Los Azules Feasibility Study Confirms Economically Robust Copper Project With Leading ESG Performance

Executive Summary

• Independent feasibility study confirms Los Azules as a long‑life, low‑cost copper producer with after‑tax NPV(8%) of $2.9 B and IRR of 19.8%, supporting construction readiness.
• Capital requirement is $3.17 B (initial) with projected average cash cost $1.71/lb Cu and AISC $2.11/lb Cu; life‑of‑mine production averages 148,200 t/yr (327 M lb) over 21 years.
• Strategic financing framework includes a collaboration agreement with IFC, preliminary equipment/infrastructure finance proposals >$1.1 B, and renewable power supply from YPF Luz; construction targeted for 2026, SX/EW start‑up 2029, first copper in 2030.

Key Details

• Economic Highlights (after‑tax):
• NPV(8%) = $2.94 B
• IRR = 19.8%
• Payback period = 3.87 yr

• Net cumulative cash flow = $9.65 B

• Capital & Cost Structure:

• Initial capital cost = $3.168 B (direct + indirect)
• Sustaining capital = $2.131 B; closure costs = $386 M

• C1 cash cost = $1.71/lb Cu; AISC = $2.11/lb Cu

• Production Profile:

• Average LOM copper cathode production = 148,200 t/yr (327 M lb)
• Years 1‑5 production = 204,800 t/yr (451 M lb)

• Total recoverable copper to cathode ≈ 7.23 B lb (3.28 M t)

• Reserves & Resources (effective 2025‑09‑03):

• Proven & Probable reserves: 10.2 B lb Cu (1.02 B t @ 0.45% Cu)
• Measured & Indicated resources: 5.4 B lb Cu (0.97 B t @ 0.26% Cu)

• Inferred resources: 20.0 B lb Cu (4.24 B t @ 0.21% Cu)

• Mining & Processing Design:

• Open‑pit, 12 phases, strip ratio 1.65:1, pit slopes 32°–37°.
• Heap leach + SX/EW process producing 99.99% pure copper cathodes on‑site (no smelter).

• 72% lower mine‑to‑metal carbon intensity; 100% renewable power (wind, hydro, solar); no tailings dam; 74% less water use vs conventional milling.

• Regulatory & ESG Status:

• Environmental Impact Assessment approved Dec 2024.
• Accepted into Argentina’s Large Investment Incentive Regime (RIGI) Sep 2025 – tax, customs and FX stability for 30 yr.

• Goal: carbon‑neutral operation by 2038 (Scope 1 & 2).

• Financing & Partnerships:

• Collaboration agreement with IFC to align ESG standards and potential lead financing.
• Preliminary finance proposals from Tier‑1 OEMs (Komatsu, Sandvik) and European export credit agencies covering $1.1 B+ of equipment/infrastructure.
• Strategic shareholders: McEwen Inc. (46.4%), Stellantis (18.3%), Nuton®/Rio Tinto (17.2%).

• YPF Luz to fund power‑supply line (~$440 M) and provide 100% renewable electricity under a long‑term PPA.

• Future Growth Opportunities:

• Nuton® leaching technology could enable processing of primary ores, potentially extending mine life >30 yr and improving recoveries (up to ~85%).

• Four nearby porphyry targets (Tango, Porfido Norte, Franca, Mercedes) slated for exploration Q4 2025; could further enlarge resources.

• Timeline & Milestones:

• FS NI‑43‑101 Technical Report filing within 45 days (by early Dec 2025).
• Water concession application under review.
• Construction start target: 2026.
• SX/EW plant commissioning: 2029.
• First copper cathode production: 2030.

Notable Quotes

• “The Los Azules Feasibility Study is more than a technical milestone – it’s a blueprint for the future of copper mining.” – Rob McEwen, Chairman & Chief Owner, McEwen Inc.
• “We have the right plan, the right team, and the right partnerships to develop Los Azules… a model for responsible and innovative mining.” – Michael Meding, Vice President, McEwen Copper / General Manager, Los Azules.