MUX - Earnings call transcript Q4 2018

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Operator

Good morning, ladies and gentlemen, and welcome to the McEwen Mining 2018 Full Year and Q4 Conference Call. I will now hand the call over to Rob McEwen, Chief Owner.

Robert McEwen

Thank you, operator. Good morning, ladies and gentlemen. Welcome fellow shareowners. year Mining. milestone a was for McEwen XXXX Senior And year year and today Chief to Financial Sylvain are: Andrew Exploration; about last tell you Guerard, Officer; provide Operating Stewart, Officer. and with President Elinesky, President - and me Chris Chief Vice guidance for this The XXXX milestones numerous. were record Record improvement over a of equivalent, XXX,XXX growth, production produced which gold XXXX. ounces we was XX% a

budget There generated Gold had was extension in increased Nevada Mine, We built million Timmins at mine from with properties. targets a exploration Fox an our it enthusiasm our on generated and we numerous a Black in in new Bar much $XX addition, new $XX operations. in our on resources In and of mine. We emphasis exploration. largest resulted million ever, total earnings that life

$XX received end start Just and immediately. our new before the work XXXX, Bar XXXX, of By budget. we or operate of began permits construct and spent XX% Mine of million Gold the to government we had

Speaking week. on our just budget. ingot say first gold of We last we are pleased we reported budget, to are

the amount properties Timmins. at-the-market sold to to market million. we to registered financing to facility year facility, Then subsequent access exploration that time However, he we half did In me. raised of was of Gold we on rather second $XX $XX equity. have that, are of million. and debt Chris the had low-cost premium than we financings, first Black follows should in of were in ever decided financing We a we $XX active the We complete debt. XX% fund later million Fox in of an to that And is an then it. the need commercial the funding will second we year, production. talk behind year. to of as on equity August, achieving the And we our Bar with at This aggressive

We working Complex no owners of We immediate equity. We're late Black have this $XX million. invested had Fox XXXX. previous sell for in turnaround. amount the the on million plans $XXX to purchased The

for on purchase, we permitted package excellent produced prolific million day operating that So mill, goldmine got in the Fault $X.XX dollar. an and gold. area, an bought per historically tonne a near XX land that we system it Destor-Porcupine X,XXX the has a Timmins, very ounces of over a gold With

will very Sylvain a This It's that the in operations feasibility project to years further be by we're and determined and And of PEA economics the the a Project by believe for our in Mexico. developed been dollar, it's when management Now, with is the And of some you is extending Black this the also something year. operation, to middle confident purchasing Particularly, be changes is expected place. completed year. million past discuss being everything in gold making will We reviewed anticipate exploration have and the in study going $X.XX Fenix. on you XX million robust committed underway and buy this in that a to and transformational a we more $XX Mexico in We've there of since challenges. a come operation. for October on to exploration at lack midyear. invested did, team operations. new was this than they have of XXXX, There is expenditure lot to call. in And year in later been we we have XXXX There the for are the has mine-life is add for a exploration has as more our of last Fox expected here $XX questioned. it life

these investigate maximize to and sale potential Argentina however to to We as the Los in our Nevada, focus our on the in mentioned. of the these of short made Ontario and property properties would would a assets additional Mexico reduce the debt to our the Azules of at in development cash decision like the efforts additional invest resources term. of areas we have allow us A I sale

Chris Lastly, will we've like year with and royalties. by our our been looking going we operational I address would this over streams performance exploration developing for our to and where the areas increase podium avoiding At properties metal time, with revenues Stewart, to who could forward. last turn historic

Chris Stewart

XX,XXX Consolidated for XX% results. which you, Thank as increase totaled a refer production operations GEOs going Mexico Rob. Canada, I'll GEOs forward, in XX% from GEOs interest gold production from represents our the XX,XXX our XXX,XXX to ounces, mine XXXX in XXXX in Good XXXX from everyone. San and Fox morning, from El equivalent in José Gallo GEOs XX,XXX in Black Argentina. consisting our of

of the on in February commissioning Trend. we Our on Mountain and in gold mine and progress, snowfall heap-leach operation estimate Mine a to Gold of been Nevada, And have capital Cortez the coming in The on Nevada manpower. our first million. struggled new open the project operations XX. the original of $XX couple Cumulative in culminated prolific USA the commenced November stage. we And significant such in XXXX labor processing of reach efforts to have date, past Bar on to Construction our pour have tracking has budget. complement million is the capitalized pad $XX our market a competitive Battle final Commissioning located with months. by in with in is our during are full hampered cost construction

to workers as we and well our steps address temporary getting find as their issue the by the manpower local hiring are remaining assistance from labor taking personnel hire to provider We require.

include the instrumentation have XXX,XXX that process grade grams on consistent date, Mining, expectations. production and onsite the heap the we heap the these processing plant plant XXXX during of on initiated our to the pad. circuit. the infrastructure model result been crushing complete focused whilst pad, now commercial processing of X.X gold crushing, tonne of process, in completion and and the of and and To is still buildings leach at work gold laboratory of plant Remaining are and placed Site and Construction Leaching and items construction results and be point the loading system, conveying gold refinery Bar leach leach was all mineralized active. both gold substantial occupied. a are As indicating Gold in recovery at per miscellaneous completing with tonnes declared early in refinery QX. material electrical building. are mid-January, anticipating preliminary challenges, activities our are during the installation pad,

