Earnings call transcript Q4 2022

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

Operator

Hello, ladies and gentlemen. Welcome to McEwen Mining's Fourth Quarter and Year End 2022 Operating and Financial Results Conference Call.

Present from the company today are Rob McEwen, Chairman and Chief Owner; Perry Ing, Chief Financial Officer; William Shaver, Chief Operating Officer; Michael Meding, Vice President and General Manager of McEwen Copper.

After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

the to turn now will call Mr. over I McEwen, Chief Owner. Rob ahead, sir. go Please Again, Mr. go McEwen, ahead. Rob please

Rob McEwen

operator. morning, you, Thank Good ladies and gentlemen.

with performance with Today, our start a gold about I'll and share price driving and factors up follow our future. discussion then

And world, feel in the gold entered era a that stimulation much very relevant reputation the we the low world climbed are believe stay. I rates where of people easy here new the have interest all wealth or asking longer with money. many a gold's With monetary a no that hasn't are higher. uncertainties why of price massive most in store investors into of as awash to and is needed

select interest they gold who an vivid portfolio portfolio. as more the failure lead investors are to has in bank buyers still shares will I rates a their and of play gold XXXX. start However, gold follow will large know, suspect quickly. and all we gold in reminders, unexpected role number central the and a adding to unexpected your of became Rising banks happens

about bankers. In they the past central purchases made too purchases in in fact, years of by are were their XX their much the largest holding concerned reserves currencies. too Perhaps fiat

outperformed XX, December XXXX, at since the and year-over-year, only So, it the price gold up Gold gold X% during X% increased Dow not yesterday's of the equities, Jones. but also XXXX. was close,

come to and GDX close, X.X%, the GDXJ was in the equities XX, was was another GDX measured the XXXX, XX.X%, back of and X.X%. XX.X% But XX%, yesterday's look that losses if year the During Dow junior XX.X%. down XXXX, forward Dow the the by down down GDXJ same period, and while the the to ETFs, and respectively as down senior registered we gold and December

in as XXXX. weren't lucky We

share Our XX%. It painful was was a hammered. price down

the since impressive decline 'XX, share which year, and XX, XX.X%. and very Industrial our XX.X%, this Dow look decline to end XXXX. has price the December increased the we down has GDX Average of And XX, XXX% it loss only recovered much December of the if of XX.X%, of than is Fortunately, Jones an last of to close less is back

growing So, from looking at our performance, with our our demonstration technical mobility and operational results, averages. stock lower the fourth Azules recognition With and large through broken project shareholders, the Los second good it its exploration very improvement copper price price promising. day Driving growth, provider. XX, out XXX a the perspective, Rio company, improving having XXX, a world's chart, production and upside cost looks share Stellantis, this largest that ounce, on with moving of is the largest automobile mining world's McEwen along is Copper's resource per large strategic Tinto, manufacturer

and For our operating over we a Copper XXXX, in activities of Fox our project costs reported exploration are about Complex our large did XXXX, investment its looking decline we but heavy our production at generated accelerated X%. mines subsidiary Bar what XXXX, at Los to increase McEwen Gold and in XX.X% and significantly profits, contributed are Azules the In by loss. to our to expected XX.X% and

the outline will we strategic recently those Los in of where and operations. by our shareholders the followed Copper, performed our forward Officer, Chief Meding, in McEwen Vice financings mine I details going financially to Interim He and Operating our now how more who see XXXX. Shaver, on growth comment we at success will in operations Azules Bill see we our Michael Manager followed will President completed and provide on by stabilizing importantly will Perry we Bill have. be XXXX be and ask we General what Director progress in our and and will who

Perry, off to you.

Perry Ing

Good you, Thank Rob. everyone. morning,

mentioned, discuss balance full and for the then impact year Rob for results recent an of overview XXXX, sheet. I'll I'll and transactions quarter Rio As the our Tinto fourth our Stellantis of provide and Nuton,

are, our equity, the These continue balance We'll Fenix obviously, company. a as rising and well environment in prices. these advance interest Nevada for to rate in at current issuing and without deleverage company transformative in aggressively project Mexico, sheet the allow explore to gold its as transactions additional Ontario especially

Azules For bring two things. transactions these will the project, Los

Copper and with McEwen provides the to Stellantis efforts of First, funding Tinto. it exploration another in in Rio flexibility timing key our provide project a brings a relationship significant in the It aggressive and on partner Argentina strengthens IPO. also further in the continue to potential

