Q3 2025 McEwen Inc Earnings Call

Speaker #3: Hello , ladies and gentlemen . Welcome to Macewen's third quarter , 2025 . Operating and financial results conference call . Present from the company today are Rob McEwan , chairman and chief owner .

Speaker #3: William Shaver chief operating officer . Perry Ng , chief financial officer . Jeff Chan , vice president , finance . Stefan Spears , vice president , corporate development .

Speaker #3: Michael Meding vice president and general manager of McEwan copper Carmen Diaz , general counsel and secretary . Michael Swistun president CEO of Canadian Gold Corp.

Speaker #3: . After the speakers presentation , there will be a question and answer session . If you would like to ask a question during this time , simply press star followed by the number one on your telephone keypad .

Speaker #3: If you would like to withdraw your question again , press star one . I will now turn the call over to Mr. Robert McEwen , chief owner .

Speaker #3: Please go ahead, sir.

Speaker #4: Thank you . Operator . Good morning , fellow shareholders . Interested investors . We have been preparing McEwan mining to benefit from the stronger metal prices .

Rob McEwen: Thank you, operator. Good morning, fellow shareholders, interested investors. We have been preparing McEwen Mining to benefit from the stronger metal prices we are seeing today. Over the past year, gold at just below $4,000 an ounce is up 45%, silver up 47%, and copper is close to $5, up 13%. I believe the intermediate and long-term prices will be considerably higher. This is an excellent environment for our portfolio mix of assets. I'd go as far to say that perhaps you could think of us as a mini Freeport with growing gold production pipeline and large exposure to robust world-class long life copper story. The improved gold and silver prices have buffeted us from the inconvenient, unexpected events that can temporarily throw us off course and off guidance.

Speaker #4: We are seeing today . Over the past year , gold at just below $4,000 an ounce is up 45% . Silver up 47% , and copper is close to $5 , up 13% .

Speaker #4: And I believe the intermediate and long term prices will be considerably higher . This is an excellent environment for our portfolio mix of assets .

Speaker #4: I'd go as far to say that perhaps you could think of us as a mini Freeport , with growing gold production pipeline and large exposure to robust world class , long life copper story .

Speaker #4: The improved gold and silver prices have buffeted us from the inconvenient , unexpected events that can temporarily throw us off course and off guidance .

Rob McEwen: Fortunately, these moments are temporary and can be resolved in relatively short period of time and have not seriously delayed our ambitious growth plans of delivering by 2030, 250,000 to 300,000 gold equivalent ounces of annual production. Plus, watching Los Azules become a copper mine. In the 5 years, we're looking at producing at an annual rate of over 450 million pounds of copper a year, which today at copper prices would be about $2.2 billion, and it has, at least based on the feasibility study we just put out, and the current copper price would have a gross margin of 64%. We've done a number of things in the quarter, and we've made some investments, and I'll start with those.

Speaker #4: Fortunately , these moments are temporary and can be resolved in relatively short period of time and have not seriously delayed our ambitious growth plans of delivering by 2030 , 250 to 300,000 gold equivalent ounces of annual production , plus watching losses become a copper mine .

Speaker #4: And in the first five years , we're looking at producing an annual at an annual rate of over £450 million of copper a year , which today copper prices would be about 2.2 billion .

Speaker #4: And it has a at least based on the feasibility study , we just put out and the current copper price would have a gross margin of 64% .

Speaker #4: So we've done a number of things in the quarter , and we've made some investments . And I'll start with those , and then I'll move to asking Michael Meding to talk about the excitement at Las Olas .

Rob McEwen: I'll move to asking Michael Meding to talk about the excitement at Los Azules, and then we'll get into our finances and our operations on our gold operations. I'll start with Ian Ball to talk about our investment in Canadian Gold Corp.

Speaker #4: And then we'll get into our finances and our operations on our gold operations . So I'll start with Ian Ball to talk about our investment in Canadian Gold Corp , and also .

Speaker #3: Ladies and gentlemen , we are experiencing technical difficulties . Please stay on the line . We will resume momentarily .

Operator 2: Ladies and gentlemen, we are experiencing technical difficulties. Please stay on the line. We will resume momentarily.

Speaker #4: I'm sorry . Operator , what are you talking about ?

Rob McEwen: I'm sorry, operator. What are you talking about?

Speaker #5: How long ago were we ?

Operator 2: How long ago were?

Ian Ball: Thank you very much, operator. On the Canadian Gold front, we're set to close that acquisition in January. Upon closing, we expect to issue an updated resource estimate for the end of February that will come out with our year-end financials, and that's gonna serve a preliminary economic assessment. Our shareholders will note we have not included Tartan in any of our guidance going forward over the next 5 years, but we fully anticipate including that as we set to embark on our studies of that project. Exploration is ongoing. Canadian Gold is scheduled putting out an exploration update over the next 3 weeks. The key there is we've been drilling on the main zone, continuing to build out that resource.

Speaker #6: Thank you very much . Operator . So on the Canadian gold front , we're set to close at acquisition in January . Upon closing , we expect to issue an updated resource estimate for the end of February that will come out with our year end financials .

Speaker #6: And that's going to of a preliminary economic assessment . Our shareholders will note we have not included tartan in any of our guidance going forward over the next five years , but we fully anticipate including that as we set to embark on our studies of that project .

Speaker #6: Exploration is ongoing and Canadian gold is putting out an exploration update over the next three weeks . The key there is we've been we've been drilling on the main zone , continuing to build out that resource .

Speaker #6: We've been doing a lot of work on the recently acquired ground to the west , which is option from hut Bay , where historically there was a lot of historical high grade drill intercepts and surface .

