Slide 1: Cautionary Statement
Cautionary Statement 2 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. The forward-looking statements and information expressed, as at the date of this pr
Slide 2: The Beginning of New Gold Uptrend
3 The Beginning of New Gold Uptrend Gold is Again Moving Up in All Major Currencies US$ EUR Source: Bloomberg. As of August 17, 2016 % US$ EUR % 2001 - 2011 2012 - Present Big $ invested in Mining Looks like it’s starting again -40 -30 -20 -10 0 10 2012 2013 2014 2015 2016 0 200 400 600 2001 2003 20
Slide 3: The Impact: Developed World's Attempt to Get the Economy Moving
4 Student Loan $1T Food Stamps Federal Debt $19T Money Printing $4T Median Family Income Home Ownership Workers’ Share of Economy Velocity of M2 Money Supply One Example of The Developed World’s Attempt to Get the Economy Moving THE IMPACT
Slide 4: # Gold ozs to Buy the DJIA
5 # Gold ozs to Buy the DJIA Source: Bloomberg. As of August 17, 2016 14 oz Aug 17, 2016
Slide 5: Gold vs Gold Stocks (YTD)
6 Gold vs Gold Stocks (YTD) Gold GDX Source: Bloomberg. As of August 17, 2016 % GDXJ -20 0 20 40 60 80 100 120 140 160 180 Jan Feb Mar Apr May Jun Jul Aug
Slide 6: Gold Shares Offer Better Upside Potential Than Gold
Gold Shares Offer Better Upside Potential Than Gold Price Increase (or Decrease) Needed to Achieve 2010-12 Highs 7 Source: Bloomberg. US$. 2010-2012 date & high closing price. Franco Nevada 2012-10-05 $60.85. Royal Gold 2012-09-28 $99.83. Gold 2011-09-05 $1900. Agnico Eagle 2010-12-06 $87.13. Newmon
Slide 7: Gold / Silver Ratio and Gold / Copper Ratio
8 Gold / Silver Ratio (1970 - Present) Source: Bloomberg. As of August 17, 2016 Gold / Copper Ratio (1970 - Present) 100 69 14 1970 623 750 83 1975 1980 1985 1990 1995 2000 2005 2010 2015 0 200 400 600 800 166 0 20 40 60 80 100 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Slide 8: Market Facts
4.7 M US$1.4 B @$4.50 Market Cap 305 M Fully Diluted 299 M Shares Outstanding Common Shares1 9 Source: Bloomberg. As of August 17, 2016. 1Common stock includes MAQ exchangeable shares that are convertible 1 for 1 into MUX Shares. 2Share volume NYSE and TSX combined. 3 Month Avg. Daily Share Volume T
Slide 9: We are Performing Well
We are Performing Well 10 154koz 127koz 121koz 88koz Production in gold equivalent ounces. Gold / silver ratio 75:1. 2016-2018 based on internal estimates. 1 2018 includes ramp-up production from Gold Bar of 30koz. for ½ year of production. (Est. 65koz annualized) 144koz Production Growth 144koz 170
Slide 10: Decreasing Costs
Decreasing Costs 11 $685 $962 US $ / oz Au Eq Gold / silver ratio 75:1 $935 $780 Forecast 2016 Production 31% 69% $- $200 $400 $600 $800 $1,000 $1,200 2013A 2014A 2015A 2016E Total Cash Costs All in Sustaining Cash Costs Silver 3,337,000 oz Gold 99,500 oz
Slide 11: Generating Positive Free Cash Flow
Generating Positive Free Cash Flow 12 Cash provided by operating activities, which is presented on the consolidated statement of cash flow, for the Q2 2016 10-Q. Treasury in cash, investments and precious metals at market price. This non-CAAP disclosure is defined on page 39 of the Q2 2016 10-Q. US$
Slide 12: Capital Distribution to Shareowners
Next Payment Aug 29, 2016 Capital Distribution to Shareowners 13 1¢ Per Share Paid Semi-annually In February & August Tax Free in US & Canada We have a Yield
Slide 13: Big Insider Ownership
$1 Annual salary No cash bonus No options Cost Base $127M Big Insider Ownership Strong Alignment with Fellow Shareowners 14 Rob McEwen Chief Owner 25%
Slide 14: Provides Leverage to Gold, Silver & Copper
Provides Leverage to Gold, Silver & Copper Production Plus Organic Growth 15 2 Producing Mines 2 Mines to be Built + 1 Big Copper Deposit
Slide 15: Production: El Gallo Mine – Gold – Mexico
Production: El Gallo Mine – Gold – Mexico Sinaloa State Mexico 16 1Production in gold equivalent ounces. Gold / silver ratio 75:1. Open Pit Heap Leach High Grade +2 gpt Au 2016 Est. Production Cost1 Cash $780/oz AISC $840/oz Mine Life +2.5 Years 2016 Exploration Budget $4M N 0 3 6 Miles El Gallo Sil
Slide 16: Argentina Turnaround Mining Story of 2016
17 Argentina Turnaround Mining Story of 2016! New President, New Government Rapidly Improving Investment Climate Exchange rate Mining export taxes Pro-business Pro-mining
Slide 17: Production: San José Mine - Gold & Silver - Argentina
Production: San José Mine - Gold & Silver - Argentina 18 1 Reserve grade 2 Production in gold equivalent ounces. Gold / silver ratio 75:1. 100% basis. 2Goldcorp website, 2016 production estimate. Santa Cruz, Argentina 2016 Exploration Budget $6.5 Million Shallow Underground Mine, Narrow Vein High Gr
Slide 18: Impact of New Government & Higher Gold / Silver Prices
Impact of New Government & Higher Gold / Silver Prices 19 2012 2015 2016 $20 million dividend $500,000 dividend Budget forecast $7.5 million dividend Using $1,050 Gold & $14 Silver At Todays’ Prices1 – Annual Au $1,350 / oz + $300 x 46,000oz2 = $13.8 million Ag $19.60 / oz + $5.60 x 3,300,000oz2 = $
Slide 19: Development Pipeline: Gold Bar – Gold, USA
Tonkin Gold Bar BMX Cortez Silver Standard Marigold Waterton Ruby Hill Battle Mountain Cortez Trend Afgan Cortez Pipeline Gold Rush Discovery Premier McCoy-Cove 0 10 20 Km N Nevada, USA Development Pipeline: Gold Bar – Gold, USA Next to Barrick’s Biggest Gold Mine & Discovery Open Pit, Heap Leach 0.