I'll though, statement. the McEwen important a report of to of is note prior start year. consolidated off Copper McEwen entity reflect for Los we income It a review as Mining's consolidated its and our with that on First Azules XXX% on expenditures results

exploration any for company or project for often As these study costs U.S.-listed of other that have and many earlier costs unlike a feasibility the standards, do the development, reporting not accounting of until option our capitalize at under capitalizing we peers have stage. permits that a and listed projects matter of much development at the completed we U.S. a our Canadian

million, the $XX.X share, and $X.XX million per $X.XX terms $XX.X In a This at figures, our and per into we for year looking of headline respectively. reported translates and quarter respectively. share loss of

realized. As due Los the XX% roughly to ** owned for the due of loss properties. and last compliance exploration gains year share The development exchange one-time costs also is net requirements. in the G&A our our of July is with which of Azules re-established to expensing figures share of A at the the XX XXX% the X reflect amounts remainder loss further I foreign year, costs consolidations at per charges. for for company's tax price share share completed certain that listing note per reflect NYSE the and costs

full basis, breakeven, over were year, significant our $X.X respectively. the profit operations XXX% for generated million On a cash for profit improvement a performance. $XX.X Looking mines, we and a gross quarter essentially gross XXXX million at the owned of these

equivalent fourth driven the transition quarter. the of XX% into quarter Looking gold at at down the a ounces XX,XXX XXXX, decrease fourth during Gold gold quarter was just Bar new the they production compared approximately pit South Gold Bar for as of ounces to of production, equivalent X,XXX under by

of Full ounces gold Bar of in XXX,XXX Again, in fourth year as approximately the ore Gold year was into well Bar carbonaceous the transition issues to as down primarily production Gold at South the quarter equivalent was the driven XX% decrease experienced year. earlier year-over-year. due the

Jose of issues mine, further production line San mill Shaver and cover to at XX% due COVID year-over-year off these Bill in the with At will in the down was detail. operations first quarter XXXX. approximately the

prior this So, Gold well were the standpoint both of prices in at the have first quarter slightly lower the roughly revenue XXXX, $X,XXX were realized cost the rebounded into and quarter for far. and of but to gold the level year XXXX fourth prices appears so year. unchanged

we steadily Looking the production reflect largely cash issues year, I reflecting at reported Fox $X,XXX with the to mine, XXXX, both costs significant and year. South sustaining at costs costs increased since have but sustaining Complex per bringing production previously. owned cost All-in to the which Bar in the costs lower prior at all-in the costs, noted cost were year of XXX% lower due Bar both decreased Gold Jose and improvement ounce, consistent at prior our into compared noted San At -- operations at and cash the incrementally prior in Nevada. Gold over the

$XX Finally, looking to at million at of the and of equivalent $XX million beginning stood the compared at balance treasury, year. the our at end cash year, our the

all shares Stellantis owned Nuton, offering high balance the details component news within recent Copper from a The just past at I'll turn Now, McEwen three primary summarized encapsulate transactions Rio working included are level. try in sheet and a impacts so by the basis. The with our the weeks. Mining. which McEwen shares, how go-forward and transaction to shares attention it are to secondary capital These and directly McEwen Tinto transactions the Copper release, I'll it of the of on a an of and closed our

look -- Mining, valued price receives at nearly in has share $XX million. doubled price standpoint June which if initial investments of as McEwen the and The the from at August are company, transactions it these McEwen standalone year. Copper McEwen a per the ARSXX we billion. Copper did point point transactions Essentially, these last receives approximately amount $XX we it of when

these to Following transactions, of of approximately Copper reduces from McEwen McEwen Mining's end XX% ownership XX.X% today. the at XXXX

of we the to which costs intend proceeds terms million secured $XX the company proceeds our use Sprott $XX of going million, million interest Lending, debt In to to forward. from the total $XX debt to will retire McEwen reduce to saving significant Mining, the

on raising hand capital. funds now our within operation and Fenix of into treasury, we we build enhanced that believe additional in have project X the next Mexico the With Phase year without bring to production the

As into approximately of of far With year McEwen over equal is to as the and Blue equivalent measures, this Swap XXXX, Chip about financing rate, to is outline. positioned the exchange $XXX is well remainder less completed, treasury, to for and round million. as drilling is ARSXX Michael rate, execute this million. $XX the program a this significant development Copper Using such which will amount. McEwen a At Copper's billion official official its

been of in So, complete the has an on these IPO transactions, eliminated. based half urgency to the first XXXX

Shaver. I'll So, the over Bill to with turn that, presentation

William Shaver

Good Perry. shareholders. morning, much, very you Thank

This like leave with to regard our to I'd morning, messages three with you operations.

improvement the operations. has plant new moved for year XXXX. full in stages of be mentioned, the At transitioned are of the have operations being production are that XXXX. Complex we purchased early two ounce -- on will XXXX, of contractor in contractor pit, lower milling Bar XXXX. transitioned a of and produce higher in per successfully in -- will And improving output these the we is Fenix fully last months working which approximately operations, and to Gold cash significant site on at the will XX% are the and from fronts, South operations And we in new operations which XXXX. the $X,XXX the first most have and costs mining plant a lastly, We we production, we the have Bar, approximately have based planning moved and improved at that in Gold Fox project, which as Perry both Cash at to costs to result ore

