Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — AGP Battery Metals Conference 2022
49 slides from Mcewen's conference presentation, Mar 17, 2022
Slide 1: AGP Battery Metals Conference - Surfacing Copper Value
AGP Battery Metals Conference March 16, 2022 All figures in US Dollars In the Los Azules Project, San Juan, Argentina McEwen Copper, a subsidiary of Surfacing Copper Value
Slide 2: Cautionary Statement
MUX 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 o
Slide 3: Los Azules in the Prolific Andes Copper Belt
MUX LOS AZULES in the Prolific Andes Copper Belt Altar - Aldebaran Res. Filo del Sol – Filo Mining Josemaria Mara(Alumbrera/Agua Rica) Los Azules - McEwen Copper Barrick Veladero mine & Pascua Lama project Glencore El Pachon mine Fortescue 2,930 km2 in Cu-Au prospective projects Lundin Mining Filo d
Slide 4: Los Azules – 9th Largest Undeveloped Copper Project in the World
MUX Los Azules – 9th Largest Undeveloped Copper Project in the World Feb 2022
Slide 5: Los Azules: A Significant Copper Resource
MUX Los Azules: A Significant Copper Resource Source: Preliminary Economic Assessment (PEA) Oct 16, 2017 - “NI 43-101 Technical Report – Preliminary Economic Assessment Update for the Los Azules Project, Argentina” (Hatch). Conceptual Process Plant Indicated Inferred Animated Project Video: https://
Slide 6: Comparable Copper Project Acquisitions
MUX Target (Project) Buyer Location PA Date Cu Price @ PA Date Development Stage CuEq R&R Acquired (billion lbs) CuEq Grade % US$/ lb Cu Eq 1 Peregrine Metals Ltd (Altar) Stillwater Mining Company Argentina 07/11/2011 $4.37 Resource 12.6 0.45% $0.036 2 Mason Resources Hudbay Minerals USA 10/31/2018
Slide 7: Surfacing Value for MUX
MUX Surfacing Value for MUX • $ 80 M financing expected to close Q1 2022 • Fully fund to prefeasibility stage and complete by end H2 2023 • Pre-Money Value used for $80 M financing1: $175 M or $0.006/ lb CuEq • Post financing ownership: M – millions. As of Mar 11, 2022: MUX shares outstanding: 474 M
Slide 8: McEwen Copper: Use of Funds for Los Azules
MUX McEwen Copper: Use of Funds for Los Azules Purpose: l De-risk l Update PEA H2 2022 l Prefeasibility study (PFS) H2 2023 l Upgrade resource estimate with more drilling & test extents l Construct new year-round road access l Begin early stakeholder engagement and permitting
Slide 9: Los Azules - Drilling Program
MUX Los Azules - Drilling Program 44,000 meters Definition Drilling + 9,000 meters Geotechnical/ Metallurgical 5 drills on site The Los Azules camp, supporting the drilling program.
Slide 10: Los Azules Schematic Geology Model
MUX Los Azules Schematic Geology Model Source: NI 43-101 Technical Report-Preliminary Economic Assessment Update for the Los Azules Project, Argentina. 2017
Slide 11: Los Azules Grade Estimation Model
MUX Los Azules Grade Estimation Model Source: NI 43-101 Technical Report-Preliminary Economic Assessment Update for the Los Azules Project, Argentina. 2017 Longitudinal Section X-Section Click to add text Looking East Looking North
Slide 12: Los Azules – Exploring Further for Deeper Opportunity
MUX Los Azules – Exploring Further for Deeper Opportunity The Los Azules camp, supporting the drilling program. 0.46% Cu / 120m 1.12% Cu / 50m 0.50% Cu / 98m BXA Dior. Plu. Dior. Plu. & BXA
Slide 13: Earlier Stage Project That Ranks #1: Lower Altitude, Closer to Power
MUX Los Azules Earlier Stage Project That Ranks #1: Lower Altitude, Closer to Power and Easier Access Project Los Azules Rank Los Azules Filo Del Sol Josemaria Veladero Stage PEA PFS FS Mining since 2005 Altitude Pit 3,100 – 4,100 m 4,900 – 5,300 m 4,000 – 4,500 m 3,700 – 4,600 m 1 / 4 Camp 3,300 m
