Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — BMO 30th Global Metals & Mining Conference 2021
37 slides from Mcewen's conference presentation, Mar 2, 2021
Slide 1: Gold // Copper: A Contrarian Moment
Gold // Copper A Contrarian Moment The BMO 30th Global Metals & Mining Conference March 2021
Slide 2: MUX: Cautionary Statement
MUX: Cautionary Statement Executive Summary: If you are risk-averse, don’t buy our shares. Past performance is unreliable in predicting the future. Unexpected events do happen and will change forecasts.
Slide 3: MUX Has Leverage to Gold, Silver & Copper
MUX Has Leverage to Gold, Silver & Copper 160% 140 120 100 80 60 40 20 -20 Mar/2020May/2020Jul/2020Sep/2020Nov/2020Jan/2021 Silver 123% MUX 119% Copper 89% Gold 21% MUX Source: Bloomberg. From Mar 20, 2020 to Feb 22, 2021.
Slide 4: MUX - Contrarian's Moment for Large Capital Gain Potential
MUX-Contrarian’s Moment for Large Capital Gain Potential 100 % 80 60 MUX vs GDXJ Relative Performance Feb 2018 – Feb 2021 Potential MUX $3.30 40 20Closing The Gap 0 -20 -40 -60 -80 MUX GDXJ MUX Outperformance MUX Underperformance $1.27 Current MUX 2018201920202021
Slide 5: MUX's Overlooked Asset Los Azules: Large Copper Deposit
MUX’s Overlooked Asset Los Azules: Large Copper Deposit Copper Equal to a Gold Equivalent Resource of 23 Million oz Indicated & 44 Million oz Inferred1 221 m (725 ft) @ 1.62% Cu 200 m (656 ft) @ 0.89% Cu 240 m (787 ft) @ 0.94% Cu 360 m (1,181 ft) @ 0.63% Cu 429 m (1,470 ft) @ 0.75% Cu Los Azules Arg
Slide 6: Los Azules – Preliminary Economic Analysis (PEA)
Los Azules – Preliminary Economic Analysis (PEA) Robust Economics @ $3/lb Copper Highlights of the 2017 PEA (Hatch) Average annual production 1st 13 Years Mine life Initial capex Payback After-tax IRR After-tax NPV @ 8% 415 Million lbs Cu @ $1.14/ lb cash cost + Au & Ag credits 36 years $2.4 Billion
Slide 7: Los Azules NPV & IRR Sensitivity to Copper Price
Los Azules NPV & IRR Sensitivity to Copper Price NPV @ 8% Sensitivity to Copper Price $6 $5 NPV @ 8% ($ Billions) $3 $2 $1 35% 30% 25% 20% 15% 10% 7.2% IRR Sensitivity to Copper Price 29.8% 25.1% 20.1% 14.3% 33.6% ($1) -40% -20% 100% +20% +40% $1.80 $2.40 $3.00 $3.60 $4.20 Change from $3.00/ lb Cu B
Slide 8: Here's What We Are Doing
Here’s What We Are Doing New Senior Management @ Head Office & Mine Sites Finances Increasing Gold Production Extending Mine Life Exploration Continues to Deliver Positive Results Moving to Monetize Los Azules Copper
Slide 9: New Senior Management Team
New Senior Management Team Rob McEwen Anna Ladd-Kruger Peter Mah Chairman & Chief Owner Rob has $1/ year salary, has invested $165M in McEwen Mining and owns 18% of the outstanding shares. He is the founder of Goldcorp, was awarded the 2001 PDAC Developer of the Year, the Order of Canada, and was in
Slide 10: 2021 Operational & Financial Highlights
2021 Operational & Financial Highlights 110,500 – 127,900 Gold Oz 2,300,000 – 2,450,000 Silver Oz 141,000 – 160,400 GEO 2021 Production Guidance Current cash balance1: ~US$54M Ontario operations Froome development project fully funded Exploration programs fully funded
Slide 11: CEO's Financial Commitment
CEO's Financial Commitment Shares Stock Ownership Top 10 Holders 3 Rob McEwen 82.2 M Van Eck Associates 19.5 M Weiss Asset Management 14.0 M BlackRock 7.3 M Mirae Asset Global Investments 6.8 M AIFM Capital AB 5.1 M The Vanguard Group 4.4 M ETF Managers Group 2.8 M Invesco Ltd 2.7 M SIG Holding 2.3
Slide 12: MUX: Diversified Production, Development Pipeline & Exploration Potential
MUX: Diversified Production, Development Pipeline & Exploration Potential Mines Gold & Silver Black Fox Gold Bar El Gallo San Jose Mexico Ontario Nevada Development Pipeline Gold & Silver Froome Grey Fox Stock Fenix Argentina Copper Los Azules
