Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — Shareholder Meeting (July 2022)
45 slides from Mcewen's shareholder meeting presentation, Jul 7, 2022
Slide 1: NYSE & TSX Annual Meeting 2022
NYSE & TSX Annual Meeting 2022 July 7, 2022
Slide 2: MUX Annual Meeting Agenda
MUX Annual Meeting Agenda Formal Part of the Meeting Carmen Diges, General Counsel Company Presentations Annual Meeting 2022 Rob McEwen, Chairman & Chief Owner Operations William Shaver, COO Exploration Stephen McGibbon, EVP - Exploration Los Azules Michael Meding, VP & GM - McEwen Copper Financials
Slide 3: Formal Part of the Meeting
NYSE & TSX Formal Part of the Meeting Carmen Diges General Counsel
Slide 4: Annual Meeting 2022 - Rob McEwen
NYSE & TSX Annual Meeting 2022 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 The technical contents of this presentation, including reserves, have been reviewed and approved by solicitation of an offer to subscribe for or to buy any of the securities described
Slide 6: Cautionary Note Regarding Non-GAAP Measures
MUX: Cautionary Note Regarding NON-GAAP Measures In this presentation, we have provided information prepared or calculated according to Earnings from Mining Operations U.S. GAAP, as well as provided some non-U.S. GAAP ("non-GAAP") performance measures. Because the non-GAAP performance measures do no
Slide 7: Gold, Silver, Copper
Annual Meeting 2022 Gold, Silver, Copper Rob McEwen Chairman & Chief Owner Fox Complex Timmins, Canada (100%) • 3 Mines Gold Bar Nevada (100%) Fox Complex Gold Bar San José El Gallo – Fenix Project Mexico (100%) • 76% McEwen Copper Los Azules Argentina (76%) San José Argentina (49%) MUX
Slide 8: 2022 Production & Guidance
2022 Production & Guidance Q2 2022 YTD 2022 Guidance Ranges Ounces Q1 2022 Preliminary Preliminary Production Ounces Cash Costs/ GEO AISC/ GEO Fox Complex, GEO 7,700 11,900 19,600 44,000 - 49,000 Canada (100%) $1,310 - $1,410 $1,570 - $1,690 Gold Bar Mine, GEO 6,300 5,300 11,600 38,000 - 44,000 Neva
Slide 9: Fox Complex Operations Update
Operations Fox Complex Operations Update William Shaver Chief Operating Officer • Froome production ahead of schedule on tonnes & ounces Fox Complex Ontario, Canada • Mine development on target • Mill recovery slightly higher than budget • Present stockpile on surface 60,000 tonnes • Mill improvemen
Slide 10: Fox Complex Production
Fox Complex Production 2022 Production Guidance 44,000 – 49,000 Gold oz 6,000 Budget Actuals 5,000 4,000 OZ AU 3,000 2,000 Production 1,000 Forecast 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 2022 MUX
Slide 11: San José Operations Update
San José Operations Update (49% Owned) § Large Property Property § High Grade Mine outline San José Argentina § Surrounds Newmont San José § On Track to Meet Annual Guidance Mine 342 gpt Silver Reserve Grade 1 5.7 gpt Gold Mine Life 2 6 Years Newmont Cerro Negro Mine 2.5 - 2.8 Moz Silver & 2021 Prod
Slide 12: Gold Bar Operations Update
Operations Gold Bar Operations Update William Shaver Chief Operating Officer 6 miles 10 km MUX
Slide 13: Gold Bar Highlights
Gold Bar Highlights • H1 2022 troubled with contractor manpower recruitment, which is an issue for all operations in Northern Nevada • The manpower recruitment being addressed by the contractor with help from Gold Bar by supplementing accommodation cost • Q2 production less than scheduled due to car
Slide 14: Gold Bar Mine Production
Gold Bar Mine Production 2022 Production Guidance 38,000 – 44,000 Gold oz1 7,000 Budget Actuals 6,000 5,000 4,000 OZ AU 3,000 2,000 Production 1,000 Forecast 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 2022 MUX 1. Assumes Gold Bar South begi
Slide 15: Fox Complex – Good Address
Exploration Fox Complex – Good Address Stephen McGibbon EVP - Exploration • 70 million oz historic production in the Timmins Camp Fox Complex • >30 km of Primary & Secondary Structural Controls Ontario, Canada • 3.3 M oz historic production including 1.0 M oz Fox East • Gold Resources: 1.94 M oz M+I
Slide 16: Fox Complex – Black Fox, Froome, Grey Fox
Fox Complex – Black Fox, Froome, Grey Fox Flow-Through Exploration Success Black Fox Mine 950,000 oz Produced Froome Mine 194,000 oz Au M+I @ 4.22 g/t 29,000 oz Au Inferred @ 3.32 g/t De st o r -P or cu A- pi 1 ne Fa Fa G ul ul ib t tZ so on n- e Ke lo re Fa ul t 21GF-1350 Grey Fox Deposit 7.29 g/t
