MUX - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, ladies and gentlemen. Welcome to McEwen Mining's Q2 2020 Operating and Financial Results Conference Call. Present from the company today are Rob McEwen, Chairman and Chief Owner; Peter Mah, Chief Operating Officer; and Sylvain Guerard, Senior Vice President of Exploration. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Mr. Owner. Chief McEwen, Rob

Rob McEwen

up months. Good day shareholders, gold we someone impossible. climbing And couple was said have ounce." said, "You was operator. reminded they It's and they a and and a been of last the great couple have. over thought the going called I said morning, $X,XXX you, was ladies fellow gentlemen. was to silver other and day, And back, it Thank an Price that gold of of years

just over prices. real of easing amount the we're of like $X,XXX Now in is an the higher quantitative on tear. given debt, ounce. we're a that's the looks on and Silver been going going And to it world much all see

the there. to conference health standpoint of currencies We of And our we but of what's proud think example in not those take right proud the of about to are currencies. something to employees because look a rupee we QX QX, to a price was the good lot risk price you spread. COVID contribute "There's now, we're I want over a has other – said, a just the off happen of and gold being of in gold PDAC. quarter put that we the COVID," before at employees Indian of that's we from about a taken it's If profits. And the at a started that along, with of when performance, of came didn't our to and

operations weren't to the firm a – on our going on, mines. that impact but to have conference." is a no there, that, And to "Well, going had And one said, produced. we booth, expenses not but suspend were ounces serious the decided we to we production. we're after very that our at early going The in We're So attend. not

quarter, when the we we've knowing this – that operations. they're longevity it's in protected and sick past But so quarter, in numbers life our we've look that the And of I'm in I employees. just them. see because be And me they – really important seen the at make these protected QX, that comforted

Going Peter forward and you'll of that they're hear cost all ounce we is numbers up ensuing operations, the at to reasonable to expect back today production and go from per picking our in our where quarters.

some speak got have also interesting about. Sylvain you We that to news will exploration

I'd Peter operations. So, this presentation our at point, to to like turn to talk about over the

Peter Mah

Rob, you, COVID, in produced this progressing and expect that resource towards And developed, quite and in of in in up of well. is July late we been update has improvement mining positively plan The year. QX June. end of and the and morning, Gold At this XX-hour on half of in and on shutdown started good July May for single operations operated towards XX,XXX. we April shift gold on are and work scenarios, levels implementation for everybody. quite by cost started optimization during costs ramping a Thank the was back and track, Bar, was targeting QX, Production improved ounces project we year, feasibility and impacted progressed Getting and and Also, first X,XXX and has the are processing we optimization QX. curve throughput. and

access. that delays our in the We the development first XX,XXX was limited the mine operations, the [barely] had Black X,XXX ounces lower for for shutdown half to Again, stope and shutdown. produced ramp-up Gold quarter exposure of COVID-XX stope longer grades as blasted impacted production resumed before this the year. on Moving by Fox. normal was from times were timing slower-than-expected that and

bit that new? expected we the schedule, Pleased to of to QX half equally the preliminary Fox got of first is Going we study, production reached West to awarded year. ahead XXXW, and in in expect high will Canada. out months total Black in nearly lead on economic properties complex Black performance. And Flank Complex. complete week. are in about which that resources them, summarize ounces on next our thought ore analysis split encountered What's commercial study, Fox we'd it's costs that we anticipate X and just to expansion of X for stopeing the between in-line A report of the We of development, a you pre-COVID-XX XXXX. And to and QX. QX will Timmins, next step forward two, come be we tender be track gold grade little we Lexam and year. know our Canada, in kind first million in for production this our Froome And ore in is expect with

Lexam of XX% Timmins peso the And expected quarters. the Tonkin Grey I oxides. using are and and resources exchange Next it model, Gold and review, Americas. equivalent The leverages a $XX rises XX% updated slide, preliminary improves. financial we'll rate, mentioned and on Based million. be those USD prices, silver, gold the the XXX,XXX analysis, prices is Fenix; IRR our is year is XXXX. The Mine, to just convert Bar in is regions currently metal NPV on XXX of of is Bar; low-cost our properties spot Fenix and projects: near-term silver in advancing to Fox than sustainable, gold of At the Using north QX The objective and per of $X,XXX XXX and greater discount rate economic Stock; feasibility million. reporting XX.X growth the towards following organic X,XXX seven total project and XX expansion and gold Gold the the three under USD X% NPV Black operating the at consists And IRR projects South. strategy Fox; in that strategy of Froome; production ounces to main our this strategy. in such as its several extensions; the

