Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Investor Presentation (July 2021)
24 slides from Mcewen's investor presentation, July 2021
Slide 1: Launch Presentation: Los Azules Project
Launch Presentation Los Azules Project San Juan, Argentina July 2021
Slide 2: Cautionary Statement
Cautionary Statement This presentation and the information included herein do not information or events after the date hereof, except as required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, the Quarterly constitute an offer to buy or the solici
Slide 3: Formation of a New Copper Developer
Formation of a New Copper Developer Fox Mine Complex Timmins (100%) l Owns 2 copper projects Gold Bar Mine l 100% of the Los Azules Copper Elder Creek, Nevada (100%) Project. One of the world's largest Nevada (100%) undeveloped open pit copper • Cu-Au exploration Fenix Project porphyry deposits; and
Slide 4: Located in the Prolific Andes Copper Belt
Located in the Prolific Andes Copper Belt l Situated at 3,500 m elevation Mara(Alumbrera/Agua Rica) in the Andes Mountains, on the border with Chile l In a pro-mining jurisdiction, the Josemaria Province of San Juan, Argentina Filo del Sol – Filo Mining l Accessible by road, and within 20-months by
Slide 5: Los Azules: Preliminary Economic Assessment (PEA)
Los Azules: Preliminary Economic Assessment (PEA) Highlights of the 2017 Los Azules PEA1 (Hatch Engineering) Average annual production 1st 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%
Slide 6: NPV Sensitivity
Los Azules: NPV Sensitivity $6 Cu Price NPV8% Billions US$ $5 Au Price After-tax NPV8%1 $4 $3 Ag Price l $2.2B at $3.00/lb Grade copper $2 $1 CAPEX l $5.7B at $4.50/lb OPEX copper $0 $-1 OPEX - Mining $-2 OPEX - Process -50% -25% 100% +25% +50% $1.15 $2.25 $3.00 $3.75 $4.50 OPEX – G&A Change from Ba
Slide 7: IRR Sensitivity
Los Azules: IRR1 Sensitivity 35% 33.6% 29.8% 30% 25.1% After-tax IRR 25% 20.1% 20% 14.3% 15% 10% 7.2% 5% 0% $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Copper Price ($/lb) 1 Preliminary Economic Assessment (PEA) Oct 16, 2017 - “NI 43-101 Technical Report - Preliminary Economic Assessment Update for the Los
Slide 8: Life of Mine Cash Flow
Los Azules: Life of Mine Cash Flow1 (@ $3.00/lb Cu) 1,200 12,000 1,000 10,000 800 8,000 600 6,000 Cumulative Cash Flow($M) Annual Cash Flow ($M) 400 4,000 Cash Flow from Operations 200 2,000 - - Project CAPEX -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 (Initial + Phase 2) (200) (2,000) (4
Slide 9: Los Azules: Large Copper Resource
Los Azules: Large Copper Resource Ore Copper Gold Silver tonnes lbs oz oz Indicated 962 Million 10.2 Billion 1.7 Million 55.7 Million World class open pit 0.48% 0.06 g/t 1.8 g/t copper resource Inferred 2,666 Million 19.3 Billion 3.8 Million 135.4 Million 0.33% 0.04 g/t 1.6 g/t Indicated Inferred An
Slide 10: Los Azules Versus Other Large Scale Copper Developers
Los Azules Versus Other Large Scale Copper Developers Los Azules Rank Project Name (Ownership) Filo del Sol (100%) Josemaria (100%) Alpala (85%) (2) Vizcachitas (100%) Los Azules (100%) Asset Information Country Argentina / Chile Argentina Ecuador Chile Argentina Stage PFS FS PEA PEA PEA F.D. ITM Ma
Slide 11: “Copper is the new oil” – Goldman Sachs
“Copper is the new oil” – Goldman Sachs l Demand for copper expected to increase from acceleration in green electrification trends. I. Electric Vehicles II. Solar Technology III. Wind Energy IV. Energy Storage l Copper producers are unprepared for surge in demand after price collapse in mid-2010s cu
Slide 12: “Long-term supply gap” – Goldman Sachs
“Long-term supply gap” – Goldman Sachs l Estimated 8.2 Mt shortfall by 2030 l Brownfield and greenfield mine projects needed to reduce the size of the supply gap. “The total listed global possible brownfield and greenfield copper projects currently amount to 14.5Mt, which means that close to 60% of
Slide 13: Required copper price for development projects
