Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Investor Presentation (January 2025)
34 slides from Mcewen's investor presentation, Jan 15, 2025
Slide 1: Gold & Silver Production Plus Huge Copper Option
Gold & Silver Production Plus Huge Copper Option Corporate Presentation January 2025
Slide 2: Cautionary Statement
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, sol
Slide 3: CEO Rob McEwen Is Very Aligned Financially With Shareholders' Interest
$225M 16% $1/Yr Large Investment 1 High Ownership Low Salary Rob McEwen 16% Institutional 30% Retail 54% 1 - Rob McEwen’s investments: $140 million in McEwen Mining shares and $40 million in debt (Aug 13, 2018 & Apr 5, 2022 press releases), plus $45 million in McEwen Copper shares 2 - Average Daily
Slide 4: Time to Consider Rotating Into Commodities
0 2 4 6 8 10 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Time to Consider Rotating Into Commodities 40-Year History S&P GS Commodity Index vs S&P 500 Today, Commodities Are Cheap, Relative to Equities Market Timing Tech Bubble Current Period Commodities Expensive vs Equities Commodit
Slide 5: Looming Copper Supply Deficit
Looming Copper Supply Deficit Annual Mine Production Plus Recycled Insufficient to Meet Forecast Demand to 2035 More Mines or Higher Price? Source: BHP, https://www.bhp.com/news/bhp-insights/2024/09/how-copper-will-shape-our-future. Mtpa = million tons per annum Primary copper supply and demand, MTP
Slide 6: Are We Approaching Again the Time When 1 to 2 Gold Ounces Buy the Dow?
# of Gold Ounces To Buy The Dow 0 5 10 15 20 25 30 35 40 45 129 Years of History Are We Approaching Again the Time When 1 to 2 Gold Ounces Buy the Dow? 1896 1920 1940 1960 1980 2000 2020 16 oz Jan 8, 2025 1 oz Jan 18, 1980 Source: Bloomberg. As of January 8, 2025. 2 oz Jul 8, 1932 1 oz Aug 7, 1896 4
Slide 7: Producers vs Explorers: Oversized Returns During Gold Manias
Illustration of Oversized Returns During Gold Manias, Consider Your Risk Tolerance Producers vs Explorers Producers Explorers 1979 - 1980 290% 2,300% 1981 - 1983 72% 4,080% 1995 - 1996 211% 3,873% 2015 - 2016 62% 107% Is A Repeat Possible?
Slide 8: Rob McEwen Bought 1/3 of US Gold August 2005 and Merged with Minera Andes
$0 $20 $40 $60 $80 $100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Rob McEwen Bought 1/3 of US Gold August 2005 and Merged with Minera Andes to Establish McEwen Mining in January 2012 Source: Bloomberg. Chart from August 2005 to January 8
Slide 9: MUX Outperforming, Driven by Copper
-50 0 50 100 150 200 250 300 350 Sep-2022 Dec-2022 Mar-2023 Jun-2023 Sep-2023 Dec-2023 Mar-2024 Jun-2024 Sep-2024 Dec-2024 MUX GDX GDXJ Nasdaq Gold Silver Copper Dow % Source: Bloomberg. Chart from September 1, 2022 (MUX $2.97) to January 8, 2025 (MUX $8.34). Investments in McEwen Copper Stellantis
Slide 10: MUX: More Value to Surface, Sum of Its Parts
MUX: More Value to Surface Management’s Estimate of Value. Sum of Its Parts. MUX’s Assets Range of Estimated $US Value per MUX Share1 Low Mid High McEwen Copper (46.4%)2 Los Azules $8.64 3 $13.04 4 $29.48 5 Royalty Portfolio $0.66 6 $0.66 6 $0.66 6 Gold & Silver7 $5.43 8 $11.06 9 $16.69 10 Current S
Slide 11: Los Azules in a Prolific Copper Region
Los Azules – In A Prolific Copper Region, Amongst Some of the World´s Largest Copper Deposits *Rank based on 2021 top 20 largest copper mines in the world by production capacity. https://elements.visualcapitalist.com/the-largest-copper-mines-in-the-world-by-capacity/ Taca Taca First Quantum MARA Gle
Slide 12: McEwen Copper's Los Azules Project
