Q2 2024 McEwen Mining Inc Earnings Call

August 8, 2024

Hello ladies and gentlemen, and welcome to McEwen Mining's 2nd Quarter 2024 Operating and Financial Results Conference Call.

Operator: Cooperative Board through 2024, Operating and Financial Results conference call.

Operator: at their 2024 Operating and Financial Results Conference call. Present from the company today are Rob McEwen, Chairman and Chief Owner, William Shaver, Chief Operating Officer, Perry Ing, Chief Financial Officer, Jeff Chan, Vice President, Finance, Stefan Spears, Vice President, Corporate Development, Michael Meding, Vice President and General Manager of McEwen Copper, and Carmen DeSoto, General Counsel, and Secretary.

Operator: Present from the company today are Rob McEwen, Chairman and Chief Owner; William Shaver, Chief Operating Officer; Perry Ng, Chief Financial Officer; Jeff Chan, Vice President, Finance; Stefan Spears, Vice President Corporate Development; Michael Meding, Vice President and General Manager of McEwen Copper; and Carmen Teesh.

Speaker Change: Presented from the company today are...

Rob McEwen, Chairman and Chief Owner, William Shaver, Chief Operating Officer, Perry Ing, Chief Financial Officer, Jeff Chan, Vice President Finance, Stefan Spears, Vice President Corporate Development, Michael Meding,

Speaker Change: Vice President and General Manager of McEwen Copper, and Carmen Dish.

Operator: General Counsel and Secretary, after its speaker's presentation, there will be a question and answer session. If you'd like to ask a question during this time, please press star, followed by number one on your telephone keypad. If you would like to withdraw your question, press the pound key again.

Carmen Dish: General Counsel and Secretary.

Speaker Change: After the speaker's presentation, there will be a question and answer session. If you'd like to ask a question during this time, please press star followed by number one on your telephone keypad.

Operator: After the speaker's presentation, there will be a question and answer session. If you'd like to ask a question during this time, please press star followed by number one on your telephone keypad. If you would like to withdraw your question, press the pound key again. I'd now like to turn the call over to Mr. Rob McEwen, Chief Owner. Please go ahead. Thank you very much.

Robert McEwen: I'd now like to turn the call over to Mr. Rob McEwen, Chief Owner. Please go ahead, sir. Thank you very much, operator. Good morning and welcome, ladies and gentlemen. It was a quarter we've all been waiting to see. It was our most profitable quarter since 2016. It was a quarter where our gross profit was 10.8 million and adjusted EBITDA of 7.2 million versus losses recorded in the second quarter of last year. It was a quarter of improved financial liquidity. Our cash was up 77% to 40.7 million. Working capital was up 28% to 29.1 million, and our debt remained unchanged at 40 million since year end.

If you would like to withdraw your question, press the pound key again. I'd now like to turn the call over to Mr. Rob McEwen, Chief Owner. Please go ahead, sir.

Rob McEwen: Thank you very much, operator. Good morning and welcome, ladies and gentlemen.

Rob McEwen: It was a quarter we'd all been waiting to see.

Rob McEwen: We've all been waiting to see. It was our most profitable quarter since 2016. It was a quarter where our gross profit was $10.8 million and adjusted EBITDA of $7.2 million, versus losses recorded in the second quarter of last year. It was a quarter of improved financial liquidity. Our cash was up 77% to $40.7 million, and working capital was up 28% to $29 million.

Speaker Change: It was a quarter we've all been waiting to see.

Speaker Change: It was our most profitable quarter since 2016.

Speaker Change: It was a quarter where our gross profit was $10.8 million and adjusted EBITDA of $7.2 million.

Speaker Change: versus losses recorded in the second quarter of last year.

Speaker Change: It was a quarter of improved financial liquidity.

Speaker Change: Our cash was up 77% to $40.7 million. Working capital was up 28% to $29.1 million. And our debt remained unchanged at $40 million since year-end.

Rob McEwen: .1 million, and our debt remained unchanged at $40 million since year end. It was a quarter when both McEwen Mining and myself increased our investment in McEwen Copper, and based on the last financing, McEwen Copper has risen to $947 million, which makes McEwen Mining's 48.3% interest equal to $457 million. On a per share basis, that is $8.45 behind every fully diluted share of McEwen Mining. It's worth noting that this value is greater than our entire market capitalization today. Last night, our closing share price was $8 on the NYSE.

Robert McEwen: It was a quarter of when both McEwen Mining and myself increased our investment in McEwen Copper, and based on the last financing of McEwen Copper, the implied value has risen to 947 million dollars, which makes McEwen Mining 48.3% interest equal to 457 million dollars. On a per share basis, that is $8.45 behind every fully diluted share of McEwen Mining. It's worth noting that this value is greater than our entire market capitalization today. Last night, our closing share price was $8 on the Nike, and I want to remind you that McEwen Mining also owns a portfolio of six royalties where the largest is a 1.25% NSR on Los Azulis.

It was a quarter when both McEwen Mining and myself increased our investment in McEwen Copper.

Speaker Change: And based on the last financing of McEwen Copper, the implied value

has risen to $947 million, which makes McEwen Mining's 48.3% interest equal to $457 million.

Speaker Change: On a per share basis, that is $8.45 behind every fully diluted share of McEwen Mining.

It's worth noting that this value is greater than our entire market capitalization today.

Speaker Change: Last night our closing share price was $8 on the NYSE.

Rob McEwen: And I want to remind you that McEwen Mining also owns a portfolio of six royalties, the largest of which is one and a quarter percent NSR on Los Azules. And we also own three cash-flowing... Gould and Silvermine. Management does an internal calculation for the value of our assets, and it ranges from a low of $20 a share to $50 a share.

Speaker Change: And I want to remind you that McEwen Mining also owns a portfolio of six royalties, where the largest is one and a quarter percent.

Robert McEwen: We also own three cash-flowing gold and silver mines. Management has done an internal calculation for the value of our assets, and it ranges from a low of $20 a share to $50 a share. Q2 was a quarter when the investment outlook for Argentina improved dramatically.

NSR on Los Azules.

Speaker Change: And we also own three cash flowing companies.

Speaker Change: Gold and Silver Mines

Speaker Change: Management is done.

Speaker Change: An internal calculation for the value of our assets and it ranges from a low of $20 a share to $50 a share.

Rob McEwen: Q2 was a quarter when the investment outlook for Argentina improved dramatically. I'll call it Malay magic after the President Malay. The most important change for foreign direct investment in the country in the last 20 years. It involves lower taxes, removal of... Exchange Controls, Financial Stability Agreements, and more for major projects. The impact will be significant on McEwen coppers.

Speaker Change: Q2 was a quarter when the investment outlook for Argentina improved dramatically.

Robert McEwen: Markley. I'll call it Malay Magic after the president, Malay. The Argentinian government approved the most important change for foreign direct investment in the country in the last 20 years. It involves lower taxes, removal of exchange controls, financial stability of the agreement, and more for major projects. The impact will be significant on McEwen Copper's Los Azulis NPV. And after the quarter, and appearing to take advantage of Argentina's legislative changes, the world's largest mining company, VHP, jumped into Argentina's copper scene in a very big way, leading a $4.4 billion transaction with Lundine Mining to acquire Philo Mining and its Philo del Sol deposit and the Jose Maria deposit.

Speaker Change: I'll call it Malay magic after the President Malay.

Speaker Change: Most important change for foreign direct investment in the country in the last 20 years. It involves lower taxes, removal of exchange controls, financial stability agreements, and more for major projects.

Speaker Change: The impact will be significant.

Rob McEwen: Los Azules, Hen Pee Vee. After the quarter, and appearing to take advantage of Argentina's legislative changes, the world's largest mining company, BHP, jumped into Argentina's copper scene in a very big way, leading a $4.4 billion transaction with Landin Mining to acquire Filo Mining and its Filo del Sol deposit and the Jose Maria deposit. Not only is this transaction a tremendous expression of confidence in Argentina,

Speaker Change: on McEwen Copper's Los Azules NPV.

Speaker Change: and

Speaker Change: after the quarter and appearing to take advantage of argentinais legislative changes the world's largest mining company bp

Speaker Change: jumped into Argentina's copper scene.

Speaker Change: in a very big way leading a four point four billion dollar transaction with lendde mining to acquire felo mining and its feilodelso deposit and the jose maria deposit

Robert McEwen: Not only is this transaction a tremendous expression of confidence in Argentina, but it also sets a new value for large copper deposits in the country. Based on the current published resources of Philo del Sol and Jose Marina, Los Azulis has a deposit that is larger than the combined resources of both of those deposits and a higher copper grade. All three of these deposits are located in San Juan Province, a jurisdiction that the Fraser Institute ranks as one of the best for mining in South America.

Speaker Change: Not only is this transaction a tremendous expression of confidence in Argentina, but it also sets a new value for large copper deposits in the country.

Rob McEwen: But it also sets a new value for large copper deposits in the country, based on the current published resources, Filo Del Sol, and Jose Marina. Los Azules has a deposit that is larger than the combined resources of both of those deposits and higher copper. All three of these deposits are located in San Juan province, a jurisdiction that the Fraser Institute ranks as one of the best for mining in South America. At this point, I'd like to open the call for... Questions and answers.

Speaker Change: Based on the current published resources of Philo Del Sol and Jose Marina.

Speaker Change: Los Azules

Speaker Change: has a

Speaker Change: Deposit that is larger than the combined resources of both of those deposits.

Speaker Change: and a higher copper grade.

Speaker Change: All three of these deposits are located in San Juan Province, a jurisdiction that the Fraser Institute ranks as one of the best for mining in South America.

Operator: At this point, I'd like to open the call for questions and answers. Thank you. We are now opening the floor for questioning-answer session. If you'd like to ask a question, please press star one. Again, that star one on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in.

Speaker Change: At this point, I'd like to open the call for questions.

Speaker Change: Questions and answers.

Operator: Thank you. We are now opening the floor to questions and answers. If you'd like to ask a question, please press star 1. Again, that's star 1 on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in. Our first question comes from Jake Sekelsky from Alliance Global Partners. Your line is now open.

