Q2 2024 McEwen Mining Inc Earnings Call

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

Operator: 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 of Finance, Stefan Spears, Vice President Corporate Development, Michael Meding, Vice President and General Manager of McEwen Copper, and Carmen. General Counsel and Secretary.

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 Diges.

Carmen Diges: 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.

Speaker Change: 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.

Robert McEwen: Thank you very much, Operator. Good morning and welcome, ladies and gentlemen.

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

Robert McEwen: It was a quarter we'd 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 $29.5 million, minus 0.1 million, and our debt remained unchanged at $40 million since year end.

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.

Robert McEwen: It was a quarter 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, 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.

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

Robert McEwen: 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.

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

Speaker Change: 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.

Speaker Change: 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.

Robert McEwen: 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 of NSR on Los Azules, and we also own three cash flowing, Coal and Silver Mine. Management is done, and 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.

Speaker Change: NSR on Los Azules.

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

Speaker Change: Gold and Silver Mines

Speaker Change: Management is done.

Speaker Change: and Internal Calculation.

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

Robert McEwen: Q2 was a quarter when the investment outlook for Argentina improved dramatically. 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, the removal of Exchange Controls, Financial Stability Agreements, and more for major projects.

Speaker Change: 2002 was a quarter when the investment outlook for Argentina improved dramatically.

Speaker Change: I'll call it Malay magic after the President Malay. The Argentinian government approved the...

Speaker Change: Most important change for foreign direct investment in the country in the last 20 years.

Speaker Change: It involves lower taxes, removal of exchange controls, financial stability agreements, and more for major projects.

Robert McEwen: The impact will be significant on McEwen Copper. Los Azules, NPV. After the quarter, and appearing to take advantage of Argentina's legislative changes, the world's largest mining company, DHP, 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. But it also sets a new value for Large Copper Deposits in the Country.

Speaker Change: The impact will be significant.

Speaker Change: on mcuan coppers loes illes ten tv

Speaker Change: and

Speaker Change: After the quarter, and appearing to take advantage of Argentina's legislative changes, the world's largest mining company, BHP,

Operator: 2020 for 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 Diges. General Counsel and Secretary.

Speaker Change: jumped into Argentina's copper scene in a very big way, leading a $4.4 billion transaction with Landin Mining.

Speaker Change: to acquire Filo Mining and its Filo del Sol deposit and the Jose Maria deposit.

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.

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.

Robert McEwen: Based on the current published resources of Filo D'Also 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.

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

Speaker Change: Los Azules

Speaker Change: has a

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

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 ends.

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.

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.

Speaker Change: Our first question comes from Jake Sekelsky from Alliance Global Partners. Your line is now open.

Rob McEwen: It was a quarter 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 cents behind every fully deluded share of McEwen mining. It's worth noting that this value is greater than our entire market capitalization today.

Jacob 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?

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

Rob McEwen: Thanks, Jake.

Jake Sekelsky: 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?

William Shaver: I know that's thanks for the question, Jake. No, that's it's a single area. Uh... of the upper level of the mine. It's now 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..., a significantly smaller size of stulps so that we'll have absolute control.

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

Speaker Change: of the upper,

Speaker Change: It's along the contact between ore and waste and on the waste side there was

Rob McEwen: Last night our closing share price was $8 on the Nike and I want to remind you that McEwen mining also has a portfolio of six royalties where the largest is a 1 and a quarter percent NSR on Los Azulis and 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: Some Less Confident Rock, which basically failed. And once we realized exactly what was going on...

Speaker Change: We backfilled 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.

Speaker Change: And that will be by using significantly smaller bites or...

Rob McEwen: Q2 was a quarter when the investment outlook for Argentina improved dramatic. Exactly. 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 Argentinian's legislative changes, the world's largest mining company, VHP, jumped into Argentinian's copper scene in a very big way, leading a $4.4 billion transaction with Lundin Mining to acquire Filo Mining and its Filo del Sol deposit and the Jose Maria deposit.

Speaker Change: Significantly smaller sizes of stulps.

