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McEwen Mining

McEwen Mining Inc is a mining and minerals production and exploration company focused on precious and base minerals in Argentina, Mexico, and the United States. The company's overall revenue is principally derived from the production of gold and silver. The company owns and operates the wholly-owned El Gallo 1 mine in Mexico, and has a minority shareholding in the company that operates the San Jose mine in Argentina. More than half the company's gold output is produced by the El Gallo 1 mine. The remaining gold production, and the majority of silver production, is produced by the San Jose mine. Geographically, the majority is from Canada.

McEwen Mining Inc

McEwen Copper, a subsidiary of McEwen Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUX#NYSE">MUX</a>), seeks $2.5 billion to advance the Los Azules copper project in Argentina. The prospective project wants to become <a href="https://www.benzinga.com/topic/copper">a world-class copper mine </a>with an anticipated annual production of 175,000 metric tons.
&#8220;We have invested more than $400 million to date, and now we are looking for $2.5 billion for capex,&#8221; Vice President Michael Meding told Reuters. The project in San Juan province is waiting for a key environmental permit by the end of 2024, with construction slated to begin by late 2025.
Los Azules ranks among the top 10 largest undeveloped copper deposits globally, with 10.9 billion pounds of indicated resources and an additional 26.7 billion inferred. Current copper prices ($4.09 per pound) put the worth of indicated resources at over $44.5 billion.
However, as the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40831930/copper-deficit-to-reach-4-million-tons-by-2030-analyst-predicts-mining-electrificat">global copper supply deficit</a> could reach as high as 4 million metric tons by 2035, these prices could be much higher. Meanwhile, copper extraction costs are worth noting, which, for an industry leader, Freeport McMoRan, equaled $1.61 per pound in 2023.
Also Read: <a href="https://www.benzinga.com/24/11/42216178/biden-pushes-for-greenlands-minerals-trump-unlikely-to-reverse-course">Biden Advances Greenland Mineral Partnerships As Trump Policies Could Reshape US Mining</a>
Chairman Rob McEwen has taken steps to solidify local and international support for the project. In a <a href="https://www.benzinga.com/markets/commodities/24/07/39941234/exclusive-mining-legend-robert-mcewen-investors-should-be-aware-that-there-is-cyclicality-and">recent interview</a> for Benzinga, he mentioned visiting Argentina and discussing opportunities with President Javier Milei.
Milei took office a year ago and is trying to revitalize the country's mining sector, as its only operating copper mine closed in 2018. So far, Los Azules has attracted substantial backing, including a $35 million investment from Rio Tinto venture Nuton during the latest funding round in October. Nuton now holds a 17.2% stake in McEwen Copper.
McEwen highlighted automaker Stellantis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) as another key investor. The copper shortage risk prompted companies to seek security for materials essential for EV production, renewable energy systems, and grid infrastructure. Following green trends, the mine will rely on 100% renewable energy provided by Argentina's YPF Luz.
As one of the largest undeveloped deposits, Los Azules could become a cornerstone for addressing the global copper supply gap. With copper demand forecasted to grow over 50% by 2035, there should be plenty of interest in this capital raise.
Read Next:<a href="https://www.benzinga.com/24/11/42216178/biden-pushes-for-greenlands-minerals-trump-unlikely-to-reverse-course"> </a>
<ul>
<li><a href="https://www.benzinga.com/24/11/42216178/biden-pushes-for-greenlands-minerals-trump-unlikely-to-reverse-course">Biden Advances Greenland Mineral Partnerships As Trump Policies Could Reshape US Mining</a></li>
</ul>
Photo: Shutterstock

News

Financing

Commodities

Global

STLA

Copper Supply Gap Drives McEwen's $2.5B Fundraising For Los Azules

WIIM

GATO

GOLD

PAAS

SAND

SBSW

Shares of metals and materials companies are trading lower. The sector may be reacting to China's recent stimulus efforts which have struggled to buoy the economy and business conditions.

Roth MKM analyst Joe Reagor maintains McEwen Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUX#NYSE">MUX</a>) with a Buy and lowers the price target from $12.75 to $12.25.

Price Target

Analyst Ratings

Roth MKM Maintains Buy on McEwen Mining, Lowers Price Target to $12.25

HC Wainwright &amp; Co. analyst Heiko Ihle maintains McEwen Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUX#NYSE">MUX</a>) with a Buy and raises the price target from $15 to $19.

