MAG:TSX; MAG:NYSE American

MAG Silver Corp.

MAG Silver Corp. is a growth-oriented Canadian development and exploration company focused on becoming a top-tier primary silver mining company by exploring and advancing high-grade, district scale, precious metals projects in the Americas. Its principal focus and asset is the Juanicipio Project (44%), being developed with Fresnillo Plc (56%), the operator. The project is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where the operator is currently advancing underground mine development and commissioning a 4,000 tonnes per day processing plant. Underground mine production of mineralized development material commenced in Q3 2020, and an expanded exploration program is in place targeting multiple highly prospective targets at Juanicipio. MAG is also executing multi-phase exploration programs at the Deer Trail 100% earn-in Project in Utah and the recently acquired Larder Project, located in the historically prolific Abitibi region of Canada.

MAG:TSX MAG:NYSEAmerican

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Premium Silver Asset Ramping up Cash Flow

Research Report

Kevin O'Halloran (09/15/2023)

Premium Silver Asset Ramping up Cash Flow

Now that its processing plant in Mexico is nearing nameplate capacity, BMO Capital Markets reinstated coverage on this company, which it says has "strong cash flows on the way."

Tags: Silver

Silver Co.'s Quarterly Earnings Rise as Mexico Plant Produces

Streetwise Reports (08/14/2023)

With its new Juanicipio processing plant in Mexico moving toward capacity and its production numbers surpassing expectations, MAG Silver Corp. is releasing its second-quarter earnings figures.

Tags: Silver

Silver Co.'s Q2/23 EPS Beats Estimates

Research Report

Cosmos Chiu (08/11/2023)

The miner's priority now is advancing its Utah project given the production ramp-up at its Mexico plant is nearly done, noted a CIBC report.

Tags: GoldBase MetalsSilver

Drilling Shows Three New Zones at Mining Project in Utah

Research Report

Chris Thompson (08/07/2023)

Grades in one of these suggests the presence of a copper-rich intrusive porphyry center, noted a PI Financial report.

Tags: GoldBase MetalsSilver

Hub-and-Spoke Geology Validated at Utah Mining Asset

Research Report

Stephen Soock (08/07/2023)

New drill results show high grades of polymetallic mineralization in multiple spokes of "a very large system,'" noted a Stifel report.

Tags: GoldBase MetalsSilver

Drill Results Confirm Silver Co.'s Thesis at Utah Project

Streetwise Reports (08/04/2023)

Each of three holes intersects a different style of mineralization, validating a "hub and spoke" geological thesis for the site.

Tags: GoldSilver

Expert Comments:

Chris Thompson, PI Financial (9/11/23) "MAG Silver Corp. posted strong Q2/23 production results, confirming Juanicipio's value potential. . .we anticipate cost and production guidance in Q1/24, which we see providing a better grasp of Juanicipio's near-term economics."

Chris Thompson, PI Financial (9/5/23) "We remain impressed by the exploration potential offered at MAG Silver Corp.'s Deer Trail and in the company's systematic approach to unlocking that potential. We note that phase three drilling is underway, targeting an inferred intrusive porphyry center at Deer Trail."

Peter Krauth, MoneyShow (9/4/23) "MAG Silver Corp. is one name I like that has had some more exploration success at Deer Trail, Utah. . .three new zones discovered from stepouts help confirm the hub-and-spoke thesis at Deer Trail thanks to different mineralization styles. Phase 3 drilling is in progress to chase the porphyry center."

	Joe Reagor, ROTH Capital Partners (8/9/23) "We continue to believe that MAG Silver Corp. is in the early stages of a rerating as a significant silver producer. Thus, we are maintaining our Buy rating."

	Cosmos Chiu, CIBC World Markets (8/8/23) "MAG Silver Corp. reported Q2/23 earnings per share of $0.19, slightly ahead of consensus at $0.17 and our estimate of $0.16, on the back of lower tax expenses. . .the company ended Q2/23 with a solid cash balance of $52.6M and no long-term debt."

Chris Thompson, PI Financial (8/3/23) "We view today's drill results from MAG Silver Corp. as positive, closing the loop on phase two drilling at Deer Trail. Drilling continues to identify long widths of polymetallic Ag-Au-Cu-Pb-Zn mineralization, adding three new zones to the Carissa zone discovery."