XXX Flank. Flank, active level are a about shorter It's this examples in drill shown so Both the result update And dark On the – some This on and for Fox slide, which in Black the slide touch far improvements production some stopeing mine our Recently, developed working such of give areas next Fox. shows stopeing next definition new near-term the very we planned Black that Froome XXXX and what's XXX new on develop – actual different got the and hauls East. that towards in increase the and of high-grade mining we plan in added highlights the will the Grey I'll we the pardon has mined-out upper as part opportunities, it's that area, XXXX an Fox at and these – and on created shows nice of areas tons represents year. projects, is development. Mine areas development, on slide red development, the our resource, some more to mine stopeing are Two the for me, acted area. XX,XXX year. XXX respectively, West plan. blue and some those examples in the and this the All West of XXX half is on Gray sorry, first programs and at phases, and of flexibility. the this red of areas, year-end XXXX

existing close is end the declines long-life towards Froome expects in low-grade red, project become be could right The if foundation and This asset, this the the in slide shows one build Portal a the capacity Fox open-pit add in Beyond trade-off strong Zones. completed targets this the and XXXX these West opportunity proximity to The Grey a high-grade of to of shown They shown South the Fox new discovery following Grey in have some to project. the year. Also XXXX a our above next Jack are It's production be gray. QX core upon. the Contact opportunities, which conceptual Northeast, and representing exists workings target the exciting assessment an at and left-hand shown study we mill most future. XXX underground will the the slide analysis mining will side maximizing the determine Contact, Zone of completed and in Black our it underground to this opportunities shows in the drill and The of XXX and/or of new Gibson Fox future inset. [stopeing] pit the bulk company in is Flank will Stock slide to A pipeline. Whiskey while towards year. inset to assess

this next update slide, just twin average about is Froome access overall On our ramp of where an XX% complete. is the

which dot red XX%. beyond colored was of ramp right-hand around July the pit. as the a bottom actually You The of shows complete, Fox see decline the the little side, is the bit on of XX, at ventilation Black the location Froome XX%

red expect to the in in XXXX We Commercial production This zone shown side stope includes the forecast a body expected and light dot. development, the ore here green ahead is the estimate fault by longitudinal slide conservative and advance to on of begin the QX the slide. of a XXXX. reach the QX left-hand of through in transverse middle shown of

lower expected also and the mining, underground pit. meters shows has ground a this sequencing. development of Black A help more to the suited It Larger good beneath and the efficient a to straighter will and in not style a for the grades conditions. in gradient mineralization, important most haulage shallower fair more advantages It's project slide XX ramp deposit. Froome deposit mining slide, continuity the for from some disseminated and We're wider widths to and underground bulk Fox. productive reduce ranging On equals compared congestion. XX consistent meters next of low-cost wide mine it's stopes

expect the to to projects over provide control. hand results. we dilution with QX Sylvain That results so, And update. concludes and operational exploration grade I'll the positive and

Sylvain Guerard

Drill confirmed pit assess exploration Peter. At shallow Gold mineralization. over our to the plus South the program primarily you, satellite Pick been miles about which activities are mineralization, positive and of provided grade satellite the drill and our have confirming Bar, West southeast deposit, key width information results we West gold at the focused program. and gold located elevation, At drilling at a deposits. X-gram Gold were year last drilling successfully Gold reinforcing Pick additional Gold completing the In-pit X.X of Bar is and South zones model. is significant Bar XX,XXX-meter area Thank lower Bar,

geological of we complexity understanding of stratigraphic on northeast-southwest of gold results ore and yellow drilling. and geometry our extension updated of of the drifting the intersection X.X over ore X.X be control BlackRock and we the drill over over south or of two testing, intersections the remain area trending of mineralization, production open with the mineralization resource ton feet, and the adjacent putting understanding are feet were South towards arrows over very The contact The is XX.X as along ton to our from the program X.X and Bar feet, occurs extending fault. and over northwest with along well per the will were mostly new development to QX Gold drill for The permitting per also XXX in feet the as which at the second XX in from gram addition, mostly the In ton X.X Gold the closely Bar XX mining the over a and shallow meter. drill of definition slide, half of drilling about gram mineralization the the [at X.X to Black important is of as to Timmins is over South start structural drilling XX geometry gold now, devoted XXXX X.X deposit gram mineralization depth], XXX intersections deposit gold and gram mining XXX was significantly expect shown from on in ton of well progressing, feet spaced In satellite intersection the gold X.X definition is within to structural gram XXXX. per reinforcing obtained. deposits level with this including, level. yellow mining west as X.X XXX keep control X,XXX the are the driving were and control include meter, mineralized West shoot, holes, zone mine. per over high-grade areas at efforts as upcoming This intercepts is ton the meter, we advancing gram coming this circle generated per The and Rock, gram slide. adjacent Several per more the as highlighted hole Flank these infill ton blocks. on over

gram return back include level over the definition this, of XXX you. meter. to I Rob. recent Central in Thank per meter, return high-grade very Deep will which XX.X Finally, intersection XXX-meter ton the gold drilling call an Zone On X.X X.X meter the impressive around over