Slide 13: Operational Highlights
— — Operational Highlights Operations Fox Complex Froome Expands Black Fox Production by 2.5 yrs Commercial Production Scheduled Q4 2021 PEA Expansion Study Q2 2021 $9 M Exploration Program Gold Bar Updated Feasibility Study, 302,000 Recoverable oz Au 6 Year Mine Life $5 M Exploration Program El Gal
Slide 14: Nevada - Prime Real Estate for Gold
Nevada - Prime Real Estate for Gold Criteria Cortez & Gold Bar Large footprint, shallow oxide gold ✓ Host rock, alteration, mineralization style ✓ Major faults, structural traps ✓ Intrusions ✓ Cortez Fourmile Discovery Goldrush Nevada Gold Mines Cortez 50 Moz Au cluster1 Gold Bar Nevada, USA ✓ Surfa
Slide 15: Gold Bar: Exploration Targets
Gold Bar: Exploration Targets Near Mine ($2.3M) Resource Expansion Ridge expansion Cabin expansion SW Pick Ridge – Stone corridor Tonkin oxide Brownfields ($0.9M) Known Mineralized/ Altered Areas Gold Canyon/Pot Canyon Rojo Ridge corridor Cabin Fault corridor Ridge Fault corridor South of Gold Bar S
Slide 16: Tonkin: Potential Incremental Production for Gold Bar
Tonkin: Potential Incremental Production for Gold Bar Cortez Fourmile Discovery Goldrush Gold Bar Nevada, USA Tonkin Gold Oxide Resource1: 205,000 oz @ 0.027 opt (0.92 g/t) Legend MUX Property NGM Property Faults 12 miles N 20 km Gold Bar Complex MUX Measured & Indicated resource (70% Measured, 30%
Slide 17: Fox Complex: Large Gold Resource Base in the Timmins District
Fox Complex: Large Gold Resource Base In the Prolific Timmins District Fox Complex Gold Resources - 2.96 M oz Measured & Indicated & 1.15 M oz Inferred Destor-Porcupine Fault Zone Trans-Canada Hwy Fox - Stock Mine & Mill Matheson Black Fox Mine Timmins 28 Miles (45 km) oz Au M&I oz Au Inf & 8,000 20
Slide 18: Fox Complex: Exciting Upside Potential
Fox Complex: Exciting Upside Potential A Lot of Room to Grow Along Strike and at Depth Red Lake Timmins Kirkland Lake Stock / Black Fox Surface 1,000m 2,000m 3,300ft 6,600ft Ore BodiesHeadframe/ Shaft McEwen Mineralization Zone Outlines Stock West 6.7 g/t Au / 39m Stock Mine 27.2 g/t Au / 7m, incl.
Slide 19: Fox Complex: Black Fox Mine, Froome & Grey Fox Deposits
Fox Complex: Black Fox Mine, Froome & Grey Fox Deposits Grey Fox 888,000 oz Indicated @ 7.1 g/t Au 173,000 oz Inferred @ 6.6 g/t Au Froome 181,000 oz Indicated @ 5.1 g/t Au 1.2 miles 2 kmN
Slide 20: Froome – Extends Black Fox Mine Life 2.5 Years
Froome – Extends Black Fox Mine Life 2.5 years Froome Better than Black Fox: Shallower deposit, suited for low cost, productive ‘bulk mining’ at pit level Wide disseminated style mineralization, more consistent grades and continuity Wider mining widths ranging from 15-40 m for most of the deposit La
Slide 21: Fox Complex, Grey Fox: Excitement @ Whiskey Jack
Fox Complex, Grey Fox: Excitement @ Whiskey Jack Surface 0 - Grey Fox Long Section - Near Surface, Good Grades GF14-908 PR93-19 Composites 2019 2020 19GF-1242 GF11-337 19GF-1293 Historic Resource Grades > 5 g/t 3.6 – 5 g/t GF14-917 19GF-1320 GF11-400 19GF-1248 19GF-1248 250m - 20GF-1112 20GF-1152 20
Slide 22: Fox Complex: Stock Significant Gold Intersections
Fox Complex: Stock (Mill Site & Former Stock Mine) Significant Gold Intersections Stock WestStock Mine (care & maintenance) Stock East S19-112A 4.2 g/t Au / 14.5m incl. 12.2 g/t Au / 3.4m S19-98 5.6 g/t Au / 30-2m00m incl. 9.1 g/t Au / 13m S20-152 4.28 g/t Au / 14m incl 6.38 g/t Au / 8m S20-151 7.62
Slide 23: San José - One of the Highest Grade Silver & Gold Mines in the Americas
San José - One of the Highest Grades Silver & Gold Mines in the Americas (49% Owned) Large Property High Grade Mine Surrounds Newmont San José Mine San José Argentina Reserve Grade 1459 gpt Silver 7.3 gpt Gold Production 2021E 2,32.3 - 2.45 Moz Silver & 41.5 - 44.5 Koz Gold Mine Life 45 Years Produc
