Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Shareholder Meeting (July 2023)
46 slides from Mcewen's shareholder meeting presentation, Jul 3, 2023
Slide 1: MUX Properties: Asset Rich in Prime Real Estate
MUX 3 Mines Fox Complex (100%) Gold Bar (100%) San José (49%) 1 Development Project El Gallo / Fenix (100%) Los Azules Argentina Fox Complex Timmins, Canada (100%) Gold Bar Nevada (100%) El Gallo – Fenix Project Mexico (100%) San José Argentina ( 49 %) Elder Creek Nevada Au + Ag Cu McEwen Copper (52
Slide 2: MUX Annual Meeting Agenda
MUX MUX Annual Meeting Agenda Formal Part of the Meeting Carmen Diges , General Counsel Company Presentation Annual Meeting 2023 Rob McEwen, Chairman & Chief Owner Financials Perry Ing, Chief Financial Officer Operations William Shaver, Chief Operating Officer Exploration Fox Complex Sean Farrell, C
Slide 3: Formal Part of the Meeting
Formal Part of the Meeting NYSE & TSX Carmen Diges General Counsel
Slide 4: Annual Meeting 2023
Annual Meeting 2023 Rob McEwen Chairman & Chief Owner
Slide 5: Cautionary Statement
MUX Cautionary Statement This presentation and the information included herein do not constitute an offer to buy or the solicitation of an offer to subscribe for or to buy any of the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer,
Slide 6: Non-GAAP Measures
MUX NON - GAAP Measures In this presentation, we have provided information prepared or calculated according to U . S . GAAP, as well as provided some non - U . S . GAAP ("non - GAAP") performance measures . Because the non - GAAP performance measures do not have any standardized meaning prescribed b
Slide 7: MUX Properties: Asset Rich in Prime Real Estate
MUX 3 Mines Fox Complex (100%) Gold Bar (100%) San José (49%) 1 Development Project El Gallo / Fenix (100%) Los Azules Argentina Fox Complex Timmins, Canada (100%) Gold Bar Nevada (100%) El Gallo – Fenix Project Mexico (100%) San José Argentina ( 49 %) Elder Creek Nevada Au + Ag Cu McEwen Copper (52
Slide 8: MUX vs Market
MUX -50 0 50 100 150 200 250 9/1/22 12/1/22 3/1/23 6/1/23 MUX vs Market Sept 1, 2022 – June 28, 2023 GDX +27% % MUX +130% GDXJ +21% Gold +12% Copper +9% Source: Bloomberg. As of June 28, 2023 2023 - 06 - 28 Nasdaq +15% Dow +7%
Slide 9: Los Azules Video
MUX Los Azules Video https:// youtu.be /nYjHmHy5 - 4k
Slide 10: Financial Results: Where We Were vs Where We Are
MUX Cash Debt Equity Financings Cash Gross Profit Production Increasing working capital Q2 2022 $44.0 M Q1 2023 $190.8 M Strengthening balance sheet Q2 2022 $15.0 M increase to $65.0 M Q2 2023 $25.0 M decrease to $40.0 M No MUX dilution in 2023 Q2 2022 $15.1 M flow - through + $15.0 M McEwen Copper
Slide 11: 2023 Production & Cost Guidance
MUX 2023 Production & Cost Guidance GEO – gold equivalent ounces. 2023 production guidance – December 21, 2022 press release. Q1 2023 production – May 8, 2023 pres s release. Numbers may not add due to rounding. G old:silver ratios: 84:1 for Q1 2023, 83:1 for Q2 2023. Q2 2023 preliminary production
Slide 12: Operational Improvements Led by Safety
MUX Operational Improvements Led by Safety Operations Bill Shaver Chief Operating Officer Employee safety is key to successful operations and our operations have been safe for more than 18 months although we had an employee sustain a shoulder injury this month in Mexico lifting a bale of hay . He wa
Slide 13: Operational Improvements Continue at Fox Operations
MUX Operational Improvements Continue at Fox Operations Bill Shaver Chief Operating Officer During 2022 and continuing into 2023 , we made considerable improvements at Fox , in our mining operations and in our budgeting and cost processes, which led to better operations . We are now at 1 , 400 tpd v
Slide 14: Operational Improvements Continue at Gold Bar Operations
MUX Operational Improvements Continue at Gold Bar Operations Bill Shaver Chief Operating Officer At Gold Bar we successfully transferred to a new Mining Contractor in Q 4 2022 - early 2023 . Gold Bar produced 26 , 620 oz Au in 2022 and will produce 14 , 600 oz Au in H 1 2023 . We plan to produce app
Slide 15: The Future Operations
