Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — 2024 Energy Transition Metals Summit
29 slides from Mcewen's conference presentation, April 2024
Slide 1: The Difference
The Difference 2024 Energy Transition Metals Summit April 29-30, 2024
Slide 2: Cautionary Statement
Cautionary Statement This presentation and the information included herein do not constitute an offer to buy or the The technical contents of this presentation, including reserves, have been reviewed and solicitation of an offer to subscribe for or to buy any of the securities described herein, nor
Slide 3: MUX's Portfolio: Gold, Silver, Copper
MUX's Portfolio: Gold, Silver, Copper Elder Creek Fox Mine Complex Nevada Timmins, Canada Gold Bar Mine Nevada Fenix Project Mexico McEwen Mining Gold Gold & Silver Los Azules Argentina San José Mine McEwen Copper Argentina (49%) Copper
Slide 4: MUX Escaping Hell
MUX Escaping Hell $25 $20 Cost of Missing Guidance $15 Road to Redemption $10 $5 Sep 2018 – Aug 2022 Sep 2022 – Present $0 Nov-2018 Mar-2019 Jul-2019 Nov-2019 Mar-2020 Jul-2020 Nov-2020 Mar-2021 Jul-2021 Nov-2021 Mar-2022 Jul-2022 Nov-2022 Mar-2023 Jul-2023 Nov-2023 Mar-2024 Source: Bloomberg. Chart
Slide 5: MUX Trading at a Big Discount Based on The Sum of Its Parts
MUX Trading at a Big Discount Based on The Sum of Its Parts @ April 26, 2024 Range of Estimated Value Per MUX Share1 MUX’s Assets Low Mid High McEwen Los $4.903 $7.734 $24.525 Copper (48%)2 Azules Royalty Portfolio $0.716 $0.716 $0.716 Current Gold & Silver $4.388 $9.117 $13.849 Share Price Total $9
Slide 6: Value Drivers for MUX
2 Value Drivers for MUX Gold & Copper Silver 3 Producing Mines 1 Restart
Slide 7: Los Azules Amongst the World's Largest Copper Deposits
Los Azules Amongst the World´s Largest Copper Deposits Chile & Peru Produce 40% of World’s Annual Copper Production Rank* PERU Legend Antamina Teck 6 MINE Las Bambas MMG 8 DEVELOPMENT Antapaccay Glencore Cerro Verde Freeport-McMoRan 5 Taca Taca First Quantum Josemaria Lundin Mining Escondida BHP/Rio
Slide 8: McEwen Copper's Los Azules 2023 Mineral Resource Increase Vs. 2017 Study
MUX’s Copper Unicorn McEwen Copper’s Los Azules 2023 Mineral Resource Increase Vs. 2017 Study Los Azules 2023 Mineral Resources Estimate Tonnes Avg Cu Grade Contained Metal Indicated 1.2 B 0.40% 10.94 B lbs Cu Inferred 4.5 B 0.31% 26.70 B lbs Cu The 2023 PEA added 51 drillholes for 21,777 m to the d
Slide 9: Los Azules Copper Is Equivalent to a Giant Gold Deposit
Los Azules Copper Is Equivalent to a Giant Gold Deposit1 Using prices2 of $2,319/ oz gold & $4.57 / lb copper Value of 1 oz gold = 513 lbs copper Copper Gold Equivalent 37.6 Billion lbs Total Resources 74 Million oz 321 Million lbs3 Avg Annual Production 632,000 oz $1.07/ lb Production Cash Costs $5
Slide 10: Los Azules Is BIG!
Los Azules Is BIG! World’s 8th Largest Undeveloped Copper Project (based on the 2017 PEA resource estimate, significantly expanded since then) Project Country Majority Owner Development Status Geology 1 Pebble United States Northern Dynasty Minerals Preliminary Economic Assessment Porphyry, Supergen
Slide 11: Key Strategic Partners/Shareholders
Key Strategic Partners/Shareholders World’s 2nd largest mining company World’s 4th largest automaker 14.5% ownership in McEwen Copper through Nuton 19.4% ownership in McEwen Copper from US$275 M total investment US$65 M total investment Extensive expertise throughout the mining value chain
Slide 12: McEwen Copper's Growing Impact on MUX Share Value
McEwen Copper’s Growing Impact on MUX Share Value 3 Private Financings Raised $397 M 2 Large Shareholders – Rio Tinto (Nuton Ventures) & Stellantis McEwen Copper MUX Amount Share Price Market Value Ownership (%) Value ($) Value/ Share Aug 2022 $82 M $10 $256 M 68.1% $175 M $3.54 $30 M Feb 2023 $19 $
Slide 13: MUX Powering off the Bottom
MUX Powering off the Bottom 350 % Investments in Los Azules 2023 Investments in 2023 EPS $1.15 MUX +313% 300 McEwen Copper McEwen Copper PEA published Gold operations Stellantis ARS $30 B Stellantis ARS $42 B production met Nuton - Rio Tinto $30 M Nuton - Rio Tinto $10 M guidance 250 McEwen Copper c
Slide 14: McEwen Copper Ownership
McEwen Copper Ownership Stellantis 19.4% Nuton/ MUX 30.9 M 47.7% Rio Tinto Venture Total Shares Outstanding 14.5% Rob McEwen 12.9% Victor Smorgon Group (Australia) Others 3.2% 2.3% MUX Stellantis