Slide 24: San José Property Exploration Targets
San José Property Exploration Targets ▪ Jan 2021: 1.3 m @ 13.8 g/t Au & 3,149 g/t Ag (Ramal HVNX vein) 1.6 m @ 5.6 g/t Au & 648 g/t Ag (Isabel vein) Aguas Vivas Telken North Property Outline Saavedra San José Argentina Q1 2021 - 2,000 m resource drilling planned High grade areas close to mine: Isabe
Slide 25: San José Mine Vein Extensions
San José Mine Vein Extensions 0.95 m @ 7.02 g/t Au; 811 g/t Ag 1.00 m @ 2.38 g/t Au; 1,964 g/t Ag 0.70 m @ 0.30 g/t Au; 18 g/t Ag Micaela Kospi Odin Maia 1.00 m @ 20.26 g/t Au; 461 g/t Ag 1.30 m @ 6.67 g/t Au; 762 g/t Ag 1.15 m @ 5.80 g/t Au; 197 g/t Ag 0.90 m @ 8.00 g/t Au; 397 g/t Ag 1.60 m @ 7.42
Slide 26: Potential Near Term Catalysts
Potential Near Term Catalysts Los Azules Fox Complex PEA Q2 Froome Startup Exploration Results MUX
Slide 27: Appendix
Appendix
Slide 28: Stock West Drill Results - Strong, Consistent Mineralized Intercepts
Stock West Drill Results - Strong, Consistent Mineralized Intercepts 21.4 g/t Visible Gold VG 5.6 g/t Au over 30 m MUX Drill core from hole S19-98.
Slide 29: Fox Complex Conceptual Expansion Strategy
Fox Complex Conceptual Expansion Strategy 1 Production Growth Steps to Target 100 - 150 Koz / Yr Leveraging Stock Mill Capacity Step 1. Froome Commercial production Q4 2021 Bridging gold production for the next 2-3 years Step 2. Grey Fox nce Sooner Grow scale & increase Life of Mine; PEA Q2 2021 Whi
Slide 30: Froome Deposit – Better Mining Conditions Than Black Fox
Froome Deposit – Better Mining Conditions Than Black Fox Shown below is a core interval of the wide zone - consistent grades and favorable ground conditions expected, providing for overall better mining conditions, compared to Black Fox’s nuggety style mineralization. From 127 m: 4.55 g/t Au over 53
Slide 31: Project Fenix Feasibility Study
Project Fenix Feasibility Study* Phase 2, Years 7 - 9.5 Silver Production Moz AgEq $24 M Year 6 $14.22/ oz AuEq $14.30/ oz AuEq Phase 1, Years 1 - 6 Gold Production Avg Annual Production 26 Koz Au Capex $42 M Initial Cash Costs $1,037/ oz Au AISC $1,045/ oz Au Base Case $1,500/oz Au $17/oz Ag Spot C
Slide 32: Fox Complex: Grey Fox 2019 Exploration Highlights
MUX Fox Complex: Grey Fox 2019 Exploration Highlights Area Project Hole # Gold (g/t) Width (m) From (m) Including Au_GxM GREY FOX 147NE 19GF-1253 265 1.2 56 318 19GF-1121 261 0.6 168.7 157 19GF-1123 39.5 3.8 325 143 g/t Au over 1 m 150 19GF-1151 10.0 13.2 229.8 133 19GF-1134 6.98 15.5 466 108 19GF-1
Slide 33: Fox Complex: Stock West
Fox Complex: Stock West 494m LengthAu g/t Cog 1 Cog 3 475m m 5 2 / u A /t g 2 .7 7 Length Au g/t Cog 1 Cog 3 1.0 1.2 1.0 0.1 7.72g/t Au / 25m 1.0 0.8 1.0 3.4 1.0 1.3 11.24g/t Au / 16.2m 1.0 0.7 1.0 11.6 1.0 6.0 1.0 10.7 1.0 10.4 1.0 16.9 1.0 12.6 1.0 13.7 1.0 26.8 1.0 21.4 1.0 9.5 1.0 13.9 1.0 13.1
Slide 34: MUX: Reserves & Resources
MUX MUX: Reserves & Resources Attributable Gold Reserves Proven Probable Proven + Probable 43-101 Au Reserves Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Gold Bar South 1.9 1.0
Slide 35: MUX: Reserves & Resources Mineral Resources
MUX: Reserves & Resources Mineral Resources
Slide 36: MUX: Reserves & Resources Mineral Resources (Cont'd)
MUX: Reserves & Resources Mineral Resources (Cont’d) Attributable Silver Resources MeasuredIndicatedMeasured + IndicatedInferred 43-101 Ag ResourcesTonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contai
Slide 37: 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 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
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