McEwen (MUX) 2024 Precious Metals Summit Beaver Creek summary

Strategic Overview and Recent Performance

• CEO Rob McEwen holds a 16% stake in MUX, investing $225 million personally and taking a $1 annual salary, demonstrating strong leadership alignment.

• Share price rebounded 183% since copper project financing, outperforming sector benchmarks.

• Portfolio includes gold, silver, and copper assets in North and South America, with a focus on the Los Azules copper project.

• Financial turnaround with net income of $54.7M in 2023, reduced debt, increased liquidity, and strong production guidance for 2024.

• Gold production expected to reach 200,000 ounces by 2028, with 2024 guidance of 130,000–145,000 GEOs.

Los Azules Copper Project Highlights

• Los Azules is the eighth-largest undeveloped copper deposit globally, with 37.6 billion pounds of copper and a 27-year mine life.

• Projected annual output of 180,000 tons at $1.02/lb cash cost, $2.9 billion NPV at $3.75 copper, 22% IRR, and a 3-year payback.

• Resource size and grade surpass neighboring projects, with lower altitude, better infrastructure, and ongoing exploration expanding the deposit and discovering new porphyry systems.

• Project ownership now at 48% after four financing rounds, with major partners including Stellantis and Rio Tinto supporting green copper initiatives.

• Bankable feasibility study expected in the first half of next year.

Market Positioning and Valuation

• Implied project value under $1 billion, with McEwen Copper's market cap at $947M as of July 2024, and MUX trading at a significant discount to asset value.

• Argentina's investment climate is improving, with new RIGI regime, government reforms, and major foreign investments enhancing project economics.

• Project is in the lowest cost quartile globally, targeting carbon neutrality by 2038 and leveraging renewable energy.

• Ongoing exploration at Los Azules and the Tango target indicates further resource expansion potential.

• MUX shares outstanding at 53.0M, market cap at $446M, and average daily trading volume of 634,000 as of September 2024.