Rob McEwen

you. Hi, Sylvain. Thank

Sorry, excitement operations, you technical to exploration. continuing in glitch. we're outlined in happen Sylvain a and our going Peter what's and to to see

see contained see it's capital We've will hard been constrained – is to We've, silver starting over and to a happen the is another I'm production just quarter, lot to several concentrated to the X is incurring of their been In now citizens, the the money to by past, we going Looking it this This it move believe we for what improving is to about going And some Froome where the will quarters, and by look see be in discouraged we of I impact wherever think when quite consolidate, just a debt. explosive There's exciting. we're going and abused we're will starting the or shares, the would growth value money currency ounces base, our from most a have significant I recently, shares. of bringing we're up out pushing unique. assets. year seen second few Fox, number say, doing what of to their fortunes to world in pipeline given is you I've bought you, as couple have remains that abused seen And to with and closer high, – areas, and a I'd you on where on open and to the whatever price company, regions I'd but a lack assist growth going to gold experienced, and more of economics see of of have metal have gold operating other although say I be much. near I ounces very a forward like amounts in and but precious Thank an we've work million region have but term, by result a large next be see better without also, to that's can into have. currencies. we're a have costs. a Fenix. My doing, when going to the to are, really holding with coming but the countries you my been response you that add for positions by is and I the out that years, you period country to beginning think questions. and the their about our potential try gets have the time ore one followed and universal the excited to supplies ride. confidence and setbacks be look very silver the holdings monetary governments in adding organic their for easier to that partially it prospects. you're getting the Stock, will the studies you become XX and of up to million XXX,XXX That tightly you're space, more COVID, ounces. expanded but body. advancing, great precedent going properties, your Grey a addressed to

Operator

Heiko [Operator with from line question H.C. the Wainwright. Instructions] first Our comes of Ihle

Your open. line is

Heiko Ihle

staying thanks guys, everybody safe. is my questions. taking Hi Hope for

Rob McEwen

I you. too. you We are Heiko. Thank hope are

Heiko Ihle

Rob, can to just mine you an expenses. Hey expenditures intelligent quarter, way there us sort you walk cetera? like by me have additional if quarter, quantify don't through what but COVID walk it through this indeed. am mine, of I I is ongoing the know et next

Rob McEwen

question, Sure. I'm Heiko. Finance, VP Iaboni, to ask Andrew your going address to

Andrew Iaboni

Thanks, Rob. Yes.

is costs leave at our to to the people safety looked and we it. standards and COVID of address question, twofold. looking the I enter of required sites. One three at security in incremental Well, improve there's really So ways as kind guess direct the expenditures the

other site thermometers, go-forward not at financial to expected significant directly Yes. related are incurred security be those we that basis. our The So shutdown, disclosed statements like to checkpoints, not workstations. continue costs were and items those shutdown related significant labor changes to the and relate that And that more retain during costs in to the and really increased to some gauges were specifically temperature period. that to significant a on those costs minor and things and we

So keeping available were bucket the we're operating where that that idle our force incurred costs capacity. costs below really of were labor that And incurred. costs second ramp-up was were capacity of the big first category then our around for the

And all those costs to the still at would those And overhead. paying categorized sales. to the were as we're so coming continue we're back extent for costs applicable utilities, that in costs And months. production wages, not capacity

Heiko Ihle

Fair quantify bucks? couple $X are enough. no there's about about million, talking it. to we Are million But $XXX,XXX? talking of I a way mean

Andrew Iaboni

Well, in Those I Note We was we've costs. – the X it incurred the think were $XXX,XXX... statements. quantified shutdown ones disclosed financial of

Heiko Ihle

them. looking I'm at

Andrew Iaboni

…of of shutdown Gold Bar shutdown at around costs, million we just costs Fox. during that period. $X.X yes, Black incurred then And for

Heiko Ihle

we trend-line enough. Fair that, if probably okay? we're doing And

Andrew Iaboni

trend-lining, not specific Because period What forward? those were operating. mean applying like we terms to do in costs you were that of the of when

For those...

Heiko Ihle

Okay. see I okay. you're saying, what

expect – in us incur So for of and don't to QX you QX? number what but have you a

Andrew Iaboni

ramping we're specifically. up right, we're not at back and operations. Not I – mean operations, then we're

COVID-related any continues, as as that be ramp-up then So long there costs. shouldn't significant

Heiko Ihle

enough. Fair

for then, guess, questions you. And I Rob, Okay.

to ounces potentially push quote, ahead You exciting an to our clarify, in of can is – the And there production if you line that provide, projects willing and we're year." did want Just could release, growth but talking to organic "I a XXX,XXX much to that? see don't how I here. color per mentioned assign to that time know you're I about acquisitions pipeline

Rob McEwen

Heiko, do three acquisitions. stream next be it have the in first. believe the very the mine. it's years, also we getting exploring of the looking Stock wouldn't five goes coming in is on there, be Black It'd a And it the property, We're and be And organic. on It'd deeper. Fox shallow drill Froome Grey Timmins area, the you that results think and mentioned to all we then Sylvain getting as heard we're we're results. Fox We west, good Mine, some

that coming and adding. see exploration, attractions but Timmins So, we the the the stream Also, time, one Black it Lexam back more bought the properties needs we was complex to the it of the on of more could when mine properties, of mill. Fox proximity

at all sort were And of right integrate And we're as everything looking assets. looking single so, of to is – we this now, those.

better in feel than that expanding. its XXX,XXX can the year, Bar Gold setback had is earlier Gold go, or They're but about ounces back a and areas production four cut bring you a then And Timmins were that's year. Bar this long-life a that area. South ounces us five we running up at asset, give when So

quite very – And are long But Fenix there it an own is all a are for of open looking XXX% those down and then the robust to some it's feasibility project grade properties we good study. provide attractive, all we that's results Mexico, of. intercepts would – of the like go And pit.

growth. get to We don't acquire So, that to have any go companies outside. have to don't we

Heiko Ihle

Thank color Very there. very I the good. you guys, appreciate much.

