McEwen (NYSE:MUX) 2025 Conference Transcript

Summary of McEwen Mining and McEwen Copper Conference Call Company Overview - Company: McEwen Mining (NYSE:MUX) and McEwen Copper - Key Executives: Rob McEwen (Executive Chairman) and Michael Meding (VP and GM of Los Azules) - Market Focus: Gold, copper, and silver mining with significant exploration and production potential Industry Insights - Commodity Market Context: Current commodity prices are at a cyclical low compared to the S&P 500, suggesting a favorable buying opportunity for commodities [2][3] - Mining Ownership: Only about 1% of global portfolios are invested in mining, indicating a potential for growth in this sector [2] - Copper Demand: Increasing demand for copper driven by electrification and data centers, with a projected shortage of 300,000 to 500,000 tons in 2023 [13] Financial Performance - Trading Volume: McEwen Mining trades approximately $1 million daily, with a three-month average of $28 million [3] - Ownership Structure: Rob McEwen owns 15% of McEwen Mining and 13% of McEwen Copper, with institutional investors holding significant stakes [4] - Cash Position: The company has $54 million in cash and has raised $450 million for its copper subsidiary [6][25] Project Highlights - Los Azules Project: - Located in Argentina, it is a world-class copper resource with significant upside potential [11][12] - Feasibility study indicates a production capacity of 3.3 million tons of copper with an after-tax NPV of $2.9 billion and an IRR of 19.8% [15][16] - Initial capital costs have increased from $2.5 billion to $3.2 billion due to cost escalations in Argentina [14][15] - The project aims for first copper production by 2030 [20] Environmental and Strategic Initiatives - Sustainability Focus: The project is designed with low carbon intensity and renewable energy agreements, aiming for carbon neutrality by 2038 [17][19] - Government Support: Received REGI approval from the Argentine government, which provides tax stability and incentives [20] Exploration and Growth Potential - Resource Estimates: McEwen Mining has 4.2 million ounces of gold, over 37 million ounces of silver, and more than 13 billion pounds of copper attributable to its interests [7] - Production Growth: Projected 73% increase in production by 2030, primarily through organic growth [8][32] - Exploration Targets: Identified seven targets on the Los Azules property, with plans for drilling [25][26] Market Outlook - Gold and Silver Prices: Anticipated increases in gold prices, with silver expected to follow suit, potentially reaching $300 to $500 [34] - Investment Sentiment: Growing interest in gold as a safe-haven asset, with expectations of increased investment in the mining sector as tech investments decline [39] Conclusion - McEwen Mining and McEwen Copper are positioned for significant growth in the mining sector, with strong project fundamentals, strategic partnerships, and a focus on sustainability. The current market conditions present a favorable environment for investment in commodities, particularly gold and copper.