McEwen (MUX) John Tumazos Very Independent Research Virtual Conference summary

Strategic project updates and financing

• Advancing the Los Azules copper project with over $450 million raised since September 2022, attracting major partners like Stellantis and Rio Tinto.

• McEwen Copper aims to be Argentina's first revenue-generating copper mine, focusing on green, carbon-neutral production and innovative heap leach technology.

• The project targets $3 billion+ in financing, with a mix of strategic equity, private equity, multilaterals, and debt, and is open to forming a consortium with current and new partners.

• IPO for McEwen Copper is planned post-feasibility study and REGI approval, expected in late Q3, to maximize valuation benefits from new tax and export incentives.

• Argentina's new investment regime (REGI) offers significant tax reductions, export duty exemptions, and 30-year stability, enhancing project economics.

Operational performance and production outlook

• 2024 consolidated production guidance is 120,000–140,000 gold equivalent ounces, with all-in sustaining costs up to $2,000/oz.

• Transitioning Fox Complex from Froome to Stock Mine will eliminate legacy gold streams, improving profitability.

• Production is expected to exceed 225,000 ounces within five years, driven by development at Stock and Grey Fox, pending permitting.

• Positive cash flow of around $30 million is projected for the year, with profitability expected to improve as Los Azules expenses are capitalized post-feasibility.

• Exploration remains a priority, with ongoing drilling and new targets identified at Los Azules and other properties.

Market trends and industry context

• Commodities, especially copper and gold, are seen as undervalued relative to financial assets, with demand driven by EVs, renewables, and data centers.

• Gold equities, particularly juniors, are lagging gold prices, presenting attractive investment opportunities.

• Major industry transactions in Argentina, such as BHP-Lundin and Rio Tinto's investments, signal growing confidence in the region.

• Capital costs are rising globally, with Argentina experiencing 43% inflation since January 2024, but deregulation and incentives are attracting capital.

• The sector is expected to benefit from higher commodity prices and increased investor interest as supply deficits persist.