Speaker Change: Thank you. We are now opening the floor for question and answer session. If you'd like to ask a question, please press star 1. Again, that's star 1 on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in.

Jake Sikowski: Our first question comes from Jake Sikowski from Alliance Global Partners; your line is now. A robbing team. Thanks for taking my questions, and congrats on the corner.

Jake Sekelsky: Hey, Rob and team. Thanks for taking my questions and congrats on the quarter. Thanks, Jake. So, just starting with the ground conditions at FOX, I'm just curious, is this a one-off at a specific scope or are you seeing this in other areas underground as well?

Speaker Change: our first question comes from jake skoski from alliance global partners your line snow

Jake Skoski: Hey Rob and team, thanks for taking my questions and congrats on the quarter.

Robert McEwen: Thanks, Jake. Just starting with the ground conditions at Fox, I'm just curious, is this the one off at a specific scope, or are you seeing this in other areas underground as well?

Speaker Change: Thanks, Jake.

Jake Skoski: So just starting with the ground conditions at FOX, I'm just curious is this a one-off at a specific scope or are you seeing this in other areas underground as well?

Robert McEwen: No, that's nice for the question, Jake. No, it's a single area of the upper level of the mine.

William Shaver: No, that's, uh, thanks for the question, Jake. No, that's, uh, it's a single, uh, area. Robert Santelli, of the upper, the upper level of the mind, it's now.

Speaker Change: No, that's, thanks for the question, Jake. No, that's, it's a single area.

Robert McEwen: It's now. It's along the contact between Orrin Waste, and on the Waste side there was some less competent rock which basically failed. Once we realized exactly what was going on, we backfilled that area with cemented fill, and so it's totally stabilized now. The path forward is to define exactly how we're going to recover the rest of that ore, and that will be by using significantly smaller bites or significantly smaller sizes of stopes that will have absolute control of. So I don't think we have a big concern about it, and I guess the mistake we made was that we didn't recognize that that rock adjacent to that particular stope being waste was, in fact, as incompetent as it turned out to be.

William Shaver: It's along the contact between ore and waste, and on the waste side, there was some less competent rock which basically failed, and once we realized exactly what was going on, we backfilled that area with cemented fill, and so it's totally stabilized now, and so the path forward is to define exactly how we're going to recover the rest of that ore, and that will be by using significantly smaller bites or..., significantly smaller sizes of s So, you know, I don't think we have a big concern about it.

Speaker Change: It's along the contact between oar and waist, and on the waist side there was

Speaker Change: some less conftident rock which basically failed and once we once we realized

Speaker Change: exactly what was going on we've back ill that area with cemented fill and so it's totally stabilized now and so the

Speaker Change: The path forward is to define exactly how we're going to recover the rest of that ore and that will be by using significantly smaller bites or...

Speaker Change: significantly smaller sizes of stulps that we'll have absolute control of.

Speaker Change: So, you know, I don't think we have a big concern about it.

William Shaver: You know, and I guess the mistake we made was that we didn't recognize that the rock adjacent to that particular stope being waste was, in fact, as incompetent as it turned out to be. So I think it's a one-off that's now under control. We've had our rock mechanics consultants advising us on how to put, say, more security around what we're doing there. And I guess I'm reasonably comfortable that we're not going to see that again.

Speaker Change: You know, and I guess the mistake we made was...

Speaker Change: that we didn't recognize.

Speaker Change: that that rock adjacent to that particular stope

Speaker Change: Being waste was, in fact, as incompetent as it turned out to be.

Robert McEwen: So I think it's a one of that's now under control. We've had our rock mechanics consultants advising us on how to put, say, more security around what we're doing there, and I guess I'm reasonably comfortable that we're not going to see that again.

Speaker Change: I think it's a one-off that's, you know, now under control. We've had our rock mechanics consultants advising us on...

Speaker Change: You know, how to put, say, more security around what we're doing there. And, you know, I guess I'm reasonably comfortable that we're, you know, that we're not going to see that again.

Jake Sikowski: Okay, that's helpful thanks to that color, and then just switching over to gold bar, get a strong quarter there, and it seems like turnaround efforts have really fully taken hold. We expect sub call it $1500 an ounce ASIC going forward. Are there anything specific to Q2 that drove that major decrease in cost? Yeah, I don't think that there's anything that drove that cost down; it's basically because the production is, you know, I guess, so far has been slightly above our target, and you know, so that's helping that. In fact, at the present time, we're doing a significant amount of drilling.

Operator: Okay, that's helpful. Thanks. Thanks for that caller.

Speaker Change: Okay, that's helpful. Thanks. Thanks for that caller.

Jake Sekelsky: And then just switching over to Gold Bar, you had a strong quarter there, and it seems like turnaround efforts have really fully taken hold. Do we expect, I'll call it, $1,500 an ounce ASIC going forward there? Or was there anything specific to Q2 that drove that major decrease in cost?

Speaker Change: And then just switching over to Gold Bar, you had a strong quarter there and it seems like turnaround efforts have really fully taken hold.

Speaker Change: Did we expect sub, call it $1,500 an ounce ASIC going forward there, or was there anything specific to Q2 that drove that major decrease in cost?

William Shaver: Yeah, I don't think that there's anything that drove that cost down. It's basically because the production is, you know, I guess so far has been slightly... above our target. And, you know, so that's helping that. In fact, at the present time, we're doing a significant amount of drilling. So far this year, we've done about $5 million in drilling. That is also included in the cost there. So, I think we anticipate that as long as we can move the right amount of material, the cost will stay in that same area or, you know, it might move up slightly, but it seems to be predictable at this time based on the data we have.

Speaker Change: Yeah, I don't think that there's anything that drove that cost down. It's basically because the production is, you know, I guess so far has been slightly

Jake Sekelsky: Okay, great. Thanks again.

Speaker Change: above our target and you know so that's helping that. In fact at the present time we're doing a significant amount of drilling.

Robert McEwen: So far this year we've done about $5 million of drilling, so that is also included in the cost there. So I think we anticipate that, as you know, as long as we can move the right amount of material, that the cost will stay in that same area or, you know, it might move up slightly, but it's. So it seems to be predictable at this time based on the data we have.

Speaker Change: So far this year, we've done about $5 million of drilling.

Speaker Change: that is also included in the cost there. So I think we anticipate that as, you know, as long as we can move the right amount of material that the cost will

Speaker Change: Stay in that same area or it might move up slightly, but it seems to be predictable at this time based on the data we have.

Jake Sikowski: That's great; thanks again.

Robert McEwen: Thank you.

Speaker Change: Okay, great. Thanks again.

Michael Ihle: Our next question comes from Michael Ihle from H.C. Wainwright, your line is now. Hey, Robert James, thanks for taking my questions. Hope all is doing well.

Heiko Ihle: Our next question comes from Heiko Ihle from HSC Wainwright. Your line is now open.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Heiko Ihle from HSC Wainwright. Your line is now open.

Heiko Ihle: Hey Roboteam, thanks for taking my questions. Hope all is going well. Good, Heiko. Hey, you talk quite extensively about Argentina in your prepared remarks, which is obviously pretty pertinent, but maybe can you give a little bit of color on your longer-term internal tax outlook, given the special incentives that you have discussed? I mean, I guess what I'm saying is, you know, internally, what are you looking at receiving, and is there a way for us to maybe quantify that?

Heiko Ihle: Hey Rob and team, thanks for taking my questions. Hope all is going well. Good, Heiko.

Robert McEwen: Good, Heiko.

Michael Ihle: Hey, you talk quite extensively about Argentina and your prepared remarks, which is obviously pretty apartment, but maybe can you give a little bit of color on your longer term internal tax outlook, given the special incentives that you had discussed. I mean, I guess what I'm saying is, you know, internally, what are you looking at receiving, and is there a way for us to maybe quantify that?

Heiko Ihle: Hey, you talk quite extensively about Argentina in your prepared remarks, which is obviously pretty pertinent.

Heiko Ihle: But maybe, can you give a little bit of color on your longer-term internal tax outlook, given the special incentives that you have discussed? I mean, I guess what I'm saying is, you know, internally, what are you looking at receiving, and is there a way for us to maybe quantify that?

Perry Ng: Mike, do you want to address that question? Sure. So we have done some interim calculations.

Rob McEwen: Mike, do you want to address that question? Sure.

Heiko Ihle: yes

Michael Meding: Sure, so we have done some interim calculations on what the REGIE application means for our LOM, and by no means do we want to invalidate our existing PEA. But to give you an idea.

Speaker Change: Mike, do you want to address that question?

Mike: Sure, so we have done some interim calculations.

Perry Ng: What the regime application means for our long and by no means would like to invalidate our existing P.A. But to give you an idea, the after-tax changes with the conservative application of the regime would be in the area of about more than 30% $960 million. So this makes projects, which is not our case, but which makes other projects that were not that attractive now, now attractive because what Argentina has done is, and again, based on companies and management estimates, and has brought Argentina once qualifying for the region, which we believe, for example, we do on similar footing with over tax burdens such as Chile.

Michael Meding: The after-tax changes with the conservative application of the RIGI would be in the area of about more than 30%, or $960 million. So, this makes projects, which is not our case, but which makes other projects that were not that attractive now, now attractive, because what Argentina has done is, and again, based on companies and management's estimates, has brought Argentina, once qualifying for the RIGI, which we believe, for example, we do, on a similar footing with overall tax burdens such as Chile. It also includes a couple of benefits that help significantly during the construction phase, which is basically fast VAT recovery. So those are things that are very, very helpful for projects such as ours.

Mike: The after-tax changes with the conservative application of the RIGI would be in the area of about more than 30%, $960 million.

Speaker Change: So this makes projects, which is not our case, but which makes other projects that were not that attractive now attractive.

Speaker Change: because what Argentina has done is, and again based on companies and management's estimate, has brought Argentina

Speaker Change: once qualified for the region which we believe for example we do on similar footing with overtax burden such as cher

Speaker Change: it also includes a couple of benefits that help significantly during the construction phase which is

Speaker Change: basically fast VAT recoveries. So those are the things that are very, very helpful for projects such as ours.

Perry Ng: It's helpful.

