McEwen Inc (MUX) Price

McEwen Inc. Advances Los Azules Project with Regulatory Approval and Strategic Partnership

## Opening U.S. equities saw varied performance, with the **Basic Materials Sector** experiencing notable movement as **McEwen Inc. (MUX)** registered a significant stock price increase following pivotal advancements for its **Los Azules copper project** in Argentina. The company announced the project's inclusion in Argentina’s Large Investment Incentive Regime (RIGI) and a strategic collaboration agreement with the International Finance Corporation (IFC). ## The Event in Detail On September 26, 2025, **McEwen Copper Inc.**, a subsidiary of **McEwen Inc.**, confirmed the approval of its **Los Azules copper project** to participate in Argentina’s Large Investment Incentive Regime (RIGI). This endorsement by Economy Minister Luis Caputo signals Argentina's commitment to supporting large-scale, strategic initiatives. The **RIGI framework** provides **Los Azules** with 30 years of legal, fiscal, and customs stability, critical for a project with a projected **US $2.672 billion investment plan**. Key fiscal incentives include a reduced corporate tax rate of **25%** (from 35%), a **50% reduction in dividend withholding tax**, accelerated depreciation, and streamlined customs and foreign exchange procedures. Concurrently, **McEwen Copper** formalized a collaboration agreement with the **International Finance Corporation (IFC)**, a member of the World Bank Group. This partnership aims to align **Los Azules** with the **IFC's** rigorous environmental, social, and governance (ESG) standards, a crucial step for attracting future debt and equity financing from international investors. The project, identified as the world's ninth-largest undeveloped copper deposit, is anticipated to generate over **US $30 billion in export revenues** over its 27-year mine life, according to a June 2023 Preliminary Economic Assessment (PEA). The PEA also estimated a **$2.7 billion after-tax Net Present Value (NPV8%)** at a copper price of **$3.75/lb**. **Los Azules** aims to become Argentina's first mining project to produce high-purity copper cathodes and achieve carbon neutrality by 2038, operating entirely on renewable energy. The Environmental Impact Declaration (EIA) for construction and operation was approved in December 2024, with the feasibility study on track for completion by the end of October 2025. ## Analysis of Market Reaction The market responded positively to these developments. **McEwen Inc.'s (MUX)** stock advanced **7.14%** on September 29, 2025, closing at **$16.66**. This movement follows a broader trend, with the stock surging nearly **87%** over the past six months. The **RIGI approval** is perceived as a significant de-risking event, improving the project’s investment profile and enhancing financing options due to improved economic parameters and reduced risk. The collaboration with the **IFC** further bolsters investor confidence by signaling a commitment to international sustainability standards and potentially facilitating access to global capital markets. While these project advancements fueled optimism, it is notable that **McEwen Inc.** reported a miss on its Q2 2025 earnings, posting **6 cents per share** against an estimated **9 cents**, and revenues of **$47 million** against an estimated **$55 million**. This suggests that while future project potential is driving stock performance, current operational results warrant attention. ## Broader Context & Implications The advancement of the **Los Azules project** holds significant implications for both **McEwen Inc.** and Argentina's mining sector. The **RIGI approval** sends a strong signal to international investors, indicating Argentina's supportive stance for long-term investments in critical metals. **Los Azules** is poised to contribute approximately **$1.1 billion in annual exports** and create over **3,500 direct and indirect jobs**, fostering local economic development in the San Juan province. The project's focus on high-purity copper cathodes positions Argentina to bypass traditional concentrate exports, directly serving industrial demand amidst a projected global copper supply deficit of **300,000-500,000 metric tonnes by the end of 2025**. Global refined copper demand reached nearly **27 million tonnes in 2024** and is projected to reach **33 million tonnes by 2035**, driven by renewable energy technologies, electric vehicles, and infrastructure. **McEwen Inc.'s** balance sheet, with a current ratio of **2.35** and moderate debt levels (debt-to-equity ratio of **0.26**), provides a stable foundation for the capital-intensive project. However, the company’s negative operating margin of **-3.03%** and a negative Altman Z-Score of **-0.27** suggest underlying profitability challenges and a potential risk of bankruptcy within two years, according to InvestingPro analysis, despite the significant project milestones. ## Expert Commentary Michael Meding, Vice President of **McEwen Copper** and General Manager of the **Los Azules Project**, stated, > "The integration of Los Azules into the RIGI under a single strategic investment plan enhances operational predictability and establishes a clear framework for engagement with the State and future partners." Rob McEwen, Chairman of **McEwen Inc.**, characterized the **IFC** collaboration as a > "game-changer" for **Los Azules**, emphasizing its role in achieving top-tier sustainability standards. InvestingPro's AI Analyst, Spark, rates **MUX** as "Neutral," noting "strong technical momentum and positive corporate events despite ongoing financial and valuation challenges." ## Looking Ahead With regulatory approvals and strategic partnerships in place, **Los Azules** is now positioned to commence construction, contingent on detailed engineering and securing the necessary financing, estimated at an additional **$227 million** to reach the final investment decision, followed by approximately **$2.5 billion** for construction capital. The completion of the feasibility study by the end of October 2025 will be a key milestone, providing updated project economics and operational specifics. Investors will be closely monitoring financing developments, further progress on construction, and the evolving dynamics of the global copper market, where prices have remained volatile, trading between **$9,000-$10,500 per metric tonne** throughout 2025. The interplay between strong project advancements and the company’s current financial performance will be a critical area of focus.