HC Wainwright & Co. Maintains Buy on McEwen Mining, Raises Price Target to $19

<ul>
<li>McEwen Copper previously announced a non-brokered private placement financing of up to&nbsp;2,333,333&nbsp;common shares&nbsp;at a subscription price of&nbsp;US$30.00&nbsp;per common share, for gross proceeds of up to&nbsp;US$70 million&nbsp;(the "Offering"). The first tranche of the Offering was led by a $14 million investment by McEwen Mining and a $5 million investment by Rob McEwen.</li>
<li>In this second tranche of the Offering, Nuton (a Rio Tinto Venture) has purchased an additional 1,166,666 common shares of McEwen Copper for $35 million and two other investors have acquired 66,669 common shares for $2 million. Following the closing of this second tranche of the Offering, McEwen Copper has raised a total of $56 million.</li>
<li>Nuton now owns 17.2% of McEwen Copper on a fully diluted basis. Following these share issuances, McEwen Copper will have 32,804,284 common shares outstanding, giving it a post-money market value of $984 million, and its shareholders are: McEwen Mining Inc. 46.4%, Stellantis 18.3%, Nuton 17.2%, Rob McEwen 12.7%, Victor Smorgon Group 3.0%, and other shareholders 2.0%.</li>
<li>Proceeds from the Offering will be used to advance ongoing work on the feasibility study for the Los Azules copper project, which is scheduled for publication in the first half of 2025.</li>
</ul>

Markets

General

McEwen Copper Inc., A Subsidiary Of McEwen Mining Announced The Closing Of An Additional $35M Investment By Nuton, A Rio Tinto Venture

SSRM

Shares of precious metals stocks are trading higher amid a rise in the price of gold and silver.

