Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Investor Presentation (September 2023)
37 slides from Mcewen's investor presentation, Sep 13, 2023
Slide 1: Gold & Silver Turnaround Story Plus: Large Exposure to Copper
Gold & Silver Turnaround Story Plus: Large Exposure to Copper McEwen Mining Corporate Presentation September 2023
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: 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
Slide 4: 2 Parts to the Story: Asset Rich Gold, Silver and Copper
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%) Fenix Project Mexico (100%) San José Argentina ( 49 %) Elder Creek Nevada Au + Ag (Ownership) Cu McEwen Copper (52%)
Slide 5: CEO's Large Financial Commitment
CEO’s Large Financial Commitment $ 220 M 17 % $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 McEwen Copper shares
Slide 6: MUX vs Gold, GDX & GDXJ
-100 -50 0 50 100 150 200 250 2009 2011 2013 2015 2017 2019 2021 2023 MUX Gold GDX GDXJ MUX vs Gold, GDX & GDXJ Reflects 10 for 1 Share Consolidation July 2022 Source: Bloomberg. As of Sept 6, 2023. GDXJ inception date Nov 11, 2009. % Gold +72% MUX - 74% GDX - 43% GDXJ - 66% $0 $50 $100 2005 2008 20
Slide 7: Our Gold & Silver Mines
Our Gold & Silver Mines • In prolific gold regions • Higher cost • Shorter mine lives But That’s Changing: • In the midst of a turnaround • Exploration is extending mine lives • Production is increasing & cost / oz decreasing Are Currently:
Slide 8: MUX Improving Picture
More Less Equity Higher Increasing Cash Debt Financings Cash Gross Profit Production Increasing working capital Strengthening balance sheet No MUX share issuance in 2023 Targeting cost efficiencies Operational improvements Q2 2023 Q2 2023 However H1 2023 H1 2023 H1 2023 $92.0 M $40.0 M McEwen Copper
Slide 9: 2023 Production & Cost Guidance
2023 Production & Cost Guidance GEO – gold equivalent ounces. 2023 production guidance – December 21, 2022 press release. Q1 2023 production – August 10, 2023 press release. Numbers may not add due to rounding. G old:silver ratios: 84:1 for Q1 2023, 83:1 for Q2 2023. Ounces Q1 2023 Q2 2023 H1 2023 2
Slide 10: MUX Outperforming Gold, Silver, Copper, DJIA & NASDAQ
-50 0 50 100 150 200 250 9/1/22 12/1/22 3/1/23 6/1/23 9/1/23 MUX GDX GDXJ Gold Copper Nasdaq Dow MUX Outperforming Gold, Silver, Copper, DJIA & NASDAQ Sep 1, 2022 – Sep 6, 2023 GDXJ +22% % MUX +140% GDX +23% Gold +13% Copper +10% Source: Bloomberg. As of Sep 6, 2023 Nasdaq +18% Dow +9% Stellantis AR
Slide 11: The Value We See in MUX: Sum of the Parts
MUX’s Assets Low Mid High McEwen Copper 2 Los Azules $4.94 3 $5.60 4 $21.27 5 Elder Creek Royalty Portfolio $0.69 6 $0.69 6 $0.69 6 Gold & Silver $4.10 8 $8.21 7 $12.30 9 $9.73 $14.50 $34.26 The Value We See in MUX Sum of the Parts @ Sep 6, 2023 Notes 1. McEwen Mining has 51M fully diluted shares 2.
