What have been the main developments for McEwen Mining over the past year?

McEwen Mining saw a big change in its bottom line and went from a loss in 2022 to achieving net income in 2023, as our production increased and costs started coming down. We have been financing McEwen Copper independently and successfully raised US$450 million over the past two years, with a significant amount of funds being allocated to exploration, which will result in a resource update in the new year. Additionally, we have been outlining growth plans for our Fox Complex and Gold Bar assets. While increased production at the Fox Complex reduced unit costs, the main driver behind our increased profitability was the high gold price, rather than cost-cutting measures. What impact has the new Milei government had on Canadian miners’ operations in Argentina?

President Milei’s administration is focused on economic growth and attracting large foreign investments by implementing aggressive fiscal and monetary reforms. Significant for the mining sector is that the tax rate has been reduced from 35% to 25%, taxes on dividends and exports have been reduced, and they are trying to speed up the importation of capital goods. These positive changes could potentially increase our After-Tax NPV (8%) at Los Azules from US$2.9 billion to approximately US$3.8 billion at a copper price of US$3.75/lb.

The new legislation is attracting large foreign capital, as evidenced by Rio Tinto acquiring Arcadium Lithium for US$6.7 billion and BHP closing a US$4.4 billion deal with Lundin Mining, and I believe this is just the beginning. President Milei has also achieved a budget surplus and successfully decreased the monthly inflation rate to 2.7%, compared to recent annual rates running at over 200%. We are seeing many positive measures enacted by the government. What is your strategy to finance McEwen Copper, and are you considering an IPO in the future?

McEwen Copper aims to complete the feasibility study in the first half of 2025, alongside securing an environmental permit. Once these milestones are achieved, we plan to proceed with an IPO on the TSX, provided that market conditions are right. How would you assess the current environment for mining operations in Mexico?

The majority of mines in Mexico are in areas of subsistence farming and low income levels, and mining has elevated the standard of living. Many concerns appear to be around water usage by open pit mines, and the impact of cartel activity on operations. For example, Peñasquito recently had a major highway robbery, and McEwen had a smaller theft a couple of years ago.

Mexico’s permitting process is another hurdle, as it is extraordinarily long. In the case of our project Fenix operations, we have invested in the community, and they are supporting the project. Unfortunately, the state is showing resistance to mining development, reflecting a need for Mexico to foster the sector. Is McEwen Mining looking to expand through acquisitions in Canada, specifically Ontario?

Currently, commodities priced relative to financial assets are at a 54-year low. I believe that there is a rebound about to happen, and now is an ideal time to be looking to acquire additional resources and production. Just before the US elections, the GDXJ started to cross the line of the GDX, narrowing the gap with the GDX and suggesting that there was interest coming back into that space. However, challenges persist in Canada, particularly regarding Indigenous community issues, which continue to delay project advancement. Governments must come forward on this challenge as quickly as possible. Furthermore, Canada’s regulatory framework often prioritizes investments in battery plants over investing in speeding up the ability to build mines faster – it is a method that ‘puts the cart before the horse’. Can you share more on your exploration initiatives and developments in Ontario?

We continue to drill at the Grey Fox project and aim to release a resource update in 2025. As soon as we obtain the permits which we have been awaiting for over a year, we will begin ramp development at the Stock project, which will unlock several good grade deposits and significantly extend mine life.