Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Roth Conference March 2021
44 slides from Mcewen's conference presentation, Mar 17, 2021
Slide 1: Gold / Copper: A Contrarian Moment
Gold / / Copper A Contrarian Moment Roth Conference March 2021 All figures in US Dollar
Slide 2: Cautionary Statement
MUX MUX: Cautionary Statement Executive Summary: If you are r isk - averse , don’t buy our shares. Past performance is unreliable in predicting the future. Unexpected events do happen and will change forecasts. MUX
Slide 3: MUX Has Leverage to Gold, Silver & Copper
MUX -20 0 20 40 60 80 100 120 140 160 Mar/2020 Jun/2020 Sep/2020 Dec/2020 Mar/2021 MUX Has Leverage to Gold, Silver & Copper % Silver 106% Copper 84% Gold 15% Source: Bloomberg. From Mar 20, 2020 to Mar 9, 2021 . MUX 86%
Slide 4: MUX vs GDXJ Relative Performance
MUX -80 -60 -40 -20 0 20 40 60 80 100 2018 2019 2020 2021 MUX vs GDXJ Relative Performance Mar 2018 – Mar 2021 MUX - $1.14 Current MUX Source: Bloomberg. From Mar 15, 2018 to Mar 15, 2021 . MUX Outperformance MUX Underperformance Potential MUX $2.97 Closing The Gap % MUX GDXJ Contrarian’s Moment for
Slide 5: Daylighting Value from Copper & Silver Assets
Gold / / Copper Daylighting Value from Copper & Silver Assets
Slide 6: Diversified Production, Development Pipeline & Exploration Potential
MUX Black Fox Gold Bar El Gallo San Jose MUX: Diversified Production, Development Pipeline & Exploration Potential Gold & Silver Development Pipeline Froome Grey Fox Stock Copper Los Azules Fenix Argentina Mexico Nevada Ontario Mines Gold & Silver
Slide 7: Los Azules: Large Copper Deposit
MUX Ore tonnes Copper lbs Gold oz Silver oz Indicated 962 Million 10.2 Billion @ 0.48% 1.7 Million @ 0.06 gpt 55.7 Million @ 1.8 gpt Inferred 2,666 Million 19.3 Billion @ 0.33% 3.8 Million @ 0.04 gpt 135.4 Million @ 1.6 gpt Source: Oct 16, 2017 – “NI 43 - 101 Technical Report - Preliminary Economic
Slide 8: Large Leverage to Copper - Los Azules NPV Sensitivity
MUX Large Leverage to Copper - Los Azules NPV @ 8% Sensitivity NPV presented is After - Tax. Oct 16, 2017 - “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina ” (Hatch) Change from Base Case (%) Copper Price ($/ lb) - 40% - 20% 100% +20% +40%
Slide 9: Los Azules IRR Sensitivity to Copper Price
MUX Los Azules IRR Sensitivity to Copper Price IRR IRR presented is After - Tax. Oct 16, 2017 - “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina ” (Hatch). 7.2% 14.3% 20.1% 25.1% 29.8% 33.6% 0% 5% 10% 15% 20% 25% 30% 35% $2.00 $2.50 $3.00 $
Slide 10: Highlights of the 2017 PEA
MUX Los Azules – Oct 16, 2017 – “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina ”(Hatch). Average annual production 1 st 13 years Mine life Initial capex Payback After - tax IRR After - tax NPV @ 8% 415 Million lbs Cu @ $1.14/ lb cash cost
Slide 11: A Potential McEwen Silver Spin Out
MUX A Potential McEwen Silver Spin Out 2020 Production (Moz AgEq) 63.7 19.1 14.7 10.1 10 7.5 6.3 5.6 1.9 1.6 0.6 Pan American Silver First Majestic Silver Fortuna Silver McEwen Silver - San José + Fenix Phase 2 Silver Corp McEwen Silver - San José + Fenix Phase 1 Endeavour Silver McEwen Silver - San
Slide 12: Reasons for Turnaround Progressing
MUX Reasons for Turnaround Progressing • 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 13: New Senior Management Team
MUX New Senior Management Team Rob McEwen Chairman & Chief Owner Anna Ladd - Kruger CFO 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 14: 2020 Operational & Financial Highlights
MUX 2020 Operational & Financial Highlights • 114,800 GEO full year actual production • Consolidated net loss $152.3 M relates primarily to: – $27.5 M advanced projects & exploration – $27 M gross loss of operations – $9 M in G&A – $83.8 M in Gold Bar impairment • Removed going concern note • Debt f
Slide 15: 2021 Production Guidance - 40% Higher Than 2020
MUX 2021 Production Guidance 23 - 40% Higher Than 2020 The production guidance was published in the Feb 2, 2021 press release. A gold:silver ratio of 75:1 is applied for 2021. 2021 Guidance Range Ounces San José Mine, Argentina (49%) 41,500 - 44,500 Gold 2,300,000 - 2,450,000 Silver 72,000 - 77,000