Slide 17: Fox Complex – Froome Mine Exploration Drilling
Fox Complex – Heat map: Grade x Thickness (GXM) Froome Mine Exploration Drilling • Goal: replace mined ounces & increase mineral resources; • Focus: Below mine infrastructure to depth • 2022 budget $3.6M (exploration, delineation & definition drilling) • Key points: Open at depth; 2022 success shown
Slide 18: Fox Complex – Stock
Fox Complex – Stock Resource Growth Potential • Historical grades processed at Stock Mine +5 g/t Au • Gold stream-free land package Heat Map: Grade x Thickness (GXM) • Proximal to the mill, near surface Stock Mine 137,000 oz Au historic production @ 5.48 gpt Destor-Porcupine Fault Zone Plan View Sto
Slide 19: Fox Complex - Stock Exploration in 2022
Fox Complex - Stock Exploration in 2022 Heat Map: Grade x Thickness (GXM) Stock West Stock Mine Stock East Surface 0m SAS-55* (4.59 g/t / 14.5m) 500 m SEZ19-35* S21-175A* (3.27 g/t / 11m) (83.49 g/t / 5.6m) S21-203* S21-178A* (2.61 g/t / 6m (9.36 g/t / 3m S18-31* (4.01 g/t / 11.1m) 6.69 g/t / 2.9m)
Slide 20: Gold Bar – Good Address
Gold Bar – Good Address Gold Bar Nevada, USA On Trend - Similar Geology Nevada Gold Mines Cortez Cortez & Criteria Cortez 50 M oz Au cluster1 Gold Bar Fourmile Large footprint, Co ü Discovery rte shallow oxide gold Goldrush z Fa ul t Host rock, alteration, mineralization style ü Legend Major faults,
Slide 21: Gold Bar - Priority Targets Near Mine & Brownfields
Gold Bar - Priority Targets Near Mine & Brownfields N Pot Canyon Ridge Legend Mine Pick Cabin Deposit Co Near mine targets rtez Brownfield Fau Fault Zone lt Ca Ri Robe dg bin eF Fa rts Cr G au ult ol d lt Ba eek F Cabin South rF Gold Bar au Atlas* South lt ault W all 0 1 2 Fa ult Miles * Actual Atla
Slide 22: Gold Bar - Atlas Opportunity
Gold Bar - Atlas Opportunity N OGB-010 27.4 m @ 3.1 g/t Au • Historic production 286,400 oz gold @ 2.5 g/t; highest grade deposit on Gold Bar property • Targets along Footwall Fault, Atlas East & South • High-grade mineralization intersected in 2021 @ Atlas East: 3.1 g/t Au along 27.4 m (90 ft) Atla
Slide 23: Gold Bar - Atlas Opportunity
Gold Bar - Atlas Opportunity Property Boundary • Several prospective faults remain untested based on 2021 gravity survey results • The survey confirms that the bedrock is closer to surface than previously thought, meaning less overburden needs to be removed & quicker access to potential mineralizati
Slide 24: San José - Exploration Targets
San José - Exploration Targets § 2022 - 12,000 m drilling planned Aguas Vivas San José Drill program focused on high grade veins: Argentina – San José San José – Saavedra West Saavedra Telken North § Q1 2022 - 2,049 m exploration drilling around mine & Saavedra area. Highlights: Newmont 6.0 g/t Au &
Slide 25: Formation of a New Copper Developer
Los Azules Formation of a New Copper Developer Michael Meding VP & GM McEwen Copper MUX
Slide 26: Los Azules Video
Los Azules Video McEwen@'Correr
Slide 27: Los Azules – 9th Largest Undeveloped Copper Project in the World
Los Azules – 9th Largest Undeveloped Copper Project in the World Project Country Majority Owner Development Status Geology Preliminary Economic 1 Pebble United States Northern Dynasty Minerals Porphyry, Supergene Copper Assessment 2 Resolution United States Rio Tinto Feasibility Porphyry 3 La Granja
Slide 28: Required copper price cost curve
Required copper price (US$/t Cu) MUX 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 New Prosperity Tenke Phase 3 1 Pebble El Abra Mill Al Arco Galore Creek 9 Los Azules Q1 Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Kamoa-Kakula Goldman Sachs Spot
Slide 29: VISION – To Create a Regenerative Mine
VISION – To Create a Regenerative Mine One that: • Has a net-positive ecological impact • Is carbon negative • Is a desirable place to work, safe & healthy • Is a technologically advanced mine • Will appeal to a wider investor audience • Its copper production is essential to the world’s transition t
Slide 30: Located Amongst Giant Deposits
