MAG Silver Corp.'s (MAG:TSX; MAG:NYSE American) Q1/25 production results were notable for record silver recovery and continued strong grades at Juanicipio, its joint venture project in Mexico with partner/operator Fresnillo, reported BMO Capital Markets Analyst Kevin O'Halloran in an April 23 research note.
"Q1/25 silver production represents 28% of the midpoint of 2025's 14,700,000–16,700,000 ounces (14.7–16.7 Moz) guidance range, marking an impressive start to the year with the strong grade performance achieved in 2024 continuing into 2025," O'Halloran wrote.
29.5% Return Potential
On the news, BMO maintained its Outperform rating on MAG Silver, noted the analyst.
BMO's CA$27 per share target price also remained the same. In comparison, MAG's share price now is about CA$20.85. Thus, the implied potential return for investors is 29.5%.
How Production Stacks Up
O'Halloran provided the production totals from Juanicipio in Q1/25 for the various metals and compared them to BMO's forecasts.
Silver production was 4.5 Moz, 26% higher than BMO's 3.5 Moz projection and 4.6% above Q4/24' 4.3 Moz production.
Gold production was 10,200 ounces (10.2 Koz), slightly higher than BMO's 9.8 Koz estimate.
Zinc production was 16,900,000 pounds (16.9 Mlb), exceeding BMO's 14.4 Mlb projection.
Lead production was 10.6 Mlb, just over BMO's 10.1 Mlb estimate.
Throughput of 337,000 tons (337 Kt) was in line with BMO's 335 Kt forecast.
Key Production Drivers
Q1/25 silver production was a beat, O'Halloran explained, due to record quarterly silver recovery and higher-than-expected grades at Juanicipio. Silver recovery was 96% versus BMO's 95.2% calculation in Q4/24.
The Q1/25 grade at the Mexico mining operation was 430 grams per ton (430 g/t), at the high end of 2025 guidance, 380–430 g/t. Juanicipio's Q1 grade was higher than both BMO's 380 g/t projection and Q4/24's 417 g/t grade.
What to Watch For
Upcoming events for MAG Silver include its Q1/25 financial results, to be reported on May 12, exploration findings announced on an ongoing basis and continued cash flows from Juanicipio to the joint venture partners.
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