The last QX all a XXXX quarter. these operations hard quarter making work was our helped challenging, us mining hurdles, overcome reasonable of by but

operations, making progress improving also so in and future. production the XXXX costs are outcomes into we and and We obtain predictable can stabilizing gold in for

far, track. this year, so And are we on

with and rest the of incidents for operations. no safety the Gold we XXXX low Fox March the injuries. accident in And we the passed at XXXX, without our recently lost-time in January lost-time two lost-time had years Complex, year, front, On And severity we free. full At El three Gallo were at lost-time a operated for have a we year injury. Bar, in

-- were On the front, recorded in XXXX. no we environmental events environmental there

turn production hampered to gold availability issues, resulted I'll up build At a throughput. which to by of and year, last had year. our represents stockpile Fox This operations. over very it our an in time, have resulted mill, excellent milling to same value $XX which the significant million year-end. XXX,XXX of mine us Now, had At approximately the continued after with tonnes the a year challenging in we recovery. a each missing Complex, the This which our

to the prove the note, the needs processing followed the This do lowers the shipped to ore On of of in a crushing at -- it have a test the we now being This mill. mine was work concept undertaken ore. this following that year. program was decision mill to amount last prior to positive

mill for for of the therefore throughput it remainder will We be $XXX plant meet looking and to cash. get call our plant production year allow size the to place. have through at transforming This into in and Froome the cash at improving will planned our we the XXXX when are able we stockpile will mill, the ounce. which been to we budgeted that contract anticipate QX commissioned year into have per of the successfully have get tonnage of We the in forward crushing April, us early of gold Fox reduce we the

the was At and also successfully issues the our now successfully to is of contractor the preg-robbing Notwithstanding of at with in happy parting contractor start ways mining in and plan of ore these Gold we issues, in XXXX QX. Nevada, we our with Bar challenging production. QX, have tell our mine main a are full transitioned new we to mine to production you transitioned who

production Bar this year now forward this from to to looking in in South We Gold on also completed of budget full the a has Gold two pit for months the year and and move first Bar are pit. the from operations. we're Gold production been good

develop project project Mexico, have approach at manner the timely At an in a get in and Fenix capital in able lower production to significantly to we been a cost. the Fenix

grade plant, We local will day this, a operation. acquired accomplish which which operated has reprocess X,XXX of tonne. tonne the heap X.X a To grams a gold processing leach pad, mining used per we per at recently have

will the moved with will have the to this circuit. site. We reduce cyclones the we And present only few the use plant in will that and plant to throughput gold and a leaching are required, of the the year our this move late initially the minor operating we increase permits hope Gallo our There plant to this the XX% to that changes circuit, $XX have portion for but early production assemble This the plant we of as outputs. Fenix, and million required this or are El grinding approximately potential in into recovery XXXX. CapEx give prove

thank for update an you on And our much. I to it turn that, Azules Los over now project. very Michael I'll world-class With

Michael Meding

you Bill. so Thank much,

our and Argentina. our competence will on year then shareholders, enhanced organizational what in importance study drilling, financing new our ESG in and and highlight strategic last and our mention of did I we exploration work, quickly concerning XXXX finally and report

an option XX, by in Kennecott McEwen XX, million agreement Creek shares million second a the Copper $XX by Fiat Rio for a on investment increased December $XX Exploration, of that an investment of Argentina, billion offering, seven on million. of Tinto XXXX, with by XXXX, XX% a Venture, of years. $XX McEwen ARSXX over million Elder Tinto, earn $XX followed another acquire Subsequent October of XX, by to of Copper to potential completed announced including by Rio we subsidiary $XX.X August million for Chrysler subsidiary investment Nuton, of closing a the to investment investing and Nuton Stellantis,

on proprietary and related the unlock venture to Nuton to company, economically of a is the copper copper sulfide material. have biggest recoveries oxide and heap Azules almost resources portfolio second of XX potential significant technical technologies new project. Tinto resources and years development. innovative an of the McEwen transitional achieve Copper mining and higher world's the at Those core, Now, bringing with the and capabilities product copper and Los is Rio financial leach research

Lancia, time green is on the a automotive invested Aires Ram, an Alfa in customers copper Companies hand, the with energy and XXX,XXX in paradigm the Cordoba, a and about about first to present downstream with my to cars and Buenos of transition. that Stellantis And is expression automakers. has yearly, the produces knowledge, Stellantis, is for Partnering Argentina, of Citroen, produces other one shift others. world's Stellantis mobility of Fiat, Argentina. an Vauxhall Chrysler, copper. is Romeo, leading it's company. It copper mineral Opel, Peugeot, as realize And X,XXX Jeep, critical iconic has in employees and a brands company Dodge, manufacturing Maserati, in such

transactions, own those to XX.X% of now Copper. Nuton ownership and McEwen XX%. Stellantis McEwen each is Mining's approximately Subsequent