Rob McEwen

You’re Heiko. welcome

Operator

Global with Pavani Alliance next is from question Our Partners. Bhakti

open. is line Your

Bhakti Pavani

guys. Thank for questions. you taking my morning, Good

Rob McEwen

Hi, Bhakti.

Bhakti Pavani

I Black into would Fox. to like dive right

opportunity provided You at kind the Fox. Black long-term of

do west with come the from half about grades XXXX, quarter have flank Just curious, comparable first talking drilling near good the certainly and Because see grade quarter results the specifically improving? kind how profile area. second to and up second of you of

how think grades Just kind wondering, there? you about of do the

Rob McEwen

to you would that Peter, piece answer question? of like

Peter Mah

Bhakti, you, question. Thank a Sure. good very

to Before correction It's in answering note in that, Slide just says want XXXX. XXXX. ore to a QX first X. on draw a typo It Froome

I I Yes, in the the high-grade Zone. we're excited. We're intersections So, and Black also going think Fox, to yes, note Central that. historically very west seeing just draw some a to flank and good on some areas. see We're areas nice-grade We've the we earlier are do that here to just Slide days. X, some of expect and on reported access. early It's These gotten on drilling.

out some our excited that, recently of which those grades went report excited I We but the the very guide too to decline That's them area. are showed to and confidence. than it's you have significantly zones higher targets, We Froome about us about that grade. head give sealed area, the why on can XXX those encouraging. drilling we're saw which up and some and extensions on I But early some we on nice pretty do to

we're at to some think on to isn't zone need the in and see story and out hit there depths bodes Rob over extensions time as these into areas and And So, it of some XXX west future. well. high and It's flank Black as days. I And invest expect have grade. we center early more certainly down drilling going the And some Fox down sealing we well. of that yet said, the the

Bhakti Pavani

the it. due the at could Got – provide some post you much Fox to coming second the the could we one is third for from since along you tonnage are Black just into tons month color. decline Thank the quarter more how quarter, production into so COVID? And maybe color you maybe for standpoint,

Peter Mah

Yes, of of our us that stopes development have accesses, we access the tonnage course, And is to. trending these increase helped have on number plan.

improved So has our mining flexibility tremendously.

second stopes we half. don't issue any having see So of the forward available going in in terms

Bhakti Pavani

Perfect.

to fare The cost comparison cost you it Froome comparison Fox. kind preliminary, to about the QX Froome. grades lower curious, profile Black in how with it's to in to a maybe of grade the Fox? it – just online are in when slightly than on head Moving talk there? comparison know of could Black But does bit XXXX. little is kind expected come I but more

Peter Mah

in I it's now. about we'll soon final feasibility, about it of ahead QX. better. – That's significantly all and in the our We're I can here Yes, all that be coming say stages with out

got for stopeing the of great haul. low-cost costs. open deposit suited short operating of have all really that's kind It's the X% hallmarks a very mining, We some chambers, decline good bulk,

Rob McEwen

could going contrast in feel in for Black that it's there better? Froome and to Bhakti Fox mining on – you Could it's of -- terms the easier as opposed and Peter, why against what's you

Peter Mah

we're thanks, Yes. to tons Fox, At Black Rob. the Fox high-grade At X,XXX on taking – have are them trying Chiclets, or – out call – average. we each we Black small areas very maybe X,XXX that these

And of go very minimize drilling, so you time lot lot have prep them work, lot after, a stand-up to Conversely, do setup a of Froome. we And and to then work. a of fill out we quickly. over mine quickly them to the

contained, wide depending We stopes, to hanging primary, up XX have on how stability very to intersections, can can out. meters set transfer really more we up XX we XX,XXX range that ton XX,XXX stopeing, get our to secondary, much the wall works bigger

different type whole mining a approach. just of So

final when So stopes we less we'll the I including more costs, complete said, and – guide all-in will FS bigger, But productive on bigger, sustaining. tighter translate better overall as that. development edits, into

Bhakti Pavani

for you Thank the completed XX% so been has color. Got Approximately date. it. much to of development

much Just curious, modeling going expense half of of do additional to you incur how expense the the kind this year? of development forward, from in second expect

Peter Mah

you take to that want do Andrew, one? Yes.