Tamarack asset operational Canada Froome exploration which Black Our in gold includes well the Fox the mine main Complex, projects. Black Grey stage is Fox, a as Fox advanced and fully as

further the which We Stock property, discuss Sylvain guidance new exceeded will average production is X.XX overview. was East Black XX,XXX our The his of have during tonne. the grams also mineralized XXXX At year where mined which our the XX,XXX. grade of Stock with our production the per Fox Deposit, our facility exploration along mill located in GEOs material is mine, of

in and cost QX are guidance XXXX sustaining $XXX Our incurred from $X,XXX in cost for our the down cash with in cost XXXX. line of realized XXXX and all-in

XXXX. The remnant GEOs mine we all-in cost in produced sustaining is all-in part be in in sustaining we mine that the our stopes objective in manage XXXX, were and cost improving at left capital mine rework the XXXX ais requires that required behind. cost. economic the produce a of is year The $X,XXX result and we decrease doing to XXXX. access Fox with from cash Black of cash overall access XX,XXX to operate performance a business to to changes undergoing how of significant ounces Black of The to half related of mining Fox this reduced the the be move plan and the increase For the second upper in will into the $XXX as development the gold cost the we which into

costs by ceased activities Grey is to our with in GEOs, production, recent mining operations fact the was El our was the XX%. the planned combined XXXX Gallo far leach per at XXXX. longer tapered XXXX grade temporary our at also on grams crushing we immediate ore continue Grey output the gold Sylvain at the faced the look XX,XXX Residual to ongoing average down which would was property of mine agreements. cost not will interesting from XX,XXX evaluate stocked this Fox, streaming the XXXX have cost is Tamarack. of subject has mined crushing the following of discuss expectations. success realized or in ever Fox very ton. Grey Gallo, because at leaching activities, line the on the Froome Black the end more leaching leach $XXX closely production XXXX, you the for our Due at production getting XXXX $XXX. allow mining El satellite options and in most full the levels, In XXXX it towards The ore to should pad of us area appear X.X several of year shortly, in been are with Grey In one activities reaching to cash XXXX May years. productivity will When not sustaining recovery us, decreased during additional residual on end of continue for because of and of impact and Mexico, some Gold, continuing any leaching Fox. for So for heap revenue exploration term XXXX stacked by were had heap guidance challenges, from and Production mine is Fox, which their XXXX to our exceeded bringing these deposit issues Complex The in all-in final an around maximize cessation and to since. it, Fox at targeted will and and activities from us Residual deposits attractive

XX,XXX Gallo $XXX. GEOs For sustaining cash-cost from $XXX at and a El of XXXX, we anticipate all-in cost of producing

a increase per for ounce in are We seeing an reasons. cost of couple our

has our the consumption and goal time for heap. same in our First, increased XX% increased from cyanide to leaching at by costs XXXX, the with improve

the to to complement need you a still continue of and residual addition, processing activities order leaching In heap operate keep in people facilities. to leaching full

cost ongoing denominator Activities in Project, lower increase Fenix calculation. announced work the in at El related base of the to through Gallo complex XX%. after Assessment an and per net tax of gold ounce silver, XXXX. and ounce present of return with July Fenix $XX rate economics case internal demonstrated $X,XXX $XX million a on of of of Economic a having in in ounce strong per Mexico Using of published directly is which cost Preliminary a was some per value the Study our So include of

So and tailing Project, mineral sheet activities we required spent material on $X during the storage to XXXX, processing, flow reviewing optimization. mine options advance of million include transportations, Fenix which sequencing,

the potential average and construction the capital offset that as disposal XX,XXX took to natural dam ever attributable We for to according the very gold tonnes mining allows construct compared our work amendment significant in in now. we decreased In-pit of to life feasibility Mine, was eliminates implementation final have of This for add is ounces. for equivalent silver, need the another ore for bring are preferred risk The we El you're of regulatory is a open is Argentina, Fenix José to the study longer one cost will no XXXX processed XX,XXX The it at the benefit, surface. Australia an evaluating X% added a interest to gold which successfully savings during a tailing processed expected disposal the to before million years to XXXX Fenix state, in-pit our what used ounces dam below in when grade San of for place. gold of mine In years and you project in Project. XXXX. permit total been an been of we receive X% would ounces to and back of X guidance. our the XX% new Mexican XX expect The a above produced a area production its the is storage, half many X% close activities tailings ore in the also X% approval to first and partly In-pit old of environmental has of of as a GEOs was for and will by a and for key reclamation there to mill filling increase mine in our result a by There's for decrease complete silver of a XXXX, operations. tailings operations. failure, tailings pit, Gallo, method the allow at feature

of San $XXX cost, guidance. $X,XXX cost cash Our were in José line sustaining all-in with and in cost our XXXX

on approval budgeting soon pioneering road we Northern spent work, year-round, establishing engineering, property, and XXXX this with access activities access investigations gold plan an a and to will efforts. totaling This continue XXXX, the For to future timelines year possible. Also are Azules Argentina, of at company. of at goal as we we million a ounces $X,XXX. a all-year allow costs and lower we Currently, performed permit work gold and significant in The monitoring and the the Los access million continuing us trend. mainly operating $XXX all-in to and will possibility which was cash XXXX permitting of technical work focus to on XX,XXX to in advance growth production the delivered at project. We're investigating our $X are Azules of our sustaining this XXXX produce equivalent commence the and once we silver, completed as accelerate during ounces X.X of José advance road. do In ounces project. anticipate new cost a conclusion, planning working of mammoth And XX,XXX of cost at the to this environmental Los site San Route, the baseline

announce for to to Guerard, guidance XX% over ounces, it production. cost production an Senior XXXX and programs of Cash you. I President the Thank a over our Vice cost will will all-in expand XXX,XXX XXXX that who of pleased is on our properties. our equivalent are exploration gold $XXX Sylvain now of $X,XXX. We our turn Exploration, increase sustaining

Sylvain Guerard

Thank you, Chris.

