McEwen Inc.

Hello, ladies and gentlemen. Welcome to McEwen Mining's Q1 2021 Operating and Financial Results Conference Call. Present from the company today are Rob McEwen, Chairman and Chief Owner, Anna Ladkircher, Chief Financial Officer, Peter Ma, Chief Operating Officer, Steve McKinnon, Executive Vice President of Exploration. After the speaker's 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. If you would like to withdraw your question, press the pound key. I will now turn the call over to Mr. Rob McEwen, Chief Owner.

Thank you, operator. Good morning, everyone, and welcome. I'm certain everyone will agree with me that 2020 was a brutal year for us, but 2021 has started off with great momentum. One, our treasury is full. Two, the going concern qualification is gone from our financials. Three, our exploration program is generating strong results as evidenced by today's press release. Four, our mine lives in Timmins and Nevada have been extended and operations are now hitting our targets In terms of gold production, we have much work still to do to bring our cost per ounce down. Five, with the much improved copper and silver price over the last 12 months, better than the doubling in both cases, inside of the human mining we have a silver company, Thank you, Rob, and good morning, everyone.

He's going to give a brief overview of our Q1 results. Our revenue in Q1 from gold and silver sales from our 100% operated properties is just under $24 million. Average realized prices of $17.63 as compared to Q1 2020 of $31 million revenues at average realized prices of $15.91. Production in Q1 was 30,600 gold equivalent ounces. Predominant factors were reduced production from our 100% phone lines, which Peter Law, our COO, will review in more detail shortly. We reported a net loss of $12.5 million, or $0.03 per share. This compares to a net loss of $99.2 million, or $0.25 per share, in Q1 of last year. The decrease in our net loss relates to an $84 million impairment charge recorded at Gold Bar in the comparative quarter last year. We've also had improved performance from our investment in the MSC San Jose mine in Q1 2021. During the quarter, as Rob alluded to, our treasury is full. We completed two equity financings. The first one was a specific raise of $12.7 million in Canadian development expenses, and the funds were specifically raised for the development of our new flume deposit, which is part of our Fox complex in Timmins, Ontario. The second was an equity financing for gross proceeds of $31.5 million, With completion of these raises, all of our programs are now fully funded for 2021. In addition to this, we received $5 million in dividends in Q1 from our interest in the San Jose Mine. We ended the quarter with $52.5 million in liquid assets, $81 million in current assets, and a positive working capital of just over $35 million. We've been very busy with our exploration programs, invested $5 million in Q1. The primary focus was on growing the Fox Complex resource base. We also invested $1.8 million on the Fox Complex expansion PEA and as well as on our Phoenix project in Mexico. Steve McGibbon, our new Executive Vice President of Exploration, joined us during Q1 and he will be providing more details on our exploration program shortly. We continue to manage our operating margins by controlling our capital expenditures and material contracts, as well as looking to reduce our GMA costs this year. We've also begun implementing management systems to streamline processes and to gain further efficiency. We expect our financial performance, and more specifically cost, to continue to improve throughout 2021 as we ramp up our food deposit towards commercial participants in 2024. Given this ramp-up and the ongoing PEA study, which will have further production and cost details, we're still not in a position to provide firm cost guidance. Further, the ongoing variable restrictions in response to recent outbreaks of the new COVID-19 strains continue to create uncertainty for the mining industry. The company will provide an update on costs as soon as possible and in any event no sooner than the release of our PEA study in late Q2. I will now turn the call over to Peter Ma, our Chief Operating Officer. Thank you.