Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — BMO Global Metals, Mining & Critical Minerals Conference 2023
24 slides from Mcewen's conference presentation, Feb 28, 2023
Slide 1: Turbo-Charged by Copper
BMO Global Metals, Mining & Critical Minerals Conference Feb 2023 Turbo - Charged by Copper Increasing Au & Ag Production Decreasing Cost /oz Reduced Debt
Slide 2: 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 3: 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 4: Full Disclosure: CEO's Financial Commitment
MUX Full Disclosure CEO’s Financial Commitment $ 220 M 17.3 % $1/ Y r Investment 1 Ownership Salary Rob McEwen 17% Institutional 21% Retail 62% 1 - Rob McEwen’s investments: $1 40 million in McEwen Mining shares and $ 40 million (Aug 13, 2018 & Apr 5, 2022 press releases) , plus $40 million in McEwe
Slide 5: The Sun Is Starting to Shine Again!
MUX 0 5 10 15 20 25 2018 2019 2020 2021 2022 2023 Last Price SMAVG (50) SMAVG (100) SMAVG (200) The Sun Is Starting to Shine Again! After 3 Horrible Years Up 95% in Past 5 Months With Still a Lot of Room on Upside Share Price US$ As of Feb 23, 2023. Source: Bloomberg.
Slide 6: Stellantis Closes Investment in McEwen Copper; Nuton to Invest Additional US$30 Million
MUX McEwen Mining Feb 27, 2023 Stellantis Closes ARS * $30 Billion Investment in McEwen Copper Nuton , a Rio Tinto Venture, to Invest Additional US$30 Million MUX 51.9% Stellantis 14.2% Nuton / Rio Tinto Venture 14.2% Rob McEwen 13.8% Victor Smorgon Group (Australia) 3.5% Others 2.4% Post Investment
Slide 7: Selected Proforma Financial Information Post Purchases of McEwen Copper
MUX Selected Proforma Financial Information Post Purchases of McEwen Copper by Stellantis & Nuton , a Rio Tinto Venture Impact on MUX Stronger Balance Sheet Reduced Debt by 38% Increased Value of McEwen Copper (Implied) Ownership of McEwen Copper reduced Value of Ownership Increased by 80% from $65M
Slide 8: We Believe MUX's Share Value Is US$7 to $28
MUX We Believe MUX’s Share Value Is: US $7 to $28 Share Price $5.63 February 23, 2023 Based on recent market valuations / transactions Between Current
Slide 9: Possible Share Value of MUX: Sum of the Parts
MUX Possible Share Value of MUX Sum of the Parts MUX’s Assets Value Range Per MUX Share 1 Low High McEwen Copper Los Azules 2 $2.47 3 $18.93 4 Elder Creek 2 $0.31 5 $0.31 5 Royalty Portfolio $0.69 6 $0.69 6 Gold & Silver $4.21 7 $8.43 8 $7.68 $28.36 Notes 1. McEwen Mining has 51 million fully dilute
Slide 10: Los Azules – Amongst the World's Largest
MUX CHILE ARGENTINA Los Pelambres Antofagasta Andina Codelco Los Bronces Anglo American MINE DEVELOPMENT Antamina Teck Las Bambas MMG Antapaccay Glencore Cerro Verde Freeport - McMoRan PERU Escondida BHP/Rio Tinto Taca Taca First Quantum Lindero Fortuna Silver MARA Yamana Glencore & Newmont Josemari
Slide 11: Los Azules: World's 9th Largest Undeveloped Copper Project
MUX Project Country Majority Owner Development Status Geology 1 Pebble United States Northern Dynasty Minerals Preliminary Economic Assessment Porphyry, Supergene Copper 2 Resolution United States Rio Tinto Feasibility Porphyry 3 La Granja Peru Rio Tinto Advanced Exploration Porphyry 4 Kerr - Sulphu
Slide 12: Highlights of the 2017 Los Azules PEA
MUX Highlights of the 2017 Los Azules PEA 1 (Hatch Engineering) Robust Economics @ $3.00 / lb Cu Average Annual P roduction 1 st 13 Years 415 Million lbs Cu at $1.14/lb cash cost Mine Life 36 years Initial Capex $2.4 Billion Base Case Cu Price $3.00/lb Payback 3.6 years After - Tax IRR 20.1% After -
Slide 13: Los Azules Low Cost: Lowest Cost Quartile
