Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — John Tumazos Very Independent Research Conference 2022
46 slides from Mcewen's conference presentation, Feb 18, 2022
Slide 1: Reasons to Buy MUX
Reasons to Buy MUX 1. Surfacing Copper Value 2. Turnaround in Progress 3. Unique Insider Ownership All figures in US Dollars John Tumazos Very Independent Research Conference February 17, 2022
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: Surfacing Value: Los Azules Project, San Juan, Argentina
Surfacing Value Los Azules Project San Juan, Argentina
Slide 4: Surfacing Value for MUX
MUX Surfacing Value for MUX • $ 80 M financing expected to close Q1 2022 • Fully fund to prefeasibility stage and complete by end H2 2023 • Pre - Money Value used for $80 M financing 1 : $175 M or $0.006 / lb CuEq • Post financing ownership: M – millions. MUX shares outstanding: 459 M. 1. Ongoing fi
Slide 5: Copper project acquisition comparables
MUX Target (Project) Buyer Location PA Date Cu Price @ PA Date Development Stage CuEq R&R Acquired (billion lbs) CuEq Grade % US$/ lb Cu Eq 1 Peregrine Metals Ltd (Altar) Stillwater Mining Company Argentina 07/11/2011 $4.37 Resource 12.6 0.45% $0.036 2 Mason Resources Hudbay Minerals USA 10/31/2018
Slide 6: Los Azules: A Significant Copper Resource
MUX Los Azules: A Significant Copper Resource Source: Preliminary Economic Assessment (PEA) Oct 16, 2017 - “NI 43 - 101 Technical Report – Preliminary Economic Assessment Update for the Los Azules Project, Argentina” (Hatch). Conceptual Process Plant Indicated Inferred Animated Project Video: https:
Slide 7: McEwen Copper: Use of Funds for Los Azules
—— McEwen Copper: Use of Funds for Los Azules Purpose: e De-risk & build value for the optimal scale e Update PEA H2 2022 e Prefeasibility study (PFS) H2 2023 e Upgrade resource estimate with more drilling & test extents e Construct new year-round road access e Begin early stakeholder engagement and
Slide 8: Los Azules - Drilling Program
MUX Los Azules - Drilling Program 44,000 meters Definition Drilling + 9,000 meters Geotechnical / Metallurgical 3 drills on site, ramping up to 7 drills in Feb 2022
Slide 9: Los Azules – Exploring Further for Deeper Opportunity
MUX Los Azules – Exploring Further for Deeper Opportunity 0.46% Cu / 120 m 1.12% Cu / 50 m 0.50% Cu / 98 m
Slide 10: Work Started in July '21 to Open the Exploration Road
MUX Los Azules: Work Started in July ‘21 to Open the Exploration Road
Slide 11: Northern Access Road
MUX 22 km of 118 km Northern Access Road Completed Awaiting permits in Q1 2022, to advance construction of the remaining sections Expected completion date of the Northern Access Road H2 2022 Villa Nueva Los Azules
Slide 12: Ge SANE Whittle
Ge SANE Whittle ue MCLENNAN DESIGN 7 bavaas Consulting Mountain Pass LLC
Slide 13: Community Engagement for Los Azules
MUX Community Engagement for Los Azules 5 Community Plans Ongoing – Led lights for the village – Completed – Construction Materials for Health post in Villa Nueva (90% completed) – Support police infrastructure – Eco friendly totems for Calingasta – provide hot water and usb charges using solar powe
Slide 14: Los Azules Project Leadership Team
MUX Los Azules Project Leadership Team Michael Meding – Vice President Michael Meding has over 20 years of international experience, mostly with major mining companies such as Barrick Gold and Trafigura, including extensive experience with project development and operations in Argentina . While at B
Slide 15: Earlier Stage Project That Ranks #1
MUX Los Azules Earlier Stage Project That Ranks #1: Lower Altitude, Closer to Power and Easier Access Project Los Azules Rank Los Azules Filo Del Sol Josemaria Veladero Stage PEA PFS FS Mining since 2005 Altitude Pit 3,100 – 4,100 m 4,900 – 5,300 m 4,000 – 4,500 m 3,700 – 4,600 m 1 / 4 Camp 3,300 m
Slide 16: Los Azules in the Prolific Andes Copper Belt
