Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Shareholder Meeting (July 2024)
81 slides from Mcewen's shareholder meeting presentation, Jul 3, 2024
Slide 1: The Excitement Annual Meeting 2024
The Excitement Annual Meeting 2024 June 27, 2024
Slide 2: MUX Annual Meeting 2024 Agenda
Formal Part of the Meeting Carmen Diges, General Counsel Company Presentation Annual Meeting 2024 Rob McEwen, Chairman & Chief Owner Finance Review Perry Ing, Chief Financial Officer McEwen Copper Michael Meding, VP & GM - McEwen Copper Operations Bill Shaver, Chief Operating Officer Exploration Fox
Slide 3: Formal Part of the Meeting
Formal Part of the Meeting Carmen Diges , General Counsel
Slide 4: Annual Meeting 2024 – Rob McEwen
Annual Meeting 2024 Rob McEwen, Chairman & Chief Owner
Slide 5: 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 6: Non-GAAP performance 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 . S . GAAP, they may
Slide 7: MUX's Gold, Silver & Copper Properties
3 Mines Fox Complex (100%) Gold Bar (100%) San José (49%) 1 Development Project El Gallo/ Fenix (100%) Au + Ag Cu McEwen Copper (47.7%) Elder Creek Los Azules 2024 Guidance 130,000 - 145,000 GEOs 1. US $82 Million @ $10/shr 2. ARS $30 Billion + US $30 Million @ ~$19/shr 3. ARS $42 Billion + US 10 Mi
Slide 8: MUX Running Ahead of the Herd
-50 0 50 100 150 200 250 300 350 Sep/2022 Jan/2023 May/2023 Sep/2023 Jan/2024 May/2024 MUX GDX GDXJ Nasdaq Gold Silver Copper Dow Gold +35% Copper +28% Nasdaq +51% 8 % Source: Bloomberg. Chart from Sep 1, 2022 (MUX $2.97) to June 26, 2024 (MUX $9.26). Investments in McEwen Copper Stellantis ARS $30
Slide 9: Los Azules Copper as a Gold Equivalent Would be a Giant Gold Deposit
Los Azules Copper as a Gold Equivalent Would be a Giant Gold Deposit 1 $2.5 Billion Initial Capex 3 Years Payback Period 27 Years Mine Life (mining only 1/3 of the resource) $2.9 Billion After Tax NPV (8%) 22 % IRR This disclosure should not be taken to modify or update the conclusions of the 2023 P
Slide 10: MUX's Value Proposition Based on the Sum of Its Parts
MUX’s Assets Range of Estimated Value per MUX Share 1 Low Mid High McEwen Copper (47.7%) 2 Los Azules $4.90 3 $7.73 4 $24.72 5 Royalty Portfolio $0.71 6 $0.71 6 $0.71 6 Gold & Silver 7 $5.67 8 $11.71 9 $17.74 10 Current Share Price (NYSE) Total $11.28 $20.15 $43.17 $9.26 MUX's Value Proposition Ba
Slide 11: Finance Review
Finance Review Perry Ing, Chief Financial Officer
Slide 12: Improved Financial Picture
Cash Balance Less Debt Equity Financings Production Increasing Liquidity Q2 2024 Est. $36 M Q4 2023 $23 M Q4 2022 $1.8 M Strengthening Balance Sheet Q2 2024 & Q4 2023 $40 M (Principal repayments start in 2025) Q4 2022 $65 M Raised FT Funds at Increasingly Higher Values 2024 June $22 M FT @ $14.36/sh
Slide 13: 2024 Production and Cost Guidance
2024 Production Guidance Fox 40 - 42 K GEOs Gold Bar 40 - 43 K GEOs San Jose (49%) 50 - 60 K GEOs 2024 Cost Guidance Fox $1,450 - $1,550 / GEO Gold Bar $1,650 - $1,750 / GEO San Jose $1,500 - $1,700 / GEO 13 2024 YTD Production $1,600
Slide 14: 2025 and Beyond Potential Opportunities
14 2025 and Beyond Potential Opportunities for 200 K GEOs Annual Production Fox Fenix Grey Fox Timberline Gold Bar San José Possible 45% Growth in Production Existing Operations & Projects Potential Projects
Slide 15: Los Azules
a ~~ LOS AZULES a a
Slide 16: South America & Argentina in Focus
Los Pelamrbes Antofagasta Andina Codelco Los Bronces Anglo American Fraser Institute Ranking 2024 Latin America South America & Argentina in Focus 40% of global coper comes from Chile and Peru In - Country Multiple Key Industry Players Argentina - An Emerging Tier 1 Mining Jurisdiction Significant P
Slide 17: Political Context
Political Context ys Fg LOS AZULES McEwen@Coprer
Slide 18: A World-class Resource in an Emerging Copper Belt