MUX Tenke Phase 3 Cumulative Production (Paid kt Cu) Los Azules Low Cost! Lowest Cost Quartile Pebble El Abra Mill Al Arco Galore Creek Los Azules Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Kamoa - Kakula Resolution Kansanshi Sulphide Ann Mason Los Helados Ajax Cuajone Kerr - Sulphu
Slide 14: Los Azules: It's Valuable
MUX Los Azules It’s Valuable Between 2 Value Reference Points, US$485M - $1.86B McEwen Copper's implied market cap US$550M, based on financing announced on Feb 27, 2023 Comparison of Los Azules with Filo Mining's Josemaria & Filo del Sol Distance From Power Grid, Roads $ M&I Inferred Josemaria 7.4 B
Slide 15: Elder Creek Project, Nevada
Elder Creek Project, Nevada Classic Porphyry Copper – Gold Signature Recently Optioned to Rio Tinto’s Subsidiary Kennecott Exploration Company for US$18 M to earn 60% interest MUX Tonkin MUX Gold Bar Cortez Marigold Ruby Hill Cortez Pipeline Gold Rush Discovery 0 N Nevada Gold's largest Gold Mine Lo
Slide 16: McEwen Copper Ownership
MUX McEwen Copper Ownership MUX 51.9 % Stellantis 14.2% Nuton / Rio Tinto Venture 14.2% Rob McEwen 13.8% Victor Smorgon Group (Australia) 3.5% Others 2.4% MUX • Total Shares Outstanding 28.9 M • McEwen Copper owns 100% of Los Azules and Elder Creek copper projects • Elder Creek was optioned by Kenne
Slide 17: Vision for Los Azules
MUX VISION for Los Azules To build a mine for the future based on regenerative principles and innovative technologies, that can achieve net - zero carbon emissions by 2038 ! We are committed to delivering green copper to Argentina and the world, a product that will contribute to the electrification
Slide 18: MUX Properties: Asset Rich in Prime Real Estate
MUX MUX Properties Asset Rich in Prime Real Estate 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 %)
Slide 19: MUX Production
MUX MUX Production 1. 'Gold Equivalent Ounces' is calculated based on 85:1 gold to silver price ratio. 2021A 2022 2023 Guidance Gold Bar Mine, Nevada GEOs 43,900 26,619A 42,000 - 48,000 Cash Costs / GEOs $1,687 $1,550E $1,400 AISC / GEOs $1,753 $1,850E $1,680 Fox Complex, Canada GEOs 30,000 36,652A
Slide 20: Fox Complex – Timmins – Another Great Address
MUX Fox Stock Mine/Mill (0.1M oz) N Fox West (2.2M oz) Fault Zone Mine or Deposit Temiskaming Sediments Historic Production Fox Complex Ontario, Canada Fox East Froome Grey Fox Black Fox ( 1.0 M oz) Timmins Fox Complex - Timmins - Another Great Address • 70 million oz historic production in the Timm
Slide 21: Growth Potential @ Fox
MUX Growth Potential @ Fox Longer Mine Life, Higher Production, Lower Costs / oz Financial & Operating Metrics Post Froome Production (After - Tax): Life of Mine (LoM) 9.3 years LoM Gold Production 751,700 oz Average Annual Gold Production - LoM 80,800 oz Average Cash Costs per oz. - LoM $769 Averag
Slide 22: San José Mine
MUX San José Mine N 2021 Production 5 270,000 oz Au 20 k m Newmont Cerro Negro Mine 12 miles San José Argentina San José Mine ▪ Narrow Vein Underground Silver / Gold Mine ▪ Large Property Package ▪ Good Grade Mine ▪ Surrounds Newmont’s Cerro Negro Reserve Grade 1 342 gpt Silver 5.7 gpt Gold Mine Lif
Slide 23: Gold Bar – Premier Address
MUX Gold Bar – Premier Address 1 . Includes past production and current resources Gold Bar Nevada, USA On Trend - Similar Geology Criteria Cortez & Gold Bar Large footprint, shallow oxide gold x Host rock, alteration, mineralization style x Major faults, structural traps x Intrusions x MUX Property
Slide 24: Ways to Get Exposure: Buy MUX or Wait for McEwen Copper IPO
MUX There are 2 ways to get exposure to: Buy MUX today & get +150,000 oz AuEq / yr as a bonus or Wait for McEwen Copper IPO LOS AZULES, one of the world’s largest undeveloped copper projects 1. 2.
McEwen Mining — BMO Global Metals, Mining & Critical Minerals Conference 2023 on 6ix