MAG Silver Reports First Quarter Financial Results
MAG Silver Corp. announced its Q1 2024 financial results, highlighting strong performance from the Juanicipio project. Key figures include a net income of $14.9M ($0.14 per share) and adjusted EBITDA of $32.4M. The Juanicipio mine processed 325,683 tonnes of ore, producing 4.5M ounces of silver and 6.4M silver equivalent ounces. Operating cash flow was $42.5M, with free cash flow at $27.8M. Mineral resources saw a 33% increase, with the new technical report showing an after-tax NPV of $1.2B. The company also acquired the Goldstake property and continued its Phase 3 drilling at the Deer Trail Project.
- Net income of $14.9M ($0.14 per share) for Q1 2024.
- Adjusted EBITDA of $32.4M.
- Silver production of 4.5M ounces and equivalent silver production of 6.4M ounces.
- Operating cash flow of $42.5M and free cash flow of $27.8M.
- Mineral resources increased by 33%.
- New technical report with after-tax NPV of $1.2B.
- 2024 production guidance: 14.3M to 15.8M silver ounces.
- Acquisition of Goldstake property.
- Higher production costs at $36.8M, up from $27.4M.
- Increased depreciation and amortization costs at $22M.
- Higher administrative expenses at $4.2M.
- Higher extraordinary mining and other duties at $1.4M.
- Increased taxes, with an income tax expense of $14.2M.
Insights
MAG Silver's Q1 2024 financial results present a promising picture. The company reported
Juanicipio’s cost performance was particularly robust, with cash costs per silver ounce significantly decreasing from
For retail investors, these results indicate strong financial health and operational efficiency. The significant reduction in cash costs and all-in sustaining costs (AISC) from Q1 2023 to Q1 2024 reflects substantial margin improvements, which can positively influence future profitability and shareholder returns.
The operational advancements at Juanicipio are noteworthy. The mine achieved an increase in material processed by 47% and the silver head grade improved to 476 grams per tonne from 363 grams per tonne. This improvement can be attributed to operational ramp-up and higher-grade ore processing. Notably, the mine’s silver metallurgical recovery rate also improved to 89.1%, indicating enhanced processing efficiency.
The updated technical report projects robust economics with an after-tax NPV of
This information highlights the operational strength and future potential of Juanicipio, making MAG Silver a compelling investment within the mining sector.
MAG Silver’s ability to enhance production and report significant financial gains amid a challenging economic landscape is commendable. The company saw a 179% increase in metal volumes sold, driven by higher production rates and improved market prices for silver and gold. Sales rose substantially from
For retail investors, the strong financial performance coupled with increased production and improved cost structures signifies a solid investment. The market dynamics for precious metals like silver and gold continue to be favorable and MAG Silver’s strategic positioning makes it well-placed to benefit from these trends. The company’s ongoing exploration and potential for new high-grade discoveries further reinforce its growth prospects.
Investors should consider the robust financial health, efficient operations and potential for future resource expansions as indicators of MAG Silver's strong market position.
VANCOUVER, British Columbia, May 14, 2024 (GLOBE NEWSWIRE) -- MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”, or the “Company”) announces the Company’s unaudited consolidated financial results for the three months ended March 31, 2024 (“Q1 2024”). For details of the unaudited condensed interim consolidated financial statements of the Company for the three months ended March 31, 2024 (“Q1 2024 Financial Statements”) and management’s discussion and analysis for the three months ended March 31, 2024 (“Q1 2024 MD&A”), please see the Company’s filings on the System for Electronic Document Analysis and Retrieval Plus (“SEDAR+”) at (www.sedarplus.ca) or on the Electronic Data Gathering, Analysis, and Retrieval (“EDGAR”) at (www.sec.gov).
All amounts herein are reported in
KEY HIGHLIGHTS (on a
- MAG reported net income of
$14,895 ($0.14 per share) driven by income from Juanicipio (equity accounted) of$19,244 , and adjusted EBITDA1 of$32,447 for the three months ended March 31, 2024. - A total of 325,683 tonnes of ore at a silver head grade of 476 grams per tonne (“g/t”) (equivalent silver head grade2 713 g/t), was processed at Juanicipio during Q1 2024.