McEwen Mining’s President, Rob McEwen and Los Azules’ General Manager, Michael Meding, held a one - hour meeting with the President of Argentina, Javier Milei A World - class Resource in an Emerging Copper Belt With a Vision to Build for the Future The mine has a 27 - year life per PEA , is in the l
Slide 19: Argentina policy changes and RIGI
President Milei's government has promoted changes in Argentina's financial and fiscal policies, which are focused on private investment and freedom as a fundamental principle. Currently under legislative consideration by Congress is the "Basic Law and Starting Points for the Freedom of Argentinians"
Slide 20: RIGI tax incentives
Income Tax • 25% corporate tax rate (currently 35%). • Accelerated depreciation. Equipment 2 years. Infrastructure 60% useful life (similar to Mining Investment Law). • Unlimited loss carryforward. Adjusted following inflation. Transferable to third parties after 5 years (not currently possible). •
Slide 21: PEA
PEA iD cenieon LOS AZULES McEwen@ Copper
Slide 22: Project Metrics
Project Metrics ($3.75/ lb Cu) 175 KTPA Cu Base Case +3.2% Cu Recovery Updated Base Case* LoM △ Mine Life 27 yrs 27 yrs Strip Ratio 1.16 1.16 Initial Capital Cost $2,462 Million $2,462 Million Sustaining Capital Cost $2,243 Million $2,243 Million Average Copper Recoveries 72.8% 76.0% +3.2% Copper Pr
Slide 23: Feasibility Study Next steps
Feasibility Study Next steps
Slide 24: Project Study: Field Investigations On-Track
Project Study | 1 2 Field Investigations On - Track Resource Modeling & Geology On - Track 4 Mining & Mine Planning Metallurgical Testing 3 Engineering & Design 5 x Leach pad - preliminary design complete, final design underway x Flow sheet - selected, design criteria complete x Facilities layout -
Slide 25: Feasibility Study Next Steps by Q1 2025
Jun - 24 Jul - 24 Aug - 24 Sep - 24 Oct - 24 Nov - 24 Dec - 24 Jan - 25 Feb - 25 Mar - 25 Apr - 25 May - 25 Finalize Feasibility Study Resource Model & Inputs Mine Design Development FS Mine Production Schedule Complete FS Field Investigations Metallurgical Testing Finalization Phase 2 Columns Phase
Slide 26: Exploration
Exploration iD cenieon LOS AZULES McEwen@Coprer
Slide 27: Geology: Results validating PEA estimate
Geology | Results are validating PEA estimate | Section 40 AZ23292 = 0.77% Cu over 349 m , including 0.86% Cu over 232 m (validating same grades as PEA) Map of pit showing location of cross section. Blue dots are drill hole locations to date: 27 0.77% Cu Holes with blue lines are post - PEA holes
Slide 28: Density of Drilling Allows Reclassification of Resources
Geology | Density of Drilling Allows Reclassification of Resources | Section 44 Holes with blue lines are post - PEA drill holes 28
Slide 29: Exploration drilling finds mineralization north and south
Geology | Exploration drilling continues to find mineralization to the north and south 29 Early Mineral Porphyry in Red 0.31% Cu over 70m 400 m 700 m
Slide 30: Possible Discovery of a New Porphyry System (Tango)
One drill hole was completed this season and intercepted 106 meters of 0.11% Cu at the end of the hole (blue square). Exploration | Five key elements of a large porphyry system have been recognized at Tango: 1. Multiple Intrusives 2. Porphyry Copper Alteration 3. Porphyry Copper Veining 4. Porphyry
Slide 31: Sustainability
Sustainability iD cenieon LOS AZULES McEwen@Coprer
Slide 32: Lower Water Consumption & Lower Carbon Footprint
Sustainability | • Los Azules will reduce effective water usage by 75% to 80% vs production of concentrates – solution will be recirculated in the leach pad. • Leaching uses 35% less electricity vs milling - only requires crushing. • No tailing dam required – saves water and lower seismic risk. • Pr
Slide 33: Renewable Energy
