McEwen (MUX) Jefferies Global Industrial Conference 2024 summary

Strategic overview and asset portfolio

• Operations span North and South America, with gold mines in Canada and Nevada, a development project in Mexico, and a joint venture in Argentina.

• Two major copper projects, including Los Azules in Argentina, are key assets.

• 53 million shares outstanding, providing exposure to both copper and gold.

• Significant personal investment of $225 million by leadership, with 16% equity ownership.

• Copper subsidiary funded separately to avoid dilution and create a pure play.

Financial performance and valuation

• Copper subsidiary raised $82 million in 2022, with valuation climbing over 200% since then.

• Current share price just below $9; management estimates value between $20 and $50 per share.

• 60% of company value attributed to the copper project; royalty portfolio valued at $35 million.

• Los Azules copper project now valued at just under $1 billion after recent financings.

Los Azules copper project highlights

• 5.7 billion tonnes of material with 37.6 billion lbs of copper; eighth largest undeveloped copper deposit globally.

• Preliminary economic assessment projects a 27-year mine life, mining only 40% of the drilled resource.

• Production cost estimates reduced to $1.02/lb, placing it in the industry's lowest cost quartile.

• Major shareholders include Stellantis (19%) and Rio Tinto (14%).

• Project is in a prolific copper district near major infrastructure and other large deposits.