Slide 16: 2021 Operational & Financial Highlights
MUX 2021 Operational & Financial Highlights 1 Includes cash and gold bullion inventory • Current liquid assets 1 : ~ $49 M • MSC (San José mine) dividend payments $5 M by end of Q1 2021 • Raised ~$44 M in gross proceeds subsequent to year - end • Froome development project, US exploration & business
Slide 17: CEO's Financial Commitment
MUX CEO's Financial Commitment $16 5 M 18 % $1/ Y r Investment 1 Ownership Salary Rob McEwen 18% Institutional 18% Retail 64% 1 - Rob McEwen’s investment: $1 40 M shares + $25 M, Aug 13, 2018 press release. 2 - Average Daily Trading Volume over 3 months. 3 - Holdings in million shares. Source: Bloom
Slide 18: Operational Highlights
MUX Operational Highlights 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 2021 - 22 Gold Bar Updated feasibility study, 302,000 Recoverable oz Au 6 - year mine life $5 M exploration program 2021
Slide 19: Nevada - Prime Real Estate for Gold
MUX Nevada - Prime Real Estate for Gold Cortez Nevada Gold Mines Cortez 50 Moz Au cluster 1 Fourmile Discovery Goldrush MUX Property NGM Property Faults Gold Bar 20 k m 1 . Includes past production and current resources. Underexplored, With Upside Potential Legend Gold Bar Nevada, USA 12 miles N On
Slide 20: Gold Bar: 2021 Initial Near Mine Exploration Results
MUX Gold Bar: 2021 Initial Near Mine Exploration Results Gold Bar South Legend Mine Deposit Near Mine Targets Brownfield Greenfield Pick Ridge Cabin Near Mine Resource Expansion N Brownfields Known Mineralized/ Altered Areas Greenfields Large Faults/ Alteration/ Little to No Data Total Budget $5 M 0
Slide 21: Fox Complex: Fox-Stock Mine & Mill
MUX Fox Complex: Fox - Stock Mine & Mill Black Fox Mine Matheson Fox - Lexam Trans - Canada Hwy 28 Miles (45 km) N Timmins 20 Miles (32 km) Grey Fox Fox Complex Gold Resources - 2.96 M oz Measured & Indicated & 1.15 M oz Inferred Froome Destor - Porcupine Fault Zone Resources: M&I - Measured & Indic
Slide 22: Fox Complex: Upside Potential
MUX Stock Mine 27.2 g/t Au / 7m, incl. 120 g/t Au / 1.6m Black Fox Mine 55.1 g/t Au / 1.0m Stock / Black Fox Kirkland Lake Timmins Red Lake 1,000m 2,000m Surface Ore Bodies Headframe/ Shaft 3,300ft 6,600ft Stock West 6.7 g/t Au / 39m Stock East 63.6 g/t Au / 6.2m Grey Fox Area Whiskey Jack 9.9 g/t A
Slide 23: Fox Complex: Black Fox Mine, Froome & Grey Fox Deposits
MUX 2 km 1.2 miles N Please see Appendix for more details. Fox Complex: Black Fox Mine, Froome & Grey Fox Deposits Froome 181,000 oz Indicated @ 5.1 g/t Au Grey Fox 888,000 oz Indicated @ 7.1 g/t Au 173,000 oz Inferred @ 6.6 g/t Au
Slide 24: Froome – Extends Black Fox Mine Life
MUX Section Looking North Portals Black Fox Open Pit Surface Froome Deposit Froome Expected to be 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 wid
Slide 25: Fox Complex, Grey Fox: Excitement @ Whiskey Jack
MUX Fox Complex, Grey Fox: Excitement @ Whiskey Jack 19GF - 1242 PR93 - 19 GF14 - 917 GF11 - 400 GF14 - 925 19GF - 1248 19GF - 1321 19GF - 1320 20GF - 1112 Composites 2019 Historic 2020 20GF - 1152 20GF - 1255 20GF - 1305 20GF - 1325 20GF - 1329 Surface 250m - 500m - 0 - Grey Fox Long Section - Near
Slide 26: New Growth Opportunities Adjacent to Stock Mine & Mill
MUX - 300m - 500m Gold Grade x Width (g/t x m) 50 to 100 25 to 50 10 to 25 5 to 10 >100 S20 - 151 7.6 g/t Au / 11m incl. 11.2 g/t Au / 7m S20 - 152 4.3 g/t Au / 14.1m incl. 6.4 g/t Au / 8m S20 - 138A 8.4 g/t Au / 18m S20 - 148 8.2 g/t Au / 15.6m S19 - 101 6.4 g/t Au / 42m S19 - 98 5.6 g/t Au / 30m S
Slide 27: Stock Mine Drill Intercepts
MUX Stock Mine Cog 1g/t Au S20 - 151 7.6g/t Au / 11m incl. 11.2 g/t Au / 7m S20 - 152 4.3g/t Au / 14.1m incl. 6.4 g/t Au / 8m S20 - 148 8.2g/t Au / 15.6m incl. 8.2 g/t Au / 11.7m S20 - 154 6.2g/t Au / 24m incl. 6.4 g/t Au / 23.1m S21 - 165 2.9g/t Au / 12.3m incl. 3.6g/t Au / 7.7m S20 - 154 (BMV) 24.