William Shaver: So, you know, I don't think we have a big concern about it. You know, 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-off that's now under control. We've had our rock mechanics consultants advising us on, 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 not going to see that again.

Speaker Change: that we'll have absolute control of.

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

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

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

Jacob 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. We expect, I'll call it, $1,500 an ounce ASIC going forward there. Are there anything specific to Q2 that drove that major decrease in costs?

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.

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 Filo 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: We expect, so I'll call it $1,500 an ounce ASIC going forward there. Are 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, so 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's, 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

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.

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.

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

Rob McEwen: 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 1. Again, that star 1 on your telephone keypad. We will pause for a brief moment while we wait for the questions to come in.

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

Operator: Great. Thanks again.

Speaker Change: Great. Thanks again.

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

Speaker Change: Thank you.

Jake Sikowski: Our first question comes from Jake Sikowski from Alliance Global Partners.

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

Operator: Hey Robert team, thanks for taking my questions. Hope all is going well. Good Heiko.

Jake Sikowski: Your line is now open. Hey, Rob and team, thanks for taking my questions and congrats on the corner. Thanks, Jake.

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

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

Rob McEwen: So just starting with the ground condition at Fox, I'm just curious, is this the one off that it's specific still for, are you seeing this in other areas underground as well? No, that's thanks 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 realized exactly what was going on, we backfill that area with cemented fill. And so it's totally stabilized now.

Speaker Change: but maybe can you give a little bit of color on your longer term internal tax given the special incenti that you had discussed mean i guess i'm saying is you know internally what are you looking at receiving and is there a way for us to maybe quantified that

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

Michael Meding: Sure, so we have done some interim calculations on what the RIGI application means for our LOM, and by no means do we want to invalidate our existing PEA, but to give you an idea, the after-tax changes with the conservative application of the RIGI would be in the area of about more than 30 percent, 960 million dollars. So this makes projects, which is not our case, but which makes other projects that were not that attractive now, attractive.

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

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

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

Rob McEwen: And so the 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 that will have absolute control of. So, you know, I don't think I don't think we have a big concern about it, you know, 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.

Speaker Change: so this makes projects which is not our case but which makes other quarters that were not that attractive now now atacve

Michael Meding: Because what Argentina has done is, and again, based on companies and management's estimates, has brought Argentina, once qualifying for the region, 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 recoveries. So those are the things that are very, very helpful for projects such as

Mike: because

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

Mike: once qualified for the region, which we believe, for example, we do, on similar footing with overall tax burdens such as Chile.

Mike: 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.

Robert McEwen: Yeah, the tax rate's going from 35 to 25%, and um..., and their other benefits. As Mike mentioned, VAT refunds are accelerated. And customs importation is speeded up. It's a big move for us and others in the country. Yeah, no, a hundred percent. A hundred percent. I mean, things seem to be actually getting done there from everything you read in the press.

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

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

Speaker Change: it

Ron: and Ron. Ciao.

Jake Sikowski: Okay, that's helpful. Thanks to that color.

Speaker Change: and their other benefits. As Mike mentioned, VAT refunds accelerated.

Speaker Change: then customs importation is feed up and

Speaker Change: Thank you.

Speaker Change: It's a big military for us and others in the country. Yeah, no, 100%. I mean, things seem to be actually getting done there from everything you read in the press.

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?

Jake Sikowski: 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.

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?

Rob McEwen: The weeks that spelled call it $1500 an ounce ASIC going forward there.

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?

Rob McEwen: Are there anything specific to queue to that that drove that major decrease in cost? Yeah, I don't think that there's anything that drove that cost down. It's it's basically because the production is you know, I I guess so far has been slightly above our target. And you know, so that's helping that in fact at the present time or doing a significant amount of drilling so far this year we've done about $5 million of drilling.

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 timeline. 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, you know, building the ramp back at the stock mine, which is, which is going well, and we've raised the CDE for Mexico. We would, we would like to put it back into production, but that's obviously subject to permitting.

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 timeline. You know, we're only looking at projects that we think, you know, we have the balance sheet to execute on.

