McEwen Mining (MUX) 8 Aug 242024 Q2 Earnings call transcript

Hello, ladies and gentlemen, and welcome to McEwen Mining's Second Quarter 2024 Operating and Financial Results Conference Call. Present from the company today are Rob McEwen, Chairman and Chief Owner; William Shaver, Chief Operating Officer; Perry Ing, Chief Financial Officer; Jeff Chan, Vice President, Finance; 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'd now like to turn the call over to Mr. Rob McEwen, Chief Owner. Please go ahead, sir.

Thank you very much, operator. ladies welcome, and morning, and gentlemen. Good a was quarter we've see. to waiting been all It most since profitable our was It quarter XXXX. recorded $X.X It was million versus of of $XX.X profit gross second losses last million year. a quarter and where adjusted our in quarter the was EBITDA quarter was a improved of It liquidity. financial

capital year-end. our cash unchanged debt Working $XX.X at was to XX% $XX to XX% up Our since remained $XX.X up million million. was million, and

noting and And was of night, to X for also Management has McEwen risen calculation our XX.X% entire myself share. a portfolio we silver X.XX% was And a price Copper, own Last the both every that when the that our financing share and royalties, a per is based remind interest of McEwen Copper. greater NSR It million, closing $X.XX market in On last the of where behind $X McEwen Azules. largest low million. I Mining fully owns is Mining to And equal the share diluted on makes Los $XX from you ranges increased is capitalization mines. value to want basis, worth McEwen cash also on the our McEwen internal an X $XX investment and implied today. to a quarter of which this a done than $XXX Mining's McEwen value value our flowing that $XXX assets, of share it It's share gold NYSE. a has Mining. on

on stability XX the significant years. lower financial impact Copper's removal the for country last Los of and will The NPV. government change I'll call outlook investment the approved the the more major direct Argentina it President, in exchange be The for when McEwen investment Azules foreign dramatically. after important quarter improved controls, It a was QX most agreements Milei projects. magic taxes, Argentinian in Milei. for involves

into Filo scene And after a the advantage to a copper Argentina's very largest of a the is of in Argentina, appearing del with value sets deposits billion expression $X.X BHP, Filo a and confidence big Mining Not transaction but this leading its mining Lundin Mining legislative to for take the Sol Argentina's in large only tremendous it quarter and deposit. acquire changes, jumped transaction in world's company, Josemaria the way, and also deposit new country. copper

Filo deposits of Los All Fraser South Based one on larger deposit for that province, that located and the San those of combined Juan these resources ranks in Institute has the Josemaria, America. deposits a higher jurisdiction both Azules of of copper mining a resources in the best the are del current a and published of grade. is Sol as than X

to open I'd answers. and point, At call like this for the questions

Instructions] [Operator

comes question Sekelsky first Alliance from Our Global from Partners. Jake

Rob and team, congrats on the quarter.

Jake. Thanks,

starting one-off conditions underground ground you just this at just specific this areas, Fox, the I'm is with as are or at So a seeing other well? stope in curious, a

we totally And stabilized some going it's the so failed. area was rock, basically competent and realized backfilled fill there exactly once waste we cemented what less upper the the of thanks contact now a the it's of mine. -- -- and level along question, Jake. ore -- that's and single for it's that's No, No, waste the on area It's side, which with on, now. was that between

smaller stopes sizes we'll we're define to that going of And of the the or by absolute control significantly smaller using path rest will and that forward exactly of. is that significantly bites how recover so have to ore, be

So concern I don't it. big think we about have a

being that as that, out incompetent that it that was, was adjacent rock be. the guess, stope particular turned as to I we fact, And made waste recognize to mistake in we didn't

rock mechanics doing us we're there. I'm our a it's comfortable going one-off say, on security think what to not put, how So guess I consultants see now reasonably I more to we're We've advising had And again. that's that control. around under that

Okay. Bar. That's just over helpful. switching to then Gold And

strong have we expect specific there turnaround going really and a were like $X,XXX hold. there there? ounce it decrease Do taken efforts You cost? seems major in fully it, an drove that forward Or quarter sub, had QX to AISC anything call that

target. there's guess, It's down. that Yes. production so I slightly I far above anything cost don't think has is, because the our that drove basically been that

