Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Shareholder Meeting (June 2021)
56 slides from Mcewen's shareholder meeting presentation, Jun 30, 2021
Slide 1: Annual Meeting 2021: Gaining Momentum
NYSE & TSX MUX Annual Meeting 2021 Gaining Momentum McEwen© Minine June 28, 2021 Buse mux 15k
Slide 2: Senior Management Team – Speakers
MUX Peter Mah Chief Operating Officer Peter is a Professional Engineer with 30 years of mining experience, with a passion for developing teams and a focus on excellence and innovation. Peter set a strong track record in building, transitioning and operating mines. Peter holds BASc in Mining and Mine
Slide 3: Annual Meeting Agenda
MUX MUX Annual Meeting Agenda Formal Part of the Meeting Carmen Diges , General Counsel Company Presentation • Performance Improving Rob McEwen, CEO & Chief Owner • Financials Anna Ladd - Kruger, CFO • Exploration Stephen McGibbon, EVP Exploration • Operations Peter Mah , COO • Closing Remarks Rob M
Slide 4: Formal Part of the Meeting
Annual Meeting 2021 Formal Part of the Meeting Carmen Diges, General Counsel
Slide 5: Performance Improving
Annual Meeting 2021 Performance Improving Rob McEwen, CEO & Chief Owner
Slide 6: Cautionary Statement
MUX MUX: Cautionary Statement This presentation contains certain forward - looking statements and information, including "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("Forward - looking Statements") . The Forward - looking Statements expre
Slide 7: MUX Has Leverage to Gold, Silver & Copper
MUX 0 20 40 60 80 100 120 140 160 180 200 Mar/2020 Jun/2020 Sep/2020 Dec/2020 Mar/2021 Jun/2021 MUX Has Leverage to Gold, Silver & Copper % Silver 107% Copper 96% Gold 19% Source: Bloomberg. From Mar 20, 2020 to June 25, 2021 . MUX 148% GDXJ 92%
Slide 8: MUX: History of Trading at a Premium
MUX -100 -80 -60 -40 -20 0 20 40 60 80 100 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Bloomberg. Monthly performance, f rom Jan 1, 2012 to June 25, 2021 . MUX: History of Trading at a Premium % MUX GDXJ MUX Outperformance MUX Underperformance MUX GDXJ MUX vs GDXJ Relative Performance
Slide 9: MUX: Regaining Lost Ground
MUX -80 -60 -40 -20 0 20 40 60 80 100 2018 2019 2020 2021 MUX: Regaining Lost Ground $1.44 Current MUX Source: Bloomberg. Weekly performance, f rom June 22, 2018 to June 25, 2021 . MUX Outperformance MUX Underperformance Potential MUX $3.18 Closing The Gap % MUX GDXJ MUX vs GDXJ Relative Performance
Slide 10: Financial Results
Annual Meeting 2021 Financial Results Anna Ladd - Kruger, CFO
Slide 11: 2020 Operational & Financial Results
MUX 2020 Operational & Financial Results • 114,800 GEO actual production • $152.3 M consolidated net loss primarily related to: – $27 M gross loss of operations – $9 M G&A – $27.5 M advanced projects & exploration – $83.8 M Gold Bar impairment • Removed going concern note • Debt facility extended fr
Slide 12: 2021 Production & Guidance
MUX 2021 Production & Guidance GEO – gold equivalent ounces. 2021 production guidance - Feb 2, 2021 press release. Q1 2021 production – Apr 19, 2021 press rel ease. Numbers may not add due to rounding. Q1 total silver production sourced from San Jose and 900 oz Ag from the other mines. G old:silver
Slide 13: Q1 2021 Highlights
MUX Q1 2021 Highlights Gold Equivalent Production 30,600 oz 1 Cash Gross Profit $0.2 M Cost of Sales $1,611/ oz 2 Net Loss $12.5 M vs $99.2 M Q1 2020 All - in Sustaining Costs $1,777/ oz 2 Cash & Equivalents $47.4 M vs $20.8 M Dec 31, 2020 1. Includes 13,900 GEO from 49% San Jose Mine 2. 100% McEwen
Slide 14: 2021 Operational & Financials
MUX 2021 Operational & Financials • YTD production in line with expectations, on track for 2021 guidance • Operating costs @ Black Fox & Gold Bar trending down Likely to give cost guidance for remainder of year with Q2 results • Strengthened balance sheet vs same period last year • San José mine div
Slide 15: Gaining Momentum – Achievements in the Past Year
MUX Gaining Momentum – Achievements in the Past Year Financial Completed financing for 2021 exploration, operations & projects Removed going concern note Extended debt repayment term Continued dividend stream from MSC partner - $7.5M received YTD Operational Attracting talent at corporate & operatio
