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Post by Entendance on Apr 9, 2024 1:31:07 GMT -5
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Post by Entendance on Apr 12, 2024 7:10:21 GMT -5
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Post by Entendance on Apr 16, 2024 13:18:19 GMT -5
McEwen Mining Inc. (NYSE: MUX)(TSX: MUX) is pleased to announce that it has entered into a definitive agreement and plan of merger (the “Agreement”) to acquire all of the issued and outstanding shares of Timberline Resources Corporation (TSXV:TBR)(OTCQB:TLRS) (“Timberline”) by way of a merger between Timberline and a subsidiary of McEwen (the “Transaction”). The Transaction will augment McEwen’s existing portfolio of development and exploration projects in Nevada.
Timberline shareholders will have the right to receive 0.01 of a share of McEwen’s common stock for each share of Timberline’s common stock (the “Exchange Ratio”), representing a value of US$0.102 per Timberline share, calculated based on the 20-day volume weighted average trading price of McEwen’s shares on the NYSE at the close on April 15th, 2024. This represents an 132% premium to Timberline’s 20-day volume-weighted average price on the OTCQB. McEwen currently owns 6.25 million Timberline shares representing approximately 3.3% of Timberline’s basic common shares outstanding and 6.25 million Timberline warrants. Excluding McEwen’s existing ownership, McEwen expects to issue approximately 1.84 million shares on closing for a transaction value of US$18.8 million.
The closing of the Transaction is subject to customary conditions, including receipt of necessary regulatory and stock exchange approvals and approval from Timberline’s shareholders holding a majority of its outstanding shares.
Timberline’s board of directors has unanimously recommended that Timberline’s shareholders vote in favour of the Transaction. The directors, officers and two principal shareholders of Timberline, holding shares reflecting approximately 40% of Timberline's aggregate outstanding shares, have entered into voting and support agreements with McEwen, pursuant to which they have agreed, among other things, to vote their shares in favour of the Transaction.
The Agreement includes customary deal-protection provisions. Timberline has agreed not to solicit or initiate any discussion regarding any other business combination or acquisition. In the event that Timberline validly terminates the Agreement to accept a superior offer, Timberline will be required to pay McEwen a termination fee of US$400,000.
Each Timberline warrant outstanding immediately prior to the closing of the Transaction will remain outstanding and be converted into a warrant to acquire McEwen shares based on the Exchange Ratio. Each Timberline stock option outstanding and in-the-money immediately prior to the closing of the Transaction will automatically vest and be converted into the right to receive McEwen shares at the Exchange Ratio less the exercise price per stock option; all other outstanding Timberline stock options will be cancelled.
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Post by Entendance on Apr 20, 2024 6:20:49 GMT -5
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Post by Entendance on May 1, 2024 4:58:51 GMT -5
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Post by Entendance on May 6, 2024 11:14:07 GMT -5
McEwen Mining Q1 2024 Results Conference Call
TORONTO, May 6, 2024 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) invites you to join our conference call following the release of our Q1 2024 financial results on Thursday, May 9th, 2024 at 11:00 AM EDT, where management will discuss our financial results and project developments and follow with a question-and-answer session. Questions can be asked directly by participants over the phone during the webcast.
Thursday
May 9th 2024
at 11:00 AM EDT Toll Free Dial-In North America: (888) 210-3454
Toll Free Dial-In Other Countries: events.q4irportal.com/custom/access/2324/
Toll Dial-In: (646) 960-0130
Conference ID Number: 3232920
Webcast Link: events.q4inc.com/attendee/871742148
An archived replay of the webcast will be available approximately 2 hours following the conclusion of the live event. Access the replay on the Company’s media page at
www.mcewenmining.com/media.
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Post by Entendance on May 9, 2024 1:42:28 GMT -5
McEwen Mining: Q1 2024 Results
Management will discuss our Q1 financial results and project developments and follow with a question and answer session. Questions can be asked directly by participants over the phone during the webcast.
Thursday, May 9th, 2024 at 11:00 AM EDT
Toll Free Dial-In North America: (888) 210-3454
Toll Free Dial-In Other Countries: events.q4irportal.com/custom/access/2324/
Toll Dial-In: (646) 960-0130
Conference ID Number: 3232920
Webcast Link: events.q4inc.com/attendee/871742148
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) today reported its first quarter (Q1) results for the period ended March 31st, 2024
“During a recent trip to Argentina, together with several members of our senior management, we had the distinct pleasure of meeting with President Milei. He spoke about his plans to improve the lives of people and stimulate the country’s economy through fiscal discipline and foreign-investment-friendly policies. We had a wide-ranging conversation about what steps could be taken to encourage large capital inflows to invest in productive assets that create a strong tax base and provide long-term high paying jobs. We spoke about our Los Azules copper project and how we have invested significant funds to advance it to the point where it could be producing large quantities of pure green copper cathodes by 2030.
It was very refreshing to meet a head of state who is an engaging communicator with plans based on sound economic principles designed to unburden the economy and get Argentina growing. I was a fan of Javier Milei before he was elected as President, when I saw videos of him campaigning brandishing a chainsaw and promising to cut the bureaucracy, free up the economy, and encourage domestic and foreign investment.
Today there exists an infectious optimism about Argentina that didn’t exist before President Milei was elected. I wanted to share my impressions as I believe it bodes well for the continued appreciation of our largest asset, Los Azules, and for our joint venture mine San José. Relaxation of exchange controls is contemplated, and the legislative reforms currently working their way through government are beneficial to large infrastructure projects across many industries, including mining.
At Los Azules, we had 22 drills operating this season and we succeeded in drilling over 69,000 meters to date, an impressive achievement, putting us on track to deliver our final feasibility report in Q1 2025.
During Q1 our Gold Bar mine performed well achieving a low production cost/oz due to the mine sequence being light on waste movements, the Fox Complex grappled with lower-than-expected grades which produced higher than planned cost/oz, and the San José mine had higher production and lower cost/oz for the quarter, outperforming their seasonally weaker period,” said Rob McEwen, Chairman and Chief Owner.
Financial Results
McEwen Mining's ownership of McEwen Copper decreased from 51.9% to 47.7% after the October 2023 financing, and as a result the Company’s financial statements no longer consolidate McEwen Copper on a 100% basis, and instead account for McEwen Copper as an equity investment.
Our gross profit in Q1 was $6.0 million, compared to a gross profit of $4.4 million in Q1 2023. A 15% increase in the gold price and a 3% increase in metal sold contributed to the improvement in gross profit.
Adjusted EBITDA(1) was $6.3 million, or $0.13 per share in Q1, compared to an adjusted EBITDA of negative $2.9 million, or ($0.06) per share in Q1 2023. Adjusted EBITDA removes the impact of our McEwen Copper investment and represents the results from our mining operations.
We reported a consolidated net loss of $20.4 million, or ($0.41) per share in Q1, compared to a net loss of $43.1 million, or ($0.91) per share in Q1 2023. The largest contributor to our net loss was an $18.0 million loss attributable to our investment in McEwen Copper. We also incurred $3.9 million in exploration expenses at our Fox Complex and Gold Bar mine operations.
Liquidity and Capital Resources
We reported consolidated cash and cash equivalents of $22.0 million and consolidated working capital of $14.1 million as at March 31, 2024, compared to the respective numbers of $23.0 million and $22.7 million at December 31, 2023. Total long-term debt was $40.0 million at the end of Q1, decreased from $65.0 million in Q1 2023.
Gold & Silver Production (See Table 1)
Consolidated production from our three operating mines was 32,725 gold equivalent ounces (GEOs)(3) in Q1, compared to 30,400 GEOs in Q1 2023. The average realized price of sales during Q1 was $2,131 per GEO for 100% owned mines and $2,214 per GEO for San José. Production guidance remains 130,000-145,000 GEOs for the full year 2024.
Individual Mine Performance:
Gold Bar Mine, Nevada (100% owned)
At Gold Bar, we produced 11,716 GEOs, an increase of 82% compared to Q1 2023, when production was adversely impacted by major flooding. The Gold Bar mine guidance is 40,000 to 43,000 GEOs for full year 2024.
Cash costs and AISC per GEO sold for the Gold Bar mine in Q1 were $1,088 and $1,201, respectively, which was significantly lower compared to full year guidance of $1,550 and $1,750, respectively. As operations move towards higher strip ratio mining areas in the second half of 2024, we expect to see our average unit costs increase closer to guidance values.
Fox Complex Mine, Ontario (100% owned)
At Fox, production was below plan at 7,486 GEOs, due to lower than expected mined grades. As a result of the lower mined and stockpile grades, our cash costs(2) and AISC per GEO(2) sold for Fox in Q1 were $1,555 and $1,928, respectively, higher than full year guidance of $1,325 and $1,550, respectively.
Subsequent to quarter end we have begun to see higher grades of gold production and we reiterate production cost/oz guidance at Fox of 40,000 to 42,000 GEOs for the full year 2024.
San José Mine (49% owned)
At San José, Q1 production increased by 15% compared to Q1 2023 due to an improvement in average grade processed. San José produced 12,934 attributable GEOs during Q1, exceeding their year-to-date plan. The next three quarters in 2024 are expected to achieve higher production. We reiterate full year guidance of 50,000 to 60,000 attributable GEOs.
Cash costs and AISC per GEO sold for San José in Q1 were $1,607 and $1,947, respectively, as compared to full year guidance of $1,500 and $1,700, respectively. As production increases through 2024, average unit costs are expected to trend lower to meet guidance.
San José Exploration
Near mine exploration drilling is being conducted underground at the Frea, Odin, and Remal N. veins. Recently, hole SJM-663 was drilled along the southeast extension of the Frea vein and hit 12 m of 12.7 g/t Au and 101 g/t Ag at a lower elevation within the vein. This has opened a new area for additional exploration, which is underway with 260-foot (80-meter) step-outs and the potential to extend over 2,300 ft. (700 m).
An open pit was constructed along the southeast portion of the Odin vein (“Contorno OP”) in an area where high grade mineralization was close to the surface. Mining from the Contorno OP was successful, therefore shallow drilling has been carried out 400 ft (120 m) along strike through a sequence of veins called Dalia, Odin, and Sigmoide Odin Sur (“SOS”) to determine if the pit can be extended, with some encouraging results summarized below (see Figure 1):
Hole ID Vein Assay Result
SJD-2775 Dalia 2.8 m of 1.1 g/t Au and 221 g/t Ag
Odin 1.0 m of 1.9 g/t Au and 216 g/t Ag
SOS 1.5 m of 1.8 g/t Au and 166 g/t Ag
SJD-2776 Dalia 2.6 m of 2.0 g/t Au and 513 g/t Ag
Odin 1.3 m of 0.4 g/t Au and 12 g/t Ag
SOS 0.9 m of 0.1 g/t Au and 13 g/t Ag
SJD-2777 Dalia 3.5 m of 1.3 g/t Au and 86 g/t Ag
Odin 2.3 m of 5.5 g/t Au and 70 g/t Ag
SOS 0.9 m of 0.2 g/t Au and 43 g/t Ag
SJD-2778 Dalia 1.7 m of 0.5 g/t Au and 19 g/t Ag
Odin 1.4 m of 0.3 g/t Au and 54 g/t Ag
SOS 1.0 m of 1.4 g/t Au and 70 g/t Ag
SJD-2788 Dalia 1.5 m of 4.8 g/t Au and 51 g/t Ag
Odin 2.7 m of 7.6 g/t Au and 360 g/t Ag
SOS 6.2 m of 23.3 g/t Au and 314 g/t Ag
SJD-2789 Dalia 0.9 m of 1.4 g/t Au and 125 g/t Ag
Odin 1.6 m of 3.2 g/t Au and 287 g/t Ag
SOS 1.5 m of 3.5 g/t Au and 281 g/t Ag
SJD-2795 Dalia 0.9 m of 0.6 g/t Au and 90 g/t Ag
Odin 1.7 m of 2.8 g/t Au and 137 g/t Ag
SOS 4.7 m of 2.6 g/t Au and 60 g/t Ag
Exploration programs were also conducted to the south of the San José mine adjacent to Newmont’s Cerro Negro mine property. Mapping and sampling were completed on the El Retiro and Liv Este targets. Geophysics and four trenches (8,200 ft or 2,500 m in total) were also completed over El Retiro. Trench results, mapping and sampling reports are pending for both targets. These targets will be interpreted over the Argentinean winter, with the plan to drill both of them in the second half of the year.
