$MUX : Putting a Price Tag on Los Azules

We think a would-be acquirer is in a position to drive a hard bargain for McEwen Mining’s Los Azules porphyry copper project in San Juan, Argentina. In order to calculate our estimated offer price, we’ve utilized AuEq ozs. and the following current spot prices: $1,332/oz. Au, $14.70/oz. Ag and $2.66/lb. Cu. Our Total Acquisition Cost at 10% (TAC10) assumes an AISC of ~$1,240/oz Au.

Total Estimated Payable Resources (AuEq)25,986,778 ozs.
Gross Revenue$34,614,388,296
Treatment and Refining Charges($2,684,000,000)
Royalties($1,010,000,000)
Initial CapEx($2,363,000,000)
Sustaining CapEx($1,509,000,000)
OpEx($15,385,000,000)
Closure Costs($200,000,000)
Net Pre-Tax Cash Flow$11,663,388,296
Taxes($5,608,000,000)
Net After-Tax Cash Flow$6,055,388,296
Los Azules Inc.
Theoretical Market Cap$3,461,438,830
Cost to Acquire$133/oz.
Cost to Build$91/oz.
OpEx (LoM)$1,015/oz.
Total Acquisition Cost$1,240/oz.
TAC10 (Total Acquisition Cost at 10%)$3,221,703,827

Notes: All Values in U.S. Dollars

The Total Acquisition Cost for Los Azules factors in all TCs & RCs, Royalties, Taxes, and Closure Costs, in addition to LoM OpEx.

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