McEwen Mining (MUX) 6 Nov 242024 Q3 Earnings call transcript

Hello, ladies and gentlemen. Welcome to McEwen Mining Q3 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 at McEwen Copper; Carmen Diges, General Counsel and Security. [Operator Instructions] I will now turn today's call over to Rob McEwen, Chief Owner. Please go ahead, sir.

operator. you, Thank shareholders fellow investors. Good and morning, interested

heard and they're is move that me questions with call, the into on today period. available we You when who to your answer

quarter progress reporting and of third During X performance in double the have significant we triple-digit months the made this and key year, metrics. improvements first

XXX%, read up press compared up release, can third quarter cash XX%, the adjusted to profit operating of quarter XXX%, of you XXXX. at from As Revenue up third in our 'XX. gross up million stellar $XX 'XX negative a flow was back EBITDA million in $X.X

Our stellar. also safety record is

are We time lost accident. McEwen man-hours Copper time post lost accident; loss at records at amazing without Los the a Azules, time; Gold and an XX our X.X a Bar pleased Fox million months without a to XX without Complex, a months

Los and project. as the share. we $X.X mines, $X.X During investments or successfully net million life $X.X the strategic push at and mine loss at the our to spending quarter, our we Gold view Bar as extended these recorded largely currently exploration, expenditures, have Azules, continued treated McEwen we Fox to of and of million they're And expenses a the the $X.XX and -- Copper that contributed million

be providing early released will We year. updated resource be estimates next to

the privately in to raised we're used during the we're our permit quarter, And the planning IPO period. we funds. that bankable our be first feasibility Copper. to expect and -- we study the And -- permit half construct the McEwen to hand, that both Copper, and also on to closed expecting Los receive we mine in environmental study last feasibility environmental have be same Once the over the $XX feasibility of in complete study next completed year, Azules. the McEwen the have million, we For to for will over and

on financing that soon value at towards a have $XXX will we Los last the we million expect million. to unicorn value noting reach it's several think based market raised years $XXX share, to status the an ago. Mining over of this that McEwen go completed of that implied development And the worth I I I gives predicted privately it $XX Azules.

During quarter, will completed it extend Nevada, some -- Timberline XXX the acquisition Gold on has It's one to land made life over with the outlined three close patented about be properties, we Gold using investments. mine. our we In million Resources. to mine ounces we of that the our has claims there Bar of Bar

starting of continue are to Fox, work very we've quite West. be underground to from called accommodate easily be Complex. think Main production has week, common a We deposits. it These South Africa's We going it in a through production. will identified, Stock It at find large is targets driving East, our will some In Ontario, interesting in interesting a a a are paleoplacer bought Africa Stock shallow deposit. we to and Inventus company deposits position could Stock mined contributed South It's and property. very gold and gold Mining. and tailings to to starting connect drill connect the the year. that's this Fox increased a And exploration expanding our on we facility At the underway, and Stock, ramp

closer for $X looked higher to see billion, can our the Copper, million year $XX we property. We we this raised resource, invested excess our Lundin, and a said of of infrastructure, their $XX early Azules BHP that after million part it's in at deal value a in of we also larger property McEwen lower believing and Los altitude, it's

the I'd questions. to point, like session for this open At

in came that a related questions two two And the preliminary IPO and raise much people expected two questions. Azules? offering each we capital Los online, the details XXXX, offering. provide question, size I can have anticipated of to is was we price for company say on the in planning asking the came how One Well, in online. can

on we say to can't sorry say completed -- haven't and considered I'm provide premarketing be those the of either comments feasibility. we to

are we questions. once study going we So not number answer those we the don't raise. have how feasibility hard a say to out, But have can -- much to we

been Mike The that's kilometers the porphyry on it ask doing VP exploration the answer completed questions. also came outstanding. to to what X and those feasibility newly questions. what and we of Los X for questions at I'll away. second our Azules and Azules And outlining was be going Los And news, Meaning, have Mike? in system discovered studies Those are are Manager General what