Sustainability Renewable Energy Los Azules Committed to Green Energy Our offices are supplied with 100% renewable energy Energy Generation Overview: • Annual Total: 50,037 kWh • Annual Consumption: 45,825 kWh • Net Annual Injection to Grid: 4,212 kWh 2024: • Solar energy generation: 18.66 MWh • CO 2
Slide 34: Community Affairs: Creating Value With Our Communities
Community Affairs | Creating Value With Our Communities Citizen Participation Program in Calingasta 300+ people participated in the initial EIA presentation in 2023. 1,600+ people have attended presentations in communities (Citizen Participation Program) in 2024. This represents almost 20% of the to
Slide 35: Summary
Summary tt ge LOS AZULES McEwen@Coprer
Slide 36: 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 - An Emerging Tier 1 Lithium & Copper Mining Jurisdiction Experienced Board and Management Team Worl
Slide 37: State of the Art Renewable Energy
STATE OF THE ART RENEWABLE ENERGY COPPER ELECTROWINNING FACILITY
Slide 38: Operations
Operations Bill Shaver, Chief Operating Officer
Slide 39: Operations: HSE Performance
• Our safety performance at mining operations remains stellar - Gold Bar has worked for over 4 years & 4 months of No Lost Time Incidents; a great achievement - Fox Complex has worked for 2 years & 10 months of No Lost Time Incidents also an achievement to celebrate • These statistics also include a
Slide 40: Operations: Gold Bar Mine
• Mining operations on track with guidance • We built and commissioned a new leach pad in H2 2023, now fully operational • Leach pad inspection process is in full compliance • As you will hear later our exploration program going very well • We are excited about the upcoming Timberline acquisition, a
Slide 41: Operations: Fox Complex, Timmins
• Our Timmins operations are entering an exciting time as we start the construction of the ramp for the new Stock mine operation • Mining at the Froome Mine will be completed over the next 15 months and we will transition to the Stock operation commencing in H1 2025 • We have increased mill capacity
Slide 42: Operations: Mexico & Fenix
• In Mexico we are continuing to work on the permitting process for the Fenix Project, which will reprocess the leach pad material • We hope this will proceed with the new government in power • We are working on a plan which allows us to eliminate some of the permitting process and get us to operati
Slide 43: Exploration Fox Complex
Exploration Fox Complex Sean Farrell, Chief Exploration Geologist
Slide 44: Fox Complex: Resource Building & Exploration Success
• 70 M oz Historic Production in the Timmins Camp • > 30 km of Primary & Secondary Structural Controls • 3.3 M oz Historic Production Including 1.0 M oz at Fox East • Gold Resources: 1.90 M oz M+I @ 4.21 g/t Au and 0.55 M oz Inferred @ 3.60 g/t Au • Exploration Budget: $7.3 M for 2024 $10.0 M for 20
Slide 45: Stock Project
Stock Project ‘N 7 May-24 West Zone & Main Zone Oct-23 Indicated: 206,000 oz @ 3.31 gpt Inferred: 132,000 oz @ 2.96 gpt Total for Stock Project Indicated : 281,000 oz @ 3.12 gpt Inferred: 181,000 oz @ 2.87 gpt East Zone Indicated : 75,000 oz @ 2.70 gpt Inferred: 50,000 oz @ 2.66 gpt *Contour shapes
Slide 46: Stock Project: Exploration Potential
46 Stock Project | Exploration Potential
Slide 47: Stock Project: East Zone
Stock Project | East Zone SEZ24-104 3.0g/t Au /6.7m SEZ24-111 6.7 g/t Au /6.8m SEZ24-109 3.9git Au /6.4m SEZ23-69 7-igit Au/4.8m SEZ23-71 4.5git Au 7.7m SEZ24-118A 4.2git Au 6.3m SEZ23-70 4.3git Au /4.8m SEZ24-85 3.5g/t Au /5.3m -100m SEZ24-80A . - @ 5.0g/t Au /2.9m 7 5.9g/t Au /13.4m SEZ24-95 a -10
Slide 48: Stock Project: Exploration & Delineation
• The principal focus of the late 2023 and early 2024 drilling campaigns at Stock were on the East Zone • The goal was to identify near - term ounces that could potentially generate early revenue for the Stock Project • Key results (all intercepts are true widths) • The block model performed very we