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Post by Entendance on May 10, 2024 3:41:20 GMT -5
McEwen Copper Announces Completion of the Feasibility Drilling Program
May 16, 2024
70,000 meters completed, highlights include:
349.0 m of 0.77% Cu, including 232.0 m of 0.86% Cu (AZ23292)
382.5 m of 0.54% Cu, including 74.0 m of 0.86% Cu (AZ23277)
TORONTO, May 16, 2024 -- McEwen Copper Inc., 47.7% owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to provide the assay results from the currently completed drill season at the Los Azules project in Argentina. The prime objectives of this season’s infill drilling campaign were: 1. to confirm the size and grade of the deposit as compared to the 2023 PEA estimate and upgrade the resource categories for the upcoming feasibility study; 2. test for extensions of mineralization beyond the current pit shell; and 3. explore our large property package for other mineralized areas.
Based on the assay results received to date, our first objective appears to have been met. Initial interpretation suggests that our infill drilling will result in an increase in Measured and Indicated resources and an overall mineral inventory within 5% of the PEA estimate. Testing for extensions beyond the planned pit has successfully encountered mineralization both to the north and to the south. Primary mineralization was intercepted (202.0 m of 0.20% Cu) over 400 meters north of last year’s deep exploration hole, confirming its extension at depth a significant distance to the north. Exploration south of the planned pit has intercepted the principal mineralized intrusive more than 700 meters south of previous drill intercepts and indicates that prospective intrusives continue well to the south of the pit.
Exploration over our property has produced an intriguing target, late in the season. Initial results of a concession-wide regional mapping and sampling campaign have identified strong evidence of a large porphyry system 3 kilometers east of the Los Azules deposit. Porphyry-style veining and quartz vein stockworks with copper oxide mineralization have been recognized within this new target, with assay results pending.
Additionally, this news release covers all results from the first half of the 2023-24 drill program (see Table 1). Final results will be published when all the geochemistry is completed.
The objective of the 2023-2024 drilling campaign is to collect all the necessary information to support the completion of the Los Azules Feasibility Study by early 2025. This information continues to arrive and will be processed in the following months. Resource drilling is focused on converting all the mineralization to be mined in the first 5 years to Measured and Indicated resource, to increase confidence during the payback period. Geotechnical, metallurgical, hydrogeological, exploration, and condemnation drilling are also being performed.
Highlights
Hole AZ23292 returned an intercept of 349 m of 0.77% Cu (approx. true thickness). The Enriched zone portion of this hole extends over 346 meters and includes an intercept of 232 m of 0.86% Cu.
Hole AZ23277 has an intercept of 382.5 m of 0.54% Cu (approx. true thickness). The Enriched zone portion of this hole extends over 306 meters with a grade of 0.61% Cu and includes an intercept of 74 m of 0.86% Cu.
Results
Results are summarized in two schematic cross sections (Figures 2 and 3), which include simplified interpretations of the Overburden, Leached, Enriched and Primary zones. The Enriched mineral zone refers to the enrichment of a copper deposit by precipitation-derived water circulation that carries copper minerals downward through the rocks to accumulate in a thick, often horizontal “blanket”. Immediately above the Enriched zone is the Leached zone, from which copper was removed and transported. Weathering and oxidation often aid in this process. Below the Enriched zone, the Primary (or Hypogene) zone is formed by ascending copper-rich fluids having a much deeper magmatic origin. The green line on the sections indicates the pit floor of the 30-year pit shell from the 2023 NI 43-101 Preliminary Economic Assessment (PEA)
McEwen Mining, Inc. (NYSE:MUX) Q1 2024 Earnings Conference Call May 9, 2024 11:00 AM ET
Company Participants
Robert McEwen - Executive Chairman & Chief Owner
Perry Ing - Chief Financial Officer
Jeff Chan - Vice President of Finance
William Shaver - Chief Operating Officer
Stefan Spears - Vice President of Corporate Development
Michael Meding - Vice President and General Manager of McEwen Copper
Carmen Diges - General Counsel & Secretary
Conference Call Participants
Jake Sekelsky - Alliance Global Partners
Joseph Reagor - ROTH Capital Partners
Private Investor
Robert McEwen
Thank you, operator. Good morning, ladies and gentlemen. Welcome to our first quarter 2024 conference call. A few moments ago, I looked at our share price and thought, well, what happened? We're down about $2 and I think a lot of it is I think it's overdone, but it's probably due a bit to our accounting policies, the difference between accounting treatment in Canada and in the United States of America. And I'd like to ask Perry Ing, our CFO to talk about that difference.
Perry Ing
Good morning, Rob. So we would like to reiterate the fact that as a U.S. GAAP reporting company, we expense all of our attributable expenses related to the Los Azules copper project in Argentina. So given that we own 48% of the company, all of the work going into drilling for that project is being expensed through our income statement. Unlike a lot of our peers, Canadian and Australian listed companies that report under International Financial Reporting Standards, where they may capitalize those costs, and you would not see them reflected in net earnings or loss.
So if you look at into more detail into our earnings, we reported a consolidated net loss of approximately $20 million of which $18 million was directly attributable to our investment in McEwen Copper as well as an additional $4 million in general exploration expenses. So again, had we reported under IFRS, we would not be showing a loss of that nature.
Robert McEwen
Thank you, Perry. I started out just saying, we had a good quarter and we're active on many fronts. We've been hitting production guidance, generating positive cash flow from our gold and silver mines. Our exploration is producing encouraging results at our Fox Complex, our San Jose mine and our Los Azules project. In addition, there has been a dramatic political shift that's occurred in Argentina. Its newly elected President is moving aggressively to make the country attractive to large direct foreign investment of which we have one of those situations.
Overall, our consolidated gold equivalent production was up 7% over the first quarter 2023 and costs were in line with guidance. At two of our three mines, we're making good progress. At Gold Bar and San Jose, they exceeded guidance by delivering higher production and lower costs. At Gold Bar, production was up 80% and at San Jose, it was up 15%. And while the results at the Fox Complex were disappointing due to mining lower grade and tonnage during the quarter.
We're expecting over the balance of the year that the production will increase and the cost per ounce will fall to be in line with our year-end guidance. From a financial perspective, the news was also positive. During the quarter, our gross profit was $6 million, some 36% higher than the $4.4 million in the first quarter of 2023. And in this quarter, we reported our results also on an adjusted EBITDA basis because we believe it provides a better representation of the performance of our gold and silver mining operations. Why?
Because it removes the impact of our ongoing investment in McEwen Copper. During the quarter, our adjusted EBITDA was $6.3 million and $0.13 a share versus an adjusted EBITDA loss of $2.9 million or $0.06 a share. So when we include the $18 million loss attributable to our investment in McEwen Copper, we reported a consolidated loss of $20.4 million or $0.41 a share.
In Argentina, the company's new President, Javier Milei, who Mike, Carmen, Stefan and I had the great honor to have a one hour meeting with recently has unleashed an infectious mood of great optimism, something that has not existed in that country for many decades. I said to him that Argentina is very much like the story of Sleeping Beauty, who was poisoned by years of populist government policies and fell into a deep sleep, and now he is the Prince whose kiss has awoken her.
Global investors and innovators are starting to take notice. Just two weeks ago, Elon Musk tweeted, It's time to invest in Argentina. And President Milei's election coupled with the progress we're making advancing Los Azules has made this quarter an incredibly exciting time for McEwen Copper and for McEwen Mining. Our other asset in Argentina is our 49% owned San Jose silver and gold mine. Performance in Q1 of this year was much better than the comparable period last year. And as a result, management is considering resuming its dividend later this year. So we'll be receiving money hopefully from that investment for the first time in a couple of years.
We've also encountered encouraging exploration results there from two different targets. The best results reported were 12 meters of 12.7 grams gold plus 101 grams silver and the other was 6.2 meters of 23.3 grams gold plus 314 grams silver. Pretty nice holes. It's worth noting that the San Jose land package surrounds Newmont Cerro Negro property on three sides.
So let's go back to Los Azules. As the winter begins in the Southern Hemisphere, the 22 drills that were operating there are now being removed having drilled some 69,000 meters this season, which is quite a large program. This drilling has been confirming and upgrading the categories of our estimated resources that were contained in the June 2023 preliminary economic assessment.
They were also drilling to precisely define the location of our payback pit, which is calculated to be payback in three years. Through the winter work, we'll be progressing on delivering a bankable feasibility study for Los Azules in the first half of next year. So looking ahead, we are now in a position to think about growing and I feel the market conditions are ideal to search out opportunities in anticipation of much stronger markets for gold, silver and copper. And here's what we've been doing. First, we've been taking a closer look at the potential opportunities on our existing properties.
And we will be very shortly providing you with exploration results from our Fox Complex, Los Azules and San Jose. Second, we're looking at opportunities that are close to these existing operations. And to that end, we've recently made a friendly takeover bid for a company called Timberline Resources, which has property located close to our Gold Bar Mine. And it also has a property adjoining the Q1 Copper's Elder Creek property, both of which are in Nevada. And three, I believe there are some interesting situations out there that where we could consider bolstering our management strength, increase our resource base and annual production and provide us with greater leverage to the prices of gold, silver and copper.
In Los Azules, we have funds to continue for a while. We are looking at completing the feasibility study and doing the associated engineering. And all the financing for Los Azules has been done in McEwen Copper. We continue to look for opportunities with our principal investors and others to fill that funding. At this point, I'd like to ask Michael Meding, our Vice President, General Manager of McEwen Copper to provide an overview of the political situation in Argentina and some of the changes to regulations that are being promoted and the impact it could have on the value of that asset of ours.
Michael Meding
Thank you so much, Rob. Hello, everybody. Exciting times in Argentina. As Rob said already, we had an exciting quarter with lots of projects at Los Azules. And what we're looking at, at the moment, while Los Azules has a very strong PEA without further incentives. What we see in Argentina is that there are a lot of projects that could benefit from a better investment incentive scheme.
And that has been presented to Congress, to the lower house and a couple of days back and has received approval by the lower house and is now on the Senate for discussion. It's going through the commissions and the administration is trying to get approval of this new exciting project.
It's called [indiscernible] Assets in Spanish. It contains something called LIGI [ph], that's a Large Infrastructure Investment Incentive Machine. Just to give you some ideas what this means if it goes through, and we are cautiously optimistic that it will go through rather shortly is income tax would be reduced from 35% to 25%. Export duty would be reduced from 4.5% to 0%. VAT recovery would be basically instance. And operating bank tax, debit credit tax is 1.2%, would be we would be able to use 100% as an advance for income tax.
