Earnings call transcript Q2 2023

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Operator

Hello, ladies and gentlemen. Welcome to McEwen Mining's Q2 2023 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; Carmen Diges, General Counsel and Secretary; Jeff Chan, Vice President of Finance.

After the speaker's 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

Rob McEwen

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

Today, of our year. QX discussing expectations for the financial as of as be half in the balance year first and I results the our this well the operating will and of highlights

members answer of are on management release these your press senior morning Our matters in line to of discusses this greater questions. detail, and the

a gold many for weak you had aware, silver As start our year. and of the assets are

While a McEwan second better the and Copper's our to running activities QX Los at for better. delivered Azules rapid say half we're of project results mines pleased than outlook at in the QX pace. year I'm the significantly that is

in share in to XX% first The San deliver production XX% costs with guidance. be Jose a of generated passed to quarter that's than on will gross deliver highlights expected the guidance, performance and it quarter to on stronger but its higher million quarter. $X this is was QX like One, is Fox the to too second you per expected profits QX, basis. ounce our I'd cost the Complex - much on But and of

costs economic based updated mining. June, strip outlook, long in preliminary lower ore. displays the sensitive production ratio increasing result, and and the its significantly released economics, It a environmentally approach on again, with and we McEwen Bar, Gold a better processing At grade a a are mining be mining Copper looking assessment. life, low an to project robust is as of with a rate higher we'll

Gold lost Fox XX% to was our our we the the of as by updated in like Copper. $XX in reducing million. and it. of complete we all by times XX% order No other We way debt exploration sheet PEA. and work balance at improved our sites at Bar. And we've And owned subsidiary, the heavily consolidate said, to I our financially, McEwen financials invested Safety

liquid million, investments. assets million our end, So were consolidated an additional $XX with our $XX quarter in

was reflecting net quarter capital moving Los $XX heavy again, and was half, million, the working Our Azules and in project our in in very loss the $XX $XX the investment forward. the million, first million consolidated

we've based a Azules during on value did. the And increased million significantly $XXX period, of implied financing this last now of Los the it about value has we

and extended Our is start the of life Phoenix exploration years. base construction provide Fox life. later to confidence a has Mexico, year mine a in in investment expected project see by given this being year at a us resource X to And mine X and

like In which our beginning Gold's And XX%, X.X%, performance be terms development. of early X.X%. the will is AI to down up It's present forward mining the many we the as XX% X%, the up under GDX, that I the appears of is day, in one share since And down compares Dow's those we're outperformed. have that against of say other U.S. year the world the GDXJ, the generative generative AI X%. largely that industries And embracing NASDAQ to dollars. just driven go by has up up

the to conference for questions. call open I'd like now

Operator

Jake first Selesky Global. from [Operator Instructions] line the question Your of comes with Alliance

Your line is open.

Jake Sekelsky

thanks for my question. Rob, Hi taking

Rob McEwen

Jake. Thanks

Jake Sekelsky

Complex. the Fox off just starting at So

able and the for heading You handle half might on QX that second get Are a this quantify trying to mentioned at costs all? tick grades in how to impact next year. QX I'm you into of should year. a that just bit higher

Rob McEwen

Bill, would you to like answer that?

William Shaver

closer is to half to per second be we grade Yes, going that sure. of Yes, tonne. the year Jake, grams expect the X in the

year. original budget closer that goes for The this back tonne. per was mine grams X second our to And grade to quarter, plan the and

higher is the - more little plan grade we're grams first the week bit is tonne. like with into X it higher grade. right half and the the per we're this lower year And to us original now a in grade of a grade had the the stock So in,

so the So significant by will move see a grade that we'll increase, our down and costs amount.

And so the right. finish exactly following our guidance we'll almost year

was The less day the upside, tonnes quarter. tonnes I is months to for per quarter. run significantly has record day. that actually X,XXX the would more some the say, the per X,XXX and in around We fact second May mill better had of June closer or

So a we the we're slightly reason through if predictable, then the in if it half. have we've better it to tonnage stays to we'll there's and the fact no the that it's will, think second won't increase where think grade upside, And mill. - been there's able be

Jake Sekelsky

helpful. over there. switch need over to just to And for hit investments switching there the the Los that be Any and are capitalizing to to that's color see timing Azules. to the That's And from Okay. on the study, that of maybe them. the good just specifics milestones left expensing feasibility work report

Rob McEwen

Michael?

Michael Meding

Sure.

So we slate XXXX. of the beginning the to of XXXX, study end of delivery the feasibility

that environmental well our We the I is [Semel say, one to Semel also working have in helped would us and assessment has engineering] consultants us PEA and impact as important main are with most delivering report. confirmed the [indiscernible] the [indiscernible]. as mainly the was delivery,

about XX,XXX is under the well meters. We to that drill So need way.

required permits. to the We rigs already to get to secured level drilling that. able two another detail. get program that ensure import to drills to we and X another bought through to able and feasibility XX be own We're get do the be We looking two of all can information drill have to

are we optimistic very going forward. think I So

environmental to the to I'm like Perry, feasibility sure capitalization you criteria, whether with would issues study. especially not regards additional permanent plus give insights? Now the the

Perry Ing

Yes.

IFRS, lot whereas are a And Mining McEwen a would under an to we I have context, of if reporter. at just we still accurate GAAP that's us point, obviously McEwen expensing have that's would copper actually costs. if Now, And being those report capitalize to criteria result think IFRS The McEwen statement, for costs. I U.S. it could looser, assuming a a continue those mean, where IPO Michael. under some situation

a just unique the differences policies. in that's accounting So of feature

Jake Sekelsky

it. Got

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

Rob McEwen

Thanks Jake.

Operator

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

Your line is open.

