Mcewen Inc. · NYSE:MUX
Mcewen — McEwen Mining — John Tumazos Very Independent Research Conference 2023
38 slides from Mcewen's conference presentation, Apr 19, 2023
Slide 1: Turbo-Charged by Copper
John Tumazos Very Independent Research Conference April 12, 2023 Turbo-Charged by Copper Increasing Au & Ag Production Decreasing Cost/oz Reducing Debt
Slide 2: 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 3: 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 standardized mean
Slide 4: Full Disclosure: CEO's Financial Commitment
MUX Full Disclosure CEO’s Financial Commitment $220M 17.3% $1/Yr Investment 1 Ownership Salary Rob McEwen 17% Institutional 21% Retail 62% 1 - Rob McEwen’s investments: $140 million in McEwen Mining shares and $40 million (Aug 13, 2018 & Apr 5, 2022 press releases), plus $40 million in McEwen Copper
Slide 5: The Sun Is Starting to Shine Again!
MUX 0 5 10 15 20 25 30 2018 2019 2020 2021 2022 2023 Last Price SMAVG (50) SMAVG (100) SMAVG (200) SMAVG (500) SMAVG (800) The Sun Is Starting to Shine Again! After 3 Horrible Years Up 225%, Sep 27, 2022 – Apr 11, 2023. With Still a Lot of Room on the Upside Share Price US$ As of Apr 11, 2023. Sourc
Slide 6: McEwen Signs Deals with Rio & Stellantis
MUX McEwen Lands Rio Tinto Venture for Argentina-Focused Copper Unit Rio’s copper leaching technology venture takes 10% stake for US$25 Million McEwen Signs Another Rio Earn-in Deal McEwen Copper entered option agreement for Rio Tinto to earn 60% interest in Elder Creek property, Nevada, USA by spen
Slide 7: Selected Proforma Financial Information
MUX Selected Proforma Financial Information Post Purchases of McEwen Copper by Stellantis & Rio Tinto’s Nuton Impact on MUX Stronger Balance Sheet Ownership of McEwen Copper reduced Value of Ownership Increased by 80% Reducing Debt by 38% Unconsolidated Cash2 from 68.1% to 51.9% from $160 M to $290
Slide 8: We Believe MUX's Share Value Is US$8 and $34
MUX We Believe MUX’s Share Value Is: US$8 and $34 Share Price $9.39 Apr 11, 2023 Based on recent market valuations / transactions Between Current
Slide 9: Possible Share Value of MUX Sum of the Parts
MUX Possible Share Value of MUX Sum of the Parts MUX’s Assets Value Range Per MUX Share1 Low High McEwen Copper2 Los Azules $2.473 $23.204 Elder Creek $0.315 $0.315 Royalty Portfolio $0.696 $0.696 Gold & Silver $4.667 $9.328 $8.15 $33.54 Notes 1. McEwen Mining has 51 million fully diluted shares 2.
Slide 10: MUX
MUX
Slide 11: McEwen Copper Ownership
MUX McEwen Copper Ownership MUX 51.9% Stellantis 14.2% Nuton / Rio Tinto Venture 14.2% Rob McEwen 13.8% Victor Smorgon Group (Australia) Others 3.5% 2.4% MUX Stellantis • McEwen Copper Total Shares Outstanding 28.9 M • McEwen Copper owns 100% of the Los Azules and the Elder Creek copper projects • E
Slide 12: Los Azules Among the World's Largest
MUX CHILE ARGENTINA Los Pelambres Antofagasta Andina Codelco Los Bronces Anglo American Antamina Teck Las Bambas MMG Antapaccay Glencore Cerro Verde Freeport-McMoRan PERU Taca Taca First Quantum Escondida BHP/Rio Tinto Lindero Fortuna Silver MARA Yamana Glencore & Newmont Josemaria Lundin Mining Fil
Slide 13: Los Azules: World's 9th Largest Undeveloped Copper Project
MUX 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 Porphyry 3 La Granja Peru Rio Tinto Advanced Exploration Porphyry 4 Kerr-Sulphure
Slide 14: Los Azules Org Chart – Executive Team
MUX Los Azules Org Chart – Executive Team Strong Local Management Experience • 180 years of combined experience in mining projects and Operations. • Strong team with experience in San Juan Argentina at tier one operations
