McEwen Mining (MUX) 9 May 242024 Q1 Earnings call transcript

Hello, ladies and gentlemen. Welcome to McEwen Mining's Q1 2024 Operating and Financial Results Conference Call. Present from the company today are Rob McEwen, Chairman and Chief Owner; Perry Ing, Chief Financial Officer; Jeff Chan, Vice President, Finance; William Shaver, Chief Operating Officer; Stefan Spears, Vice President, Corporate Development; Michael Meding, Vice President and General Manager of McEwen Copper; and Carmen Diges, General Counsel and Secretary.

[Operator Instructions] I will now turn the call over to Mr. Rob McEwen, Chief Owner. sir. ahead, go Please

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copper like So in all would U.S. our Argentina. GAAP fact company, to we Azules that of as to a project reiterate the related attributable expense we expenses reporting Los the

of own So we given that the company. XX%

work Reporting where the earnings lot unlike statement, is not listed companies or under drilling our you in and for that Canadian Australian loss. see into capitalize a through expensed would them going net and Standards, that reflected report being they Financial of may project those income costs of peers, our All International

$XX our So of was as -- at [indiscernible] approximately we reported additional general $XX more which look well investment to $X a in consolidated an if McEwen directly expenses. loss as of into attributable our million net in exploration detail you earnings, million, Copper million

reported we not loss would nature. we that be IFRS, had under a again, So of showing

Fox Los and and San hitting project. saying, guidance, silver gold start our is just on quarter, would mine we I flow fronts. we're Perry. Azules Jose at our encouraging out cash results exploration our from generating many production a you, been our producing had active Complex, Thank mines, and positive We've our good

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first During million the the the our was $X higher than in quarter, of million, $X.X XXXX. XX% gross some profit quarter

quarter, our investment operations. believe ongoing impact provides an we performance And better representation mining on Because a the basis silver Copper. reported of results also it of the McEwen gold in and adjusted EBITDA our removes in our this because it Why? we of

-- million and or EBITDA and $X.X versus $X.XX adjusted During -- -- an or adjusted $X.X of share. our a quarter, million was a $X.XX the EBITDA share loss

that Milei, loss the company's our $XX we Argentina, McEwen President, In who million to to many country of has we the So recently, share. meeting loss the of mood a a investment a have Mike, reported infectious for that unleashed has not attributable with and existed $X.XX X-hour I in great in include decades. Carmen, Copper, optimism, when an something or consolidated new honor Stephan great million had Javier $XX.X

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Our other owned resuming dividend of mine. Argentina silver asset is result, XX% period year QX in much San is than this Jose And as in the a comparable year. this later Performance management our its gold and was year. better considering last

of XX gram hopefully, encountered X different X.X be meters exploration also from results the the encouraging XX.X receiving grams of grams XXX nice there The holes. in gold, time that grams silver, XX.X couple pretty money, plus targets. and of best results investment XXX silver, plus reported we'll So for was were meters years. first a from We've gold, assay other

the It's X that noting Negro Jose package on land worth Cerro property surrounds San Newmont sides.

back Azules. go let's to So Los

define quite As confirming a been has are the there large being calculated drilling some operating winter This Southern the resources of categories estimated in drills Hemisphere, years. X drilling is now preliminary of June which payback were program. begins to the and XX,XXX economic that be season, having in to contained XX in location also we're that our meters were this the the precisely They pit, payback the upgrading assessment. XXXX our removed, which is drilled

for first a work, study Through half delivering we'll be of the winter next Azules year. bankable feasibility Los the progressing in on

and now ideal much silver of are gold, about ahead, feel markets stronger position out I in looking conditions search we to in growing, anticipation copper. and think for market a the opportunities to are So

we've what been here's And doing.

very you we've and a Complex, Jose. Los First, closer Fox Azules results will exploration providing opportunities at our the from taking San on properties. existing look been with our be we potential And shortly

that silver which at friendly that to a made there to our takeover called strength, consider mine. to our we've Copper's of are increase it for also believe And looking Gold Creek are and and Timberline base I with operations. has greater the and gold, opportunities resource which end, McEwen And are property us provide these some recently situations our where copper. to a annual could company -- we're has of close close existing three, there interesting located property, management Second, bolstering a both leverage production out property the bid And joining Bar Elder Nevada. Resources, we prices in

In we to have Azules, while. Los a for funds continue

the at been looking feasibility and and for McEwen are study the Copper. has associated all in completing We Azules done engineering doing the financing Los

our to point, We McEwen and continue the are investors of Michael and McEwen that our funding. President for of the regulations that with Manager could changes of fill like on provide Vice add of At of to Argentina Mining principal to others to the look I'd it -- opportunities value asset Meding, political and General in to situation have Copper promoted some and ours. that an overview impact the being this