MUX’s Biggest Value Driver, for the Moment! McEwen Copper’s Los Azules Project Los Azules 2023 PEA Mineral Resources Estimate Tonnes Avg Cu Grade Contained Metal Indicated 1.2 B 0.40% 10.9 B lbs Cu Inferred 4.5 B 0.31% 26.7 B lbs Cu Since the 2023 PEA resource estimate was released, over 100,000 met
Slide 13: World's 8th Largest Undeveloped Copper Project
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 Study Porphyry 3 La Granja Peru Rio Tinto Advanced Exploration Porphyry 4 Kerr-Sulphu
Slide 14: McEwen Copper's Growing Impact on MUX Share Value
McEwen Copper MUX Amount Share Price Market Value Ownership Value Value/Share Aug 2022 $82 M $10 $256 M 68.1% $175 M $3.54 Feb 2023 $30 M $19 $550 M 51.9% $285 M $5.69 ARS $30 B1 Oct 2023 $10 M $26 $800 M 47.7% $382 M $7.73 ARS $42 B2 Oct 2024 $56 M $30 $984 M 46.4% $457 M $8.64 Private Financings:
Slide 15: McEwen Copper Ownership: Private, Pre-IPO, Global Players
McEwen Copper - 32.8 M Shares Outstanding Ownership: Private, Pre-IPO, Global Players World’s 4th Largest Auto Manufacturer Subsidiary of World’s 2nd Largest Mining Company Founder of Goldcorp Inc. Grew Market Cap From $50 Million to $8 Billion McEwen Mining (MUX) 46.4% Stellantis 18.3% Nuton/ Rio T
Slide 16: Reasons Why McEwen Copper's Proposed Future IPO Could Be Attractive
Reasons Why McEwen Copper’s Proposed Future IPO Could Be Attractive & Benefit MUX’s Share Price 1. Argentina elected a pro-business President 2. July 8, 2024 - Large Foreign Investment Incentive Regime Approved – Increases Los Azules NPV very significantly 3. July 29, 2024 - The World’s Largest Mine
Slide 17: RIGI Large Investment Incentive Regime Encouraging Foreign Investment in Argentina
The RIGI fiscal and financial/ tax benefits will result in a significant improvement to Los Azules NPV & IRR • Designed to attract foreign investment across multiple sectors in Argentina • RIGI includes mining, which is a key pillar to the country’s plans for economic growth • Key benefits: Large In
Slide 18: BHP & Lundin Mining JV Josemaria & Filo del Sol
July 29, 2024, BHP & Lundin Mining JV Josemaria & Filo Del Sol, Combined Value $4.5 Billion In the Same Province, San Juan, Argentina Comparison1 of Los Azules with Josemaria & Filo del Sol (BHP/Lundin) Copper Resources & Grades2 Distance From Power Grid, Roads Altitude MASL $ C1 Cash Costs Developm
Slide 19: Exploration Potential at Los Azules
4000 Elev N S Legend: 2023 PEA base case mineable pit shell Total resources unconstrained pit shell 2500 Elev AZ22174 (1,128m) AZ23241 (740m) 3000 Elev 3500 Elev 400 m AZ24338 AZ24336CC AZ24339CC 500 meters 600 m 0.20% Cu / 202m 0.31% Cu / 70 m 0.21% Cu / 276.3 m 0.23% Cu / 180 m 0.29% Cu / 1052 m I
Slide 20: Exploration 3 km Away from Los Azules
One drill hole was completed last season and intercepted 106 meters of 0.11% Cu at the end of the hole (blue square). Early Exploration Results Suggest 5 key elements of a large porphyry system have been identified at Tango: 1. Multiple Intrusives 2. Porphyry Copper Alteration 3. Porphyry Copper Vei
Slide 21: McEwen Copper Is Planning the World's 1st Regenerative Copper Mine
Reason #5 McEwen Copper Is Planning the World’s 1st Regenerative Copper Mine in Argentina 21 Watch the video here: https://youtu.be/stHfWgQpftc
Slide 22: Los Azules' Design vs. Comparably Sized Conventional Copper Mines
Los Azules’ Design vs. Comparably Sized Conventional Copper Mines - $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 C1 Cash Cost (US$/lb CuEq) 2023E Copper Production (Mlbs) 25% 50% 75% Los Azules to be in the bottom quartile of the cost curve US$1.0
Slide 23: McEwen Copper's Los Azules Management Team