Perry Ng: Yeah, the tax rate is going from 35% to 25%. And there are other benefits. As Mike mentioned, VAT refunds accelerated. And customs importation is speeded up. It's a big amount for us and others in the country. Yeah, no 100%. 100%.

Michael Meding: You know, the tax rate's going from 35% to 25%, and Tom. So, and their other benefits, as Mike mentioned, VAT refunds are accelerated. Fair enough. And customs importation is speeded up. It's a big military for us and others in the country. Yeah, no, 100%, 100%. I mean, things seem to be actually getting done there from everything you read in the press.

Speaker Change: Thanks folks. It's helpful. Yeah, the tax rate's going from 35 to 25 percent.

Speaker Change: And there are other benefits. As Mike mentioned, VAT refunds accelerated.

Speaker Change: And customs importation is speeded up.

Speaker Change: so

Speaker Change: It's a big moot point for us and others in the country. Yeah, 100%, 100%. I mean, things seem to be actually getting done there from everything you read in the press.

Michael Ihle: And I mean, things seem to be actually getting done there from everything you read in the press. Profitability in the quarter was obviously pretty good.

Heiko Ihle: Profitability in the quarter was obviously pretty good. What kind of cash flow should we expect for additional investments into your asset base beyond what you're currently forecasting? Is there an internal gold price? Is there an internal cash flow metric that you have? Or is this sort of a learning by doing thing where if excess funds are there, we'll figure it out then?

Speaker Change: Profitability in the quarter was obviously pretty good. What kind of cash flow should we expect additional investments into your asset base beyond what you're currently forecasting?

Michael Ihle: If what kind of cash flow should we expect additional investments into your asset base, but could be beyond what you're currently forecasting? Is there an internal gold price? Is there an internal cash flow metric that you have?

Speaker Change: Is there an internal gold price? Is there an internal cash flow metric that you have? Or is this sort of a learning by doing thing where if excess funds are there, we'll figure it out then?

Perry Ng: Or is this sort of just a learning by doing thing where, if excess funds are there, we'll figure it out then.

Perry Ing: Yeah, Heiko, it's Perry. I mean, obviously, you know, we're constrained in our current environment by permitting. I mean, I think that's one of the things that, you know, drives our timelines. You know, we're only looking at projects that we think we have the balance sheet to execute on. So for us, you know, that is building the ramp back at the stock mine, which is going well, and we've raised, you know, the CDE for Mexico, which we would like to put back into production, but that's obviously subject to permitting.

Perry Ng: Yeah, hi, Cody. It's Perry. I mean, obviously, you know, working straight in our current environment by permitting. I mean, I think that's one of the things that drives our timelines. We're only looking at projects that we think we have the balance sheet to execute on. So for us, that is building the ramp back at the stock mine, which is going well. And we've raised the CDE for Mexico. We would like to put back into production, but that's obviously subject to permitting. And as built at Goldbar, you know, we're spending money on exploration there, and we're having some tangible results, which we hope we can share in the future.

Perry Ing: Yeah, Heiko, it's Perry. I mean, obviously, you know, we're constrained in our current environment by permitting. I mean, I think that's one of the things that, you know, drives our timelines. You know, we're only looking at projects that we think, you know, we have the balance sheet to execute on. So, for us, you know, that is, you know, building the ramp back at the stock mine, which is...

Speaker Change: which is going well, and we've raised, you know, the CDE for Mexico. We would like to put back into production, but that's obviously subject to permitting.

Perry Ing: And as Bill said, at Gold Bar, we're spending money on exploration there, and we're having some tangible results, which we hope we can share in the future. But, you know, all these things, we hope will provide incremental production increases for the coming years.

Speaker Change: And as Bill said, at Gold Bar, you know, we're spending money on exploration there and we're having some tangible results, which we hope we can share in the future. But, you know, all these things, you know, we hope will provide incremental production increases for the coming years.

Perry Ng: But, you know, all these things, you know, we hope will provide incremental production increases for the coming years.

Perry Ng: That's a very fair answer. Thank you very much.

Heiko Ihle: That's a very fair answer. Thank you very much. I'll get back to you.

Michael Ihle: I'll get back in cute. Thanks, Aiko.

Speaker Change: That's a very fair answer. Thank you very much. I'll get back in queue.

Mike Kozak: Our next question comes from Mike Kozak from Cantor Fitzgerald.

Mike Kozak: Our next question comes from Mike Kozak from Cantor Fitzgerald. Your line is now open.

Speaker Change: next cycle

Speaker Change: our next question comes from mic coak from canterfitzgerald jerly is now open

Robert McEwen: Your line is now open. Yeah, good morning, Robin. Hello, good morning. Yeah, just a couple of questions from me.

Mike Kozak: Yeah, good morning, Robin. Hello, good morning. Yeah, just a couple of questions from me. First, have you guys set a budget yet for the 2024-2025 exploration season at Los Azules, or is that going to depend on how much of the $70 million comes in between now and the end of the year?

mic coak: Yeah, good morning, Robin. Hello, good morning. Yeah, just a couple of questions from me. First, have you guys set a budget yet for the 2024-2025 exploration season at Los Azules, or is that going to depend on how much of the $70 million comes in between now and the end of the year? We've done most of the drilling.

Robert McEwen: First, have you, have you guys set a budget yet for the 2024-2025 exploration season at Los Angeles? Or is it going to depend on how much of the 70 million comes in between now and the end of the year? We've done most of the drilling for the feasibility study. So the big drilling campaign is finished.

Rob McEwen: We've done most of the drilling for the feasibility study. So, the big drilling campaign is finished. We will be drilling, looking at that new deposit, or new copper showing, close to Las Azulas, but it won't be anywhere near the type of expenditure we did this year.

mic coak: for the feasibility study.

Speaker Change: So...

Robert McEwen: We will be drilling, looking at that new deposit or new copper showing close to Los Angeles. But it won't be anywhere near the type of expenditure we did this year.

Speaker Change: The big drilling campaign is finished. We will be drilling, looking at that new deposit, or new copper showing.

Speaker Change: Close to Las Azulas.

Speaker Change: But it won't be anywhere near the type of expenditure we did this year.

Mike Kozak: Okay, that's helpful. And then kind of a follow-up question I had was, you know, how much do you have to spend on the technical work related to the feasibility study?

Robert McEwen: Okay, that's helpful.

Robert McEwen: And then kind of a follow-up I had to that was, you know, how much do you have to spend on the technical work related to the feasibility study? We're looking at about $60 million for that. $60 million, of which none of which you all have still in front of you, or some has been sunk already. That's in front of us.

Speaker Change: Okay that's helpful and then kind of a follow-up I had to that was you know how much do you have to spend on the technical work related to the feasibility study?

Operator: Cooperative Board through 2024, Operating and Financial Results Conference call.

Operator: Present from the company today are Rob McEwen, Chairman and Chief Owner, William Shaver, Chief Operating Officer, Perry Ng, Chief Financial Officer, Jeff Chan, Vice President, Finance, Stefan Spears, Vice President Corporate Development, Michael Meding, Vice President and General Manager of McEwen Copper, and Carmen Teesh. General Counsel and Secretary, after it's speaker's presentation, there will be a question and answer session. If you'd like to ask a question during this time, please press star, followed by number one on your telephone keypad. If you would like to withdraw your question, press the pound key again.

Rob McEwen: We're looking at about $60 million for that.

Mike Kozak: 6-0, and none of which you all still have in front of you, or some have been sunk already. That's in front of us. Okay, that's, that was it. Thank you for, thanks for answering that. I'll turn it over.

Speaker Change: We're looking at about $60 million for that.

Speaker Change: 6-0 and of which has none of which you all have still in front of you or some has been sunk already.

Robert McEwen: Okay, that's that was it. Thank you for thanks for answering that.

Speaker Change: That's in front of us. Okay, that was it. Thanks for answering that. I'll turn it over. You're welcome, Mike.

Robert McEwen: I'll turn it over. You're welcome, Mike.

Operator: Our next question comes from Alan Barry from Rocks and Stocks News. Your line is now open. Hi Alan.

Alan Barry: Our next question comes from Alan Barry from Rocks and Stalks News.

Speaker Change: Our next question comes from Alan Barry from Rocks and Stocks News. Your line is now open.

Alan Barry: Your line is now open. Hi, Alan. Hello, I'm taking for taking my call.

Alan Barry: Hi Allen. Hello, I'm thankful for you taking my call.

Speaker Change: Hi, Alan. Hello, and thank you for taking my call.

Alan Barry: Now, happy to. Every major mining company seems to be interested in getting into copper. The cover is fairly bare when it comes to copper development projects that rank in the size that a major would be interested in.

Alan Barry: Oh, happy to, um, every major mining company seems to be interested in getting into copper. However, the cupboard is fairly bare when it comes to copper development projects that rank in the size that a major would be interested in. Highlight With DHP and the Lundin taking a run at Philo, I think it gives us some real world valuation metrics, and I was wondering if you could shine some light on how Las Azulas compares to Pilo del Sol and what's in the deal. Perry

Speaker Change: oh happy to

Speaker Change: Every major mining company seems to be interested in getting into copper. The cupboard is fairly bare when it comes to copper development projects that rank in the size that a major would be interested in.

Rob McEwen: I'd now like to turn the call over to Mr. Rob McEwen, Chief Owner, please go ahead sir. Thank you very much operator.

Rob McEwen: Good morning and welcome ladies and gentlemen. It was a quarter we've all been waiting to see. It was our most profitable quarter since 2016. It was a quarter where our gross profit was 10.8 million and adjusted EBITDA of 7.2 million versus losses recorded in the second quarter of last year. It was a quarter of improved financial liquidity. Our cash was up 77% to 40.7 million. Working capital was up 28% to 29.1 million and our debt remained unchanged at 40 million since year end.

Robert McEwen: Highly with the with the HP and the London taking a run at front field. I think it gives us some real world valuation metrics. And I was wondering if you could shine some light on how lots of Zoolers compares to field of soul and what's in the deal. Compare is very favorably. First of all, lots of Zoolers is a lower altitude than either of Fula del Sol or Jose Maria. In lots of Zoolers is closer to infrastructure, major power lines and highways. We're at least, according to a Goldman Sachs study of a PEA work. We were in the lowest cost quartile compared, and Jose Maria was in the highest.