Andrew Iaboni

question? the repeat you Can Sorry,

Bhakti Pavani

the I regards remaining much half? are be development expense second to to development the how Froome's for incurred said, of still in

Andrew Iaboni

we million year, for the of half second the for of expenditures Froome. projecting another development $XX think are I

Bhakti Pavani

Thank it. you Got so much.

now more about And your metal higher talk renewing Moving focus. In project release, sense. you given the to on Fenix. makes press did prices, the

for everything I study. for – the from have the of believe post at feasibility curious, the you deposit permitting advancing kind Just least front,

you initial Just And you kind for maybe project? what there? of decision you additional things about the accomplish need capital remind could to take us do wondering, a the before production requirements

Peter Mah

Sorry, was Bhakti? Froome, that

Bhakti Pavani

Fenix. Project Fenix.

Peter Mah

Fenix. Oh,

permitted. X So project. is That's the gold Fenix Phase

So project X about Phase approximately the X a X project. $XX Phase million Phase X, $XX is And project. a silver. is then Phase is the silver million gold. permitted, that's

there. now, that stages the business look our -- using. as that's feasibility we're on as well change, those for in and But might numbers case are We for mentioned, the final both are and of numbers improvements we

Bhakti Pavani

the And what's it. comes construction decide to and Got ahead there development it into advance tentative or of line line, time when go you if time to production? kind

Peter Mah

I on We're implementation working plans construction those early it's stages. schedule. Yes. a estimates XX-month about But our schedules. mean, are initial for

Bhakti Pavani

lastly, from what's operations, kind expectation San disrupted I COVID it. of dividend the but just José? Got has And of curious. kind know

Rob McEwen

Bhakti, Argentina, and provinces provinces. is having with restrictions San in most from the comes travel workforce northern to deal of José, between

at now. so only capacity And it's operating right XX% about

not it's not of be. high-grade it as you, Mind it's half silver. economics So, its generating the – is realizing much should as production

COVID in on have a move little economics to the this to but a the year, full should $XX good it $XX production, in clouding from it's March with picture. So, better, today, get up – the impact to silver there, back is but hope and issue it's just later they the

So, I can't really quantify.

am stable. on – out front, of San in I at least We the the is José. haven't been might economics, our able to we But get interest quantify what silver

Bhakti Pavani

all you color. for Thank much side. That’s enough. Fair it the very from my

Rob McEwen

welcome. You’re

Operator

next is from with Kozak Michael Cantor question Our Fitzgerald.

is line open. Your

Michael Kozak

from for call. hosting the A afternoon Good questions Thanks Yeah. me. everybody. of couple

that West? you plan Bar. but there. Have ramping there the you're year, mean solved grade gold And you full I to earlier does saying in still mean you question a going mine? follow-on September. what up, there? challenges First, at Gold at only in my withdrawn Pick at are back back for Like And have capacity a guidance to Gold is, Bar, clearly full now was output you're be like capacity you're at on mining mining reconciliation this that just

target QX? in a you Gold production do So at Bar QX and have

Rob McEwen

that? Peter, you handle to would care

Peter Mah

Absolutely. There were a all. I number them of Hopefully, captured questions there.

July, currently, ramping XX up meaning We've to our and ramped up XX we're operations So in feasibility level is production. and full hours our there capacity, hours. increased what crews end to targeting of

We somewhere X,XXX tons are range of a to in the X,XXX achieving day.

where our targeting that plan, the day exactly, We mining hence mining We're earlier the where about we're of then optimizations a versus XXXX of costs. hundred QX. focused cost cash cost. early be X,XXX getting are the starting our out on Sylvain in drilling we'll we'll past, resource It's just and has into and on spoke Pick couple In be reserve of dollars mining reconciliation that. a spoken optimization terms throughout an I the ounce of model. in in on most and, based for And tons updating a days savings West, that that's process where estimate about coming just it now and in

that. on So as updating our we don't have and guidance reserve. we're tell, ounces, you can still resource Ore

fully operating trending up and to there. this stage, at well, as in we pre-COVID. have September are expect operating very – no So and normal guidance our crewed as our things normally – teams But are fully

Michael Kozak

you. thank Okay.,

Rob McEwen

Mike, just give first. you reducing in cost or a What could from that jump if reference reduce are from? Peter, you I could Mike it reduction? to hope point for there it

Peter Mah

Right.

So...

Rob McEwen

It's – and it's not QX from QX numbers. not

Peter Mah

it's costs ounce go-forward going The busy forward we production our gold and we forward. months know ounces. nine the with so, – to And been our would complicated, our engineers. we normalized and implementation then baseline costs $X,XXX bit that we and grades achieved previous and have in our I an operational where looked at review completed No. plan our a projected and ore are production did that and in if but per XX-month at

– There's the – plan. efficiency mine. where talked existing million improvements equates whole off to optimization plan, a $XX $XXX $XX one pretty of compelling bunch of project. It that off It's There's life about an magic a we program to our the targets improvement with million so, exciting like area. taking And ounce and there's and no – for I something opportunity annually savings areas projection.

sort we and to just can So, better. work get at of streams how we looking this seven working identify efficiencies at how actively we're And is no is CapEx. improve where the This and moment. operate our we

Michael Kozak

Okay.

have like the handle issues you but So, figured the sounds reserve better the what until costs bit a and question it the mark out, correct? you a a will much get model of still profile on reconciliation be, is ounce

Peter Mah

Exactly.

