Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Investor Presentation (December 2022)
36 slides from Mcewen's investor presentation, December 2022
Slide 1: Turbo Charging MUX By Creating the Next Copper Unicorn
Turbo Charging MUX By Creating the Next Copper Unicorn Corporate Presentation December 2022 MUX
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 approved by solicitation of an offer to subscribe for or to buy any of the securities described
Slide 3: 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 4: MUX Properties: Asset Rich in Prime Real Estate
MUX Properties Asset Rich in Prime Real Estate Au + Ag 3 Mines Fox Complex (100%) Elder Creek Fox Complex Nevada Timmins, Canada (100%) Gold Bar (100%) 2022 Guidance San José (49%) +150,000 oz Gold Bar Nevada (100%) 1 Development Project El Gallo / Fenix (100%) El Gallo – Fenix Project Mexico (100%)
Slide 5: A CEO With a Financial Commitment
A CEO With a Financial Commitment $220 M Investment 1 17.3% Ownership $1/Yr Salary MUX Shares Ownership Distribution Top 10 Holders Rob McEwen 8.2 M Outstanding : 47.4 M Van Eck Associates 2.0 M Fully Diluted : 50.9 M Rob Mirae Asset Global 1.2 M McEwen 17% BlackRock 1.0 M ADTV 2 : 447,000 ALPS Advi
Slide 6: A Lot of Ground to Regain
A lot of Ground to Regain MUX operational challenges largely resolved McEwen Copper’s significant value not reflected in MUX share price Share Price US$ 25 3 Months 6 Months 6 6 5 5 4 4 20 3 3 2 2 15 10 1 Week 1 Month 6.0 6 5 5.5 5 5.0 4 4.5 3 0 2018 2019 2020 2021 2022 Last Price SMAVG (50) SMAVG (
Slide 7: McEwen Copper Completes Oversubscribed US$81.85 Million Offering
McEwen Mining McEwen Copper Completes Oversubscribed US$81.85 Million Offering August 31, 2022 Including a $25 Million Investment by Nuton, a Rio Tinto Venture. Bloomberg McEwen Lands Rio Tinto Venture for Argentina-Focused Copper Unit August 31, 2022 Rio’s copper leaching technology venture to take
Slide 8: Possible Value of Los Azules – Reference Points, US$485M - $1.6B
Possible Value of Los Azules – 2 Reference Points, US$485M - $1.6B McEwen Copper's implied market cap US$257M, based on recently completed financing, Aug 31, 2022 Comparison of Los Azules with Filo Mining's Filo del Sol and Josemaria All 3 in Same Province Altitude Copper Resources & Grades1 San Jua
Slide 9: Possible Share Value of MUX: Sum of its Parts
Possible Share Value of MUX Sum of its Parts MUX’s Assets Value Range Per MUX Share1 Copper Low High Los Azules2 $3.243 $21.364 Elder Creek2 $0.4055 $0.405 Royalty $0.696 $0.696 Portfolio Gold & Silver $3.758 $7.507 $8.08 $29.95 Notes 1. McEwen Mining has 51 million fully diluted shares 2. McEwen Mi
Slide 10: What Could a Share of MUX be Worth?