Source: <a href="https://www.streetwisereports.com/article/2024/10/09/a-triple-threat-in-metals-copper-gold-and-silver.html?utm_medium=feed">John Newell 10/09/2024</a>
John Newell of John Newell &amp; Associates explains why he likes McEwen Mining Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mux#NYSE">MUX</a>)
As the World Series gets closer, we are reminded of the term in baseball, &quot;triple threat&quot; which typically refers to a player who excels in three key areas of the game: hitting, fielding, and running. A player who is skilled in all three of these aspects is considered highly versatile and valuable, as they can contribute in multiple ways to the success of the team.
When used metaphorically in business or investing, as in the article title, it implies that the company excels in three major areas or possesses three significant strengths. In the case of the mining company, &quot;triple threat&quot; is referring to the company&#39;s strong positions in gold, silver, and copper, making it versatile and well-positioned to capitalize on different market trends in these critical metals.
We believe this term applies to McEwen Mining Inc.
October 8, 2024:
<ul>
<li>Positioned to capitalize on surging demand for critical minerals in the AI and renewable energy sectors.</li>
<li>A gold and silver producer with significant exposure to copper, a metal at the heart of electrification.</li>
<li>Led by Rob McEwen, a mining pioneer, with personal stakes in McEwen Mining and its copper subsidiary.</li>
</ul>
<h2>Introduction</h2>
<img alt="" class="No_img_class" src="https://www.theaureport.com/images/auto_up/2024109100012_1.png" style="height:688px; width:1000px" />
Source: McEwen Mining
The world is at an inflection point, where the demand for critical metals like copper, gold, and silver is poised to surge as AI, electrification, and renewable energy projects expand. Investors looking for exposure to these transformative markets should have McEwen Mining Inc. on their radar. With an asset-rich portfolio across the Americas, McEwen Mining now represents a triple threat &mdash; gold, silver, and copper &mdash; all set to benefit from a growing global appetite for these metals.
Under the stewardship of Rob McEwen, a soft spoken, visionary leader, whose track record speaks volumes, McEwen Mining is well-positioned to outperform. Rob McEwen&#39;s personal investment of over $225 million in the company and its subsidiary, McEwen Copper, demonstrates his alignment with shareholders and unwavering commitment to value creation.
<h2>The New Triple Threat: Gold, Silver, and Copper</h2>
In a landscape where technological innovation and sustainability drive market demand, the need for precious and industrial metals has never been more critical.
McEwen Mining&#39;s portfolio shines in this regard, offering a mix of gold and silver production along with large-scale copper potential. Here&#39;s why each of these metals makes McEwen Mining a compelling investment:
The First Threat Gold: The Cornerstone of Wealth and Technology
Gold&#39;s role as a store of value is well-established, but its importance in the tech world is often underappreciated. Gold&#39;s unique properties &mdash; its malleability, durability, and reliability &mdash; make it crucial for the manufacturing of electronic components, particularly in advanced technologies such as AI. Whether in connectors, bonding wires, or high-precision electronics, gold is indispensable for the smooth operation of AI systems.
McEwen Mining&#39;s gold assets, particularly in Ontario&#39;s Timmins camp and Nevada, are positioned to deliver stable and growing production. Recent exploration results from the Timmins camp have indicated high-grade gold intersections, suggesting there&#39;s more value to unlock.
The Second Threat Silver: The Unsung Hero of High-Tech Innovation
Silver is often overshadowed by gold, but its role in technological advancements cannot be ignored. Its superior conductivity makes silver critical in the production of sensors and connectors, which are essential for AI systems and data centers. Additionally, silver is a key component in photovoltaic cells for solar panels, which are vital for renewable energy infrastructure.
McEwen Mining&#39;s silver operations, particularly in Mexico and Argentina, position the company to benefit from rising demand in both high-tech and green energy sectors. As silver prices continue to rise, McEwen&#39;s diversified production base ensures it can capitalize on this momentum.
The Third Threat Copper: The Backbone of the Green Revolution
Copper is the third pillar of McEwen Mining&#39;s triple threat. With the ongoing energy transition, copper&#39;s importance cannot be overstated. From EVs to renewable energy grids and AI data centers, copper is the material that underpins the entire infrastructure.
McEwen Copper&#39;s Los Azules project in Argentina is a behemoth in the making. With 37.6 billion pounds of copper resources, it ranks among the world&#39;s largest undeveloped copper deposits. What makes Los Azules stand out is not just its size but its location and operational advantages. Situated at a lower altitude, it offers significant cost savings compared to many of its competitors. With a projected 27-year mine life and all-in-sustaining costs under $1.60/lb, Los Azules is poised to become a major global supplier as copper shortages intensify.
<h2>McEwen&#39;s Strategic Positioning for the Future of AI and Electrification</h2>
The explosion of AI technologies and the global push for renewable energy have created a critical need for the metals that McEwen Mining produces. Copper and silver are essential for building the infrastructure behind AI data centers, renewable energy systems, and EVs. Meanwhile, gold continues to secure its place as a cornerstone of both wealth and technology.
McEwen Mining&#39;s strategic footprint across North and South America ensures it is well-positioned to supply the critical minerals needed to power the future. Its operations in copper, gold, and silver make it a key player in the ongoing technological and energy revolution.
<h2>Rob McEwen: The Visionary Behind the Company</h2>
<img alt="" class="No_img_class" src="https://www.theaureport.com/images/auto_up/2024109100052_2.png" style="height:645px; width:1000px" />
Source: McEwen Mining
No discussion of McEwen Mining is complete without acknowledging the vision and leadership of Rob McEwen. A legend in the mining industry, McEwen is best known for founding Goldcorp and growing it from a $50 million company to an $8 billion behemoth. Mr. McEwen&#39;s foresight led him to be an early investor in Great Bear Resources, personally and with McEwen Mining, and provided critical funding just as it was finding its exploration legs and exploration funds were difficult to raise. Today, he brings the same tenacity and foresight to McEwen Mining, with a personal stake of 16% in the company and 13% in McEwen Copper.
McEwen&#39;s commitment to innovation is evident in the company&#39;s approach to sustainable mining. Los Azules, for example, will be powered by 100% renewable energy, setting a new standard for responsible copper production. McEwen&#39;s vision goes beyond mere resource extraction &mdash; he aims to reshape the public perception of mining as an industry that can operate responsibly while delivering significant shareholder value.
<img alt="" class="No_img_class" src="https://www.theaureport.com/images/auto_up/2024109100128_3.png" style="height:561px; width:1000px" />
Source: McEwen Mining
<h2>Technicals</h2>
The shares have pulled back and are currently at Fibonacci Support or 0.618 of the last move higher from the last major low.
We think we could be in the zip/postal code of a low here.
<img alt="" class="No_img_class" src="https://www.theaureport.com/images/auto_up/2024109100200_4.png" style="height:857px; width:945px" />
<h2>Outlook: Positioned for Growth Amid Global Commodities Demand</h2>
As the world increasingly relies on AI, renewable energy, and EV infrastructure, the demand for critical minerals like copper, gold, and silver is only going to rise. McEwen Mining stands at the forefront of this shift, offering investors exposure to three key metals that are essential for the future of technology and sustainability.
McEwen Mining&#39;s ability to deliver consistent growth in gold and silver production, combined with the massive potential of Los Azules, positions the company as a prime candidate to benefit from the next commodity supercycle. Investors looking for a diversified, resource-rich company with a proven track record should keep McEwen Mining on their radar.
<img alt="" class="No_img_class" src="https://www.theaureport.com/images/auto_up/2024109100224_5.png" style="height:510px; width:1000px" />
Source: McEwen Mining
<h2>Conclusion: A Triple Threat with Immense Potential</h2>
With its robust portfolio spanning gold, silver, and copper, McEwen Mining is more than just a precious metals producer it is a critical player in the supply chain for the technology and energy sectors. As AI and renewable energy markets continue to expand, the demand for these metals will surge, and McEwen Mining is well-positioned to meet that demand.
Investors should consider McEwen Mining not only for its exposure to gold and silver but also for its growing role in copper, the backbone of the future economy. With Rob McEwen&#39;s proven leadership and the company&#39;s commitment to responsible mining, this triple threat offers a unique opportunity to capitalize on the next wave of global commodities demand.
Important Disclosures:
<ol>
<li>John Newell: I determined which companies would be included in this article based on my research and understanding of the sector.</li>
<li>Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.</li>
<li>This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports&#39; terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
<li>John Newell Disclaimer</li>
</ol>
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it&#39;s advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