We and drilling, efforts and XXX,XXX of resource Gold exploration gold at total Timmins Bar, these During in million over US$XX.X XXXX, our meters in invested we properties exploration the the XXX,XXX on Fox new region. a focused Stock Black ounces. Nevada, of on of added and completed equivalent total properties, a

We new follow targets in also that aggressively XXXX. up multiple generated will

XXXX, Gold made resources, generated in gold our to over results the to properties, success. build generated Stock and very committed for year's which the US$XX million new districts in XXXX. are pleased extended Gold and along with on We exploration prolific We Black exploration progress and Fox and Bar, last on invest exploration in continuing located world. We our increased properties, remain planning targets in some our to at are mine life Bar, best trends of the the are

exploration our million and also in pit. Hochschild ounces ounces was led and we of invested increase approach continue Argentina, adding resources, resources, XXX,XXX total to the long-term indicated, of high the of or extension our of of XXXX, of an just late drill with reactivation we gold the are in to ounces the at starting in to which open years, a track to grade XXXX, Gold mineralization Starting X.X our near José record exploration exploration to the contributed and extensions XX,XXX the to San inferred mine This planning $X.X adding silver XXXX. of are We where gold up as partner production. of have reserves efforts life following XX,XXX initial measured in operation. to our in Bar, a site And new has

an of of We our considering South life deposit, gold. on which Bar currently are the hosts indicated XXX,XXX to resource ounce Gold also mine adding

resource upgrade to Bar will XXXX drilling reserve. Additional at Gold be in the South to performed

at and kept completed follow XXXX. target, drilling understanding drill and the through defined. prospective encouraging deposits. and interpretation some drilling Bar been ML targets external new drilling Gold geologists completion the Creek working deposit also with all in geological XXXX, Carlin up activities, property Multiple the of specialized the reprocessing Cabin and justifying We McEwen session with developing results, have gold surveys, new During data also outside we of and consultants structural of from in

Cortez around and significant characteristic type to mineralization deeper we ingredients XXXX invest high mineralization located of Gold targets, kilometer right believe geological large along priority and trend. potentially First, Barrick mine planning of in of exploration extension $X the to million Carlin like similar XX We at setting, grade as Bar deposit all forward the in we Gold also that gold the type to look and have are near testing our in and existing the northwest target.

led that Timmins, program completed turn meters from and definition invested open stage is to Stock The near the in the late in XXXX. now resource XXXX updated of infrastructure. mill, with Moving potential. the southeast drilling XX,XXX project to out surprise all QX an a of our than to pit kilometer We million indicated drill at from inactive less zone access took resource The be ounces underground all located in a exploration future deposit early road property to $X.X XXX,XXX remains and and in directions and open East Stock initial XXXX. a in inferred great for possibility and

In we at tonne to the from addition to depth XXXX gram of Stock produced mine East, close Stock to ounces extension that per XXX,XXX XXXX. historical X.X the drilled

at right grams X.X rock XXX,XXX host tonne sedimentary which a be were per at tonne returned length drilling the style Black property grade lower deposit. the drill intersections and the gold shoots. meters as intersected, QX, grade suggest gold most continued a $XX new Our is we one In intersection results drill XX X over now, and XX.X meters. invested relatively is grams XXXX trend surface resource mining drilling to was completed. increase occurrences, encouraging. deposit new the returned of at drilling XX,XXX mineralized X.X per deposit new resource, an shallow of of XXX around intrusion. define to interpreted per displaced XXX,XXX intersections with Gibson is drilled Stock depth system extending of located keep of an drilling by tonne, At X ounces Archean ounces XXX,XXX continue the the six per depth of where meters, northwest at increased per the indicated for the we'll new Mine and the to within of over target exploration of is remain underground style in extension gold target mine the the six East gold fault. Fox XXXX, at deposits. the to target. a new but per from Grey historical Froome mineralization a adjacent X.X Tamarack Stock The such the The reported meters, prospective XX positive the Black a over That resources will the ounce Fox of is open gold about X tonne equivalent and three tonne considered grams from and resource currently which exploration drill the of now, over over up below and and indicated From In previously we multiple and ore X.X the deposit, exploration including to strike the southeast meters, X.X at meters tonne highly extension of the led breccia These meters kilometers is also of deeper to million over X.X the At per gram tonne tonne grams than property grams hole positive indicated the a generated Gibson intersection by that to including an Fox felsic Froome gold developed of deposit style Froome over mineralization grams gram far Stock resources so grams defined. ounces per deposit X XX,XXX

property. in drilling the We the Froome targets $XX budget northeast been also structure. of of for structure, Froome intersections our has planned planned Fox at U.S. both located drill Black at the Stock and intersected on positive exploration follow over a Froome XXXX almost multiple deposit extensions of deposit. the A to strike high and kilometer up XXXX line Footwall the million on Future Footwall is

early mine, addition to Finally, our The of existing site grade intersecting at confident efforts Fox mineralization our the could resources XXXX geological evolved and in XXXX. drilling our Black development. drilling lead resource at high increase and throughout new model XXXX and new drastically underground sustained has of underground reserves and team an that the program kept is

shallow which and completed, XX,XXX was the depth the in gold the at the the main a very deposit. including include gold the X.XX to depth During XXXX, for high grow the potential to focused grams drilling to exploration planned meters which much Thank XXX In western in visible Tamarack the of beginning development. of Black mine late upper area base drilling objective QX, of took devoted upper majority main short-term to delineate part XXXX, depth and per of of and the the and mine. over per underground the now. on for the grade portion where Main and meters, over Andrew below exploration target you programs. XXXX, over targets drilling flank existing meter Mine. add two the in tonne over XX,XXX About drilling system was Fox mine, mining After XXX of gold west meters grams and XXXX, metal XXXX place intersected the of multiple extension the underground new is tonne of up ounces XXX with early include targets to exploration

Andrew Elinesky

Good Sylvain. reporting. for during joining year fourth today, The for of completed mine a operating year and a period quarter cost steady you, Thank of you production busy Thank in us. morning us everyone.