MUX The Future Operations Bill Shaver Chief Operating Officer Fox Complex We are planning the Stock Mine , the next after Froome . We will have an updated resource and mine plan for Stock later this year and we are going through processes to start a Ramp access to the Mine in Q 4 2023 . The minerali
Slide 16: Fox Complex – Resource Building & Exploration Success
MUX Fox Complex – Resource Building & Exploration Success Sean Farrell Chief Exploration Geologist Exploration Fox Complex • > 70 M oz Historic Production in the Timmins Camp • > 30 km of Primary & Secondary Structural Controls • 3.3 M oz Historic Production Including 1.0 M oz at Fox East • Gold Res
Slide 17: Stock Exploration & Delineation
MUX Stock Exploration & Delineation • Highly prospective mineralization found near surface and proximal to the proposed ramp system to Stock West. This area could provide key revenue & shorten the payback period during the very early phases of ramp development • Key results highlights (all true widt
Slide 18: Stock Longitudinal – Looking North
MUX Stock Longitudinal – Looking North
Slide 19: Ramp Portal Zone – Right Beside Our Mill & Headframe
MUX Ramp Portal Zone – Right Beside Our Mill & Headframe
Slide 20: Ramp Portal Zone – Abundant Visible Gold
MUX Ramp Portal Zone – Abundant Visible Gold SM22 - 110: 1,031.6 g/t Au / 0.8 m CL SM22 - 116: 53.2 g/t Au / 1.0 m CL
Slide 21: Stock Exploration & Delineation
MUX Stock Exploration & Delineation • Much of the late 2022 - early 2023 drilling campaigns were focused on delineation and infill drilling at Stock West using optimized AI generated targets (from the current block model); data processing of the success rate is ongoing • Drilling in proximity to the
Slide 22: Grey Fox – Over 1,100,000 oz Au Deposit
MUX Grey Fox – Over 1,100,000 oz Au Deposit
Slide 23: Using Innovative Technology – LIBS
MUX Using Innovative Technology – LIBS* • Instrument measures density and hardness, helping to better define milling & recovery methods • Knowing where the Au is and isn't makes for more efficient core logging & drill targeting • Can also aid in identifying Au domain distribution & metallurgical sam
Slide 24: Gold Bar – Priority Targets Near Mine & Brownfields
MUX Gold Bar – Priority Targets Near Mine & Brownfields Kevin Kunkel Exploration Manager Exploration Gold Bar Gold Bar Las Vegas Nevada, USA
Slide 25: Cabin South Exploration
MUX Cabin South Exploration Kevin Kunkel Exploration Manager Exploration Gold Bar New geologic model of fold and thrust developed • Phase I drilling identified a thrust fault at top of Lone Mountain Dolomite with thin alteration intercepts • Drilling shifted east to target limb of fold with alterati
Slide 26: Pot Canyon Targets
MUX Pot Canyon Targets Kevin Kunkel Exploration Manager Exploration Gold Bar + 1 Million Au Ounce Potential • Known mineralization located on north limb of older west - northwest fold • Younger northwest fold cross - cuts older fold providing traps for mineralizing fluids • Analogous in part to mine
Slide 27: Wall Fault Corridor Exploration
MUX Wall Fault Corridor Exploration Kevin Kunkel Exploration Manager Exploration Gold Bar • Major fault corridor traced over 5 miles on property • Very strong geochemistry (As, Sb, Hg and Au) • Locally strongly altered • Only 5 legacy holes have intersected the Wall Fault and all 5 intersected miner
Slide 28: San José Mine Update
MUX San José Mine Update MSC & McEwen management team visit to San José in April 2023 San José Stefan Spears VP Corporate Development Ian Ball Jeff Chan Rob McEwen Michael Meding Dave Tyler Stefan Spears Bill Shaver Franco Rizzetto Diego Gomez Alfredo Sanchez
Slide 29: San José Mine
MUX San José Mine N Newmont Cerro Negro Mine Production: 5 2022 278,000 oz Au 2023E 330,000 oz Au 2024E 350,000 oz Au 20 k m 12 miles San José Argentina ▪ Narrow Vein Underground Silver / Gold Mine ▪ Large Property Package ▪ Good Grade Mine ▪ Surrounds Newmont’s Cerro Negro Reserve Grade 1 341 gpt S
Slide 30: San José Mine Update
MUX San José Mine Update Production Attributable to MUX Q1 2023A Q2 2023E Q/Q Increase H1 2023E 2023 Guidance Range Gold (oz) 6,700 10,400 +55% 17,100 39 - 43 K Silver (oz) 381,200 564,000 +50% 945,200 2,300 - 2,600 K 1. Q1 below expectations, the mine reacted and made corrections. 2. Q2 estimate fo
Slide 31: San José Exploration