Rob McEwen

Heiko Hello

Heiko Ihle

Sorry, all hear right? you I can was I me unmute. hope

Rob McEwen

and clear. Loud

Heiko Ihle

be Excellent. me to Argentina, between Canada, or able labor there guess, some differences approximation Nevada by it, Would with you've meaningful X months I what asset. XX pretty the the you seen call Timmins in rather please? provide from are past, of increases I and assume your or cost

Rob McEwen

William, would you that? into to like venture

William Shaver

And terms in think not costs actually And But X% that answer. range that's labor guess seeing. somewhere I'm prepared I Canada a to is around I X%. of fuel we're would cost say probably would are a we in totally anticipated our of I price higher question I or Yes. the we see our guess cost than in XX%. material

there's I terms And being some and and which cyanide. there's other, I have grinding of to also consumables to So some seem positives I there. steel extent we're think that think guess, seeing, in balls not some smoothed out

wrong. maybe increase So you think than year-over-year think I say But I'd higher - say been XX% cost to if around had it's basis, what that. I you be little or bit a has if use XX%, wouldn't a on I the

Heiko Ihle

Bar a at Moving on little drilling bit. to Gold

the release, there. your the per nearby resources for of is second As your on expiration year half the

if cedar talking in operating more is there two the the about you half, correct. second You're And were halt. drills

Now more exactly geologists ore you do do that's type will what think your the body? less the telling to same that Are you ore. or of

is the What exactly would Or this just is be goal, Thank the same? is else? guess, creating metallurgy So saying. what I'm you. I

William Shaver

Yes.

is program kind threefold. of So of drilling the two goal that or

the will the defining year after. for mine we're First, future, that ore next parameters we meaning relatively year the and in near

carbon - we'll the it's be more to where get carbonaceous there good we mine also of so might into to sure have is doesn't carbon a ore in these that proper strip resources associated ore ratios very and The the that to fashion going the to that segregate make with cases, can -- And that some that able we're the are understanding second of from in a what trying will part ore mine find both to we're to future. be

also kind to would properties some there's north I similar - some of some drilling deeper where we're we're are there of us, exploring that just elephants are perhaps doing away. also that for say of kilometers There's say, that XX about

the focus to to XX program drilling we make we're doing is - of what the next the but sure know months. So XX over

Heiko Ihle

I appreciate Thank it. you, queue. we'll get back all. in

Rob McEwen

Heiko. Thanks

Operator

Your of Powers. from the question Bill Instructions] [Operator next comes line

open. is Your line

Unidentified Analyst

stockpile or a planning that I just per year? setting guess reduced - for be today the Thanks of running? you to able questions. day. morning. rest would this AGM, rate X,XXX there? is that be, that is X,XXX at higher my And I in Canada, still towards to is I move been all day guess, that - capacity you Or you of you question are mill the starting a had of in the I the up QX per mentioned Good the during tons and has tonnes at of And had just guess, couple

William Shaver

Yes.

the meanwhile, very in May is The to question. June for the and about thanks So mill stockpile day. has tonnage close a XXX,XXX still tonnes. But to tonnes X,XXX increased up

the tonnes very terms The spot a So operating in kind the the of operation although increasing through mill, of is the whole we're sweet is mine well. in operation. mining

XX% even though last we've the it with over something up keeping than year. we're process increased So more milling by

we we like mine want the so lower we actual would to the also sweet that mining So optimum the to But spot to stockpile transfer into it at get get cost. keep cash. over running that

milling improve fine, mill. up doing better So throughput continuing yes, through the on and we're where we're the to is try to I say the would mine the keeping

Unidentified Analyst

Thank you that. on Okay.

around promising up that this has And and focus Or a - know that is something later have that there Have been seemed target that for pit the near on? to term? I last year results. guess, some as followed year? elsewhere As you're was if you drilling goes, is Nevada some far exploration Atlas was those or done I -

William Shaver

found portions at of hasn't that property. It one but of and out pit guess, ore The drill as take, as We're talking wall actually XX,XXX. we Atlas in on small focusing turned of may some the amount order our go the I point, at pit something holes hope. other we in we about positive a we're

Unidentified Analyst

Or question of the to could in out was little you've I study would expansion you maybe - But so And for something thank this was - gone moving guess, if the larger study the year. know you a going are that forward Or put that? I be to a this for balance you that still planning - is to ramp, I this Okay. that? update. last my a is of question And late over the be the earlier. morning, guess this, but the asked I - call for you

William Shaver

and So the the yes, at we're mine? now stock ramp talking about

Unidentified Analyst

Yes.

William Shaver

Yes, quarter. plan we ahead. fourth the the the We're to But PEA or late make putting to with working that. basically a pre-feasibility regard project basically an analysis will part analysis, to We're economic be or third point, what at move delineation full the to project. don't drilling go going this an that economic in in early in early calling the guess, speed we ahead. ahead. have on of study do are But that to at together, produce we're which And revised we're I ramp to decision moving doing final quarter we'll of - bit that final

Unidentified Analyst

time so morning. all for this your Thanks much Okay.

Rob McEwen

Thanks Bill.

Operator

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

Rob McEwen

Thank you, operator.

our Azules prices are any having a projects. the and to from the We're we're the the latter we We out in on good come stay news from excited we're markets anticipate they the Complex. our Los capital be this guidance, liquidity, don't both part to about of summer fund coming quite will fall, metal and delivering Fox of from projects development there throughout exploration to we're the - advancing. and coming position Assuming into where and

So quite excited by that.

Thank you have great day. a and much, very

Operator

call. conference today's concludes This

disconnect. may now You

McEwen Mining (MUX) 10 Aug 232023 Q2 Earnings call transcript