More Expert Comments

Stephen Soock, Stifel (8/3/23) "With MAG Silver Corp.'s 44%-owned Juanicipio plant now rapidly advancing towards achieving the 4,000 nameplate capacity, exploration and drilling activities at its 100%-owned properties will be a driver for further growth. Today's drill results from Deer Trail highlight extensive, high grade, polymetallic mineralization at depth, and we remain optimistic about the prospects of the company defining multiple high-grade carbonate replacement deposits on the property through its science-based approach to exploration."

Lucas Pamatat, Canaccord Genuity (7/26/23) "MAG Silver Corp.'s Q2/23 production results significantly exceeded our estimates, driven by higher mill throughput (up about 70% quarter over quarter) and higher mill feed grades. Ramp-up of the Juanicipio mill is progressing well."

Chris Thompson, PI Financial (7/26/23) "We are impressed with MAG Silver Corp.'s delivery of Q2/23 operating results significantly ahead of our conservative expectations. . .we are also impressed by the advanced speed of ramp-up at Juanicipio."

Ben Pirie, Atrium Research (7/4/23) "MAG Silver Corp. announced that it has achieved commercial production at Juanicipio on June 1, 2023. The Juanicipio mill is operating at 85% of its 4 Ktpd capacity."

	Chen Lin, What Is Chen Buying? What Is Chen Selling? (6/29/23) "MAG is a high-grade silver play with a good balance sheet."

Chen Lin, What Is Chen Buying? What Is Chen Selling? (6/20/23) "MAG Silver Corp. is a high-quality silver play. I am picking up shares."

Chris Thompson, PI Financial (6/5/23) "MAG Silver Corp. has announced commercial production at its 44%-owned Juanicipio mine. . .we are encouraged by the company's ability to achieve commercial production ahead of expectations, with nameplate capacity of 4 Ktpd now anticipated in Q3/23, ahead of our Q4/23 assumption."

SADIF Investment Analytics (5/31/23) "MAG Silver Corp. has strong financials and reasonable corporate governance. In terms of risk, the company is safe. . .overall, we expect MAG to be an average long-term investment that is prone to perform long term."

Michael Fairbairn, Canaccord Genuity (5/10/23) "MAG Silver Corp. finished Q1/23 with no debt and a cash balance of $54.6M (excluding any attributable cash from the Juanicipio joint venture). . .with the plant now in the commissioning and ramp-up phase, management expects final project capital costs to wind down and associated free cash flow generation to increase as Juanicipio approaches nameplate capacity of about 4 Ktpd (mid- to late 2023)."

Chris Thompson, PI Financial (4/26/23) "MAG Silver Corp.'s Q1/23 production was generally in line with expectations. We are encouraged with extended periods of elevated processing rates (3.9 Ktpd). . .Juanicipio produced 2.25 Moz Ag and 6 Koz Au, in line with our estimates of about 2.4 Moz Ag and beating our Au estimate of 5 Koz (on a 100% basis)."

SADIF Investment Analytics (3/31/23) "MAG Silver Corp.'s stock has been upgraded to Above Average from Average. . .we expect the company to be an above average, long-term investment that is likely to deliver long-term returns."

	Cosmos Chiu, CIBC World Markets (3/27/23) "At MAG Silver Corp.'s joint venture project Juanicipio, first lead concentrate was produced during March 2023, and the mill is expected to deliver its first commercial shipment of concentrate in the coming weeks. The operator, Fresnillo, now expects the Juanicipio processing plant to ramp up to nameplate capacity of 4 Ktpd in mid- to late 2023."

	Chen Lin, What Is Chen Buying? What Is Chen Selling? (3/10/23) "On the buy side, I picked up some MAG Silver Corp. at around $11. If you look at the history in the past two to three years, $11 is always a good place to buy."

Ryan Thompson, BMO Capital Markets (2/28/23) "MAG Silver Corp. President and CEO George Paspalas highlighted the exploration potential at Juanicipio, at the 2023 BMO Capital Markets Global Metals, Mining & Critical Minerals Conference. Only 5% of the Juanicipio property has been explored, all of which has been confined to the northeast corner of the property. . .the property hosts two porphyry systems with high mineralization potential at fluid upwelling zones including Los Tajos and Venadas."

Ryan Thompson, BMO Capital Markets (2/21/23) "MAG Silver Corp. is expected to participate in the 32nd annual Global Metals, Mining & Critical Minerals Conference. It is being held from Feb. 26 to March 1."

