McEwen Highlights Los Azules Copper Growth Strategy, Sees Market Value Gap

Key Points

• Los Azules is central to McEwen’s growth strategy: The Argentina copper project is being advanced as a lower-impact “regenerative” mine, with planned solar power, electrification, closed-loop processing and ecological water treatment. The company cites 35.7 billion pounds of copper resources and a potential 21-year mine life, followed by an additional 33 years.
• Project funding and development have advanced: McEwen Copper secured a $240 million term loan expected to fund Los Azules through a final investment decision targeted for mid-2026, while the subsidiary has raised more than $690 million through debt and equity.
• Management believes McEwen is undervalued: McEwen owns 46.3% of McEwen Copper and a 1.25% royalty on Los Azules. Management estimates the copper stake could be worth about $900 million, with the royalty adding roughly $200 million, while gold-equivalent production is projected to rise from about 115,000 ounces annually to nearly 300,000 by 2030.

McEwen NYSE: MUX outlined a strategy centered on advancing its Los Azules copper project in Argentina, expanding its gold and silver production profile and positioning its mining operations around environmental and community considerations.

During the presentation, company representatives argued that mining companies need to do more to earn public support for new projects. The speaker identified social license as a growing challenge for the industry, saying that higher metal prices and new projects may not be enough to overcome public concerns about mine development and environmental impacts.

“We haven’t got the public yet believing that we are responsible when we develop a mine,” the speaker said, adding that the industry needs to demonstrate environmental practices rather than simply discuss them.

Los Azules positioned as regenerative copper project

McEwen Copper presented Los Azules as a proposed “regenerative copper mine” designed to reduce emissions, water use and environmental impacts. The project is located in Argentina’s Andes region and is intended to produce copper through heap-leaching and electrowinning processes.

According to the company’s video presentation, planned features include solar-powered operations, electrification of equipment where possible, battery backup rather than diesel generation, closed-loop metal extraction processes and an ecological water-treatment system. The company also described plans for a mine camp powered by solar energy, with systems intended to grow food, collect and treat water, and support worker health and living conditions.

McEwen Copper said the project could create more than 1,000 local jobs over the mine’s life. The company said it is also working with local universities and scientists on phytoremediation and ecological water-treatment initiatives.

The presentation framed copper as an increasingly important material for electric vehicles, wind turbines, batteries, solar panels and computing infrastructure. McEwen Copper said its objective is to supply what it described as “green copper” while avoiding the environmental legacy associated with historic mining operations.

Company cites recent project milestones

The company highlighted a series of developments completed since September of the prior year. These included involvement from the International Finance Corporation, approval under Argentina’s RIGI tax-incentive program, a feasibility study for Los Azules and permits to restart its Mexican operation.

• A $58 million dividend from the San José mine joint venture in southern Argentina.
• Acquisition of Canadian Gold Corp., which owns the former Tartan Mine in Manitoba.
• A pre-feasibility study for the Grey Fox project in Timmins, which McEwen said could add 15 years to the life of operations there.
• Addition to the Russell 2000 Index in June.
• Completion of a $240 million term loan for McEwen Copper in late August, which the company said is expected to fund work through a final investment decision for Los Azules in mid-2026.

The company said Los Azules contains 35.7 billion pounds of copper resources. Using gold and copper prices cited during the presentation, management compared the deposit to a 56-million-ounce gold deposit on a gold-equivalent basis. The speaker described the project as having a 21-year mine life, followed by a potential additional 33 years.

Management argues market does not reflect copper, gold assets

Stefan Spears, Corporate Development Officer at McEwen Mining, said management believes the company is undervalued because investors are not fully recognizing its copper holdings, gold and silver operations, and royalty interests.

McEwen Mining owns 46.3% of McEwen Copper, which owns Los Azules, Spears said. He also noted that McEwen has a 1.25% net smelter return royalty on the project.

Spears said McEwen Copper has not participated in the 2025 revaluation experienced by publicly traded copper-development companies. He said the company intends to take McEwen Copper public and suggested a valuation closer to peers could imply a roughly $2 billion U.S. market capitalization for the copper business.

Based on that assumption, Spears said McEwen Mining’s stake in McEwen Copper could be worth about $900 million, while the discounted value of the Los Azules royalty could add about $200 million. He argued that these values alone approach McEwen’s market capitalization, implying that the market is assigning little value to its gold and silver operations.

McEwen currently produces about 115,000 gold-equivalent ounces annually, according to Spears. The company expects production to rise to about 185,000 gold-equivalent ounces by the end of 2028 and to just under 300,000 ounces by the end of 2030.

Spears said the company sees potential for a higher valuation if it delivers its production-growth plans and advances Los Azules toward construction. He said management views the next 48 months as important for realizing that growth.

Responding to a question about potentially separating assets to make their value more visible, the company said it had already placed its copper assets in a separate entity. Management said McEwen Copper has raised more than $690 million through debt and equity financing.

About McEwen (NYSE:MUX)

McEwen Inc is a mining company focused on the exploration, development, and production of gold, silver, and copper. The company's portfolio includes operating mines, advanced development projects, and exploration properties in the United States, Canada, and Argentina.

Its principal gold assets include the Fox Complex in Ontario, Canada, and the Gold Bar mine in Nevada. McEwen also has an interest in the San José mine in Argentina, which has historically produced gold and silver, and is advancing the Los Azules copper project in San Juan Province, Argentina, through its McEwen Copper subsidiary.

McEwen was founded by mining entrepreneur Rob McEwen, who serves as chairman.

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