So that's helping that.

time, In we're amount done far year, fact, of this doing $X a present of we've drilling drilling. significant at about the so million

in also cost the that So included there. is

long will stay as at might anticipate right we the predictable area that it I that or same the amount move that but move of this So slightly, material we be up on in data based as we time seems can cost have. think to the it

Our from next from H.C. Wainwright. question comes Heiko Ihle

on for is You which remarks, talked Argentina your given the that incentives what I tax quite looking internal there discussed? bit extensively pretty you quantify little had is internally, give what mean, a a your I'm maybe about you obviously to is color that? maybe special And prepared can us in longer-term of way But outlook, you guess, saying are receiving? at I pertinent.

Mike, do want address to question? you that

Sure.

an area our VAT. loan. would have RIGI with So the the no our invalidate about give we ] conservative to million. by RIGI [ But would existing than interim you we of changes the more XX%, to after-tax means application calculations some idea, And what done of in be like application the $XXX means, the for

tax of for we during with such similar includes -- VAT has on companies which qualified Argentina what projects, makes other which done case, estimate, attractive once example, makes this which is So do, on basically footing fast projects construction but that a management's RIGI, has we burden, not the recoveries. Chile. the for brought based and also not overall our again, were benefits as significantly It help because which that believe, that is now and phase, is Argentina couple attractive

ours. are So for very the very, helpful are that those such things projects as

and going XX%, to is Yes, there XX% the benefits. other are tax rate from

mentioned, refunds Mike VAT As accelerated.

-- up. customs a importation push So has big the and and It's others us for country. speeded in

mean, getting into And you base funds you're things internal figure What doing should to Profitability seem read just from done cash beyond I XXX%. if No, Yes. what your the by the Or an currently there it kind we flow in of good. you that an there expect cash out there, additional press. have? pretty asset sort forecasting? price? actually then? gold where investments of learning we'll Is be obviously in there flow everything thing was quarter excess are Is metric is it internal a

in mean mean I we current that's I the on. that line. environment by sheet the constrained drives to that things looking our think have time one I only Heiko, at it's Perry. we permitting. projects execute We're think obviously, of balance we're our

So well, is back for that Gold things, to the and permitting. incremental money having we coming hope on Bar, We And Mexico. ramp years. at obviously us, building some into raised Bill these but we're put is to going the will spending the production for share But CDE hope, we're said, exploration we all would increases stock mine, provide tangible future. in production, the we over there. at can And back results, as we've which the like subject that's which

Mike next comes Fitzgerald. question from from Cantor Our Kozak

a Just of couple questions for me.

much or budget depend you XXXX-XXXX the how for is exploration end it million the of Azules yet at First, Los going to now have year? between on a in $XX season of and set guys the the comes

done We've study. the drilling before most of the feasibility

the big So drilling finished. campaign is

we to this Los did showing close be that deposit or new drilling, Azules, the looking at won't copper it new will We of near be expenditure anywhere type but year.

helpful. related study? I much you to that the the feasibility the That's had then have And work of a spend do kind to Okay. technical on follow-up was to how

looking $XX million for about We're at that.

of some have been of you And in still which million? you front $XX already? has spent all or

of front in That's us. Yes.

Rocks from comes next from Our question and Stocks. Allan Barry

interested major that Azules into in valuation gives to copper. what's company the And Filo, del getting some real-world Every I major us some bare Lundin you fairly be wondering development a and metrics. deal? would seems Los think, a BHP Sol could copper and was be the run is how in the projects taken comes compares in if rank The shine coverage light size on at it Filo highly. when I to it that to interested mining With in

compares favorably. very It

Sol all, Los we the of First Josemaria. And infrastructure, We're Josemaria than del the -- Azules to either in quartile were and or is a Los highest. major is in PEA, Azules closer to Filo at according of study lowest a in and of lower altitude highways. was Goldman Sachs cost least lines power

capital. properties might those they and that if course, -- in that change see develop consolidate some Of they X them concurrently, you'll now reduction

combined deposits work larger the But from operation two. and resources, those leach That the we a resources new based with higher capital and Azules out probably than copper higher copper we're on much the less significantly a Los on so of new a be grade. capital. published of heap less coming Josemaria, opposed those a the change operation, conventional resource -- because to Filo studies and published larger resources, resource will going And at might based a out X of to grade. moment, be have milling we're as

we think favorably. very compare I So

it any there's far you the the opportunities can party. your second the on a chain. really looks front. today, has gold be as comments investments? largest And strategic kind My like market. argument I those -- can there Or question been think some an the down stock ] [ possible And that attractive therefore, stocks global of that gold have powerful make gold very Is food opportunities? on as only joined was Gold that thoughts made

most gold the the price. the majors the Very in of clearly, benefit increase out got have