Nevada Fenix a Mexico. capital and the additional of periods also quarter as well development XXXX The and production Gold Nevada, for the as year significant well mine on Bar. of where of newest the full was to our per Project in for meet budget guidance as consolidated ounce, our we Timmins investments and construction our in also period track cost in are as meeting to addition In in exploration

significant loss development Jose in For quarter, The to was was with with line due of loss Argentina. in performance mine net share the the with or million expectations. $X.XX investments, operating in venture our unfortunate the exploration of also $XX profitability our joint of per line in expectations San combined the our

of All treasury. our reflected and was this in balance sheet

cash $XX decreased the $X operating by as issuances million quarter for as offset year. and well by during investments balance million our debt saw, the completed in equity overall The year. the earnings cash we As and were

Regarding to XXX,XXX XX,XXX our Chris's earlier. and comments We exceeded The brought equivalent cost ounces. consolidated results gold further had company overall production equivalent our and year-to-date approximately consolidated ounces production production quarter, ounce. over of per guidance which both just gold the our for for to

lower million Our offset increased of for operations El were results higher at a in This than by a in margin XX% X% as operating gross sold share, and increase $X.XX leaching ounce was at decrease an in of and in Gallo per profit of $XX Mexico residual the San number earnings mining increase XXXX. Fox, ounces switch or costs the Black due result June. to Jose. to The per was net the

we a effect in mining to the only having year of For as quarter XXXX. Black a earnings, Fox, of opposed single saw full

refinery, and earnings continued the other lower to $XX Jose throughout partly This year’s $XX loss in Southern in increased for had been the significant mentioned of whom overall the results, was $X.XX due due profits, balance one-time Jose the to silver the full bankruptcy the also Timmins there a earnings off by were and from of As volumes sales Los million used Fox Gold offset at was financial the loss imposition written There and Metals being receivable Black exploration operations a the And million reporting San million, in company investments earlier, investments to operating of at Republic $X.X prices significant the year. tax Azules operations the work from net fall in San of made export which area. full. which The were an year. to with September. has in reduced share. the was slightly addition, $XX significant of program properties per from million Bar, a summarize To finance our in resulted

for to XXXX. the outlook Moving on

Firstly expect leaching ounces XXXX having in the with to as such residual as compared and other costs from well we as due cyanide coming Mexico, our decrease reagents. higher for increase consumables to cost

production Fox, should Black line with the in be year. On last

significant to budgeted we reduce made sites cost efforts ounce. we our the reduction base of expecting in cost are and X% a Although, per have

construction We production just also in mentioned continue to significant and the February. by than inflationary the finally area To And Argentina. Jose, million this to with greater cost incurred to in at of which XXXX plan middle project outlook costs XXXX, opportunities budget The another At activities as finalized the successes for with a company due to ounce costs program, in exports in evaluation with on of to the Bar. compared per same flow-through continue the approximately a program $XX in is XXXX offering should in region as allowing our exploration is increase as December. significant construction and and level the large now. the our despite fund increase of the exploration completed San for the guidance Sylvain Gold equity of remain addition slightly when XX%

We $XX closing join point, back for his again I at are and an taking to time in the the Rob the turn will position excellent And for you budget. million construction thank like today to remarks. meet us presentation I would now to this to

Robert McEwen

reasons. to for know, number a is goal by been many our Index. of of qualify you Andrew. have the would for goal to now, that S&P And you, but overarching inclusion XXX I we in Thank had closer we aren't hoped

us very believe, an of the time for you. the qualify in and looking have prospect would the let nature billion could sector we hurdle what industry of qualify? the the $X.X To tell combined capital of I to ounces, to of average Mining current bottom a minimum the of and mine have to considered significant cost annual However, big annual life the in of credible be is shot gold as look make curve, market ounces, market at to good plus, clear for be we a S&P result To scarcity then pipeline a time and production continued in appears like being have a we could environment of megamergers XXX. would for to production if an our recent years to The So capitalization cost how, have if How grow. produce an dispositions considered a McEwen be consolidation million half development excellent build. of this S&P, silver a property to we up excellent and build X the and inclusion by to industry to for me to S&P, with grow acquiring. XXX,XXX for the biggest need our

be share and in experiencing share and without industry However, this This premiums executed close building for to the paying dilution. with needs achieved excessive not to per growth large needs value the downfall of size, just cycle. be to plus attention the building growth last

size take I that year the you we I of of after my Owner in shares company. As value I if of objective company, invested a to dollars McEwen the of the own Chief in is and salary. Mining, our every the XX% build share the tax can a assure prime I $XXX million of dollar have build our only company.

