Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — H.C. Wainwright Mining Conference 2021
37 slides from Mcewen's conference presentation, Dec 3, 2021
Slide 1: Reasons to Buy MUX
Reasons to Buy MUX 1. Surfacing Copper Value 2.Turnaround in Progress 3. Unique Insider Ownership All figures in US Dollars H.C. Wainwright Mining Conference Nov 30 - Dec 1, 2021
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: Surfacing Value: Los Azules Project, San Juan, Argentina
Surfacing Value Los Azules Project San Juan, Argentina
Slide 4: Surfacing Value for MUX
MUX Surfacing Value for MUX • 32.89 Billion lbs CuEq 1 • Pre - Money Value used for $80 M financing 2 : $175 M or $0.006 / lb CuEq • Post financing ownership: M - millions, B - billions. MUX shares outstanding: 459 M. 1. Total indicated & inferred resource estimation 2. Ongoing financin g Potential
Slide 5: Comparable Copper Project Acquisitions
MUX Target (Project) Buyer Location PA Date Cu Price @ PA Date Development Stage CuEq R&R Acquired (billion lbs) CuEq Grade % US$/ 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 6: McEwen Copper: Use of Funds
MUX McEwen Copper: Use of Funds Purpose: De - Risk & Build Value Advance Los Azules from a PEA stage to a Prefeasibility Study (PFS) Upgrade Resource Estimate: 44,000 m Definition Drilling + 9,000 m Geotechnical / Metallurgical Transform Access: Constructing a New Road to Provide Year - round Access
Slide 7: Project Leadership Team
MUX Project Leadership Team Ruben Wallin - Environment, Safety & Community Ruben is an environment and sustainability professional with more than 30 years experience in the global mining industry . He has broad corporate and operational management experience in the areas of environment, health and s
Slide 8: McEwen Team Member's Contribution to World's Large Copper Mines
MUX McEwen Team Member’s Contribution to World’s Large Copper Mines Copper Production 2020 (kt/Yr) Team Member Areas of Expertise Escondida Chile 1,185 Baha Abulnaga Slurry Management Morenci USA 445 Jim Sorensen Process Development & Engineering El Teniente Chile 443 Anca Naku Process Development C
Slide 9: Los Azules Earlier Stage Project that Ranks #1
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 Valedero 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 10: 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 11: A New Copper Developer Plan to IPO within months
MUX A New Copper Developer Plan to IPO within 12 months Owns 100% of Los Azules Los Azules is One of the world's largest undeveloped copper porphyry deposits Current private raise $60 - 80 M, with +$40 M already in the bank Los Azules San Juan, Argentina
Slide 12: Los Azules in the Prolific Andes Copper Belt
MUX LOS AZULES in the Prolific Andes Copper Belt Aldebaran 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 km 2 in Cu - Au prospective projects Lundin Mini
Slide 13: MUX: Diversified Growth Pipeline
MUX Black Fox Gold Bar El Gallo MUX: Diversified Growth Pipeline Gold, Silver, Copper Assets Gold 5 Development Projects Froome Grey Fox Stock Copper Los Azules Fenix Argentina Mexico Nevada Ontario 4 Mines Gold Gold & Silver Gold & Silver San Jose
Slide 14: Dream Team
MUX Dream Team Rob McEwen Chairman & Chief Owner Rob has $1/ year salary, has invested $165 million in McEwen Mining and owns 18% of the company’s outstanding shares. He is the founder of Goldcorp, was awarded the 2001 PDAC Developer of the Year, the Order of Canada, and was inducted into The Canadi
Slide 15: 2021 Highlights
MUX 2021 Highlights 1. Gold Equivalent Ounces (GEOs) are calculated based on a gold to silver price ratio of 73:1 for Q3 2021, 68:1 for Q1 and Q2 20 21, 94:1 for Q1 2020, 104:1 for Q2 2020, 79:1 for Q3 2020 and 75:1 for full year (FY) 2021 Production Guidance. Cash gross profit, cash costs per ounce
Slide 16: Improving Production and Costs
MUX IMPROVING Production and Costs Q3 & 9M 2021 Compared to Q3 & 9M 2020 2021 vs 2020 INCREASING Production (GEOs) (1) DECREASING Cash Costs ($/GEO) (2) DECREASING AISC ($/GEO) (2) Q3 9M Q3 9M Q3 9M Gold Bar Mine, Nevada +82% +54% - 2% - 10% - 9% - 21% Fox Complex, Canada +43% +26% - 27% - 23% - 13%
Slide 17: Improved Liquidity
MUX IMPROVED Liquidity Sep 30 th , 2021 vs Dec 31 st , 2020 (Millions of Dollars) Q3 2021 ended Sep 30 th , 2021 Q4 2020 ended Dec 31 st , 2020 Cash and cash equivalents 63.1 20.8 Liquid assets 72.7 25.9 Working capital 45.8 7.9 Debt principal 50.0 50.0
Slide 18: Improved Financial Results