Speaker Change: Highlight with DHP and the Lundin taking a run at Filo. I think it gives us some real-world valuation metrics.

Speaker Change: And I was wondering if you could shine some light on how Los Azules compares to Pilo del Sol and what's in the deal.

Perry Ing: compares very favorably. First of all, Los Azules is at a lower altitude than either Philo del Sol or Jose Maria. Los Azules is closer to infrastructure, major power lines, and highways. Um.., we're, at least according to a Goldman Sachs study of a PEA work. We were in the lowest cost quartile, and Jose Maria was in the highest. Of course, that might change now if they consolidate those two properties and develop them concurrently.

Speaker Change: compares very favorably

Rob McEwen: It was a quarter of when both McEwen mining and myself increased our investment in McEwen Copper, and based on the last financing of McEwen Copper, the implied value has risen to 947 million dollars, which makes McEwen mining 48.3% interest equal to 457 million dollars. On a per share basis, that is $8.45 behind every fully diluted share of McEwen mining. It's worth noting that this value is greater than our entire market capitalization today.

Speaker Change: We're um...

Speaker Change: at least according to a Goldman Sachs study of a PEA work.

Speaker Change: We were in the lowest cost quartile and Jose Maria was in the highest. Of course, that might change now if they consolidate those two properties and develop them concurrently.

Robert McEwen: Of course, that might change now that they if they consolidate those two properties and develop them concurrently. They'll see some reduction in capital. We lost a Zoolers will probably be significant less capital because we're going to be a heap leach operation as opposed to conventional milling operation, so much less capital. And from based on the published resources. Philo and Jose Maria, we have a larger resource than the combined resources of those two deposits and a higher copper grade. That might change with new work coming out of new resource studies out of those two, but at the moment, based on the published resources, we're larger and higher copper grade.

Perry Ing: So you'll see some reduction in capital. Los Azules will probably be significantly less capital because we're going to be a heap leach operation as opposed to a conventional milling operation, so much less capital, and based on the published resources. Filo and Jose Maria, we have a larger resource than the combined resources of those two deposits and a higher copper grade. That might change with new work coming out of..., new resource studies out of those two, but at the moment, based on the published resources, we're larger and higher copper grade, so I think we compare very favorably.

Speaker Change: You'll see some reduction in capital We

Speaker Change: loillas will probably be significant and less capital because we're going to be a heap lyach operation as opposed to a conventional milling operation so much less capital

Speaker Change: And from a, based on the published resources,

Speaker Change: Filo and Jose Maria, we have a larger resource than the combined resources of those two deposits and a higher copper grade.

Rob McEwen: Last night, our closing share price was $8 on the Nike, and I want to remind you that McEwen mining also owns a portfolio of six royalties where the largest is a 1.25% NSR on Los Azulis. We also own three cash flowing gold and silver mines. Management has done an internal calculation for the value of our assets, and it ranges from a low of $20 a share to $50 a share.

Speaker Change: That might change with new work coming out of, new resource studies out of those two, but at the moment, based on the published resources, we're larger and higher copper grade. So, I think we compare very favorably.

Robert McEwen: So I think we compare very favorably.

Robert McEwen: My second question was on the gold front. Gold has been in a very powerful gold bull market, and today I think that the argument can be made that really only the largest gold stocks have joined the party. And therefore, it looks like there's some attractive opportunities down the gold stock food chain.

Alan Barry: My second question was on the gold front. Gold has been in a very powerful bull market, and today, I think that the argument can be made that really only the largest gold stocks have joined the party, and therefore, it looks like there's some attractive opportunities down the gold stock food chain. Are there any comments you can make as far as possible strategic investments or your thoughts on those kinds of opportunities?

Speaker Change: My second question was on the gold front. Gold has been in a very powerful global market.

Speaker Change: and today i think that the argument can be made that really only the largest gold stocks have joined party and therefore it looks like this some attractive offer opportunity

Rob McEwen: Q2 was a quarter when the investment outlook for Argentina improved dramatic. Markley. I'll call it Malay Magic after the president, Malay. The Argentinian government approved the most important change for foreign direct investment in the country in the last 20 years. It involves lower taxes, removal of exchange controls, financial stability of the agreement, and more for major projects. The impact will be significant on McEwen Copper's Los Azulis NPV. And after the quarter, and appearing to take advantage of Argentina's legislative changes, the world's largest mining company, VHP, jumped into Argentina's copper scene in a very big way, leading a $4.4 billion transaction with Lundine mining to acquire Philo mining and its Philo del Sol deposit and the Jose Maria deposit.

Robert McEwen: Is there any comment you can make as far as possible strategic investments or your thoughts on that, those kinds of opportunities? Very clearly, the majors have got the most benefit out of the increase in the gold price. You're seeing it in their improved cash flow. A lot of the junior producers and explorers, there'll be a rotation out of the seniors into the intermediates and juniors as the price of gold stays where it is or goes higher. And we're a case in point. We were a high-cost producer, and with the higher gold price, our margins started moving up quite smartly.

Speaker Change: down the gold stock food chain. Is there any comments you can make as far as possible strategic investments or your thoughts on that, those kind of opportunities?

Rob McEwen: Very clearly, the majors have got the most benefit out of the increase in the gold price. You're seeing it in their improved cash flow. A lot of the junior producers and explorers. There'll be a rotation out of the seniors into the intermediates and juniors as the price of gold stays where it is or goes higher. And we're a case in point.

Speaker Change: there'll be a rotation out of the seniors into the intermediates and juniors

Alan Barry: We were a high-cost producer, and with the higher... gold price, our margins started moving up quite smartly, and that's going to happen across the sector and then the juniors. Once the seniors get more flush with cash, they're going to be looking at how they grow their resources and production, and they'll be looking down into the intermediate and junior markets. So... It's a good time for investors, in my mind, to be looking at smaller companies right now.

Speaker Change: as the price of gold stays where it is or goes higher.

Speaker Change: um

Speaker Change: And we're a case in point. We were a high-cost producer and with a higher...

Speaker Change: Gold price, our margins started moving up quite smartly.

Robert McEwen: And that's going to happen across the sector. And then the juniors, once the seniors get more flush with cash, they're going to be looking how do they grow their resources and production. And they'll be looking down into the intermediate and junior market. So it's a good time for investors in my mind to be looking at the smaller companies right now.

Speaker Change: And that's going to happen across the sector.

Speaker Change: Once the seniors get more flush with cash, they're going to be looking how do they grow their resources and production, and they'll be looking down into the intermediate and junior market.

Rob McEwen: Not only is this transaction a tremendous expression of confidence in Argentina, but it also sets a new value for large copper deposits in the country. Based on the current published resources of Philo del Sol and Jose Marina, Los Azulis has a deposit that is larger than the combined resources of both of those deposits, and a higher copper grade.

Speaker Change: it's good time for investors in my mind to be looking at the smaller companies right now

Alan Barry: Thank you very much for my taking my call. Congratulations on the get back in the right track to 2016.

Operator: Thank you very much for taking my call. Congratulations on getting back on the right track since 2016. And I'll turn it over and back over.

Speaker Change: Thank you very much for taking my call. Congratulations on getting back in the right track since 2016. And I'll turn it over and back over.

Robert McEwen: And I'll turn it over back over. Thank you.

Winnie Coffee: Next, our next question comes from Winnie Coffee individual. Thank you.

al: Thank you, Al.

Operator: Next. Our next question comes from Winnie Coffey. Individual. Your line is now open.

al: Our next question comes from Winnie Coffey, individual. Your line is now open.

Winnie Coffey: Thank you. This is your husband, David, and we'd like to inquire about the MQMNW. We were involved with that, and we understand that it's a new project, and I just wonder if there's going to be any new movement in that direction.

Winnie Coffee: This is our husband and David. And we'll have to inquire about the MQMNW. We're involved with that, and we understand that's a new project. I just want to know if there's going to be any do you move in that direction? I'm not familiar with that name. MQMW, what's that? It's the one. MQMNW. Yeah. MQMNW is an OTC ticker for MQM mining warrants, which are out of the money. And last trade is David, for a low, very low price. So, what is your question about those particular warrants? Well, I just curious if there's any kind of an IPO coming in on a project that was supposedly that involved a new project I would assume in this.

al: Thank you. This is your husband, David. And we'd like to inquire about the MQMNW, if we're involved with that. And we understand that's a new project, and I just wonder if there's going to be any new movement in that direction.

Rob McEwen: All three of these deposits are located in San Juan Province, a jurisdiction that the Fraser Institute ranks as one of the best for mining in South America.

David: I'm not familiar with that name. MQMW, what's that?

Operator: At this point, I'd like to open the call for questions and answers. Thank you. We are now opening the floor for questioning answer session. If you'd like to ask a question, please press star one. Again, that star one on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in.

Speaker Change: i'm not familiar with that name m qm w what's done

David: It's the war.

Speaker Change: It's the warrants.

Speaker Change: and oh you it's end debut

Rob McEwen: Warren's QMNW is an OTC ticker for McEwen Mining Warrants, which are out of the money and last traded for a very low price. So what is your question about those particular warrants?

Speaker Change: QMNW is an OTC ticker for McEwen Mining Warrants.

Speaker Change: which are out of the money and last traded in the

Speaker Change: for a very low price. So what is your question about those particular warrants?

Jake Sikowski: Our first question comes from Jake Sikowski from Alliance Global Partners, your line of snow. A robbing team. Thanks for taking my questions and congrats on the corner. Thanks, Jake.

David: Well, I'm just curious if there's any kind of an IPO coming in on a project that was supposedly that involved. It's a new project, I would assume, and we've been kind of waiting for an IPO for a long time over a long time. Uh-huh, uh-huh, uh-huh

Speaker Change: Well, I'm just curious if there's any kind of an IPO coming in on a project that was supposedly that involved. It's a new project, I would assume, and we've been kind of waiting for an IPO for a long time over a long time.