Slide 16: CEO's Financial Commitment
MUX CEO's Financial Commitment $16 5 M 18 % $1/ Y r Investment 1 Ownership Salary Rob McEwen 18% Institutional 25% Retail 57% 1 - Rob McEwen’s investment: $1 40 M shares + $25 M, Aug 13, 2018 press release. 2 - Average Daily Trading Volume over 3 months. 3 - Holdings in million shares. Source: Bloom
Slide 17: Exploration Review
Annual Meeting 2021 Exploration Review Stephen McGibbon, EVP Exploration
Slide 18: Exploration Review
MUX • Aggressive Exploration Programs in Ontario & Nevada • Focus on Near - Mine & Brownfields Value Creation • Understand the Local, Extend to the Regional • Confidence & Reliability • Big Picture Hasn’t Changed Exploration Review
Slide 19: Fox Complex – Strategic Opportunity Along Strike & at Depth
MUX Stock Mine 27.2 g/t Au / 7m incl. 120 g/t Au / 1.6m Black Fox Mine 55.1 g/t Au / 1m Stock / Black Fox Kirkland Lake Timmins Red Lake 1,000m 2,000m Surface Ore Bodies Headframe/ Shaft 3,300ft 6,600ft Stock West 6.7 g/t Au / 39m Stock East 63.6 g/t Au / 6.2m Grey Fox Area Whiskey Jack 9.9 g/t Au /
Slide 20: Fox Complex – Strategic Opportunity
MUX Fox - Stock Mine & Mill Black Fox Mine (incl Tamarack) Matheson Fox - Lexam Trans - Canada Hwy N Timmins 20 miles (32 km) Grey Fox Mineral Resources: 2,789,000 oz Au Measured & Indicated & 1,183,000 oz Au Inferred Froome Destor - Porcupine Fault Zone Resources: M&I - Measured & Indicated, Inf –
Slide 21: Stock Area – Resources Taking Shape
MUX • Historical grades processed at Stock Mine +5 g/t Au • Stream - free land package • Proximal to the mill, near surface • Large mineralized intersections lend to potential for efficient bulk mining methods • Dewatering of shaft to begin H2 2021 Stock Area – Resources Taking Shape Stock West Stoc
Slide 22: Stock Area – Resources Taking Shape
MUX Surface - 1000m - 500m Gold Grade x Width (g/t x m) 50 to 100 25 to 50 10 to 25 5 to 10 >100 Stock West Stock Mine 137 Koz Au historic production Stock East Stock Area – Resources Taking Shape Longitudinal Section Looking North 5 km to Property Boundary
Slide 23: Stock West – Resources Taking Shape
MUX - 300m - 500m 1 3 2 Stock West – Resources Taking Shape Drill results are true widths and are presented in the May 10, 2021 press release, “McEwen Mining Reports Upbeat Exploration & D elineation Results” Select Drill Intercepts 1 2.92 g/t Au over 39.6 m incl 5.05 g/t Au over 6.2 m and 7.59 g/t
Slide 24: Nevada – Tier Jurisdiction
MUX Nevada – Tier 1 Jurisdiction Cortez Nevada Gold Mines Cortez 50 Moz Au cluster 1 Fourmile Discovery Goldrush MUX Property NGM Property Faults Gold Bar 20 k m 1 . Includes past production and current resources. Underexplored, With Upside Potential Legend Gold Bar Nevada, USA 12 miles N On Trend -
Slide 25: Gold Bar - $5 M for Near Mine/Brownfields
MUX Gold Bar - $5 M for Near Mine/ Brownfields Gold Bar South Legend Mine Deposit Near mine targets Brownfield Greenfield Pick Ridge Cabin Near Mine Resource Expansion N Brownfields Known Mineralized/ Altered Areas Greenfields Large Faults/ Alteration/ Little to No Data 0 1 2 Miles
Slide 26: Gold Bar - $5M for Near Mine/Brownfields
MUX RGM043 28.9 m @ 1.50 gpt Au (from 25.0 to 57.1 m) RGM044 43.9 m @ 2.02 gpt Au (from 54.3 to 103.1 m) RGM045 18.1 m @ 3.07 gpt Au (from 11.6 to 32.9 m) RGM046 28.2 m @ 1.54 gpt Au (from 69.3 to 100.6 m) Legend Mine Deposit Near mine targets Brownfield Pick Ridge Cabin N 0 1 2 Miles Gold Bar - $5M
Slide 27: Gold Bar - $5 M for Near Mine/Brownfields
MUX 2018 Block Model 2020 Block Model Gold Pick Pit – 8340 Bench Gold Bar - $5 M for Near Mine/ Brownfields Block Model (above COG) Ore Control Rings (in - pit) Legend N N
Slide 28: San José - High Grade in the Americas (49% Owned)
MUX San José Mine N Production 2020 6 231,000 oz Au 12 miles San José Argentina 1., 2. Hochschild “Annual Report and Accounts 2020”. 3. Based on 49% MUX ownership basis. 4. MUX Feb 2, 2021 press release 5. Hochschild 1 - 5 Mar 2021 presentation. 6. Newmont disclosure. San José - High Grade in the Am