Slide 14: Whittle
Whittle GE) SAMUEL ‘. oe & MCLENNAN DESIGN ° faa? Consulting i 1 aL | Breet ee Mountain Pass LLC
Slide 15: Community Engagement for Los Azules
MUX Community Engagement for Los Azules 5 Community Plans Ongoing – Led lights for the village – completed – Construction materials for health post in Villa Nueva (90% completed) – Support police infrastructure – Eco friendly totems for Calingasta – provide hot water and usb charges using solar powe
Slide 16: Los Azules Project Leadership Team
MUX Los Azules Project Leadership Team Michael Meding – Vice President Michael Meding has over 20 years of international experience, mostly with major mining companies such as Barrick Gold and Trafigura, including extensive experience with project development and operations in Argentina. While at Ba
Slide 17: Reasons to Buy MUX
Reasons to Buy MUX 1. Surfacing Copper Value 2. Turnaround in Progress 3. Unique Insider Ownership NYSE & TSX All figures in US Dollars AGP Battery Metals Conference March 16, 2022
Slide 18: MUX: Diversified Growth Pipeline
MUX Fox (Froome) Gold Bar El Gallo MUX: Diversified Growth Pipeline Gold, Silver, Copper Assets Gold 6 Development Projects Fox Copper Los Azules El Gallo (Fenix) Argentina Mexico Nevada Ontario 4 Mines Gold Gold & Silver Gold & Silver San Jose (Grey Fox, Stock, Froome, Fuller)
Slide 19: Management Team
MUX Management Team Rob McEwen Chairman & Chief Owner Rob has $1/ year salary, has invested $165 million in McEwen Mining and owns 18% of the company’s outstanding shares. He is the founder of Goldcorp, was awarded the 2001 PDAC Developer of the Year, the Order of Canada, and was inducted into The C
Slide 20: 2021 Highlights
MUX 2021 Highlights 1. Gold Equivalent Ounces (GEOs) are calculated based on a gold to silver price ratio of 73:1 for Q3 2021, 68:1 for Q1 and Q2 2021, 94:1 for Q1 2020, 104:1 for Q2 2020, 79:1 for Q3 2020 and 75:1 for full year (FY) 2021. 2. Cash costs per ounce, all-in sustaining costs (AISC) per
Slide 21: Increased Production in Q4 & Year 2021
MUX INCREASED Production in 2021 Q4 & Year 2021 Compared to Q4 & Year 2020 2021 vs 2020 INCREASED Production in Q4 2021 INCREASED Production in 2021 Q4 2021 (GEOs) Q4 2020 (GEOs) Q4 2021 vs Q4 2020 2021 (GEOs) 2020 (GEOs) 2021 vs 2020 Gold Bar Mine, Nevada 9,950 6,000 +66% 43,850 28,000 +57% Fox Com
Slide 22: Decreased Costs in 2021
MUX DECREASED Costs in 2021 Year 2021 Compared to Year 2020 2021 vs 2020 DECREASED Cash Costs/ GEO DECREASED AISC/ GEO 2021 ($/GEO) 2020 ($/GEOs) 2021 vs 2020 2021 ($/GEOs) 2020 ($/GEOs) 2021 vs 2020 Gold Bar Mine, Nevada 1,687 2,106 -20% 1,753 2,459 -29% Fox Complex, Canada 1,108 1,397 -21% 1,461 1
Slide 23: Liquidity at December 2021 vs 2020
MUX Liquidity at December 31 – 2021 vs 2020 (Millions of Dollars) Dec 31 2021 Dec 31 2020 Cash & Cash Equivalents $ 54.3 $ 20.8 Liquid Assets 63.5 25.9 Working Capital 32.6 7.9 Debt Principal 50.0 50.0
Slide 24: 2022 Production Guidance
MUX San José Mine, Argentina (49%)(2) Gold (oz) 34,500-38,500 Silver (oz) 2,520,000-2,800,000 GEOs(1) 69,500-77,500 Gold Bar Mine, Nevada GEOs(1) 38,000-44,000 Black Fox Mine, Canada GEOs(1) 44,000-49,000 Total Production Gold (oz) 118,000-133,000 Silver (oz) 2,520,000-2,800,000 GEOs(1)(4) 153,000-1
Slide 25: 2022 Costs Guidance
MUX 2022 Costs Guidance 1.Gold Equivalent Ounces (GEOs) are calculated based on a gold to silver price ratio of 72:1. 2. Represents the portion attributable to us from our 49% interest in the San José Mine. 3. Cash costs per GEO and all-in sustaining costs (AISC) per GEO are non-GAAP financial perfo
