Q4 2023 McEwen Mining Inc Earnings Call
Operator: Hello, ladies and gentlemen. Welcome to McEwen Mining's Q4 and year-end 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, Stefan Spears, Vice President, Corporate Development, Michael Meding, Vice President and General Manager of McEwen Copper, Jeff Chan, Vice President, Finance, and Carmen Diges, General Counsel and Secretary. After each speaker's presentation, there will be a question and answer session. If you would like to ask a question during this time, press star followed by the number one on your telephone keypad.
Hello, Ladies and gentlemen, welcome to Mcewen, Mining's Q4, and year end 2023, operating and financial results Conference call present from the company today are Rob Mcewen, Chairman and Chief owner, Harry Inc. Chief Financial Officer, William Schaefer, Chief Operating Officer, Stefan Spears, Vice President corporate development.
Michael <unk>, Vice President and general manager of Mcewen copper Yep can vice President Finance and Carmen D. S General Counsel and Secretary after the speaker's presentation. There will be a question and answer session. If you would like to ask a question. During this time press star followed by the number one on your telephone keypad.
Operator: If you would like to withdraw your question, press star one again. I will now turn the call over to Mr. Rob McEwen, Chief Owner. Please go ahead, sir. Thank you, operator. Good morning, ladies and gentlemen.
If you would like to withdraw your question Press Star One again I will now turn the call over to Mr. Rob Mcewen Chief owner. Please go ahead Sir.
Thank you operator.
Good morning, ladies and gentlemen, and welcome I'm delighted to say, we had a great year not only did our strategy to surface value of Mcewen.
Robert Ross McEwen: I'm delighted to say we had a great year. Not only did our strategy to increase the value of McEwen, McEwen Copper, and its very large copper project, Los Azules, deliver large gains, but also, our gold and silver mines increased production and met guidance and reduced their production cost per ounce closer to industry averages. In addition, our exploration efforts delivered solid gains, and Atlas Azulis, and that's our property in Timmins. And all of this allowed us to report a net income of $54.7 million, or $1.15 per share, versus a net loss of $81.1 million, or $1.71, in 2022.
Copper and its very large copper project losses Atlas delivered large gains, but also our gold and silver mines increased production and met guidance and reduced their production cost per ounce closer to industry averages.
In addition, our exploration efforts delivered solid gains.
And at losses.
And that's our properties in Timmins.
And all of this allowed us to report a net income of $54 7 million or $1 15 per share.
<unk> net loss of $81 1 million or $1 71.
In 2022.
Robert Ross McEwen: These big swings in our bottom line are largely due to our investment in McEwen Copper and its 100% ownership in our massive loss of Zulia's properties. Prior to last October, we owned more than 50% of McEwen Copper. And as a result, McEwen Mining's financials represented the consolidation of its financials with that of McEwen Copper, where we have been spending hundreds of millions of dollars advancing the Los Angeles project first to an updated preliminary economic assessment, which we released in June of last year. And now we're driving towards completing a bankable feasibility study in the first quarter of 2025. In October of last year, we completed our third financing of McEwen Copper.
These big swings in our Bottomline are largely due to our investment in Mcewen copper.
And it is 100% ownership in our massive losses earliest properties.
Prior to last October we own more than 50% of Mcewen copper.
And as a result.
Q and mining's financials rep.
Representing the consolidation of its financials with that of Mcewen copper.
Where we have been spending hundreds of millions of dollars.
Advancing the Lawson Suez project first to an updated preliminary economic assessment, which we released in June of last year.
And now we're driving towards completing a bankable feasibility study in the first quarter of 2025.
In October of last year, we completed our third financing isn't the QM copper.
Robert Ross McEwen: And as a result of that, our ownership dropped below 50% to 48%, and that led to us no longer consolidating the financials of McEwen Copper, and it generated a significant gain, which is reflected in our financials, which was the strategy from the very beginning to maximize value for McEwen. Mining. Now. The biggest.
And as a result of that our ownership dropped below 50% to 48%.
And that led to us no longer consolidating the financials of Mcewen copper.
And it generated a significant gains.
Which is reflected in our financials, which was the strategy from the very beginning to surface value for mcewen.
Mining.
Yeah.
The biggest I think we're trading at a substantial discount and I can see a price that.