feasibility density Los work. I'm going XXXX A focused the Drilling engineering to million drilling, drill about talk the in classification was at to measured $XX.X depth and this to the advance and on study extensions indicated south the site copper which Now better, resource and exploration in mineral of design and to to drilling, copper define resource increasing project Mining project copper and exploration, work. provide Azules (ph) and XXXX the vast total to resource has data hole copper as incurred the ranked of largest design mine Intelligence north, geotechnical of to support and ninth already deposit, for by testing size. hydrological payback to pit the potential [step-out] project metallurgical, undeveloped upgrade

the the on in there southern feet, In to date, stopped we over are October rigs that XX,XXX and increase consistent and currently six more winter drilled were meters, XXXX, five Since for XXXX, results holes in site restarted to geological XXX,XXX see drill October went XXXX have and in ongoing. and were January we XX generally in drilling started confidence to drill it with May our model. From XXXX. when is early added hemisphere, then in approximately drill

of delineation potential include interval slated meters of our the during of Beyond on and QX this which and assay our January including demonstrates copper robust results, now XXXX year. for early information to published metallurgical an updated and PEA in copper, March the all X.XX% north. northern meters deposits is this drilling, results the obtained year, The recently testing step-out X.XX% available published exploration publishing we X,XXX until of XXX will with

lower We a de The copper initially carbon which content use mine its project that a production heap allow is energy, electro risking are complexity. low in an much design developing solvent sensitive scenario for more to footprint and environmentally water This to as and the for produce winning Azules and consumption Los lower carbon cathodes. processes will footprint, and open leachable pit makes a copper attractiveness. financial improves of to scenario is renewable due facility with leach, due extraction project

PEA scenario, a very a heap economic are we leaching to leaching promising. technology, technology, without considers are base test as Nuton initial results could be excited interesting case which using While and able the their upside to represent

mining on of stage of is it application submitting to the exploitation to authorities environmental and We San report are for the permit XXXX. the underway in in Juan for drafting authorities. filing track the preparation for the the April The

share project maximum above meters into approximately accelerate feet a which with about a the from to from will means site. access road site mining in the more new Altar development roads, XX,XXX or altitude to Resources. the Pachon that major X,XXX which having a that have of In advance sea Los made Aldebaran of level, projects, the other Azules almost of we at The low goes low access including XXXX, completion a of and with was year-round than part El altitude feet Glencore second we importance now X,XXX the

roads, lowering allow upgraded XX significant roads, to former for transports. improvement, to a existing site, we logistics quickening articulated addition, get to the In costs and exploration wheelers the

having XXXX. in Argentina members With our set organization, in where XXX regards to San majority management years up experience With over strong experienced of Juan, was project and the located. team total Tier One operations, team is in the management of a in Argentina a

our cement report up to further project To in have there. ongoing office that receive community Calingasta is Juan happy located, are even And where support I relations operating local the our community can we opened to with our closer relations with communities, are in. the to we develop we in affairs San project

I This Thank over for it Copper. now concludes will Rob. report my and your turn McEwen on attention back you to

Rob McEwen

Thanks, Michael.

McEwen our scraping we But and that that feasible. Los was like the in Azules -- a when not along price to price problem our I've small. of order say lows we the was share Azules, attractive treasury felt lot financing always our was was or The do I'd tremendous a in needed possibly Los was bottom just advance trying was at to of historic Mining. a XXXX, asset to money. And for thought share

financing and its separately. advance we successful manufacturer create world. and shareholder fourth in to surface believe the the decided world value automobile value. McEwen and have surfacing it as in to build value and the was attracted largest a in largest company for it Azules way mining Mining second Los and the we to We've Copper And the been access best fund allow McEwen the So, I

we when of very confirming this, Los is larger both world extensive built. projects So, and likely a copper just diligence the the on on one due very Azules, mines large, do did copper that will attractive have that be in it

we of million and of completed we've $XX.XX. million months a $XX at $XX. an now And So, financing seven last of approximately later, average $XX ARSXX price August, at an share larger even billion raised price

Los million. royalty McEwen X.XX% value that this implied And from a that's of increased the property. to on $XXX result, the excluding $XXX has Azules holds Mining As million

share. $X.XX McEwen in So, now basis, Los is behind Mining, Azules. $X mid-XXXX, was every of a value share a on fully a around our price Back share from of diluted

of the Looking performing lower to Gold our with growth potential strip, the can costs to our double anywhere to our where be we're we and ahead, we're that $XXX and XXX,XXX reduce Complex production to see winter ounce; and XX%. an ounce, with better looking XXX,XXX Complex grade its XX% new the between they higher frustrate XX% to have ounces, from doesn't representing increasing looking at we'll a in is production by better further assuming than Fox operations keeping $X,XXX much at the plans, an a production at below than deposit Fox XX% and XX%; and gold in increasing equivalent past, at increase prospects an we're Bar, mining cost around

progress share. and a of is gold with at ounce. is group a its continuing Mining Azules think get and that trades see going $X along for to the group our that exceed our discount Mining and do between and when And we behind up $XX a somewhere equivalent project, McEwen value I increase value McEwen value that, significant I to economic to peer peer Los to objective

got wondering the of be There how might number. I sum you are it's parts. the and And really -- that

province million last We then powered. we're Argentina, Azules either a -- we a of and cap have one purchased one the closer a $X.X about a at other and projects copper in higher grade resource on April same have the billion. altitude the infrastructure, market yet, larger those resources, than Los of they the value roads has has copper two was $XXX properties, there. in other Based a to lower in compared published two at And to are

