McEwen weighs Argentina share listing as part of copper unit IPO
Canadian mining industry veteran Rob McEwen is considering listing shares in Argentina as part of an initial public offering of his copper venture, the latest sign of the country’s newfound appeal for investors.
McEwen Copper is planning an IPO in New York or Toronto to help fund construction of its Los Azules project in San Juan province. As part of that process, the company is thinking about a listing in Buenos Aires, he said.
“It’d be good to have a marker in the country,” McEwen said in an interview Tuesday. “It’d give Argentina an opportunity to invest in one of the first new copper mines.”
Once a pariah for foreign investors because of capital controls and state intervention, Argentina is regaining the confidence of mining companies as President Javier Milei offers a way to bulletproof their capital commitments. His government’s RIGI program of tax, currency and trade benefits will help add an estimated $900-million to the value of Los Azules, McEwen said.
To be sure, RIGI approval is taking longer than expected, meaning the timing of the IPO — which was penciled in for mid-2025 — is uncertain, although it could still happen by the end of the year, McEwen said.
The company wants to include RIGI’s benefits in a feasibility study, which should be ready by early July, he said. In the meantime, the copper unit is looking to raise more money privately to help cover another $25 million for the feasibility study and some exploration and as much as $100 million-plus for engineering work.
If all goes to plan, construction will begin late next year and the mine will start producing by the end of the decade, when the wiring metal market is forecast to be in short supply. Los Azules is one of a cluster of copper deposits in San Juan that has attracted global heavyweights including BHP Group and Glencore.
“Today, Argentina is a totally different country in terms of restrictions on capital,” McEwen said. “Time will tell on how long that lasts. But at the moment it’s very welcoming.”
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