Gar aa San José Exploration i J San José Nosé 2 el Northern Sector Target Property “= : 2 Hochschild 51% / McEwen 49% . ” cf Eey Saavedra Target ., |g" Telken Norte Target A . ON
Slide 32: Los Azules
™ ee. Los Azules June 2023 ON
Slide 33: McEwen Copper
Our flagship asset is the advanced Los Azules Project in San Juan, Argentina, which was ranked as the 9 th largest undeveloped copper project by Mining Intelligence in 2022. Our second asset is the early - stage Elder Creek Project in Nevada, USA. With a commitment to innovation and sustainability,
Slide 34: Highlights of 2022 and 2023 YTD
MUX Los Azules Michael Meding VP & GM - McEwen Copper Highlights of 2022 and 2023 YTD Completed financing totaling $267 M, significant value accretion for McEwen Mining and McEwen Copper shareholders, well - financed through 2023 into 2024. Executed two comprehensive drilling campaigns from 2022 to
Slide 35: Highlights of 2022 and 2023 YTD: Financing
MUX Initial financing with lead order by Rob McEwen for $ 40 M and Rio Tinto with $ 25 M closed oversubscribed with $ 82 M in Sep 2022 . Elder Creek 60 % optioned to Rio Tinto by investing $ 18 M over 7 yrs . Second financing round added Stellantis investing 30 B Argentine pesos ( $ 155 M at officia
Slide 36: Drilling Campaign 2022/2023
MUX Drilling Campaign 2022/2023 138 holes completed 39,927 meters drilled 15 drills active To date, the project has a total of 118,940 meters drilled (PTD). The largest drilling campaign in the history of Los Azules, and one of the largest in all of Argentina, has been completed. Los Azules Michael
Slide 37: Mineral Resource Improvements
MUX Mineral Resource Improvements Improvements vs 2017 PEA – Since the 2017 PEA, an additional 51 holes for 21,777m of drilling was added to the database for the updated resource estimate. C oupled with an increase in the copper price used for the resource (from $2.75 to $4.00/ lb.) this resulted in
Slide 38: PEA Highlights
MUX PEA Highlights Reviewed several opportunities – with strategic analysis based on NPV, IRR and payback Base Case – 175,000 tonnes LME Grade A copper cathode production annually Demonstration of Scalability - 125,000 tonnes LME Grade A copper cathode production annually Project defined as a Heap L
Slide 39: Industry-leading Expected Cost in the Lowest Quartile
MUX Industry - leading Expected Cost in the Lowest Quartile (Source: S&P Capital IQ Mine Economics Market Intelligence 2022 Data, SE Analysis) Los Azules Michael Meding VP & GM - McEwen Copper C1 Cash Cost per lb Cu by AssetMM0
Slide 40: GHG Emissions Expected in Lowest Quartile
MUX GHG Emissions Expected in Lowest Quartile With Further Improvement Potential Los Azules Michael Meding VP & GM - McEwen Copper 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Intensity 12k 11k 10k 9k 8k 7k 6k 5k 4k 3k 2k 1k 0 Los Azules 2023 Base Case 670 KgCO 2 e/ tCu EQ Los Azules 2023 Alt C
Slide 41: 2023/2024 Program - Feasibility Study Next Steps
MUX 2023/2024 Program - Feasibility Study Next Steps Los Azules Michael Meding VP & GM - McEwen Copper Drilling program slated to be 45,000 meters in the 2023 - 2024 campaign 01 Resource Model Upgrade Complete infill drilling and incorporate drill results into new model, developing a significant mea
Slide 42: Los Azules Org Chart – Executive Team
MUX Los Azules Org Chart – Executive Team – strong international and local expertise • 180 years of combined experience in mining projects and operations. • Strong team with experience in San Juan Argentina at top tier operations
Slide 43: Closing Remarks
Closing Remarks Rob McEwen Chairman & Chief Owner
Slide 44: Are we Undervalued?
MUX Are we Undervalued? Absolutely, Here is What We Believe Between US $8 and $35 Current Share Price $6.85 Based on recent market valuations / transactions June 28, 2023 MUX’s Underlying Value
Slide 45: MUX's Underlying Value: Sum of the Parts
MUX Low High McEwen Copper 2 Los Azules $2.47 3 $25.14 4 Elder Creek $0.31 5 $0.31 5 Royalty Portfolio $0.69 6 $0.69 6 Gold & Silver $4.66 7 $9.32 8 $8.15 $35.46 We Believe MUX’s Underlying Value Sum of the Parts @ June 28, 2023 Notes 1. McEwen Mining has 51 million fully diluted shares 2. McEwen Mi
Slide 46: Q&A
Q&A ————— McEwen@ MIninc Z G