Michael Kozak

one It's okay. one another Okay, then you, just for And more. Peter.

or hopefully at you've Black is, quite over Mining now. the able operations, restrictions that spend McEwen either of is jumped be on improved side of and bit So, out you the those be you've months all at the months can of needs My question to that time processing four over or side, to been a immediately assuming stuff, there either and fixed the Fox Bar. four time the anything short-term? travel or Gold I'm a at for last bit mining on been of Despite kind to

Peter Mah

lot Yes. Gold I mean improvement. Bar. spoken I for think about a always there's room I've

more at I plan both journeys We've you understand get planning ourselves. similar we and financial both resources more geomet, that lot a operations, improvements any then on think opportunities. spoken ahead our of And to we and like we of about for approaches find out can the access, mines ahead can of drivers success. sort and information key where More drilling mine have mines. similar the and technical at way

think strong I this understanding really back to a drivers. those from of that's the basics at growing our and key. foundation It's stage then of key

Michael Kozak

weekend. good me. all from Thanks Okay. and a Thanks for team. Have that. That’s Rob

Rob McEwen

Mike. you, Thank

too. You

Operator

Very next is John Tumazos John Our Independent question Research. Tumazos from with

Your line open. is

John Tumazos

congratulations the on progress you not income in even Thank the if statement. it's and all

Rob McEwen

you, John. Thank

John Tumazos

but your output, tons day, in XX-Q and grade I [doodling] reports recovery. not was one and

rate I'm the you I And weighted at Black but XX So, six procedure at it the the I noticed it of recovery the to it. when And not to there XXXX Fox, other solved the that was was the have would you've XXX.X%, owned to equation top-cut more XXX%, had I Fox, was XXX% and explain of recovery. average it quarters XX% gold, derived could And for was question quarters, is, higher. XX%. been the critical Black unweighted five if

always recovery the hard the produce to to estimate. more but suggests a think little I grades clearly, little a better than less, it's

Rob McEwen

would Sylvain, on that? like you comment right. to All

Sylvain Guerard

More what's question? the specifically,

John Tumazos

at Black Tell is your XXX% to cut about sometimes us because grade over the quarters, little the Fox estimate. top rate, hard suggesting recovery a some produces of it

Sylvain Guerard

Fox. Top Yes. negative like cut a at easy Black – mines good always that's define something No, that's we it's to is necessarily not point, see especially John. in

spectacular there an – is know, often [each you continuity] As is issue.

over top itself. have forward, site the geological sole, a we full learn about this control, efforts to Black for we I deposit in-house put We now benchmarking modeling working having we the actually cutting understanding mentioned reconciliation, resource we grade and Fox are the move the as way as the back in geologists that looking geologist year. we we and And time a as at speak learn more model, are and at we on that, about as refining and

it's So, an ongoing process.

John Tumazos

Was the past or top to cut XX closer to closer XXX even or higher?

Sylvain Guerard

XXX, It was to would I closer – say. over

John Tumazos

three recoveries the which down, in quarter XX% leach Gold leach coming cycle be that gold and reasoning the line Continuing months. the you might XX XXX% later? that Bar? closer and Gold derived the at Bar, it in the that up is you the implies What do And the might defeat to went is just first out to second have is quarter, months processed as prematurely to declared tons possible cycle went think than of the

Rob McEwen

Peter, that? do some you on thoughts have

Peter Mah

you very A technical know. Yes. question, as

production can to a directly recovering the During see Leach were lot without and ounces, XX% we residual stacked we is time mining related not up were obviously mine. the with shutdown you of there. of leach, and about tons life of

the of life of the of if your well. at your mine, you're So leach shortening shorten you life time as mine, end

there there. factors of number a So, are

I And looking delays the curve. leach That's the leach optimization heights, in time. We feasibility if designed team past, XX-foot, which to the moved improve part of had are XX-foot at, actually the was at operations think, plan. stack our how to

in or lot the leaching XX possibly a actually leach looking side even QX. improvements that We've and curves. XX actually on come done towards through our And here back saw of moving of –you the so, are improve at to stack, that we

to recovery. of of optimization that's at. improve exactly and are looking And areas So the there lots leaching we're opportunities one

John Tumazos

that get with Fox more that much The develop little one bear get pull to X stuff? and take was you has over the Fox Fox ounces if complex, more. the or just And in bank. at looks At XXX,XXX Grey Black money XXX,XXX me grams, like which into out beautiful it ready production. X-gram longer a to Grey I and How to Froome would appreciate

Peter Mah

Yes, I'm with you.

that last up some about improving particularly forward. underground question asked you It's you nice underground where continuity there. think targets There Look, we're in all quarter, early and drilling too. grade hang are It's days. moving I Gibson. can Preliminary That about although Jack, stopes. the like like for well. Zone mainly could We've meters be I like as days. pit South I underground. Whiskey to look, early good I XXX it's a drilled together very depth. really

we're beneath Permitting-wise, approximately we So, we lock looked haven't once years even looking our project that. down description. at two

And our the to load given that of front-end and we such we right with is that of So, it. done. once capital be study working quality we that to a move FS information we're plan region, get feverishly base and cost hence could why an have good we're that the the might understanding stopeing what into pretty operating define

John Tumazos

cuts there gram the a Fox, Grey or grade top is gram the is With chance at X.X a better?

