Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Investor Presentation (July 2021)
66 slides from Mcewen's investor presentation, Jul 14, 2021
Slide 1: Gold / Copper Gaining Momentum
Gold / / Copper Gaining Momentum All figures in US Dollars July 2021
Slide 2: Cautionary Statement
MUX MUX: 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 o
Slide 3: MUX: History of Trading at a Premium
MUX -100 -80 -60 -40 -20 0 20 40 60 80 100 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Bloomberg. Monthly performance, f rom Jan 1, 2012, to July 9, 2021 . MUX: History of Trading at a Premium % MUX GDXJ MUX Outperformance MUX Underperformance MUX GDXJ MUX vs GDXJ Relative Performance
Slide 4: 2020 Was Brutal
MUX 2020 Was Brutal • Production fell 34 % from 2019, to 114,800 GEOs • Revenue fell 30% below target on 100% owned operations Reported net loss $152.3 M relates primarily to: – $27.5 M advanced projects & exploration – $27 M gross loss of operations – $83.8 M in Gold Bar impairment • Financial stat
Slide 5: New Senior Management Team
MUX New Senior Management Team Rob McEwen Chairman & Chief Owner Rob has $1/ year salary, has invested $165 million in McEwen Mining and owns 18% of the company’s outstanding shares. He is the founder of Goldcorp, was awarded the 2001 PDAC Developer of the Year, the Order of Canada, and was inducted
Slide 6: 2021 Back on Track & Performing Well - Highlights
MUX 2021 Back on Track & Performing Well - Highlights 1 Includes cash and gold bullion inventory, as of Mar 31, 2021 • New senior management @ head office & mines • H1 production in line with guidance: 71,400 GEOs • 2021 production guidance + 20 - 40% versus 2020 actual production • Cash and liquid
Slide 7: MUX Regaining Its Mojo
MUX -20 0 20 40 60 80 100 120 140 160 180 200 Mar/2020 May/2020 Jul/2020 Sep/2020 Nov/2020 Jan/2021 Mar/2021 May/2021 Jul/2021 MUX Regaining Its Mojo % Silver 107% Copper 99% Gold 21% Source: Bloomberg. From Mar 20, 2020 to Jul 9, 2021 . MUX 123% GDXJ 89%
Slide 8: Big Prize for Successful Turnaround
MUX -80 -60 -40 -20 0 20 40 60 80 100 Jul/2018 Jul/2019 Jul/2020 Jul/2021 Big Prize for Successful Turnaround $1.29 Current MUX Source: Bloomberg. Weekly performance, f rom July 9, 2018 to July 9, 2021 . MUX Outperformance MUX Underperformance Potential MUX $3.06 Closing The Gap % MUX GDXJ MUX vs GD
Slide 9: CEO's Unique Financial Commitment
MUX CEO's Unique Financial Commitment $16 5 M 18 % $1/ Y r Investment 1 Ownership Salary Rob McEwen 18% Institutional 25% Retail 57% 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
Slide 10: Streamlining our Gold, Silver, Copper Assets
MUX Black Fox Gold Bar El Gallo MUX: Streamlining our Gold, Silver, Copper Assets Gold 5 Development Projects Froome Grey Fox Stock Copper Los Azules Fenix Argentina Mexico Nevada Ontario 4 Mines Gold Gold & Silver Gold & Silver San Jose
Slide 11: 2020 and 2021 H1 Production & 2021 Guidance
MUX 2020 and 2021 H1 Production & 2021 Guidance 2021 Production Expected to Be 20 - 40% Higher Than 2020 GEO – gold equivalent ounces. 2021 production guidance - Feb 2, 2021 press release. Q1 2021 production – Apr 19, 2021 press re lease. Q2 2021 production – Jul 13, 2021 press release. Numbers may
Slide 12: Releasing Hidden Value: Copper & Silver Assets
Gold / / Copper Releasing Hidden Value: Copper & Silver Assets
Slide 13: MUX's Value Growth Opportunities
MUX o $9 M @ Fox, Stock and Grey Fox, o $5 M @ Gold Bar and Tonkin deposits, targeting increased near - term production. McEwen Copper • Series B financing $80 M • Lead order, $40 M by Rob McEwen • Go public in 12 months • New site access road begins construction in July • 53,000 m drill program and