What Could a Share of MUX be Worth?! Based on recent market valuations / transactions US$8 to $30 MUX Share Price $5.77 December 2, 2022 MUX
Slide 11: McEwen Copper Ownership
McEwen Copper Ownership • Total Shares Outstanding 25.685M Rob McEwen • McEwen Copper owns 100% of the Los Azules and the 15% Elder Creek copper projects MUX Nuton / Rio Tinto 68% Venture • Elder Creek was optioned by Kennecott Exploration Co, 10% a subsidiary of Rio Tinto, to earn 60% interest by s
Slide 12: Los Azules Org Chart – Executive Team
Los Azules Org Chart – Executive Team 180 years of combined experience in mining projects and operations MICHAEL MEDING VICE PRESIDENT AND GENERAL MANAGER DAVID TYLER PROJECT DIRECTOR AND DEPUTY GENERAL MANAGER FRANCO RIZZETTO FABIO ORIOLANI ALFREDO SANCHEZ IVAN ORTIZ HUGO BRACAMONTE RODOLFO OVALLES
Slide 13: Who We Are Working to Plan, Design, Build Los Azules
Who We Are Working to Plan, Design, Build Los Azules Samuel Engineering: • Extensive experience in copper projects, key team members experience in copper project development and operations roles for both milling and hydrometallurgical processing options • Prior experience with Los Azules (2013 PEA a
Slide 14: Who We Are Working to Plan, Design, Build Los Azules
Who We Are Working to Plan, Design, Build Los Azules Knight Piesold: • Extensive mining project development experience and international reputation • Argentina (San Juan/Mendoza) offices and staff • Recent experience at Veladero gold heap leach project and other Argentinian projects • Understanding
Slide 15: Great Address – Amongst the World's Largest
Great Address – Amongst the World's Largest Chile & Peru Produce 40% of World’s Annual Copper Production PERU Antamina Teck Las Bambas MMG Antapaccay Glencore Cerro Verde Freeport-McMoRan Legend MINE DEVELOPMENT CHILE Escondida BHP/Rio Tinto ARGENTINA Josemaria Lundin Mining Taca Taca First Quantum
Slide 16: BIG Asset: Los Azules – 9th Largest Undeveloped Copper Project
BIG Asset: Los Azules – 9th Largest Undeveloped Copper Project in the World Project Country Majority Owner Development Status Geology Preliminary Economic 1 Pebble United States Northern Dynasty Minerals Porphyry, Supergene Copper Assessment 2 Resolution United States Rio Tinto Feasibility Porphyry
Slide 17: Los Azules in Lowest Cost Quartile
Required copper price (US$/t Cu) MUX 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 1 Pebble El Abra Mill Al Arco Galore Creek 9Spot Copper Price Los Azules Q1 Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Price Required
Slide 18: Robust Economics @ $3.00/lb Cu
Robust Economics @ $3.00 / lb Cu 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% After-Tax NPV 8%
Slide 19: Los Azules Plan Map and Resources
Los Azules Copper Gold Silver Plan Map of One of the Resources Tonnes lbs oz oz World’s 10 Largest Undeveloped Copper Deposits Indicated 962 Million 10.2 Billion 1.7 Million 55.7 Million 0.48% 0.06 g/t 1.8 g/t Drilling to Upgrade Inferred Resources to Indicated & Define Payback Pit 19.3 Billion 3.8
Slide 20: Exploration Highlights: Recent Drill Results
Exploration Highlights: Recent Drill Results Confirming Continuity of Mineralization Section 48’ AZ22149: • 298.0 m of 0.55% Cu incl AZ22161 54.0 m of 1.38% Cu AZ22161: • 238.0 m of 0.58% Cu incl 10.0 m of 1.10% Cu Section 44’ - AZ22163: • 194m of 0.56% Cu incl 8m of 1.04% Cu Section 40’ - AZ22146:
Slide 21: Resource Growth Potential at Depth
Resource Growth Potential at Depth • TITAN 24 geophysical survey at Los Azules illustrated shallow & deeper anomalies • Drilling has confirmed copper mineralization coincident to shallower anomalies • Deeper SW & NE anomalies flanking Los Azules are compelling exploration targets, to be drilled this
Slide 22: Hole T-01 Titan Geophysical Target
Hole T-01 Titan 24 Geophysical Target 656 m MUX
Slide 23: Vision for Los Azules: A Regenerative Mine
VISION for Los Azules To Create a Regenerative Mine A Mine That Is: • Very profitable & long life • Technologically advanced • Minimizes carbon footprint & water usage • Environmentally sensitive • Appealing to a wider investor audience MUX
Slide 24: Elder Creek Project, Nevada