you Thank Rob. much, so

meters to PEA. using X,XXX updated campaign with preliminary data and using economic model, with our So we being designated drilling likely additional with season initial meters sonic needed mainly diamond support data nearly geotechnical by of of this along of complement project X,XXX resource drilling, to the to of calculations record-breaking drills for future resources about provides planning our conducted local In We development XXX results drilling the of rigs technical plan optimized at the drilling site, study the rigs X,XXX for most contractors diamond last meters We're geotechnical mineral to meters XX existing drill season an QX, study. X,XXX reserve of the with operated hydrogeological and assessment of close meters conclusion. approximately feasibility area infrastructure, pit wells the in

hydro of and sources. solar with energy study put to line recoveries level resource the at hydrology to for expected models, with recoveries process and out. options reviews goals. We've in Metallurgical hydrological prior P&I are the feasibility ensure signed with and we We YPF for our levels around feasibility a to engineering provide second with of also release XX%, memorandum YPF metallurgy. geotechnics, of understanding trending project aligns modeling, initiated third-party to committed the diagrams, renewable press instrumentation completed in

team conducted suppliers the benchmark speed in Chile visits electric and engaged on options. autonomous with U.S. and major and Our equipment

specification; feasibility before include study design; site capital before; potential metallurgical already NIXX-XXX the cost planning; steps? the logistics; Now itself, as remaining what complete confirmation; mine the which of are engineering; finally, mentioned operating study the to the in final variability I the as and and We the testing; remaining the we write-up upside steps completing The feasibility aim started. equipment include Newton report. investigation,

mineralization forward. on So With we the comprehensive have to we Tango, in the depending schedule Tango. have program funds that's going what test regards place in to availability, a on

Azules. feasibility studies on that about included of be the a This that You possibly kilometers discovered what X have in not a of remember will think top system. is we we east Los we

on We surface. have seen

We veining. have seen copper We have seen

drilled with have of have last last of the XXX about geophysical season at copper. We the anomalies. saw the seen to relatively shallow X.XX% end we And meters -- at that, we but

that borderline, is system this shows it While the mineralized. is

more confirm we to forward. of top the the got we have what of where grade. presence So of mind center the higher build on anomaly for going That's to to we see Tango

other Thank questions? you, Mike. are Operator, there

Sekelsky the [Operator Partners. Instructions] line question with of Global Alliance Your is Jay first from

X something higher turned looking production are in I'm strong last production heading should quarters, curious, perspective. into Gold we to over Just the a expect Bar, at levels quarter the from continue saw we another just XXXX?

for question right I may you. be that answer

but waste the have of material at Gold material the actually that were of of is a part called moving Bar, we're moving that off pit Big lot amount increased that's X. We of

a basically it's So stripping operation.

be line So of that is although in gold in XXXX more significantly production with more will are done we've year. material, we moving this the expectation what

of with XXXX have high because price. mined an produced because of that tonnes we'll pursuing So equal stripping of gold in a amount stripping. more we're now of gold the amount aggressively And the being

line Timberline Eureka. permitting a Switching might quickly curious just bit. plan? be helpful. the the Bar touched you acquisition, That's of brought what potentially Can material you give and this on us look to like at process Gold this could how the into some mine Rob, I'm some Okay. just color on time

address I'll Stefan to ask question. Sure. Spears that

problem. No

conduct got where the our area of have working we mining ground. And in permit of that claims to BLM two exploration not permitting Rob we're are One as I kind So on property. the already to his we're part looking on started patented process. mean, There's -- exploration. has property. the We've segments remarks, said

a So the resource. state with timeline permitting BLM we're of of on permitting. X affect be for Lookout dealing expected but quicker Mountain And around the only years slight kind is longer. permitting unknown, and that would that to a has there, is

layering looking so earliest the with production permitted and the is it projected around XXXX there. in several way on be for will the from at it team And phases possible then is

Got it.

to to needs color any work quarter then in the and or lastly stope development Okay. still over be done That's Fox, And that's access? just improve done helpful. so order on next being the there at

to Bill, would you address care . that?