Slide 26: Fox PEA: Higher Production, Longer Life
MUX Fox PEA: Higher Production, Longer Life * * Case A includes Froome into the development of mines at Stock West, Grey Fox and Fuller deposits for the Fox PEA. Case B shows the incremental return on investment provided by the expansion of the Fox mill to 2,400 TPD and the development of mines at S
Slide 27: Exploration Driving Near-Term Production Growth & Mine Life
MUX Exploration Driving Near-Term Production Growth & Mine Life Overview Fox Complex Froome Drill Results Stock West Initial Mineral Resource Estimate Green Carbonate (CGR) Extension to FW Stock Mine Shallow Extensions and Some Deeper Drilling Nevada Exploration Resource Expansion Drilling at Cabin
Slide 28: Fox Complex - Froome: Longer Intercepts, Shallower Depth
MUX Fox Complex - Froome: Longer Intercepts, Shallower Depth Than Black Fox Expansion Potential U/G Definition & Delineation 76% Success Rate! One Year Added to Mine Life! Above 140L & Below 200L Longitudinal Section Looking North
Slide 29: Fox Complex - Stock Exploration
MUX Surface -500mL Stock West Stock Mine 137 Koz Au historic production Longitudinal Section Looking North -500mL -330mL -330m Fox Complex - Stock Exploration Gold Grade x Width (g/t x m) 50 to 100 25 to 50 10 to 25 5 to 10 >100 Porphyry Sill Stock East 200m envelope 200m Next Discovery Near-Term SM
Slide 30: Fox Complex: Stock Exploration From Discovery to Resource
MUX Fox Complex: Stock Exploration From Discovery to Resource Surface Cog 0.5g/t Au X-Section looking NE Longitudinal Vertical Section Looking NW SM21-202 4.29 g/t / 21 m S19-95 27 g/t / 7 m Stock West MRE Meas+Ind = 144,000 ozs Au @ 3.83gpt Au Inferred = 111,000 ozs Au @ 3.30gpt Au
Slide 31: Gold Bar: Mineralization Model
MUX Gold Bar: Mineralization Model WNW ESE Shallow oxide/sulphide and extension of existing mineralization Deep large, high-grade Au potential (untested) Target Types Generalized Cross Section Looking Northeast Possible Intrusion?
Slide 32: Gold Bar: Near Mine Extensions
MUX Gold Bar: Near Mine Extensions Ridge North Connector Footwall Cabin North Cabin South Pick Southwest East Pick Extension Confidence Level High Medium Lower Resource Expansion Target Area Existing Open Pit 2022 Indicated Resource Potential Ridge North East Pick Extension Pick Southwest Cabin Sout
Slide 33: Gold Bar - SW Pick Drilling
MUX Gold Bar - SW Pick Drilling GBSW001 (assays pending) GBSW006 (assays pending) GBSW005 GBSW003 (in progress) GBSW002 (assays pending) GB706 0.856 g/t Au, 150-270 ft, r=88% GB710 0.682 g/t Au, 155-220 ft, r=93% Fault Zone Resource Expansion 2022 Near-Mine Potential Updated Mapping Simplified Model
Slide 34: San José - High Grade in the Americas (49%-Owned)
MUX San José Mine N Production 20206 231,000 oz Au 20 km Newmont Cerro Negro Mine 12 miles San José - High Grade in the Americas (49%-Owned) Property outline - Large Property - High Grade Mine - Surrounds Newmont - Ciclon Este New Greenfield Project San José Mine
Slide 35: San José – Q3 2021 San José & Saavedra Drilling Results
MUX San José – Q3 2021 San José & Saavedra Drilling Results Amelia Tensional HVN Olivia SJD-2329: 3.0m @ 13.0g/t Au & 1,740g/t Ag SJD-2342: 4.3m @ 14.9/t Au & 1,381g/t Ag SJD-2361: 0.9m @ 3.4g/t Au & 323g/t Ag SJD-2346: 1.8m @ 6.7g/t Au & 582g/t Ag SJD-2385: 0.8m @ 2.6g/t Au & 196g/t Ag SJM-547: 2.0
Slide 36: San José - Ciclon Este Location