$XXX we million Los could are I think and somewhere the a Azules. you between for $X for -- position So, see in that value to billion be

Creek, X.XX% McEwen exploration royalties, on assets project, gold royalties Rio's Los been earlier heard optioned Elder on trading by non-producing Coppers, and below -- our you which group. arm other Copper, well our Azules, we peer We has are then Kennecott copper have have X.XX% five that

So, front. I push think position to good there's room grow. in And a think on forward we're of to quite bit I really that

it that our interest, our investment development to asset. of McEwen increased we brought of into and money -- The program. Mining's in interest recently reduced ownership our value fund it McEwen And although of Mexico have us exploration the debt expand Mining further Copper, the the down to in reduce allowed McEwen significantly put that in treasury it our Fox Complex, and

-- So, for if are Copper, the shares to any buying exposure now, Mining of is Copper. IPO of you McEwen wait in through best right McEwen McEwen interested getting the it of to the do or way

Thank let's for open the you. answers. and Operator, session questions

Operator

your comes of Global from Alliance Jake Partners. Instructions] from the question first Certainly. line [Operator And Sekelsky

Your line is open.

Jake Sekelsky

and Rob Hey, Perry.

Rob McEwen

Jake. Hi,

Jake Sekelsky

Thanks taking my question. for

Rob McEwen

ahead. Go

Jake Sekelsky

mentioned improvements to seen So, Can able on color contract QX. switch, just at you starting with them that you're the making us and Gold Bar, you've give all? the quantify since during you any change if of

Rob McEwen

Sure. question. I'll ask that Bill to address

William Shaver

improvement. much very Yes, the question. for I to Thanks there's aspects two guess, the

see this different first has the that that, The very to from nice And which the we guess, my with that perspective have from a to significantly not and And site's a their also professional complicated. is brought relationship arrangement performance, along been contractually, I is perspective. aspect contractual has with relationship, group.

we place now the a on the months were talking in as up from three And a which them they is short new Gold ramped transitioned totally and they until to contract And we approximately time South site. started project, have they time, had first are successfully a Bar operation. in mining relatively

it's a a tonnes of it about the hill in was full-scale there waste. desert. and month of middle tonnes operation, were producing mining and a And month XXX,XXX the XXX,XXX of now, ago, year a ore you out If big a between XXX,XXX

smooth that We've and it's So, this had they've guess, I winter the rain. and winter, the decade perspective early Nevada transition. of had the from in fall toughest in snow relatively a been

road the better months on. right I goes the that on first two as seeing budget, the me challenges performance think with where of and seeing basically those year the So, tells we're success we're on to

the have expanding, that more the As just of because small and in the comfortable workspace right we also starting. the it's a now contractor fact that pit, as becomes pits very amount of we're because

hope I answers the that question.

Jake Sekelsky

That's helpful. I'm take be McEwen wondering thinking with [indiscernible] increased would and Los a And a longer at run. bit changed cash helpful. approach. your you kind more looking this from timeline just on then, Azules, has thoughts at flexibility the Any obviously, here if the a of market just looking Obviously, position think IPO recent cash financing have Copper, I and

Rob McEwen

Sure, Jake.

urgency -- longer public this back well, the we'd financing With And year. as the go as updated the to it is financing We mentioned, I'll bit. no the the a PEA of a first basis had there. going completed, thought use do and the complete you for half in with financing now

have this marketplace. in or into but think next later it year, so, we'll a of ability early buoyant to the year And financing more

Jake Sekelsky

Got it.

That That's again. makes my sense. all Thanks Okay. end. on

Rob McEwen

you. Thank

Operator

Wainwright. of from the line next H.C. comes Heiko Your question Ihle from

open. is line Your

Heiko Ihle

Hey, Rob. Thanks taking for my questions.

Rob McEwen

ahead. Go Heiko. Hi,

Heiko Ihle

[indiscernible] last week.

have South. I What be other mean, extrapolated efficiencies really those kind of you you you improve there. production? our of much or Gold can even is at you think brought primary efficiencies Bar importantly, them people any new got How they to to already contractor of questions can do more the do more think One see? question And with sites?