Over 250 years’ combined experience at top tier mining projects & operations in San Juan, Argentina, with major mining companies such as: McEwen Copper’s Los Azules Management Team Deep Experience Plus a Track Record of Success in the San Juan Province
Slide 24: Copper Heap Leach Mining Is Not New and Works at High Altitudes
Copper Heap Leach Mining Is Not New and Works at High Altitudes Mine Country Operator When Max. Annual Cu Production* (tonnes) MASL Quebrada Blanca (QB1) Chile Teck 1994-2023 87,000 4,400 m Spence Chile BHP 2006-present 249,000 1,700 m Lomas Bayas Chile Glencore 1998-present 72,700 1,200 m El Abra C
Slide 25: Los Azules: Equivalent to a Magnificent Gold Deposit
Los Azules: Equivalent to a Magnificent Gold Deposit1 Long Life, Large Production, Low Cost/ oz $2.5 Billion Initial Capex 3 Years Payback Period 27 Years Mine Life (mining only 1/3 of the resource) $2.9 Billion After Tax NPV (8%) 22 % IRR This disclosure should not be taken to modify or update the
Slide 26: MUX's Mines & Development Projects
MUX MUX’s Mines & Development Projects Gold, Silver & Copper in Prolific Mineral-Rich Regions Fox Mine Complex Timmins, Canada (100%) San José Mine Argentina (49%) Los Azules Argentina El Gallo – Fenix Project Mexico (100%) Gold Bar Mine Nevada (100%) Elder Creek Nevada Diversified
Slide 27: McEwen Mining: Stronger Financial Picture
McEwen Mining: Stronger Financial Picture M = Millions. GEOs = gold equivalent ounces. 2025 2024 2023 2022 Cash Q3: $29.2 M $23.0 M $1.2 M Debt Q3: $40.0 M $40.0 M $65.0 M Bottom Line Net income $54.7 M $1.15 / share Net loss $81.1 M $1.71 / share Production 120,000 – 140,000 GEO Guidance 135,900 GE
Slide 28: MUX Gold, Silver & Copper Resources
MUX Gold, Silver & Copper Resources Proven & Probable Measured & Indicated Inferred Gold Tonnes (million) Au Grade (g/t) Contained Au (oz) Tonnes (million) Au Grade (g/t) Contained Au (oz) Tonnes (million) Au Grade (g/t) Contained Au (oz) Fox Complex 13.9 4.20 1,877,000 4.7 3.61 551,000 Gold Bar 4.9
Slide 29: MUX Mines: Focusing on Decreasing Costs / oz
$0 $500 $1,000 $1,500 $2,000 $2,500 2020 2021 2022 2023 2024 Guidance Gold Bar Mine Cash Costs AISC $0 $500 $1,000 $1,500 $2,000 2020 2021 2022 2023 2024 Guidance Fox Complex Cash Costs AISC $0 $500 $1,000 $1,500 $2,000 2020 2021 2022 2023 2024 Guidance San José (49% Owned) Cash Costs AISC MUX Mines
Slide 30: MUX Consolidated Annual Production – Future Growth
105 139 138 155 146 152 176 174 115 154 133 155 145 135 200 0 50 100 150 200 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 MUX Consolidated Annual Production – Future Growth Thousand GEOs 1 - 2024 Guidance 130,000 – 145,000 GEOs. 2 - 2025 Projection. 3 - 2028 Projection
Slide 31: Winning Requires Superior Technology
Winning Requires Superior Technology Increase Share Value By driving Los Azules to production By Turning around gold operations Raised $450 Million Privately for McEwen Copper Attracted 2 global players – Rio Tinto & Stellantis Increased gold production, reduced cost / oz Exploration extending mine
Slide 32: Reasons to Buy MUX & McEwen Copper!
Reasons to Buy MUX & McEwen Copper! 1. Two Key Value Drivers: Precious Metals & Copper 2. Massive Copper Option – Pre-IPO 3. Gold & Silver Operations Growing 4. Exploration Upside at All Sites 5. Undervalued
Slide 33: NON-GAAP Measures
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 meaning prescribed by U.S. GAAP, they m
Slide 34: Thank you!
Thank you! Stefan Spears Vice President Corporate Development McEwen Mining Direct: (647) 408-1849 Email: stefan@mcewenmining.com Michael Meding Vice President and General Manager McEwen Copper Direct: (775) 375-7125 Email: mmeding@mcewenmining.com