- Juanicipio achieved silver production and equivalent silver production2 of 4.5 and 6.4 million ounces, respectively, during Q1 2024.
- Juanicipio delivered robust cost performance with cash cost1 of
$2.50 per silver ounce sold ($8.66 per equivalent silver ounce sold3), and all-in sustaining cost1 of$6.11 per silver ounce sold ($11.22 per equivalent silver ounce sold3) in Q1 2024. - Juanicipio generated strong operating cash flow of
$42,521 and free cash flow1 of$27,820 in the first quarter of 2024 after tax payments of$25,772. - Juanicipio returned a total of
$17,459 in interest and loan principal repayments to MAG during Q1 2024. - MAG published its updated technical report on Juanicipio on March 27, 2024 outlining robust economics with an after tax NPV of
$1.2 billion over an initial 13-year life of mine, generating annual average free cashflow exceeding$130 million . Mineral Resources increased by33% from the 2017 PEA, with substantial growth in Measured and Indicated categories. Inferred resources also expanded, highlighting significant near-term, high-grade upside potential. An inaugural 15.4 million tonnes Mineral Reserve Estimate at 628 g/t silver equivalent grade was declared enhancing economic confidence. Extensive exploration upside remains, with only5% of the property explored, indicating high potential for further discoveries. - MAG announced 2024 production and cost guidance with Juanicipio expected to produce between 14.3 million and 15.8 million silver ounces yielding between 13.2 million and 14.6 million payable silver ounces at all-in sustaining costs of between
$9.50 and$10.50 per silver ounce sold. Juanicipio remains on track to achieve 2024 guidance. - On March 22, 2024 the Company, through its Gatling Exploration Inc. subsidiary, acquired
100% ownership of the Goldstake property (contiguous to its current land holdings) from Goldstake Explorations Inc. and Transpacific Resources Inc., for consideration of C$5,000.
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1 Adjusted EBITDA, total cash costs, cash cost per ounce, all-in sustaining costs, all-in sustaining cost per ounce and free cash flow are non-IFRS measures, please see below ‘Non-IFRS Measures’ section and section 12 of the Q1 2024 MD&A for a detailed reconciliation of these measures to the Q1 2024 Financial Statements.
2 Equivalent silver head grade and equivalent silver production have been calculated using the following price assumptions to translate gold, lead and zinc to “equivalent” silver head grade and “equivalent” silver production:
3 Equivalent silver ounces sold have been calculated using realized price assumptions to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices of
CORPORATE
- The Company is well underway with the preparation of its 2023 sustainability report underscoring its continued commitment to transparency with its stakeholders while providing a comprehensive overview of the Company’s environmental, social and governance (“ESG”) commitments, practices and performance for 2023. A copy of MAG’s 2022 sustainability report and MAG Silver 2022 ESG Data Table are available on the Company’s website at https://magsilver.com/esg/reports/4.
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4 Information contained in or otherwise accessible through the Company’s website, including the 2022 sustainability report and MAG Silver 2022 ESG Data Table, do not form part of this News Release and are not incorporated into this News Release by reference.
EXPLORATION
- Juanicipio:
- Infill drilling at Juanicipio continued in Q1 2024 from underground aimed at upgrading mineralization in areas expected to be mined in the near to mid-term. During Q1 2024, 11,271 metres were drilled from underground.
- Surface drilling focused on expanding and upgrading the deeper zones and broader regional exploration started in April 2024.
- During 2024, Juanicipio plans to drill a total of 50,000 metres, with 33,000 metres from underground and 17,000 metres from surface.
- Deer Trail Project, Utah:
- On May 29, 2023 MAG started a Phase 3 drilling program focused on up to three porphyry “hub” target areas thought to be the source of the manto, skarn, epithermal mineralization and extensive alteration throughout the project area including that at the Deer Trail and Carissa zones. In late 2023 an early onset of winter snowfall impacted the commencement of the third porphyry “hub” target, which is now expected to be drilled in 2024. The two completed “hub” holes to date total 2,738 metres. Both holes intercepted alteration and mineralization in line with what is expected on the edges of porphyry systems. Follow-up drill targets are planned for summer 2024.