So this means that this combined with what is included as having the opportunity to ensure access to the capital markets can change the phase of mining projects and other large infrastructure projects in Argentina. We think that this project is a major driver for the Argentine economy going forward. Back to you, Rob.
Robert McEwen
Thank you, Mike. And as many of you know, there's a high rate of inflation in Argentina, and we've been able to offset that.
Perry Ing
Yes, that's right, Rob. Overall, after our last financing transaction in McEwen Copper, we were able to invest in a variety of products that essentially fully hedged our exposure to Argentine inflation and devaluation. So I believe at the end of the first quarter, McEwen Copper had a treasury of just over $60 million. Since we've deconsolidated McEwen Copper in the fourth quarter of last year, we no longer show McEwen Copper's cash balance on our balance sheet. It's set in our part. We only report there are 48% of the earnings and loss in our income statement.
Jake Sekelsky, Alliance Global Partners
Hi, Rob and team. Thanks for taking my questions.
So it was good to see cost come down quite a bit at Gold Bar and I know you mentioned this is a function of mining, lower strip areas. I'm just curious if that's something you expect to continue a bit into Q2 here, before moving back to more normalized levels of strip as you mentioned in the second half.
Robert McEwen
I'll ask Bill to comment on that.
William Shaver
Yes, Jake. I guess production in the first quarter was pretty much on, it's a little over budget, but it's pretty much on schedule. In the second quarter, we will be expanding the work that we're doing in PIK and also expanding the work that we do in Gold Bar to try and or to get more material or more ore onto the pad in order to improve our leaching. As you probably know, the first quarter is always a bit of a challenge because of rain and snow and cold weather.
This year was a little bit better than last year. Although, this year we did release about four point -- just under five million gallons, where last year we released about nine million gallons. So all in all, I think the first quarter responded well to all the production challenges and we see the second quarter as improving over that.
Jake Sekelsky
What about the stripping?
William Shaver
Yes, and the stripping is just related I guess to where we're taking the ore at the time and we're working with our contractor to, I guess upgrade the number of trucks we have at the site to look after the stripping that's associated with the ore. So we see those two things as kind of being tied together.
Jake Sekelsky
Okay. That's helpful. And then, Rob, you touched on opportunities for growth and things that you're looking at from an M&A standpoint. I'm just curious, should we be thinking more along the lines of complementary type transactions such as Timberline? Or would you be willing to look at, more of a transformational type acquisition? So just your thoughts there would be helpful.
Robert McEwen
We're just going on several fronts, Jake. I just think this market is delivering some situations that bear a lot of consideration. And there was a transformational opportunity that was attractive. Take a close look at it, because I think we're in one of these rare opportunities where this is the time to grow, because we're going to see higher prices going forward. I'm quite confident of that.
Jake Sekelsky
I agree with you there. Okay. That's all for me. Thanks again.
Robert McEwen
Thanks Jake.
Joseph Reagor, ROTH Capital Partners Hey, Rob and team. Thanks for taking my questions. I guess, following on the Jake's comment -- last comment there on acquisitions, the Timberline acquisition, what's your guys' best guess on timing on closing that?
Stefan Spears
I can answer that. It's Stefan. We're looking at an outside date in early July for that closing. There are a couple of factors that could accelerate that, but that's a good day to use at this point.
Joseph Reagor
Okay. Thanks. That's helpful. And then going back to the opening comment, about the accounting treatment on McEwen Copper, can you guys give us any guidance for the rest of this year on what you think your income level expense is going to look like, so that there's not such a big delta between what we have and what actually occurs?
Robert McEwen
Hey, Joe. I think as far as McEwen Copper, Q2 is going to be pretty similar to Q1. I mean, we had over 20 rigs going until May. So we'll continue to have those costs flowing through. Q3 will be quieter as there's no drilling activity, although we will still be working on the feasibility. And then Q4 activity will be dependent on when copper raises money and what the program will be in terms of drilling in the fall. But I will note, obviously, once we do have a feasibility study for McEwen Copper and permits in hand, then under U.S. GAAP, then we can start capitalizing costs at Los Azules, if it makes sense, kind of in line with our Canadian peers.
Joseph Reagor
Okay. And what is the timing on having that feasibility study in hand?
Robert McEwen
Certainly, first half of next year.
Joseph Reagor
Yes. Okay. So that's helpful from a modeling standpoint. And then on Fox, Rob, you commented that the first quarter grades were light, but you expect things to pick up and then cost to drop. Have you already seen a pickup in grade in Q2?
William Shaver
This is Bill. The grade has picked up from this month. It's running now around 3 grams and we hope to see that pick up a little bit more, but we're saying at this point that grade in Q2 will be around 3 grams. So right now it's a case of making sure we put through all the tons we can through the mill.
Joseph Reagor
Okay. So we should expect tonnage to stay relatively similar to what Q1 was and the grade to start working its way higher over the rest of the year?
William Shaver
That's correct.
Joseph Reagor
Okay. All right. Well, that was the questions I had. Thanks, guys.
Robert McEwen
Okay. Thank you, Joe.
Mike Hossack, Cantor Fitzgerald
Yes. Good morning, Rob and team. Thanks for hosting the call. The last caller asked one of my questions, but I just wanted to follow-up here, and make sure I heard Perry's comment correctly that he made right at the end of the prepared remarks. Did you say cash and investments of approximately $60 million in the copper subsidiary at exit Q1?
Robert McEwen
At the end of Q1, that's correct, yes.
Mike Hossack, Cantor Fitzgerald
Okay. And then maybe as a follow-up to that, in prior quarters and prior years, you guys would give some, call it, soft guidance on when you would look at potentially IPO in McEwen Copper. Is IPO kind of off the table now? Are you going to -- is the priority to keep funding this with Stellantis and Nuton? Or how are you thinking about potentially IPO in that unit?
Robert McEwen
Well, we feel we're in a -- in between spot in that where we've got the PEA last year that was published and we're looking at a feasibility study. There's probably 100,000 meters of drilling that haven't been included in the resource, the results of which. And we are --- we filed for an environmental application approval, and we're hopeful to get that before we publish the feasibility study. So after the feasibility is out and we have a permit in hand, that would be a time to be looking at an IPO when we believe we'd maximize the value.
Mike Hossack, Cantor Fitzgerald
Got it. Okay. Thank you for that. I'll turn it back.
Robert McEwen
You're welcome.
Private Investor
Thank you. Thanks Rob for hosting this call. Just a couple of quick questions. I guess we could start with the decline at Fox. Could you just give us an update on that? I know, it was supposed to start sometime this year. If you could, give us an update on that, as well as the progress towards construction starting in Mexico?
Robert McEwen
Okay. I'll ask Bill to address that question. Bill?
William Shaver
Yes. Thank you very much, Bill. Yes, in terms of the ramp at stock, we expect to start the surface excavation work this month. We're in the midst of negotiating with contractors on that matter and we hope to get started like as soon as they can get equipment into the field. So and the people we're talking to have equipment in their yard, so that should start as scheduled.
In terms of Phoenix, there we are waiting for permits and we -- those have all been the required submissions have all been made. We optimistically, we hope to see that in kind of the third, second well, second to third quarter. I guess, I'm going to say the third quarter now, because we are hoping to have it like in the next few months. There is an election coming up in Mexico. So we're actually planning to make a trip to Mexico in the next few weeks, where we will go and have a chat with the Minister of Economic Development, who we had to the site last year and basically said he would try and help us in any way he could and if we needed help to come and see him.
So we're going to maybe take advantage of that. And, but, yes, we're doing now the final engineering of the plant and so as soon as we have a permit in hand, we'll start working on that. We've already ordered gas generators for that project and most of the equipment that's going to be installed is now refurbished at the site.
Private Investor
Okay. So you'd expect construction to begin by the Q4 with potentially first production coming out Q1 of next year, is that a reasonable timeframe?
William Shaver
That would be our hope, yes. Okay.
Private Investor
And I guess as far as the -- given the results that came out in stock earlier or in February of this year. The -- are there any plans to include the Stock East into the initial ramp going down or is that something for future development?
William Shaver
No, absolutely. That is going to be the first order of the day, once we get underground and we are, we've completed a drilling program in the Q1 of the year at Stock East and the results of that I would say are very good and we are going to have an announcement about those results sometime in the next 30 days. And yes, we'll basically once we get the ramp collared and get underground, we will be heading in two directions, one towards Stock East and the other towards Stock West.
So, yes, that's because of its that particular ore zone is very close to surface, we will head there right away as soon as we get on the ground.
Private Investor
Sounds great. That was all the questions I had. Thanks so much.
Robert McEwen
Thank you, Bill.
Thank you, ladies and gentlemen for joining us. I believe there is a question that came in by email, and I think I've already answered it. It was relating to the market performance this morning. I think it's overdone and we've got a lot of positive momentum at the moment.
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Post by Entendance on May 17, 2024 4:59:19 GMT -5
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Post by Entendance on May 28, 2024 1:14:29 GMT -5
McEwen Mining: Grey Fox Exploration Update Extending the Production Pipeline: Good Grades Near Surface, Potential at Depth Assay Highlights:
24GF-1426: 586.7 g/t Au over 0.5 m (18.86 oz/t Au over 1.6 ft)
24GF-1424: 14.3 g/t Au over 5.0 m (0.46 oz/t Au over 16.4 ft)
24GF-1397: 17.4 g/t Au over 4.2 m (0.56 oz/t Au over 13.8 ft)
22GF-1366: 8.8 g/t Au over 3.9 m (0.28 oz/t Au over 12.8 ft)
(See Figure 2. All assay values are true widths)
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Post by Entendance on May 29, 2024 8:47:12 GMT -5
McEwen Mining Announces Flow-Through Financing at $14.36 (Cdn$19.59) per Share a 19% Premium to Market
May 28, 2024
CANADIAN BASE SHELF PROSPECTUS IS ACCESSIBLE, AND PROSPECTUS SUPPLEMENT WILL BE ACCESSIBLE ON SEDAR+ WITHIN TWO BUSINESS DAYS
TORONTO, May 28, 2024 -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) (“McEwen”) is pleased to announce it has priced a public financing to fund continued exploration and development at the Fox Complex in the Timmins region of Ontario, primarily focused on exploration drilling and the development of an underground access ramp from surface to mine the gold resources of Stock East and West. This represents the next area of production growth at the Fox Complex.
The proceeds of this financing will be used exclusively for qualifying Canadian Exploration Expenses (within the meaning of subsection 66.1(6) of the Income Tax Act (Canada)) (“CEE”) and Canadian Development Expenses (within the meaning of subsection 66.2(5) of the Income Tax Act (Canada)) (“CDE”), including:
Part 1 (CEE) of the financing consists of a US$10.0 million (Cdn$13,650,890) offering of 643,000 flow-through common shares at a price of US$15.56 (Cdn$21.23); and
Part 2 (CDE) of the financing consists of a US$12.0 million (Cdn$16,384,900) offering of 890,000 flow-through common shares at a price of US$13.49 (Cdn$18.41),
(Part 1 (CEE) and Part 2 (CDE) together being the “Offering”).
The Offering of 1,533,000 flow-through common shares for aggregate gross proceeds of US$22.0 million (Cdn$30,035,790) is expected to close on June 14, 2024 (the “Closing”) and is subject to customary closing conditions, including approval from the Toronto Stock Exchange (“TSX”) and New York Stock Exchange (“NYSE”). Total proceeds from the Offering net of placement agents’ fees is expected to be US$20.9 million (Cdn$28,534,000).