Ian Ball: We've been doing a lot of work on the recently acquired ground to the west, which is option from Hudbay, where historically there was a lot of historical.

Ian Ball: High-grade drill intercepts and surface. We think there's a lot of synergies between Tartan and that ground. It really fits well with the McEwen Inc. portfolio in terms of the underground style, the processing plant, and we feel there's a lot of ways that we can optimize this and we can accelerate the permitting on this project to get it back into production upon some of the completion of the test work that we're currently undertaking. So we're quite optimistic both on the timeframes for permitting the exploration, as well as the production profile that it can deliver for McEwen going forward. Okay, Mike, would you hop on this call?

Speaker #6: We think there's a lot of synergies between tartan and and that ground . It really fits well with the McEwen Mining Inc. portfolio in terms of the underground style .

Speaker #6: The processing plant, and we feel there are a lot of ways that we can optimize this and accelerate the permitting on this project to get it back into production upon some of the completion of the test work that we're currently undertaking.

Speaker #6: So we're quite optimistic , both on the time frame for permitting the exploration as well as the production profile that it can deliver for McEwan going forward .

Speaker #7: Okay , Mike , would you hop on the call ? Operator , are you there ?

Rob McEwen: Operator, are you there?

Michael Meding: Sorry, Rob.

Rob McEwen: Come on.

Michael Meding: Rob, is it

Speaker #8: Is it is it ?

Speaker #3: Go ahead . Mike .

Rob McEwen: Go ahead, Mike.

Speaker #8: Okay . Thank you . Rob . Thank you . Operator Q3 was an excellent and transformative quarter for McEwan copper . We successfully advanced from a world class deposit into a de-risked politically endorsed and bankable Taiwan asset at McEwan copper .

Michael Meding: Okay, thank you, Rob. Thank you, operator. Q3 was an excellent and transformative quarter for McEwen Copper. We successfully advanced Los Azules from a world-class deposit into a de-risked, politically endorsed and bankable tier 1 asset. At McEwen Copper, we are committed to excellence in 3 key areas: operations, ESG, and exploration. The most significant strategic event of the quarter was the acceptance of Los Azules into Argentina's Régimen de Incentivo para Grandes Inversiones or the Large Scale Investment Incentive Program in Argentina on 26 September. This is a fundamental game changer for the project. Through RIGI, Los Azules now benefits from 30 years of legal, fiscal, and custom stability, access to foreign exchange, and a significantly lower and internationally competitive tax rates. This provides a predictable framework and strong protection against future regulatory changes.

Speaker #8: We are committed to excellence in three key areas operations , ESG and exploration . The most significant strategic event of the quarter was the acceptance of lost souls into Argentina's Régimen de Incentivo para , or the large scale investment incentive program in Argentina .

Speaker #8: On September 26th . This is a fundamental game changer for the project . Through losses is now benefits from 30 years of legal , fiscal and customs stability , access to foreign exchange and a significantly lower internationally competitive tax rate .

Speaker #8: This provides a predictable framework and strong protection against future regulatory changes . The approval of the G is a powerful public endorsement , which was personally announced by Argentine Minister of Economy Luis Caputo and reinforced by President Javier Miller on the official X accounts .

Michael Meding: The approval of the RIGI is a powerful public endorsement, which was personally announced by Argentina's Minister of Economy, Luis Caputo, and reinforced by President Javier Milei on their official X accounts. We also finalized a collaboration agreement with the IFC, a member of the World Bank Group. This partnership will align the project with the IFC's rigorous ESG performance standards and establishes a framework for collaboration on future financing. Our most recent milestone was the publication of the NI 43-101 feasibility study results on 7 October. The study confirms robust project economics driven by a production process designed for low environmental impact. The leach in SX-EW process will produce 99.99% LME grade A copper cathodes, and as Rob already mentioned in the first five years, 204,000 tons of pure copper per year.

Speaker #8: We also finalized a collaboration agreement with the IFC , a member of the world Bank Group . This partnership will align the project with the IFC's rigorous ESG performance standards and establishes a framework for collaboration on future financing .

Speaker #8: Our most recent milestone was the publication of the 4301 feasibility study results in October 7th . The study confirms robust project economics driven by a production process designed for low environmental impact .

Speaker #8: The CW process will produce 99.99% grade A copper cathodes and , as already mentioned , in the first five years , 204,000 tonnes of pure copper per year .

Speaker #8: The highlights include 2.9 billion after tax NPV at 8% , 19.8% after tax IRR , a payback of 3.9 years , 3.2 billion .

Michael Meding: The highlights include $2.9 billion after-tax NPV at 8%, 19.8% after-tax IRR, a payback of 3.9 years, $3.2 billion initial CapEx, C1 cash cost of $1.71 per pound of copper produced, all-in sustaining cost of $2.11 per pound of copper. The financial model used a copper price assumption of $4.35 per pound. The full NI 43-101 technical report is scheduled for publication later this month. Looking forward, detailed engineering for Los Azules is set to commence, and we are targeting construction for late 2026, beginning of 2027, subject to project financing. Let's talk about the upside. Our total mining rights cover approximately 32,000 hectares. To date, we have explored less than 10% of our holdings, about 3,000 hectares.

Speaker #8: Initial CapEx C1 cash cost of $1.71 per pound of copper produced , all in sustaining costs of $2.11 per pound of copper . The financial model used used the copper price assumption of $4.35 per pound .

Speaker #8: The full national Instrument 43 101 Technical Report is scheduled for publication later this month . Looking forward , detailed engineering for all is set to commence and we are targeting construction for late 2026 beginning of 2027 , subject to project financing .

Speaker #8: Finally , let's talk about the upside . Our total mining rights cover approximately 32,000 hectares . To date , we have explored less than 10% of our holdings .