Robert McEwen: We've been kind of waiting for an IPO for a long time over a long time. No, so I think just to maybe clear up some confusion. The warrants were issued some time ago and don't aren't related to any particular project. Those, and as I said, those warrants are out of the money. They expire towards the end of this year in November of 2024.

Rob McEwen: Just starting with the ground conditions at Fox, I'm just curious, is this the one off at a specific scope, or are you seeing this in other areas underground as well? No, that's nice for the question, Jake. No, it's a single area of the upper level of the mine. It's now It's along the contact between Orrin Waste and on the Waste side there was some less competent rock which basically failed and once we once we realized exactly what was going on, we backfill that area with cemented fill and so it's totally stabilized now and so the path forward is to define exactly how we're going to recover the rest of that ore and that will be by using significantly smaller bites or significantly smaller sizes of stopes that will have absolute control of.

Rob McEwen: No, so I think just to maybe clear up some confusion, the warrants were issued some time ago and aren't related to any particular project. You know, those, and as I said, those warrants are out of the money. They expire towards the end of this year, in November of 2024.

Speaker Change: No, so I think just to maybe clear up some confusion, the warrants were issued some time ago and aren't related to any particular project.

Speaker Change: And as I said, those warrants are out of the money. They expire towards the end of this year, in November of 2024.

Robert McEwen: So, with regard to new projects, though, I mean I can address, you know, we are in the process of acquiring Timberline Resources. That company has assets in Nevada, which are good synergies with our existing mind there. That acquisition will hopefully close towards the end of this month in August. And we're looking forward to working on those projects. That's the only current acquisition that we have in the pipeline. So that wouldn't involve the warrants circumstance, would it? No, not at all. Okay.

Rob McEwen: So with regard to new projects, though, I can address, you know, we are in the process of acquiring Timberline Resources. That company has assets in Nevada that have good synergies with our existing mine there. That acquisition will hopefully close towards the end of this month, in August, and we're looking forward to, you know, working on those projects. That's the only current acquisition that we have in the pipeline. So that wouldn't wouldn't work.

Speaker Change: So, with regard to new projects, though, I mean, I can address, you know, we are in the process of acquiring Timberline resources.

Speaker Change: That company has assets in Nevada which have good synergies with our existing mine there.

Speaker Change: That acquisition will hopefully close towards the end of this month in August and we're looking forward to working on those projects.

Speaker Change: that's the only current acquisition that we have in in the pipe pering

David: So that wouldn't involve the warrant circumstance, would it? No, not at all. Not at all. Well, I guess you've answered our question. No problem. Thank you, David.

Speaker Change: So that wouldn't involve the warrant circumstance, would it? No, not at all. Not at all, okay.

Robert McEwen: Well, I guess you answer that question. No problem.

Speaker Change: Well, I guess you've answered our question.

Winnie Coffee: Thank you, David. Thank you.

Operator: Our next question comes from John Moran, individual. Your line is now open.

Speaker Change: no thank you david thank you

John Moran: Our next question comes from John Moran. Individual. Your line is now open. Hello, John. Hi.

john maran: our next question comes from john maran individual your line is now open

Rob McEwen: So I don't think we have a big concern about it and I guess the mistake we made was that we didn't recognize that that rock adjacent to that particular stope being waste was in fact as incompetent as it turned out to be. So I think it's a one of that's now under control we've had our rock mechanics consultants advising us on how to put say more security around what we're doing there and I guess I'm reasonably comfortable that we're not going to see that again.

John Moran: Hi, thank you. My family and I have been shareholders for over 12 years. My question is, why do you think that McEwen Copper hasn't been reflected in the stock price, and what do you think it will take to change that?

John Moran: Thank you. My family and I have been the shareholders for over 12 years.

john maran: Hi, thank you. My family and I have been shareholders for over 12 years. My question is, why do you think that the McEwen copper hasn't been reflected in the stock price and what do you think it will take to change that?

John Moran: My question is, why do you think that the McEwen copper hasn't been reflected in the stock price, and what do you think it will take to change that?

Rob McEwen: That's a good question. We separated the copper and financed it independently starting in, I guess we closed the first deal in 2022, September. Since that time, our share prices have outperformed the Dow, the NASDAQ, the price of gold, silver, copper, the GDX, and the GDXJ. When we separated the copper, it was to gain visibility for it. I do think that the recent transaction with BHP and Lundin Mining on two large copper projects in the same province in Argentina as... Los Azulis, our Los Azulis property, will get people thinking about its value.

Robert McEwen: Good question.

Robert McEwen: We separated the copper and financed it independently starting in, I guess we closed the first deal in 2022, September. Since that time, our share prices outperformed the Dow, the Nasdaq, the price of gold, silver, copper, the GDX, and the GDXJ. So when we separated the copper, it was to gain visibility for it. I do think that the recent transaction with BHP and lending mining on two large copper projects in the same province in Argentina as loss of zealous property will get people thinking about its value. I think we're still at the beginning. We've done a great deal of drilling, and we'll have a feasibility study out early next year.

Speaker Change: That's a good question. We separated the copper

Speaker Change: and financed it independently starting in, I guess we closed the first deal in 2022, September . Since that time, our share prices outperformed

Speaker Change: The Dow, the NASDAQ, the price of gold, silver, copper, the GDX, and the GDXJ.

Rob McEwen: Okay, that's helpful thanks to that color and then just switching over to gold bar get a strong quarter there and it seems like turn around efforts have really fully taken hold. We expect sub call it $1500 an ounce ASIC going forward there are there anything specific to Q2 that that drove that major decrease in cost. Yeah, I don't think that there's anything that drove that cost down it's basically because the production is you know I guess so far has been slightly above our target and you know so that's helping that in fact at the present time we're doing a significant amount of drilling.

Speaker Change: When we separated the copper, it was to gain visibility for it. I do think that the recent transaction with BHP and Lundin Mining on

Speaker Change: two large copper projects in the same province in argentina as

Speaker Change: Los Azulis, our Los Azulis property will

Speaker Change: Get people thinking about its value.

Rob McEwen: I think we're still at the beginning. We've done a great deal of drilling, and we'll have a feasibility study out early next year. So, I think all of that will be reflected in what should be a higher price for the value of that project.

Speaker Change: I think we're still at the beginning. We've done a great deal of drilling and we'll have a feasibility study out early next year.

Robert McEwen: So, I think all of that will be reflected in; should be a higher price for the value of that project. The copper price.

Speaker Change: So, I think all of that will...

Speaker Change: be reflected in, should be a higher price for the value of that project.

John Moran: The Copper Prices. Thank you very much. Oh, good. You're welcome. Good. All right.

Rob McEwen: So far this year we've done about $5 million of drilling so that is also included in the cost there so I think we anticipate that as you know as long as we can move the right amount of material that the cost will stay in that same area or you know it might move up slightly but it's. So it seems to be predictable at this time based on the data we have.

John Moran: Thank you very much.

Rob McEwen: I was just going to say the price has weakened in the last..., in the last three months relative to gold, the value out of the market. I believe we followed a lot of the copper stock in terms of price direction.

Robert McEwen: You're welcome.

Speaker Change: Thank you very much.

Robert McEwen: All right, so I'm going to say the prices weaken in the last, well, in the last three months relative to gold. So, it's taken a bit of the value out of the market. I believe we've followed a lot of the copper stocks in terms of price direction. Right.

Speaker Change: in the last three months relative to gold. So it's taken a bit of the

Speaker Change: The value out of the market. I believe we followed a lot of the copper stocks.

Speaker Change: in terms of

Jake Sikowski: That's great thanks again.

Speaker Change: Price Direction

John Moran: Okay. Thank you very much. You're welcome.

Robert McEwen: Thank you very much.

Robert McEwen: You're welcome.

Speaker Change: Thank you very much. You're welcome.

Phil Powers: Our next question comes from Phil Powers from McEwen Mining. Your line is now open. Hi, Bill. Hi, Rob. Thanks for taking my call. A couple of quick questions. As far as looking at the financials, it appears that San Jose is generating quite a bit of revenue and a fair bit of cash these days. And I was wondering if there's been any update you've gotten from Hot Shield regarding a dividend. And if so, is this going to be? Are there any plans for regular dividends?

Unknown Executive: Thank you.

Operator: Our next question comes from Bill Powers from McEwen Mining. Your line is now open.

Speaker Change: Our next question comes from Bill Powers from McEwen Mining. Your line is now open.

Michael Ihle: Our next question comes from Michael Ihle from H.C. Wainwright, your line is now. Hey, Robert James, thanks for taking my questions. Hope all is doing well. Good, Heiko.

Bill Powers: Hi Bill. Hi Rob. Thanks for taking my call.

Bill Powers: A couple of quick questions. As far as looking at the financials, it appears that San Jose is generating quite a bit of revenue and a fair bit of cash these days. And I was wondering if there's been any update you've gotten from Hotshield regarding a dividend, and if so, is this going to be on or are there any plans for regular dividends?

Bill Powers: Hi Bill. Hi Rob. Thanks for taking my call. A couple quick questions. As far as looking at the financials, it appears that San Jose is generating quite a bit of revenue and

Speaker Change: a fair bit of cash these days and i was wondering if there's been any update he's gotten from howx shield regarding a dividend and if so this's going to be on are there any plans for regular inance

Perry Ng: Hi, Bill. It's Perry. Thanks for the question. So we did receive a small dividend in the second quarter, but obviously, you know, given where gold silver prices are, you know, we would want to see a more robust dividend. I would say we've had very good dialogue with Hot Shield. We're spending some of the free cash flow generated this year on a mill expansion. So that will take throughput up to 2,000 times per day. So that project is going well. And we should see the benefits of benefits of that next year. And I guess what we've committed to do with Hot Shield is look at the cash generation.

Perry Ing: Hi Bill, it's Perry. Thanks for the question. So we did receive a small dividend in the second quarter, but obviously, you know, given where gold and silver prices are, we would want to see a more robust dividend. I would say we've had very good dialogue with Hoss Shield. We're spending some of the free cash flow generated this year on a mill expansion, so that will take throughput up to 2000 tonnes per day.