final start system rehabilitation. some eventual Stock we also operation. our throes getting Yes. from body a permit being to the excavation into Well, And to at we is of are the in work proper mine this East. ventilation shaft have time, help to we ore principally the the Stock down the and are get to for main and in sure the into same At ramp doing done egress make also the

don't ore with next in guess QX year, And to year. where -- in had, end kind that to we've Stock I as between some extended operation up overlap we're would Stock the drilling of down we've nicely the very deep this I hoping of that program so say, ore extended with East X coming XXX QX, room, and we ore out the meters. a gap the parts operations. have Stock So operation successful in will And a of of

of course, pretty better. little the today's think I even looks there. good a bit So looks future prices And with

kind be So yes, -- about ounces around XXXX. per in by we'll our we're what gets assets year and working do on pretty that plan now able XXX,XXX optimistic a to Timmins of with us we're in diligently

to some And and will December we're . is board in diligently in on XXXX before that which now our of which process, right fleshed going -- have sometime our working planning out budget we'll be

Your line with Rieger next the Partners. from Roth Joseph Capital of question is

I QX of ore less read there just we production The there that? to question is there's this already. a stacked about low incentive Should ahead guide in because Which almost that current quarter Jake's you're we way first but about going read guess just be the just the no quarter? guide, year. that one, follow-up kind into is Or Bar, to more to so of QX? raise should a Gold

actually, -- that be that And the going the so it part in of a to low quarter around stripping always for the what number the is, but exactly of some that's the kind doing can't I that X,XXX to and X,XXX plan the for I due is was seems me but it production is to plan. on and between of the I QX it's around remember, of X,XXX. period Well, last was time, are for was we quarter ounces it's number think part remember And

just on to time a we So to working with there quarter the track down we're the had guidance to our little to do and to trying next are that and and And us better make that. pushing figure last we're spend basically how we're a that. bit few out quarter of to meet some headed try fellows week better do hard

going to goes. I but significant overall as the in think kind change steady of a we're year, the yes, don't it's for she guidance So see

a Azules, Los balance couple the for then the now subsidiary? post And issuance in of weeks the right enough. what's cash ago, equity Fair roughly Okay.

you Jeff, want? do

Sure.

me pull the Let at that it would but $XX just north of million up, moment. just be

that? get You

thing. then right. one final And All Yes.

acquisition trading mine? Gold through As bar you standpoint? from separate pit, towards to guys Timberline like accounting guys a as separate it still be as of will you an you like all trading guys but work be in kind Bar, it the adding a gold Or

From unitized under standpoint the an Yes. accounting Bar. of likely. Most Gold

Bar, eventually, finished at that's because still in part at Bar. will Timberline final produced the product, -- And the Gold may have pad we Gold be operationally but a leach

Bar Gold and transport we'll remove the carbon gold. back then to to So back

is question Wainwright. El H.C. the next of Your with from line Heiko

still at somewhat you also, Can is grades seen what plan You lower-than-expected and had I probably of intact, the color on you've San what importantly, just provide a Jose. most happened? bit right? assume the of think to assume should building a far? QX more our on longer-term of in how estimates And that all that, is then our thing, we onetime of this site? I mine thus

will answer question. Perry that Yes.

Thanks for your question.

rectified but dialogue have in have Advised October with So that yes, reconciliation and lower we the were to been seems management Jose. resource October. temporary. team model, at that from regular versus Again, or the mostly grades San by

an So on track exploration Overall, helped ticked and silver on think San modest QX far, some guidance. has they're trending up has bullish so I there past And Obviously, to the to Jose meet as is life. continue the over quite believe is quarter well having success, we extend should operation prices been operation. mine significantly.

things, of last a completely to moving then in in results thought see cash of philosophical. something out or minor shocked of in that this of borders, big up whatever a wanted based enough. across state that impact Bar Nevada. And bit Obviously, negative travel, Canada, to And kind from different. you new yet. Even the internally I'm Fair Gold election operate news positive all frankly, staff going get hasn't It's you're I mean president today. We're you more stuff. January. of I the the have from come like actually that if just night.

Colorado Mining more to that create the a the I positive, of Nevada, Trump is and in development wants the think has Bar can employment streamline in country. Well, wants incorporated resources the company. to he and who only in regulations Gold McEwen be President-elect country. it is encourage said And

he And obviously. pro-mining is

Yes.