Technicals

Offerings

Small Cap

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Tech

Trading Ideas

A Triple Threat in Metals: Copper, Gold, and Silver

RGLD

Shares of gold companies are trading higher following a spike in the price of the safe haven asset after Iran launched a missile attack on Israel.

Shares of precious metals companies are trading lower amid a pullback in gold and silver.

Vice President Kamala Harris has vowed to establish a national stockpile of critical minerals, citing their importance for economic and national security. This initiative forms part of her broader $100 billion industrial policy proposal, unveiled Wednesday, which includes various measures to strengthen the <a target="_blank" href="https://www.benzinga.com/topic/us-economy" rel="noreferrer noopener">U.S. economy</a>.
Harris's &#8220;America Forward&#8221; agenda aims to reduce the U.S. <a target="_blank" href="https://www.benzinga.com/markets/commodities/24/04/38114381/critical-minerals-race-heats-up-us-eu-challenge-chinas-dominance" rel="noreferrer noopener">reliance on foreign sources</a>, particularly China, for these crucial resources. The strategy proposes new incentives, including tax credits, and potentially invoking the Defense Production Act to boost domestic processing capabilities.
As reported by Bloomberg, Kamala Harris&#8217; campaign stated that enhanced domestic production and other sustainable initiatives would strengthen critical mineral supply chains with allies and partners. This includes encouraging investments that boost the production of these resources in the U.S. and among allied countries.
Critical minerals, including lithium, cobalt, and rare earth elements, are essential for modern technology and defense applications. These materials are indispensable for producing electric vehicle batteries, semiconductors, and military equipment. China currently dominates the global processing of many minerals, posing a strategic vulnerability for the U.S. As demand for clean energy and advanced technology grows, securing a steady supply of these minerals has become a top priority.
President Biden's administration has already <a target="_blank" href="https://www.benzinga.com/markets/esg/24/03/37914506/bidens-475m-for-mining-aims-to-power-communities-hit-hardest-by-our-evolving-energy-landscape" rel="noreferrer noopener">made significant strides</a> in addressing this issue. Through initiatives like Executive Order 14017, Biden ordered a comprehensive review of critical mineral supply chains, leading to billions in investments to strengthen domestic capabilities. Since Biden took office, more than $120 billion has been committed to building battery and critical mineral supply chains, creating over 250,000 energy jobs, and ensuring future demand for essential materials like lithium and cobalt is met.
Despite these efforts, the U.S. mining sector still needs to overcome significant challenges. Domestic mining projects take <a target="_blank" href="https://www.benzinga.com/news/24/07/39870803/us-mine-development-delays-among-worlds-longest-second-only-to-zambia" rel="noreferrer noopener">nearly 29 years </a>to move from discovery to production, according to a study from S&amp;P Global published in July.
This timeline is significantly longer than in countries like Canada and Australia, where litigation risks and regulatory hurdles are much lower. These factors have slowed progress and discouraged private-sector investment in U.S. mining ventures.
Still, the push to increase domestic production of critical minerals has gained bipartisan support, as Republicans and Democrats recognize its strategic importance.
Thus, regardless of the outcome of the upcoming election, the U.S. will likely continue prioritizing critical mineral production, securing the nation's needs for the energy transition.
Read Next: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/41038172/amid-resistance-from-harris-and-trump-nippon-steel-scores-favorable-arbitration-ruling-in-14-9b-" rel="noreferrer noopener">Amid Resistance From Harris And Trump, Nippon Steel Scores Favorable Arbitration Ruling In $14.9B US Steel Acquisition Deal</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
Photo via Shutterstock

Government

Regulations

Topics

Media

PPTA

Harris Vows To Push 'America Forward,' Stockpile Critical Minerals

Shares of gold companies are trading higher after the price of the commodity reached all-time highs following last week's Fed rate cut.

