McEwen Inc. (MUX) as of March 31, 2026 shows a consolidated balance sheet with total assets of $972.6M against total liabilities of $320.6M, yielding reported book equity of $652.0M. Under a liquidation lens, recovery to equity is substantially impaired. The company carries a cumulative accumulated deficit of $1.24B, and the MFFAIS liquidation estimates confirm negative recovery across all three measures (CLV -$163.5M, LLV -$159.6M, OLV -$128.3M). The primary asset-side drag is the equity method investment portfolio ($450.0M XBRL-tagged), composed of a 46.3% stake in McEwen Copper Inc. (Los Azules copper project, pre-production) and a 49% stake in MSC (San Jose mine, Argentina). Both are carried at equity method values that would attract zero recovery under a strict intangible/going-concern haircut framework, as neither represents a directly realizable liquid asset in liquidation. PP&E embedded in mining assets at Gold Bar and Fox Complex would attract 50-70% haircuts; the significant non-current inventory ($24.1M, leach pad material at Gold Bar) would recover at 60% or less, and in-process inventories carry additional uncertainty. On the liability side: $126.4M long-term debt (comprising $110M 5.25% Convertible Notes due 2030 and a $20M term loan, with $3.0M current), $45.9M asset retirement obligations ($7.3M current, $38.6M non-current) at face, $31.2M contingent consideration liability (current, related to the Canadian Gold Corp. acquisition completed January 2026), and $47.7M accounts payable and accrued liabilities stand at full face value. The $31.2M contingent consideration is a new liability not present in the prior 10-K and materially worsens the current liability stack. The MSC equity investment generated $8.8M in dividends in Q1/26 and MSC working capital improved to $233.3M (100% basis), but these are minority-interest cash flows not directly accessible in a MUX liquidation scenario. The Stock project development ($9.9M invested in Q1/26) and El Gallo HLM ($25M remaining capex estimated) represent committed capital outflows that do not extinguish on wind-up. Filing discusses the McEwen Copper loan facility ($240M capacity, ~$28.5M drawn as of 10-K date) and surety bonds of $49.4M for reclamation in narrative but these are disclosed in notes/MD&A and only partially captured in XBRL tags. The recovery posture is deeply negative driven by: non-recoverable equity method assets, face-value debt and ARO obligations, a new contingent consideration liability, and significant development-stage capital commitments.
▼ Community Notes