Slide 28: San José Argentina
MUX San José Argentina 1. Hochschild Mining 2020 Full Year Results. 2. Based on 49% MUX ownership basis. 3. MUX press release Feb 2, 2021, “McEwen M ini ng: A Warm Welcome and 2021 Production Guidance". 4. Hochschild’s “Annual Report and Accounts 2020”. 5. Newmont disclosure. San José - ▪ Large Prop
Slide 29: San José Property Exploration Targets
MUX N 20 k m Newmont Cerro Negro Mine 12 miles San José Argentina 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) Source: Hochschild Mining - press releases dated Jan 20 2021, 2020 Full Year Results
Slide 30: San José Mine Vein Extensions
MUX San José Mine Vein Extensions Source: Hochschild Mining 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 1.33 m @ 9.51 g/t Au, 1,318 g/t Ag 1.00 m @ 20.26 g/t Au, 461 g/t Ag 1.30 m @ 6.67 g/t Au, 76 2 g/t Ag 1.15 m @ 5.80 g/t Au, 197 g/t Ag 0.90
Slide 31: Potential Near Term Catalysts
MUX Potential Near Term Catalysts • Fox Complex PEA Q2 • Exploration Results • Froome Commercial Production Q4 • Copper and Silver Spinouts
Slide 32: Motivated, United, Exceptional
Motivated United X ceptional
Slide 33: Appendix
Appendix
Slide 34: 5 Year Strategic Organic Growth Pipeline
MUX 116 141 - 160 210 300 300 300 2020 2021E 2022E 2023E 2024E 2025E Production (koz Au Eq) Fox Complex Gold Bar El Gallo San Jose 5 Year Strategic Organic Growth Pipeline Targeting Annual Production to 300,000 Gold Equivalent Ounces Based on internal management estimates and dependent on technical
Slide 35: Stock West Drill Results
MUX Stock West Drill Results - Strong, Consistent Mineralized Intercepts VG 21.4 g/t Visible Gold 5.6 g/t Au over 30 m Drill core from hole S19 - 98.
Slide 36: Fox Complex Conceptual Expansion Strategy
MUX Fox Complex Conceptual Expansion Strategy 1 Production Growth Steps to Target 100 - 150 Koz / Yr Leveraging Stock Mill Capacity 1 Based on existing 3.0 Moz Measured & Indicated Resource from Black Fox, Grey Fox, Stock and Timmins properties. Step 1. Froome Commercial production Q4 2021 Bridging
Slide 37: Froome Deposit – Better Mining Conditions Than Black Fox
MUX Drill core from hole #15PR - G031. Numbers in yellow represent grams per tonne values over sample length. 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 b
Slide 38: Project Fenix Feasibility Study
MUX Project Fenix Feasibility Study* Fenix Sinaloa Mexico • Innovative, water saving, tailings disposal • Phase 1 permitting completed Base Case $1,500/oz Au $17/oz Ag Spot Case $1,800/oz Au $25/oz Ag Upside Case $ 1,900/oz Au $25/oz Ag After - Tax IRR 28% 51% 56 % After - Tax NPV@8% $32 M $91 M $98
Slide 39: Fox Complex: Grey Fox 2019 Exploration Highlights
MUX 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 - 1175 148 0.71 189.1 105 GF South 19GF -
Slide 40: Strong, Consistent Mineralized Intersections
MUX Strong, Consistent Mineralized Intersections Length Au g/t Cog 1Cog 3 475m 1.0 6.6 1.0 3.0 1.0 1.8 1.0 2.3 1.0 3.5 1.0 2.3 1.0 3.1 1.0 2.5 1.0 7.7 1.0 8.7 1.0 2.4 1.0 3.3 1.0 5.1 1.0 1.6 1.0 5.5 1.0 4.0 1.0 4.5 1.0 5.2 1.0 2.6 1.0 0.9 1.0 4.1 1.0 2.1 1.2 3.1 0.8 1.2 1.0 6.2 1.0 22.8 1.0 8.3 1.0
Slide 41: Reserves & Resources: Mineral Reserves
MUX MUX: Reserves & Resources Mineral Reserves Source: Company disclosures to March 11, 2021. 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 (mill
Slide 42: Reserves & Resources: Mineral Resources
MUX MUX: Reserves & Resources Mineral Resources Attributable Gold Resources Measured Indicated Measured + Indicated Inferred 43 - 101 Au Resources Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contained Metal (Koz) Tonnes (millions) Grams per tonne Contain
Slide 43: Mineral Resources (Cont'd)
MUX MUX: Reserves & Resources Mineral Resources (Cont’d) Source: Company disclosures to March 11, 2021.Note: Mineral Resources inclusive of Mineral Reserves (where applicable). Attributable Silver Resources Measured Indicated Measured + Indicated Inferred 43 - 101 Ag Resources Tonnes (millions) Gram
Slide 44: Cautionary Note Regarding Non-GAAP Measures
MUX 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 st