Slide 20: Gold Bar Feasibility Study
Nevada, USA Development Pipeline: Gold Bar – Gold, USA Next to Barrick’s Biggest Gold Mine & Discovery Positive Feasibility Study (Oct. 2015) @ $1,150 / oz Low Capex $60 M Time to Build 12 Months 2016 Exploration Budget $1.5 Million 21 $1,150 $1,350 1.0 1.5 2.0 2.5 3.0 3.5 15% 20% 25% 30% 35% 40% 45
Slide 21: Gold Bar Exploration – Potential to Extend Mine Life
Gold Bar Exploration – Potential to Extend Mine Life 22 N Cortez Trend Nevada, USA 10 5 Km 100 ft @ 0.16 opt (30 m @ 5.48 gpt) 173 ft @ 0.08 opt (52.7 m @ 2.74 gpt) 0 4.22 gpt Au / 16.8 m1 Potential Around Mine Potential on Afgan Property Gold Bar Open Pits Afghan Resource Legend Open Open Open Open
Slide 22: Development Pipeline: El Gallo Silver
Development Pipeline: El Gallo Silver 23 Sinaloa State Mexico Permitted for Construction Open Pit / Mill Projected Avg Annual Production1 3.5 Moz Ag / Yr Requires Higher Silver Price +$21 / oz New Feasibility Study Underway PFS Sept 2016 1Feasibility study based on internal economic studies, Septemb
Slide 23: Los Azules Investment Opportunity
0.71% Cu / 166m 0.50% Cu / 269m Inc. 0.95% Cu / 45m 0.49% Cu / 329m Inc. 0.71% Cu / 101m 0.44% Cu / 529m 1.01% Cu / 216m 1.05% Cu / 236m 24 San Juan Province, Argentina Los Azules Investment Opportunity World Class Advanced Exploration Project 19.7 B lb Cu at 0.55%: Resources1 1August 1, 2013 NI 43-
Slide 24: Los Azules: Large Leverage Copper
Los Azules: Large Leverage Copper Advanced Exploration with PEA1 @$3.00 Cu Resources1 19.7 B lb Cu at 0.55%: San Juan Province, Argentina 25 1August 1, 2013 NI 43-101 Technical Report, Los Azules Porphyry Copper Project. Resources: indicated copper 5.4 B lb, inferred 14.3 B lbs. 2After-tax. 3Company
Slide 25: MUX 2019 Forecast – Organic Growth
26 MUX 2019 Forecast – Organic Growth 170koz 144koz 230oz Gold Equivalent Production Production Mix Production in gold equivalent ounces. Gold / silver ratio 75:1. Based on internal estimates. 1 2018 includes ramp-up production from Gold Bar of 30koz. for ½ year of production. (Est. 65koz annualized
Slide 26: High Beta to Gold
27 Source: Bloomberg. As of August 17, 2016. 1Three year average. High Beta1 To Gold 2.7x Significant Upside Potential $9.50 $9.15 $0.42 $0.36 $4.50 26x 22x $0.65 Rob McEwen Becomes CEO US Gold McEwen Mining Share Price US$ 0 2 4 6 8 10 2000 2004 2008 2012 2016
Slide 27: Catalysts for Growth
Catalysts for Growth 28 Improving Business Environment Argentina Pro-business Pro-mining Government Extending Mine Life 2016 Property Acquisitions Mexico Nevada Mining R&D Exploration 2016 $4.0M Mexico $6.5M Argentina $1.5M Nevada M&A S&P 500
Slide 28: Catalysts for Growth
Catalysts for Growth Property Acquisitions Argentina