Speaker #8: About 3000 hectares . We have already identified eight significant targets , four of which we will focus on in the upcoming season . We have strong reason to believe we can significantly increase the resource size of Los Solis and ultimately convert this project into major mining districts .

Michael Meding: We have already identified 8 significant targets, 4 of which we will focus on in the upcoming season. We have strong reason to believe we can significantly increase the resource size of Los Azules and ultimately convert this project into major mining district. Thank you so much. I hand back over to you, Rob.

Speaker #8: Thank you so much . I hand back over to you , Rob .

Speaker #7: Thank you Mike , very .

Rob McEwen: Thank you, Mike. Perry?

Speaker #5: Thank you Rob . Good morning everyone . I'll just provide some brief highlights from our third quarter report . So in terms of headline numbers , we reported a net loss of half 1 million or $0.01 a share compared to a loss of 2.1 million or $0.04 a share in the corresponding period .

Perry Ing: Thank you, Rob. Good morning, everyone. I'll just provide some brief highlights from our third quarter report. In terms of headline numbers, we reported a net loss of half a million or $0.01 a share, compared to a loss of $2.1 million or $0.04 a share in the corresponding period. I will note that this net loss included $4.3 million in terms of the loss from McEwen Copper. As we've noted previously, now that the feasibility study for Los Azules has been published, going forward from the effective date of the feasibility study at the beginning of September, we will be able to report those associated costs on a capitalized basis.

Speaker #5: I will note that this net loss included 4.3 million in terms of the loss from Q1 copper , as we've noted previously , now that the feasibility study for loss has been published .

Speaker #5: Going going forward from the effective date of the feasibility study at the beginning of September , we will be able to report . Those associated costs on a capitalized basis .

Speaker #5: So any any loss attributable to loss of from prior periods will no longer will now be capitalized on a go forward basis in terms of adjusted EBITDA , we reported 11.8 million of positive EBITDA during the quarter , or $0.22 a share , compared to 10.5 million , or $0.20 a share , in the corresponding period .

Perry Ing: Any loss attributable to Los Azules from prior periods will now be capitalized on a go-forward basis. In terms of adjusted EBITDA, we reported $11.8 million of +EBITDA during the quarter or $0.22 a share, compared to $10.5 million or $0.20 a share in the corresponding period. In terms of our treasury, we ended the quarter with $51 million in cash as well as $24 million in marketable securities. Our cash balance was relatively unchanged from the prior quarter, 30 June. Just looking ahead, in terms of our release, we've outlined a number of significant projects ahead of us.

Speaker #5: In terms of our Treasury , we ended the quarter with 51 million in cash as well as 24 million in marketable securities . Our cash balance was relatively unchanged from the prior quarter at June 30th , so just looking ahead in terms of our release , we've outlined a number of significant projects ahead of us .

Speaker #5: So just looking into 2026 and our capital needs , obviously we expect to finish the stock ramp at by the end of next year , complete a heap leach pad expansion at Gold Bar and as noted , we will undertake phase one with a capital cost of approximately $25 million .

Perry Ing: Just looking into 2026, and our capital needs, obviously we expect to finish the stock ramp at by the end of next year, complete a heap leach pad expansion at Gold Bar. As noted, we will undertake El Gallo phase I with a capital cost of approximately $25 million. Overall, we expect to accomplish these using our existing treasury and cash flows from operations. Specifically for the El Gallo project in Mexico, we also expect to utilize a form of gold prepay for approximately half of the anticipated CapEx. With that, we'll turn it over to William Shaver for some comments on operations.

Speaker #5: Overall , we expect to accomplish these using our existing Treasury and cash flows from operations and specifically for the project in Mexico . We also expect to utilize some form of gold prepay for approximately half of the anticipated CapEx .

Speaker #5: So with that , we'll turn it over to bill for some comments on operations .

Speaker #7: And what we're going going forward .

Rob McEwen: What we're going forward.

Speaker #9: Yeah . Good morning . Shareholders . Yes . So from the operation perspective , as as we all know , we started off the year poorly .

William Shaver: Yeah. Good morning, shareholders. Yes, from the operation perspective, as we all know, we started off the year poorly. You know, we have a very good start to Q4. Q3 wasn't exactly as we anticipated due to some issues with the final few months of the Froome mine. You know, this is to, I guess, to some extent, I guess one of the outcomes of, you know, the end of a mine life. The Froome West deposit has kicked in nicely in towards the end of Q3, and we see it producing gold at the rate in our guidance through Q4 and well into 2026.

Speaker #9: However , you know , we have a very good start to Q4 Q3 wasn't exactly as we anticipated due to some issues with the final few months of the from mine .

Speaker #9: And , you know , this is , I guess , to some extent . I guess one of the outcomes of , you know , the end of a mine life .

Speaker #9: However , the firm West deposit has kicked in nicely in , in towards the end of Q3 and we see it producing gold at the at the rate in our guidance through Q4 .

Speaker #9: And well into 2026 . We now see from mining until Q3 of 2026 , by which time the stock deposit should be coming in into production , which we're now indicating as occurring in a later in the first half of of next year .

William Shaver: We now see Froome mining until Q3 2026, by which time the Stock deposit should be coming into production, which we're now indicating as occurring in this later in H1 of next year. In terms of the development work that we are doing at Stock, the ramp development is going along on schedule. You know, I would have to say both the mining contractor and our own mining crews continue to have their safety record in very good shape, with no lost time accidents by either our contractors or our own forces.

Speaker #9: Well , in terms of the development work that we are doing at stock , the ramp development is going along on schedule , you know , and I would have to say both the mining contractor and our own mining crews continue to have their safety record in , in , in very good shape with no lost time .

