next 12‑18 months. Management will likely revise its 2025‑2026 production forecast upward, and, because gold pricing is currently trading near $1,950/oz, the incremental ounces could add roughly $20‑$30 million to revenue before the year‑end, comfortably within the company’s existing cost structure (≈ $950‑$1,100/oz). This “grade‑driven” upside is usually viewed more favorably by investors than pure volume expansions because it improves both cash‑flow and margins.

From a market‑technical standpoint, MUX has been consolidating near its 200‑day moving average after the earlier “Gold Bar Mine” update. The news spike is already pushing the stock above the $6.00 resistance level, and the relative strength index (RSI) is hovering around 55—still room to climb without being overbought. Traders should watch for a guidance revision in the next earnings release (likely Q3 2025); a formal upward beat would likely trigger a breakout toward the $7.50‑$8.00 zone, while a muted comment could keep the price in a tight range. A prudent short‑term strategy is to add to long positions on any pull‑back to the $5.80‑$6.10 support zone, with a stop just below $5.60, and consider a partial profit target around $7.00 if the company confirms the revised production and revenue outlook. Keep an eye on gold price momentum and any financing disclosures, as those remain the primary downside risks.