Rob McEwen

could again, you in? once jump Bill,

William Shaver

Yes.

to we the careful upside what And one will operations, have potential bit of completely ramp the -- that close once be relatively we very a full level. capability and I XX with months. to that don't pit is. figured have up is between have exactly the things the now, up Gold Bar to this production will It's of we're guess we've life short. think XX I out is we South which get to we to So, ability is at a higher that

have want we production is make the pit. we maximize make leach the to be run underway we -- we we optimize get sure summer, expand necessarily operation. and from optimize also pad make completed in out the And operation Gold of also is recoveries So, very sure that not will -- the the at right the Bar, to a sometime that we and that the our time, in need this manner that to sure now to getting year, efficient At September. late same the work August,

be on are factors, guess, those far, be that the on So recovery production. absolutely will of is we're thing we on higher budget I as mentioned clear terms in we're study. will now, the our it's And what some right from indications the But, -- ore, and in so of than are I the have early schedule recovery earlier, not what this although complicating

So, looking managing to future. bit can some Bar It's a Gold out I exploration I of And know Bar of where after ensure think cash question South. happen We that need good our little of do for all operating work. think, we're a of we going we're next of costs. the to all Gold

Rob McEwen

sites -- Heiko, what using don't mine them this go to this think in applying is be I this terms sites, point. they'll at at of at we'll specific we're contractor other doing and other

Heiko Ihle

nonetheless. the meant, No, I didn't techniques. mean physically more helpful move was them over. But of that I

at million, a still My $XXX out was puts debt, million that's next of million, going on rest Copper or still right question cap, the looking $XXX XX% McEwen net of your be million $XXX you're whatever. $XXX company. million which and pointing market there, Including you to own $XXX the

describing job touch I I'd have going terrific the to for some call, the that and you that think, like all one people spent, some how earlier you. more on I company. I thank think color on of on overlap, a, to the priorities to thing how just a for senior The to at time expect see did unlocking I plan this are management is the priorities be you please? time there's assume team least You

Rob McEwen

Michael on assembling from done has oversight handling Los at we Azules. a what's next run property, number Creek, Rio be Toronto Kennecott -- financing being are on the wonderful which management other job a and years. which of copper very of much the run program seasoned in the then, Copper largely will And team, McEwen have also of Argentinian arm over Elder by is Tinto's the going

could and Michael, perhaps their backgrounds? assembled talk you've team the you about

Michael Meding

Yes, sure, No problem. Rob.

a is said, set has local Rob what we management team. that So, up

in the with I spent Argentina, or my in about in their seven San financing for their of -- years responsible we Barrick for time. have I America and have in being about XX Juan Argentina. in myself So, XX operations years of assets Latin Argentina. majority all in

XX American, we And directly years natural who's from Juan next team. person the manager, resources Two also to who XX in but years human resources. the San management legal then, Then, Tier in more our Argentina One, -- connected our line and relocated be project have experience to with with with operations Tier than a of director, in to Barrick of

manager, health and and safety with experience (ph) of Tier [XX] years Barrick. operations environmental Our in One

a very, different the functions, engineering bringing is to construction have very that where we and feasibility, all strong from is operation. Through and over team this project it capable of Rob? currently

Rob McEwen

Yes.

your... So, that Heiko, does covers

Heiko Ihle

it. Appreciate it Thank very you Yes, does. much.

Rob McEwen

you. Thank

Operator

of Mike line next question from comes the Kozak Cantor And from your Fitzgerald.

is open. line Your

Mike Kozak

for hosting Thanks everybody. afternoon, of from the couple me. questions A good call. Yes,

one, unplanned relied your -- guidance press press last morning. be put XXXX your guidance omission? cost should from out in that absent that guidance previous Or should an December longer release year. I just that ASIC But and First upon? Was as XXXX your this I interpret was cash XX you cash cost release noticeably no

Rob McEwen

say, sorry omission. an I'm to

Mike Kozak

Okay.

say just can the All guidance. Good. cost reiterate you right. So,

from Los Second which delay mentioned you QX, one, Azules -- small PEA QX yes, and expected so that in now is Michael the before. at is

a the seem like that the constantly. going much almost clear be iterations right, of testing, changing geotech to plan there mine how life drilling, exploration few on on new work visit met weeks the of site it's is just drilling, abundantly Now ago,

much pushing economics PEA So, that to the able otherwise wouldn't what my that could QX, extra to data and is QX the from be how PEA you question by been that into project able have to presumably there? jam of improve -- might type you

Rob McEwen

number I all runs case the of just consultants. finalizing was just and we're deciding of going optimization done to and is board the across a on say We've agreement on our base getting that base one aspect case.