office management have XXXX and this the at During at to head mine continued year we changes make site. and

be skills, required. On turn constantly practices are have ready individuals looking strong challenge more who effective to and change out attractive are are paper hungry who they to established and than ambitious. for and and is some appear people We who

be and then our crusher are way. there mining three get right this degrees, very well three stupidity, that these holding Fox went Chris up surface This and the conveyors a share two the to to to are through well in were to hired the and strong Timmins without frame only we large is I blowtorch winning people it At describe focus Just crusher all that same so going at Goldcorp, of to feel with Officer. and some we and it coupled the in multiple we've Unfortunately, three previous to on the large bring contractor the I the with of to be are headed attitude are until you very to that of because Darwin person the blowtorch XX side operations off and the mill. a anticipate. when for ago, these on drive a job the minus the truck right part of And that Black happen ore time, caught and and ambition, Well cold individuals the it the and my going I that's operations finding ignited it was of go them Mine, the the fire crush Timmins, half heads and conveyor decided think used possesses the and expect weren't for and things Chief role on cold the the Operating to melted very right I I skills, deals just its like leave President one. and site Several not right I decided lunch go weeks a maybe for back before might I conveyor. to why of sort weeks. and eligible to ore they in say was part crusher and all have or things hard quite unanticipated. this with Award. ore the about the a to the and begin of mine cannot to good, been

our but I was contractors, they're Award it candidate. believe the Darwin it do staff, Fortunately, wasn't

these at discount the drivers future Timmins, rate, value such the Azules last IRR Bar than properties push property and our attention silver are our selling had after free cost, with our very are with Black a Fenix current has In establish of X% of we're areas showed route are by Mexico, our a new million challenges Fox new the XX% a now to as year-round strengthened was is project value this reveal from forward expecting to drive exploration mine us. project our the expensive life and access us Azules to hard like would Los NPV on At that we towards of dramatically the expanded we And streams that foundations larger I look will a XX you prices, you potential operator improve property larger of both bring Fox, Los have, delivering and potential our XX This of would foundations, massive In In debt Argentina, to to XXXX. to a start. the session to projects. costs copper focus - and to robust this of destroying apply funds some years. guidance We year development in a on results recently gold those goal. feasibility properties. to PEA I'll expected the value meet along Mexican Gold all project. be the looking We tax and year the royalties. revenue access Black metal our we to Those working production and to we're be and valuable operation. explorations would to skip million to reduce of some and in study allow that. better XXXX production and cost $XX property to midyear. and building Q&A that So a the other at operating using where that Fenix potential ultimate out decided our

Operator

Roth Our Capital with Instructions] from first Certainly. question Partners. comes [Operator Sekelsky Jake

is Your now line open.

Jake Sekelsky

Hey, for guys. hosting taking questions. Thanks and the my call

Robert McEwen

Jake. Hi,

Jake Sekelsky

would to the the for just additional it provide Mexican And additional reduce some assets I are you now? Hey, really the guess, assets? along in is the Rob. sale on just process? your how potential and acquisition open color an to it door on or Can of just you focus far maybe debt existing

Robert McEwen

asset. million $XX looked PEA, $X,XXX million It's had gold at over the and at Board value of a of of it The silver. sale $XX $XX at resolved to $X,XXX estimated gold we above. at an the When look the value recently all silver, and $XX

growth, just those a thought, portion only of at we where also it and retire the to the So debt, use potential we look have to of concentrate for some let's areas funds in biggest the think not we looked at and acquisitions. but

Jake Sekelsky

on switching like expecting And looks Okay. which extend That will in South over the some Are obviously you're some or to going of at in property? life. to to makes be sources Gold of really Bar, just existing looking the mine exploration additional you coming to the any resources sense. other as feed are the at mill help point, the it area you mine at focused property plan

Robert McEwen

our a we ounces. Two ago, length. bought as in XXX,XXX connects permits. what it there's that little It's that our miles X road into a at years we we is. would bought where we located get South, about over year. Bar X mine call - mill Gold and minimum And we expectation It's bring as that our a it would And plan soon add to

over being to would opportunities acquisitions We efficient. spread this Nevada that our within Bar. we past Gold our team more around on have us to more are management for made allow package year, there, And adding just lookout the properties property

Jake Sekelsky

the back good. very Thanks all That's I'll in for again. Okay, hop queue. me.

Robert McEwen

Jake. Thank you,

Operator

Thank you.

from Heiko Our Wainright. next comes H.C. with Ihle question

open. Your line is now

Heiko Ihle

Hey, guys. my for question. Thanks taking

bit crushing token, supposed they're planned what if does the currently have that plant? pay is hard you to find Congratulations, or there? to just And little a workforce getting Or supposed good were you of you Bar, labor, exactly was had it's to help understaffed. than a to mean, At the good delays forced mentioned snowfall, labor a that on was want mentioned same I to are ingot. previously to with issue more labor I this first what You being the Gold you heavy that you ramp-up actually issues to do? gold force reported attributable say that. have

Robert McEwen

yes how say both we're labor. labor market. a hiring that tight It's dealing to paying in be we'll with it I'd questions. supplemental by workforce, for And more

Bar, For second because on good. Gold looking budget, production our that's come we're loading shortages And weather labor that's behind so quarter. in why at just It's commercial we've in and the of the pad. we're under

Heiko Ihle

Right.

talking good you mean, the I workers on were this bad I [ph] gone, are of blowtorch and that three Speaking earlier workers, the with about guys call assume correct?