Cantor Fitzgerald Canada Corporation and Cantor Fitzgerald & Co. is leading a syndicate of placement agents for the Offering.
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Post by Entendance on Jun 5, 2024 3:14:58 GMT -5
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Post by Entendance on Jun 6, 2024 6:58:23 GMT -5
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Post by Entendance on Jun 15, 2024 0:11:09 GMT -5
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Post by Entendance on Jun 21, 2024 2:36:17 GMT -5
Fox Complex: Extending Mine Life
A New Mine at the Stock Property
Exploration Has Driven the Prospect of Earlier Cash Flow
TORONTO, June 20th, 2024 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to report on the progress at the Fox Complex, where we are advancing a new mine on the Stock Property. Production is planned to start in the second half of 2025. Pre-construction activities of the Stock portal have commenced, which will allow access to mining of the three gold zones, West, Main and East. In addition, the portal will provide cost-effective underground drill platforms to enable testing for expected depth extensions of these three zones. Recent exploration resulted in a 29% increase in the estimated gold resources for Stock’s East Zone. The Fox Complex is comprised of several properties, including Stock, and has Measured and Indicated gold resources of 1,905,000 ounces at average grade of 4.20 g/t Au and Inferred gold resources of 549,000 ounces at average grade of 3.60 g/t Au.
Stock Ramp to Access Future Production
The Stock Property hosts the Stock Mill and the former Stock Mine, which produced 137,000 ounces of gold from an underground operation between 1989 and 2005. Our exploration has successfully defined three deposits at Stock - the East, Main and West zones. This mineralization has been found on a three-kilometer-long mineralized trend situated along the prolific Destor-Porcupine Fault.
Pre-construction activities have commenced at the portal with the removal of overburden. Underground development is expected to begin in Q3. The Stock Ramp will connect the West Zone and the East Zone to the existing historical underground workings of the Main Zone.
Stock is expected to provide increased gold production at a lower cost per ounce than our current production from the Froome Mine. The advantages of mining at Stock compared to Froome are significant and the reasons are three-fold: one, there is a significantly lower transportation or haulage cost. The Froome mine is deeper and located 35 kilometers from the Stock Mill, while the gold at Stock is at shallower depths and right next to the Mill; two, increased gold production due to expected higher mill throughput, as a result of the Stock material having a lower (softer) work index compared to what is currently being processed from the Froome Mine; and three, the bulk of Stock is free of royalties, whereas Froome is not.
Mining will start in the East Zone, with a recently increased resource, and provide early production and cash flow. Our plan for the Stock development is to concurrently drive the Stock Ramp to the East Zone along with the ramps to the Main and West Zones. This approach will allow for multiple sources of mineralization to be accessed from the Stock Ramp. |
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Post by Entendance on Jun 25, 2024 2:45:40 GMT -5
June 24, 2024
TORONTO, June 24, 2024 -- McEwen Mining Inc. (NYSE and TSX: MUX) announces a non-brokered private placement financing of up to 2,333,333 common shares of its wholly-owned subsidiary McEwen Copper Inc. at a subscription price of US$30.00 per common share, for gross proceeds of up to US$70 million (the "Offering"). McEwen Copper currently has 30,937,615 common shares outstanding (basic and diluted).
Lead orders to purchase 27% of the total Offering have been committed by McEwen Mining and Rob McEwen. McEwen Mining will purchase up to 466,667 common shares of McEwen Copper for US$14 million and Rob McEwen will purchase up to 166,666 common shares for US$5 million. Final investment amounts are subject to adjustment according to anti-dilution and pre-emptive rights on the part of other existing shareholders of McEwen Copper.
This Offering will be used to advance work on a bankable feasibility study for the Los Azules copper project, which is scheduled for publication by the end of the first quarter (Q1) of 2025.
Subscription for the remaining 1,700,000 common shares is available to qualified accredited investors, subject to a US$2 million minimum investment and certain other conditions. The securities sold in the Offering are private and subject to transfer restrictions until such time when they become listed on a public exchange.
Prior to the Offering, ownership in McEwen Copper is of 14,768,000 common shares (47.7%) for McEwen Mining and 4,000,000 common shares for Rob McEwen (12.9%). Assuming completion of the full amount of the Offering and the investment amounts shown above, McEwen Mining will own 45.8% of McEwen Copper and Rob McEwen will own 12.5%.
About McEwen Copper
McEwen Copper Inc. holds a 100% interest in the Los Azules copper project in San Juan, Argentina and the Elder Creek project in Nevada, USA.
Los Azules ranked the 8th largest undeveloped copper deposits in the world (Mining Intelligence, 2022). Its current copper resources have increased to 10.9 billion pounds at a grade of 0.40% Cu (Indicated category) and an additional 26.7 billion pounds at a grade of 0.31% Cu (Inferred category) as of the June 2023 Preliminary Economic Assessment (PEA). The PEA estimates a $2.7 billion after-tax NPV8% at $3.75/lb Cu, a low average C1 production cost of $1.07/lb Cu, a 3.2-year payback period, and a 27-year mine life.
A bankable feasibility study (FS) is underway with completion, planned by the end of Q1 2025. Los Azules is being designed to be distinctly different from other copper mines, consuming significantly less water, emitting much lower carbon and progressing towards carbon neutral by 2038, and being powered by 100% renewable electricity once in operation.
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Post by Entendance on Jul 15, 2024 21:38:54 GMT -5
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Post by Entendance on Jul 18, 2024 3:08:57 GMT -5
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Post by Entendance on Jul 20, 2024 2:58:32 GMT -5
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Post by Entendance on Aug 6, 2024 8:56:17 GMT -5
McEwen Mining Q2 2024 Results Conference Call
August 6, 2024
TORONTO, Aug. 06, 2024 -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) invites you to join our conference call following the release of our Q2 2024 financial results on Thursday, August 8th, 2024, at 11:00 AM EDT, where management will discuss our financial results and project developments and follow with a question-and-answer session. Participants can ask questions directly over the phone during the webcast.
Thursday
August 8th 2024
at 11:00 AM EDT
Toll Free Dial-In North America: (888) 210-3454
Toll Free Dial-In Other Countries: events.q4irportal.com/custom/access/2324/
Toll Dial-In: (646) 960-0130
Conference ID Number: 3232920
Webcast Link: events.q4inc.com/attendee/655979798/guest
An archived replay of the webcast will be available approximately 2 hours after the conclusion of the live event. Access the replay on the Company’s media page at www.mcewenmining.com/media.
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Post by Entendance on Aug 8, 2024 1:37:08 GMT -5
August 7, 2024 McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) today reported its second quarter (Q2) and half year (H1) results for the period ended June 30th, 2024.
“I’m delighted that this quarter was the most profitable since 2016 as measured by Adjusted EBITDA(1) for our mining operations and Q3 is off to a good start. Production costs increased 8% quarter-over-quarter, but revenue grew by 38%. Fox and Gold Bar are capitalizing on the higher gold prices to increase operating cash flow, Gold Bar in particular with its AISC at only $1,400 per GEO in H1. It’s important to note that our net loss continues to be influenced by McEwen Copper and its expenses at Los Azules, which are non-cash as it relates to MUX,” commented Rob McEwen, Chairman and Chief Owner. “McEwen Copper continues to grow in value - based on the most recent injection of capital at $30 per share the implied market value is now $947 million, with MUX owning 48.3% or $457 million. That is 106% of MUX’s current fully diluted market capitalization. In addition, MUX shareowners also get exposure to a 1.25% NSR royalty on Los Azules, our cashflow generating gold-silver mines, and development projects.”
Our gross profit in Q2 was $10.8 million and our Adjusted EBITDA(1) was $7.2 million, compared to a gross loss of $3.5 million and Adjusted EBITDA of negative $5.8 million in Q2 2023. Higher revenues, driven by a 21% increase in realized gold prices and a 13% increase in GEOs sold drove improvements in gross profit.
After equity accounting for $35.2 million in net expenses incurred by McEwen Copper’s Los Azules project ($16.8 million impact on MUX) we reported a net loss in Q2 of $13.0 million, or $0.26 per share, compared to a net loss of $21.6 million, or $0.46 per share in Q2 2023.
In Q2, we invested $5.0 million in exploration activities at the Grey Fox property and Gold Bar mine. We invested $6.7 million in capital expenditures largely on the Stock Project where earthwork at the portal entrance is expected to be completed in the second half of 2024. An underground ramp will be developed to access the Main, East and West zones of the Stock deposit.
Improved Liquidity and Capital Resources
We reported consolidated cash and cash equivalents of $40.7 million, debt of $40.0 million, and consolidated working capital of $29.1 million as at June 30, 2024. (December 31, 2023 – $23.0 million, $40.0 million and $22.7 million, respectively).
Steady Gold & Silver Production
Production from our three operating mines was 35,265 gold equivalent ounces (GEOs)(2) in Q2, compared to 35,658 GEOs in Q2 2023. Production guidance remains 130,000-145,000 GEOs for 2024.
Through the efforts of our operating teams, we have been steadily improving our production and cash flow while improving our prospects for the future with aggressive exploration drilling.
Attracting and retaining our employees is a constant priority for us as it is for many of our peers, contractors and suppliers.
Individual Mine Performance (See Table 1):
1. Gold Bar produced 12,297 GEOs during Q2, an increase of 56% compared to Q2 2023. Increased mine production from our higher-grade Pick pit facilitated higher production. During H1 2024, we produced 24,013 GEOs at Gold Bar and we are on track to potentially exceed annual production guidance of 40,000 to 43,000 GEOs.
Cash costs and AISC per GEO sold in Q2 were $1,532 and $1,634, respectively, compared to $2,113 and $2,585 in Q2 2023, respectively. The reduction in cash costs and AISC per GEO sold was driven by higher GEOs sold, as noted above.
Gold Bar Mine
($ millions) Q2 2024 Q2 2023 H1 2024 H1 2023
Revenue from gold sales 29.7 16.0 55.0 27.6
Cash costs 19.2 17.1 32.4 26.5
Gross margin 10.5 (1.1) 22.6 1.1
Gross margin % 35.4% - 41.1% 4.0%
2. Fox has had a challenging first half of the year. At Froome we had a stope fail on the boundary between the ore and the waste, which required us to move out of this area. We are presently formulating a more conservative mining plan to ensure we can optimize future ore extraction. This event decreased stope availability and gold grade processed during the quarter.
Froome is entering its final 18 months of production, focusing on mining areas that are generally smaller in size because they are on the periphery of the ore body, and grades that are generally lower than the main zones extracted over the last two years. We are preparing to meet these challenges as we transition from Froome to Stock, where we anticipate beginning limited production by mid-2025. We have increased throughput at our processing plant by approximately 40% over the last 18 months, growing from 900 tonnes per day (tpd) to over 1,300 tpd.
In Q2, Fox produced 8,297 GEOs, a 20% decrease compared to Q2 2023. During H1 2024, we produced 15,800 GEOs at Fox. While we engaged a mining contractor at the end of Q2 2024 to address development, we expect to be approximately 15-20% below our annual production guidance of 40,000-42,000 GEOs.
Cash costs and AISC per GEO sold were $1,588 and $1,874 in Q2, respectively, compared to $1,237 and $1,371 in Q2 2023, respectively. The increase in unit costs was driven by lower GEOs sold as described above.