Robert Ross McEwen: I think we're trading at a substantial discount, and I can see a price that, although we're trading around $6 a share, and it is biased, we have a management view that we are trading at anywhere between $7.00 and $29.00 a share. So I think there's a lot of room on the upside, and that's driven by. We have basically three sets of assets. And that's the sum of the parts.
Although we're trading around $6 a share.
And it is biased we have a management are skus that were trading.
At anywhere between $7 and $29 a share so.
I think theres a lot of room on the upside and that's driven by <unk>.
We have basically three sets of assets and it's the sum of the parts, we have in the queue and copper, which we own 48% of we have a royalty portfolio.
Robert Ross McEwen: We have McEwen Copper, which we own 48% of. We have a royalty portfolio, and we have our gold and silver assets. So, we have values ranging from $8 to $30 a share.
<unk>.
And we have our gold and silver assets.
So we have values ranging from $8 to $30 a share.
Robert Ross McEwen: You can look at it and say we're trading at a big discount, or we're... There's a lot of upside. Now, It's been a hard couple of years for us as shareholders, from September 18 to the end of August 22, our share price was going in one direction, and that was not the direction I ever wanted it to go, and that was down, and I call that the road to hell right now. I'll call it, we're on the road to redemption, and if we compare our results... And maybe it's a false cheer, but
So I think there is.
You can look at it and say, we're trading at a big discount or where.
There's a lot of upside.
No.
It's been that hard couple of years for us as shareholders.
From September.
September eight teen.
To.
At the end of August 22, our share price was going in one direction and that was not the direction that I ever wanted it to go.
That was it down.
And I called out the road for health.
Right now.
I'll call. It we're on the road to redemption.
And.
If we compare our results.
Maybe it's a false cheer but.
Robert Ross McEwen: When you look at how we performed against the price of gold, the price of copper, the NASDAQ, and the Dow, since September 22, when we did our first financing in McEwen Copper, McEwen Mining is up 107%, the NASDAQ is up 37%, silver 27%, the Dow 23%, gold 20%, GDX 14%, GDXJ up 13%, and copper's up 12%. We're clearly outperforming. I think we have two drivers.
When you look at how we performed against the price of gold price of copper the nasdaq's the DAU.
Since September 22.
When we did our first financing in Mcewen copper.
Mcewen mining is up 107% the NASDAQ is up 37% silver 27, the Dow twenty-three gold 20, Gtx 14, Gtx J F 13 in Koppers up 12, we're clearly outperforming.
We have two drivers one is our copper, which I think is and have long considered a potential copper unicorn and that is we're seeing shape out and then the second is the turnaround in our gold and silver assets that are.
Robert Ross McEwen: One is our Copper, which I think is, and have long considered a potential Copper unicorn, and that we're seeing shape out. And then the second is the turnaround in our Gold and Silver assets, which are delivering.
We're delivering.
Robert Ross McEwen: Positive Cash Flows and financing our exploration programs there. And we have some exciting development programs, one in Timmins, where we expect to put a ramp down and start production in 25. Joe Phan.
Hmm.
Positive cash flows.
And financing our exploration programs there and.
And we have some exciting development programs, one in Timmins, where we expect to put a ramp down and.
And.
Start production in 'twenty five.
Uh huh.
Robert Ross McEwen: A discovery we made several years ago, Stock West. Stock East, we recently put out some results, them an intriguing high grade over there, and the importance of the Stock mine is threefold. One, it's right beside our mill, so it would eliminate the transportation costs we currently have of about $10 a ton. It doesn't have a royalty on it, so we're going to save on that royalty of about $1,500 an ounce that we have to give up.
Discovery, we made several years ago stock west.
Stock East, we recently put out some results some intriguing high grade over there and the importance of the stock mine.
Is.
Threefold, one its right beside our mill so it would eliminate the transportation costs. We currently have.
Of about.
$10 a ton.
Too is.
It doesn't have a royalty on it.
So we're going to save on that royalty of about $500, an ounce that we have to give up.
Robert Ross McEwen: And three, the rock is softer, which means we should be able to process a higher volume of material through the mill and, in theory, produce more gold as a result and bring down our costs. At Los Azules in McEwen Copper, we delivered a very robust preliminary economic assessment in June. We've got a project there that... I can't help myself, but I always look at something that's not gold and try to convert it into gold to try to get a sense of its scale.