Perry Ing: Hi, Bill. It's Perry. Thanks for the question. So we did receive a small dividend in the second quarter, but obviously, you know, given where gold and silver prices are, you know, we would want to see a more robust dividend. I would say we've had very good dialogue with Hoss Shields.

Perry Ng: Mike, do you want to address that question? Sure. So we have done some some interim calculations. What the regime application means for our long and by no means would like to invalidate our existing P.A. But to give you an idea, the after tax changes with the conservative application of the regime would be in the area of about more than 30% $960 million. So this makes projects, which is not our case, but which makes other projects that were not that attractive now, now attractive because what Argentina has done is, and again, based on companies and management estimates and has brought Argentina once qualifying for the region, which we believe, for example, we do on similar footing with over tax burdens such as Chile.

Speaker Change: We're spending some of the free cash flow generated this year on a mill expansion. So that will take throughput up to 2,000 tons per day. So that project is going well and we should see the benefits of that.

Perry Ing: So that project is going well, and we should see the benefits of that next year. And I guess what we've committed to do with Hoss Shield is look at the cash generation this quarter and potentially, you know, expect to receive a more sizable dividend in the fourth quarter this year. So obviously, silver has come off a little bit, but, you know, gold is still above $2400 as of today. So, as you said, it is still generating positive cash flow, and the mine seems to be performing quite well.

Speaker Change: Next year, and I guess what we've committed to do with Hoss Shields is look at the cash generation this quarter and potentially, you know, expect to receive a more sizable dividend in the fourth quarter of this year. So, obviously, silver has come off a little bit, but, you know, gold is still above $2,400 as of today.

Perry Ng: This quarter and potentially, you know, expect to receive a more sizable dividend in the fourth quarter this year. So obviously, silver has come off a little bit, but, you know, gold is still above 2400 as of today. So, as you said, still generating positive cash flow and the mind seems to be performing quite well. Yes.

Speaker Change: So, as you said, still generating positive cash flow and the mine seems to be performing quite well.

Bill Powers: Yes, and yeah, thank you. And my second question is, I know you, at least Bill and maybe a couple other members of the team, went down to Mexico recently, and it looks like you're making some adjustments to the permit, and I was just wondering if you could give us a little more color on some details regarding some of the adjustments to the mine plan, as well as if this is going to raise the cost of getting the permit. A permit and, you know, potentially, production.

Perry Ng: And yeah, thank you.

Perry Ng: And my second question is I know you, at least Bill, and maybe a couple other members of the team went down into Mexico recently. And it looks like you're making some adjustments to the permit. And I was just wondering if you could give us a little more color on some details regarding some of the adjustments to the mind, you know, to the mind plan, as well as if this is going to raise the cost to getting towards a permit and a, you know, potentially production. Yeah. So thank you very much for the question. So, yeah, at this point, we're anticipating receiving the permit.

Speaker Change: Yes. And yeah, thank you. And my second question is, I know

Perry Ng: It also includes a couple of benefits that help significantly during the construction phase, which is basically fast VAT recoveries. So those are the things that are very, very helpful for projects such as ours. It's helpful. Yeah, the tax rate is going from 35 to 25%. And there are other benefits. As Mike mentioned, VAT refunds accelerated. And customs importation is speeded up. It's a big amount for us and others in the country. Yeah, no 100%. 100%. And I mean, things seem to be actually getting done there from everything you read in the press.

Speaker Change: You, at least Bill, and maybe a couple other members of the team went down to Mexico recently and

Speaker Change: It looks like you're making some adjustments to the permit, and I was just wondering if you could give us a little more color on

Speaker Change: some details regarding some of the adjustments to the mine plan, as well as if this is going to raise the cost to getting towards a permit and a potentially production.

Perry Ing: Yeah, so thanks very much for the question. So yeah, at this point, we're anticipating receiving the permit, and unfortunately, I guess, as you probably know recently, there have been elections in Mexico so the new, new team is now getting into place on the government side. We have had some discussions with responsible agents in Mexico about our permits, and there's an anticipation, I guess, that's been created where we think we might get the permit late in Q3 or early in Q4.

Speaker Change: Yeah, so thanks very much for the question. So, yeah, at this point we're anticipating

Perry Ng: And, you know, unfortunately, I guess, as you probably know, recently, there's been elections in Mexico. So the new, the new team is now getting into place on the government side. We have had some discussions with the responsible agents in Mexico about our permitting, and there's an anticipation. I guess it's been created where we think we might get the permit and. late in Q3 or early in Q4, but you know, as in all permitting situations, there's not a lot of clarity around when permits are given. Meanwhile, we're also looking at other opportunities to reduce the capital cost and do some other arrangements in terms of the permitting to make that less onerous, you know, on the government. And so, I would say at this point we're in a state of flux and hope to have, you know, some better news for ourselves and for our shareholders later in Q3 and early in Q4.

Speaker Change: receiving the permit. And, you know, unfortunately, I guess, as you probably know, recently, there's been elections in Mexico. So the new the new team is now getting into place on the government side.

Unknown Executive: Profitability in the quarter was obviously pretty good.

Speaker Change: We have had some discussions with the responsible agents in Mexico about our permitting, and there's an anticipation, I guess, that's been created where we think we might get the permit

Unknown Executive: If what kind of cash flow, should we expect additional investments into your asset base, but could be beyond what you're currently forecasting? Is there an internal gold price? Is there an internal cash flow metric that you have? Or is this sort of just a learning by doing thing where if excess funds are there, we'll figure it out then.

Perry Ing: But as in all permitting situations, there's not a lot of clarity around when permits are given. Meanwhile, we're also looking at other opportunities to reduce capital costs and make some other arrangements in terms of the permitting to make that less onerous on the government. And so I would say at this point we're in a state of flux and hope to have, you know, some better news for ourselves and for our shareholders later in Q3 and early in Q4. OK.

Speaker Change: arrangements in terms of the permitting to make that less onerous you know on the government and so I would say at this point we're in a state of flux and hope to have

Perry Ng: And as built at Goldbar, you know, we're spending money on exploration there, and we're having some tangible results, which we hope we can share in the future. But, you know, all these things, you know, we hope will provide incremental production increases for the coming years.

Speaker Change: You know, some better news for ourselves and for our shareholders later in Q3 and early in Q4.

Bill Powers: Okay, thank you very much.

Perry Ng: Okay, thank you very much. You're welcome.

Speaker Change: OK, thank you very much.

Operator: Thanks, Bill. Before you move on to our next question, again if you'd like to ask a question, please press star one on your telephone keypad. That star one on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in.

Operator: Before we move on to our next question, again, if you'd like to ask a question, please press star 1 on your telephone keypad. That's star 1 on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in. Our next question comes from Patrick Shearn on. Private Investor, your line is now open.

Bill Powers: You're welcome. Thanks, Bill.

Unknown Executive: That's a very fair answer. Thank you very much. I'll get back in cute. Thanks, Aiko.

Speaker Change: Before you move on to our next question, again if you'd like to ask a question please press star 1 on your telephone keypad. That's star 1 on your telephone keypad.

Mike Kozak: Our next question comes from Mike Kozak from Cantor Fitzgerald. Your line is now open. Yeah, good morning, Robin.

Speaker Change: We will pause for a brief moment while we wait for the questions to come in.

Patrick Shen: Our next question comes from Patrick Shen from Private Investor. Your line is now open. Hello, Patrick.

Rob McEwen: Hello, good morning.

Unknown Executive: Yeah, just a couple of questions from me.

Speaker Change: Our next question comes from Patrick Shearn from Private Investor. Your line is now open.

Rob McEwen: First, have you, have you guys set a budget yet for the 2024 2025 Exploration season at Los Angeles? Or is it going to depend on how much of the 70 million comes in between now and the end of the year? We've done most of the drilling for the feasibility study. So the big drilling campaign is finished. We will be drilling, looking at that new deposit or new copper showing close to Los Angeles. But it won't be anywhere near the type of expenditure we did this year. Okay, that's helpful.

Patrick Shen: Good morning, Mr. McEwen and team. Just wanted to find out if there's any updates on the regi from what I could gather through the message boards and some of the internet research. It's been debated, but it seems very unclear what benefits there are.

Patrick Shearn: Good morning, Mr. McEwen and team. Just wanted to find out if there's any updates on the REGI. From what I could gather through the message boards and some of the Internet research, it's been debated, but it seems very unclear what... what benefits there are.

Speaker Change: Hello, Patrick.

Patrick Shearn: Good morning Mr. McEwen and team. Just wanted to find out if there's any updates on the REGI.

Patrick Shearn: From what I could gather through the message boards and some of the internet research, it's been debated, but it seems very unclear what...

Speaker Change: what benefits is

Michael Meding: There are there are many Michael meeting our VP in general manager of McEwen Copper could give you a concise statement of that and we'll be putting out a press release today in the appendix of it will be a discussion. It has been made in other features. So if I may give you a good state of the regi, the regi is part of the law package that has been signed into law and has been discussed in the lower house in the Senate and is now enacted. The provinces are in the course of adhering to that law.

Rob McEwen: There are many. Michael Meding, our VP and General Manager of McEwen Copper, could give you a concise statement of that, and we'll be putting out a press release today. In the appendix of it, there will be a discussion. It has many positive features.

Speaker Change: There are. There are many.

Rob McEwen: And then kind of a follow-up I had to that was, you know, how much do you have to spend on the technical work related to the feasibility study? We're looking at about $60 million for that. $60 million of which has none of which you all have still in front of you or some has been sunk already. That's in front of us.

Speaker Change: Michael Meding, our VP and General Manager of McEwen Copper, could give you a concise statement of that, and we'll be putting out a press release today. In the appendix of it will be a discussion.

Speaker Change: It has many positive features.

Michael Meding: So if I may give you a cool state of the video, the RIGI is part of a law package that has been signed into law and has been discussed in the lower house, in the Senate, and is now enacted. The provinces are in the process of adhering to that law. The law is active.

Mike Kozak: Okay, that's that was it. Thank you for thanks for answering that. I'll turn it over. You're welcome, Mike.

Michael Meding: Sure, so if I may give you a current state of the VG.

Speaker Change: The RIGI is part of a law package that has been signed into law and has been discussed.