Speaker Change: 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 at Goldbar, we're spending money on exploration there, and we're having some tangible results which we hope we can share in the future.

Rob McEwen: 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 it seems to be predictable at this time based on the data we have.

Perry Ing: And 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, we hope will provide incremental production increases for the coming years.

Jake Sikowski: That's great, thanks again.

Speaker Change: You know, all these things, you know, we hope will provide incremental production increases for the coming years.

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

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

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

Michael Ihle: Thank you Our next question comes from Michael Ihle from HSC Winglight. Your line is now. Hey, Robert team, thanks for taking my questions. Hope all is doing well. Good, Heiko. 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? Thank you. Wanna address that question?

Ron: excycle

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

Michael 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 it going to depend on how much of the $70 million comes in between now and the end of the year?

Mike Kozak: yeah moremorning robt lo good morning just a couple of questions from me first have you if you guys set a budget yet for the twotwentyand twentyfour two thousandand twenty five plationations season lo elis or it could depend on how much of the seventy million comes in between now end the year

Robert McEwen: We've done most of the drilling for the feasibility study. So

Speaker Change: We've done most of the drilling.

Speaker Change: before the feasibility study

Robert McEwen: The big drilling campaign is finished. We will be drilling, looking at that new deposit or new copper showing close to Las Azunas.

Ron: so

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

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

Speaker Change: Close to Los Azules, but it won't be anywhere near the type of expenditure we did this year.

Michael 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?

Perry Ing: Sure. So we have done some some internal calculations. What the regime application means for our long and by no means would like to invalidate our existing PA. 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% 96 million dollars. 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.

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?

Robert McEwen: We're looking at about $60 million for that. 6-6-0

Michael 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 sixty million dollars were that

Speaker Change: 6.0, of which you all have still in front of you, or some has been sunk already.

Speaker Change: That's in front of us.

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

Allan Berry: Our next question comes from Allan Berry from Roxanne's Fox News. Your line is now open. Hi, Allan.

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

Allan Berry: Hi Allan. Come on in for taking my call. I'm 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, pilot with the DHP and the Lundin taking a run at Silo. I think it gives us some real world valuation metrics, and I was wondering if you could shine some light on how Los Angeles compares to Pueblo del Sol and what's in the deal. There It's very thick.

Alan: Hi Alan, someone wants to take my call.

Speaker Change: Well, 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.

Perry Ing: Once qualified for the region, which we believe for example, we do on similar footing with over tax burdens such as Chile. 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 deal for us and others in the country.

Speaker Change: pilot with the DHP and the Lundin taking a run at front silo.

Speaker Change: 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 Pueblo del Sol and what's in the deal.

Robert McEwen: compares very favorably. First of all, Los Azules is at a lower altitude than either of Filo del Sol or Jose Maria. Los Azules is closer to infrastructure, major power lines, and highways. Um... We are, at least according to a Goldman Sachs study of a P.E.A. work.

Speaker Change: Compares very favorably.

Michael Ihle: Yeah, no 100% 100% and I mean things seem to be actually getting done there from everything you read in the press. Profibility in the quarter was obviously pretty good.

Speaker Change: were

Speaker Change: at least according to a Goldman Sachs study of a P.E.A.

Robert McEwen: 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. You'll see some reduction in capital. We, Los Azules, will probably be significantly less capital because we're going to be a heat leach operation as opposed to a conventional milling operation, so much less capital, and 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.

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.

Perry Ing: What kind of cash flow should we expect additional investments into your asset base because 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 X funds are there, we'll figure it out then.

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

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

Perry Ing: Yeah, hi, hi, it's Perry. I mean, obviously, you know, worth a trade in our current environment by permitting. I mean, I think that's one of the things that, you know, draws 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 going well and we've raised, you know, the CDE for Mexico.

Alan: and from a based on the published resources of

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

Robert McEwen: That might change with new work coming out of New Resource Studies on 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: that might change with you to work coming out of new resource that heis out of those two but at the moment based on the published resources were larger and higher copper grainso i think we compare very favorably

Perry Ing: We would look, 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. But, you know, all these things, you know, we hope will provide incremental production increases in the coming years. That's a very clear answer.