— LOS AZULES in the Prolific Andes Copper Belt ‘a © In Pro-Mining San Juan province, Argentina © Companies mining, developing & exploring in San Juan: Barrick Glencore Fortescue Lundin Mining Aldebaran Resources Mineros (Ex Yamana) Mux Veladero mine & Pascua Lama project El Pachon mine 2,930 km? in
Slide 17: A New Copper Developer
=== A New Copper Developer McEwen Copper e Owns 100% of Los Azules e Los Azules is One of the world's largest undeveloped copper porphyry deposits Los Azules San Juan, with +$40 M already in the bank Ragantina e Current private raise $60-80 M, e Plan to IPO within 9-12 months
Slide 18: MUX: Diversified Growth Pipeline
MUX Fox (Froome) Gold Bar El Gallo MUX: Diversified Growth Pipeline Gold, Silver, Copper Assets Gold 6 Development Projects Fox (Grey Fox, Froome, Stock, Fuller) Copper Los Azules El Gallo (Fenix) Argentina Mexico Nevada Ontario 4 Mines Gold Gold & Silver Gold & Silver San Jose
Slide 19: Dream Team
MUX Dream 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 into The Canadi
Slide 20: 2021 Highlights
MUX 2021 Highlights 1. Gold Equivalent Ounces (GEOs) are calculated based on a gold to silver price ratio of 73:1 for Q3 2021, 68:1 for Q1 and Q2 20 21, 94:1 for Q1 2020, 104:1 for Q2 2020, 79:1 for Q3 2020 and 75:1 for full year (FY) 2021 Production Guidance. 2. Liquid assets is non - GAAP financia
Slide 21: Improved Production in 2021
MUX IMPROVED Production in 2021 Q4 & Year 2021 Compared to Q4 & Year 2020 2021 vs 2020 INCREASED Production in Q4 2021 INCREASED Production in 2021 Q4 2021 (GEOs) Q4 2020 (GEOs) Q4 2021 vs Q4 2020 2021 (GEOs) 2020 (GEOs) 2021 vs 2020 Gold Bar Mine, Nevada 10,000 5,900 +69% 43,900 27,900 +57% Fox Com
Slide 22: Fox PEA: Higher Production, Longer Life Case A
MUX Fox PEA: Higher Production, Longer Life Case A * Highlights * Case A includes Froome into the development of mines at Stock West, Grey Fox and Fuller deposits for the Fox PEA . Based on the Jan 26 , 2022 , press release “ McEwen Mining : Fox PEA – Higher Production, Longer Life” . Gold Price Sen
Slide 23: Fox PEA: Higher Production, Longer Life Case B
MUX Fox PEA: Higher Production, Longer Life Case B * Highlights * Case B is to show the incremental return on investment provided by the expansion of the Fox mill to 2 , 400 TPD and the development of mines at Stock West, Grey Fox and Fuller deposits . Based on the Jan 26 , 2022 , press release “ Mc
Slide 24: Exploration Driving Near-Term Production Growth & Mine Life
MUX Exploration Driving Near - Term Production Growth & Mine Life Overview Fox Complex Stock West Initial Mineral Resource Estimate Green Carbonate (CGR) Extension to FW Stock Mine Stock Mine and Grey Fox Plunge Extensions Shallow Extensions and Some Deeper Drilling Nevada Exploration Resource Expan
Slide 25: Fox Complex - Froome: Longer Intercepts, Shallower Depth
MUX Fox Complex - Froome: Longer Intercepts, Shallower Depth Than Black Fox Expansion Potential U/G Definition & Delineation 76% Success Rate! One Year Added to Mine Life! Above 140L & Below 200L Longitudinal Section Looking North
Slide 26: Fox Complex - Stock Exploration
MUX Surface - 500mL Stock West Stock Mine 137 Koz Au historic production Longitudinal Section Looking North - 500mL - 330mL - 330m Fox Complex - Stock Exploration Gold Grade x Width (g/t x m) 50 to 100 25 to 50 10 to 25 5 to 10 >100 Stock East 200m envelope Next Discovery Near - Term SM21 - 202
Slide 27: Stock Exploration: From Discovery to Resource
MUX Fox Complex: Stock Exploration From Discovery to Resource Surface Cog 0.5g/t Au X - Section looking NE Longitudinal Vertical Section Looking NW SM21 - 202 4.29 g/t / 21 m S19 - 95 27 g/t / 7 m Stock West MRE Meas+Ind = 144,000 ozs Au @ 3.83gpt Au Inferred = 111,000 ozs Au @ 3.30gpt Au
Slide 28: Gold Bar: Mineralization Model
MUX Gold Bar: Mineralization Model WNW ESE Shallow oxide/sulphide and extension of existing mineralization Deep large, high - grade Au potential ( untested ) Target Types Generalized Cross Section Looking Northeast Possible Intrusion?