Gold good I there. and for properties other that's Bar our So think

along I on? you're say enough. those checklist internal but focusing Fair little something figured like don't things of you have that any you lines,

that. too of the look dust outcome this It's election air, let before thought we settle early when just point. we'd at was the in trying at the to up The

Ventures. of [Operator the Instructions] line with is from White Your Chris next question

price sales That's quick ounce. questions. I an of the great. $X,XXX two on got Congratulations

let they might but you think Bill, I know. for me be

release $XXX sustained with the Gold Fox, it the at going But to struggling with thing us were get you of on Is to deck, So on was costs was Could same than -- answer actual then like be The XX line. $X,XXX you I'm in but at and XX QX? actuals take XX Bar's or to all-in going $X,XXX Slide press the Gold more Bar. here to details possible? says down that of what release, it corporate the Slide our said Fox. $X,XXX that $X,XXX under suggested. that all more provide $XXXX to $X,XXX Slide for in also, the $XXX to even maybe maybe And would for $X,XXX

of that, want Jeff? to you part Do answer

Gold stripping a the In if be to a us $X,XXX a I on X. is getting part gold Pick right and might X Gold even stripping say Bar, because high the price price at would in of say, it's -- Yes. ore. very Bar a -- chances is aggressive But back these grade very Pick little we're under take fell prices the probably program to gold, low. very material $X,XXX, case at of bit do now advantage lower to not average is at the that ore. of valuable the lower than of

per to are for based a I in doing numbers, in work be ounce order proper in may put higher, but position better we're us seeing on cost guess, next -- year. part, some So we those

Sure.

the So than price the clarifying are corporate just you deck, and is was you of the sustained cost of higher? Is Slide what parts going guys right all-in after your in in of $X,XXX -- different $X,XXX mine reflecting. that gold because XX

ore expose doing going I also, we're right. stripping the And to for is is now year. that That's mean, next

so Got high? on Fox it. comment Fox? came Any Why in

it on is well. we're QX. some to primarily all getting it at this is with to of going Stock as Fox is it low And the production I Well, money the guess, the spending point high do also, attributed in basically has That's of because of

Slide the the have what Like guys And that factored in between deck in piece? XX delta you the what's actually on happened what corporate and QX? wasn't in

So this is Jeff. Chan here.

keep Just XX in guidance this deck, on annual the to to figures that on to think are here I Slide speak provided mind we need an basis.

by to or meet speaking just annual an so cost still on -- specifically, we come basis. do guidance mean, to expect in I below exceed And Gold our Bar

would I to it's market, of still planned an cost to natural in costs the would expect increasing mentioned Bill quarter-over-quarter, advised But are production I his Gold go up. be lower quarterly Fox, guidance. our it annual the see come remarks, given higher-than-expected think Bar expecting At basis, declining and in Bill on we've earlier as mentioned, again, below production exactly we planned to costs in the that or than within due as unit the unit guidance.

result overspend. financial a our not at Looking of base, it's

a production total expecting we're be to planned a spend, is on within I it think but exactly issue. basis, our

area our stopes per an affected when production, there was failure said, ounce larger the underground, as we the of that one up. reduced Bill And unexpected the and And at goes a Fox, that reduce production. of cost

remember more well. and is mine life line always say, Also that -- the its challenging, of that in but year would of -- last so kind that's there handling we're is bit a I

That's helpful.

sounds estimates were Jeff. answer, it fair Is like that if was bow XX on are this you So QX sticking to on articulation? the Slide an a guys put with a then that we outlier. Maybe and just

I'd higher guess, what at going caution on Fox. that to And is maybe per we're say, slightly expect last add depend is exactly the to in what will I it just I the some ounce production would cost see a quarter. there.

for quarter? kind looking ripping there? that If says And breakeven? ounces from again? XX% stopping know that's just just So we happen sure guess I wouldn't Because, release, then be doesn't the that we guidance to how that's boy, that if happened, don't springboards what's us highlighted. hadn't even. reason my you comments said doesn't in this annual the my being a breakeven correct, question the to Fox last be happen interpreting I fewer correctly, what at make type do potentially XX% then And of would compared again? thing you question the the be here, you could of how it breaking on in this we make sure guys that if of do stock Any

and this CFO. Correct. Chris, Perry, is the

finish bit hand, we once Copper more a actually going a incurring. So our Los study capitalize as produced that and ounces, permits definitely, have as back had our feasibility mentioned, well, would in we we can And to Azules, Rob we McEwen had quarter. have positive costs is exploration the