Elder Creek Project, Nevada Recently Optioned to Rio Tinto’s Subsidiary, Kennecott Exploration Company A porphyry copper-gold exploration target, optioned for US$18 M to earn 60% interest Airborne magnetics at Elder Creek McEwen Copper illustrate a classic porphyry system Elder Creek magnetic “donut
Slide 25: Los Azules: Two Ways to Get Exposure
START CATCHING THE TREND TO ELECTRIFYING TRANSPORTATION AND THE FUTURE LOS AZULES is one of the world's largest & most economically robust undeveloped copper projects There are 2 ways to get exposure : • Buy shares of MUX today & get 150,000 oz AuEq/yr as a bonus or • Wait for McEwen Copper IPO in H
Slide 26: Appendix
Appendix MUX
Slide 27: Los Azules Executive Team
Los Azules Executive Team Michael Meding: MBA. Mr. Meding has over 20 years of international experience, primarily with major mining companies and tier 1 operations, such as Barrick Gold and Trafigura, including extensive experience with project development, performance improvement, construction and
Slide 28: Los Azules Executive Team
Los Azules Executive Team Hugo Bracamonte: Geologist with more than 25 years of experience in field geology, specialized in porphyry copper projects and epithermal systems. With a strong results-oriented profile, organizational & planning skills and vast experience in the discipline, he has been par
Slide 29: Los Azules Executive Team
Los Azules Executive Team Alfredo Sanchez: Accountant and MBA with more than 20 years of experience in the mining industry, worked for EY, Barrick and the Josemaría Project. He is specialized in finance and corporate taxes, and is proactive, flexible and adaptable to change. While working with Barri
Slide 30: Abundant Potential - Fox Complex
ABUNDANT POTENTIAL - Fox Complex Black Fox, Froome, Grey Fox - Flow-Through Exploration Success Froome Mine Black Fox Mine 194,000 oz Au M+I @ 4.22 g/t 950,000 oz Produced 29,000 oz Au Inferred @ 3.32 g/t De st o r -P or A- cu G 1 pi ib Fa ne so ul Fa n- t ul Ke tZ lo on re e Fa ul t Grey Fox Deposi
Slide 31: Advantages of Froome vs Black Fox Deposit
ADVANTAGES of Froome vs Black Fox Deposit Froome began Commercial Production in September 2021 Portals Surface Black Fox Open Pit Froome Deposit July 2021 Resource Update 194,000 oz Au @ 4.2 g/t M&I 29,000 oz Au @ 3.3 g/t Inf Section Looking North Froome vs Black Fox Shallower deposit Shorter haul &
Slide 32: Extending Froome Mine Life - Fox Complex
Extending Froome Mine Life - Heat Map: Grade x Thickness (GXM) Fox Complex • Goal: replace mined ounces & increase mineral resources; • Focus: Below mine infrastructure to depth • 2022 budget $3.6M (exploration, delineation & definition drilling) • Key points: Open at depth; 2022 success shown; Exte
Slide 33: Growing Resource Base at Stock - Fox Complex
Growing Resource Base at Stock - Fox Complex Heat Map: Grade x Thickness (GXM) Stock West Stock Mine Stock East Surface 0m SAS-55* (4.59 g/t / 14.5m) 500 m SEZ19-35* S21-175A* (3.27 g/t / 11m) (83.49 g/t / 5.6m) S21-203* S21-178A* (2.61 g/t / 6m (9.36 g/t / 3m S18-31* (4.01 g/t / 11.1m) 6.69 g/t / 2
Slide 34: Future for Fox: PEA (Excluding Froome)
Future for Fox: PEA (Excluding Froome) Longer mine life, Higher production, Lower cost / oz Financial & Operating Metrics (After-Tax): Life of Mine (LoM) 9.3 years LoM Gold Production 751,700 oz Average Annual Gold Production - LoM 80,800 oz Average Cash Costs per oz. - LoM $769 Average AISC per oz.
Slide 35: Surrounds a Major - San José Operations Update
Surrounds a Major - San José Operations Update MUX 49% Ownership/ Non-operator § Large Property Property § High Grade Mine outline San José Argentina § Surrounds Newmont San José § On Track to Meet Annual Guidance Mine 342 gpt Silver Reserve Grade 1 5.7 gpt Gold Mine Life 2 6 Years Newmont Cerro Neg
Slide 36: Premier Address - Gold Bar
Premier Address - Gold Bar Gold Bar Nevada, USA On Trend - Similar Geology Nevada Gold Mines Cortez Cortez & Criteria Cortez 50 M oz Au cluster1 Gold Bar Four Mile Large footprint, Co ü Discovery rte shallow oxide gold Goldrush z Fa ul t Host rock, alteration, mineralization style ü Legend Major fau
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