MUX IMPROVED Financial Results Q3 & 9M 2021 Compared to Q3 & 9M 2020 2021 2020 Q3 9M Q3 9M Millions of Dollars Revenue 37.1 101.6 27.4 77.1 Cash gross profit (loss) 6.4 16.1 3.9 2.8 Gross profit (loss) 0.3 (0.6) (0.7) (13.3) Net loss (17.4) (35.9) (9.8) (128.8) Dollars Net loss per share (0.04) (0.0
Slide 19: Exploration Driving Production Growth & Mine Life
MUX Exploration Driving Production Growth & Mine Life Overview Fox Complex UG Drilling at Froome Focus at Stock Property on Surface Implications of Hole S21 - 202 Green Carbonate (CGR) Extension to FW Stock Mine Nevada Exploration Resource Expansion Drilling Resumes at Gold Bar Tonkin Drilling Encou
Slide 20: Fox Complex, Froome: Longer Intercepts, Shallower Depth
MUX Fox Complex, Froome: Longer intercepts, Shallower Depth than Black Fox Long Section Looking North U/G Definition & Delineation 94 Definition holes = 77 significant results 37 Delineation holes = 23 significant results 76% Success Rate! Q4 Expansion Potential Above 140L & Below 200L
Slide 21: 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 Stock East 200m envelope Next Discovery Near - Term S21 - 202 Froome
Slide 22: Fox Complex: Stock Exploration Surface
MUX Fox Complex: Stock Exploration Surface Stock West & Stock Main CGR Domain (COG 0.5g/t Au) Cog 0.5g/t Au S21 - 202 4.29 g/t Au / 23.8m incl. 4.83 g/t Au / 19.9m, 1.58 g/t Au / 13.9m X - Section looking NE Longitudinal Vertical Section Looking NW
Slide 23: 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 Northwest Possible Intrusion?
Slide 24: 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 3 - Yr Endowment Potential Ridge North Cabin North Connector Footwall Pick Southwest Cabin/Rojo Atlas Pit Target Area Exi
Slide 25: Gold Bar: Brownfields & Early Generation
MUX Gold Bar: Brownfields & Early Generation Rojo Cabin Fault Skull Scabs Gold Canyon Roberts Creek Corridor Wall Fault Corridor Pot Canyon Ridge Fault Confidence Level High Medium Lower Pot/Gold Canyon Rojo Ridge Skull/Scabs Cabin Fault Corridor Ridge Fault Corridor Pot/Gold Canyon 2022 Indicated R
Slide 26: Nevada Exploration: Tonkin - Rooster Mineralization
MUX Nevada Exploration Tonkin - Rooster Mineralization • Complex structural history • Both oxide and refractory mineralization • Cyanide solubility (FA_CN) ratios up to 85% • Understanding the complexity at Rooster is fundamental to realizing the far greater opportunity Tonkin may host ZŽŽƐƚĞƌKdžŝĚĞW
Slide 27: A CEO with a Financial Commitment
MUX A CEO with a Financial Commitment $ 205 M 18 % $1/ Y r Investment 1 Ownership Salary Rob McEwen 18% Institutional 27% Retail 55% 1 - Rob McEwen’s investments: $1 40 million in McEwen Mining shares and $25 million (Aug 13, 2018 press release) , plus $40 million in McEwen Copper shares. 2 - Averag
Slide 28: For additional information
MUX For additional information: Rob McEwen Chairman and Chief Owner McEwen Mining & McEwen Copper rob@mcewenmining.com Tara Saratsiotis Executive Assistant to Rob McEwen tsaratsiotis@mcewenmining.com (647) 258 - 0395 x230 Contact Information Anna Ladd - Kruger Chief Financial Officer McEwen Mining &
Slide 29: Appendix
MUX Appendix
Slide 30: Los Azules: Robust Preliminary Economics
MUX Los Azules : Robust Preliminary Economics 1 Preliminary Economic Assessment (PEA) Oct 16 , 2017 - “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina” (Hatch) . All project economic metrics are presented on a post - project approval basis
Slide 31: Los Azules: NPV Sensitivity
MUX Los Azules: NPV Sensitivity C hange from Base Case (%) Copper Price ($/ 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 $2.2
Slide 32: 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 33: Nevada Exploration: Tonkin - Rooster Mineralization
MUX Nevada Exploration Tonkin - Rooster Mineralization • Complex structural history • Both oxide and refractory mineralization • Cyanide solubility (FA_CN) ratios up to 85% • Near surface oxide model to be updated by year - end • Understanding the complexity at Rooster is fundamental to realizing th
Slide 34: Tonkin 2021 Drilling
MUX Tonkin 2021 Drilling Au PPM AuCN < 60% 0 1 2 3 3 2 1 AuCN > 60% 250 m Legacy Drill Holes Limestone Chert + Siltstone Siltstone Jasperoid N
Slide 35: MUX: Reserves & 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 36: 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) Gram
Slide 37: 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
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