Slide 15: Two Value Reference Points, US $485 M and $2.4 B
Two Value Reference Points, US $485 M and $2.4 B Los Azules: Same Province, Lower Altitude, Larger Resource, Higher Grade, Closer to Infrastructure, Lower Cost - McEwen Copper's implied market cap US$800 M, based on the Oct 11, 2023 financing Comparison of Los Azules With Filo Mining's Filo del Sol
Slide 16: Los Azules 2024 Cu Recovery Update
Los Azules 2024 Cu Recovery Update PEA Base Case Updated Base Case Project Metrics 175 KTPA Cu (+3.2% Cu recovery)* △ Jun 2023 Feb 2024 Mine Life 27 yrs 27 yrs Strip Ratio 1.16 1.16 Copper Production – Cathode 3,938 Ktonnes 4,110 Ktonnes +172 kt Initial Capital Cost $2,462 Million $2,462 Million Sus
Slide 17: A New Model for Mining
Perkins&Will A New Model for Mining
Slide 18: Perkins&Will
4 aL > 3 ie. ~ Perkins&Will ¥ ene OZgZ i fag f
Slide 19: Los Azules Design vs Comparably Sized Conventional Copper Mine
Los Azules Design vs Comparably Sized Conventional Copper Mine Low Cost / lb1 25% 50% 75% Energy $6.00 C1 Cash Cost (US$/lb CuEq) $5.00 Los Azules Powered by 100% renewable energy $4.00 to be in the bottom quartile $3.00 of the cost curve Water Consumption US$1.07/ lb Cu $2.00 (2023 PEA Base Case) L
Slide 20: McEwen Copper Los Azules Management Team
McEwen Copper Los Azules Management Team - Deep Experience Plus a Track Record of Success In San Juan Province Over 220 years combined experience at top tier mining projects & operations in San Juan, Argentina, with major mining companies such as:
Slide 21: McEwen Copper Contractors
McEwen Copper Contractors Project Study Managers Consulting Engineers Drilling Hydrogeology Camp Logistics Lab Assays Drilling Construction Road Construction Lab Assays Drilling Cleaning and Safety Lab Assays Drilling Marketing Road Construction Drilling Drilling Truck Rental
Slide 22: Los Azules - Exploration Suggests It Could Get Bigger
Los Azules - Exploration Suggests It Could Get Bigger Exploration Hole AZ22174: 0.29% Cu over 1,052 m incl. 0.42% Cu over 480 m coincides with a prominent deep geophysical anomaly. Exploration hole AZ23241: over 400 m to the north of deep hole AZ22174 encountered 202 m grading 0.20% Cu and the last
Slide 23: Fully Aligned With Shareholders
Fully Aligned With Shareholders CEO’s Financial Commitment $220 M Investment 1 17% Ownership $1/Yr Salary MUX Shares Ownership Distribution Top 10 Holders Outstanding : 49.4 M Rob McEwen 8.2 M Rob Van Eck Associates 2.0 M Fully Diluted : 52.6 M McEwen 17% Mirae Asset Global 1.1 M Polunin Capital 0.7
Slide 24: MUX Financial Picture Improving Significantly
MUX Financial Picture Improving Significantly Working Capital Less Debt Equity Financings Bottom Line Production Increasing Strengthening $16.1 M flow-through Operational working capital balance sheet in 2023 for Fox improvements exploration & development 2024 Guidance 130-145 K GEOs Q4 2023 Q4 2023
Slide 25: MUX Resources & Reserves
MUX Resources & Reserves Proven & Probable Measured & Indicated Inferred Tonnes Au Grade Contained Au Tonnes Au Grade Contained Au Tonnes Au Grade Contained Au Gold (000s) (g/t) (000s oz) (000s) (g/t) (000s oz) (000s) (g/t) (000s oz) Gold Bar 4,944 1.03 164 3,361 0.75 81 643 1.23 25 Fox Complex - -
Slide 26: MUX Mines Costs / oz
MUX Mines Costs / oz Gold Bar Mine Fox Complex 2500 2000 2000 AISC AISC 1500 $1,450-1,550 $1,650-1,750 1500 Cash Costs Cash Costs 1000 $1,225-1,325 1000 $1,450-1,550 500 500 0 0 2020 2021 2022 9M 2023 2024 Guidance 2020 2021 2022 9M 2023 2024 Guidance Cash Costs AISC Cash Costs AISC San José (49% Ow
Slide 27: MUX Consolidated Annual Production
MUX Consolidated Annual Production Thousand GEOs 200 176 174 155 152 154 155 150 146 130-145 139 138 133 115 105 100 50 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Guidance
Slide 28: MUX: Cautionary Note Regarding NON-GAAP Measures
MUX: Cautionary Note Regarding NON-GAAP Measures In this presentation, we have provided information prepared or calculated according to Earnings from Mining Operations U.S. GAAP, as well as provided some non-U.S. GAAP ("non-GAAP") performance measures. Because the non-GAAP performance measures do no
Slide 29: Thank you!
NYSE & TSX Thank you! Stefan Spears Michael Meding Vice President Corporate Development Vice President and General Manager McEwen Mining McEwen Copper Direct: (647) 408-1849 Direct: (775) 375-7125 Email: stefan@mcewenmining.com Email: mmeding@mcewenmining.com