And three the rock is softer which means we should be able to process a higher volume of material through the mill.
And.
In theory produce more gold as a result of that.
Down our cost.
And losses, Xu list and Mcewen copper, we delivered a very robust preliminary economic assessment in June.
We've got a project there that it <unk>.
Can't help myself, but I always look at something that's not gold and try to convert it into gold to try to get a sense of at scale. So when I do that with lots of <unk> indicated and inferred resources.
Robert Ross McEwen: So when I do that with Los Azules, it's indicated in inferred resources. You get a resource of 37.6 billion pounds of copper. If you were to take today's price of gold and divide it by the price of copper to find out how many copper pounds equal one ounce of gold, it's about 536 Pounds of Copper. One Ounce of Gold. Divide that into 36.7 billion pounds of copper, and you're looking at a gold equivalent deposit of 70 million ounces. The average production of 321 million pounds of copper per annum would translate into about 600,000 ounces a year, and with a cash cost of $1.07 a pound, the gold equivalent of that would be just under $600 an ounce.
Get a resource of 37 6 billion pounds of copper.
You were to take todays price of gold.
Divided by.
By the price of copper to find out how many copper pounds equals one ounce of gold is about 536.
Pounds of copper one ounce of gold divide that into $36 7 billion pounds of copper and Youre looking at it.
Our gold equivalent deposit of 70 million ounces, the average production of $321 million.
Pounds of copper per annum would translate into about 600000 ounces, a year and with a cash cost of $1 seven a pound the gold equivalent of that would be just under $600 an ounce by my book that is a big gold equivalent deposit.
Robert Ross McEwen: By my book, that is a big gold equivalent deposit and reflects the size and, I think, the power of Los Azules. We're looking at a 27-year life, and I think there's still quite a bit of room for improving the value of that asset and that of McEwen Mining. And then you look at the Gold and Silver Assets, where we're doing exploration. I'm quite pleased with what we're getting there. It's taken a while, but we're moving in very much the right direction. Our press release outlines it pretty well.
And reflects the size and I think the power.
Losses. Louis This is we're looking at a 27 year life and I think there's still quite a bit of room in improving the value of that asset and that improving the value of Mcewen mining and then you look at the.
The gold and silver assets, where we're doing exploration.
Yeah.
I'm quite pleased with what we're getting there.
It's taken a while but we're moving in very much the right direction.
Yeah.
Our press release outlines it pretty well.
Robert Ross McEwen: We have another project in Mexico that we're looking at advancing later this year. And I want to come back to Las Azulas for a moment because what we're trying to do there is a bit different than what's in the market right now. Mining, generally, is held in poor opinion by most of the world. They feel it's very damaging to the environment and it's not important to life, but I can assure you that if all the mines stopped tomorrow, modern civilization would grind to an abrupt halt.
We have another project in Mexico that we're looking at advancing later this year.
And I wanted to come back to <unk> for a moment because what we're trying to do there.
Is a bit different than what's in the market right now.
Mining.
Generally has is held in poorer opinions by most of the world.
They feel it's very damaging to the environment and it is not important to life, but I can assure you if all the main stop tomorrow modern civilization with grind to an abrupt halt.
Robert Ross McEwen: And somehow, we have to put that message out there that we can mine the Earth's resources in a manner that is viewed as responsible and sensitive to the environment. So at Las Azulis... Several years ago, we engaged the services of an architect who's very prominent in the green living built, building, and space, and asked him to help us redefine mining, to look at it so that we could hopefully move in the direction of shifting the perception of the public about mining. And so we're looking to create the future. And in order to create the future, it has to look like the future.
And somehow we have to put that message out there.
That we can mine the Earth's resources.
In a manner that is viewed as responsible and sensitive to the environment.
So lots of Zoo list.
Several years ago, we engaged the services of <unk>.
On architect who is very prominent in the green living built.
Building space and.
Asked him to help us redefine mining to look at it so that we could hopefully move in the direction of shifting the perceptions.
The public's perception of mining.
And so we're looking to create the future.
And in order to create the future it has to look like the future.
