MAG Silver: Impressive Juanicipio Q2 Due To Higher Grades And Strong Metal Prices

seekingalpha08-02

MAG Silver Corp. owns 44% of Juanicipio, which has seen strong operational performance and an impressive financial result in Q2 2024.Juanicipio produced 5.0Moz of silver in Q2 with a silver equivalent...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2456280146?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/134059508/image_134059508.jpg","is_english":true,"pubTime":"2024-08-02 22:11","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2456280146","market":"fut","top_or_hot":-1,"title":"MAG Silver: Impressive Juanicipio Q2 Due To Higher Grades And Strong Metal Prices","media":"seekingalpha","content":"<div>\n<p>MAG Silver Corp. owns 44% of Juanicipio, which has seen strong operational performance and an impressive financial result in Q2 2024.Juanicipio produced 5.0Moz of silver in Q2 with a silver equivalent...</p>\n\n<a href=\"https://seekingalpha.com/article/4709696-mag-silver-impressive-juanicipio-q2-due-to-higher-grades-and-strong-metal-prices\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>MAG Silver: Impressive Juanicipio Q2 Due To Higher Grades And Strong Metal Prices</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMAG Silver: Impressive Juanicipio Q2 Due To Higher Grades And Strong Metal Prices\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-02 22:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4709696-mag-silver-impressive-juanicipio-q2-due-to-higher-grades-and-strong-metal-prices><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>MAG Silver Corp. owns 44% of Juanicipio, which has seen strong operational performance and an impressive financial result in Q2 2024.Juanicipio produced 5.0Moz of silver in Q2 with a silver equivalent...</p>\n\n<a href=\"https://seekingalpha.com/article/4709696-mag-silver-impressive-juanicipio-q2-due-to-higher-grades-and-strong-metal-prices\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MAG","symbol_name":"MAG银矿","start_time":0,"source_url":"https://seekingalpha.com/article/4709696-mag-silver-impressive-juanicipio-q2-due-to-higher-grades-and-strong-metal-prices","article_id":"2456280146","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/134059508/image_134059508.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2456280146","pubTimestamp":1722607915,"columns":[],"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"MAG Silver Corp. owns 44% of Juanicipio, which has seen strong operational performance and an impressive financial result in Q2 2024.Juanicipio produced 5.0Moz of silver in Q2 with a silver equivalent","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"MAG":"MAG银矿","BK4210":"白银","BK4188":"贵重金属与矿石","FNLPF":"Fresnillo Plc"},"translate_title":"MAG Silver：由于更高的等级和强劲的金属价格，Juanicipio第二季度令人印象深刻","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FNLPF":1,"MAG":1},"content_text":"MAG Silver Corp. owns 44% of Juanicipio, which has seen strong operational performance and an impressive financial result in Q2 2024.Juanicipio produced 5.0Moz of silver in Q2 with a silver equivalent cash cost of $8.86/oz, leading to an upward revision of the 2024 guidance.MAG Silver reported an adjusted EBITDA of $50M, net income of $22M, and free cash flow of $21M in Q2 2024, with a debt-free status and $97M in cash.joebelanger Overview MAG Silver Corp. (NYSE:MAG) is a precious metals mining company, which has a 44% ownership interest in Juanicipio, where Fresnillo plc (OTCPK:FNLPF) owns the remaining portion, and is the operator of the mine. MAG also owns the Larder project in Canada and the Deer Trail project in the U.S., but those exploration assets have more marginal values today. Figure 1 - Source: MAG Silver Presentation The company this morning released its Q2 2024 results, which this article will focus on. I have covered MAG Silver since 2021 and more frequently over the last couple of years now that Juanicipio has moved into production. My prior articles on the stock can be found here. The stock price performance of MAG Silver has been relatively good in 2024. The stock is up 26%, outperforming gold (XAUUSD:CUR), silver (XAGUSD:CUR), and the regular precious metals mining ETFs slightly. The positive performance is due to the constructive precious metals prices, but also because Juanicipio has started to perform well lately. Figure 2 - Source: Koyfin Q2 2024 Result Juanicipio processed 336,592 tonnes of ore during Q2, which was a 3% increase compared to the prior quarter. The silver equivalent grade was an extremely impressive 746 g/t during Q2, that was a 5% increase compared to Q1. We saw higher grades in silver, lead, and zinc, while the gold grade decreased marginally in the most recent quarter. The increase in the base metal grades was noteworthy. Figure 3 - Source: MAG Silver Quarterly Reports Higher throughput and strong grades led to a silver production of 5.0Moz for Juanicipio during Q2, and the silver equivalent production was as high as 7.1Moz in the most recent quarter. The silver equivalent cash cost was $8.86/oz and the silver equivalent all-in sustaining cost (\"ASIC\") was $11.31/oz. The strong production and good costs during the first half of the year have led the company to upward revise the 2024 guidance, where Juanicipio is now expected to produce 16.3-17.3Moz of silver with an AISC of $8.50-9.25 per silver ounce sold in 2024. Figure 4 - Source: MAG Silver Quarterly Reports The very strong production number combined with constructive metal prices lately naturally meant strong financial numbers for MAG Silver during Q2. If we start with the financials for Juanicipio, the free cash flow was an extremely impressive $89M, up from $28M last quarter. Figure 5 - Source: MAG Silver Quarterly Reports Juanicipio continues to distribute cash to Fresnillo and MAG Silver, but the entity still had $51M in cash as of the end of Q2 2024, and a very healthy working capital of $129M. Figure 6 - Source: MAG Silver Quarterly Reports The strong financials can be seen for MAG Silver as well. MAG Silver reported an adjusted EBITDA of $50M, a net income of $22M, and free cash flow of $21M during Q2. That is the best quarterly result we have seen since commercial production was declared for Juanicipio. Figure 7 - Source: MAG Silver Quarterly Reports MAG Silver is today debt-free and had $97M in cash at the end of Q2 2024. The company did during Q2 2024 announce a normal course issuer bid, which allows buybacks of up to 10% of the public float. However, the company has yet to buy back any shares, but the expectation is that the company will leverage the buyback program during the back half of 2024. Figure 8 - Source: MAG Silver Quarterly Reports Conclusion My last article on MAG Silver in March of this year had a strong buy rating. The stock price is up 45% since then due to a combination of higher metal prices and strong operational performance at Juanicipio. I still consider MAG Silver one of the very few higher quality silver miners around, so it is still a compelling buy. The company is trading with a high single-digit free cash flow yield, and the stock would likely do even better if management focused more on shareholder distributions. I do think management is a minor risk to be aware of. It has frequently expressed desires for more exploration and seeing if there is anything left for shareholder distributions after that, where the priorities should, at least in my view, be the reverse. With that said, MAG Silver and Juanicipio are some of the better ways to get exposure to silver miners, which is why the stock is part of my portfolio. Q2 was an impressive quarter for MAG Silver and Juanicipio.  Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2456280146"}