Slide 15: Los Azules Robust Economics
MUX Los Azules Robust Economics Highlights of the 2017 PEA1 (Hatch Engineering) Avg. Annual Production 1 st 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% After-Tax NPV 8% $2.2 Billion
Slide 16: Required Copper Price vs Cumulative Production
MUX Tenke Phase 3 Cumulative Production (Paid kt Cu) Pebble El Abra Mill Al Arco Galore Creek L o s Az ule s Los Chancas Salobo 3 San Nicolas Canaria Norte Harper Creek Kamoa-Kakula Resolution Kansanshi Sulphide Ann Mason Los Helados Ajax Cuajone Kerr-Sulphurets-Mitchell Rosemont Nueva Union Galeno
Slide 17: Los Azules: It's Valuable
MUX Los Azules It’s Valuable Between 2 Value Reference Points, US$485 M and $2.28 B McEwen Copper's implied market cap US$550 M, based on financing announced Feb 27, 2023 In Same San Juan Province, Argentina Comparison of Los Azules With Filo Mining's Josemaria & Filo del Sol Copper Resources & Grad
Slide 18: Los Azules – Drilling
MUX Los Azules – Drilling Drilling Objectives 1. Resource upgrade 2. Metallurgy, geotech and hydrology 3. Testing for extensions of the mineral resources Oct 2022 – May 2023 Drill Campaign • 97 holes completed to date • 27,000 meters • Infill drilling to upgrade the resource categories from inferred
Slide 19: Los Azules - Initial Visual Results From Payback Pit
MUX Los Azules - Initial Visual Results From Payback Pit 1. NI 43-101 Technical Report-Preliminary Economic Assessment Update for the Los Azules Project, Argentina. September 1, 2017.
Slide 20: 30-year PEA Pit and Recent Exploration Results
MUX 30-year PEA Pit (2017) 3000 m Elev 2500 m Elev 3500 m Elev 4000 m Elev Longitudinal Section 1,000 meters Looking East AZ22174 (1,128 m) 0.42% Cu over 480 m including 1.46% Cu over 26 m Los Azules Recent Exploration Results – March 6, 2023 Exploration: 1,052 meters grading 0.29% Cu including 480
Slide 21: Elder Creek Project, Nevada
Elder Creek Project, Nevada Classic Porphyry Copper – Gold Signature Recently Optioned to Rio Tinto’s Subsidiary Kennecott Exploration Company for US$18 M to earn 60% interest MUX Tonkin MUX Gold Bar Cortez Marigold Ruby Hill Cortez Pipeline Gold Rush Discovery 0 10 20 Miles N Nevada Gold's largest
Slide 22: Vision for Los Azules
MUX VISION for Los Azules To build a mine for the future based on regenerative principles and innovative technologies, that can achieve net-zero carbon emissions by 2038. We are committed to delivering green copper to Argentina and the world, a product that will contribute to the electrification of
Slide 23: The Mine Camp Vision
MUX The Los Azules Copper mine promises to be the 1 st major copper mine in the world to be developed around key regenerative principles. The Mine Camp Vision
Slide 24: MUX Properties: Asset Rich in Prime Real Estate
MUX MUX Properties Asset Rich in Prime Real Estate 3 Mines Fox Complex (100%) Gold Bar (100%) San José (49%) 1 Development Project El Gallo / Fenix (100%) Los Azules Argentina Fox Complex Timmins, Canada (100%) Gold Bar Nevada (100%) El Gallo – Fenix Project Mexico (100%) San José Argentina (49%) El
Slide 25: MUX Production
MUX MUX Production 1. Gold Equivalent Ounces are calculated based on 85:1 gold to silver price ratio. 2. Percentual change of 2023 relative to 2022. 2021A 2022A 2023 Guidance 2023 % Change2 Gold Bar Mine, Nevada GEOs1 43,900 26,620 42,000 – 48,000 +58% to +80% Cash Costs / GEO $1,687 $1,622 $1,400 -
Slide 26: Gold Bar – Premier Address
MUX Gold Bar – Premier Address 1. Includes past production and current resources Gold Bar Nevada, USA On Trend - Similar Geology Criteria Cortez & Gold Bar Large footprint, shallow oxide gold Host rock, alteration, mineralization style Major faults, structural traps Intrusions MUX Property NGM Prope