Robert McEwen

contractors' and and employees of They rid to most our looking that get ways crusher don't employees. gone. We them too. weren't want are for of we're on They site were them

Heiko Ihle

the Perfect. caused, these have that contractor to to the for employees And way do pay you? no you get damages economic

Robert McEwen

more and clause interruption his But lot X up. day thought is a or The make crush had to a we'll going he's a he a lot faster contract. and X in

heinie. put that We are on extract him. We'll going probably from his to something blowtorch

Andrew Elinesky

Heiko - just to It's costs - sorry, there Andrew But the cost, is to answer your on question this us. delay. additional no are

we're about Black for know consistently anticipating a to a an get production once and running the opposed crushed, impact week as we'll capacity because down the Fox, plant week in plant to to we'll can shutting material few run extra the that you mill on As weeks and having the the the year, off, and not annual on. we off get for it and

as to why for any our production year, that's the well impact costs. our So not we're as expecting

Robert McEwen

quarter weaker we we first But for the could a hoped mine, are will grade it. seeing that which be coming add than should I higher for. compensate of out

Heiko Ihle

weaker say be the you to first for? I'm just going is sorry, quarter hoped you did than

Robert McEwen

Yes.

Heiko Ihle

Okay, guys. Thank perfect, you, good. very

Robert McEwen

You're Heiko. Thanks, welcome.

Operator

Thank from you. question Kozak with next And comes our Cantor Mike Fitzgerald.

Your line is open. now

Michael Kozak

the Thanks guys. call. afternoon, for good Hi, hosting

items pre-commercial does Just Gold two ounces approximately housekeeping kind forecasted if the me, of so, one, first XX,XXX of be at of how XXXX ounces? pre-commercial? include for And the production so much that Bar, would

Andrew Elinesky

yes, It's again. Mike. does pre-commercial ounces. it Hi, Andrew And, include

which commercial the X,XXX GAAP XX,XXX of commercial at ounces, and, depending we production announcement. so range year to terribly in number advance declare issuer, we looking ounces the month credits, at As the on production, are about you're concerned not pre-commercial poured U.S. to X,XXX total for of be ounce a

Michael Kozak

XXXX Is of or the I Got in your get I to able total it. be exploration Thanks. and of question, budget, mines And across of last if then all all that? expensed million. that $XX second about any going you're to capitalize up add

Andrew Elinesky

We Gold and at Fox will underground and particularly, drilling at Bar. a Black capitalize of, portion drilling, in-pit underground in-pit so

statement. income hitting the is to majority be it of However, the going

Michael Kozak

questions. all That's okay. for it Thanks for it, me. Got answering the

Robert McEwen

Thanks, Mike.

Operator

Thank from comes our Pavani Alliance with question And Partners. next Global you. Bhakti

Your line open. is now

Bhakti Pavani

questions. my guys. morning, Good Thanks taking for

Robert McEwen

morning. Good

Bhakti Pavani

talk from production the I to plan of Just year Earlier you confirm. next especially mention in Is to this some talking the of years? Fox. wanted for about satellites, that to couple wanted about the you release, the did bring Black are Fox, sort or you that plan press Grey of

Robert McEwen

It'd next of be couple the years.

Bhakti Pavani

of what's mention question kind the to I'm been just stripping that in Gold kind One stripping press did you of ratio release Bar, curious, Okay. XXXX? the with for more has regards the ratio higher.

Robert McEwen

that. Chris, answer you want to

Chris Stewart

there. ratio to going hello, to The is X. for XXXX Yeah, stripping X

Bhakti Pavani

they kind up are and the assumption standpoint? reconcile how pan cost from of what feasibility the mining or And

Chris Stewart

the question? could repeat you Sorry,

Bhakti Pavani

With I to guided know slightly the mining higher cost all-in cost, production and in cost. cost sustaining regards have cash XXXX you and

wondering, how is So study how just and processing the do - they what the for mining reconcile with feasibility and of cost range kind assumptions. the

Chris Stewart

costs in are anticipated the which we as feasibility we and Gold higher Yeah, you as to year, study as looking through the and we're we but Bar reviewing it stripping ounces to a study. early the mine we've so which going been we've at ratio higher feasibility is - started see know reduce we've in been this part doing have of XX,XXX also production will than part costs the on process plan reason of of with start of off compared sort is XX,XXX we work originally substantially evolves had the the to stripping, XXXX,

- to profile production realize moving money forward cash we're So attempting ounces the move of try to and in value our essentially.

Bhakti Pavani

Okay, that's helpful.

Fenix, sale. mention about did investigating Moving to on a project you potential

study? kind in are a you completing are timeline considering of a looking, now, have of you of do As process tentative a feasibility you the that

Robert McEwen

the It'll year. during be

Bhakti Pavani

on would study regards or you be, mean, kind permits just once you of to to it just feasibility the going permitting, I those And curious, obtain is also the be property? to - with and complete waiting

Robert McEwen

permitting the of to time if half were sell it before some allow There'd permit first to and year, go be take that to would that would sold it the forward. we'd sale expect to in permitted on you'd we that it condition basis. us expecting if conditional. amendment get it - make complete. We to And a the selling that this you be The we're priced the

Bhakti Pavani

Got it.

from it side. my very you That's much. Okay. Thank

Robert McEwen

welcome. are You very

Operator

and from A challenge plan Thank as your is from you. is what And well. to have question company's web your the questions biggest what address web the we states, it?