Alan Barry: Our next question comes from Alan Barry from rocks and stalks news. Your line is now open. Hi, Alan.

Speaker Change: in the lower house, in the Senate, and it's now enacted.

Alan Barry: Hello, I'm taking for taking my call. Now, happy to.

Michael Meding: The law is active. What does it mean to be beneficiary of this law is that the main benefits include corporate income tax reduction from 35% to 25%. So 10 percentage points decrease in corporate takes rate, accelerated depreciation, unlimited carry forward of losses, and no limitations of deduction of interest for five years. Tax on dividend reduced from seven to 3.5%, and relief of withholding tax on some payments to foreign beneficiaries, which is important for big and such. Bank tax transaction tax, which was before 1.2%, would be fully credible against income tax, and the muni municipalities and the provinces adhering to the law will be banned from increasing taxes to the project.

Patrick Shearn: The provinces are in the process of adhering to that law, the law is active.

Michael Meding: What it means to be a beneficiary of this law is that the main benefits include corporate income tax reduction from 35% to 25%. 10 percentage points decrease in the corporate tax rate. Accelerated Depreciation.

Speaker Change: What does it mean to be beneficiary of this law is that the main benefits include corporate income tax reduction from 35% to 25%, so 10 percentage points decrease in corporate tax rates. Accelerated depreciation.

Unknown Executive: Every major mining company seems to be interested in getting into copper.

Rob McEwen: The cover is fairly bare when it comes to copper development projects that rank in the size that a major would be interested in. Highly with the with the HP and the London taking a run at front field. I think it gives us some real world valuation metrics.

Michael Meding: Unlimited carry-forward of losses, no limitations on deduction of interest for five years, tax on dividends reduced from 7% to 3.5%, and relief of withholding tax on some payments to foreign beneficiaries, which is very important for big efforts like this. Bank tax, and transaction tax, which was before 1.2%, would be fully taxable against income tax, and the municipalities and the provinces adhering to the law will be banned from increasing taxes on the project.

Speaker Change: Unlimited carry-forward of losses, no limitations of deduction of interest for five years, tax on dividends reduced from 7% to 3.5%, and relief of withholding tax on some payments to foreign beneficiaries, which is very important for big infrastructure projects.

Rob McEwen: And I was wondering if you could shine some light on how lots of Zoolers compares to field of soul and what's in the deal. Compare is very favorably. First of all, lots of Zoolers is a lower altitude than either of Fula del Sol or Jose Maria in lots of Zoolers is closer to infrastructure, major power lines and highways. We're at least according to a Goldman Sach study of a PEA work. We were in the lowest cost quartile compared and Jose Maria was in the highest.

Speaker Change: Bank transaction tax, which was before 1.2%, will be fully credible against income tax, and the municipalities and the provinces adhering to the law will be banned from increasing taxes to the project.

Michael Meding: For the construction, it means that the 20% VAT that in Argentina takes some time to recover has a new mechanism to be recovered very quickly. The state will issue certificates that can be directly used for text payments.

Michael Meding: For construction, it means that the 20% VAT that in Argentina takes some time to recover has a new mechanism to be recovered very quickly. The state will issue certificates that can be directly used for tax claims. So if you're interested to learn more about that, please drop us a note, and we can send you documentation. Yeah, but what is also important to note is, specifically, important exports are free from licenses and duties.

Speaker Change: For the construction it means that the 20% VAT that in Argentina takes some time to recover has a new mechanism to be recovered very quickly.

Speaker Change: The state will issue certificates that can be directly used for tax payments.

Michael Meding: So if you're interested to learn more about that, please drop us a note, and we can send you documentation. But what is also important to notice specifically, important exports are free from licenses and duties, exports after a certain amount of time. At the moment, a crop up project has a 4.5% or a 0 to 8% sliding scale export duty. And that will go away with the implementation of the region after a certain amount of time. And it gives you 30 to 40 years of text stability that you can litigate either in-country or outside of the country.

Speaker Change: So if you're interested to learn more about that, please drop us a note and we can send you documentation. But what is also important to note is, specifically, important exports are free from licenses and duties.

Rob McEwen: Of course, that might change now that they if they consolidate those two properties and develop them concurrently. They'll see some reduction in capital. We lost a Zoolers will probably be significant less capital because we're going to be a heap leach operation as opposed to conventional milling operation, so much less capital. And from based on the published resources. Philo and Jose Maria, we have a larger resource than the combined resources of those two deposits and a higher copper grade.

Michael Meding: Exports After a certain amount of time, at the moment, COPAP projects have a 4.5 or a zero to 8% sliding scale export duty, and that will go away with the implementation of the REGIE after a certain amount of time. And it gives you 30 to 40 years of tax stability that you can litigate either in-country or outside of. So it's very beneficial for mining.

Speaker Change: exports after a certain amount of time. At the moment COPAP project has a 4.5

Speaker Change: or a 0 to 8% sliding scale export duty. And that will go away with the implementation of the REGIE after a certain amount of time. And it gives you 30 to 40 years of tax stability that you can litigate either in country or outside of the country.

Michael Meding: So it's very beneficial for mining projects.

Rob McEwen: That might change with new work coming out of new resource studies out of those two, but at the moment based on the published resources, we're larger and higher copper grade. So I think we compare very favorably.

Speaker Change: So, it's very beneficial for mining projects.

Patrick Shen: Okay, so it sounds like it's a done deal. There's no more debate that needs to be done by the Argentine government in order to have these benefits.

Patrick Shearn: Okay, so it sounds like it's a done deal. There's no more debate that needs to be done by the Argentine government in order to have these benefits.

Speaker Change: Okay, so it sounds like it's a it's a done deal. There's no more debate that needs to be done by the Argentine government in order to have these benefits.

Michael Meding: So what is going to happen now is that the law will be regulated. So the law has been signed into law and has been published in the Official Gazette. And the regulations should be coming out in the next couple of weeks. The provinces that are interested in adhering to that law, they are adhering by a provincial law.

Michael Meding: So what is going to happen now is that the law will be regulated. The law has been signed into law, and it has been published in the official gazette. And the regulations should be coming out in the next couple of weeks. The provinces that are interested in adhering to that law are already adhering via provincial laws. You know that Argentina is pretty much made after the U.S., so natural resources, for example, belong to the provinces.

Speaker Change: So, what is going to happen now is that the law will be regulated, so the law has been signed into law and has been published in the official gazette, and the regulations should be coming out in the next couple of weeks.

Unknown Executive: My second question was on the gold front. Gold has been in a very powerful gold bull market, and today I think that the argument can be made that really only the largest gold stocks have joined the party. And therefore it looks like there's some attractive opportunities down the gold stock food chain.

Speaker Change: The provinces that are interested in adhering to that law

Michael Meding: So you know that the Argentina is pretty much made after the U.S. So natural resources, for example, belong to the provinces. So there is discussion going on in the different provinces. Some have already adhered. The province where we are, we expect this to be approved relatively soon as well. So that you have a full coverage both on the national, as well as provincial and municipal level with the text stability that I mentioned was from 30 to 40 years with all the benefits mentioned.

Speaker Change: They are adhering via provincial laws. You know that the Argentina is pretty much made after the U.S. So natural resources, for example, belong to the provinces.

Michael Meding: So there is discussion going on in the different provinces. Some have already agreed. The province where we are, we expect this to be approved relatively soon as well, so that you have full coverage both on the national as well as the provincial and municipal levels with the tax stability that I mentioned was from 30 to 40 years with all the benefits mentioned.

Speaker Change: So, there is discussion going on in the different provinces, some have already adhered. The province where we are, we expect this to be approved relatively soon as well, so that you have a full coverage both on the national as well as provincial and municipal level with the tax stability that I mentioned was from 30 to 40 years with all the benefits mentioned.

Rob McEwen: Is there any comment you can make as far as possible strategic investments or your thoughts on that, those kind of opportunities? Very clearly the majors have got the most benefit out of the increase in the gold price. You're seeing it in their improved cash flow. A lot of the junior producers and explorers, there'll be a rotation out of the seniors into the intermediates and juniors as the price of gold stays where it is or goes higher.

Patrick Shen: Okay, thank you so much, Chairman. And I appreciate all the hard work that you guys have done. Thank you, Patrick.

Patrick Shearn: Okay, thank you so much, gentlemen, and I appreciate all the hard work that you guys have done.

Speaker Change: Okay, thank you so much, gentlemen, and I appreciate all the hard work that you guys have done.

Operator: As you're right now, we don't have any pending questions.

Patrick Shearn: Thank you, Patrick.

Operator: As of right now, we don't have any pending questions. There are no further questions at the moment. Mr. Rob McEwen, I'd like to turn the call over to you. Thank you, Operator, and thank you.

Speaker Change: As of right now, we don't have any pending questions. There are no further questions at the moment. Mr. Rob McEwen, I'd like to turn the call over to you.

Operator: There are no further questions at the moment.

Robert McEwen: Mr. Rob McEwan, I'd like to turn the call over to you. Thank you, operator. And thank you, ladies and gentlemen, for joining us today. As you can see, we're in a good financial position. We've got our drilling is delivering results, and we've made a number of press releases on our exploration results. In the press release that's going out today on Los Angeles. It will be providing additional drill data, the infield drilling. And Argentina is open for business. It's been a pariah for a long time, and I'll call it Malay Magic; it has changed that and been embraced by the government of Argentina.

Rob McEwen: Thank you, operator. And thank you, ladies and gentlemen, for joining us today.

Rob McEwen: Thank you operator and thank you ladies and gentlemen for joining us today. As you can see we're in a good financial position. We've got

Rob McEwen: As you can see, we're in a good financial position. We've got, our drilling is delivering results. We've made a number of press releases on our exploration results. In the press release that's going out today on Los Azules, it will provide additional drill data, the infill drilling data.

Rob McEwen: And we're a case in point. We were a high cost producer and with the higher gold price our margins started moving up quite smartly. And that's going to happen across the sector. And then the juniors once the seniors get more flush with cash they're going to be looking how do they grow their resources and production. And they'll be looking down into the intermediate and junior market.