Allan Berry: My second question was on the gold front. Gold has been in a very powerful global 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 are some attractive buying opportunities 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 kinds of opportunities?

Speaker Change: My second question was on the gold front. Gold has been 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 the party, and therefore, it looks like there's some attractive opportunities

Michael Ihle: Thank you very much. I'll get back in cute. Thanks, Haiko.

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

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 kinds of opportunities?

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

Robert McEwen: Well, very clearly, the majors have got the most benefit out of the increase in the gold price, and 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.

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 before 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.

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

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

Speaker Change: 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.

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 dollars for that. 60 and of which has none of which you all have still in front of you or some has been some already. That's in front of us.

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

Speaker Change: And then the juniors...

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.

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

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

Rob McEwen: Our next question comes from Alan Barry from rocks and spokes news. Your line is now open. Hey, Alan. Hello, I'm taking for taking my call. Oh, happy to. Every major mining company seems to be interested in getting into copper. The cover is fairly bare when it comes to a couple of development projects that rank in the size that a major would be interested in. Highly with a with BHP and the London taking a run at the front field.

Speaker Change: thank you very much for money i taking my call congratulation when to get back in the right track he said two thousand and sixteen and i ll turn it over back over

Allan Berry: 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.

Whitney Coffey: Group. Next. Our next question comes from Whitney Coffey, individual. Your line is now open.

Speaker Change: Thank you all.

Speaker Change: Our next question comes from Winnie Coffey, individual, your line is now open.

David: Thank you. This is your husband, David, and we'd like to inquire about the MQMNW. We're 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.

Speaker Change: Thank you. This is your husband, David, and we'd like to inquire about the MQMNW. 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: I think it gives us some real world valuation metrics. And I was wondering if you could shine some light on how lots of viewers compares to people that sold and what didn't ideal. Compare is very favorably. First of all, lots of zealous is a lower altitude than either of Fula del Sol or Jose Maria in lots of zealous is closer to infrastructure, major power lines and highways. We're at least according to a Goldman Sach study of a PEA work.

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

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

David: It's the warmth. MQMNW.

Speaker Change: It's the warrants.

Robert McEwen: 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: to

Speaker Change: and oh it's end deputbut

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

Speaker Change: which are out of the money and bl traded

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

David: 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.

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.

Rob McEwen: We were in the lowest cost quartile compared and Jose Maria was in the highest. 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 zealous will probably be significant in less capital because we're going to be a heat bleach operation as opposed to conventional milling operation, so much less capital. And from based on the published resources.

Robert 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, As I said, those warrants are out of the money. They expire towards the end of this year, in November of 2024.

Speaker Change: so

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.

David: 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, which 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 working on those projects. That's the only current acquisition that we have in the pipeline.

Rob McEwen: 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 were larger and higher copper grade. So I think we compare very favorably.

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. That acquisition will hopefully close towards the end of this month in August .

Rob McEwen: My second question was on the gold from gold has been a very powerful gold market, and today I think that the argument can be made that really only the largest gold stock of during the party. And therefore, it looks like there's some attractive opportunities down the gold stock food chain.

Speaker Change: and we're looking forward to working on those projects.

Speaker Change: That's the only current acquisition that we have in the pipeline.

Robert McEwen: So that wouldn't involve the warrant circumstance, would it? No, not at all. Well, I guess you've answered our question. Thank you, David. Thank you. Our next question comes from John Moran, individual. Your line is now open.

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

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

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

Speaker Change: Thank you, David. Thank you.

Rob McEwen: Is there any comment you can make as far as possible strategic investments or thoughts on that kind of opportunity? Well, 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.

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

Allan: Hello, John. Hi, Jim. Hi. Thank you.

John Moran: 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: 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.

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

Rob McEwen: And we're a case in point. We were a high cost producer and with the higher gold price our margin 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. So it's a good time for investors in my mind to be looking at the smaller companies right now.

Speaker Change: The

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

Robert McEwen: So The reason we separated the copper 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. I think we're still at the beginning.