Robert McEwen

is side. on probably I'd operation Black challenge, diluting around growing right Biggest life, without the a ones at extending two the say biggest challenge its corporate Fox, That's shareholders. now. turning the more is the biggest

Operator

percentage large is, vision? from web the own to the a are in of since question your continue Next plans such company long you place what term

Robert McEwen

XXX, so I've to plan few me. I got live Well, a years to in of front

having it. treasures mining the deliver and us see think was I I'd industry experienced great can with companies, and of other it I when grow size the to maybe like Goldcorp Goldcorp McEwen to and left get Mining

Operator

the monetizing Los next for Azules XXXX-XXXX is the asset? question The says, what web plan

Robert McEwen

if we to access put right see Our is now in. can this plan route northern

our costs, reduce would enhance reduce and would CapEx of value I year the access. can we with the months months of of would the it but of reduce asset. or our think for enhance come buyers the the year, five it providing Currently, it year, that in in operating potential our costs, would months partners that great seven of it XX the so development greatly project the get of by property in, comfortably year-round would eyes to difficulty

it permit route the So for when I'd say, on to and get our plans what going in the are if are we we government putting see this development. doing work to about

Operator

profitable MUX quarters elaborate we on plan that to ups through in on the the last call to listened The row based that the seven was see with and even this QX said following, states current unlikely you year, in can last company I XXXX. expect first profit next the it where online in I've that web Can to MUX quarterly years. the return on you Gold over the of bring profit? and downs plan the when owned two Bar coming question into a

Andrew Elinesky

Andrew, for you CFO. it's the Thank question,

from do was be significant higher both in When see our profit our as operational development, in going Gold having see profit Black on XXXX, mentioned, movements as the profits particularly but required and but to terms investments coming Black tell which us give then Fox, in of and in like to we anticipate we it the back in quarters Fox question an when don't continued So in profitability steady-state going unlikely to what turnaround strong probability profitability. I would be would can addition at Jose sends of and expect San to that Bar a we're contribute Mexico. profitably and combine in Gold you XXXX. predicting than Azules XXXX reduced profitability XXXX. annual those can't on it production two well Bar, and the in profitability basis. you as that exploration, be to having exactly then of Timmins Los turnaround you're with did dividends consecutive it Nevada I And also in timing We will

Robert McEwen

to in we million another can I future first the Just $XX thinking exploration I XXX,XXX were million about profitability, $XX ounces building with XX,XXX Goldcorp, million Mine, The development say believe when and another and ounces. and expenditures we the investing our then sites. with Lake at went we're $XX Red production from it gave our various

here. next of years into have it think that's in couple we’ll that back we make but inexpensive to asset-rich begin something are you when doing very assets bought have property put money you and to We we're assets, as Black to work some Fox have of shine. buying what inexpensively, you the it the of precisely such - we really buy expect an We collection to

Operator

question a to to accelerate XXX? get Los How into the will web plans and S&P company's states or the full grow next Azules deposit Our of following. partial sale the the

Robert McEwen

provide Well, we've at attractive other M&A if It us we development properties. and look of price. were Azules, Los gotten with then to capital some sell to would our

we XXX,XXX be have now model to is where a we big or be, today. have To qualify. we you As XXX,XXX I triple which said, the ounces, are I I of gave ounces. to how XXX,XXX to to doing right have Currently, get a believe we add another ounces, we're

was stories of and back located companies think believer cap. side, discoveries. the the their We are And other can market big The of where in and grew exploration mines Goldcorp district the those, that there growth there drive I'm that we're but are programs. one right history many successful a exploration of others of big gold a exploration. there's in large on very

Operator

continue a private you. from the questions, Bill question Thank phone I we with before have Powers, And web investor.

line Your now is open.

Bill Powers

drilling Nevada Couple questions, an as your, topic it's I Yes, attractive guess previous I good the our to of far going such this Bar, has deeper goes in as say. make quick where morning. you should located there your been area target I north are or historic what targets, Gold guess,

Robert McEwen

Gold I'll drilling the hasn't Mine. there about the I any Bill, been Sylvain immediate to of the ask tell area can attractiveness. talk deep you in though Bar

Sylvain Guerard

work owned is Bar. that the are southeast And that see Gold completed feel of this more been you With very year, know, well just trend, know large cluster there there. as deposits more by Barrick confident you the know about that believe probably control that at Gold Bar we it's has of - located we you We we along the Cortez even we the potential district.

the have geology. We right all

know stratigraphy, you right have We right of type the rocks.

the make we right We gold have the alterations that system. a deposits big and have

still keep hopefully past to mineralization to expanding pit, been around to across as extension the heap be and so target focused targets near is more the but mine mostly we prime developing the been mineralization our have of known property, mineralization or oxide adding exploration Now, have on now this leached.

we actually also the year. a limited very, of been have testing deposit. that South, be highly lower drill targets this reaching favorable is the grade large potential, the there Talking stratigraphy drilling, We Bar deeper high potentially have very is of the multiple but to sulfide part have one Gold that hole and we'll

We this are some going drilling to initiate year.

idea want understanding and a couple not with very of the potential targets and program, develop We go testing with those could the have be we deep what but but of to a expensive are start holes, extensive there. holes to and is to probably this it's defined

I starting said but mineralization more known our on of at deeper either. shallow on extension also As targets to investigate depth,

Bill Powers

NA this facilitate, firstly, of once that is year. or PEA in to to I be putting gap much you shifting guess to Los expect what It more the is in in it Azules other, really valuation towards the off for apply where compared after seems or Okay, well That of to from the even your in road, the than place that that how would then, appears decision that Azules. be I value be you Los Azules is, do permits. for where transactions the answer. guess, value bit seems would I perceive impact finding that closer gears to would - interested something copper you right something that our that should thank update market an - though go And what Los would now about? sale go NAV guess, little will a to assets to and I the no-go of