Slide 12: Fox Complex, Timmins
Fox Stock Mine/Mill (0.1M oz) 6 miles 10 km 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 A Great Address • 70 million oz historic production in the Timmins Camp • >30 km of
Slide 13: Gold Bar, Nevada
Premier Address 1 . Includes past production and current resources Gold Bar Nevada, USA On Trend, in the Shadow of Major Gold Deposits MUX Property NGM Property Faults Mine or Deposit Legend 20 k m 12 miles N Cortez Nevada Gold Mines Cortez 50 M oz Au cluster 1 Four M ile Discovery Goldrush Gold Bar
Slide 14: San José Mine Surrounding Newmont's Cerro Negro
San José Mine N Newmont Cerro Negro Mine Production: 5 2022 278,000 oz Au 2023E 330,000 oz Au 2024E 350,000 oz Au 20 k m 12 miles San José Argentina ▪ Narrow Vein Underground Silver / Gold Mine ▪ Large Property Package ▪ Good Grade Mine Reserve Grade 1 341 g/t Silver 6.4 g/t Gold Mine Life 2 6 Years
Slide 15: Three Assets
1. Los Azules Project in San Juan, Argentina. Ranked 9 th largest undeveloped copper project by Mining Intelligence in 2022. 2. Early - stage Elder Creek Project in Nevada, USA, being explored by Rio Tinto. 3. Highly experienced in - country management, majorly with local top - tier companies throug
Slide 16: McEwen Copper Advancing Los Azules to Increase MUX Value
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 Stellantis • Total Shares Outstanding 28.9 M • Owns 100% of Los Azules and Elder Creek copper projects • Elder Creek was optioned by Kennecott Exploration Co, a subsidia
Slide 17: Los Azules: Amongst the World's Largest Copper Deposits
Chile & Peru Produce 40% of World’s Annual Copper Production *Rank based on 2021 top 20 largest copper mines in the world by production capacity. https://elements.visualcapitalist.com/th e - l argest - copper - mines - in - the - world - by - capacity/ CHILE ARGENTINA Los Pelambres Antofagasta Andin
Slide 18: World's 9th 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 Porphyry 3 La Granja Peru Rio Tinto Advanced Exploration Porphyry 4 Kerr - Sulphurets
Slide 19: 2022 & 2023 Highlights
2022 & 2023 Highlights Completed financing totaling $267 M , significant value accretion for McEwen Mining & McEwen Copper shareholders, well - financed through 2023 into 2024. Executed two comprehensive drilling campaigns from 2022 to 2023 totaling 53,427 meters. Filed the Environmental Impact Asse
Slide 20: PEA Highlights
PEA Highlights Reviewed several opportunities with strategic analysis based on NPV, IRR & payback Base Case 175,000 tonnes LME Grade A Cu cathode production/ yr Demonstration of Scalability 125,000 tonnes LME Grade A Cu cathode production/ yr Project defined as a Heap Leach facility using commercial
Slide 21: Backed by Key Strategic Partners
Backed by Key Strategic Partners Source: Company disclosure Partnerships with key industry players and strategic sponsors will de - risk Los Azules’ path forward x One of the world’s largest miners x 14.2% ownership in McEwen Copper through Nuton; US$55 M total investment x Extensive expertise throu
Slide 22: Value Reference Points: Comparison with Filo del Sol & Josemaria
2 Value Reference Points, US$485 M and $2.09 B McEwen Copper's implied market cap US$550 M, based on financing announced Feb 27, 2023 In Same San Juan Province, Argentina Comparison of Los Azules With Filo Mining's Filo del Sol & Lundin’s Josemaria Copper Resources & Grades 1 Distance From Power Gri
Slide 23: Los Azules Recent Exploration Results Suggest It Could Be Bigger
Los Azules Recent Exploration Results Suggests It Could Be Bigger Exploration H ole AZ22174: 3000 Elev 4000 Elev 500 meters The depth of hole AZ22174 is more than twice One World Trade Center (2 x 546m) Including 1.46% Cu/ 26m AZ22174 (1,128m ) 0.42% Cu/ 480m 0.29% Cu/ 1,052m 546m 2500 Elev 3500 Ele
Slide 24: Highly Experienced, Local Management Team
Highly Experienced, Local Management Team Partnered With a Track - record of Success Over 220 years combined experience at top tier mining projects & operations in San Juan, Argentina & in major mining companie s s uch as:
Slide 25: 2023/2024 Program - Next Steps Advancing to Feasibility Study
2023/2024 Program - Next Steps Advancing to Feasibility Study Drilling program slated at 45,000 meters in the 2023 - 2024 campaign 1 Upgrade Resource Model Complete infill drilling & incorporate drill results into new model, developing a significant measured mineral resource with focus on the initia
Slide 26: Positioning McEwen Copper as the New Vehicle for Copper Growth
Positioning McEwen Copper as the New Vehicle for Copper Growth Backed by Key Strategic Partners 5 4 6 3 7 2 1 Mining for the Modern World Argentina is an Emerging Tier 1 Mining Jurisdiction Highly Experienced, Local Management Team World - Class Resource Not in the Hands of a Major Robust Economics
Slide 27: The Value We See in MUX: Sum of the Parts
MUX’s Assets Low Mid High McEwen Copper 2 Los Azules $4.94 3 $5.60 4 $21.27 5 Elder Creek Royalty Portfolio $0.69 6 $0.69 6 $0.69 6 Gold & Silver $4.10 8 $8.21 7 $12.30 9 $9.73 $14.50 $34.26 The Value We See in MUX Sum of the Parts @ Sep 6, 2023 Notes 1. McEwen Mining has 51M fully diluted shares 2.