Slide 29: San José - Exploration Targets
MUX N 20 k m Newmont Cerro Negro Mine 12 miles San José - Exploration Targets ▪ Recent Near Mine Results 2.0 m @ 62.50 g/t Au & 5,571 g/t Ag 1.3 m @ 13.80 g/t Au & 3,149 g/t Ag 1.6 m @ 5.60 g/t Au & 648 g/t Ag 0.9 m @ 2.20 g/t Au & 722 g/t Ag Source: Hochschild Mining: press releases dated Jan 20 20
Slide 30: Operations Overview
Annual Meeting 2021 Operations Overview Peter Mah, COO
Slide 31: Gold Bar Operational Update
MUX Gold Bar Operational Update Cortez Fourmile Discovery Goldrush Gold Bar 1 . Includes past production and current resources. Gold Bar Nevada, USA Tonkin • Current life of mine - 302,000 oz Au Recoverable Reserve - 6 - year mine life - Cash Costs $1,093/oz Au, AISC $1,213/oz Au • June 2021 all - t
Slide 32: Gold Bar Mine Production
MUX Gold Bar Mine Production - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Oz Au Produced Ounces Mined Ore Ounces 6,000 Est. 2020 2021 Produced Ounces Mined Ounces New Monthly Production Record
Slide 33: Fox Complex Operational Progress Update
MUX Fox Complex Operational Progress Update Mining started at Froome , extends Black Fox by 2.5 years – Twin ramps completed in April – On target for commercial production in Q4 2021 – First 3 mining areas performing well – Further res - rsv drilling underway with 3 rigs targeting extensions Fox Com
Slide 34: Froome – Early Observations
MUX Ahead on Ounces vs. Budget On Target Development Higher Mill Recovery (91.5% vs 89.5%) Froome – Early Observations Planned Stope Shapes Mining Development Production/ Ventilation Ramps 70mL 105mL 140mL 175mL 200 mL 225 mL 2021 • Completion of twin ramps o Access 200mL – March 2021 o First Produc
Slide 35: Fox Complex Production
MUX Fox Complex Production oz Au
Slide 36: Closing Remarks
Annual Meeting 2021 Closing Remarks Rob McEwen, CEO & Chief Owner
Slide 37: A Silver Company within MUX
MUX A Silver Company within MUX 2020 Production ( Moz AgEq ) 63.7 19.1 14.7 10.1 10 7.5 6.3 5.6 1.9 1.6 0.6 Pan American Silver First Majestic Silver Fortuna Silver McEwen Silver - San José + Fenix Phase 2 Silver Corp McEwen Silver - San José + Fenix Phase 1 Endeavour Silver McEwen Silver - San José
Slide 38: Los Azules: NPV Sensitivity
MUX Los Azules: NPV Sensitivity Change from Base Case (%) Copper Price ($/ lb) - 50% - 25% 100% +25% +50% $1.15 $2.25 $3.00 $3.75 $4.50 $6 $5 $4 $3 $2 $1 Cu Price Au Price Ag Price Grade CAPEX OPEX OPEX - Mining OPEX - Process OPEX – G&A $0 $ - 1 $ - 2 NPV8% Billions US$ After - tax NPV8% 1 $2.2B at
Slide 39: Incentive Cost Curve for Unapproved Copper Projects
MUX Incentive Cost Curve for Unapproved Copper Projects 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 New Prosperity Tenke Phase 3 Pebble El Abra Mill Al Arco Galore Creek Los Azules Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Kamoa - Kakula Resol
Slide 40: Los Azules
MUX Los Azules Rank Asset Information Project Name (Ownership) Filo del Sol (100%) Josemaria (100%) Alpala (85%) (2) Vizcachitas (100%) Los Azules (100%) Country Argentina / Chile Argentina Ecuador Chile Argentina Stage PFS FS PEA PEA PEA Public Markets Information F.D. ITM Market Capitalization (B
Slide 41: Near-Term Catalysts
MUX Near - Term Catalysts • Exploration Results • Fox Complex Expansion PEA • Froome Commercial Production Q4 • Monetize Copper & Silver Asset
Slide 42: Motivated, United, Exceptional
Motivated United X ceptional
Slide 43: Annual Meeting 2021 Q&A
MUX Annual Meeting 2021 Q&A
Slide 44: Appendix
Appendix
Slide 45: Project Fenix Feasibility Study
MUX Project Fenix Feasibility Study * Fenix Sinaloa Mexico • Innovative, water saving, tailings disposal • Phase 1 permitting completed Base Case $1,500/oz Au $17/oz Ag Spot Case $1,800/oz Au $25/oz Ag Upside Case $ 1,900/oz Au $25/oz Ag After - Tax IRR 28% 51% 56 % After - Tax NPV@8% $32 M $91 M $9
Slide 46: Stock West Drill Results - Strong, Consistent Mineralized Intercepts
MUX Stock West Drill Results - Strong, Consistent Mineralized Intercepts 21.40 g/t Au over 30.0 m 2 Visible Gold 1 (VG) 5.63 g/t Au over 30.0 m 1 Core from drill holes: 1. S19 - 98, 2. S19 - 106.