Speaker #9: Accidents by either our contractors or our own forces in terms of gold bar Q3 has been quite challenging because of the fact that there was one part of our ore that we intended to mine in Q3 , which .

William Shaver: In terms of Gold Bar, Q3 has been quite challenging because of the fact that there was one part of our ore that we intended to mine in Q3, which basically turned out not to be ore when we got to the mining. We pivoted there quite nicely to move into Q4. Q4 is already looking very, very good, and we're back into the normal routine of our mining and our stripping and are moving north at 1.5 million tons per month. That's a very good outcome for operations. From the perspective of exploration, we've had very, very good success in both operations at Gold Bar and at Stock.

Speaker #9: Basically did turned out not to be . Or when we got to the mining , but we pivoted there quite nicely to move into Q4 .

Speaker #9: Q4 is already looking very , very good , and we're back into the normal routine of our our mining and our stripping and our moving north of 1.5 million tonnes per month .

Speaker #9: So that's a very good outcome for operations from the perspective of exploration . We've had very , very good success in in both operations at Gold Bar and at stock and at our board meeting yesterday , we approved going ahead with the releasing of of the of of the assets in Mexico .

William Shaver: At our board meeting yesterday, we approved going ahead with the releaching of the assets in Mexico. So that will start early in the new year with construction, and then move on into leaching of the El Gallo leach pad and then putting those tailings back into the pit. We see a challenging Q4, but we're in very good shape, I would say, in the month of October, and so looking forward to the next 2 months, and we're really looking forward to getting back to producing gold in Mexico. Thank you.

Speaker #9: So that will start early in the new year with construction . And then move on into leaching of of the El Gallo leach pad and then putting those tailings back into the pit .

Speaker #9: So we see a challenging fourth quarter . But we're in very good shape . I would say in the month of of October .

Speaker #9: And so looking forward to the next two months and we're really looking forward to getting back to producing gold in Mexico . Thank you .

Speaker #7: Thank you Bill . During the year , we've enjoyed exploration , success at we discovered the from West deposit that allowed us to bridge our production during a time when we found permitting delays were backing up our production pipeline and our development plans , both at Gold Bar over at the the acquired Timberline properties .

Rob McEwen: Thank you, Bill. During the year, we've enjoyed exploration success at, we discovered the Froome West deposit that allowed us to bridge our production during a time when we found permitting delays were backing up our production pipeline and our development plans. Both at Gold Bar over at the acquired Timberline properties, we're getting excellent grades and continuity. There's one area that I don't know if everyone in the company shares my same optimism, but it's a property called Seven Troughs. Historically, it excites me because of its historic record as one of the highest grade mines in Nevada at averaging more than 1.2 ounces per ton. There was a recent grab sample in an area that historically had shown a lot of plus 1 gram material.

Speaker #7: We're getting excellent grades and and continuity . There's one area that I don't know if everyone in the company shares my same optimism , but it's a property called Seven Troughs and .

Speaker #7: Historically , it excites me because of its historic record as one of the highest grade mines in Nevada at averaging more than 1.2oz per ton .

Speaker #7: And there was a recent grab sample in an area that historically had shown a lot of plus one gram material , and that was it was better than 270g over a very short intercept .

Rob McEwen: That was better than 270 grams over a very short intercept. Still exciting, you know, given the history of that location. Gold at, in Timmins. Our Gray Fox area's growing. We'll have a preliminary economic assessment out in Q1 of next year. We've got plans to expand in Mexico, as you heard from Perry and Bill, and we're bringing in some other properties and have some investments in areas and in companies that I think have a lot of growth potential. With that, I do have to say that our miss year-to-date on our production is inexcusable, we're taking steps to remedy that and get us back on track. With that, I'll open it up for questions.

Speaker #7: But still exciting given the history of that location . Gold at in Timmins , our gray Fox area is growing will have a preliminary economic assessment out in the first quarter of next year .

Speaker #7: We've got plans to expand in Mexico . As you heard from Perry and Bill , and we're we're bringing in some other properties and have some investments in areas and in companies that I think have a lot of growth potential .

Speaker #7: So with that , I do have to say that our Miss year to date and our production is inexcusable . But we're taking steps to remedy that and get us back on track .

Speaker #7: So with that , I'll open it up for questions .

Speaker #3: Thank you . As a reminder to ask a question , you will need to press star , followed by the number one on your telephone keypad to withdraw your question again , press star one .

Operator 2: Thank you. As a reminder, to ask a question, you will need to press star followed by the number one on your telephone keypad. To withdraw your question, again, press star one. Your first question today comes from the line of Heiko Ihle from H.C. Wainwright & Co.. Your line is open.

Speaker #3: Your first question today comes from the line of Heiko Ill from H.C. Wainwright. Your line is open.

Speaker #7: Hello .

Rob McEwen: Hello, Heiko.

Speaker #10: Hey there . Can you guys . Hey , Rob , can you hear me ? Okay .

Heiko Ihle: Hey there. Doing good. Hey, Rob, can you hear me okay?

Speaker #7: Loud and clear . Can you hear us ?

Rob McEwen: Loud and clear. Can you hear us?

Speaker #10: Perfect . Just making sure . First of all , congratulations to Ian Ball on his appointment . There . Rob , you actually , earlier on this call preempted a bit of what I was going to ask you , but , I mean , your deal for Britannia or Paragon geochemical Labs .