Ryan Thompson, BMO Capital Markets (2/16/23) "We are resuming coverage of MAG Silver Corp. . .we have updated our model to reflect the 2.9M shares issued at US$14.65/share for gross proceeds of US$42.6M on Feb. 7 and the 1M shares issued at CA$23.75/share for gross proceeds of CA$23M this morning. . .with proceeds from the equity financing, the company is better funded to continue exploration/development at its projects including Juanicipio, Deer Trail and Larder."

	Heiko Ihle, H.C. Wainwright & Co. (2/7/23) "MAG Silver Corp. is one of our Top Picks for 2023. . .we believe that the recent power connection [at Juanicipio] represents the company's final step toward becoming a Tier 1 silver producer in Mexico that enjoys a favorable cost curve. In turn, MAG expects to reach a nameplate capacity of 4 Ktpd in mid- to late 2023."

Ben Pirie, Atrium Research (2/3/23) "MAG Silver Corp. announced a US$40M bought deal and a CA$20M bought deal flowthrough private placement led by BMO Capital Markets and Raymond James. The proceeds will be used to fund exploration at Juanicipio and MAG's other projects, including Deer Trail, and certain development costs at Juanicipio."

	Chen Lin, What Is Chen Buying? What Is Chen Selling? (2/1/23) "I am immediately buying back one of my favorites, MAG Silver Corp. I sold a lot at YE22 at $16– 17. . .this week I am buying it back in the $13.5 area, after the $14.65 bought deal last week!"

Michael Fairbairn, Canaccord Genuity (1/25/23) "The key driver for MAG Silver Corp. remains the Juanicipio plant's ramp to 4 Ktpd by mid- to late 2023. . .our estimates forecast [production of] 3.8 Ktpd in Q3/23 and 4 Ktpd in Q4/23."

Chris Thompson, PI Financial (1/25/23) "In Q4/22 MAG Silver Corp.'s Juanicipio produced 1.8 Moz Ag and 5.4 Koz Au. . .MAG's 44% share totaled about 0.8 Moz Ag. . .we anticipate a gradual quarter-over-quarter ramp this year and an annual production of about 23.7 Moz Ag eq (i.e.,) double 2022's production."

Chris Thompson, PI Financial (1/17/23) "MAG Silver Corp. released results from phase two drilling, six holes, from the Deer Trail project. . .we view today's results as technically significant for a number of reasons but specifically, the identification of long widths of polymetallic Ag-Au-Cu-Pb-Zn mineralization manifesting themselves as potential feeder structures."

Jefferson Research (1/12/23) "MAG Silver Corp. is showing strong operating efficiency and balance sheet quality. . .the ability of the company to earn a profit is in part the result of how rapidly it converts its collection of assets into revenues and the resulting percentage available in earnings and cash flow after expenses have been paid. . .the balance sheet shows the ability of MAG Silver to pay its bills and fund future growth."

Capital Cube (1/5/23) "MAG Silver Corp. has current assets of $44.12M. . .the company has enough money to finance their operations for a year and do not need to raise capital in the immediate future. MAG has a strong working capital position."

	Joe Reagor, ROTH Capital Partners (12/29/22) "The tie-in of MAG Silver Corp. and joint venture partner Fresnillo's Juanicipio mill was complete with all additional testing completed as well. With the mill now fully energized, commissioning has begun, and Fresnillo has guided to achieving nameplate capacity by Q2/23. . .we see the beginning of mill commissioning as a significant milestone for MAG."

	Chen Lin, What Is Chen Buying? What Is Chen Selling? (12/29/22) "MAG Silver Corp. has been a great performer in the past years, and it just announced electricity was connected at the mill."

Ryan Thompson, BMO Capital Markets (12/23/22) "MAG Silver Corp. has set a strong environmental, social and governance tone, led by the company's chief sustainability officer and several board of directors committees. . .key items which we we're encouraged by include MAG's preference for local hiring, diversity targets and tracking of greenhouse gas emissions to align with the Task Force on Climate-related Financial Disclosures standards."

Jefferson Research (12/15/22) "MAG Silver Corp. is showing strong operating efficiency. . .the balance sheet rating for the company strengthened from weak to strong in Q3/22."

	Chen Lin, What Is Chen Buying? What Is Chen Selling? (11/14/22) "MAG Silver Corp. reported nice profits, and the mill will connect to electricity 'in the coming weeks.' The company has been the best performing silver stock in the past weeks, jumping 50% from the low; I like MAG a lot and continue to hold."