Shares of precious metals stocks are trading higher as gold and silver rise amid a drop in the US dollar following recent inflation data.

McEwen&nbsp;Mining&nbsp;Inc. (NYSE:<a href="https://www.benzinga.com/stock/MUX#NYSE">MUX</a>) (TSX:<a href="https://www.benzinga.com/stock/MUX#TSX">MUX</a>) is pleased to announce that its 48%-owned McEwen Copper Inc. has secured an agreement with YPF Luz to power its large Los Azules copper project with 100% renewable energy. This exclusive agreement covers the supply of renewable energy through a high-voltage transmission line, with YPF Luz responsible for its development and financing.
&nbsp;
YPF Luz and McEwen Copper have signed a Memorandum of Understanding (MOU) that allows the companies to negotiate the exclusive energy supply for the Los Azules project in the San Juan province using renewable energy sources. The agreement also includes connecting the project to the Argentine Interconnection System (SADI) via a high-voltage transmission line, the design, construction, and financing of which will be carried out by YPF Luz. The energy to be supplied will be sourced from&nbsp;YPF Luz&#39;s renewable assets connected to SADI.

McEwen Mining's 48%-Owned McEwen Copper Expands Agreement With YPF Luz To Power Its Large Los Azules Copper Project With 100% Renewable Energy

Timberline Resources Corporation (OTCQB:<a href="https://www.benzinga.com/stock/TLRS#OTCQB">TLRS</a>)(TSXV:<a href="https://www.benzinga.com/stock/TBR#TSXV">TBR</a>) ("Timberline" or the "Company") is pleased to announce that its stockholders have approved the previously announced merger with McEwen Mining Inc. ("McEwen"). Based on the preliminary tabulation of the stockholder vote, more than 99.98% of the shares voted at the special meeting, representing approximately 62.50% of the shares of Timberline common stock outstanding as of the record date for the special meeting, were voted in favor of the adoption of the merger agreement with McEwen (the "Merger Agreement").
The final voting results of the special meeting, as tabulated by an independent inspector of elections, will be reported on a Form 8-K to be filed with the U.S. Securities and Exchange Commission.
The closing of the transaction is expected to occur on or about August 19, 2024.

TLRS

Timberline Stockholders Approve Merger With McEwen Mining

McEwen Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUX#NYSE">MUX</a>) reported quarterly losses of $(0.26) per share which missed the analyst consensus estimate of $(0.22) by 18.18 percent. The company reported quarterly sales of $47.476 million which beat the analyst consensus estimate of $43.900 million by 8.15 percent. This is a 38.03 percent increase over sales of $34.395 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

McEwen Mining Q2 2024 GAAP EPS $(0.26) Misses $(0.22) Estimate, Sales $47.476M Beat $43.900M Estimate