Slide 47: Fox Complex Expansion Strategy
MUX Fox Complex Expansion Strategy 1 Production Growth Steps to Target 100 - 150 Koz / Yr Leveraging Stock Mill Capacity 1 Based on existing 2.8 Moz Measured & Indicated Resource from Black Fox, Grey Fox, Stock and Timmins properties. Step 1. Froome Commercial production Q4 2021 Bridging gold produc
Slide 48: Froome Deposit – Better Mining Conditions Than Black Fox
MUX Drill core from hole #15PR - G031. Numbers in yellow represent grams per tonne values over sample length. Froome Deposit – Better Mining Conditions Than Black Fox Shown below is a core interval of the wide zone - consistent grades and favorable ground conditions expected, providing for overall b
Slide 49: Grey Fox Drill Results
MUX Area Project Hole # Gold (g/t) Width (m) From (m) Including Au GxM GREY FOX 147NE 19GF - 1253 265.00 1.2 56.0 318 19GF - 1121 261.00 0.6 168.7 157 19GF - 1123 39.46 3.8 325.0 143.00 g/t Au / 1.0 m 150 19GF - 1151 10.04 13.2 229.8 133 19GF - 1134 6.98 15.5 466 108 19GF - 1175 148.00 0.7 189.1 105
Slide 50: Fox Complex Drill Results @ Stock West
MUX Length Au g/t Cog 1Cog 3 536.0m 1.0 1.15 1.0 0.12 1.0 0.81 1.0 3.36 1.0 1.27 1.0 0.65 1.0 11.60 1.0 6.04 1.0 10.70 1.0 10.35 1.0 16.90 1.0 12.60 1.0 13.65 1.0 26.80 1.0 21.40 1.0 9.48 1.0 13.85 1.0 13.05 1.0 8.70 1.0 2.33 1.0 2.04 1.0 0.45 1.0 1.42 1.0 0.83 561.0m 1.0 2.16 7.72g/t Au / 25m 11.24
Slide 51: San José Mine Vein Extensions
MUX San José Mine Vein Extensions Source: Hochschild Mining. Lengths are rounded up to the nearest tenth. 1.0 m @ 7.02 g/t Au, 811 g/t Ag 1.0 m @ 2.38 g/t Au, 1,964 g/t Ag 0.7 m @ 0.30 g/t Au, 18 g/t Ag 1.3 m @ 9.51 g/t Au, 1,318 g/t Ag 1.0 m @ 20.26 g/t Au, 461 g/t Ag 1.3 m @ 6.67 g/t Au, 762 g/t A
Slide 52: MUX: Reserves & Resources – Mineral Reserves
MUX MUX: Reserves & Resources Mineral Reserves Source: Company disclosures to March 11, 2021. Attributable Gold Reserves Proven Probable Proven + Probable 43 - 101 Au Reserves Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (mill
Slide 53: MUX: Reserves & Resources – Mineral Resources
MUX MUX: Reserves & Resources Mineral Resources Attributable Gold Resources Measured Indicated Measured + Indicated Inferred 43 - 101 Au Resources Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contain
Slide 54: Mineral Resources (Cont'd)
MUX MUX: Reserves & Resources Mineral Resources (Cont’d) Source: Company disclosures to March 11, 2021.Note: Mineral Resources inclusive of Mineral Reserves (where applicable). Attributable Silver Resources Measured Indicated Measured + Indicated Inferred 43 - 101 Ag Resources Tonnes (millions) Gram
Slide 55: Cautionary Note Regarding Non-GAAP Measures
MUX MUX: Cautionary Note Regarding 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 st
Slide 56: McEwen Leadership Program
MUX McEwen Leadership Program McEwen School of Architecture