Slide 29: Gold Bar: Near Mine Extensions
MUX Gold Bar: Near Mine Extensions Ridge North Connector Footwall Cabin North Cabin South Pick Southwest East Pick Extension Confidence Level High Medium Lower Resource Expansion Target Area Existing Open Pit 2022 Indicated Resource Potential Ridge North East Pick Extension Pick Southwest Cabin Sout
Slide 30: Gold Bar - SW Pick Drilling
MUX Gold Bar - SW Pick Drilling GBSW001 (assays pending) GBSW006 (assays pending) GBSW005 GBSW003 (in progress) GBSW002 (assays pending) GB706 0.856 g/t Au, 150 - 270 ft, r=88% GB710 0.682 g/t Au, 155 - 220 ft, r=93% Fault Zone Resource Expansion 2022 Near - Mine Potential Updated Mapping Simplified
Slide 31: San José - High Grade in the Americas
MUX San José Mine N 20 k m 12 miles San José - High Grade in the Americas (49% - Owned) Property outline - Large Property - High Grade Mine - Surrounds Newmont - Ciclon Este New Greenfield Project
Slide 32: San José – Q3 San Jose & Saavedra Drilling Results
MUX San José – Q3 San Jose & Saavedra Drilling Results Amelia Tensional HVN Olivia SJD - 2329: 3.0m @ 13.0g/t Au & 1,740g/t Ag SJD - 2342: 4.3m @ 14.9/t Au & 1,381g/t Ag SJD - 2361: 0.9m @ 3.4g/t Au & 323g/t Ag SJD - 2346: 1.8m @ 6.7g/t Au & 582g/t Ag SJD - 2385: 0.8m @ 2.6g/t Au & 196g/t Ag SJM - 5
Slide 33: San José: Ciclon Este
MUX San José - High Grade in the Americas (49% - Owned) Ciclon Este Location from San José Straight line: 70 km south Access by Routes 270 km Partially surrounded by Mining properties of MSC (Red polygon) that we have reviewed and we have no continuity of mineralization. 12 km of veins with high sur
Slide 34: San José: Fiorella Reyna
MUX San José - High Grade in the Americas (49% - Owned) Fiorella Reyna Stockwork y vetillas paralelas a las vetas Sulfosales Ag en vinillas en roca caja V. María Objective for 2022: Demonstrate continuity of high silver grades @ Depth Six holes and 1,800 meters of drilling planned 1 st phase of expl
Slide 35: A CEO With a Financial Commitment
MUX A CEO With a Financial Commitment $ 205 M 18 % $1/ Y r Investment 1 Ownership Salary Rob McEwen 18% Institutional 26% Retail 56% 1 - Rob McEwen’s investments: $1 40 million in McEwen Mining shares and $25 million (Aug 13, 2018 press release) , plus $40 million in McEwen Copper shares. 2 - Averag
Slide 36: Contact for Additional Information
MUX Rob McEwen Chairman and Chief Owner McEwen Mining & McEwen Copper rob@mcewenmining.com Stefan Spears Vice President, Corporate Development stefan@mcewenmining.com (647) 408 - 1849 Tara Saratsiotis Executive Assistant to Rob McEwen tsaratsiotis@mcewenmining.com (647) 258 - 0395 x230 Contact for A
Slide 37: Appendix
MUX Appendix
Slide 38: Los Azules: Robust Preliminary Economics
MUX Los Azules: Robust Preliminary Economics 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 approval basis (
Slide 39: Los Azules: NPV Sensitivity
—— Los Azules: NPV Sensitivity Cu Price Bs 34 ‘Au Price After-tax NPV(8%)' a ' 5 3 fg Pate © $2.2Bat $3.00/Ib =o Grade copper eae CAPEX os e $5.7Bat $4.50/Ib a 90 OPEX copper = 44 OPEX - $2 50% -25% 100% +25% +50% $1.15 $2.25 $3.00 $3.75 $4.50 Change from Base Case (%) Copper Price (S/Ib) Preliminar
Slide 40: Los Azules Vision: EverGreen Objectives
MUX 1. Modern solutions good for the people, planet and profit 2. Design the most technologically advanced copper mine possible 3. Minimize negative impacts while maximizing positive social impacts 4. Lowest carbon footprint, greenest mine possible; maximize green energy solutions 5. Maximize local
Slide 41: Los Azules Development to Use Digital Twinning
MUX Los Azules Development to Use Digital Twinning • Project team will optimize results using digital twinning, an integrated dynamic simulation model for mine and processing plant facilities based on Andritz Automation’s IDEAS software https://www.andritz.com/products - en/group/automation/simulati
Slide 42: Digital Twinning Will Speed Up the Advancement of the PFS
MUX Digital Twinning Will Speed Up the Advancement of the PFS The digital twin simulation will improve project - related processes and engineering analysis. Anticipated Benefits - Dynamic scenario analysis for consideration of project alternatives and optimization - Integrated mine to mill analysis
Slide 43: Incentive Cost Curve for Unapproved Copper Projects
MUX 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 Incentive Cost Curve for Unapproved Copper Projects New Prosperity Tenke Phase 3 Pebble El Abra Mill Al Arco Galore Creek Los Azules Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Kamoa - Kakula Resol
Slide 44: MUX: Reserves & Resources
MUX MUX: Reserves & Resources Mineral Resources Source: Company disclosures to January 26, 2022. Note: Mineral Resources inclusive of Mineral Reserves (where applicable). Attributable Gold Resources Measured Indicated Measured + Indicated Inferred 43 - 101 Au Resources Tonnes (millions) Grams per to
Slide 45: MUX: Reserves & 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 46: 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
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