Chris Thompson, PI Financial (10/26/22) "Power for final commissioning at MAG Silver Corp.'s Juanicipio and start of operations should be available by the end of October 2022. Final commissioning of the electrical system is expected to commence shortly followed by production ramp-up to 85–90% of nameplate 4 Ktpd capacity by year-end."

Stephen Soock, Stifel (8/18/22) "MAG Silver Corp. posted positive earnings per share of $0.08 in Q2/22 despite Juanicipio (44% MAG) being precommercial. The joint venture generated $19.2M in cash in the quarter from processing 154 Kt at 781 g/t Ag eq at nearby Fresnillo processing facilities."

	Joe Reagor, ROTH Capital Partners (7/27/22) "MAG Silver Corp. stated that significant progress had been made by the utility company in preparation of the tie-in; as a result, the company anticipates connecting the mill to the electrical grid in 'the coming weeks.' We believe completing the mill tie-in should serve as a significant positive catalyst for MAG."

Chris Thompson, PI Financial (6/20/22) "While we expect the primary use of cash flows from MAG Silver Corp.'s Juanicpio will be a handsome shareholder returns program (being a compelling argument in its own right to acquire the company's shares at an attractive valuation at these levels), we see MAG having much more to offer with a promising exploration pipeline in the works. Particular emphasis was made at PDAC to display the potential offered through their recently acquired Larder Lake project."

Chris Thompson, PI Financial (4/27/22) "MAG Silver Corp. reported Q1/22 production generally in line with our estimates. . .Juanicipio produced 2.4 Moz Ag and 5.8 Koz Au, slightly ahead of our estimates of 2.3 Moz Ag and 5.2 Koz Au (on a 100% basis). . .both throughput and grades were ahead of our estimates."

Chris Thompson, PI Financial (2/7/22) "We continue to see potential for a doubling of plant capacity at MAG Silver Corp.'s Juanicipio, given the scale of the deposit defined outside of current reserves. We now model an expansion to 8 Ktpd occurring in five years' time (2027E). . .we still see the company offering a modest about 3% free cash flow yield for 2022E."

	Peter Krauth, Gold Resource Investor (2/2/22) "MAG Silver Corp. reported Q4/22 production at Juanicipio: 113,950 tons of mineralized material were processed, representing about 45% of all material processed for 2021. The company's 44% share of production was 718,080 oz silver and 1,754 oz gold. . .MAG is oversold and attractive at current levels."

Ryan Thompson, BMO Capital Markets (1/27/22) "Q4/21 was the strongest production quarter on record since MAG Silver Corp.'s Juanicipio operation began sending ore to the Fresnillo plant six quarters ago. On a 100% basis, the operation produced 1.6 Moz silver (718 Koz attributable to MAG), higher than our estimate of 1.1 Moz (100% basis). . .material processed in Q4/21 represented 45% of annual production."

	Chen Lin, What Is Chen Buying? What Is Chen Selling? (1/24/22) "MAG Silver Corp. is trading back to the $14–15 area; that is the area where there was strong support recently. Personally, I believe it is a good area to accumulate some shares, if you like silver."

Chen Lin, What Is Chen Buying? What Is Chen Selling? (12/29/21) "MAG Silver Corp. had some delays in mill commissioning; I don't like the delay, but they can still process the material in the nearby mill. I used the opportunity to add some positions."

Chen Lin, What Is Chen Buying? What Is Chen Selling? (11/29/21) "MAG Silver Corp. just raised $46M at $17.25; the company is now trading at about $16, only 100K of volume. In the blink of an eye, it can go back to $17+; if you like silver, I believe this is a great buying opportunity here."

Chen Lin, What Is Chen Buying? What Is Chen Selling? (11/24/21) "MAG Silver Corp. is raising money. . .it is a good opportunity to buy or add here. The high grade silver mine will be in full production next year and generate margins as high as Wheaton Precious Metals."

	Joe Reagor, ROTH Capital Partners (11/17/21) "MAG Silver Corp. announced it had secured a $40M revolving credit facility. . .we see this as an incremental positive for the company as the ramp-up of a mining operation can result in significant working capital swings. With the revolving credit facility, we do not foresee any liquidity risks for MAG in the near term."

	Chen Lin, What Is Chen Buying? What Is Chen Selling? (11/16/21) "MAG Silver Corp. is clearly fully funded to complete the construction and arranged a $40M line of credit for the startup capital; now it won't need any more money until free cash flow. Once the mine is in production, the company should enjoy a huge premium; I like the stock here."

