- Both gold and copper have seen significant increases in market value in recent months, and copper is forecast to be one of the best-performing of all commodities in 2023, based upon increased demand and projected shortages
- McEwen Mining is a majority shareholder of McEwen Copper, which owns the Los Azules copper deposit in Argentina, one of the largest undeveloped copper projects in the world
- McEwen Copper plans to update its PEA (preliminary economic assessment) during Q1 2023, follow with IPO during Q2, and complete the Feasibility Study in 2024
Historically, gold has been a staple in investment portfolios due to benefits like diversification and a lack of correlation with investments, retaining value during volatile periods. Despite the volatility in the gold market early in 2022, by the end of the year it was on the rise again, increasing 17% to reach its highest level since April 2022 (https://ibn.fm/05zpL). Denmark’s Saxo Bank suggests that gold could hit record highs in 2023, with three key factors to consider: the increasing “war economy mentality,” governments increasing deficit spending on ambitious projects, and the possibility of a global recession in 2023.
McEwen Mining (NYSE: MUX) (TSX: MUX), an asset-rich diversified gold and silver producer with large exposure to copper through its subsidiary, McEwen Copper, is led by a management team with extensive knowledge and experience in the mining space and owns and operates in some of the most prolific gold producing regions in the Americas. Many current gold and copper forecasts point to higher prices over the next few years. Should that occur McEwen Mining’s assets positions it well to benefit.
A key factor for investors is that McEwen Mining’s management team is uniquely aligned with investor interests. Rob McEwen, the company’s CEO, has a 17% ownership stake in McEwen Mining and a 15% ownership in McEwen Copper, with a combined cost base in the companies of roughly $220 million. McEwen Mining has a 68% stake in McEwen Copper, which is expected to be a game changer, as it owns one of the world’s 10 largest undeveloped copper deposits, the Los Azules Project. Given its large size and future production profile it could become the next copper unicorn.
Like gold, copper has been one of the best-performing commodities.
McEwen Copper’s other copper project is the Elder Creek Project in Nevada, prospective for porphyry copper and gold mineralization, well situated in a district hosting several large copper and gold mines, including Marigold, Lone Tree, and Phoenix. Kennecott Exploration, a subsidiary of Rio Tinto, will be the operator of the exploration program, with McEwen Mining holding a 1.25% net smelter return royalty on the property.
In August 2022, McEwen Copper closed its private placement offering of $82 million after securing a $25 million investment from mining giant Rio Tinto’ technology division, Nuton LLC. At the time, this $10/share offering gave the company an imputed value of $258 million. It provided the funds to update the PEA (preliminary economic assessment) for the Los Azules Project which is considered one of the world’s top 10 undeveloped copper projects. McEwen Copper plans to release the PEA and then do an IPO during H1, 2023. The IPO will fund a Feasibility Study that is expected to be completed in Q1, 2025. McEwen Mining owns a 68% interest in McEwen Copper.
McEwen Mining is designing the Los Azules Project to be a profitable long life copper mine, that is environmentally sensitive, technologically advanced, able to achieve a net zero carbon footprint and use significantly less water than existing copper mines.
For more information, visit the company’s website at www.McEwenMining.com.
NOTE TO INVESTORS: The latest news and updates relating to MUX are available in the company’s newsroom at http://ibn.fm/MUX
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