Slide 14: Launching a New Copper Developer
MUX Launching a New Copper Developer Key asset: 100% of Los Azules Copper Project located in San Juan, Argentina One of the world's largest undeveloped open pit copper porphyry deposits; New low altitude all season access road construction starts July Aggressive resource - reserve definition drill p
Slide 15: Los Azules: Large Copper Resource
MUX Ore tonnes Copper lbs Gold oz Silver oz Indicated 962 Million 10.2 Billion 0.48% 1.7 Million 0.06 g/t 55.7 Million 1.8 g/t Inferred 2,666 Million 19.3 Billion 0.33% 3.8 Million 0.04 g/t 135.4 Million 1.6 g/t Los Azules: Large Copper Resource Source: Preliminary Economic Assessment (PEA) Oct 16,
Slide 16: Los Azules: NPV Sensitivity
MUX Los Azules: NPV Sensitivity Post - Production Decision Change from Base Case (%) Copper Price ($/ lb) - 50% - 25% 100% +25% +50% $1.15 $2.25 $3.00 $3.75 $4.50 $6 $5 $4 $3 $2 $1 Cu Price Au Price Ag Price Grade CAPEX OPEX OPEX - Mining OPEX - Process OPEX – G&A $0 $ - 1 $ - 2 NPV8% Billions US$ A
Slide 17: Copper Project Acquisition Comparables
MUX Target (Project) Buyer Announcement Date Development Stage % Acquired Acquired Cu Eq. R&R (million lbs) Cu Eq Grade % US$/lb Cu Eq Peregrine Metals Limited (Altar) Stillwater Mining Company 07/11/2011 Resource 100% 12,567 0.45% 0.036 Mason Resources Corp Hudbay Minerals Inc. 10/31/2018 PEA 86% 1
Slide 18: Cost Curve for Development Stage Copper Projects
MUX Cost Curve for Development Stage Copper Projects 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 New Prosperity Tenke Phase 3 Pebble El Abra Mill Al Arco Galore Creek Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Kamoa - Kakula Resolution Kansansh
Slide 19: Asset Information: Peer Copper Projects
MUX Asset Information Project Name (Ownership) Filo del Sol (100%) Josemaria (100%) Alpala (85%) (2) Vizcachitas (100%) Los Azules (100%) Los Azules Country Argentina / Chile Argentina Ecuador Chile Argentina Rank Stage PFS FS PEA PEA PEA Public Markets Information F.D. ITM Market Capitalization (B
Slide 20: Operational Progress Update
MUX Operational Progress Update Fox Complex Froome expands Black Fox production by 2.5 yrs Commercial production scheduled Q4 2021 PEA expansion study H2 2021 $9 M exploration program 2021 Gold Bar Updated feasibility study 300 Koz Recoverable gold 6 - year mine life $5 M exploration program 2021 El
Slide 21: Fox Complex – Timmins – Organic Growth Opportunities
MUX Fox - Stock Mine & Mill Black Fox Mine (incl Tamarack) Matheson Fox - Lexam Trans - Canada Hwy N Timmins 20 miles (32 km) Grey Fox Mineral Resources: 2,789,000 oz Au Measured & Indicated & 1,183,000 oz Au Inferred Froome Destor - Porcupine Fault Zone Resources: M&I - Measured & Indicated, Inf –
Slide 22: Fox Complex – Multiple Exploration Targets
MUX Stock Mine 27.2 g/t Au / 7m incl. 120 g/t Au / 1.6m Black Fox Mine 55.1 g/t Au / 1m 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 Au /
Slide 23: Fox Complex: Black Fox Mine Property
MUX 2 km 1.2 miles N Please see Appendix for more details. Fox Complex: Black Fox Mine Property Includes 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 Expected to Draw Better Economics than Black Fox
MUX Section Looking North Portals Black Fox Open Pit Surface Froome Deposit Production Mining and Milling Underway Froome on Target for Q4 Commercial Production Shallower deposit → Shorter haul & access time improves productivity Wide disseminated style mineralization More consistent grades & contin