An early exposure to financial markets, a strong desire to build on his father&#8217;s legacy, and an innovative approach to an archaic industry helped turn Robert McEwen into one of the most <a href="https://www.benzinga.com/topic/mining">successful mining executives</a>.
After completing a round of financing for an advance-stage copper project in Argentina, McEwen spoke to Benzinga about his beginnings, Goldcorp&#8216;s transformation, and plans for his current venture, McEwen Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUX#NYSE">MUX</a>).
<h2 class="wp-block-heading">Veteran&#8217;s Apprentice</h2>
After contracting polio in WW2, Robert's father, Donald McEwen, turned to business, becoming a stockbroker and a fund manager.
"Our dining room table was always a discussion about gold, and he had me charting stocks when I was around 10 years old," Robert noted, stating that he bought his first stock when he was 12.
"Father took a keen interest in gold, looking at the IMF numbers and fund flows, and I guess by osmosis, I picked up that gold bug. That is how hard assets became a mantra of my life," he added. After getting an MBA, Robert spent time at Merril Lynch before returning to work in the family business.
<h2 class="wp-block-heading">From MBA To Mining</h2>
McEwen's father structured Goldcorp as a closed-end investment company, allowing institutions to circumvent the prohibition against having exposure to foreign shares and gold bullion.
"It was an exciting time. This approach went viral. It was an innovation in the marketplace, and by the end of the 1970s, gold ran up to $850 an ounce."
Following his father&#8217;s death, McEwen took over and began making radical changes, taking advantage of marketplace dislocations caused by holding companies falling out of favor.&nbsp;
"We had mining companies trading at two to three times NAV, and I thought – we are trading at a 50% discount, I could make a mining company stronger if I merged with it. So I jumped in and bought control of two mining companies and then rolled the holding company into a mining company," McEwen said.
<h2 class="wp-block-heading">A Digital Contrarian</h2>
McEwen's experience of navigating of turbulent markets, hostile takeover attempts, and personal threats gave him the tools to recognize and take advantage of burgeoning opportunities like the Internet and make mining a more exciting industry. 
"We were exploring the mine at Red Lake and found quite a bit of gold, but our head of operations didn&#8217;t know how big the deposit would be nor how long it would take to find out. Meanwhile, I enrolled in a course at MIT through a Young Presidents organization. On the second day, they started talking about Linux and open-source code, and all of a sudden, a light bulb went off, and I realized that&#8217;s how I&#8217;m going to reach the world."
Contrary to other mining firms that guarded their geological data, McEwen uploaded it all to the Internet, offering a prize of half a million dollars to the person with the best idea.
"We were looking for people to tell us where to find the next six million ounces of gold. It was the number I derived from the neighboring mine, the Campbell Mine, that produced that gold, and we were basically in the same ore body."
Over 1,500 contestants looked at the data, and the results redefined the geological interpretation of the deposit.
"We found over $3 billion worth of gold," he said, chuckling that nuggets don&#8217;t fall far from the ore body; the creativity gene runs in the McEwen clan.
<h2 class="wp-block-heading">Among The Giants</h2>
Owing to successful exploration and a thorough restructuring of the Red Lake asset, by 2004, Goldcorp produced 628,000 ounces of gold for $115 per ounce, ending that year with 5.2 million ounces in reserves. The firm was among the lowest-cost large-scale miners globally when McEwen decided to step down as CEO.
"We had gone from $50 million to $8 billion in a market cap, and I thought about whether we could drive that type of growth. That was going to get harder and harder, and I was getting tired of corporate governance," he said before clarifying that having corporate governance is necessary but cumbersome.
"We had a ton of money in the bank, no debt, and were one of the lowest-cost gold producers in the world. It was a good time to step away," he added.
<h2 class="wp-block-heading">Toward A Fresh Challenge</h2>
During the Goldcorp days, McEwen invested heavily in the junior mining sector.
"It was a listening post to what was happening in the industry. I thought we could bring them in, but some of these companies grew quite quickly, so I instead sold the positions to pay for the development of the new Red Lake Mine," he noted.
Accordingly, after stepping down as CEO, he constructed new roles for his involvement, setting the stage for a new venture.
"I wanted anywhere between 10% and 30%, not to serve on board, first right of refusal on future financing, veto on major acquisitions, divestitures, and M&amp;A. I wanted a safeguard against them doing something that I thought was foolish."
Eventually, the consolidation of these stakes created McEwen Mining.
&#8220;I put two of the companies together where I had 25 and 27 percent, with interesting projects in the United States, Mexico and Argentina.&#8221;
<h2 class="wp-block-heading">Searching For New Oil</h2>
McEwen Mining has four mines in production, two in development, and one advanced exploration project. Currently, the market focuses on copper, with numerous institutions like Bank of America predicting a supply shortfall of 5 million tons by 2030.&nbsp;
McEwen plans to mine copper at the Los Azules project near San Juan, Argentina, through a subsidiary, McEwen Copper.
"I haven&#8217;t heard that copper is new gold, but I have heard it is new oil. I like to compare the prices and calculate the gold equivalent. The size of the gold equivalent resource at Los Azules changes daily with the price fluctuations. Still, right now, it would equal around 64 million gold ounces of deposits – which is a very big deposit, and our all-in-sustaining just around $925, and it is for a 27-year mine life, and that&#8217;s only mining 40% of the resource we know."
Various manufacturers are following McEwen, rushing to acquire copper before anticipated shortages hit the market.
"The second-largest shareholder in our copper project is Stellantis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>), the fourth-largest car manufacturer in the world. Some metals are essential to modern technologies, and if we&#8217;re sourcing them from countries we don&#8217;t have good relationships with, we have to find new sources," McEwen said, clarifying that President Javier Milei&#8216;s new policies would add up to over a billion of dollars in net present value to the project.
<h2 class="wp-block-heading">Skin In The Game</h2>
Junior miners often look the same, and hundreds, if not thousands are out there. Still, McEwen has advice on how to look for nuggets.
"Investors should be aware that there is cyclicality and seasonality. They can come together, as there is a seasonal pattern in commodity prices. You might want to buy during the tax-selling period at the end of the year, or you might want to buy in the summer. In the fall, precious metals usually do better," he said. "I try to avoid companies that sell royalties. I just feel that it&#8217;s like the siren on the rocks that beckons the sailors. That&#8217;s happening to some producers &#8211; they give much of their future margin."
As a prominent figure in the mining community, McEwen said he often gets pitched ideas.
"The first thing I ask is, how much have you committed personally? Have you loaded up with options or mortgaged your house?" McEwen thinks it is important to have skin in the game.
Carrying the title of Chief Owner Officer, McEwen is proud of putting his capital behind his ideas.
"Between McEwen Mining and McEwen Copper, I have personally invested $225 million. That&#8217;s my cost, and I take a dollar a year in salary. I&#8217;m committed to seeing this grow."
Read Next:
<ul>
<li> <a href="https://www.benzinga.com/government/24/07/39894362/exclusive-impossible-metals-ceo-says-presale-agreements-quite-attractive-for-funding-deep-sea-projec">EXCLUSIVE: Impossible Metals CEO Says Presale Agreements &#8216;Quite Attractive&#8217; For Funding Deep-Sea Projects Vs. IPO</a></li>
</ul>
Photo courtesy of McEwen Mining.