Robert Ross McEwen: Both in terms of its buildings, we have some wonderful renderings of very comfortable, safe, attractive accommodations for the workforce, but also in terms of how we treat the world. And we're looking at a project that will have a much lighter impact on the environment, initially emitting 1 3rd of CO2 emissions. Using less than one-quarter of the water of a comparable-sized conventional copper mine, being powered by 100% renewable energy sourced from hydro, water, and wind, and producing a sustainable copper cathode. Most of the mines in the world today produce concentrate that has to be shipped to a smelter, then converted into a product that is usable by industry.
Both in terms of its buildings we have.
Some wonderful renderings of a very comfortable say attractive accommodations for the workforce.
But also looking at how do we treat the world and we're looking at a project that will have.
I have a much lighter impact on the environment. Initially emitting one third of C O two emissions.
Using less than one quarter, the water of a comparable sized conventional copper mine being powered by 100% renewable energy source from hydro water and wins.
We're producing a sustainable copper cathode.
Most of the mines copper mines today in the world.
Produce concentrate that has to be shipped to a smelter then converted into a product that is usable by industry.
Robert Ross McEwen: With our copper cathode, it can go directly to industry and cut out transportation costs, www.globalonenessproject.org, and we think that will attract a premium in the marketplace as well. As a reminder, to ask a question, you will need to press star followed by the number one on your telephone.
With our copper cathode it can go directly to industry.
The transportation costs.
And we think that will attract a premium in the marketplace as well.
So with that I'd like to open it up for questions.
As a reminder to ask a question you will need to press star followed by the number one on your telephone to withdraw your question Press Star. One again. Your first question will come from the line of Heiko with H C. Wainwright. Please go ahead.
Operator: To withdraw your question, press star one again. Your first question will come from the line of Heiko Ihle with H.C. Wainwright. Please go ahead. Hey, sorry I had you on mute.
Okay, sorry, I had you on mute Hey, Robyn team thanks for taking my questions.
Heiko Felix Ihle: Hey Robin team, thanks for taking my question. Early on in this call, you were talking about lower production costs. And it's now officially March.
Earlier on this call you were talking about a lower production cost on that small, especially march or two thirds through Q1 at this point.
Heiko Felix Ihle: We're two-thirds through Q1 at this point. How much more in cost savings have you seen in Q1 thus far? And maybe you could give a bit of a breakdown where they derive from.
How much more in these cost savings have you seen in Q1, thus far and maybe if you could give us.
We have a breakdown of what are they the right from I mean, obviously you have your guidance in the release, but maybe just provide a bit more color than raw numbers.
William M. Shaver: I mean, obviously, you have your guidance in the release, but maybe you just want to provide a bit more color than raw numbers. I'll ask Bill to answer that question, Heiko. Thanks for the question, Heiko. I guess the drivers of the cost are basically, you know, pretty fundamental in terms of labor cost, power cost, explosives, all of those things that make up the cost.
I'll ask bill to answer that question Heiko.
Yes, thanks for the question the high Court.
I guess the.
The drivers of the cost are basically.
<unk>.
Pretty fundamental in terms of labor cost.
Power costs expose us all of those things that make up the costs. So what we have to do in 2024, and then going forward as we have to produce more.
William M. Shaver: So what we have to do in 2024 and going forward is we have to produce more ounces in order to drive some of those monthly operating costs down in such a way that we can improve the overall operating costs and also improve, of course, the margin. And so, you know, that's basically the direction that we're going in. As we transition from mining at the Froome mine over into stock, we're going from Unknown Speaker 00. Okay. Thank you, or that has a work index of between 21 and 23 and one between, say, 14 and 17.
More ounces in order to drive some of those.
Monthly operating cost down.
Such a way that we can improve their overall operating costs and also improve of course the margin.
So.
Thats basically the direction that we're going in.
As we transition from mining at the fruit mine over into stock we're going from.
Or that has a work index of between 21% and 23 to one between say 14 and 17, so that will allow us to increase the number of <unk>.
William M. Shaver: So that will allow us to increase the number of tons per day going through the plant. The grades are, for the most part, similar, and that will allow us to move up production from the present 50,000 ounces a year up to up to 60. And, you know, I guess, in the longer term, we're also looking at ways that we can get that tonnage up a little bit higher by adding some capacity to our grinding circuits. So, that's kind of the short term and the longer term aspirations in terms of getting the operating costs, per ton and per ounce, lower. Yeah, that was good.
Times per day going through the plant.
The grades are.
