MAG Silver MAG is expected to report an improvement in its bottom line when it reports fourth-quarter 2024 later this month.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for MAG Silver’s fourth-quarter earnings has moved up 9.1% over the past 60 days to 24 cents per share. The figure indicates a 71% surge from the year-ago quarter.
MAG’s Earnings Surprise History
MAG Silver’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company has an average earnings surprise of 17.1%.
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What the Zacks Model Unveils for MAG
Our proven model does not conclusively predict an earnings beat for MAG Silver this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Earnings ESP: The Earnings ESP for MAG is -2.13%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: MAG Silver currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped MAG Silver’s Q4 Performance
MAG is a top-tier primary silver mining company through its (44%) joint venture interest in the 4,000 tons per day Juanicipio Mine, operated by Fresnillo FNLPF. Fresnillo holds the remaining 56% stake in the mine. In January, MAG Silver provided its fourth-quarter production update from Juanicipio, which may show how it is likely to fare in the to-be-reported quarter.
The Juanicipio plant maintained steady production, with 333,612 tons of ore processed in the fourth quarter of 2024. It was 3.8% lower than the 346,766 tons of mineralized material processed in the year-ago quarter.
In line with the company’s plan, silver head grade averaged 417 grams per ton (g/t) during the fourth quarter. This led to a head grade of 468 g/t in 2024. Both metrics exceeded expectations, reflecting the high quality of the resource.
Silver production declined 5.5% year over year to around 4.26 million ounces. Gold output was at 9,041 ounces, 14.6% lower than the year-ago quarter.
The impact of lower production for both silver and gold is expected to have been offset by higher prices of both gold and silver witnessed through the fourth quarter of 2024.
For the full year, Juanicipio produced a total of 18.6 million ounces of silver and 39,029 ounces of gold, delivering a 10.5% and 6.3% year-over-year increase, respectively. The company beat the top end of the revised production guidance by 1.3 million ounces.
The cash operating margin is expected to have been higher in the quarter due to positive commodity price movements, reduced operating costs and operational leverage. Lower consulting and administrative expenses as well as a decline in interest expenses (owing to the company lowering its debt levels) are also expected to have aided the improvement in earnings in the quarter.
MAG Silver’s Price Performance
Shares of MAG Silver have gained 62% in a year compared with the industry’s 54.9% growth.
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Recent Earnings Performances of MAG Silver’s Peers
Hecla Mining Company HL reported fourth-quarter 2024 adjusted earnings per share of four cents, in line with the Zacks Consensus Estimate. HL incurred a loss per share of four cents in the year-ago quarter. Hecla Mining’s revenues increased 55.4% year over year to $250 million. The top line beat the consensus estimate of $229 million.
Pan American Silver PAAS reported fourth-quarter 2024 earnings of 35 cents per share, in line with the Zacks Consensus Estimate. This compares with a loss of four cents per share in the year-ago quarter. Pan American Silver’s revenues increased 22% year over year to $815.1 million, surpassing the consensus estimate of $805 million.
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Hecla Mining Company (HL) : Free Stock Analysis Report
Pan American Silver Corp. (PAAS) : Free Stock Analysis Report
Fresnillo PLC (FNLPF) : Free Stock Analysis Report
MAG Silver Corporation (MAG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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