add you do to want Mike, information? further

Michael Meding

we going around drilling we we requires on okay, beginning mentioned, later What still work this to next interesting a we further we from think by now the And the -- we more the on over year end geos gives the because in financing we're mineral planning. just update to estimate of before, run especially We for, QX. wanted of the financial said, additional going works can will [geostatisians] of Rob we're to that are the a weeks do (ph) to as this mine the complete well, the couple us some work include. look optimization the month, Yes. Rob the publish month Sure. some end this publishing of going said looked had work of market. at to that to And depending to PEA framework the information that of resource headroom was that obtained complete buoyant we PEA, of of it that that beginning while think,

the that So, possible we time best we the we to this have PEA. sure want get for make outcome

that shareholders. think owe I we to our

Mike Kozak

Maybe if would sense. there. I perfect then the you you drilling saying able briefly. enable so I'm assume to that be was exploration can anyway. trucks you that if that to to color. it camp? XX-wheeler that Thanks now upgraded or this you for possible now I will follow-up. makes you year-round? winterize mentioned wanted Can is but you to that road, if going on won't, you've not just in get No, one on you that that now touched ask But And

Michael Meding

Yes.

had to to to as prior access And And and we through site. on us bring road, through So, road. site. as you in the site for the that, of is and we press that we said, critical exploration southern Rob road trailers had mentioned is upgraded the have the release, access highlighted to top one exploration before, things of tractor

of Now a potential four-season fixed camp winter efficiently. is means true now more this with possible a camp, that installations, a much construction

then evaluating solution but currently end efficient season, to and by study is winter we're of about So, able drilling this of also feasibility to complete this cost go and the decide be XXXX. what could is camp, should think we from forward and view construct most program the to required we a study that what point and effective for look

Mike Kozak

good. Very Thanks. helpful. Very That's all Okay. me. from

Rob McEwen

Thanks, Mike.

Operator

Very comes of question line Tumazos John from Tumazos Independent Research. the next Your John from

Your line is open.

John Tumazos

on us or all and oxide underground the progress. mentioned press was meters mill In Thank on you hole deep whether Los you much, XX you ores? was? leach how tell AZXXXXX very it and And that your release, open congratulations Could Azules. pit of X.XX% copper

Rob McEwen

cover Mike, that care to question?

Michael Meding

is where press the copper where can release you in section The Sure. our see is. mineralization

to mostly then into goes best open So, is primary. XXXX primary, the and exploration XXX, up. The the that is secondary, one, mostly and is

John Tumazos

or ore Is primary leach mill ore?

Michael Meding

Nuton's Primary [indiscernible] either or technology or would a mill ore heap as be such technology. technology using leaching

John Tumazos

old So, heap fashioned not leech? a an be it it's tomorrow might but leech,

Michael Meding

No.

Rob McEwen

mill. is today. it's we'll thinking that in Today, Yes. But leach metals, the there be -- heap It would advances we're that a recovering taking hoping alternative. see mill a place

John Tumazos

that you helping just release? clarifying quickly. from and that the omitted get was cost for you it repeat Thank I me. XXXX Could the guidance didn't

Stefan Spears

December, the cash Fox line. and cash sustaining. so Stefan Spears at a Yes, $X,XXX sustaining $X,XXX; guided costs guided Jose $X,XXX, of consolidated cash and basis, $X,XXX so costs cash $X,XXX we that's of in sustaining; $X,XXX; $X,XXX on all-in Bar, we It's John. of owned sustaining Hi, all-in operations all-in was of cost all-in cost XXX% San and and $X,XXX on Gold

John Tumazos

you El to mill might monthly late begin XXXX at month XXXX ramp rate in could Thank and at some Gallo the give what the what production the be? early that indication you. might or production as and Concerning or Stock,

Rob McEwen

Bill, address question? could you that

William Shaver

Yes.

say, So, XXXX. first anticipate And quarter the to that tonnes per with tonnes we the is X,XXX have X,XXX around would regard to of we that running, plant in Fenix, day somewhere day. a

in what the next able first start the feverishly been this quarter there, in to the construct to couple from then the the be do portal the sometime close production of of to we to drilling year is in the first or and last -- and the Fox that be late quarter to regard quarter in of ore hope surface have ramp we relatively second with last year months. And of that's over

ramp less XXX the to which I that deep. XXX as is driving -- also but possibility than to of is of ore that's where to ore also guess, meters we some in three close know probably course, towards quite East to deep towards you develop. basically take will heading ore with is have down saying surface, West deposit And something from well, we'll surface. a Stock West, what relatively And Stock to I'm close then, months there better Stock very the anywhere continue the

John Tumazos

ask gold output Maybe El the follow-up. could month much or the be much that still per recoveries? from could to I gold to XXXX if in per Gallo gold the you're too given what Bill, Concerning be X,XXX the and day, per grades grade. it's tonnes finalize since infilling at quarter how you Stock would

William Shaver

With same as for Fox. regard planning be to would production XXXX at able Fox, we at we the rate we are to anticipate that continue

truth, I times So of (ph)... don't range that's but it's And XX about [XXX, per somewhere XX] you ounces month. number El the the to tell remember Gallo, in X,XXX the from production

Unidentified Company Representative

X,XXX month? a

William Shaver

per Fenix ounces month X,XXX from about project. it's Yes,

John Tumazos

[indiscernible]

William Shaver

Yes.

very basically something be in perspective, to short will relatively -- payback a capital from down we've generation worried the million. it'll So, Fenix good a period, a range because $XX cost of very, cash the with project

John Tumazos

Thank all Bill. for explanations, you and Michael those

William Shaver

No problem.