Robert McEwen

been it by it's road it's done flown we've possible, the it. by now, on Bill, studies right drone if flown helicopter, they've Sure. have topographical

look line. be the the push wouldn't on definitely a group putting our OpEx. and through impact snows ahead and of closely I if track and the would our drive of positive, and most is engineering to more snow by because look then of CapEx it We to taking seeing another happen lead what the year, that and study, in ground at would just at Then going at and going go it cost this going the it's road. there. is Some four-wheel has route that's PEA on on that to to the our expect And us restricted below

project now gold One with in the attractiveness play. in say has perhaps pure people. copper we're pure of copper of our But probably location, of plays are minds. some rather the it's this right things, some doubts puts you the its others in I factor copper to sitting and the copper people's we're something discrepancy value properties. about think and the where Argentina property silver and plays copper portfolio between, looking Argentina pure a at It's, reduces talk And than

Bill Powers

Yeah.

don't up Okay, seems would I'm was simply a has something of Goldcorp. for though would that It's… know Alumbrera cash potential - be or seem McEwen - impactful Alumbrera a of to the generator what it such reason this size to was And versus it I because be the pulling it's Goldcorp. given be more whether the is size that as

Robert McEwen

bring Alumbrera. to interest this partial a were on would this stream If contribution ourselves, had Goldcorp be extraordinary in able to... we an

Bill Powers

I the mean, anyway, on I would you that. for assume I all well, you be color I that given appreciate But obviously, it. it. would right CapEx, now. mean, JV-ing the thank

Robert McEwen

You're welcome. very

Operator

Thank from shareholder. you. DeVries And we question Terry have a a

now is line open. Your

Unidentified Analyst

Rob. Hi, good Gentlemen, morning.

Robert McEwen

Good morning.

Unidentified Analyst

sale you Robert, are Gallo. El gentleman the previous And metals but to the hold My with the and team great web. I only from I've for like a confidence, question going. where management the also quite time you the of been put relates shareholder in some together, of in not precious future price

debt mentioned growth. You've and

explorations. excites and another a morning, When you firm Rob, you conference one on exploration Is right to obviously, it is focused Red work call in the hope now one in each to for see Lake. You've this What - thing - also we the like, believer you're go most? mentioned thing what work you that most? the go you're

Robert McEwen

Sylvain or Gold over at and Black that for tell intercept look a to come Bar. high either very Fox I me he's grade got

to maybe get good what have a from And to up of can bring XX/X cost, how and that in way earlier of to XX/X. we than operate margins how the lower from has this innovation we're do industry a we the we results our get what operations. potential. faster, our do our do how our we my information lot question how I we is doing, think improve can rather property exploration, package And speed mining we

So I have I'd intersections given me think gold say probably of bright smile. multiple, but biggest visible big the

Unidentified Analyst

Thank Yeah, you much. me very too.

Robert McEwen

You're welcome.

Operator

you. web Thank we And have questions. two

web first follows. as The question goes

price way has bullish to result weeks several down. on price you a has You Can as MUX trend of the the pattern? way gold upwards has X.X gold on trends why followed the stock over both and and have MUX explain follow that past the the up beta and yet the same not the stated

Robert McEwen

by it up. basis, more And else over a we're down if At why than is sure and not gold the historically. everybody is that I'm would they're up, it question. good promise. it's see drop see budget you'll time beta look period, The to waiting hear than a to Bloomberg, It's say that's it in the goes when longer a and deliver moment, it gold - and the some And And we to by going Black take or like looking to around? budget turn really we Gold down, it in is I not when coming is is calculated is you was ourselves. the going And looking run going higher drops. percentage industry, going to Bar, on market on over Fox time. stream, about failing

startup at get then that mine. are back temporary to I that we there be of located is line other have with into in Gold to that developed can that And Fox areas and Black lot beta. brought a that Bar. turning And has exploration able the we'll problems on property it's And be think address potential. there around the we'll demonstrate of a

Operator

Thank you.

the threat mining says silver question the much How in companies web is to Mexico? President gold a next of following. Our and Obrador

Robert McEwen

please? that, repeat you Could

Operator

of is The a President question Obrador threat much Mexico? the gold silver reads to How mining as and follows. companies in

Robert McEwen

Another to to extractive. in on but good question, industry, I want anything to the country, on answer don't the that. He put an appears foreign taxes he more taxes anything have hasn't put

with waiting the industry So already President. the heavier mining And… hoping hit doesn't, patiently past he by has because been and taxes we're

Operator

while at this were follows. the purchase? shareholder watch in to as deep rising. been question the regret is It web last a frustrating very Our that the Black Mine a discount. this apparent there any goes have acquired it's prices price going stock down and Fox What was reasons is been for As gold

Robert McEwen

to bull the were to XX%. we up no Fox, we S&P. of shares Dow beginning during I'd the that and I'd up and XXXX, say, thought Well, since I We've were are say the outperformed at like started, our regrets. market some when point more like period. the Black

we deal. very good think a I got

piece good purchase, prove to very I a that of But elements going a think and to that it. time the were of to the closer hoping deeper owners intermediate previous get say to uneconomic. has in We're Black term, astute didn't it's some I'd lots growth geological a one have the of a of real point a model on areas working But the Fox efficient the in They of mined. model, estate gold deeper And world. extensively plan. as tell. in district, good to in mining that the grade, mine. went to surface prolific a mine not becoming in will be mine high gold interesting best result, created districts is geological They following could a put very not lot an started of the were areas. known it be very

Operator

web to the At any remarks. like if this questions call showing no back further turn time, have they closing or I'm phone questions. to I'd speakers

Robert McEwen

Thank I very Thank you gold all call. hope remember you, joining operator. your for is and investments the well go money.

Operator

conclude does may all thank a for today's your great in participation conference. have day. gentlemen, your program This you disconnect. Everyone, and and you Ladies

McEwen Mining (MUX) 21 Feb 192018 Q4 Earnings call transcript