Speaker Change: Our drilling is delivering results, and we've made a number of press releases on our exploration results. In the press release that's going out today on Los Azules, it will be providing additional drill data, the infill drilling.

Rob McEwen: And Argentina is open for business. It's been a pariah for a long time, and I'll call it Malay magic, has changed that and been embraced by the government of Argentina. So that, plus our improving financial position, I think puts us in a very good position going forward to finance our growth plan.

Speaker Change: And Argentina is open for business. It's been a pariah for a long time. I'll call it Malay magic has changed that and been embraced by the government of Argentina. So that plus our improving financial position.

Unknown Executive: So it's a good time for investors in my mind to be looking at the smaller companies right now.

Robert McEwen: So that, plus our improving financial position, I think puts us in a very good position going forward to finance our growth plan.

Rob McEwen: I think puts us in a very good position going forward to finance our growth plan.

Unknown Executive: Thank you very much for my taking my call. Congratulations on the get back in the right track to 2016. And I'll turn it over back over.

Robert McEwen: Thank you for joining us.

Unknown Executive: Thank you.

Speaker Change: Thank you for joining us.

Operator: Thank you, everyone, for joining today's call.

Rob McEwen: Thank you, everyone, for joining today's call. We hope you have a wonderful day. You may now disconnect.

Operator: We hope you have a wonderful day.

Speaker Change: thank you everyone for joining today's call thiopia a wonderful day you may now dis

Unknown Executive: You may now John Tumazos, Heiko Ihle, Joseph Reagor, John Tumazos, Heiko Ihle, Joseph Reagor, Joseph Reagor, Joseph Reagor, Joseph Reagor, Joseph Reagor.

Winnie Coffee: Next our next question comes from Winnie coffee individual. Thank you.

Speaker Change: You

Winnie Coffee: This is our husband and David. And we'll have to inquire about the MQMNW.

Winnie Coffee: We're involved with that and we understand that's a new project and I just want if there's going to be any do you move in that direction?

Rob McEwen: I'm not familiar with that name. MQMW what's that? It's the one. MQMNW. Yeah. MQMNW is an OTC ticker for MQM mining warrants which are out of the money. And last trade is David, for a low, very low price. So what is your question about those particular warrants? Well, I just curious if there's any kind of an IPO coming in on a project that was supposedly that involved a new project I would assume in this. We've been kind of waiting for an IPO for a long time over a long time.

Rob McEwen: No, so I think just to maybe clear up some confusion. The warrants were issued some time ago and don't aren't related to any particular project. Those, and as I said, those warrants are out of the money. They expire towards the end of this year in November of 2024.

Rob McEwen: So with regard to new projects though, I mean I can address, you know, we are in the process of acquiring Timberline resources. That company has assets in Nevada, which are good synergies with our existing mind there. That acquisition will hopefully close towards the end of this month in August. And we're looking forward to working on those projects. That's the only current acquisition that we have in the pipeline. So that wouldn't involve the warrants circumstance, would it? No, not at all. Okay. Well, I guess you answer that question. No problem. Thank you, David. Thank you.

John Moran: Our next question comes from John Moran. Individual.

John Moran: Your line is now open. Hello, John. Hi. Thank you. My family and I have been the shareholders for over 12 years.

Rob McEwen: My question is, why do you think that the McEwen copper hasn't been reflected in the stock price and what do you think it will take to change that? Good question. We separated the copper and financed it independently starting in, I guess we closed the first deal in 2022, September. Since that time, our share prices outperformed the Dow, the Nasdaq, the price of gold, silver, copper, the GDX and the GDXJ. So when we separated the copper, it was to gain visibility for it.

Rob McEwen: I do think that the recent transaction with BHP and lending mining on two large copper projects in the same province in Argentina as loss of zealous property will get people thinking about its value. I think we're still at the beginning. We've done a great deal of drilling and we'll have a feasibility study out early next year.

Rob McEwen: So, I think all of that will be reflected in, should be a higher price for the value of that project. The copper price. Thank you very much. You're welcome. All right, so I'm going to say the prices weaken in the last, well, in the last three months relative to gold. So, it's taken a bit of the value out of the market. I believe we've followed a lot of the copper stocks in terms of price direction. Right. Thank you very much. You're welcome.

Phil Powers: Our next question comes from Phil Powers from McEwen Mining. Your line is now open. Hi, Bill. Hi, Rob. Thanks for taking my call. A couple of quick questions.

Phil Powers: As far as looking at the financials, it appears that San Jose is generating quite a bit of revenue and a fair bit of cash these days.

Perry Ng: And I was wondering if there's been any update you've gotten from hot shield regarding a dividend. And if so, is this going to be, are there any plans for regular dividends?

Perry Ng: Hi, Bill. It's Perry. Thanks for the question. So we did receive a small dividend in the second quarter, but obviously, you know, given where gold silver prices are, you know, we would want to see a more robust dividend. I would say we've had very good dialogue with hot shield. We're spending some of the free cash flow generated this year on a mill expansion. So that will take throughput up to 2,000 times per day.

Perry Ng: So that project is going well. And we should see the benefits of benefits of that next year. And I guess what what we've committed to do with hot shield is look at the cash generation. This quarter and potentially, you know, expect to receive a more sizable dividend in the fourth quarter this year. So obviously silver has come off a little bit, but, you know, gold is still above 2400 as of today. So as you said, still generating positive cash flow and the mind seems to be performing quite well. Yes.

Unknown Executive: And yeah, thank you.

Phil Powers: And my second question is I know you at least Bill and maybe a couple other members of the team went down into Mexico recently. And it looks like you're making some adjustments to the permit.

Perry Ng: And I was just wondering if you give us a little more color on some details regarding some of the adjustments to the mind, you know, to the mind plan as well as if this is going to raise the cost to getting towards a permit and a, you know, potentially production. Yeah. So thank you very much for the question. So yeah, at this point, we're anticipating receiving the permit. And, you know, unfortunately, I guess, as you probably know recently, there's been elections in Mexico.

Perry Ng: So the new, the new team is now getting into place on the government side. We have had some discussions with the responsible agents in Mexico about our permitting and there's an anticipation. I guess it's been created where we think we might get the permit and, late in Q3 or early in Q4 but you know as in all permitting situations there's not a lot of clarity around when permits are given.

Operator: Meanwhile we're also looking at other opportunities to reduce the capital cost and do some other arrangements in terms of the permitting to make that less onerous you know on the government and so I would say at this point we're in a state of flux and hope to have you know some better news for for ourselves and for our shareholders later in Q3 and early in Q4. Okay, thank you very much. You're welcome.

Operator: Thanks Bill. Before you move on to our next question, again if you'd like to ask a question please press star one on your telephone keypad that star one on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in.

Patrick Shen: Our next question comes from Patrick Shen from private investor. Your line is now open. Hello Patrick. Good morning, Mr. McEwen and team just wanted to find out if there's any updates on the regi from what I could gather through the message boards and some of the internet research. It's been debated but it seems very unclear what benefits is there are.

Michael Meding: There are there are many Michael metting our VP in general manager of McEwen copper could give you a concise statement of that and we'll be putting out a press release today in the appendix of it will be a discussion. It has been made in other features.

Michael Meding: So if I may give you a good state of the regi the regi is part of the law package that has been signed into law and has been discussed in the lower house in the Senate and is now enacted. The provinces are in the course of adhering to that law. The law is active. What does it mean to be beneficiary of this law is that the main benefits include corporate income tax reduction from 35% to 25%.

Michael Meding: So 10 percentage points decrease in corporate takes rate accelerated depreciation unlimited carry forward of losses in no limitations of deduction of interest for five years. Tax on dividend reduced from seven to 3.5% and relief of withholding tax on some payments to foreign beneficiaries which is an important for big and such. Bank tax transaction tax which was before 1.2% would be fully credible against income tax and the muni municipalities and the provinces adhering to the law will be banned from increasing taxes to the project.

Michael Meding: So if you're interested to learn more about that, please drop us a note and we can send you documentation. But what is also important to notice specifically, important exports are free from licenses and duties, exports after certain amount of time. At the moment, a crop up project has a 4.5 or a 0 to 8% sliding scale export duty. And that will go away with the implementation of the region after certain amount of time.

Michael Meding: And it gives you 30 to 40 years of text stability that you can litigate either in-country or outside of the country. So it's very beneficial for mining projects. Okay, so it sounds like it's a done deal. There's no more debate that needs to be done by the Argentine government in order to have these benefits.

Michael Meding: So what is going to happen now is that the law will be regulated. So the law has been signed into law and has been published in the official Gazette. And the regulations should be coming out in the next couple of weeks. The provinces that are interested in adhering to that law, they are adhering by a provincial law. So you know that the Argentina is pretty much made after the U.S. So natural resources, for example, belong to the provinces.

Michael Meding: So there is discussion going on in the different provinces. Some have already adhered. The province where we are, we expect this to be approved relatively soon as well. So that you have a full coverage both on the national, as well as provincial and municipal level with the text stability that I mentioned was from 30 to 40 years with all the benefits mentioned.

Rob McEwen: Okay, thank you so much, Chairman. And I appreciate all the hard work that you guys have done. Thank you, Patrick. As you're right now, we don't have any pending questions. There are no further questions at the moment.

Rob McEwen: Mr. Rob McEwan, I'd like to turn to call over to you. Thank you, operator. And thank you, ladies and gentlemen, for joining us today. As you can see, we're in a good financial position. We've got our drilling is delivering results and we've made a number of press releases on our exploration results in the press release that's going out today on Los Angeles. It will be providing additional drill data, the infield drilling.

Rob McEwen: And Argentina is open for business. It's been a pariah for a long time and I'll call it Malay Magic has changed that and been embraced by the government of Argentina. So that plus our improving financial position, I think puts us in a very good position going forward to finance our growth plan. Thank you for joining us. Thank you everyone for joining today's call. We hope you have a wonderful day.

Unknown Executive: You may now John Tumazos, Heiko Ihle, Joseph Reagor John Tumazos, Heiko Ihle, Joseph Reagor, Joseph Reagor, Joseph Reagor, Joseph Reagor, Joseph Reagor

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