Rob McEwen

answer would that Sylvain, you like question? to

Sylvain Guerard

situation, – stage. Fox zone. Jack upside early where Grey Peter the end resides of We that that at we've There's some said, in of of grade is really the intersections in new got the as high drill still Whiskey program there is the

we There's scenarios of at It's of pit see scenarios, a the as the drilling. orientation of and a regarding at And said, are, better back know. for Gibson Grey lot we the to optimize with the lot an economic room area infill resources a some complex, portion will of open that where we There's for better area. underground. still Peter understanding need of there looking Fox. a a of you We have over large growing room cutting as drilling structure also key that the go

what will sense So realistic deposit, more cost an open what the there's geometry have as and make everything, of pit regarding underground. versus there what we considering benchmarking as be the it

ongoing So speak. all of those studies are we as

John Tumazos

challenges. these taking the technical questions. I asking Congratulations, apologize for and I admire difficult you

Rob McEwen

be your They're Bar. potential at that it shown I out ones to higher the or Thank observations. what you, than liked the need Good might that gold underline being get asked longer to be we've grade John. for the questions. Gold

Operator

question next from Our is Investor. [Terry Devries],

is line open. Your

Unidentified Analyst

Good are good how you morning, morning today. Rob, gentlemen,

Rob McEwen

Good. Terry. morning, Good

Unidentified Analyst

know, one you I I a if to see, your into I've call quite GDXJ have put for if Hi you go massive Rob, understanding which as long though, at difficulty really it really is have in I you benchmark up thing don't when I fair. look that the against been – time. that's underperformance, your you I with benchmark, it, and And

Rob McEwen

Sure.

Unidentified Analyst

said of How to to We your the policies. line down, before we $XX understand and us Mining problems. towards currency. your great would to when own, started market? year, to take left years. multiples we do We're central waiting this into going have XXXX. miss banks the we I would expect, central If when certainly compared I that McEwen bull XXXX, below I at that run is just broke think your I continued beyond And your at you bull years the It look for This destroy have you outperforming it I moving and beginning said some X and projected perhaps you silver, January is knew I've had my was years. concern X when But down production, realized And of your even benchmark that GDXJ, been the this you benchmark, and bank all of of to happen. gold really long market, X these Thanks possible where very Are this. My return of because a but our to ounces had is didn't going all of no these to my market now to would comes bull years time of staggering. benchmark? or be underperformance price in you're of question much. all concern a XXX,XXX X coming have $X,XXX fault

Rob McEwen

and the Like the been same you, shareholders one and were [Terry]. GDX. GDXJ view. underperformance, Thank you, of I our Historically, bothered the by about every shares think I've trading we

at were just its think time has taking we're but type get transition a just is but good to and progress. quarters, itself everybody is – bump The huge to demonstrate looking gone if of up. a future with manifest up. internally so performance, we're quarters the believe improvements, show can that trading participating I was, occurring, dollars. where I of we all to – turnaround has believe cost south is that to And it with couple now, industry the is So, gold we We I a deliver of the the The rather to we in have go back it, produced look right the we've that north. in And rising in and size it's gone it although ounces turnaround period see price, brighter, to than the when and ahead.

Unidentified Analyst

sorry. I'm off. I'm No, cut you sorry to

be patient X to So, if I GDXJ? in-line with X or close your what produce at on significantly them, for the expect to exceed I understanding least I'm could could you're gap is, expectations able and quarters to

Rob McEwen

on we a I lot hope we that by the last to takes it's building disappointment was promise. our mean and trust time, trust and would And we're going would huge – year case. as be lost that. I demonstrating long a delivering you a have and built confidence know, to rebuild for everybody. be of And that was

to, regain of dynamic front we're what that And So, have I to I'll think to get that working we and us. that confidence. is in growth that's conceivable, hard of the outline the clearly,

Unidentified Analyst

Just quick final a question then.

XXX, you that? S&P can discuss the for qualifying of goal long-term Your

Rob McEwen

sure. Yes,

Unidentified Analyst

Yes.

Sorry.

