McEwen (MUX) investor relations material

Market and industry outlook

• Commodities are at a 55-year cyclical low relative to the S&P 500, suggesting a favorable entry point for investors.

• Mining sector is underrepresented in global portfolios, with only about 1% allocation.

• Copper demand is rising due to electrification and data center growth, with a projected global shortage of 300,000–500,000 tons this year.

• Gold is outperforming both junior and senior mining equities, with significant room for sector catch-up.

• Silver could see substantial price increases if historical gold-silver ratios are reached.

Company structure and financials

• The group consists of gold, copper, and royalty portfolios, with copper as the largest segment.

• Raised $450 million privately for the copper subsidiary, attracting major partners like Stellantis and Rio Tinto.

• Current cash position is $54 million, with convertible debt structured to minimize dilution.

• Management has significant personal investment and alignment with shareholders.

• Share price offers 22% to 3.8x upside based on internal valuation ranges.

Project updates and resource base

• Los Azules copper project in Argentina is the flagship asset, with a new feasibility study released.

• Measured and indicated resources increased to 2 billion tons at 0.36% copper, with 15.7 billion pounds contained.

• Initial capital cost is $3.2 billion, with after-tax IRR of 19.8% and NPV of $2.9 billion.

• Project targets carbon neutrality by 2038, using 100% renewable energy and minimal water consumption.

• Environmental permit and major tax incentives secured, including 30-year tax stability and international arbitration rights.