Exclusives

Interview

EXCLUSIVE: Mining Legend Robert McEwen — 'Investors Should Be Aware That There Is Cyclicality And Seasonality'

Shares of precious metals stocks are trading higher as gold and silver rise following US jobs data.

Shares of precious metals stocks are trading higher as gold and silver rise amid a drop in the dollar following key US economic data.

Top Stories for May 29, 2024:
1. BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) requested more time beyond today&#8217;s 4:00 p.m. GMT deadline to finalize its <a href="https://www.benzinga.com/m-a/24/05/39058602/bhp-requests-extension-beyond-4-pm-gmt-deadline-to-finalize-anglo-american-deal">$50 billion takeover</a> bid for Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAUKF#OTC">AAUKF</a>). 
<ol></ol>
After a previous extension from the original May 22 deadline, BHP cited the complex structure of the deal as the reason for needing additional time.&nbsp;
The firm has even offered a break fee if the merger is blocked due to antitrust or regulatory issues.&nbsp;
The negotiations are facing challenges over South African assets, local ownership and employment security concerns.&nbsp;
BHP made commitments to South Africa, including maintaining current employment levels at Anglo&#8217;s Johannesburg office and sharing increased employee ownership costs.
2. GoldMining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDG#NYSE">GLDG</a>) started drilling at its 100% owned São Jorge Gold Project in Pará State, Brazil. The project covers 45,997 hectares in the Tapajos Gold District. 
<ol start="2"></ol>
The drilling program includes 1,000 meters of diamond core drilling and 3,000 meters of power auger drilling.&nbsp;
Objectives are to confirm high-grade mineralization at the existing deposit and to explore new targets along a high-strain corridor.&nbsp;
The program also aims to identify bedrock sources of geochemical anomalies within a 12 km x 7 km area.
Also Read:<a href="https://www.benzinga.com/topic/mining"> </a><a href="https://www.benzinga.com/news/24/05/39008503/equinox-pours-first-gold-at-geenstone-billion-dollar-acquisition-is-transformational-analyst-says">Equinox Pours First Gold At Geenstone: Billion-Dollar Acquisition &#8216;Is Transformational,&#8217; Analyst Says</a>
3. Ivanhoe Electric (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IE#NYSE">IE</a>) provided an update on the Santa Cruz Copper Project in Arizona. 
<ol start="3"></ol>
Executive Chairman Robert Friedland and CEO Taylor Melvin announced the selection of Fluor Enterprises as the lead consultant for the Preliminary Feasibility Study (PFS), with BBA USA handling mineral resources and mine engineering.&nbsp;
This milestone advances the high-grade underground copper project, aiming to complete the PFS by Q2 2025.
4. McEwen Mining (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUX#NYSE">MUX</a>) announced a public financing of $22 million to fund exploration and development at the Fox Complex in Ontario, focusing on exploration drilling and an underground access ramp. 
<ol start="4"></ol>
The financing consists of $10 million in flow-through shares for Canadian Exploration Expenses and $12 million in flow-through shares for Canadian Development Expenses.&nbsp;
The offering of 1,533,000 shares is expected to close on June 14, pending customary approvals. 
Net proceeds are anticipated to be $20.9 million.
Now Read:<a href="https://www.benzinga.com/"> </a><a href="https://www.benzinga.com/news/24/05/38989518/apple-supply-chain-includes-blood-minerals-from-congo-lawyers">Apple Supply Chain Includes &#8216;Blood Minerals&#8217; From Congo: Lawyers</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get connected with the Benzinga community!
Image generated using artificial intelligence via Midjourney.