Fox Complex
($ millions) Q2 2024 Q2 2023 H1 2024 H1 2023
Revenue from gold sales 17.8 18.4 32.5 41.6
Cash costs 12.9 12.5 24.7 26.5
Gross margin 4.9 5.9 7.8 15.1
Gross margin % 27.5% 32.1% 24.0% 36.3%
3. San José produced 14,672 attributable GEOs during Q2, a 15% decrease compared to Q2 2023. Production was impacted adversely by lower gold grades processed, slightly offset by higher gold recoveries. With 27,605 attributable GEOs produced in H1 2024, San José remains on track to meet annual production guidance of 50,000 to 60,000 attributable GEOs(2).
Cash costs and AISC per GEO sold were $1,624 and $2,032 in Q2, respectively, compared to $1,362 and $1,811 in Q2 2023, respectively. The increase in cash costs and AISC per GEO sold resulted from lower GEOs produced and sold as described above, and foreign exchange impacts of a stronger than expected Argentine Peso.
San José Mine—100% basis
($ millions) Q2 2024 Q2 2023 H1 2024 H1 2023
Revenue from gold and silver sales 74.3 67.7 140.3 113.5
Cash costs 48.2 46.9 96.1 88.1
Gross margin 26.1 20.8 44.2 25.4
Gross margin % 35.1% 30.7% 31.5% 22.4%
Exploration
Exploration results from flow-through funded drilling at the Fox Complex were published in separate press releases on May 27th and June 20th.
Infill and exploration results from Los Azules were published on May 16th. Drilling to support the upcoming Feasibility Study by the end of Q1 2025 is complete and work on the study is progressing as planned.
Timberline Acquisition
On April 16th, 2024, we announced the friendly acquisition of Timberline Resources Corporation for all-share consideration. Timberline’s special meeting to approve the merger will be held on August 16th, 2024.
Benefits to Timberline shareholders include: 1) significant premium, 2) ownership in a growing gold-silver-copper producer focused in the Americas, and 3) participation in the potential acceleration of the development of the Eureka project.
Benefits to MUX shareholders include: 1) acquisition of a gold deposit that is near-term development opportunity complimentary to Gold Bar, 2) addition of a large prospective package of exploration properties, and 3) consolidation of additional land around the Elder Creek property (owned by McEwen Copper).
Any Timberline shareholders who have not yet voted their proxy are encouraged to vote FOR the merger.
Advancing McEwen Copper
We own a 48.3% interest in McEwen Copper Inc., which holds a 100% interest in the Los Azules copper project in San Juan, Argentina, and the Elder Creek exploration project in Nevada, USA. The recent financing by McEwen Copper gave the company a market value of $947.1 million, which means the value of McEwen Mining shareholding has increased to $457.5 million or $8.45 per fully diluted share. McEwen Mining has three classes of assets, its gold and silver mines, its portfolio of six gold, silver and copper royalties and its 48.3% interest in McEwen Copper. Based on the recent financing of McEwen Copper, the implied value of MUX’s ownership in McEwen Copper is approximately 106% of MUX’s current fully diluted market capitalization as at August 7th, 2024.
On July 12, 2024, McEwen Mining and Rob McEwen invested $14 million and $5 million, respectively, as part of the previously announced $70 million McEwen Copper financing at $30 per share (see the June 24, 2024 news release). The balance of the financing is expected to close in Q3 or early Q4 2024.
Milei’s Magic Turbocharging Argentina
The Argentina National Government led by President Milei has recently passed important new legislation designed to support and encourage direct foreign investments in large infrastructure projects including projects like Los Azules. The aim is to create conditions of predictability and legal certainty for large investments, and to create special tax incentives for qualifying strategic sectors.
On July 29th, 2024, it was announced that BHP and Lundin Mining would jointly acquire Filo Corp for approximately $3.1 billion; and form a 50/50 joint venture to develop both the Filo del Sol and Josemaria projects located in the north of San Juan, Argentina. This significant development is an endorsement by the world’s largest mining company of investing in major copper projects in Argentina.
Management Conference Call
Management will discuss our Q2 financial results and project developments and follow with a question-and-answer session. Questions can be asked directly by participants over the phone during the webcast.
Thursday
Aug 8th, 2024
at 11:00 AM EDT
Toll Free Dial-In (US & Canada): (888) 210-3454
Toll Free Dial-In (Other Countries): events.q4irportal.com/custom/access/2324/
Toll Dial-In: (646) 960-0130
Conference ID Number: 3232920
Event Registration Link: events.q4inc.com/attendee/655979798/guest
An archived replay of the webcast will be available approximately 2 hours following the conclusion of the live event. Access the replay on the Company’s media page at www.mcewenmining.com/media.
Table 1 provides production and cost results for Q2 and H1, with comparative results from Q2 and H1 2023 and our guidance range for 2024.
Q2 H1 Full Year 2024
Guidance Range
2023 2024 2023 2024
Consolidated Production
GEOs(2) 35,658 35,265 66,022 68,320 130,000-145,000
Gold Bar Mine, Nevada
GEOs 7,916 12,297 14,372 24,013 40,000-43,000
Cash Costs/GEO 2,113 1,532 1,842 1,313 $1,450-1,550
AISC/GEO 2,585 1,634 2,190 1,404 $1,650-1,750
Fox Complex, Canada
GEOs 10,351 8,297 23,051 15,800 40,000-42,000
Cash Costs/GEO 1,237 1,588 1,153 1,572 $1,225-1,325
AISC/GEO 1,371 1,874 1,337 1,886 $1,450-1,550
San José Mine, Argentina (49%)(3)
GEOs 17,358 14,672 28,599 27,605 50,000-60,000
Cash Costs/GEO $1,362 1,624 $1,537 1,615 $1,300-1,500
AISC/GEO $1,811 2,032 $1,980 1,978 $1,500-1,700
Notes:
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), cash costs per ounce, and all-in sustaining costs (AISC) per ounce are non-GAAP financial performance measures with no standardized definition under U.S. GAAP. For definition of the non-GAAP measures see "Non-GAAP- Financial Measures" section in this press release; for the reconciliation of the non-GAAP measures to the closest U.S. GAAP measures, see the Management Discussion and Analysis for the quarter ended June 30, 2024, filed on EDGAR and SEDAR Plus.
'Gold Equivalent Ounces' are calculated based on a gold to silver price ratio of 81:1 for Q2 2024 and 83:1 for Q2 2023. 2024 production guidance is calculated based on 85:1 gold to silver price ratio.
Represents the portion attributable to us from our 49% interest in the San José Mine.
Technical Information
The technical content of this news release related to financial results, mining and development projects has been reviewed and approved by William (Bill) Shaver, P.Eng., COO of McEwen Mining and a Qualified Person as defined by SEC S-K 1300 and the Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects."
Reliability of Information Regarding San José
Minera Santa Cruz S.A., the owner of the San José Mine, is responsible for and has supplied to the Company all reported results from the San José Mine. McEwen Mining’s joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates other than MSC do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING NON-GAAP MEASURES
In this release, we have provided information prepared or calculated according to United States Generally Accepted Accounting Principles (“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 not be comparable to similar measures presented by other companies.
Cash Costs and All-in Sustaining Costs
Cash costs consist of mining, processing, on-site general and administrative costs, community and permitting costs related to current operations, royalty costs, refining and treatment charges (for both doré and concentrate products), sales costs, export taxes and operational stripping costs, and exclude depreciation and amortization. All-in sustaining costs consist of cash costs (as described above), plus accretion of retirement obligations and amortization of the asset retirement costs related to operating sites, sustaining exploration and development costs, sustaining capital expenditures, and sustaining lease payments. Both cash costs and all-in sustaining costs are divided by the gold equivalent ounces sold to determine cash costs and all-in sustaining costs on a per ounce basis. We use and report these measures to provide additional information regarding operational efficiencies on an individual mine basis, and believe that these measures provide investors and analysts with useful information about our underlying costs of operations. A reconciliation to production costs applicable to sales, the nearest U.S. GAAP measure is provided in McEwen Mining's Annual Report on Form 10-K for the year ended December 31, 2023.
Three months ended June 30, 2024 Six months ended June 30, 2024
Gold Bar Fox Complex Total Gold Bar Fox Complex Total
(in thousands, except per ounce) (in thousands, except per ounce)
Production costs applicable to sales (100% owned) $ 19,170 $ 12,896 $ 32,066 $ 32,437 $ 24,739 $ 57,176
Mine site reclamation, accretion and amortization 307 134 442 615 271 885
In‑mine exploration 507 — 507 587 — 587
Capitalized underground mine development (sustaining) — 2,102 2,102 — 4,405 4,405
Capital expenditures on plant and equipment (sustaining) 428 — 428 979 — 979
Sustaining leases 32 81 113 53 266 320
All‑in sustaining costs $ 20,444 $ 15,213 $ 35,658 $ 34,671 $ 29,681 $ 64,352
Ounces sold, including stream (GEO) 12.5 8.1 20.6 24.7 15.7 40.4
Cash cost per ounce sold ($/GEO) $ 1,532 $ 1,588 $ 1,554 $ 1,313 $ 1,572 $ 1,414
AISC per ounce sold ($/GEO) $ 1,634 $ 1,874 $ 1,728 $ 1,404 $ 1,886 $ 1,592
Three months ended June 30, 2023 Six months ended June 30, 2023
Gold Bar Fox Complex Total Gold Bar Fox Complex Total
(in thousands, except per ounce) (in thousands, except per ounce)
Production costs applicable to sales - Cash costs (100% owned) $ 17,115 $ 12,455 $ 29,570 $ 26,455 $ 26,528 $ 52,983
In‑mine exploration 1,115 — 1,115 1,597 — 1,597
Capitalized underground mine development (sustaining) — 1,177 1,177 — 3,831 3,831
Capital expenditures on plant and equipment (sustaining) 2,484 — 2,484 3,177 — 3,177
Sustaining leases 221 176 397 229 399 628
All‑in sustaining costs $ 20,935 $ 13,808 $ 34,743 $ 31,458 $ 30,758 $ 62,216
Ounces sold, including stream (GEO) 8.1 10.1 18.2 14.4 23.0 37.4
Cash cost per ounce sold ($/GEO) $ 2,113 $ 1,237 $ 1,627 $ 1,842 $ 1,153 $ 1,418
AISC per ounce sold ($/GEO) $ 2,585 $ 1,371 $ 1,912 $ 2,190 $ 1,337 $ 1,665
Three months ended June 30, Six months ended June 30,
2024 2023 2024 2023
San José mine cash costs (100% basis) (in thousands, except per ounce)
Production costs applicable to sales - Cash costs $ 48,220 $ 46,931 $ 96,105 $ 88,055
Mine site reclamation, accretion and amortization 361 95 665 386
Site exploration expenses 1,890 2,846 3,321 4,798
Capitalized underground mine development (sustaining) 7,049 8,919 14,380 16,049
Less: Depreciation (621 ) (703 ) (1,420 ) (1,253 )
Capital expenditures (sustaining) 3,443 4,312 4,643 5,401
All‑in sustaining costs $ 60,342 $ 62,400 $ 117,694 $ 113,436
Ounces sold (GEO) 29.7 34.4 59.5 57.3
Cash cost per ounce sold ($/GEO) $ 1,624 $ 1,362 $ 1,615 $ 1,537
AISC per ounce sold ($/GEO) $ 2,032 $ 1,811 $ 1,978 $ 1,980
Adjusted EBITDA and adjusted EBITDA per share
Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is a non-GAAP financial measure and does not have any standardized meaning. We use adjusted EBITDA to evaluate our operating performance and ability to generate cash flow from our wholly owned operations in production; we disclose this metric as we believe this measure provides valuable assistance to investors and analysts in evaluating our ability to finance our precious metal operations and capital activities separately from our copper exploration operations. The most directly comparable measure prepared in accordance with GAAP is net loss before income and mining taxes. Adjusted EBITDA is calculated by adding back McEwen Copper's income or loss impacts on our consolidated income or loss before income and mining taxes.