For the most part similar and so that will allow us to move up.
Production from.
The present <unk> 50.
<unk> thousand ounces, a year up to up to 60.
I guess in the longer term, we're also looking at ways.
That we can get that tonnage up a little bit higher by adding some capacity to our grinding circuit. So.
So that's kind of the short term and the longer term aspirations in terms of.
Getting the operating cost.
Per tonne per ounce.
William M. Shaver: Thank you. A completely different question. You had a reasonably large flow through financing in December of last year. It was 22 million Canadian dollars. How much of that have you already spent at Fox this year? And how much should we just more or less assume it's even by quarter? Yeah, so of that total amount of money, approximately half of it is or is CEE for drilling. And I would say if you divide that by, say something like 10 or 11, that will be the expenditures per month. The CDE is for development of the infrastructure, at stock, and that will get, will start the spending on that. I guess at the beginning of the second quarter.
Lower.
Yeah.
Thank you.
Different question, you had a reasonably large flow through financing in December.
At year end.
22 million Canadian how much of that have you already spend at Fox This year and how much should we just more or less assume it by quarter.
Alright.
So yeah.
Yes.
Of that total amount of money.
Approximately half of it is.
Or is CE for for drilling and I would say if you divide that by.
Say, something like 10, or 11 that will be the expenditures per month.
The the Cte is for development.
The infrastructure.
Stock and.
Well.
We will start the spending in that.
I guess at the beginning of the second quarter, and so and it'll get spent over the rest of the year. So that's probably something like <unk>.
Jeff Chan: And so it, and it'll get spent over the rest of the year. So that's probably something like a little bit over one to $1.2 million a month. Perfect. I'll get back in the queue. Thank you all. Thanks, Heiko. Your next question comes from the line of Joseph Reagor with Roth Capital. Please go ahead. Thank you for taking my questions. I guess the first one is, since you had this large gain in Q4, can you guys just back that out and, you know, for apples to apples sake, what would the earnings have looked like in Q4? Jeff, you.
Little bit over.
One to $1 $2 million a month.
Yeah.
Perfect I'll get back in queue. Thank you all.
Heiko.
Your next question comes from the line of Joseph Reagor with Roth Capital. Please go ahead.
Hey, Joe Hey, Robyn team Okay.
Thanks for taking my questions.
The first one is.
Since you had this large gain in Q4.
Can you guys just back that out and for apples to apples sake, what would the earnings have looked like in Q4.
Yes.
Jeff.
Jeff Chan: Sure. I'll take that one. So we reported net income for the year of $54.7 million. I would add back the accounting gain of $224 million, less the deferred tax accounting impact of that of $37 million. So I think once you remove those factors, that would normalize from that accounting.
Sure I'll take that one so we reported net income for the year of $54 seven.
7 million I would add back the accounting gain of $224 million less.
The deferred tax.
Accounting impacts of that of $37 million. So I think once you remove those factors that would normalize the earnings.
Joseph George Reagor: Yeah, there's a tax that I needed clarifying. Okay, and then, you know, as you guys think about, you know, 2024. Other than McEwen Copper, what are the big things you guys are looking at for growth this year and maybe into next? Is it, you know, the Mexican assets. Is it developing the stock and drilling that out more? You know, what should we be looking at?
From that accounting change.
Yes, it is the taxes I needed there.
Thanks for clarifying.
Okay, and then as you can.
I always think about.
2024.
Other than Ms sealing the copper what are the big things you guys are looking at for for growth in this year and maybe into next.
Is it.
Yeah the.
It can assets.
Is it developing stock and drilling that out more.
What should we be looking at.
Robert Ross McEwen: Number one would be, behind Las Azulis, Timmins, and the development of the stock property, which is serving as the next source of production coming on stream. And there's quite a bit of exploration going on there. We've had a couple of press releases out recently talking about the increase in the resource of the stock. And over at Stock East, there's been some high grade that's intriguing.
Number one would be behind losses would.
It would be Tim.
Development of the stock property, which is serving as the next source of production coming on stream.
And there is quite a bit of exploration going on there.
We've had a couple of press releases out recently.
Talking about the increase in the resource at stock.
Then the.
Over at stock East Theres been some high grade that's intriguing.
