Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — TD Securities Global Mining Conference 2024
35 slides from Mcewen's conference presentation, Jan 26, 2024
Slide 1: The McEwen Mining Difference – TD Securities Global Mining Conference
The McEwen Mining January 2024 Difference TD Securities Global Mining Conference
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: CEO's Financial Commitment: Fully Aligned With Shareholders
CEO’s 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 2 - Av
Slide 4: McEwen Mining: Gold, Silver and Copper Assets
McEwen Mining Gold Gold & Silver McEwen Copper Copper Los Azules Argentina Fox Mine Complex Timmins, Canada Gold Bar Mine Nevada Fenix Project Mexico Elder Creek Nevada 2. Hard Money & Green Copper San José Mine Argentina ( 49 %)
Slide 5: Gold & Silver Mines Are Changing for the Better
Gold & Silver Mines Production In prolific gold regions Productivity & life of mines (LoM) Are Changing for the Better: Exploration extending LoM Production Cost / oz Debt Large, long life Low cost, low carbon Well financed Copper Exposure - Los Azules
Slide 6: Underlying Value: The Sum of Its Parts
MUX's AssetsRange of Estimated Value Per MUX Share1Low Mid HighMcEwenCopper2Los Azules$4.533 $7.484 $19.715Elder CreekRoyalty Portfolio $0.696 $0.696 $0.696Gold Silver $4.108 $8.217 $12.309 CurrentShare PriceTotal $9.32 $16.38 $32.70 $6.513. Underlying ValueThe Sum of Its Parts @ Jan 17, 2024Notes1.
Slide 7: Los Azules: Amongst the World's Largest Copper Deposits
Chile Peru Produce 40% of World's Annual Copper Production*Rank based on 2021 top 20 largest copper mines in the world by production capacity. https://elements.visualcapitalist.com/the-largest-copper-mines-in-the-world-by-capacity/CHILEARGENTINALos Pelambres AntofagastaAndina CodelcoLos Bronces Angl
Slide 8: McEwen Copper's Growing Impact on MUX Share Value
Amount Share Price Implied Market Cap MUX Ownership (%) Value ($) Value / MUX Share Aug 2022 $82 M $10 $256 M 68.1% $175 M $3.43 Feb 2023 $30 M $19 $550 M 51.9% $285 M $5.59 ARS $30 B 1 Oct 2023 $10 M $26 $800 M 47.7% $382 M $7.48 ARS $42 B 2 McEwen Copper’s Growing Impact on MUX Share Value Private
Slide 9: Two Value Reference Points: Filo del Sol and Josemaria
Two Value Reference Points, US $485 M and $2.01 B McEwen Copper's implied market cap US$800 M, based on the Oct 11, 2023 financing In the Same Province, San Juan, Argentina Comparison of Los Azules With Filo Mining's Filo del Sol & Lundin’s Josemaria Copper Resources & Grades 1 Distance From Power G
Slide 10: McEwen Copper Ownership Advancing Los Azules
MUX 47.7 % Stellantis 19.4% Nuton / Rio Tinto Venture 14.5% Rob McEwen 12.9% Victor Smorgon Group (Australia) 3.2% Others 2.3% MUX Stellantis McEwen Copper Advancing Los Azules to Increase MUX Value McEwen Copper Total Shares Outstanding 30.9 M
Slide 11: Backed by Key Strategic Partners
x World’s 2 nd largest mining company x 14.5% ownership in McEwen Copper through Nuton US$65 M total investment x Extensive expertise throughout the mining value chain x Active in Argentina & recent project development experience at Rincon x Nuton’s copper leaching technology could be a game - chang
Slide 12: Market is Beginning to See The Value
-50 0 50 100 150 200 250 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 MUX GDX GDXJ Nasdaq Gold Silver Copper Dow 4. Market is Beginning to See The Value Comparative Performance - MUX vs Market GDXJ +19% % MUX +118% GDX +19% Go
Slide 13: World's 8th 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 Study Porphyry 3 La Granja Peru Rio Tinto Advanced Exploration Porphyry 4 Kerr - Sulp
Slide 14: PEA Highlights Base Case
PEA Highlights Base Case 175,000 KTPA LME Grade A Copper Cathode Nominal Production Capacity • Heap Leach facility using commercially available bioleaching & SX/EW technology to recover green cathode copper • Mining using extensive electrification – trolley - assisted haulage & electric shovels Proj
Slide 15: Robust Economics: Lowest Quartile Cash Cost Profile
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 Lowest Quartile Cash Cost Profile 25% 50% 75% Wood Mackenzie 2023E Copper C1 Cash Cost Cu
Slide 16: Los Azules Will Be Amongst World's Lowest CO2 Footprint Cu Operations
Los Azules Will Be Amongst World’s Lowest CO 2 Footprint Cu Operations Mining With Less Carbon - 2,000 4,000 6,000 8,000 10,000 12,000 - 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: WoodMac Los Azules to Set a New Standard for Its Environmental Footprint Among Copper Operations Total Carbon Inte
Slide 17: New Model for Mining
At New Model for Mining \54 \ \ ‘7
Slide 18: Slide 18
Slide 19: Los Azules Copper if Converted to a Gold Equivalent