Three months ended June 30, Six months ended June 30,
2024 2023 2024 2023
Adjusted EBITDA (in thousands) (in thousands)
Net loss before income and mining taxes $ (15,371 ) $ (45,310 ) $ (38,311 ) $ (82,256 )
Less:
Depreciation and depletion 4,810 8,602 15,088 15,780
Loss from investment in McEwen Copper Inc. (Note 9) 16,816 — 34,828 —
Advanced Projects – McEwen Copper Inc. — 28,524 — 60,405
General, interest and other – McEwen Copper Inc. — 661 — (5,211 )
Interest expense 972 1,678 1,945 3,025
Adjusted EBITDA $ 7,227 $ (5,845 ) $ (48,583 ) $ (17,455 )
Weighted average shares outstanding (thousands) 49,718 47,428 49,580 47,428
Adjusted EBITDA per share $ 0.15 $ (0.12 ) $ (0.98 ) $ (0.37 )
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this news release, McEwen Mining Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the Company to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves, foreign exchange volatility, foreign exchange controls, foreign currency risk, and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Mining's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, Quarterly Report on Form 10-Q for the three months ended March 31, 2024 and June 30, 2024, and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.
The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by the management of McEwen Mining Inc.
ABOUT MCEWEN MINING
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 48% of McEwen Copper which owns the large, advanced stage Los Azules copper project in Argentina. The Company’s objective is to improve the productivity and life of its assets with the goal of increasing its share price and providing an investor yield. Rob McEwen, Chairman and Chief Owner, has a personal investment in the company of US$220 million. His annual salary is US$1.
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Post by Entendance on Aug 9, 2024 1:36:55 GMT -5
McEwen Copper Update, Excitement in Argentina:
Milei Magic Is Turbocharging Foreign Investments
US$4.4 Billion Copper Transaction by BHP and Lundin Mining
Los Azules Infill Drilling Confirmed High Grade Copper Zone
Infill Drill Highlights:
AZ24375: 217 meters of 1.11 % Cu, incl. 100 meters of 1.32 % Cu
AZ24335: 158 meters of 0.84 % Cu, incl. 78.5 meters of 1.10 % Cu
AZ24403: 276 meters of 0.86 % Cu, incl. 160 meters of 0.96 % Cu
AZ24320: 146 meters of 0.89 % Cu
AZ24332: 119.6 meters of 0.72 % Cu
McEwen Copper Inc., 48.3% owned by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to comment on the excitement in Argentina that includes:
Remarkable new legislation introduced by President Milei to encourage large domestic and foreign investments in the country;
A US$4.4 Billion transaction led by BHP, the world’s largest mining company, and Lundin Mining to acquire two copper deposits located in the same province in Argentina as Los Azules;
At Los Azules, infill drilling during the 2023-24 season upgraded the resource categories, validated the geological model and confirmed the high-grade zone. Resource drilling for the Los Azules Feasibility Study is now complete, and the study remains on track for delivery in early 2025.
Remarkable and Welcoming Legislation – Milei Magic
President Milei’s government introduced legislation that has rolled out the welcome mat for large-scale domestic and foreign direct investments in Argentina.
This legislation recently approved by Argentina’s government is called "Bases and Starting Points for the Freedom of Argentines" and includes the Incentive Regime for Large Investors (RIGI), offering significant tax and foreign exchange incentives to encourage domestic and direct foreign investment in key sectors of the economy, including mining.
This program addresses most of all past stumbling blocks for sustained development of the mining sector in Argentina, and it's a huge step in the right direction.
We are excited about these changes as they open the door for many infrastructure investments in Argentina and significantly improve the economics of the Los Azules project and lower risks for investors. Details of the legislation are found in Appendix A - More Information on RIGI and you can click here for the official summary.
US$4.4 Billion Copper Transaction
Last week, BHP, the world’s largest mining company, and Lundin Mining announced a US$4.4 Billion transaction through which they have agreed to jointly acquire the two copper deposits Filo del Sol and Josemaria located in the same San Juan province of Argentina as Los Azules.
We believe that this transaction is a convincing demonstration of San Juan and Argentina´s attractiveness for large-scale mining projects and evidence of Argentina moving towards becoming a Tier 1 mining jurisdiction. Click on these links to read details of the transaction, in press releases by BHP, Lundin Mining, and Filo Corp.
Los Azules Infill Drilling Highlights Confirming High Grade Copper Zone
At Los Azules, infill drilling upgraded the resource categories, validated the geological model and confirmed the high-grade zone. During the 2023-24 drilling season over 70,000 meters (m) were completed, that have strengthened the interpretation of the geological model in addition to extending the supergene enrichment zone mineralization, both at the edges and to depth.
Resource drilling for the Los Azules Feasibility Study is now complete, and the study remains on track for delivery in early 2025.
Drilling Highlights
Hole AZ24375, drilled to a depth of 369 m, returned 217 m of 1.11 % Cu in the enriched zone, including 100 m of 1.32 % Cu.
Hole AZ24335, drilled to a depth of 227.5 m, returned a 158 m intercept of 0.84% Cu within the enriched zone, including 78.5 m of 1.10 % Cu.
Hole AZ24403, drilled to a depth of 427 m, returned a 276 m intercept of 0.86% Cu within the enriched zone, including 160 m of 0.96 % Cu.
Hole AZ24320, drilled to a depth of 204 m, returned 146 m of 0.89% Cu in the enriched zone.
Hole AZ24332, drilled to a depth of 255.6 m, returned 119.6 m of 0.72% Cu in the enriched zone.
The 2023-2024 drill campaign successfully achieved its objective of infilling existing drill hole data to support the conversion of resources to Measured or Indicated Mineral Resources to include in the Los Azules Feasibility Study. In addition, geotechnical, metallurgical, hydrogeological and condemnation drilling was carried out.
The locations of the highlighted results are presented in 8 figures. A plan or aerial view of the resources and the outline of the PEA pit are shown in Figure 1. Figures 2 to 7 show recent drilling in relation to the overburden, the leached, enriched and primary zones, and the 30-year pit shell of the 2023 Preliminary Economic Assessment (PEA) (marked by the green line in the sections). Figure 8 represents a cross section with recent drill data and inferred geology.
Drill results and location information for this press release are available in Appendix B - Detailed Data From the 2023-2024 Drilling Campaign at Los Azules.
Figure 1 shows a plan view of the location of the sections and drill holes reported in this press release. All cross sections are 50 m equidistant from each other, with the lowest numbered section starting from the southern end of the deposit. Shown in blue are the collars of the drill holes included in this news release.
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Post by Entendance on Aug 11, 2024 9:42:06 GMT -5
McEwen Mining Inc. (NYSE:MUX) Q2 2024 Earnings Conference Call August 8, 2024 11:00 AM ET
Company Participants
Rob McEwen - Chairman & Chief Owner
William Shaver - Chief Operating Officer
Perry Ing - Chief Financial Officer
Michael Meding - Vice President and General Manager of McEwen Copper
Conference Call Participants
Jake Sekelsky - Alliance Global Partners
Heiko Ihle - H.C. Wainwright
Mike Kozak - Cantor Fitzgerald
Allan Barry - Rocks and Stocks
Rene and David - individuals John - individual
Phil Powers - individual Patrick Shin - individual
Rob McEwen
Thank you very much, operator. Good morning, and welcome, ladies and gentlemen. It was a quarter we've all been waiting to see. It was our most profitable quarter since 2016. We recorded a gross profit of $10.8 million and adjusted EBITDA of $7.2 million, compared to losses in the second quarter of last year.
It was a quarter of improved financial liquidity. Our cash was up 77% to $40.7 million, working capital was up 28% to $29.1 million, and our debt remained unchanged at $40 million since year-end. It was a quarter when both McEwen Mining and myself increased our investment in McEwen Copper.
Based on the last financing of McEwen Copper, the implied value has risen to $947 million, which makes McEwen Mining's 48.3% interest equal to $457 million. On a per-share basis, that is $8.45 behind every fully diluted share of McEwen Mining. It’s worth noting that this value is greater than our entire market capitalization today.
Last night, our closing share price was $8 on the NYSE. I want to remind you that McEwen Mining also owns a portfolio of six royalties, with the largest being a 1.25% NSR on Los Azules. Additionally, we own three cash-flowing gold and silver mines. Management has conducted an internal valuation of our assets, ranging from a low of $20 a share to $50 a share.
Q2 was a quarter when the investment outlook for Argentina improved dramatically. I'll refer to it as "Milei Magic" after President Milei. The Argentine government approved the most significant changes for foreign direct investment in the country in the last 20 years. These changes include lower taxes, removal of exchange controls, financial stability agreements, and more for major projects.
The impact will be significant on McEwen Copper's Los Azules NPV. Following these legislative changes, the world's largest mining company, BHP, made a significant move into Argentina's copper scene, leading a $4.4 billion transaction with Lundin Mining to acquire Filo Mining and the Filo del Sol Deposit and the Josemaria Deposit.
Not only does this transaction demonstrate tremendous confidence in Argentina, but it also sets a new value for large copper deposits in the country. Based on the current published resources of Filo del Sol and Josemaria, Los Azules has a deposit that is larger than the combined resources of both of these deposits and has a higher copper grade. All three deposits are located in San Juan province, a jurisdiction that the Fraser Institute ranks as one of the best for mining in South America.
At this point, I'd like to open the call for questions and answers.
Jake Sekelsky, Alliance Global Partners
Hey, Rob and team thanks for taking my questions and congrats on the quarter.
Rob McEwen
Thanks Jake.
Jake Sekelsky
So just starting with the ground conditions at Fox, I'm just curious is this a one-off at a specific stope, or are you seeing this in other areas underground as well?
William Shaver
Thanks for the question, Jake. No, it's a single area of the upper level of the mine. It's now -- it's along the contact between ore and waste and on the waste side there was some less competent rock, which basically failed, and once we realized exactly what was going on, we backfilled that area with cemented fill and so it's totally stabilized now.
And so the path forward is to define exactly how we're going to recover the rest of that ore and that will be by using significantly smaller bites or significantly smaller sizes of stopes that we'll have absolute control of.
So I don't think we have a big concern about it. And I guess the mistake we made was that we didn't recognize that that rock adjacent to that particular stope being waste was in fact as incompetent as it turned out to be.
So I think it's a one-off that's now under control. We've had our rock mechanics consultants advising us on how to put say more security around what we're doing there. And I guess I'm reasonably comfortable that we're not going to see that again.
Jake Sekelsky
Okay. That's helpful. Thanks for that color. And then just switching over to Gold Bar. You had a strong quarter there and it seems like turnaround efforts have really fully taken hold. Do we expect sub call it $1,500 an ounce AISC going forward there? Or were there anything specific to Q2 that drove that major decrease in cost?