Heiko Ihle: Perfect. Just making sure. First of all, congratulations to Ian Ball on his appointment there. Rob, you actually early on this call preempted a bit of what I was gonna ask you, but I mean, your deal for Britannia or Paragon Geochemical Labs, interesting move there. Few follow-ups to that. Do you think that you will engage in more vertical integration like this? Building on that last part, do you think we'll see a bit of an, you know, arms race, for lack of a better word, where other guys want to get involved, you know, with suppliers, distributors, in order to guarantee supply and fast processing? I mean, like one example would be, you know, an assay lab. Obviously, you can do it for independent assays, but would that be like the potential target?

Speaker #10: Interesting move there . Few follow ups to that . Do you think that you will engage in more vertical integration like this and building on that last part , do you think we'll see a bit of a arms race for lack of a better word , or other guys want to get involved ?

Speaker #10: We suppliers , distributors in order to guarantee supply and fast processing . I mean , one example would be an assay lab . Obviously you can't do it for independent assays , but would that be like the potential target , just maybe elaborate a bit on what you're describing earlier on the call and what you did .

Heiko Ihle: Just maybe elaborate a bit on what you were describing earlier on the call and what you did.

Rob McEwen: Happy to, Heiko Ihle. Paragon holds a technology called PhotonAssay, and it's an X-ray process that is faster, cheaper, more comprehensive in terms of the data being provided. I first saw this technology five years ago. It comes out of Australia. Paragon stepped in and got in line to secure 12 units, and that's about the annual production. Some of the majors have bought units for their sole use. I think, as more money comes into the mining space, and that's surely going to happen with everybody, all the sovereign nations and corporations around the world looking for new sources of mineral, being able to compress time and get more information for your dollar out of your assays is going to grow increasingly more important.

Speaker #7: To Heiko Paragon holds a technology called photo assay , and it's an x ray process that is faster , cheaper , more comprehensive in terms of the data being provided .

Speaker #7: I first saw this technology five years ago comes out of Australia . Paragon stepped in and got in line to secure 12 units , and that's about the annual production .

Speaker #7: Some of the majors have bought units for their sole use . I think as more money comes into the mining space and that's surely going to happen with everybody .

Speaker #7: All the sovereign nations and corporations around the world looking for new sources of mineral . Being able to compress time and get more information for your dollar out of your assays is going to grow increasingly more important .

Speaker #7: And the old suppliers of assays , I mean , you could see backups of three four weeks or more . And here you can get it in two weeks or less .

Rob McEwen: The old suppliers of assays, I mean, you could see backups of, well, 3, 4 weeks or more, and here you can get it in 2 weeks or less.

Heiko Ihle: Right

Speaker #7: And sometimes almost daily . So I think that's important . I mean , the whole industry is under a lot of strain right now .

Rob McEwen: Sometimes almost daily. I think that's important. I mean, the whole industry is under a lot of strain right now. There are labor problems, so there's gonna be competition there. There's equipment supplies. When someone comes along, we're gonna have all these projects coming on. Will they be able to deliver the trucks, the shovels, the drills, and that? You're already in Argentina, we looked at that problem with drills. We ended up buying 8 drills because there weren't drills down there, readily available. I mean, you know, you look at the world and say mining investments in a mix of global portfolios is very small today. It might be 1% or 2%. 10 years ago, it was up around 12%.

Speaker #7: Their labor problems . So there's going to be competition there . There's equipment supplies . When someone comes along , we're going to have all these projects coming on .

Speaker #7: Who's going to will they be able to deliver the trucks , the shovels , the drills and that you're already in Argentina ? We looked at that problem with drills .

Speaker #7: We ended up buying eight drills because there weren't drills down there readily available . And so , I mean , you know , you look at the world and say mining investments in in a mix of global portfolios is very small today .

Speaker #7: It might be 1 or 2% , ten years ago it was up around 12% . We get back to that . As you said , there's going to be a real battle for a lot of the inputs that are required to define an ore body .

Rob McEwen: We get back to that, there's, as you said, there's going to be a real battle for a lot of the inputs that are required to define an ore body. At the same time, we have to compress time in this industry. It's taking far too long to reach certain decision points. So you're going to see a lot more technology. I view what Paragon's technology, the PhotonAssay rather, is a disruptive technology that will advance the industry. We'll be looking for other opportunities to accelerate and improve the knowledge of the industry. First for us, but then for the industry.

Speaker #7: And at the same time , we have to compress time in this industry . It's taking far too long to reach certain decision points .

Speaker #7: And so you're going to see a lot more technology . I view what Paragon's technology , the crisis . Crisis rather is a disruptive technology that will advance the industry .

Speaker #7: And we . We'll be looking for other opportunities to accelerate and improve the knowledge and of the industry first for us , but then for the industry .

Speaker #10: Yeah , yeah . No good . Good answer . Obviously . Interesting move . I've seen this machine in operation . I was trying to dig up where it was , but I've seen it on a site visit before somewhere .

Heiko Ihle: Yeah. No, good answer. Obviously interesting move. I've seen this machine in operation, and I was trying to dig up where it was, but I've seen it on a site visit before somewhere. It wasn't one of your assets, it was somewhere else. At Goldboro-

Speaker #10: It was one of your assets . It was somewhere else . Yeah . It might . It might have been . I go to so many sites at Gold Bar .

Rob McEwen: No, it'd be out of Australia.

Heiko Ihle: It might have been. I go to so many sites. At Goldboro you did obviously 8,200 ounces, quite a bit lower, frankly, a bit lower than what we had in our model as well. You were talking about the reinterpretations of geological data and changes to your mine plans. What should we be looking at for next year? I mean, this sure sounds like a temporary issue, but is it?

Speaker #10: You did ? Obviously 8200oz . Quite a bit lower , frankly , a bit lower than what we had in our model as well .