Required copper price (US$/t Cu) 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 New Prosperity Tenke Phase 3 Pebble El Abra Mill Al Arco Galore Creek Los Azules Q1 Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Spot Copper Price Kamoa-Kakula Resolutio
Slide 14: Executive Leadership Team
Executive Leadership Team Rob McEwen - Chairman and Chief Executive Officer Rob is the Chairman and Chief Owner of McEwen Mining Inc. (MUX). Rob owns 18% of MUX, his cost base is $165 million, and his salary is $1/yr. Rob is a passionate innovator, marketer and an avid recreational competitor. He is
Slide 15: Project Leadership Team
Project Leadership Team Ruben Wallin – Environment, Safety & Community Ruben is an environment and sustainability professional with more than 30 years’ of experience in the global mining industry. He has broad corporate and operational management experience in the areas of environment, health and sa
Slide 16: Los Azules: Infrastructure De-risking
Los Azules: Infrastructure De-risking Northern Access Road, Power transmission corridor Preliminary airstrip, will be Chile concentrate route is 98% a new 115 km low altitude all was defined alongside the constructed during the PFS to covered by existing routes year road will be constructed Northern
Slide 17: McEwen Copper: Anticipated Deliverables
McEwen Copper: Anticipated Deliverables l 53,000 m Resource and Reserve definition drill program l New road to provide year round access to the site l New airstrip to support efficient transport of personnel, food and other essential supplies to the work site l Prefeasibility Study (PFS) targeting P
Slide 18: Federal & Provincial Glacier Protection Laws
Los Azules: Federal & Provincial Glacier Protection Laws Potential Permafrost Distribution in the area of Los Azules The Los Azules Project has a facility and mine layout specifically planned with reference to permafrost and water bearing geoforms, and appears to comply with the Provincial & Federal
Slide 19: Los Azules: Tailings & Water Management
Los Azules: Tailings & Water Management Favorable project location using natural terrain to minimize footprint and water use The PEA tailings dam solution is configured to close-off the water catchment downstream from all upstream mining, processing, and waste rock and tailings storage, creating a r
Slide 20: Los Azules: Social Investment
Los Azules: Social Investment l Socio-economic impact assessment to be completed l Key stakeholders will be engaged to develop social investment plan l Areas of focus: I. Employment Local land user engagement Public consultation II. Education and skills training III. Local business development IV. I
Slide 21: Elder Creek Project, Nevada
Elder Creek Project, Nevada Lone Tree Elder Creek is a porphyry copper-gold exploration property located in northern Nevada, near the northern end of the Battle Mountain-Eureka Trend, one of Nevada’s prolific mineral belts. The project covers 9,600 acres. Marigold Several exploration and mining comp
Slide 22: Elder Creek Project, Nevada
Elder Creek Project, Nevada Airborne magnetics at Elder Creek document a classic porphyry system magnetic “donut” pattern which coincides with the outer limit of alteration that is known to contain pyrrhotite (a magnetic mineral). The cause of the central magnetic low could be non-magnetic intrusion
Slide 23: Contact Information
Contact Information For additional information: Rob McEwen Anna Ladd-Kruger Chairman and Chief Owner Chief Financial Officer McEwen Mining & McEwen Copper McEwen Mining & McEwen Copper rob@mcewenmining.com akruger@mcewenmining.com Tara Saratsiotis Stefan Spears Executive Assistant to Rob McEwen Vice
Slide 24: Appendix: Los Azules Mineral Resource Estimate
Appendix: Los Azules Mineral Resource Estimate Copper Resources Indicated Inferred Tonnes (millions) % Cu Contained Metal (million pounds) Tonnes (millions) % Cu Contained Metal (million pounds) 962.0 0.48 10,200 2,666.0 0.33 19,300 Gold Resources Indicated Inferred Tonnes (millions) Grams per tonne