Located Amongst Giant Deposits Escondida BHP/Rio Tinto Taca Taca First Quantum Lindero Fortuna Silver Mara Alumbrera/Agua Rica CHILE ARGENTINA Josemaria Lundin Mining Filo del Sol Filo Mining Pascua Lama Barrick Veladero Barrick Shandong Los Azules McEwen Copper San Juan Altar Aldebaran Resources Lo
Slide 31: Los Azules: Preliminary Economic Assessment
Los Azules: Preliminary Economic Assessment (PEA) Highlights of the 2017 Los Azules PEA1 (Hatch Engineering) Average annual production 1st 13 Years 415 Million lbs Cu at $1.14/lb cash cost Mine Life 36 years Initial Capex $2.4 Billion Base Case Cu Price $3.00/lb Payback 3.6 years After-Tax IRR 20.1%
Slide 32: Los Azules
Copper Gold Silver Los Azules Tonnes lbs oz oz Among Largest Copper Deposits in the World Indicated 962 Million 10.2 Billion 0.48% 1.7 Million 0.06 g/t 55.7 Million 1.8 g/t 19.3 Billion 3.8 Million 135.4 Million Inferred 2,666 Million 0.33% 0.04 g/t 1.6 g/t • By 2021: - Drilled 66 km in 202 vertical
Slide 33: Recent Drill Results Highlights
Recent Drill Results Highlights AZ22149: • 298.0 m of 0.55% Cu including 54.0 m of 1.38% Cu AZ22149 MUX
Slide 34: Recent Drill Results Highlights
Recent Drill Results Highlights AZ22149: • 298.0 m of 0.55% Cu including 54.0 m of 1.38% Cu AZ22146: • 330.0 m of 0.83% Cu including 103.4 m of 1.31% Cu AZ22146 MUX
Slide 35: Recent Drill Results Highlights
Recent Drill Results Highlights AZ22149: • 298.0 m of 0.55% Cu including 54.0 m of 1.38% Cu AZ22146: • 330.0 m of 0.83% Cu including 103.4 m of 1.31% Cu AZ22142: • 419.0 m of 0.79% Cu AZ22142 including 46.0 m of 1.59% Cu MUX
Slide 36: Recent Drill Results Highlights
Recent Drill Results Highlights AZ22149: • 298.0 m of 0.55% Cu including 54.0 m of 1.38% Cu AZ22146: • 330.0 m of 0.83% Cu including AZ22158 103.4 m of 1.31% Cu AZ22142: • 419.0 m of 0.79% Cu including 46.0 m of 1.59% Cu AZ22158: • 220m of 0.95% Cu including 44m of 1.38% Cu MUX
Slide 37: TITAN Geophysical Survey
TITAN Geophysical Survey Shows Further Exploration Targets • TITAN 24 geophysical survey was completed at Los Azules • Drilling confirmed copper mineralization coincident to shallower anomalies • Deeper SW & NE anomalies flanking Los Azules are attractive exploration targets Section 61200N Pit outli
Slide 38: Titan Geophysical Targets
Titan Geophysical Targets South Section Looking North Numerous holes passing through geophysical anomalies with grades > 0.5% Cu Resistivity legend (ohm-m) for TITAN High Drillhole Legend (Cu assay in %) Low 0.31% Cu over 99 m @ end of hole touching anomaly Section 58400N 0 500m MUX
Slide 39: Titan Geophysical Targets
High Section 60000N Low Resistivity Drillhole Legend legend (Cu assay in %) (ohm-m) for TITAN Numerous holes passing through upper geophysical anomalies with assay grades > 0.5% Cu Titan Geophysical Targets North Section Looking South 0 500m MUX
Slide 40: Los Azules: the Path Forward
1st 2022 drilling campaign completed 13,500 m of diamond drilling. 45,500 m remaining to include resource, geotechnics, hydrogeology & hydrology in 2022-23. Second Access Los Azules: the Path Forward Road established, giving the option for Funds raised in the 1st and 2nd tranches of the private year
Slide 41: 2021 Operational & Financial Results
Financial Results 2021 Operational & Financial Results Perry Ing Chief Financial Officer 154,400 GEO actual production up 34% from 2020 $ 56.7 M consolidated net loss primarily related to: $ 6.5 M gross loss of operations $ 11.4 M G&A $ 35.0 M advanced projects & exploration $ 7.5 M attributable los
Slide 42: Q1 2022 Highlights
Q1 2022 Highlights Gold Equivalent Production Cash Gross Loss Q1 25,100 oz 1 $2.3 M Q2 36,905 oz Cash Cost Net Loss $1,696/ oz 2 $19.3 M vs $12.5 M Q1 2021 All-in Sustaining Costs Cash & Equivalents $2,146/ oz 2 $63.8 M vs $54.3 M Dec 31, 2021 MUX 1. Includes 10,700 GEO from 49% San Jose Mine 2. 100
Slide 43: 2022 Operational and Financials
2022 Operational and Financials Strengthened Balance Sheet – $15 M Flow-through financing for Fox Complex exploration (March 2022) – $15 M unsecured debt financing provided by Rob McEwen to provide additional liquidity (April 2022) – $15 M private placement in McEwen Copper subsidiary bringing a tot
Slide 44: Closing Remarks
NYSE & TSX Closing Remarks Rob McEwen Chairman & Chief Owner
Slide 45: Q&A
NYSE & TSX Q&A