And up higher they're and started market. with that's how A and seniors of the the more a gold smartly. in juniors to production, And stays goes a or we're lot high-cost where of as and point. in were to rotation resources be the higher. producer the their And the junior do the they case across grow going cash gold it out a then the be looking into down price, moving producers intermediate cash, sector. price going the You're seniors their seeing there'll be into once get flow. is happen the our with looking margins flush it junior We quite explorers, improved intermediates they'll and and juniors, of and

time looking So for good be right now. it's at in my mind, companies investors, the smaller a to

Coffee, from Our ] next individual. question comes [ Renne

we're This we'd any we just going if understand MQMNW, And there's about project, new new husband, to be to with that. inquire that direction? movement a I And like and in wonder her is the David. involved that's

that? name. that with familiar not MQMW, what's I'm

are MQMNW low which Mining last price. of an the a Yes, for Warrants, out money very so is for and OTC McEwen ticker traded

So particular what about your is question those warrants?

of an a assume. a project for kind any that long new been I supposedly there's project, was IPO coming involved Just time. as over an waiting IPO we've in kind if of curious time, a on long that would a for And

No.

So I of -- and are time XXXX. just those money. to warrants aren't clear some I ago out end project. related towards think particular to Those of They confusion. some of up any -- and don't issued maybe this the the year were November The warrants expire as said, in

the we with are So will though, Nevada, the That's our that we're good -- only assets mean looking to are working Resources. of existing That this acquisition That there. which mine August. new And those acquiring month address I we the towards current to pipeline. acquisition regard of in process with on company in in I have forward projects end close has projects. hopefully Timberline synergies the can in

So that warrant it? wouldn't would involve circumstance, the

No, all. not at

] question Morain, Our John next [ individual. from comes

that? years. been question and My price? have My think XX you will copper think do stock you McEwen what hasn't family it do to in why take change that been for the I is the over And shareholders reflected

and It's Dow, of I copper price financed has independently closed the the the silver, and -- GDXJ. in copper, September. the we time, the gold, outperformed our Since a that good question. starting We it NASDAQ, the separated in guess, XXXX first deal GDX the price share

was copper the gain So for it. when separated visibility to we

people that think on and get the Mining recent do X copper in value. province about large with as Los in I Azules, its will same Las Lundin Argentina our the Azules transaction BHP thinking projects property,

out We've I feasibility deal have still we'll study think year. great we're next beginning. a a and drilling, of early done

copper prices in I a price value that the gold. reflected be higher X last months for think -- that of of should relative So The in to will last the the be project. all weakened in

stocks of price the So copper of taken value the in it's followed direction. lot of believe a bit a market. the out of terms I we

Mining. McEwen from Powers Phil [ from ] comes question next Our

couple A quick of questions.

if As Shield revenue And been of a regular this is a far to fair Jose gotten these so, was for -- wondering it any as looking at And a appears and that regarding of are I the you've ] cash plans days. quite dividends? bit San going from Hot financials, is bit there update generating if [ be dividend? any there's

Phil, it's Barry. Thanks for the question.

a would more spending I did and receive generated a had want expansion. cash second in given [ free but with this dialogue Shield. flow we where we a small good So we've obviously, dividend. ] on the gold very are, robust a silver the would mill prices see year quarter, say to We're dividend some of Hot

to X,XXX will throughput take per So up that tonnes day.

should of So that see next going year. well, the we benefits that project is and

receive generation [ and to this more sizable fourth ] this cash with Hot what dividend look I the in quarter And of do to guess year. at expect Shield quarter is a potentially we've the committed

has $X,XXX today. is So a little gold still of but as off obviously, bit, come silver above

