MAG Silver reports Q2 profit of US$21.6 million
MAG Silver Corp. [MAG-TSX, NYSE American] has reported a net profit of US$21.6 million or ($0.21 per share) for the second quarter of 2024, driven by income from the company’s flagship 4,000 tonnes-per-day Juanicipio joint venture in Mexico.
That marked an increase from US$19.4 million in the second quarter of 2023.
MAG Silver is a Canadian exploration and development company focused on becoming a top-tier primary silver mining company. MAG’s key asset is its 44%-owned Juanicipio property, which the company holds in a joint venture partnership with 56% owner and project operator Fresnillo Plc.
MAG is also executing multi-phase exploration programs at the 100%-owned Deer Trail project in Utah and 100%-owned Larder Project, in Canada’s Abitibi region.
During the second quarter of 2024, Juanicipio produced 5.0 million ounces of silver and 7.1 million ounces of silver equivalent (AgEq).
MAG second quarter profit increase was driven by income from Juanicipio of US$25 million, and adjusted earnings before interest, tax, depreciation and amortization (EBITDA), generating strong operating cash flow of US$92.7 million and free cash flow of US$88.6 million.
During the quarter, 335,592 tonnes of ore at a silver head grade of 498 g/t (AgEq head grade 746 g/t) was processed at Juanicipio.
“With the continued operational outperformance in the first half of 2024, full year guidance has been increased,’’ MAG said. As reported by Fresnillo, silver head grade at Juanicipio is expected to be between 420 g/t and 460 g/t for 2024. That’s up from an earlier target of 380 g/t to 420 g/t.
As a result, Juanicipio is expected to produce between 16.3 million and 17.3 million ounces of silver this year, up from the earlier target of 14.3 million and 15.8 million ounces, yielding between 14.5 million and 15.4 million silver ounces sold at an all-in-sustaining cost (AISC) of between US$8.50 and US$9.25 an ounce. The earlier AISC target was US$9.50 to US$10.50 an ounce.
Juanicipio is a high-grade silver-gold-zinc-lead epithermal vein system on the Fresnillo Silver Trend in Mexico, the world’s leading silver mining belt. The partners have been developing the surface and underground infrastructure on the property to support a 4,000 tonnes-per-day mining operation, producing a previously expected annual average of 16.5 million payable ounces of silver during the first six years of commercial production.
In addition to underground mine production and processing of high-grade mineralized material, an exploration program is in place at Juanicipio targeting multiple highly prospective targets
On Friday, MAG shares eased 3.1% or 57 cents to $17.71 on volume of 131,960. The shares are currently trading in a 52-week range of $19.41 and $11.15.