Rob McEwen

distant times, no was first apologize. $X increased the When and no, several – threshold billion. it's It when the no, – some that In goal we into to need subsequently get S&P articulated, now was very billion. to $X.X was

our which ounces do. say they're to extraordinarily XXX,XXX to of be not I'm won't inexpensive able there less unless we're cap us $XXX to produce, million, to market going than Given get going

have M&A to there. So, to there would to be get

in the only good have would the looking the there and to dollars drive a investors coming – one XXX. we're that think I lot think more gold and a Newmont, lot gold because exposure to will be do market where there. one for goal a a into goal I stock in silver. which investment of there's still only towards gold S&P and is But very is

a – you'll in movement is the index think term. get have maybe without strong And I something that the near sector performance So, index in the you'll that there. the

Unidentified Analyst

answering year. questions. a the Rob. great for wish I Thanks Thanks

Rob McEwen

welcome. You’re

Operator

next Private [Bill Investor. Our Powers], from question is

is line Your open.

Unidentified Analyst

you Good here Rob. and today. call thank Hi for morning my talking

would it and subjects, to it lot is if of like is, another in well It range inferred, guess measured inferred, broad a Fox, sounds covering you questions – few your a indicated, guess a the not with there I and over of capacity, first Slide like million. I as only like I seems an like want of accounting had reason and and your looks Black X million goal a and Lexam it's indicated start the it sounds we but measured is X Just I it both as that X, go your to which And which if ounces, it's up to is mills? stock a me, seems time. to to resource. take guess, XXX,XXX like long mill at it's go would ramp XXX,XXX guess

Rob McEwen

early the we're trying on stage. err and side conservatism Let's it's to of say

But We XXX,XXX. room for that's moment, comfortable expand We haven't beyond all that's what to well – our we're saying. early the beyond of – the stage, economics. see of done because do

Unidentified Analyst

Okay. enough. Fair

expecting your the as a month of you're basis down rate seems were Gold study. could on said you moving color in more be you on at there – I at a for Nevada, for some give year? you towards to far rate this per Bar production feasibility – that production rest at what the As least guess

Rob McEwen

but that, think mentioned may that? would you Peter sure. Peter, have I say like just to

Peter Mah

capacity, that to get we up targeting in ton day so X,XXX X,XXX sure. Yes, once We're that – to range. per full

reserve of Again, until blending. and tons capacity kind I mine all we out targeting. of becomes resource we're tons. plans, And worked month complete is we then update, can We we guide It the that the of of we're but where and kind pit sequencing can is get capability there. the deliver the and think scheduling, stuff. them again XXX,XXX hesitant per north on our to So, that on

Rob McEwen

XX capacity. And we June. there up only during There per was day produce full [Bill], no operating May Gold be day. We'll So Peter XX started and day. we at just a production one – said, in as be shift and hours during at Bar, was May. We'll we didn't hours a

or impact of have material that on So we're we're the the a moving pad. on material amount – and loading that will

Unidentified Analyst

you Gold going – surrounding off down your South. there number Or – properties you've this drill know outside is type outside of of to be year? your Bar Okay. of Bar the road I are guess plans Gold activity? are that of those I any just to some And those a acquired Are of

Rob McEwen

road. will our concentrating right be near That the down We're now. on mine

mine. focus base Our near expand resource to major is the

We forgotten haven't about outside.

of which it's some it. a see if Tonkin treated can has incorporating about really property, It's – our into thought it the good-sized not production. as nearby, there. at resource what and sulfides. property And has a our oxides we outlined In some that Gold separate a have that past, been Bar property and incorporate already We point, on

as that So, we may see on forward. go some news

Unidentified Analyst

And the the for I far really, last you're Great. this that – the as comprehensive guess working on Okay. as – is, have as plan – year? far the would plan – – the Stock, are question the guess, I incorporated as there for going I I know later Timmins into plans be is for to this

Rob McEwen

yes. right, That's

Unidentified Analyst

least country – allowing charity, in take a Argentina's least or is significant do possibility of if at today's at increase has to at like strong I of one the from has reading been – overall rather you them, than were there out where like at going the you of profits just statements to who second Okay, prices? kind loss as of during almost home. seemed a financial okay. as And to it attitude question, the though be far were guess due the environment changed a though it generate be foreign more the the as seems operating at paying a seems paying operating the actually, reserves now significant a salaries goes, to And then to least looks the guys looks be government quarter which – it workers it'd that as – that or has more Argentina at it quick as staying

Rob McEwen

people reached money Argentina a travel sitting – And year. the there put they European home. later say, unemployed that the bans have in – bill. still America have it's hasn't or of Argentina or looks there, viewing we'll the corporations Canada they at whole the this to into possibility still, some think higher to to still point the nations I terms there's want that, foot are with a of prices, see good an they're something out but issue and possibility much or

Unidentified Analyst

so sounds I you your it. for That Well today. much Okay. great. thank appreciate all time

Rob McEwen

your Thank you, Thank Bill. for you questions.

Operator

There Mr. call time. you. Rob the are I turn no McEwen, questions further this back at over to

Rob McEwen

call. you, Thank everyone, you for wish stay joining tuned. success the reinvesting much I and in

Thank news. have that's Stay strong coming think much. well. you I we healthy. very news and more Be good

Operator

Ladies you participation today's for may Thank and and call. concludes disconnect. gentlemen, you conference your now this

McEwen Mining (MUX) 12 Aug 202020 Q2 Earnings call transcript