Robert Ross McEwen: And we're also drilling it over at Gray Fox, where there are over a million ounces. We're looking at possible additions, if we can make them, of adjacent areas that would be complementary to our production base. Second, would be..., would be Mexico.
No.
And we're also drilling.
Over at Grey, Fox, where theres over 1 million ounces.
We're looking.
King.
Possible additions, if we can make it.
Adjacent areas.
That would be complementary to our production base.
Second would be.
We'd be Mexico.
Robert Ross McEwen: The second would be Mexico. I think, you know, we have to complete, well, we have to complete the engineering, but the driver is probably the permitting phase, where we hope to have permits sometime in the middle of this year, but, You know, permitting is always a challenge in every part of the world today, so we don't know exactly where or when that's going to happen. But, you know, that's part of the future plan. We also have a plan to. Expand. Our production at Gold Bar. Gold Bar is an asset where we have a leach pad, as you probably know. And we have, you know, there's enough different workplaces at GOLBAR for us to increase production. Last year, we were able to construct our new leach pad. So now we have no constraints in terms of the area where we can put material to be leached.
The second would be Mexico I think.
We have to.
Sure.
Complete.
What we have to complete the engineering, but the driver is probably the permitting phase where we hope to have permits.
Sometime middle of this year, but.
Permitting is always a challenge in every part of the world today.
So we don't know exactly.
Where or when that's going to happen.
But.
That's <unk>.
That's part of the future plan.
We also have a plan to.
Okay.
Expand.
Our production gold bar Gold bar is an asset where.
Where we have a leach pad as you probably know.
And.
We have.
There is a there is enough.
Workplaces.
At gold bar.
For us too.
Increased production.
Last year, we were able to construct our new leach pad. So now we have no constraints in terms of the.
The area, where we can put material to be leached and so that's one of the strategies for this year is due.
William M. Shaver: And so that's one of the strategies for this year is to increase the ore production at Gold Bar, get it onto the pad, and you know, that will result in an increase in total ounces produced at Gold Bar. So I think we're looking at improving production at all three operations or, or the two operations that are running today as well as in Mexico. I think that's our goal this year and then, as we move forward, it's to do more of that kind of increase and maybe try and get the whole Timmons Complex. So it's producing, say, 25% or 30% better tonnage going into 2025. Okay, that sounds good. And one final thing, Rob, do you have any thoughts on the potential repeal of the new mining exploration law in Mexico and how it might impact you guys if it does get repealed? We're just watching it. We've had some permits there, but politics is a little difficult to predict, Joe, so we're moving ahead on the assumption that the in-pit tailings disposal we've gotten approval for will continue. It might, if it were to go in...
Increase the ore production.
At gold bar get it onto the pad and that will result in an increase in total ounces produced at gold bar.
So I think we're looking at improving the production that all three operations are towards the two operations that are running today as well as.
Doug.
As well as in Mexico. So.
I think thats our goal this year.
And then as we move forward it's.
To do more of.
That kind of increase.
Maybe try and get the whole.
Tim <unk> complex.
So it's <unk>.
Producing.
25%, 30%.
Better tonnage going into 2025.
Okay.
It sounds good and one final thing Rob do you have any thoughts on the potential repeal of the new <unk>.
Mining exploration La Quinta.
In Mexico.
And how it might impact you guys. If it does get repealed.
Yeah.
We're just watching it.
Sure.
We've had some permits there.
Okay.
But.
Politics, it a little difficult to predict Joe so.
We're moving ahead on the assumption that the in pit tailings disposal.
Gotten approval for will continue.
If it were to go in.
Robert Ross McEwen: It would impact six years later because the first six years are reprocessing the tailings. Oh, not the tailings, the heat leach. Leach pad. Leach pad.
It would impact.
Six years later because of the first six years of reprocessing. The tailings are not the tailing Z heap Leach Leach pad, that's correct, yes, so near term.
Robert Ross McEwen: That's correct. Yeah. So, in the near term, we've got time to see if it's repealed.
We've got time to see if its repeal.
Operator: Okay, thanks for the comment. I'll turn it over. Thank you. Again, to ask a question, simply press star followed by the number one on your telephone keypad.
Okay. Thanks for the comments I'll turn it over.
Thank you.
Again to ask a question simply press star followed by the number one on your telephone keypad. Our next question will come from the line of John Tumazos with John Tumazos very independent research. Please go ahead.