William Shaver
Yeah. I don't think that there's anything that drove that cost down. It's basically because the production is I guess so far has been slightly above our target. So that's helping that. In fact at the present time, we're doing a significant amount of drilling so far this year we've done about $5 million of drilling. So that is also included in the cost there. So I think we anticipate that as long as we can move the right amount of material that the cost will stay in that same area, or it might move up slightly, but it seems to be predictable at this time based on the data we have.
Jake Sekelsky
Great. Thanks again.
Rob McEwen
Okay. Thank you.
Heiko Ihle, H.C. Wainwright
Hey, Rob and team, thanks for taking my questions. I hope all’s well.
Rob McEwen
Thanks, Heiko.
Heiko Ihle
You talked quite extensively about Argentina in your prepared remarks, which is obviously pretty pertinent. But maybe can you give a little bit of color on your longer-term internal tax outlook given the special incentives that you had discussed? I mean, I guess what I'm saying is internally what are you looking at receiving? And is there a way for us to maybe quantify that?
Rob McEwen
Mike, do you want to address that question?
Michael Meding
Sure. So we have done some interim calculations what the RIGI application means for our loan. And by no means, we would like to invalidate our existing BA [ph]. But to give you an idea, the after-tax changes with the conservative application of the RIGI would be in the area of about more than 30%, $960 million.
So this makes projects, which is not our case, but which makes other projects that were not that attractive now attractive because what Argentina has done is -- and again based on companies and management's estimate it has brought Argentina once qualified for the RIGI which we believe for example we do on similar footing with overall tax burden such as Chile. It also includes a couple of benefits that help significantly during the construction phase, which is basically fast VAT recoveries. So those are the things that are very, very helpful for projects such as ours.
Heiko Ihle
That's helpful.
Rob McEwen
Yeah, the tax rate is going from 35% to 25% and there are other benefits. As Mike mentioned, VAT refunds accelerated. So and customs importation has speeded up. It's a big push for us and others in the country.
Heiko Ihle
Yeah. No, a 100%. And I mean things seem to be actually getting done there from everything you read in the press. Profitability in the quarter was obviously pretty good. What kind of cash flow should we expect additional investments into your asset base beyond what you're currently forecasting? Is there an internal gold price? Is there an internal cash flow metric that you have? Or is it sort of just learning by doing thing where if excess funds are there, we'll figure it out then?
Perry Ing
Yeah, Heiko it's Perry. I mean, obviously, we're constrained in our current environment by permitting. I mean I think that's one of the things that drives our time line. We're only looking at projects that we think we have the balance sheet to execute on. So for us that is building the ramp back at the stock mine which is going well and we've raised the CDE for Mexico. We would like to put back into production, but that's obviously subject to permitting. And as Bill said at Gold Bar, we're spending money on exploration there. And we're having some tangible results which we hope we can share in the future. But all these things we hope will provide incremental production increases over the coming years.
Heiko Ihle
It’s a very fair answer. Thank you very much. I'll get back in queue.
Perry Ing
Thanks, Heiko.
Mike Kozak, Cantor Fitzgerald
Good morning, Rob. Well, good morning. Yeah. Just a couple of questions for me. First, have you guys set a budget yet for the 2024-2025 exploration season at Los Azules or is it going to depend on how much of the $70 million comes in between now and the end of the year?
Rob McEwen
We've done most of the drilling before the feasibility study. So the big drilling campaign is finished. We will be drilling looking at that new deposit or new copper showing close to Los Azules, but it won't be anywhere near the type of expenditure we did this year.
Mike Kozak
Okay. That's helpful. And then the kind of a follow-up I had to that was how much do you have to spend on the technical work related to the feasibility study?
Rob McEwen
We're looking at about $60 million for that.
Mike Kozak
$60 million? And of which you all have still in front of you or some has been spent already?
Rob McEwen
Yes. That's in front of us.
Mike Kozak
Okay. That was it. Thank you -- thanks for answer that. I'll turn it over.
Rob McEwen
You're welcome, Mike.
Allan Barry, Rocks and Stocks
Hi, everyone. Thanks for taking my call.
Rob McEwen
Happy to.
Allan Barry
Every major mining company seems to be interested in getting into copper. The coverage is fairly bare when it comes to copper development projects that rank in the size that a major would be interested in highly. With BHP and the Lundin taken a run at Filo, I think it gives us some real-world valuation metrics. And I was wondering if you could shine some light on how Los Azules compares to Filo del Sol and what's in the deal?
Rob McEwen
It compares very favorably. First of all, Los Azules is in lower altitude than either of Filo del Sol or Josemaria. And Los Azules is closer to infrastructure major power lines and highways. We're -- at least according to a Goldman Sachs study of a PEA we were in the lowest cost quartile and Josemaria was in the highest. Of course, that might change now that they -- if they consolidate those two properties and develop them concurrently, you'll see some reduction in capital. Los Azules will probably be significantly less capital because we're going to be a heap leach operation as opposed to a conventional milling operation so much less capital.
And from a -- based on the published resources, Filo and Josemaria we have a larger resource than the combined resources of those two deposits and a higher copper grade. That might change with new work coming out of new resource studies out of those two. But at the moment based on the published resources we're larger and higher copper grade. So, I think we compare very favorably.
Allan Barry
My second question was on the gold front. Gold has been a very powerful global market. And today I think that an argument can be made that really only the largest gold stocks have joined the party.
And therefore it looks like there's some attractive opportunities down the gold stock food chain. Is there any comments you can make as far as possible strategic investments? Or your thoughts on that those kind of opportunities?
Rob McEwen
Very clearly the majors have got the most benefit out of the increase in the gold price. You're seeing it in their improved cash flow. A lot of the junior producers and explorers there'll be a rotation out of the seniors into the intermediates and juniors as the price of gold stays where it is or goes higher.
And we're a case in point. We were a high-cost producer and with the higher gold price, our margins started moving up quite smartly. And that's going to happen across the sector.
And then the juniors -- once the seniors get more flush with cash, they're going to be looking how do they grow their resources and production and they'll be looking down into the intermediate and junior market. So, it's a good time for investors in my mind to be looking at the smaller companies right now.
Allan Barry
Thank you very much for taking my call. Congratulations on the -- getting back in the right track since 2016. And I'll turn it back over.
Rob McEwen
Thank you, Allan.
Rene and David
This is her husband, David. And we'd like to inquire about the MQMNW, we're involved with that. And we understand that's a new project and I just wonder if there's going to be any new movement in that direction?
Rob McEwen
I'm not familiar with that name. MQMW, what's that?
David
Its warrants. MQMNW.
Unidentified Company Representative
Yes so MQMNW is an OTC ticker for McEwen Mining Warrants which are out of the money and last traded for a very low price. So, what is your question about those particular warrants?
Rob McEwen
I was just curious if there's any kind of an IPO coming in on a project that was supposedly that involved as a new project I would assume. And we've been kind of waiting for an IPO for a long time over a long time.
Unidentified Company Representative
No. So, I think just to maybe clear up some confusion. The warrants were issued some time ago and don't aren't related to any particular project. Those -- and as I said those warrants are out of the money. They expire towards the end of this year in November of 2024.
So, with regard to new projects though I mean I can address we are in the process of acquiring Timberline Resources. That company has assets in Nevada, which are good synergies with our existing mine there. That acquisition will hopefully close towards the end of this month in August. And we're looking forward to working on those projects. That's the only current acquisition that we have in the pipeline.
David
So that wouldn't involve the warrant circumstance would it?
Unidentified Company Representative
No, not at all.
David
Not at all, okay. Well, I guess you've answered our question.
Rob McEwen
Thank you, David.
John, individual
Hi, thank you. My family and I have been shareholders for over 12 years. My question is why do you think that the McEwen Copper hasn't been reflected in the stock price? And what do you think it will take to change that?
Rob McEwen
It's a good question. We separated the Copper and financed it independently starting in -- I guess we closed the first deal in 2022 September. Since that time, our share price has outperformed the Dow, the NASDAQ, the price of gold, silver, copper, the GDX, and the GDXJ.
So, when we separated the copper was to gain visibility for it. I do think that the recent transaction with BHP and Lundin Mining, on two large copper projects in the same province in Argentina as Los Azules, our Las Azules property will get people thinking about its value. I think we're still beginning. We've done a great deal of drilling and we'll have a feasibility study out, early next year. So I think all of that will be reflected in -- should be a higher price for the value of that project.
John
Thank you very much.
William Shaver
You’re welcome -- The copper prices weakened in the last in the last three months relative to gold. So it's taken a bit of the value out of the market. I believe, we followed a lot of the copper stocks in terms of price direction.
John
Okay. Thank you very much.
Phil Powers
Hi, Bill and Stefan. Thanks for taking my call. A couple of quick questions. As far as looking at the financials, it appears that San Jose is generating quite a bit of revenue and a fair bit of cash these days. And I was wondering, if there's been any update you've gotten from Hot Shield regarding a dividend? And if so, is this going to be -- are there any plans for regular dividends?
Perry Ing
Hi, Phil it's Perry. Thanks for the question. So we did receive a small dividend in the second quarter but obviously, given where gold and silver prices are, we would want to see a more robust dividend. I would say, we've had a very good dialogue with Hot Shield. We're spending some of the free cash flow generated this year on a mill expansion. So that will take throughput up to 2,000 tonnes per day. So that project is going well and we should see the benefits of that next year. And I guess, what we've committed to do with Hot Shield [ph] is look at the cash generation this quarter, and potentially expect to receive a more sizable dividend in the fourth quarter of this year. So obviously, silver has come off a little bit, but gold is still above $2,400 as of today. So as you said, still generating positive cash flow and the mine seems to be performing quite well.
Phil Powers
Yes. Thank you. And my second question is, I know you -- at least Bill and maybe a couple of other members of the team went down to Mexico recently, and it looks like you're making some adjustments to the permit. And I was just wondering, if you could give us a little more color on some details regarding some of the adjustments to the mine plan, as well as if this is going to raise the cost to getting towards a permit and a potentially production.
William Shaver
Yes. So, thanks very much for the question. So yes, at this point, we're anticipating receiving the permit. And unfortunately, I guess as you probably know recently, there's been elections in Mexico. So the new team is now getting into place. On the government side, we have had some discussions with responsible agents in Mexico, about our permitting. And there's an anticipation I guess that's been created where we think, we might get the permit late in Q3 or early in Q4. But as in all permitting situations, there's not a lot of clarity around when permits are given.
Meanwhile, we're also looking at other opportunities to reduce the capital cost and do some other arrangements in terms of the permitting to make that less onerous on the government. And so I would say, at this point, we're in a state of flux and hope to have some better news for ourselves and for our shareholders later in Q3 and early in Q4.
Phil Powers
Okay. Thank you very much.
William Shaver
You’re welcome. Thanks, Phil
Patrick Shin
Good morning, Mr. McEwen and team. Just wanted to find out if there's any updates on the RIGI. From what I could gather through the message boards and some of the Internet research, it's been debated, but it seems very unclear what benefits there are.
Rob McEwen
There are many. Michael Meding, our VP and General Manager of McEwen Copper could give you a concise statement of that, and we'll be putting out a press release today. In the appendix of it, will be a discussion. It has many, many positive features.
Michael Meding
So if I may give you the current state of the RIGI. The RIGI is part of a law package that has been signed into law and it has been discussed in the Lower House, in the Senate and is now enacted. The provinces are in the course of adhering to the law. The law is active. What does it mean to be beneficiary of this law is that the main benefits include corporate income tax reduction from 35% to 25%, so 10 percentage points decrease in corporate tax rates.