Slide 25: Fox Complex: Grey Fox
MUX Fox Complex: Grey Fox Priority Surface 250m - 500m - 0 - Whiskey Jack Long Section Looking North Near Surface, Good Grades 200m 0 Drill Hole Grade (g/t Au) Width (m) Grade (g/t Au) Width (m) GxW 19GF - 1320 2.05 11.0 incl. 5.30 1.6 23 19GF - 1313 2.06 11.0 incl. 6.95 1.0 23 19GF - 1293 5.82 4.4
Slide 26: Fox Complex: Stock Area – Resources Base Growing
MUX • Historical grades processed at Stock Mine +5 g/t Au • Close to the mill & near surface • Large mineralized intersections lend to potential for efficient bulk mining methods • Dewatering of shaft to begin H2 2021 Fox Complex: Stock Area – Resources Base Growing Stock West Stock East Plan View S
Slide 27: Fox Complex: Stock Area – Potential Emerging
MUX Surface - 1000m - 500m Gold Grade x Width (g/t x m) 50 to 100 25 to 50 10 to 25 5 to 10 >100 Stock West Stock Mine 137 Koz Au historic production Stock East Fox Complex: Stock Area – Potential Emerging Longitudinal Section Looking North 5 km to Property Boundary
Slide 28: Fox Complex - Stock West – Resources Taking Shape
MUX - 300m - 500m - 300m - 500m 1 3 2 Fox Complex - Stock West – Resources Taking Shape Drill results are true widths and are presented in the May 10, 2021 press release, “McEwen Mining Reports Upbeat Exploration & D elineation Results” Select Drill Intercepts 1 2.92 g/t Au over 39.6 m incl 5.05 g/t
Slide 29: Gold Bar: Nevada – Tier Jurisdiction
MUX Gold Bar: Nevada – Tier 1 Jurisdiction 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
Slide 30: Gold Bar - $5 M Exploration Budget
MUX Gold Bar - $5 M Exploration Budget 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 0 1 2 Miles
Slide 31: A Silver Company Within MUX
MUX A Silver Company Within MUX Comparisons to 2020 Production (Moz AgEq) 63.7 19.1 14.7 10.1 10 7.5 6.3 5.6 2.6 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
Slide 32: San José Mine
MUX San José Mine N Production 2020 6 231,000 oz Au 12 miles San José Argentina 1., 2. Hochschild “Annual Report and Accounts 2020”. 3. Based on 49% MUX ownership basis. 4. MUX Feb 2, 2021 press release 5. Hochschild 1 - 5 Mar 2021 presentation. 6. Newmont disclosure. San José - ▪ Large Property ▪ H
Slide 33: San José Property Exploration Targets
MUX N 20 k m Newmont Cerro Negro Mine 12 miles San José Property Exploration Targets ▪ Recent Near Mine Results 2.0 m @ 62.50 g/t Au & 5,571 g/t Ag 1.3 m @ 13.80 g/t Au & 3,149 g/t Ag 1.6 m @ 5.60 g/t Au & 648 g/t Ag 0.9 m @ 2.20 g/t Au & 722 g/t Ag Source: Hochschild Mining: press releases dated Ja
Slide 34: El Gallo: Fenix Feasibility Study
MUX El Gallo: 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
Slide 35: Near-Term Catalysts
MUX Near - Term Catalysts • Launch of McEwen Copper • Exploration Results • Fox Complex Expansion PEA in H2 • Froome Commercial Production in Q4 • Monetizing Silver Assets
Slide 36: Motivated, United, Exceptional
Motivated United X ceptional
Slide 37: Appendix
Appendix
Slide 38: Los Azules Project Launch Presentation
July 2021 Launch Presentation Los Azules Project San Juan, Argentina
Slide 39: Cautionary Statement
MUX 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,
Slide 40: Located in the Prolific Andes Copper Belt
MUX Located in the Prolific Andes Copper Belt Aldebaran Aldebaran Res. Filo del Sol – Filo Mining Josemaria Situated at 3,500 m elevation in the Andes Mountains, on the border with Chile In a pro - mining jurisdiction, the Province of San Juan, Argentina Accessible by road, and within 20 - months by