Exciting at everybody. as had exciting Argentina, the already, Thanks quarter times while so what in an Rob we're with lots moment, of looking much, And we Azules. Hello, said Los at, [indiscernible] Jo. very benefit a lower a a in project. of incentive [ lot to the without has that better in It's from year. contains scheme. to Azules of has large we What projects Los now strong presented And approval days Lower has further see that there could incentives. investment that [indiscernible] ] PA been investment get are Argentina is It exciting the on the commissions new is VG, this by and and called infrastructure this something going to back Spanish. It's [indiscernible] administration house a for the that's and incentive trying couple is the called and a discussion. the received Senate House of Congress and to

XX% that goes VAT optimistic and it will give be X.X% if be other able be means reduced X.X% we debit XX%. an to are basically to through would you some cautiously reduced we will would from operating tax duty it recovery takes to instance. from use for Just through, ideas [indiscernible]. advance to Export tax. XXX% Income be bank what credit be this -- go [indiscernible] X%. income will taxes would as And

combined this projects driver is this in can included as think what to other of infrastructure ensure access you, large project and mining We that the means is for having this going opportunity to capital economy markets that to Back the major Argentina. a the face So Argentine the projects Rob. forward. change with

know, to Thank able high you, we've you and inflation many Argentina, of in as there's that. been Mike. a of offset And rate

after right, able transaction financing to a we inflation and Argentine products Yes, of to that variety Rob. our last were invest essentially in devaluation. our exposure McEwen Copper, in Overall, that's hedged fully

I believe over quarter, just So of the the million. $XX McEwen first end treasury a at Copper of had

cash sheet. of show in there balance income on earnings of only Since are year, we've statement. balance our part, in It's deconsolidated Copper's McEwen the we fourth our McEwen and loss our no Copper we quarter last the report [indiscernible] XX% longer

open Thank call you, to questions. now Perry. the I'd like to

Instructions] [Operator

Alliance line the from comes Partners. question first of your Global Sekelsky, Jake And

of that's is you quite more down a areas. you So see Bar half. as lower the mining back good it I this into at levels moving mentioned you come Before something second to function and normalized in mentioned bit know to just I'm of costs to was curious a QX if here? bit continue Gold strip, strip expect a

to Bill comment ask I'll on that.

leaching. pad first material the PIC also guess, onto doing ] and much and it's or be try pretty that little it's was in we [ the schedule. we to Jake, more second -- that Gold on pretty or expanding I get will Yes, the quarter, production work quarter a -- -- to ore over In in in improve we're but on ourselves in order do much the budget, the our Bar expanding to more work

first a bit rain and weather. cold challenge probably because is snow As know, the and you of always a quarter of

did [ X where X we better bit released we just little year, a gallons. million last million this was year X about year, about ] release last year, although This -- than gallons under

production well first all quarter that. see as all, to I we challenges, think quarter improving all and over So in the second the the responded

What about stripping. the

stripping -- have upgrade we're the I contractor ]. at look we're ore our the time to, guess, related, the I to number ore stripping associated is of [ And at with we and the trucks taking with after Yes. working guess, the where the to just that's site and

things see we X of tied together. kind So those as being

type growth on transactions a acquisitions? Rob, at for line? That's helpful. you're an we as curious, transformational from you such Okay. thinking opportunities willing of your be along should Or there at Just timber standpoint lines you complementary then, that look thoughts would be M&A And looking of be just things would type to the and helpful. more I'm more touched

X several Jake. at situations confident that. think delivering And of look these higher that consideration. was going lot this I close market opportunities to We're think a opportunity this is transformational basis to we're a grow. I'm was that of there going a the just bear Yes, I just is rare Because some take on fronts, quite time see of we're in forward, it. where going attractive,

the line Roth Capital from comes question of Joseph And Reagor next your from Partners.

guess, that? acquisition, best -- I on on comment on comment the The Rob's there guess Jake's you on guys acquisitions. following the closing Timberline what's timing

We're July to use this can at that good I date looking outside ] could closing. [ that Stefan. that's factors for There couple an in but It's way of early are answer that, a a accelerate at point. that.

helpful. rest what of this And comments the treatment That's give to the like is expense you Can accounting guidance your like. Copper. guys about year opening to look on back think going the us McEwen you any income then level going on for

not there's and have a what what between we such occurs. delta actually So big

McEwen Copper, May. as we going similar going I be Joe, over to rigs XX is as mean pretty far think had QX. until to I QX

quieter flowing costs still as we those have QX on through. to be the there's no feasibility. working continue although will drilling will we'll be activity, So

I kind will in then obviously, drilling of QX note, that a once costs raises feasibility with when on we will the in capitalizing Copper line have will [ if our the peers. and under and be money in GAAP Los be start of U.S. And Azules, permits makes McEwen fall it activity sense, program But at copper we Canadian for ]. terms can study in dependent then do what hand,

And Okay. hand? having on what is in that feasibility study the timing

half of next year. Certainly, first

Yes.