Copper Gold Equivalent 37.6 Billion lbs Total Resources 68 Million oz 321 Million lbs Avg Annual Cathode Production 580,000 oz $1.07 / lb Production Cash Costs $587 / oz Los Azules Copper if Converted to a Gold Equivalent 1 Using prices 2 of $2,024 / oz gold & $3.70 / lb copper Value of 1 oz gold =
Slide 20: 2023 Mineral Resource Improvements
2023 Mineral Resource Improvements The 2023 PEA added 51 drillholes for 21,777 m to the database of the 2017 PEA. C oupled with an increase in the copper price used from $2.75 to $4.00/ lb, it resulted in an improved resource model in each category: Los Azules 2023 Mineral Resources Estimate Tonnes
Slide 21: Experienced, Local Management Team
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, with major mining compani es such as:
Slide 22: Los Azules Recent Exploration Results Suggest It Could Get Bigger
Los Azules - Recent Exploration Results Suggests It Could Get Bigger 3000 Elev 4000 Elev 500 meters The depth of hole AZ22174 is 1,128 m, more than twice the height of One World Trade Center incl 1.46% Cu / 26 m AZ22174 2500 Elev 3500 Elev 2023 PEA Base Case Mineable Pit Shell Exploration H ole AZ22
Slide 23: 2022 & 2023 Highlights
2022 & 2023 Highlights x Completed financings totaling $397 M , well - financed through 2024. x Significant value accretion for McEwen Mining & McEwen Copper shareholders. x Executed 2 comprehensive drilling campaigns totaling 53,427 m (2022 - 2023) . x Filed the Environmental Impact Assessment for
Slide 24: Key Attributes of the McEwen Copper Story
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 With Regenerative Principles + Low Carbon Intensity Argentina is an Emerging Tier 1 Lithium & Copper Mining Jurisdiction Experienced, Local Management Team World
Slide 25: MUX Financial Picture Improving
More Cash Less Debt Equity Financings Higher Cash Gross Profit Increasing Production Increasing working capital Strengthening balance sheet $16.1 M flow - through for Fox exploration & development in 2023 Targeting cost efficiencies Operational improvements Q3 2023 Q3 2023 2023 9M 2023 2023 $72 M $4
Slide 26: Fox Complex, Ontario, Canada: A Great Address
Fox Complex Ontario, Canada A Great Address • 70 million oz Au historic production in the Timmins Camp • 30 km of Primary & Secondary Structural Controls • 3.3 M oz Au historic production including 1.0 M oz Au Fox East (Black Fox, Froome) • Gold Resources: 1.90 M oz M+I @ 4.22 g/t Au, 0.49 M oz Infe
Slide 27: Black Fox Monthly Gold Production - 2023
- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Black Fox Monthly Gold Production - 2023 Gold oz Q1 2023 12,700 oz Au AISC $1,311 Cash Cost $1,088 Q2 2023 10,400 oz Au AISC $1,371 Cash Cost $1,237 Q3 2023 11,200 oz Au AISC $1,288 Cash Cost
Slide 28: Gold Bar, Nevada: Premier Address
Premier Address - Nevada1. Includes past production and current resourcesGold BarNevada, USAOn Trend,in the Shadow ofMajor Gold DepositsMUX PropertyNGM PropertyFaultsMine or DepositLegend20 km12 milesNCortez FaultCortezNevada Gold MinesCortez50 M oz Au cluster1Four MileDiscoveryGoldrushWall FaultGol
Slide 29: Gold Bar Monthly Gold Production - 2023
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Gold Bar Monthly Gold Production - 2023 Gold oz Q1 2023 6,500 oz Au AISC $1,725 Cash Cost $1,491 Q2 2023 7,900 oz Au AISC $2,585 Cash Cost $2,113 Q3 2023 9,500 oz Au AISC $2,160 Cash Cost $1,529 Q4 2023 19
Slide 30: San José Mine, Argentina
San JoseMineNNewmontCerro Negro MineProduction:42022 278,000 oz Au2023E 330,000 oz Au2024E 350,000 oz Au20 km12 milesSan JoseArgentina Narrow Vein Underground Silver / Gold Mine Large Property Package Good Grade MineReserve Grade1 341 g/t Silver6.4 g/t GoldMine Life 2 6 Yrs (est.)2023 Total Mine Pro
Slide 31: San José Monthly GEOs Production - 2023
San José Monthly GEOs Production - 2023 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec GEOs Q1 2023 11,200 GEOs AISC $2,234 Cash Cost $1,800 Q2 2023 17,400 GEOs AISC $1,811 Cash Cost $1,362 Q3 2023 17,900 GEOs AISC $1,953 Cash Cost $1,445 Q4 2023 19,200
Slide 32: 2023 MUX Gold & Silver Production & Cost Guidance
2023 MUX Gold & Silver Production & Cost Guidance ( Numbers may not add up exactly due to rounding) GEO – gold equivalent ounces. G old: Silver ratios: 84:1 for Q1 2023, 83:1 for Q2 2023, 82:1 for Q3, 2023, 85:1 for Q4 2023. Ounces Q1 2023 Q2 2023 Q3 2023 Q4 2023 Full Year 2023 Fox Complex, Canada G
Slide 33: Historic Consolidated Annual Production
Historic Consolidated Annual Production 105 139 138 155 146 152 176 174 115 154 133 155 0 50 100 150 200 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thousands GEOs
Slide 34: 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 35: 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
McEwen Mining — TD Securities Global Mining Conference 2024 on 6ix