Slide 27: Gold Bar - Flood
MUX Gold Bar - Flood
Slide 28: Fox Complex, Timmins – Another Great Address
MUX Fox Stock Mine/Mill (0.1M oz) 6 miles Fox West 10 km N (2.2M oz) Fault Zone Mine or Deposit Temiskaming Sediments Historic Production Fox Complex Ontario, Canada Fox East Froome Grey Fox Black Fox (1.0 M oz) Timmins Fox Complex, Timmins - Another Great Address • 70 million oz historic production
Slide 29: Growth Potential @ Fox
MUX Growth Potential @ Fox Longer Mine Life, Higher Production, Lower Costs/ oz PEA Financial & Operating Metrics Post Froome Production (After-Tax): Life of Mine (LoM) 9.3 years LoM Gold Production 751,700 oz Avg Annual Gold Production Over LoM 80,800 oz Avg Cash Costs per oz Over LoM $769 Avg AISC
Slide 30: San José Mine
MUX San José Mine N 2022 Production5 278,000 oz Au 20 km Newmont Cerro Negro Mine 12 miles San José Argentina San José Mine Narrow Vein Underground Silver / Gold Mine Large Property Package Good Grade Mine Surrounds Newmont’s Cerro Negro Reserve Grade1 342 gpt Silver 5.7 gpt Gold Mine Life2 6 Years
Slide 31: El Gallo – Fenix Gold & Silver Project
MUX El Gallo – Fenix Gold & Silver Project • Acquired used mill and equipment from Argonaut for $2.8 million • Robust heap leach material re-processing project • Mill creates optionality to exploit regional Au / Ag deposits • Preparing development schedule
Slide 32: Ways to Get Exposure to Los Azules
MUX There Are 2 Ways to Get Exposure to: Buy MUX Today & Get 150 to 170 K GEOs/ Yr as a Bonus or Wait for McEwen Copper IPO LOS AZULES, one of the world’s largest undeveloped copper projects 1. 2.
Slide 33: Appendix
MUX Appendix
Slide 34: Los Azules Exploration Highlights: Recent Drill Results
MUX Section 39 - AZ22184A: • 500 m of 0.66% Cu incl 276 m of 0.92% Cu and 224 m of 0.34% Los Azules Exploration Highlights Feb – Mar 2023: Recent Drill Results Confirming Continuity of Mineralization Section 46 - AZ22186: 282 m of 1.00% Cu incl 172 m of 1.40% Cu Section 38 - AZ22183: • 152 m of 0.87
Slide 35: Los Azules Exploration Highlights: Recent Drill Results
MUX Section 39 - AZ22184A: • 500 m of 0.66% Cu incl 276 m of 0.92% Cu and 224 m of 0.34% Los Azules Exploration Highlights Feb – Mar 2023: Recent Drill Results Confirming Continuity of Mineralization Section 46 - AZ22186: 282 m of 1.00% Cu incl 172 m of 1.40% Cu Section 38 - AZ22183: • 152 m of 0.87
Slide 36: Los Azules Exploration Highlights: Recent Drill Results
MUX Section 39 - AZ22184A: • 500 m of 0.66% Cu incl 276 m of 0.92% Cu and 224 m of 0.34% Los Azules Exploration Highlights Feb – Mar 2023: Recent Drill Results Confirming Continuity of Mineralization Section 46 - AZ22186: 282 m of 1.00% Cu incl 172 m of 1.40% Cu Section 40 - AZ22181: • 502 m of 0.50
Slide 37: Los Azules Exploration Highlights: Recent Drill Results
MUX Section 39 - AZ22184A: • 500 m of 0.66% Cu incl 276 m of 0.92% Cu and 224 m of 0.34% Los Azules Exploration Highlights Feb – Mar 2023: Recent Drill Results Confirming Continuity of Mineralization Section 46 - AZ22186: 282 m of 1.00% Cu incl 172 m of 1.40% Cu Section 38 - AZ22183: • 152 m of 0.87
Slide 38: Los Azules Recent Infill Drill Results – March 6, 2023
MUX Los Azules Recent Infill Drill Results – March 6, 2023 153.0m of 1.61% Cu including 42m of 2.78% Cu and 120.8m of 0.88% Cu (AZ23191)* * - Highlighted intervals are updated from the March 6 2023 Press Release to include previously pending minor assays at the bottom of hole AZ23191. Section 37 sho
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