Slide 49: Grey Fox: Over 1,100,000 oz Au Deposit
49 Grey Fox | Over 1,100,000 oz Au Deposit
Slide 50: Grey Fox: Near Term Ounces, Long Term Growth
Much of the drilling at Grey Fox from late 2023 and into 2024 concentrated on identifying near - term ounces for the Fox Complex Drilling at Gibson, Whiskey - Jack and Grey Fox South successfully delineated both shallow (< 300m elev ) and deeper (> 300m elev ) longer - term mineralization Key result
Slide 51: Gibson Area: Abundant Visible Gold
51 Gibson Area | Abundant Visible Gold & Good Results
Slide 52: Exploration Gold Bar
Exploration Gold Bar Robert Kastelic, Exploration Manager
Slide 53: Gold Bar Complex: Location Map
53 Gold Bar Complex | Location Map • In North - Central Nevada • On Battle Mtn - Eureka Trend South of Cortez • Timberline’s property South of Eureka Gold Bar
Slide 54: Gold Bar Complex: Adding Near-Term Resources in 2024
• Three Near - Term Targets within Mine Plan of Operations - Cabin Pit - Gold Bar South Pit - Hunter Target • Successful drill results • Expanding resources for near - term mining • $7.2 M Exploration Budget for 2024 54 Gold Bar Complex | Adding Near - Term Resources in 2024 LW0
Slide 55: Cabin
• Targeting area between North & South pits • Mineralization open to northeast • Drilled 28 holes in 2024 • Most holes intersected gold grades above cutoff • Block model just completed, mine planning underway 55 Cabin LW0 LW1
Slide 56: Gold Bar South
• Eighteen holes drilled in 2024 • Most holes intersected gold grades above cutoff • Growing shallow mineralization north of pit • Growing higher - grade mineralization southeast of pit Pit 56 Gold Bar South LW0 LW1
Slide 57: Hunter
• Gold mineralization starts at surface • Six holes drilled in 2024 • First two holes returned 240 ft @ 1.01 gpt Au and 90 ft @ 0.75 gpt Au • Mineralized zone is 450 ft x 200 ft x 400 ft . 57 HunterLW0
Slide 58: Timberline Resources Eureka Project
• Located 30 miles from Gold Bar Lookout Gold Resource 508 Koz Au @ .018 oz/T (0.687 g/t) Au • 154 Koz Au past production Lookout & Windfall • Strong exploration potential along N - S mineral trend 58 Timberline Resources Eureka Project
Slide 59: San José
San José Stefan Spears, VP Corporate Development
Slide 60: San José Mine, Santa Cruz, Argentina
2024 • 10% increase in underground production, 15% increase in mill thoughput • $7.5 million exploration budget • Underground exploration adding mineralization in Frea vein: - Strong consistent mineralization, 250 m along strike and 200 m vertically - Hole SJM - 663: 12 m of 12.7 g/t Au & 101 g/t Ag
Slide 61: San José Exploration
SJD - 2788 2.7 m of 7.6 g/t Au & 360 g/t Ag and 6.2 m of 23.3 g/t Au & 314 g/t Ag SJD - 2789 1.6 m of 3.2 g/t Au & 287 g/t Ag and 1.5 m of 3.5 g/t Au & 281 g/t Ag Odin Open Pit (plan map) 61 San José Exploration
Slide 62: Closing Remarks
Closing Remarks Rob McEwen, Chairman & Chief Owner
Slide 63: Global Central Bank Gold Purchases
63 Global Central Bank Gold Purchases, in Tonnes, Q1 2010 - Q1 2024 Source: World Gold Concil , Incrementum AG
Slide 64: US Debt Held by Foreign Central Banks
64 US Debt Held by Foreign Central Banks ( Ihs ), as % of Total Debt, and Central Bank Gold Holdings ( rhs ), as % of Currency Reserves Q1 1970 – Q4 2023 Source: Crescat Capital, Reuters Elkon , Incrementum AG
Slide 65: US Total Public Debt
65 US Total Public Debt, in USD Trillion Q1 1970 – Q4 2023 Source: Reuters Elkon , Incrementum AG
Slide 66: Q & A
Q & A
Slide 67: Appendix
Appendix
Slide 68: Exploration Company of the Year (2023)
Communication & Institutional Affairs Awarded Exploration Company of the Year (2023) McEwen Copper was honored by the Panorama Minero organization at the Gold, Silver, and Copper Seminar for its performance at Los Azules driving forward project development. This is one of the most prestigious awards
Slide 69: Argentine-German Meeting of Critical Minerals