-- it we spend had and loss, year-to-date and the our loss, quite would the been at have profitable year look That would for as you if our $XX a for nullified proportional year-to-date million. So be quarter. was for

So when that, that the you mean it's been XXXX speculator, I investor, think right that -- a what together? quarter on do Rob, asked with comes this, you, an I've rough. I've been I and not been

I'm for to ready And for the... you. interesting when that be come. you Perry imagine yes, so -- It'd do can When I it think quarter, to

year. next well Feasibility in the the definite. are is first of the will subject we're lines feasibility, guess the ministries The underway. obviously, appropriate I Argentina. as be to And timelines Michael permits, fairly half time in about, talked that from the The for

of quarters. 'XX, should Fair? positive be printing we half First

we'll have Well, the feasibility.

We the have expect right. the don't to need and All have We out. get to the have to we permit IPO? IPO

don't of assuming into at should the first positive we else. half, be we the moving So end buy something grounds

from of John is the question line Moran. next Your

I have questions. two

is I first, in people really I unique. ask told The the over the years for them, When why an shares. having individual been company? invested I company over I've said, now me XX,XXX investor XX

of Chairman originally, had stake company, a Corp. debt. And you plus you were Gold and founded you no it, started large and then the You in have this

-- XX a back peaked higher. about the of stock The I puzzles it's So substantially that me is one though ago, thing kind. or at in years the least was that like day, said

see, much, I better what can shape company from Now is much now. in the

copper. is copper, road for You you the finish Stock than And worth mentioned the counting correctly, silver. more and I understood the not if that even that the gold you price,

about second me the why the dropped -- $XX stock if $X.XX. a XXs. much a the it's comment, I then to this do least with estimate in the my the I Nevada but at about think isn't the or market you Colorado, line, today, said share, So you Trump, reflecting is silver what would And in to gold XXs substantially? what heard so down reflection, nothing and the it with should but puzzles do just was wondering, larger And you you, where a why almost degree, be Nevada is or positive

Thank you, John.

Okay.

than Let's about are then. are deal why And we agree, shape with question first we I back the higher? we not in were better

We were X copper This of a a not low. have going be said, where operations big And production it's delivering number And coming 'XX, margin. to XXXX by finance period is as to hungry. a they areas. looked at there our cash projects a a our think missed on I our years, guidance, was to Unfortunately, of X from it you how very result, people going was revenue and project, that? and are to wide

So There's there and of of still, and of expand we that's rather copper raise coming and money And operations see mining stream metal being performing considerably. one an back down, in on is is across had production fund." addressed, the to benefit said, we've to is we consistency the room the operations the all think, better. up, precious diluting our the other I production one than our much privately our the issue raise separated and the operations, the "Let's

So over growth. true the X to years, X organic next

sort internal at of looking the the we're a our price. When bigger sum So it's of parts. we estimates value, own of do

have holdings. copper We the

the going cost and And assets peer at we discount gold a compare these see trading moment. than based you the a have and them the at large We at is and concerns of million. producing results XX-year the Los the then into forecast, it X.XX%, and about economic $XXX one generate the life production of assessment, addressing largest preliminary we when them. get down that on to life none can royalties, we're shares, group, but on should would forward over better these And a X portfolio moment, of a what Azules, the start

profligate, at a -- spender was odd. saying government the Harris point on. markets stronger I don't it that the silver. was gold expect up wasn't and will and it I'm as a resulting stronger down itself they suppose it's or and dollar. saying, bitcoin issue probably to gold you it of So dollar be wasn't I base been spending, of respect as a looking government, I in price, is And only a was one it's would down, a think we -- number was and It the a With perception saw a move forward, gold, going metals. stronger but that's to The only at was of Trump was one process. the that's wars and morning because resolve lead, the the as painful timing Trump that this that's meaning

other just I grown over ask thing. that one institutional has the The investors, Can right? years,

been. has It

New We average XXX,XXX volume, have on good volume. about shares daily We York. trade