Slide 28: Thank you!
Thank you! NYSE & TSX 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
Slide 29: Appendix
Appendix
Slide 30: Highlights of 2022 and 2023 YTD Financing
Initial financing with lead order by Rob McEwen for $ 40 M and Rio Tinto with $ 25 M closed oversubscribed at $ 82 M in Sep 2022 . Elder Creek 60 % optioned to Rio Tinto for investing $ 18 M over 7 yrs . Second financing round added Stellantis investing 30 Billion Argentine pesos ( $ 155 M at offici
Slide 31: Mineral Resource Improvements
Mineral Resource Improvements Improvements vs 2017 PEA – Since the 2017 PEA, additional 51 holes for 21,777 m of drilling were added to the database for the updated resource estimate. C oupled with an increase in the copper price used for the resource (from $2.75 to $4.00/ lb) this resulted in an im
Slide 32: Benchmarking McEwen Copper to Relevant Copper Developers
7.7 4.1 9.7 3.9 3.8 1.9 1.8 1.3 29.9 24.0 17.1 23.4 17.8 13.1 6.8 3.6 4.6 2.6 1.0 37.6 28.1 26.8 23.4 17.8 13.1 10.7 7.4 6.5 4.4 2.3 0 5 10 15 20 25 30 35 40 45 McEwen - Base Case Los Solaris Western Arizona Marimaca 153 146 132 88 74 36 28 0.36% 0.46% 0.39% 0.37% 0.17% 0.47% 0.36% -3.00% -2.50% -2.
Slide 33: Benchmarking McEwen Copper to Relevant Copper Developers (Cont'd)
$244 $381 $614 $625 $665 $743 $968 $1,155 0 200 400 600 800 1000 1200 1400 Arizona McEwen - Nuton Los McEwen - Base Case Marimaca Hot SolGold Western 39 27 27 26 26 18 16 12 0 5 10 15 20 25 30 35 40 45 McEwen - Nuton McEwen - Base Case Western SolGold Los Arizona Hot Marimaca Benchmarking McEwen Cop
Slide 34: Benchmarking McEwen Copper to Key Comparables
Benchmarking McEwen Copper to Key Comparables Filo del Sol Marimaca Vizcachitas Josemaria (Acquired) (1) Los Azules Project Metrics Base Case | Nuton Case (2) Ownership 100% 100% 100% 100% 100% Commodities Cu / Au / Ag Cu / Mo / Ag Cu / Mo / Ag Cu / Au / Ag Cu / Au / Ag Mine Type OP OP OP OP OP Stag
Slide 35: Argentina is an Emerging, Tier 1 Mining Jurisdiction
Argentina is an Emerging, Tier 1 Mining Jurisdiction Source: Company Disclosure, Fraser Institute and S&P Capital IQ Argentina is expected to play a significant role in the energy transition underpinned by copper and lithium - rich mining district s Multiple Key Industry Players In - Country Amongst
Slide 36: Robust Economics
Robust Economics - $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) Source: Company disclosure, WoodMac First quartile cash cost profile 25% 50% 75% Wood Mackenzie 2023E Copper C1 Cash Cost Cur
Slide 37: Mining With Less Carbon
Mining With Less Carbon - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 - 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: WoodMac Los Azules will set a new standard for its environmental footprint among copper operations Total Carbon Intensity per Asset (CO 2 kg/t CuEq)
McEwen Mining — Investor Presentation (September 2023) on 6ix