1 st Argentine - German Meeting of Critical Minerals at the Argentine Embassy in Berlin. Presentation of Argentina's capabilities as a safe, reliable and sustainable supplier to the mining and critical minerals industry before an in - person audience of more than 140 investors, politicians and repre
Slide 70: Communication & Institutional Affairs
Communication & Institutional Affairs 70
Slide 71: Participation in Local and International Institutions
Participation in Local and International Institutions: • Executive Committee of the Argentine Chamber of Mining Entrepreneurs (CAEM). • Member of Group of Mining Exploration Companies of the Argentine Republic (GEMERA). • Vice president of the mining board of the Argentine Industrial Union (UIA). •
Slide 72: RIGI objectives
• Promotion of investment : The RIGI aims to incentivize private investment in agroforestry sector, infrastructure, mining, energy and technology aiming to stimulate economic activity and creation of jobs . • Competitiveness : By offering fiscal and financial benefits, it seeks to improve the compet
Slide 73: RIGI beneficiaries, investment and restrictions
Beneficiaries • Single project vehicles (SPV) applying for the regime. • Requires filing an investment project in agroforestry sector, infrastructure, mining, energy and technology. Investment • Minimum amount USD 200m to USD 900m depending on industry, in eligible assets. • Strategic project if it
Slide 74: Political Context: Provincial Context
Mining in San Juan, Argentina is regulated by the province, with both previous and current government consistently supporting mining development and investment. According to the latest Fraser Institute Report, San Juan ranks as the second most favored location for investment in Argentina. Our Enviro
Slide 75: Technical Evaluation Committee visited Los Azules
Technical Evaluation Committee (CIEAM) visited Los Azules 75
Slide 76: Our Vision of a Mine Designed For The Future
Sustainability | Our Vision of a Mine Designed For The Future World Dz s First Carbon Positive Copper Mine The Safest & Healthiest Mine in the World The Most Valuable Copper Mine in the World A Positive & Highly Desirable Workplace Inspiring Change in the Mining Industry Building a Technologically Ad
Slide 77: Health, Safety and Permits
Health, Safety and Permits • 0 LTI (Lost Time Incidents) : 10 months and over 1.2 million man - hours without LTI. • 0 REI (Reportable Environmental incidents): None project to date • All permits in good standing, 6 th environmental permit granted for continued exploration • Zero claims, fines or in
Slide 78: Community Affairs: Strategic Alliances in Education
Collaboration agreement with the Provincial Ministry of Education Minister of Education, Silvia Fuentes, Sustainability Manager, Mario Hernandez, and Administration and Human Resources Manager, Franco Rizzetto. 78 Community Affairs | Strategic Alliances in the Education Sector Collaboration agreemen
Slide 79: Procurement: Community Development
Procurement | Community Development • More than USD 8.3 million procured from communities in the Calingasta District during the 2023/2024 site investigation campaign. • There are currently 77 active suppliers from the community. • 159 suppliers in the community have been identified, in a district wi
Slide 80: Board of Directors
David R . Beatty Served on 39 (10 mining) different boards of directors in Canada, America, Mexico, Australia and England, and been chairman of 9 (5 mining) public companies. Professor Emeritus of Corporate Governance, University of Toronto. Serge Gattesco Chartered Professional Accountant with 35 y
Slide 81: Experienced Management Team
Over 250 years combined experience at top tier mining projects & operations in San Juan, Argentina, with major mining compani es such as : Experencied Management Team | With a Track Record of Success 81