Accelerated depreciation and unlimited carry forward of losses, no limitations of deduction of interest for five years, tax on dividend reduced from 7% to 3.5% and relief of withholding tax on some payments to foreign beneficiaries, which is really important for big infrastructure projects.
Bank tax, transaction tax, which was before 1.2%, will be fully credible against income tax and the municipalities and the provinces adhering to the law will be banned from increasing taxes to the projects.
For the construction, it means that the 20% VAT, that in Argentina takes some time to recover, has a new mechanism to be recovered very quickly. The state will issue certificates that can be directly used for tax payments. So if you are interested to learn more about that, please drop a note and we can send you documentation. But what is also important to note is specifically import and exports are free from licenses and duties.
Exports after a certain amount of time at the moment, copper projects have a 4.5% or a 0% to 8% sliding scale export duty and that will go away with the implementation of the RIGI after a certain amount of time. And it gives you 30 to 40 years of tax stability that you can litigate either in country or outside of the country. So it's very beneficial for mining projects.
Patrick Shin
Okay. So it sounds like it's a done deal. There's no more debate that needs to be done by the Argentinian government in order to have these benefits?
Michael Meding
So what is going to happen now is that the law will be regulated. So the law has been signed into law and has been published in the official gazette. And the regulation should be coming out in the next couple of weeks. The provinces that are interested in adhering to that law, they are adhering via provincial laws.
You know that Argentina is pretty much made after the US, so natural resources for example, belong to the provinces. So there is discussion going on in the different provinces. Some have already adhered. The province where we are, we expect this to be approved relatively soon as well, so that you have a full coverage both on a national as well as provincial and municipal level with the tax stability that, I mentioned was from 30 to 40 years with all the benefits mentioned.
Patrick Shin
Okay. Thank you so much, gentlemen and I appreciate all the hard work you guys have done.
Rob McEwen
Thank you, Patrick. And thank you, ladies and gentlemen for joining us today. As you can see, we're in a good financial position. We've got -- our drilling is delivering results and we've made a number of press releases on our exploration results. In the press release that's going out today on Los Azules, it will be providing additional drill data, infill drilling. And Argentina is open for business. It's been a pariah for a long time. And I'll call it, Milei magic has changed that and been embraced by the government of Argentina. So that, plus our improving financial position, I think, puts us in a very good position going forward to finance our growth plan. Thank you for joining us.
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Post by Entendance on Aug 14, 2024 2:24:16 GMT -5
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Post by Entendance on Aug 19, 2024 23:28:12 GMT -5
TORONTO, Aug. 19, 2024 McEwen Mining Inc. today reported the completion of the previously announced acquisition of all the issued and outstanding common shares of Timberline Resources Corporation (TSXV:TBR)(OTCQB:TLRS) (“Timberline”) by way of a merger between Timberline and a wholly-owned subsidiary of McEwen Mining (the “Transaction”). Timberline shareholders overwhelmingly approved the merger with McEwen Mining at Timberline’s special meeting held on August 16th, 2024.
“We are pleased to bring Timberline’s assets into McEwen Mining and offer a warm welcome to its shareowners. We aim to move the Eureka project forward on multiple fronts, including additional exploration drilling, permitting activities and development planning,” commented Rob McEwen, Chairman and Chief Owner. “Nevada is a place where we want to operate for a long time, our priority is adding opportunities for growth at a reasonable cost.”
As a result of the Transaction, the shares of Timberline will cease trading on, and will be delisted from, the TSX Venture Exchange and the OTCQB Venture within five business days.
Pursuant to the Transaction, former Timberline shareholders are entitled to receive 0.01 of a McEwen Mining share for each Timberline share held. In order to receive McEwen Mining shares in exchange for Timberline shares, Timberline registered shareholders must complete, sign, date and return (together with the certificate or DRS statement representing their shares) the letter of transmittal, which are being mailed to such shareholders by Computershare Investor Services Inc., the depositary.
For those shareholders of Timberline whose shares are registered in the name of a broker, investment dealer, bank, trust company or other intermediary or nominee, these shares should automatically transfer in the near future. For more information, please contact your specific intermediary or nominee.
McEwen Mining is an “Eligible Interlisted Issuer” as such term is defined in the TSX Company Manual. As an Eligible Interlisted Issuer, the Company has relied on an exemption pursuant to Section 602.1 of the TSX Company Manual, the effect of which is that the Company was not required to comply with certain requirements relating to the issuance of securities in connection with the Transaction.
For full details of the Transaction refer to the Form S-4/A Registration Statement filed by filed by McEwen Mining on EDGAR at www.sec.gov.
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Post by Entendance on Aug 23, 2024 2:52:00 GMT -5
Recent and Upcoming McEwen Mining and McEwen Copper Presentations
August 22, 2024
TORONTO, Aug. 22, 2024 -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) and McEwen Copper Inc. are pleased to announce their participation in Fastmarkets’ “Argentina: An emerging powerhouse for copper and lithium” webinar and in three upcoming industry conferences.
In the Fastmarkets webinar (available here), McEwen Mining’s CEO and Chief Owner Rob McEwen participated in a panel discussion exploring Argentina’s vast copper and lithium reserves and how these resources are positioning the country as a pivotal player in the global energy transition.
For the upcoming conferences, Rob McEwen will be joined by Michael Meding, Vice President and General Manager of McEwen Copper. Rob McEwen will provide insights into McEwen Mining’s projects and operations, while Michael Meding will present on the Los Azules copper project.
Jefferies Global Metals & Mining Conference, September 4-5, 2024, New York, NY
Presentation Details
Date: Wednesday, September 4, 2024
Time: 3:40-4:10 PM EDT
Link: wsw.com/webcast/jeff303/mux/1724250
(Recording will be available at this location for 90 days following the presentation)
H.C. Wainwright 26th Annual Global Investment Conference, September 9-11, 2024, New York, NY
Presentation Details
Date: Monday, September 9, 2024
Time: 7:00-7:30 AM EDT
Link: journey.ct.events/view/631ba475-0941-405b-9ed4-c1bc35dde713
(Recording will be available at this location for 90 days following the presentation)
2024 Beaver Creek Precious Metals Summit, September 10-13, 2024, Beaver Creek, CO
Presentation Details
Date: Tuesday, September 10, 2024
Time: 4:15-4:30 PM MDT (6:15-6:30 PM EDT)
Event Link: www.gowebcasting.com/C1664
(Presentations will be archived at
The links to these presentations will also be available on our company’s Media page:
www.mcewenmining.com/media/overview
ABOUT MCEWEN COPPER
McEwen Copper is a well-funded, private company that owns 100% of the large, advanced-stage Los Azules copper project, located in the San Juan province, Argentina. McEwen Copper is a 48.3%-owned private subsidiary of McEwen Mining, which trades under the ticker MUX on NYSE and TSX.
Los Azules is being designed to be distinctly different from a conventional copper mine by consuming significantly less water, emitting much lower carbon, progressing towards carbon neutral by 2038, and being powered by 100% renewable electricity once in operation. The updated Preliminary Economic Assessment (PEA) released in June 2023 projects a long life of mine, short payback period, low production cost per pound, high annual copper production, and a 21.2% after-tax IRR.
ABOUT MCEWEN MINING
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico, and Argentina. McEwen Mining also owns a 48.3% interest in McEwen Copper, which is developing the large, advanced-stage Los Azules copper project in Argentina. The Company’s objective is to improve the productivity and life of its assets with the goal of increasing the share price and providing investor yield. Rob McEwen, Chairman and Chief Owner, has a personal investment in the companies of US$225 million. His annual salary is US$1.
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Post by Entendance on Aug 25, 2024 5:11:42 GMT -5
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Post by Entendance on Aug 27, 2024 2:10:29 GMT -5
TORONTO, August 26, 2024 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to announce that its 48%-owned McEwen Copper Inc. has secured an agreement with YPF Luz to power its large Los Azules copper project with 100% renewable energy. This exclusive agreement covers the supply of renewable energy through a high-voltage transmission line, with YPF Luz responsible for its development and financing.
YPF Luz and McEwen Copper have signed a Memorandum of Understanding (MOU) that allows the companies to negotiate the exclusive energy supply for the Los Azules project in the San Juan province using renewable energy sources. The agreement also includes connecting the project to the Argentine Interconnection System (SADI) via a high-voltage transmission line, the design, construction, and financing of which will be carried out by YPF Luz. The energy to be supplied will be sourced from YPF Luz’s renewable assets connected to SADI.
Michael Meding, VP of McEwen Copper and General Manager of the Los Azules project, stated: “Los Azules will play a critical role for Argentina and the world by significantly contributing to decarbonization. The geological potential of the project will position San Juan on the international map of resources for the energy transition, and in this context, YPF Luz is a strategic ally to help us achieve our goal of being 100% renewable.”
Martín Mandarano, CEO of YPF Luz, added: “We are happy to take this new step with McEwen Copper and contribute to enabling sustainable copper production, which is fundamental for the energy transition. This agreement demonstrates our commitment to providing comprehensive energy solutions tailored to the needs of each client, in this case with electrical works that allow the project to be powered by reliable and renewable energy.”
The MOU strengthens the alliance between the two companies, which began in early 2023 with an initial agreement to explore solutions for ensuring the power supply to Los Azules.
ABOUT YPF LUZ
YPF Luz (YPF Energía Eléctrica S.A.) is an Argentine company, a leader in power generation, operating since 2013. It currently has more than 15 assets in 7 provinces, with an installed capacity of 3.2 GW, from which it generates energy for the wholesale and industrial markets. It is building an additional 418 MW of solar and wind energy in projects located in the provinces of Córdoba, Mendoza, and Buenos Aires. YPF Luz’s mission is to generate profitable, efficient, and sustainable energy, optimizing natural resources for the production of thermal and renewable energy.
ABOUT MCEWEN COPPER
McEwen Copper is a well-funded, private company that owns 100% of the large, advanced-stage Los Azules copper project, located in the San Juan province, Argentina. McEwen Copper is a 48.3%-owned private subsidiary of McEwen Mining, which trades under the ticker MUX on NYSE and TSX.
Los Azules is being designed to be distinctly different from a conventional copper mine by consuming significantly less water, emitting much lower carbon, progressing towards carbon neutral by 2038, and being powered by 100% renewable electricity once in operation. The updated Preliminary Economic Assessment (PEA) released in June 2023 projects a long life of mine, short payback period, low production cost per pound, high annual copper production, and a 21.2% after-tax IRR.
Los Azules is one of the largest and most promising copper projects globally, with significant production potential that will position McEwen Copper as a leader in providing critical metals for the global energy transition. The project is being developed in partnership with strategic partners such as Stellantis, a global leader in vehicle manufacturing, and Nuton, a subsidiary of Rio Tinto specialized in advanced technologies for efficient and sustainable copper extraction.
ABOUT MCEWEN MINING
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico, and Argentina. McEwen Mining also owns a 48.3% interest in McEwen Copper, which is developing the large, advanced-stage Los Azules copper project in Argentina. The Company’s objective is to improve the productivity and life of its assets with the goal of increasing the share price and providing investor yield. Rob McEwen, Chairman and Chief Owner, has a personal investment in the companies of US$225 million. His annual salary is US$1.
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Post by Entendance on Aug 29, 2024 4:17:19 GMT -5
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Post by Entendance on Sept 4, 2024 22:03:32 GMT -5
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Fiat Currency Apocalypse Approaches as