Speaker #10: You were talking about the the reinterpretations of geological data and changes to your mind plans . What should we be looking at for next year ?

Speaker #10: I mean , this this sure sounds like a temporary issue , but is it ?

Speaker #9: I would say absolutely that the particular zone of of the mining operation and that that we were in in the last quarter , we we ended up with a part of the where we were mining that we anticipated would be r it turned out to be to , in fact , be unmineralized material and , and as a result , that that part of the pit basically turned into stripping material .

William Shaver: I would say absolutely that the particular zone of the mining operation and that we were in in the last quarter, we ended up with a part of the, where we were mining that we anticipated would be ore. It turned out to in fact be unmineralized material. As a result, that part of the pit basically turned into stripping material. For some reason, the historical drilling that was done, you know, many years ago, didn't identify that course of unmineralized material. We've mined through that with our stripping part, and we're now back into, you know, what we would call our normal ore.

Speaker #9: So and for for some reason the historical drilling that was done , you know , many years ago didn't identify that horse of unmineralized material .

Speaker #9: So we're , we've , we've mined through that with our stripping part and we're , we're now back into , you know , what we would call our normal or and you know , what ?

William Shaver: You know, what we're seeing in the rest of the mining that we're doing is that the reconciliation to the block model is standing up. You know, it was just, I guess, something that we missed in our confirmation drilling or something that we missed in the mine planning at the time. You know, again, this is a part of the ore body that we decided more than a year ago to start stripping because of the increase in the gold price. You know, that's what brought that whole zone into ore. You know, at the gold price that we had a year and a half ago, you know, that stripping wouldn't, and that mining would not have been done.

Speaker #9: We're seeing in the rest of the mining that we're doing is that the reconciliation to the block model is standing up . And , you know , it was just , I guess , something that we missed in our confirmation drilling or something that we missed in the mine planning at the time .

Speaker #9: And , you know , again , this is a part of the ore body that we decided more than a year ago to to start stripping because of the increase in gold price .

Speaker #9: And , you know , that's what brought that whole zone into in , into ore , you know , at the gold price that we had a year and a half ago .

Speaker #9: You know , that that's wouldn't and that mining would not have been done . So so in answer to your question , with regard to next year , you know , we see the mine plan being pretty consistent through the year .

William Shaver: In answer to your question with regard to next year, you know, we see the mine plan being pretty consistent through the year, and we'll be announcing the production guidance for next year shortly.

Speaker #9: And , and we'll be announcing the production guidance for next year shortly .

Speaker #10: Perfect . Thank you so much . I'll get back in queue . Thanks .

Heiko Ihle: Perfect. Thank you so much. I'll get back in queue. Thanks, Rob.

Speaker #11: Rob .

Speaker #7: Thanks , Heiko .

Rob McEwen: Thanks, Heiko.

Speaker #3: Again if you if you'd like to ask a question , press star one in your telephone keypad . Your next question comes from the line of Joseph Reger from Roth Capital Partners .

Operator 2: Again, if you'd like to ask a question, press star one on your telephone keypad. Your next question comes from the line of Joseph Reagor from Roth Capital Partners. Your line is open.

Speaker #3: Your line is open .

Speaker #7: Hi , Joe .

Rob McEwen: Hi, Joe.

Speaker #12: Hey , Rob . And team , thanks for taking my questions . I think Heiko asked the the two big ones there , but just kind of following up on on gold bar in the comments .

Joseph Reagor: Hey, Rob, and team. Thanks for taking my questions. I think Heiko Ihle asked the two big ones there, just kind of following up on Gold Bar. In the comments, you guys said that you're gonna be doing some more work to review this. What degree of risk do you see to an overall resource change, if any, is this just a matter of sequencing?

Speaker #12: You guys said that you're going to be doing more work to review this . What degree of risk do you see to an overall resource change , if any ?

Speaker #12: Or is this just a matter of sequencing ?

Rob McEwen: It appears to be a matter of sequencing and not a large risk.

Speaker #7: It appears to be a matter of sequencing and not a large risk .

Speaker #12: Okay , that's that's good to hear . And then you mentioned with Phoenix mid next year , how comfortable are you guys with that timeline to have all your permits .

Joseph Reagor: Okay. That's good to hear. You mentioned with Fenix mid-next year, how comfortable are you guys with that timeline to have all your permits? You know, where do you see, like, the kinda, the potential for it to get started earlier or later with, on that front? Do you expect to be publishing an updated financial study once you have permits in hand?

Speaker #12: And you know , where do you see like the kind of the potential for it to get started earlier or on the front and then do you expect to publish an updated financial study once you have permits in hand ?

Rob McEwen: Yes, the last question. The permitting is somewhat unknown. We have a permit to do some of the work, and it needs to be amended. We're hoping that the timing will coincide with what we gave you.

Speaker #7: Yes . The last question and the permitting is somewhat unknown . We have a permit to do some of the work , and it needs to be amended .

Speaker #7: And we're hoping that the timing will coincide with what we gave you .

Speaker #9: And we've had a number of meetings with the government authorities on permitting , and we're fairly optimistic that we'll have those permits in time .

William Shaver: We've had a number of meetings with the government authorities on permitting, and we're fairly optimistic that we'll have those permits in time and the construction of the plant will start in Q1.

Speaker #9: And the construction of the plant will will start in Q1 .

Speaker #12: Okay . And then part of your comments on on the Canadian gold thing , I think got cut in the beginning . What is the timeline to to complete that merger ?

Joseph Reagor: Okay. Part of your comments on the Canadian Gold thing I think got cut in the beginning. What is the timeline to complete that merger? How, what's kind of the timeline after that, you know, by quarter as far as expectations and timelines?