MUX San José - High Grade in the Americas (49%-Owned) Ciclon Este Location from San José Straight line: 70 km south Partially surrounded by mining properties of MSC (Red polygon) that we have reviewed and we have no continuity of mineralization. 12 km of veins with high surface silver grades. No dri
Slide 37: San José - Ciclon Este Drill Testing
MUX San José - High Grade in the Americas (49%-Owned) 1.- Continuidad en profundidad de altas leyes de plata en las vetas conocidas Ester; Ingrid; Juli; Maira; María; Monolito; Magda; Pia; Mariú; C° Arturo; Veta Sur, del sistema NNE y Vetas Mica, Reina y Fiorella del sistema WNW. 2.- Alta posibilida
Slide 38: $205M Investment: A CEO With a Financial Commitment
MUX $205M Investment 1 A CEO With a Financial Commitment 18% $1/Yr Ownership Salary Rob McEwen 18% Institutional 26% Retail 56% 1 - Rob McEwen’s investments: $140 million in McEwen Mining shares and $25 million (Aug 13, 2018 press release), plus $40 million in McEwen Copper shares. 2 - Average Daily
Slide 39: Contact for Additional Information
MUX Rob McEwen Chairman and Chief Owner McEwen Mining & McEwen Copper rob@mcewenmining.com Stefan Spears Vice President, Corporate Development stefan@mcewenmining.com (647) 408-1849 Tara Saratsiotis Executive Assistant to Rob McEwen tsaratsiotis@mcewenmining.com (647) 258-0395 x230 Contact for Addit
Slide 40: Appendix
MUX Appendix
Slide 41: Los Azules: Robust Preliminary Economics
MUX Los Azules: Robust Preliminary Economics 1 Preliminary Economic Assessment (PEA) Oct 16, 2017 - “NI 43-101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina” (Hatch). All project economic metrics are presented on a post-project approval basis (after
Slide 42: Los Azules: NPV Sensitivity
MUX Los Azules: NPV Sensitivity Change from Base Case (%) Copper Price ($/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 NPV(8%)1 l $2.2B at $3.00
Slide 43: Los Azules Vision: EverGreen Objectives
MUX 1. Modern solutions good for the people, planet and profit 2. Design the most technologically advanced copper mine possible 3. Minimize negative impacts while maximizing positive social impacts 4. Lowest carbon footprint, greenest mine possible; maximize green energy solutions 5. Maximize local
Slide 44: Los Azules Development to Use Digital Twinning
MUX Los Azules Development to Use Digital Twinning • Project team will optimize results using digital twinning, an integrated dynamic simulation model for mine and processing plant facilities based on Andritz Automation’s IDEAS software https://www.andritz.com/products-en/group/automation/simulation
Slide 45: Digital Twinning Will Speed Up the Advancement of the PFS
MUX Digital Twinning Will Speed Up the Advancement of the PFS The digital twin simulation will improve project-related processes and engineering analysis. Anticipated Benefits - Dynamic scenario analysis for consideration of project alternatives and optimization - Integrated mine to mill analysis -
Slide 46: Incentive Cost Curve for Unapproved Copper Projects
MUX 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 Incentive Cost Curve for Unapproved Copper Projects 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 47: MUX: Reserves & Resources
MUX MUX: Reserves & Resources Mineral Resources Source: Company disclosures to January 26, 2022. Note: Mineral Resources inclusive of Mineral Reserves (where applicable). Attributable Gold Resources Measured Indicated Measured + Indicated Inferred 43-101 Au Resources Tonnes (millions) Grams per tonn
Slide 48: MUX: Reserves & 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) Grams
Slide 49: 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 standardized mean