Michael Meding

Pleasure.

Rob McEwen

You're welcome, John.

Operator

Powers next a comes Your investor. question from private the from Bill line of

Your line open. is

Unidentified Analyst

for be Stock. you conference that were to drilling know Yes. Thanks today. production is going I from guess of guess, and Froome? Froome drive Or you're down where do at continue recent produced planning along and a to a it call the question point producing this ore. sounds on the shaft bit this is such quite I Bill's great with planning But like go to is I to a comments then start forward?

William Shaver

that's good question. So really a

some that, not drilling at a we'll of do this and Stock, Grey amount of just in be but at couple substantial Stock of year will a but your fact, of XXX,XXX projects, meters completed for possibly other drilling Stock. Fox interest, So, with at at

at conceptually least So, continue XXXX. point, first this at quarter the to Froome will of

be of out ore at transition the we're where at so, across we mining And Froome. Stock one will will before to Stock be

we tonnage tonnage from the increase producing. are which to hope Complex, -- Fox we the where increase total of XXXX coal the that's increase amount in so, And will coming that the

However, resources the would production all period a a up. that ramped together thousand But that at what ounces plans you coal venture get put we time. of like, be it in part mine I because tell look I this in once that can't of point, will couple it we haven't might of for month

Unidentified Analyst

Okay.

it of keeps I mean, would so, sounds there's its a And to would that, that still extended date. do still there. amount sounds be getting it It is bit planning idea like you're exploration fair exploration fair as you like a -- of as Froome the far terminal

made so, the additional plans the Or like -- mill to ore? need your is it of be as that's right to this to bottleneck of adjustments now? would throughput kind increased this ore accommodate -- a since to this in accommodate And would for sounds that year

William Shaver

is plan on That's part there circuit. the that, crush put basically we're going the correct. directly mill -- The X mine ball into bottleneck. the and lifted leaching mill of ore at because it has the been haul a significantly that and the pressure down Crushing the to millimeters, has forward across basically to

figure have determine at is is from a also grinding? at of is be. of Will long-term the of our something kind mill what go configuration at of task what the then so Fox. this Froome, a implement hold larger take of innovative that plant, some future ball to that that to front to will mill Stock year present advantage might time, to have will we that on such actually of solution the but do crushing to can only year the but long-term Grey tower that also Stock, we're we -- ore not part view as out what to do this at course and other But site we end as mill, What Or the well? we

Unidentified Analyst

question. last one And Okay.

operate I in or year? on as and a back or to a Hochschild and -- production planning to last get -- As getting changes in to San make drop off far kind back there you up, this is of track What it at Jose, are Hochschild production was planning level know year. lower

Stefan Spears

Sure.

So, it's speaking. Stefan

early in And significantly as Obviously, relative well So, issues in they're to repeated lower year. cost rebound. production is our not to partner anticipating any XXXX. they a the XXXX should Hochschild projecting of be had last

yes, guiding at If around they're all-in Jose. $X,XXX I I'd you a believe And say Hochschild's overall improvement San guidance, sustaining. so substantial look at

Unidentified Analyst

where Are -- -- this far? production things so guess, you if are rebound, give will something you is that goes do potentially expecting on I they'd dividends? guidance that

Stefan Spears

provide to But we're expecting. something have real ability point. any we certainly It's this the color that don't on at

Unidentified Analyst

Thank Okay. you much. so

Rob McEwen

Thanks, Bill.

Operator

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

Rob McEwen

was a big it year numbers. of So,

losses months, over Mining XX the as past largely done ownership as being of of long a that XX% McEwen large continue the to and consolidation Over the have were the of at at to Azules, in of to that Azules. said, at our impact expect function we is Los adverse on occur work expect Los And it that we and expenditures, we as the all the end Perry Los which earnings. of study consolidate 'XX. the feasibility has Azules an up But will

at next have properties loss. our year large also that and will year large probably The that contributed are We profit. the program not exploration a be as to other this operating mines generating

-- So cost we're improved per production ounce. and increased and at looking an

but to of assets we value the think I'm the assets play in our continue copper valuation. metal a catching McEwen group very all, large surpass up peer -- I will and the role at discounting hope not do precious to building play Mining,

our forward operator. thank With next that, attending look I'd everyone for like you, Thank exploration updates. to to and

Operator

today's call. for participation. your Thank conference you concludes This

You may now disconnect.

McEwen Mining (MUX) 14 Mar 232022 Q4 Earnings call transcript