Speaker #12: And then how what's kind of the timeline after that ? You know , by quarter as far as Expectation's granules .

Rob McEwen: The process, there's a shareholder vote in December, and then it has to be ratified by the courts, and that's set for 6 January, I believe. Mid-January?

Speaker #7: The process there's the shareholder vote in December and then it has to be ratified by the courts . And that set for the 6th of January , I believe , or mid January six .

Joseph Reagor: Yeah.

Rob McEwen: Sixth?

Joseph Reagor: Could be a couple days early.

Speaker #12: Okay .

Speaker #7: In early January . And in terms then we'll go in there and do a resource estimate and a preliminary economic assessment on that .

Rob McEwen: Early January. Then we'll go in there and do a resource estimate and a preliminary economic assessment on that.

Speaker #12: Okay . Okay . And when do you think the what's the rough estimate assuming a Q1 close . What's the rough estimate on PE being released .

Joseph Reagor: Okay. Okay, when do you think the, what's the rough estimate, you know, assuming a Q1 close, what's the rough estimate on a PEA being released? Like, how many months or quarters?

Speaker #12: Like how many months or quarters .

Speaker #7: Oh you'd probably be looking into the fourth quarter next year okay .

Rob McEwen: Oh, you'd probably be looking into the Q4 next year.

Joseph Reagor: Okay. All right. That's helpful.

Speaker #12: All right. That's helpful.

Speaker #7: All right . Thank you .

Rob McEwen: All right.

Joseph Reagor: Turn it over.

Rob McEwen: Thank you, Joe.

Speaker #13: Joe .

Speaker #3: Your next question comes from the line of Gord Weber from RBC Capital Markets. Your line is open.

Operator 2: Your next question comes from the line of Gord Weber from RBC Capital Markets. Your line is open.

Rob McEwen: Hello, Gord.

Speaker #14: Thank you very much . Hi . Hi , Rob . With respect to resource estimates , how would McEwen Mining Inc. calibrate or estimate their proven resources .

Gord Weber: Thank you very much. Hi. Hi, Rob. With respect to resource estimates, how would McEwen Inc. now calibrate or estimate their proven resources?

Speaker #7: The same way everyone else does ?

Rob McEwen: The same way everyone else does.

Speaker #14: And how many ounces or equivalent ounces would McEwan claim to have today ?

Gord Weber: How many ounces or equivalent ounces would McEwen claim to have today?

Rob McEwen: It's all set out in our statement. We're looking at about 3 million ounces at Fox. It's about 4.2 million, I think, between all of the operations. Then we have development going on at drilling at Gray Fox right now. We're drilling down in Nevada at Gold Bar, over at Eureka, starting at Seven Troughs.

Speaker #7: It's all set out in our statements . We're looking at about 3,000,000oz at Fox and it's about 4.2 million . I think , between all of the operations .

Speaker #7: And then we have development going on at drilling at Fox right now , we're drilling down in Nevada at Gold Bar over at Eureka , starting at seven troughs .

Speaker #14: The reason I ask is it seems to me a little inequitable that we're being asked as Gold Corp. stockholders to tender 50 shares for one of those shares , when in fact we have a proven resource .

Gord Weber: The reason I ask is it seems to me a little inequitable that we're being asked as Gold Corp stockholders to tender 50 shares for 1 of those shares when in fact we have a proven resource.

Speaker #14: .

Speaker #7: Who who are you representing ? Sorry ? Who are you ? A shareholder .

Rob McEwen: Who are you representing? Sorry. Who are you a shareholder of?

Speaker #13: Of ?

Speaker #14: Yeah , I'm a stockholder . I've been a long term stockholder of Canadian Gold Corp. . Okay , we know we have proven resources , and we also know that we have a lot of drilling that hasn't been analyzed to date .

Gord Weber: Yeah, I'm a stockholder. I've been a long-term stockholder out of Canadian Gold Corp.

Rob McEwen: Okay.

Gord Weber: We know we have proven resources, and we also know that we have a lot of drilling that hasn't been analyzed to date. I assume we have greater resources than has been booked. It just seems to me 50 to 1. Well, it just seems to me very opportunistic.

Speaker #14: So, I assume we have greater resources than have been booked. And it just seems to me that 50 to 1 isn't... well, it just seems to me very opportunistic.

Speaker #7: We put a bid on the table . It was accepted by management and it's going to shareholders in December . We thought it was fair at the time and I believe management thought it was fair .

Rob McEwen: We put a bid on the table, it was accepted by management, and it's going to shareholders in December. We thought it was fair at the time, and I believe management thought it was fair.

Speaker #14: Yeah . And will there be a resource estimate for we the stockholders before it goes to vote ?

Gord Weber: Yeah. Will there be a resource estimate for we, the stockholders, before it goes to vote?

Speaker #7: We don't have any control . We don't have any control over that .

Rob McEwen: We don't have any control. We don't have any control over that.

Speaker #14: Okay . So I think that's a .

Gord Weber: Okay. I think that's a-

Rob McEwen: I don't have an answer to that question, but we're not driving the resource estimate.

Speaker #15: No , I don't I .

Speaker #7: I don't have an answer to that question, but we're not driving a resource estimate.

Speaker #14: But as the majority shareholder , don't you want to know what that number is before you conclude the transaction ? Or do .

Gord Weber: As the majority shareholder, don't you want to know what that number is before you conclude the transaction?

Rob McEwen: Um, I-

Gord Weber: Do you already have some inside information that leads you to believe it should be concluded?

Speaker #7: You I .

Speaker #14: Do already have some inside information that leads you to believe it should be concluded .

Speaker #7: No , the drilling's going . It's exciting . It's in an area that's had passed production . Although the Darton Lake mine wasn't run very well and that's why it went into bankruptcy .