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

Rob McEwen: Thank you very much for my call. Congratulations on the get back in the right track. 2016 and I'll turn it over back over.

Speaker Change: losss zillas are loss ofazill' property willum

Rob McEwen: Thank you.

Robert McEwen: 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. Copper prices. Thank you very much. Oh, good. You're welcome. I was just going to say, the company's price has weakened in the last..., in the last three months relative to gold, the value out of the market. I believe we've followed a lot of the copper stock, in terms of price.

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.

Whitney Coffee: Our next question comes from Whitney coffee individual care line is now open. Thank you. This is our husband David. And we'll have to inquire about the MQMNW. We're involved with that and we understand that's a new project and I just want if there's going to be any to move in that direction. I'm not familiar with that name. MQMW. What's that? It's the warmth. MQMNW. Yeah. MQMNW is an OTC ticker for the Cuban mining warrants, which are out of the money.

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.

Robert McEwen: Thank you very much. You're welcome.

Speaker Change: the copper pric thank you very much your re welcome but all to say the prices weaken in the last

Speaker Change: in the last three months relative to gold.

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

Whitney Coffee: And last trade is.., for a low, very low price. So, what is your question about those particular warrants? Well, I'm 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.

Speaker Change: in terms of

Speaker Change: Price Direction

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

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

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

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

Phil 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

Perry Ing: A couple 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 a – are there any plans for regular dividends?

Speaker Change: 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 a, are there any plans for regular dividends?

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. 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.

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 have had very good dialogue with Toshield.

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.

Rob McEwen: So, with regard to new projects, though, I mean I can address, you know, we are in the process of acquiring timber line 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 and in August. And we're looking forward to, you know, to working on those on those projects.

Speaker Change: I would say we've had very good dialogue with Hossfield.

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: 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. 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 Toshield is look at cash generation this quarter and potentially, you know, expect to receive a more sizable dividend in the fourth quarter of this year.

Speaker Change: next year.

Speaker Change: 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 of this year. So, obviously, silver has come off a little bit, but, you know, gold is still above $2,400 as of today.

Rob McEwen: That's the only current acquisition that we have in the pipe policy. So, that wouldn't involve the warrant circumstance, would it? No, not at all. Not at all. Okay. Well, I guess you answered that question. Thank you, David. Thank you.

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

Phil Powers: Yes, and yeah, thank you. And my second question is, I know you, 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, you know, to the mine plan, as well as if this is going to raise the cost of getting towards a permit and, you know, potentially production.

John Ryan: Our next question comes from John Ryan, individual. Your line is now open. Hello, John. Hi. Thank you.

Speaker Change: yes and yeah thank you and my second question is i know

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

John Ryan: 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.

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 potential 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. But, you know, as in all permitting situations, there's not a lot of clarity around when permits are given.

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

Speaker Change: receiving the permit and unfortunately i guess as you probably know recently there's been elections in mexico so the the new team is now getting into place on the government side

Speaker Change: We have had some discussions with the responsible agents in Mexico about our permitting.

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 Los Angeles or Los Angeles 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: There's an anticipation I guess that's been created where we think we might get the permit and

Speaker Change: 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.

Perry Ing: Meanwhile, we're also looking at other opportunities to reduce the capital cost 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 some better news for ourselves and for our shareholders later in Q3 and early in Q4. OK.

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 prices. Thank you very much. You're welcome. 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. Thank you very much.

Speaker Change: opportunities to reduce the capital cost and do some other

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

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

Phil Powers: Okay, thank you very much.

Speaker Change: Okay, thank you very much.

Patrick Shinn: 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. Our next question comes from Patrick Shinn from Equestrian Investor. Your line is now open.

Speaker Change: You're welcome.

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.

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 on the right plan for regular dividends?

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

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

Patrick Shinn: Good morning, Mr. McEwen and team. Just wanted to find out if there's any updates on the Ouija board 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.

Speaker Change: Hello, Patrick.

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

Speaker Change: From what I could gather through the message boards and...

Speaker Change: some of the internet research. It's been debated, but it seems very unclear what...