Okay.

pick but drop. you already standpoint. commented in to the modeling Have quarter Fox, on things grades Rob, to and were So you that's a then cost QX? up expect pickup And a light, first you from seen helpful in then grade that

It's grade month. hope -- Bill. bit X will be but a we're from X now And at see grams. this we The more, The that pick has around point QX this little up seeing this is grade grams. in around picked up to that running

sure making can right tons So all now, mill. through through the of case the the it's we put we

Okay.

of QX the So relatively rest to working expect to we the grade should higher over tonnage to the stay its similar way was what year. start in

That's correct.

Mike Kozak, of comes the Fitzgerald. Your from Cantor next question line

The investments last Perry's X-X caller asked you subsidiary the at exit prepared correctly I and the I right but heard you and of that $XX cash end the wanted approximately just comment make of up my questions, X made of at sure Did copper follow to say remarks. in QX? million, here,

the of that's correct. end Yes. QX At

Is prior you going potentially to potentially Okay. And now? would IPO give it, table thinking would priority Newton? IPO-ing with keep to to McEwen how that, then on quarters Are you is the when kind you maybe as funding and soft guys prior in look Or off at and of this a follow-up unit? about guidance are -- Stellantis IPO-ing you that the some, years, Copper. call

we that study feasibility PEA drilling probably in year Well, that resource, that the application study. between last we're an that before -- and and hopeful get was meters haven't we we're been the to feel XXX,XXX in in looking which. results filed got we've we of publish -- we of a the published, approval for included And we're spot there's are the environmental at feasibility we're

looking So an the in value. permit we'd IPO that believe we when out to a maximize be feasibility at after is would the hand have a be time we and

from question private line comes Bill Powers, And investor. your of the next

guess Just if that? this progress on update was Mexico. a questions. to as starting we just you give an in start could construction on as couple I sometime year, supposed it Fox. I start the update of Could that know the us towards give with decline an well you at quick could

to Bill question. ask Okay. that address I'll

field. the in can much, Yes, equipment ramp We're in stock, as very hope they to excavation to the this the of we you month. that with And get get contractors of start as at the matter. we Thank soon Bill. surface started midst expect work terms into the as like negotiating on

to that equipment So -- as in start and talking should so the we're have yard people their scheduled.

-- second there have those We have submissions -- to Phoenix, few next second because like third of all that months. waiting the the permits the for to of terms In to made. guess the hope all been we we're are optimistically, going to been third we we I'm and -- required quarter have -- kind -- quarter, it now in well, in I third say see hoping

There's in an coming up election Mexico.

Economic if in had last the with we trip go next any we're actually So way year and planning Mexico said a Development, where to need he and try who few help it, to site see he him. the basically a have make to to will chat come weeks, could. and the Minister we in And of would help us and

we're -- yes, of the that. final plant. now we're advantage maybe -- take And to the we're doing of So and but going engineering

going and the working as so -- that's in be to generators have refurbished start as equipment at that is ordered already we've And soon permit we that hand, installed gas a project for site. we'll of on now the most

Okay.

quarter fourth out of Is that QX potentially a frame? next year? begin reasonable construction first expect to by time So with coming you'd production

hope. our Yes. be would That

-- the guess the I came February ] is Stock something earlier ramp out future far down? that to And as are development? into plans Or going initial that there the of given Okay. -- stock [ the the any this include results in or in for East year, as

and underground, a quarter good. of we East. first going Stock is year order No. I say, the the be Absolutely, in get we once West. the the will we that, have And to basically day results would Stock of very heading towards once the program drilling the cleaned we've get at days. first be yes, in X going And that are And results -- to colored are sometime Stock announcement the and X about get towards we XX those underground, ramp of East directions: other in we'll and are an next we the

So get soon of as away yes, to that as we is because right very we -- its ore zone that's will there particular close head surface, underground. --

are you. McEwen, Mr. call time. turn questions [Operator back Rob like to Instructions] It I there will the no looks this at over further

believe you morning. a joining was that performance to it. by you, Thank is I and e-mail. this market answered think Thank And I've ladies relating It came I very question operator. us. already there for gentlemen, much, in the

I Thank operator. got And positive lot it's momentum the think overdone. we've at of moment. a you,

conclude thank much. you Great. Well, so This conference. today's does

you. disconnect. now may You Thank