Rob McEwen: No, the drilling's going, it's exciting. It's in an area that had past production, although the Tartan Lake mine wasn't run very well, and that's why it went into bankruptcy. No, it's in a favorite area of the, of the country in terms of energy costs and that, and mineral deposit.

Speaker #7: But no , it's it's in a favorite a favorite area of the country in terms of energy costs . And that and mineral deposit .

Speaker #14: Yeah . No , you don't have to sell me on the merits of the tartan mine . My concern is that is that the majority shareholders may have insight or information that the minority shareholders haven't been provided with .

Gord Weber: Yeah, no, you don't have to sell me on the merits of the Tartan mine.

Rob McEwen: Okay.

Gord Weber: My concern is that the majority shareholders may have insight or information that the minority shareholders haven't been provided with.

Speaker #7: That isn't the case .

Rob McEwen: That isn't the case.

Speaker #14: Well , that's refreshing to hear that .

Gord Weber: Well, that's refreshing to hear that.

Speaker #7: Any other comments? Questions?

Rob McEwen: Any other comments, questions?

Speaker #14: Well , perhaps we can follow that up later .

Gord Weber: Well, perhaps we can follow that up later.

Speaker #7: Fair enough . Thank you Gord . Next question .

Rob McEwen: Fair enough. Thank you, Gord. Next question.

Speaker #3: Your next question comes from Teri DeVries , a private investor . Your line is open .

Operator 2: Your next question comes from Terry Devries, a private investor. Your line is open.

Speaker #16: Hello , Mr. McEwen , how are you doing today ?

Terry Devries: Hello, Mr. McEwen, how are you doing today?

Speaker #7: Hi , Terry . Well .

Rob McEwen: Hi, Terry. I'm well. How about yourself?

Speaker #16: How about yourself ? You you know what I'm . I'm good . I'm . I'm actually really good . You know , I I've had a great couple of months watching you stock double congratulations for losses .

Terry Devries: Nice, nice to hear from you. You know what? I'm good. I'm actually really good. You know, I've had a great couple months watching your stock double. Congratulations for Los Azules. Really exciting what's happening there. You know, the gold market goes up, the gold market goes down, and we just got a fantastic buying opportunity, and so I stepped up to the plate again. The one question I have, I didn't really hear it from Michael Meding. The IPO for Los Azules, do you have any further information that you can give us when you think that might be happening? How much money you'd be willing to, or looking to raise in the first first issue?

Speaker #16: Really exciting . What's happening there ? And , you know , the gold market goes up . The gold market goes down . And we just got a fantastic buying opportunity .

Speaker #16: And so I stepped up to the plate again. The one question I have, I didn't really hear it from Michael Meding: the IPO for losses.

Speaker #16: Do you have any further information that you can give us when you think that might be happening ? How much money you'd be willing to or looking to raise in the first , first issue ?

Speaker #7: Well , we were hoping to do it earlier , but the feasibility we got that out in October and didn't feel the market we'd have enough time to do an IPO in the fourth quarter of this year .

Rob McEwen: Well, we were hoping to do it earlier, but the feasibility, we got that out in October and didn't feel the market, we'd have enough time to do an IPO in Q4 of this year. Now we're looking at going to sometime next year, taking the company public.

Speaker #7: Now we're looking at going to sometime next year , doing taking the company public .

Speaker #16: First quarter . .

Terry Devries: Q1?

Speaker #7: And in terms of raising money, our last financing was at $30 a share. I would expect that we're being accepted in the region.

Rob McEwen: In terms of raising money, our last financing was at $30 a share. I would expect that we're being accepted in the Regi. We've got the feasibility study. The project looks very attractive relative to a number of other development projects in copper, that we'd see a higher price than that when we go public.

Speaker #7: We've got the feasibility study , the project looks very attractive relative to a number of other development projects in copper that we'd see a higher price than that when we go public .

Speaker #16: Any other market moving news that you can expect in the next quarter or two .

Terry Devries: Any other market-moving news that you can expect in the next quarter or 2?

Rob McEwen: I don't know. I'm gonna go meet with the President of Argentina tomorrow in New York. I don't think that'll move the market.

Speaker #7: I don't know . I'm going to go meet with the president of Argentina tomorrow in New York . I don't think that'll move the market .

Speaker #16: Yeah , well , your drill bits success has been rather encouraging . So I wish you all the luck in pursuing that . And look forward to some good news .

Terry Devries: Well, your drill bits' success has been rather encouraging, so I wish you all the luck in pursuing that, and look forward to some good news. Thanks for taking my call.

Speaker #16: And thanks for taking my call .

Speaker #7: You're welcome . Terry . Thank you .

Rob McEwen: You're welcome, Terry. Thank you.

Speaker #3: And there are no further questions at this time , Mr. Robert McEwen . I turn the call back over to you .

Operator 2: There are no further questions at this time. Mr. Rob McEwen, I turn the call back over to you.

Speaker #7: Thank you very much . Operator . Thank you , everyone . We've set our course where we're going . We think by planning , by 2030 to have substantially more production .

Rob McEwen: Thank you very much, operator. Thank you, everyone. We've set our course where we're going. We think by planning by 2030 to have substantially more production coming out of our gold mines. There are a couple of other projects we'd like to see brought into production, and we hope to have the copper mine up and running by in 2030. All good news in the long term. Thank you.

Speaker #7: Coming out of our gold mines . There are a couple of other projects we'd like to see bring brought into production , and we hope to have the copper mine up and running by in 2030 .

Speaker #7: So all good news in the long term . Thank you .

Operator 2: This concludes today's call. You may now disconnect.