Operator: Our next question will come from the line of John Tumazos with John Tumazos's Theory of Independent Research. Please go ahead. Morning, John. Good morning.
Good morning, John.
John Charles Tumazos: Thank you. Well, I'm looking ahead a year or so, to after the definitive piece is completed in hand. Okay. What will be... the path forward for McEwen proper, or I guess the consensus of the board. McEwen Mining, Rio Tinto, Stellantis, etc.
Thank you.
Looking ahead, a year or so.
Two after that.
TS has continued it in hand.
Okay.
Yes.
The path forward for Mcewen proper.
Alright, yes, the consensus.
The board it's Nick.
Mcewen mining.
Close for Altice et cetera.
Robert Ross McEwen: Would the next step be to apply for permits or do early works for construction? The access road that was built to facilitate the detailed drilling campaign is one of those early works already done. It just gives us a flavor for what the path forward is going to be when the definitive piece is in hand. There will be a feasibility study in Q1 of next year, and after that, there will be about a year of engineering required before we make a decision to put a shovel in the ground. In terms of, Mike has assembled a team, a very competent team of nationals that have a lot of experience building in San Juan province, where Las Azulas is located. Moving ahead on the basis that we've built substantially large mines, gold mines down there, and they there's a team that could build it.
We'll go next.
We will apply for permits.
Or do you early works with construction.
The access route that was built to facilitate the detailed drilling champagne glasses, one of those early works already done.
Can you just give us a flavor.
So what's the path forward is going to be.
Canada is in hand.
Yes.
As a feasibility study Q1 of next year.
And after which we'll have there'll be about a year of engineering required before we make a decision to put a shovel in the ground.
In terms of.
Mike has assembled a team are very confident team of.
Nationals that have a lot of experience building.
In San Juan Province, where <unk> is located.
Yeah.
And.
Moving ahead on the basis that they have.
Substantially.
Large mines gold mines down there.
And there's a team that could build it.
Michael Meding: We do have some large shareholders that might want to have a prefer to operate, but at the moment, we're moving ahead as though we could build it. Mike, do you want to add anything to that? Sure. Hey, John, um... Glad to speak to you. We filed our environmental permit for construction and operation in April last year. We are currently going through the different meetings with the different Evaluatory Commission members.
We do have some large shareholders that might want to have.
Wed prefer to operate but.
At the moment, we're moving ahead as though we could build it.
Mike do you want to add anything more on that hedge.
Hey, John.
Okay glad to speak to you.
We filed our environmental permit for construction.
Construction and.
Operation in April last year, we are currently going through the different meetings with a discipline.
I will let Tony Commission members, we expect our environmental permit.
Michael Meding: We expect our environmental permit in the second half of 2024. And then, as Rob said, after having gone through the detailed engineering and at the same time obtaining remaining permits alongside WEGO, that would be the path forward. We haven't made any kind of decision yet on how we are going to construct, as Rob said before, but we think that Los Azules, overall, when you compare it to other projects in the region, has high constructability with low capex.
In the second half of 2024 and then.
As Rob said after having gone through the.
The detailed engineering and at the same time, obtaining remaining permits along alongside me go that will be the path forward.
We haven't made any kind of decision yet on how we are going to come.
Construct as I've said before.
But we think that loss as soon as overall when you compare to other projects in the region has high concept ability with low Capex I think that should help us with financing in the construction going forward.
Michael Meding: I think that should help us with financing and the construction going forward. Thank you. You're welcome. And once again, for any questions, please press star one on your telephone keypad. And there are no further questions at this time.
Thank you.
Youre welcome.
And once again for any questions. Please press star one on your telephone keypad.
And there are no further questions at this time, Mr. Rob Mcewen I will turn the call back over to you.
Robert Ross McEwen: Rob McEwen, I will turn the call back over to you. Thank you, operator. I'd like to thank everyone for being on the line. Our future is looking much brighter than it did several years ago. Hold on, we're going higher. Thank you. And everyone, that will conclude our call for today. Thank you all for joining us. You may now disconnect. Thank you for joining us. Thank you for watching.
Thank you operator, I'd like to thank everyone for being on the line I think there.
Our future is looking much brighter than it look several years ago.
Hold on we're going higher thank you.
And everyone that will conclude our call for today. Thank you all for joining you may now disconnect.
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