So still positive mine cash as flow and you generating the seems be quite said, well. performing to

wondering a of mine more permit to Yes. regarding the other is looks details little if cost of if members like color And well least, production. towards to permit. some a the us you is, on adjustments some you're raise down the team you to getting Bill just the at Mexico was as -- question and going plan know to adjustments my couple making recently, and a the and some could I a I it potentially this And as maybe to of went second give

Yes.

for much question. So very thanks the

Mexico. So yes, recently, we're permit. know, the unfortunately, at And receiving point, this you in guess, been as anticipating probably I elections there's

into team is getting the place. So new now

guess, the have the in permitting. permits On as of we get our had And there's But given. I with created where we in think that's permitting early all might an side, some permit anticipation, when lot there's not a been Mexico responsible discussions QX. in QX about or around we government situations, in late clarity are agents

other less reduce to the of at arrangements looking do terms make other the also some the onerous we're opportunities cost on permitting Meanwhile, to government. and capital in that

early flux this say, and have QX. in I so our to for point, news a later at and And and in hope QX would ourselves some we're for of state shareholders better in

from comes Instructions] ] Shin, Our [Operator Patrick private question Investor. next [

message RIGI. very any been if what From Just the could gather there there's and Internet wanted research, to find out boards updates what of some unclear debated, I on the through are. the it's but seems it benefits

our Copper Meding, discussion. a press Michael and out of General putting features. appendix many. In the statement It of release you today. are it, Manager of that, many be and we'll There positive give VP could has McEwen concise a be will many, a

on benefits tax no that include tax from beneficiaries, carryforward into big The a the to state I to points The of deduction the for current been if RIGI corporate tax has it rates. on the give reduction that it So may signed discussed the limitations enacted. X part of to to years, The for Accelerated XX law you projects. adhering income is depreciation reduced of of mean are is X% is RIGI. really XX% in XX%, main does in withholding law important the some this and law. Lower beneficiary is percentage been package losses, relief X.X% active. of law is so has and Senate in the law and and which foreign to of tax now What House, provinces course be decrease in the of dividend of from interest payments unlimited corporate infrastructure

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be that For tax that issue time in the for directly recovered can to means has to new takes state it construction, certificates that quickly. VAT, mechanism a used will XX% the some be very Argentina recover, payments. The

learn we note can you please you if about to documentation. more drop interested a that, So and are send

from But duty, scale duties. to exports X.X% time. after the certain of go after of the implementation X% a have amount note either to you that or and the tax RIGI XX at country specifically in a years of sliding and that will XX stability And country. to projects the what time moment, gives with is amount away export or it a a free of of is Exports also litigate are copper licenses and can import important certain X% you outside

So it's very mining beneficial projects. for

Okay.

order more Argentinian be benefits. done the sounds it by deal. to government have a needs to that debate in it's There's no these done So like

is now be will law the that what is So regulated. to going happen

the been provincial law couple And law, out adhering regulation signed the in has gazette. coming So weeks. The into the are via next they of and provinces laws. in law published in be that official that has adhering are should been the interested to

know You resources, so is the made belong natural for to after pretty example, Argentina the that provinces. much U.S.,

on going in discussion is there provinces. the different So

we we to benefits approved so Some well have province all with XX mentioned. as that as XX municipal a well, have a national from relatively already I mentioned the adhered. years are, you this to as was the with full tax coverage The provincial stability where both level be soon that expect and on

questions to turn to have at We would questions. the the any don't I pending are Rob you. over There call McEwen, moment. further no Mr. like

And you, us and operator. ladies gentlemen, today. you, thank Thank for joining

that see, our a -- results the press In we're We've our today business. press Milei that's of Argentina. drilling on good of government drilling. I'll made in And and pariah Azules, changed can the infill been data, embraced release releases call for going by a a got and And is results. magic Argentina a you It's drill on delivering additional open providing exploration number time. been it, position. As financial be for will long Los has it we've out is

I us going very that, plan. Thank good forward position think, So plus a to in position, you improving our financial our for joining growth puts finance us.

today's have everyone, day. you, hope you a We for wonderful Thank joining call.

disconnect. now may You