and investors. balance improving sheet we'll operational performance, And the attention more retail an think I institutions win liquidity. with and of good So

you And I going you're you you're go do XX. know I'm much with XX. much -- I'm longer How this? to longer do think retired. think How

you're be when a like Let live? executive seen have XX, number about said, that said, was "Well, like like I'd coach. asked all -- My right, XX." ever me and and to a And clear going XXX. at question no. long you're and to And I put you ago, going well, XXX." think regenerative since is well, And to "Well, He long story. a I money what he medicine an extend to live I tell his expands are I'd been I said, life I research. be you how what going first think And to figured, and I've I've into have And of with you're make. said, was, you head I I And to wife XX, of going at lot how was me me said, share A if mobile." there meeting die years

And you're long going in move And do whole And okay, you to are your you "Well, said, he live?" front XXX, of said, he to XXx And I said, said, What are more XXx said you more above. XX. timeline do XXx to what what you've pretty sounds all said, I could was XXx going how of said, well, to And XXX. done. have And life that? "If you more you said they I with more said, he So the the philanthropy, He this? love, with XXx well, I well, already do again. that you wealth. could Like good. going travel,

have you front have quarters you. said of in and You -- you XXX

plan. out So a lay can you

So I'm in no rush.

million-ounce producing Copper, $XXX in cost year. -- you have property, ever has gold on out we it cash, to put over Goldcorp the I big $X,XXX, on to district, that's most be XX been gold than the of last think in most in gold years all Azules of gold McEwen XX-year projected and it's and equivalent deposit. an be the produced it and Los look life coming was. I gold areas in to is mining Canada. XXX,XXX a the believe, the bigger deposit, -- equal XXX prolific under ounces just that's Timmins than extremely In at much my potential a the area a It gold the book, at almost if equivalent, bigger prolific the in better It's one all than

There's So a lot demand. room. -- in I think of we've large got is copper there's

population of the electrification the of energy, extremely a by the servers are for use electricity copper growth farms at being world's high the use the and in of of data number big projected of infrastructure. deficits look that and You and the reasons, then the

that, gold. and So there's

right the been -- governments -- got currency. that's we've good And debasing are think I is to at assets. always me, mix at of money. that's fee our Gold

despite a gold look little Europe, mind, high. And Canada, I to look trillion in today. service of hard costs not is so appreciate drop lot because to to I is gold China, on to that $XX a it one currency. on you you national alone. point, have everybody of want this they've the I debt, in the printed higher debt. is doesn't And look lot back taken heading in one it has debt, my be to assets of have pay your pocket When those are And America money, at and and have

with agree life expectancy. potential I on you the

from line Your next Mike is Kozak the of Cantor with question

I late. solid Congrats call the the bit on joined little quarter. a

So if apologize, last at couple was mind back I've question. the months. my mentioned, I already but any of of of the one this in had

over done increasingly notwithstanding both have looking with McEwen either prices strength Mining the the and Would current Phoenix and But the down San look price you today. few your and catching Project silver mine. up what on McEwen with Just would in X-day last gold McEwen at environment, potentially monetizing Copper Jose of the move more interest -- kind silver focused or Mining in months, are the

At the amenable San right asked been thinking price, been selling we'd to right there Jose, -- I if concrete and that about of thinking has mean buyer be price. potential on has selling. real sure. possibly there Nothing that At the by we've one that. approached

I something had. question. asking just okay, a to That's effect. all But rumor I that that's this did hear was why I

the questions. At will remarks. any time, there McEwen I hand closing over Rob to this no for are now call further back

Okay.

comments off, on... we to make just Before close wanted Perry

Yes. We from Page did receive news of X Center, e-mail regarding an release. just our

on of percentage. can the there a that confirm we typo margin columns gross on is the So one

the at percentage the correct XX.X% on So than should quarter. be the version, XX.X% in our mine Jose we'll San website Thank you. third margin rather gross update but that

want quarter. call the I that repeating keep do, is joining for same And we goal you to everyone, to these. you, share today. the thoughts a our this thank was great hope Well, what

investing. successful and you thank So

you Thank concludes call. for joining. This today's

You disconnect. may now