AAUKF

GLDG

BHP Seeks Extension For Takeover; GoldMining Begins São Jorge Drilling; Ivanhoe Electric Advances Copper Project And More: Wednesday's Top Mining Stories

The proceeds of this financing will be used exclusively for qualifying Canadian Exploration Expenses (within the meaning of subsection 66.1(6) of the Income Tax Act (Canada)) (&quot;CEE&quot;) and Canadian Development Expenses (within the meaning of subsection 66.2(5) of the Income Tax Act (Canada)) (&quot;CDE&quot;), including:
Part 1 (CEE) of the financing consists of a&nbsp;US$10.0 million&nbsp;(Cdn$13,650,890) offering of 643,000 flow-through common shares at a price of&nbsp;US$15.56&nbsp;(Cdn$21.23); and
Part 2 (CDE) of the financing consists of a&nbsp;US$12.0 million&nbsp;(Cdn$16,384,900) offering of 890,000 flow-through common shares at a price of&nbsp;US$13.49&nbsp;(Cdn$18.41),
(Part 1 (CEE) and Part 2 (CDE) together being the &quot;Offering&quot;).
The Offering of 1,533,000 flow-through common shares for aggregate gross proceeds of&nbsp;US$22.0 million&nbsp;(Cdn$30,035,790) is expected to close on June 14, 2024 (the &quot;Closing&quot;) and is subject to customary closing conditions, including approval from the Toronto Stock Exchange (&quot;TSX&quot;) and New York Stock Exchange (&quot;NYSE&quot;). Total proceeds from the Offering net of placement agents&#39; fees is expected to be US$20.9 million (Cdn$28,534,000).

Reported Earlier, McEwen Mining Prices $22M Flow-Through Financing At 19% Premium For Canadian Exploration Expenses

Reports Q3 revenue $52.3M, consensus $67.65M. Reports Q3 production 38,500 gold equivalent ounces. Average gold price sold was $2,499 per ounce in ...

McEwen Mining reports Q3 EPS (4c), consensus (15c)

Here's the major earnings before the open tomorrow

McEwen Mining, Inc. (MUX) Q3 2024 Earnings Call Transcript

McEwen Mining Inc ( ($MUX) ) has released its Q3 earnings. Here is a breakdown of the information McEwen Mining Inc presented to its investors. McE...

McEwen Mining Inc. Reports Q3 2024 Earnings

H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on McEwen Mining (MUX – Research Report) today and set a price target of $19.00. Heiko I...

McEwen Mining: Strong Q3 Performance and Positive Long-term Outlook Amid Operational Challenges

H.C. Wainwright analyst Heiko Ihle raised the firm's price target on McEwen Mining (MUX) to $19 from $15 and keeps a Buy rating on the shares follo...

McEwen Mining price target raised to $19 from $15 at H.C. Wainwright

Is inflation dead? Fears of renewed spikes in 2025

Is inflation dead? Most SA readers fear increased tariffs will drive higher prices

McEwen Mining seeks $2.5B for Argentina copper mine Los Azules - Reuters

McEwen Mining seeks $2.5B for Los Azules copper mine in Argentina - Reuters

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Press Releases

McEwen Mining Q2 2024 Results Conference Call

McEwen Mining: Q2 2024 Results

McEwen Copper Update, Excitement in Argentina: Milei Magic Is Turbocharging Foreign Investments; US$4.4 Billion Copper Transaction by BHP and Lundin Mining; Los Azules Infill Drilling Confirmed High Grade Copper Zone

McEwen Mining Announces Closing of Timberline Acquisition

Recent and Upcoming McEwen Mining and McEwen Copper Presentations

100% Renewable Energy for Los Azules

McEwen Mining: Grey Fox Exploration Update

McEwen Copper Announces an Additional US$35 Million Investment by Nuton, a Rio Tinto Venture

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