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Highlights

  • MAG’s Q2 2024 saw increased income to USD 25.1 million from Juanicipio investment
  • The company expects Juanicipio to produce 16.3-17.3 million silver ounces for FY 2024

MAG Silver Corp. (TSX: MAG) is a mining company dedicated to becoming a leading primary silver producer by developing and advancing high-grade, district-scale silver projects across the Americas.

It has a market capitalization of CAD 1.83bn.

In the second quarter of 2024, the company reported increased income from its equity-accounted investment in Juanicipio, reaching USD 25.1 million compared to USD 22.4 million in pcp. This rise was mainly driven by higher mined tonnages at Juanicipio, which contributed positively to the company's financial performance.

Operating income for the quarter grew to USD 21.4 million, reflecting improved operational efficiency, though it was partially offset by higher general and administrative expenses. The company's income before taxes was USD 22.9 million, up from USD 20.1 million in pcp, benefiting from gains in interest and other income.

Net income also saw an increase, reaching USD 21.6 million compared to USD 19.3 million in pcp. This growth was largely due to the factors mentioned earlier, though it was slightly offset by a rise in income tax expenses.

Further, in 2Q 2024, the company had a higher operating income of USD 21.4mn and a higher net income of USD 21.6mn versus USD 19.1mn and USD 19.3mn, respectively in pcp.

Recent Business Update

According to the company's announcement on August 2, 2024, a total of 349,460 tonnes of ore were mined in Q2 2024, marking a 35% increase compared to Q2 2023. The growth in mined tonnages at Juanicipio is attributed to the operational ramp-up of the mine. It is progressing toward its steady-state mining and milling targets.

Company outlook

According to the company's management guidance, Juanicipio is expected to produce between 16.3 million and 17.3 million silver ounces for FY 2024, an increase from the previously estimated range of 14.3 million to 15.8 million ounces.

Top 10 Shareholders:

The top 10 shareholders of MAG collectively account for approximately 35.19% of the company's total shareholding. Among these, Van Eck Associates Corporation and ETF Managers Group, LLC hold the largest stakes, with Van Eck Associates owning about 9.46% and ETF Managers Group holding around 5.25%.

Stock performance

Over the past week, MAG's stock price has experienced a notable increase of approximately 8.27%, while it has seen a decline of 4.28% over the past three months. Additionally, the stock is currently trading above the average of its 52-week high of CAD 19.65 and its 52-week low of CAD 11.15.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 19, 2024. The reference data in this report has been partly sourced from EODHD/Others.