	Peter Krauth, Gold Resource Investor (11/3/21) "Construction of MAG Silver Corp.'s Juanicipio processing plant is progressing with focus on transitioning from construction to commissioning; testing has begun, with full-load commissioning expected for year-end. The company continues to plow forward and hold up well, especially against many peers."

	Heiko Ihle, H.C. Wainwright & Co. (10/29/21) "MAG Silver Corp.'s joint venture continues to utilize Fresnillo's 100%-owned beneficiation plant to process Juanicipio's mineralized development material at a targeted rate of 16 Kt/month. . .revenues from this production should ultimately provide the necessary capital to offset the project's cash requirements, thereby derisking the plant commissioning and ramp-up phases expected by 2021E."

Richard Gray, Cormark Securities (10/28/21) "MAG Silver Corp. and joint venture partner Fresnillo expect to obtain the authorization to connect to the Mexico power grid on schedule, which would be followed by no load testing, water testing in November and full load commissioning by year-end 2021. . .the transition to the Juanicipio plant commissioning in Q4/21 is the next major milestone that could drive MAG's multiple higher."

Anita Soni, CIBC World Markets (10/27/21) "MAG Silver Corp. reported Q3/21 attributable production from the 44%-owned Juanicipio project of 293.7 Koz silver and 487 oz gold. . .total production for the quarter on a 100% basis was 667.5 Koz silver and 1.1 Koz gold, with MAG's attributable 44% interest totaling 293.7 Koz silver and 487 oz gold, above our estimate of 204 Koz silver for Q3/21."

Don DeMarco, National Bank of Canada (10/27/21) "We look forward to a potential rerate of MAG Silver Corp. to producer multiples as it transitions into a producer. . .the company noted activities are now transitioning from construction of the Juanicipio processing plant to commissioning, with the latter expected be to completed by 2021E (unchanged) followed by ramp-up in H1/22 (unchanged)."

Chris Thompson, PI Financial (10/27/21) "Toll milling of development ore from MAG Silver Corp.'s Juanicipio has been ongoing for over 14 months, allowing for ongoing testing and optimization of the process flowsheet. We expect this will lead to a rapid ramp-up of the Juanicipio plant through 2022, reaching nameplate capacity of 4 Ktpd in Q2/22."

Trevor Turnbull, Scotiabank (10/27/21) "MAG Silver Corp. reported the Juanicipio plant is nearing mechanical completion and that precommissioning is underway. . .we model commercial production beginning in Q2/22 at a run rate of approximately 9 Moz of silver prepayable production attributable to MAG."

Craig Hutchison, TD Securities (10/27/21) "Development ore from MAG's Juanicipio processed through the nearby Fresnillo plant in Q3/21 totaled 668 Koz Ag and 1,107 oz Au on a 100% basis, with the associated zinc and lead production to be included in the company's upcoming quarterly filings. Year to date, development ore production from Juanicipio has totaled 1,564 Koz Ag and 2,591 oz Au on a 100% basis."

Stephen Soock, Stifel (9/30/21) "MAG Silver Corp. remains well funded through construction and ramp-up, with a Stifel estimated $42M in cash at Q3/21E and only $21M left in funding commitments (net of precommercial revenue). When in full swing, Juanicipio will produce 27 Moz Ag eq/year (100% basis), making it the world's largest primary silver mine. At current spot metal prices, MAG will net $178M in free cash flow next year with a three-year forward spot free cash flow yield of 13%."

Experts Following This Company

	Cosmos Chiu, Executive Director of Precious Metals Equity Research – CIBC World Markets
Nicolas Dion, Analyst – Cormark Securities
Michael Fairbairn, Analyst – Canaccord Genuity
	Heiko Ihle, Managing Director – H.C. Wainwright & Co.
	Chen Lin – What Is Chen Buying? What Is Chen Selling?
Kevin O'Halloran
Lucas Pamatat – Canaccord Genuity
	Joe Reagor, Analyst – ROTH Capital Partners
Stephen Soock – Stifel
Chris Thompson, Mining Analyst – PI Financial
Ryan Thompson – BMO Capital Markets

Company News

9/18/2023 – MAG Silver Publishes Second Annual Sustainability Report

8/3/2023 – MAG Silver Drills Three New Silver, Gold and Copper Zones at Deer Trail

7/26/2023 – MAG Announces Second Quarter Production From Juanicipio

12/27/2021 – Fresnillo and MAG Silver Provide Juanicipio Commissioning Update

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