Slide 41: Los Azules: Preliminary Economic Assessment (PEA)
MUX Los Azules: Preliminary Economic Assessment (PEA) 1 Preliminary Economic Assessment (PEA) Oct 16 , 2017 - “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina” (Hatch) . All project economic metrics are presented on a post - project approva
Slide 42: Los Azules: IRR Sensitivity
MUX Los Azules: IRR 1 Sensitivity 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 $3.50 $4.00 $4.50 Copper Price ($/lb) After - tax IRR 1 Preliminary Economic Assessment (PEA) Oct 16 , 2017 - “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update fo
Slide 43: Los Azules: Life of Mine Cash Flow
MUX Los Azules: Life of Mine Cash Flow 1 (@ $3.00/lb Cu) 1 Preliminary Economic Assessment (PEA) Oct 16 , 2017 - “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for the Los Azules Project, Argentina” (Hatch) . All project economic metrics are presented on a post project approv
Slide 44: Copper is the new oil
MUX “ Copper is the new oil” – Goldman Sachs Demand for copper expected to increase from acceleration in green electrification trends. Copper producers are unprepared for surge in demand after price collapse in mid - 2010s curtailed expansions. Copper prices have rallied 80% over the last 12 months,
Slide 45: Long-term supply gap
MUX “Long - term supply gap” – Goldman Sachs Estimated 8.2 Mt shortfall by 2030 Brownfield and greenfield mine projects needed to reduce the size of the supply gap. “The total listed global possible brownfield and greenfield copper projects currently amount to 14 . 5 Mt, which means that close to 60
Slide 46: Executive Leadership Team
MUX Executive Leadership Team Rob McEwen - Chairman and Chief Executive Officer Rob is the Chairman and Chief Owner of McEwen Mining Inc . (MUX) . Rob owns 18 % of MUX, his cost base is $ 165 million, and his salary is $ 1 /yr . Rob is a passionate innovator, marketer and an avid recreational compet
Slide 47: Project Leadership Team
MUX Project Leadership Team Ruben Wallin – Vice President Environment, Safety, Health & Community Ruben is an environment and sustainability professional with more than 30 years’ of experience in the global mining industry . He has broad corporate and operational management experience in the areas o
Slide 48: Los Azules: Infrastructure De-risking
MUX Los Azules: Infrastructure De - risking Preliminary airstrip, will be constructed during the PFS to support workforce movements. The location will coincide with a proposed permanent airstrip to service the project over the long term. Power transmission corridor was defined alongside the Northern
Slide 49: McEwen Copper: Anticipated Deliverables
MUX McEwen Copper: Anticipated Deliverables 53,000 m Resource and Reserve definition drill program New road to provide year round access to the site New airstrip to support efficient transport of personnel, food and other essential supplies to the work site Prefeasibility Study (PFS) targeting PEA b
Slide 50: Los Azules: Federal & Provincial Glacier Protection Laws
MUX Los Azules: Federal & Provincial Glacier Protection Laws Potential Permafrost Distribution in the area of Los Azules Los Azules Project Footprint Potential The Los Azules Project has a facility and mine layout specifically planned with reference to permafrost and water bearing geoforms, and appe
Slide 51: Los Azules: Tailings & Water Management
MUX Los Azules: Tailings & Water Management Favorable project location using natural terrain to minimize footprint and water use The PEA tailings dam solution is configured to close - off the water catchment downstream from all upstream mining, processing, and waste rock and tailings storage, creati