Perry Ing: Hi Bill, it's Perry. Thanks for the question. So, we did receive a small dividend in the second quarter, but obviously given where gold and silver prices are, we would want to see a more robust dividend. I would say we've had a 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 through put up to 2,000 times per day.

Speaker Change: what benefits is

Operator: There are many. Thank you.

Michael Meding: 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 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 will be a discussion.

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 Hot Shield is look at the cash generation this quarter and potentially expect to receive a more sizable dividend in the fourth quarter. So, obviously silver has come off a little bit, but 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.

Michael Meding: So, if I may give you a cool state of the art. 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 it's now enacted. The provinces are in the process of adhering to that law. The law is active.

Michael Meding: It has many positive features.

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 it 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.

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

Perry Ing: Yes, and yeah, thank you.

Perry Ing: 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 can give us a little more color on some details regarding some adjustments to the mind plan, as well as if this is going to raise the cost to getting towards a permit and a potentially production. Yeah, so thank you very much for the question.

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 really important for big efforts like this. Bank tax, and transaction tax, which was before 1.2 percent, will be fully credible against income tax, and the municipalities and the provinces adhering to the law will be banned from increasing taxes on the project.

Speaker Change: Accelerated Depreciation

Speaker Change: Unlimited carry-forward of losses, no limitations of deduction of interest for 5 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.

Speaker Change: Bank tax, transaction tax, which was before 1.2 percent, would 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 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.

Perry Ing: 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. So, the new team is now getting into place on the government side. We have had some discussions with 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. Late in Q3 or early in Q4, 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 the capital cost and do some other arrangements in terms of the permitting to make that less onerous on the government.

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.

Perry Ing: And so I would say at this point we're in a state of flux and hope to have some better news for ourselves and for our shareholders later in Q3 and early in Q4.

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

Speaker Change: So, if you're interested to learn more about that, please drop us a note and we can send you documentation.

Michael Meding: Yeah, but what is also important to note is, specifically, important exports are free from licenses and duties for a certain amount of time. At the moment, Copper Project has 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 the country or outside of it. So it's very beneficial for mining.

Speaker Change: But what is also important to notice, specifically, important exports are free from licenses and duties.

Speaker Change: Exports, after a certain amount of time at the moment, COPPA 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.

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

Patrick Shinn: 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: but

Speaker Change: 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. 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 are adhering via provincial laws. You know that Argentina is pretty much made after the US, 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.

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

Perry Ing: Okay, thank you very much. You're welcome. Thanks Bill.

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.

Operator: 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.

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.

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

Patrick Sean: Our next question comes from Patrick, Sean, from President Investor. Your line is now open. Hello, Patrick. Good morning, Mr. McEwen and team. Just want to find out if there's any updates on the region. From what I could gather through the message boards and some of the internet research has been debated, but it seems very unclear what benefits is there are. Are there there are many Michael netting 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 many for me and other features.

Patrick Shinn: 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 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.

Patrick: Thank you, Patrick.

Patrick: 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.

Robert 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

Robert McEwen: As you can see, we're in a good financial position. We have, 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, infill drilling, and Argentina is open for business. It's been a pariah for a long time, and I'll call it the lay magic. It has changed that and been embraced by the government of Argentina. So that, plus our improving financial position. I think this puts us in a very good position going forward to finance our growth plan.

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, infill drilling.

Patrick: 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.

Michael Meding: So if I may give you a good state of the region, the region 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 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% so 10% percentage point decrease in corporate tax rate accelerated depreciation unlimited carry forward of losses.

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

Speaker Change: Thank you for joining us.

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

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

Michael Meding: No limitations of reduction of interest for five years text undividently used from 7 to 3.5% and relief of withholding tax on some payments to foreign beneficiaries, which is really important for big extra budget. Bank tax 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. 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: 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 cover 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. 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.

Michael Meding: 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. 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 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.

Operator: Okay, thank you so much, gentlemen. 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 McEwen, I would 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, it's going out today on Los Angeles. It will be providing additional drill data, the infield drilling, and 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.

Operator: 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. You may now