Slide 52: Los Azules: Social Investment
MUX Los Azules: Social Investment Socio - economic impact assessment to be completed Key stakeholders will be engaged to develop social investment plan Areas of focus: I. Employment II. Education and skills training III. Local business development IV. Infrastructure development (roads, green power,
Slide 53: Elder Creek Project, Nevada
MUX Elder Creek Project, Nevada Elder Creek is a porphyry copper - gold exploration property located in northern Nevada, near the northern end of the Battle Mountain - Eureka Trend, one of Nevada’s prolific mineral belts. The project covers 9,600 acres. Several exploration and mining companies have
Slide 54: Elder Creek Project, Nevada
MUX Elder Creek Project, Nevada Airborne magnetics at Elder Creek document a classic porphyry system magnetic “donut” pattern which coincides with the outer limit of alteration that is known to contain pyrrhotite (a magnetic mineral). The cause of the central magnetic low could be non - magnetic int
Slide 55: Contact Information
MUX For additional information: Rob McEwen Chairman and Chief Owner McEwen Mining & McEwen Copper rob@mcewenmining.com Tara Saratsiotis Executive Assistant to Rob McEwen tsaratsiotis@mcewenmining.com (647) 258 - 0395 x230 Contact Information Anna Ladd - Kruger Chief Financial Officer McEwen Mining &
Slide 56: Appendix: Los Azules Mineral Resource Estimate
MUX Appendix: Los Azules Mineral Resource Estimate Source: Preliminary Economic Assessment (PEA) Oct 16, 2017 - “NI 43 - 101 Technical Report - Preliminary Economic Assessment Update for th e Los Azules Project, Argentina” (Hatch). Gold Resources Indicated Inferred Tonnes (millions) Grams per tonne
Slide 57: Stock West Drill Results
MUX Stock West Drill Results - Strong, Consistent Mineralized Intercepts 21.40 g/t Au over 30.0m 2 Visible Gold (VG) 5.63 g/t Au over 30.0 m 1 Core from drill holes: 1. S19 - 98, 2. S19 - 106.
Slide 58: Fox Complex Expansion Strategy
MUX Fox Complex 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 gold produc
Slide 59: 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 60: Fox Complex Drill Results Table
MUX Area Project Hole # Gold (g/t) Width (m) From (m) Including Au GxM GREY FOX 147NE 19GF - 1253 265.00 1.2 56.0 318 19GF - 1121 261.00 0.6 168.7 157 19GF - 1123 39.46 3.8 325.0 143.00 g/t Au / 1.0 m 150 19GF - 1151 10.04 13.2 229.8 133 19GF - 1134 6.98 15.5 466 108 19GF - 1175 148.00 0.7 189.1 105
Slide 61: Fox Complex Drill Results @ Stock West
MUX Length Au g/t Cog 1Cog 3 536.0m 1.0 1.15 1.0 0.12 1.0 0.81 1.0 3.36 1.0 1.27 1.0 0.65 1.0 11.60 1.0 6.04 1.0 10.70 1.0 10.35 1.0 16.90 1.0 12.60 1.0 13.65 1.0 26.80 1.0 21.40 1.0 9.48 1.0 13.85 1.0 13.05 1.0 8.70 1.0 2.33 1.0 2.04 1.0 0.45 1.0 1.42 1.0 0.83 561.0m 1.0 2.16 7.72g/t Au / 25m 11.24
Slide 62: San José Mine Vein Extensions
MUX San José Mine Vein Extensions Source: Hochschild Mining. Lengths are rounded up to the nearest tenth. 1.0 m @ 7.02 g/t Au, 811 g/t Ag 1.0 m @ 2.38 g/t Au, 1,964 g/t Ag 0.7 m @ 0.30 g/t Au, 18 g/t Ag 1.3 m @ 9.51 g/t Au, 1,318 g/t Ag 1.0 m @ 20.26 g/t Au, 461 g/t Ag 1.3 m @ 6.67 g/t Au, 762 g/t A
Slide 63: MUX: 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 64: MUX: 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 65: MUX: Reserves & Resources – 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 66: 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