- With the early onset of snowfall, Phase 4 drilling focussed on lower elevations commenced in the last quarter of 2023 and continued through Q1 2024, aimed at offsetting the Carissa discovery and testing other high-potential targets in the Deer Trail mine area. During Q1 2024, 1,208 metres were drilled at Carissa with results pending.
- Larder Project, Ontario:
- Drilling targeting Cheminis and Bear totalled 5,391 metres in Q1 2024. Targets tested include down plunge extension of the high-grade double knuckle at the Bear East zone and extending the Cheminis south mine sequence down plunge.
- Cheminis Update: Follow-up drilling of the Cheminis South Cadillac-Larder Break (“CLD”) mine sequence down plunge is planned to test below the most recent intercepts. Hole GAT-24-026 intersected a new zone on the north side of the CLB within a fuchsite-silica-albite altered komatiite grading 3.9 g/t gold over 16 metres with 2 higher grade shoots associated with albite dykes (see Table 1 below).
- Bear Update: Utilizing the updated model and incorporating the updated data from recent drilling, the Bear East zone was successfully extended down plunge by up to 1,100 metres depth. Hole GAT-24-024NB intersected gold mineralization on both sides of the CLB which confirms the presence of either another structural trap at depth or the continuation of the “double knuckle” zone at surface. Gold mineralization intersected on the north zone included 9.4 g/t gold over 2.2 metres within a strongly altered komatiite with syenite intrusions and 1.6 g/t gold over 4.2 metres on the south zone within the south iron-rich volcanics (see Table 1 below). Bear East remains open in all directions.
Table 1: 2024 Larder Drillholes Highlights
| Hole ID | From (m) | To (m) | Length (m)1 | Gold (g/t) | Lithology | Target/Zone |
| GAT-24-024NB | 1233.7 | 1244.0 | 10.3 | 2.3 | Komatiites with Syenite Intrusions | North Bear Zone |
| Including | 1234.1 | 1236.3 | 2.2 | 9.4 | Syenite | North Bear Zone |
| and | 1415.5 | 1419.7 | 4.2 | 1.6 | South Volcanics | South Bear Zone |
| GAT-24-026 | 1127.0 | 1143.0 | 16.0 | 3.9 | Green Komatiites with Albite dykes | North Cheminis Zone |
| Including | 1134.3 | 1135.5 | 1.2 | 9.1 | Green Komatiite with Albite dykes | North Cheminis Zone |
| Including | 1137.4 | 1139.0 | 1.6 | 8.1 | Green Komatiite with Albite dykes | North Cheminis Zone |
JUANICIPIO RESULTS
All results of Juanicipio in this section are on a
Operating Performance
The following table and subsequent discussion provide a summary of the operating performance of Juanicipio for the three months ended March 31, 2024 and 2023, unless otherwise noted.
| Three months ended | ||||
| March 31, | March 31, | |||
| Key mine performance data of Juanicipio ( | 2024 | 2023 | ||
| Metres developed (m) | 4,069 | 3,450 | ||
| Material mined (t) | 325,081 | 223,632 | ||
| Material processed (t) | 325,683 | 222,023 | ||
| Silver head grade (g/t) | 476 | 363 | ||
| Gold head grade (g/t) | 1.33 | 1.07 | ||
| Lead head grade (%) | 1.35 | % | 0.74 | % |
| Zinc head grade (%) | 2.50 | % | 1.45 | % |
| Equivalent silver head grade (g/t) (1) | 713 | 530 | ||
| Silver payable ounces (koz) | 3,995 | 2,001 | ||
| Gold payable ounces (koz) | 8.90 | 5.29 | ||
| Lead payable pounds (klb) | 7,747 | 2,825 | ||
| Zinc payable pounds (klb) | 11,846 | 3,650 | ||
| Equivalent silver payable ounces (koz) (2) | 5,627 | 2,796 | ||
(1) Equivalent silver head grades have been calculated using the following price assumptions to translate gold, lead and zinc to “equivalent” silver head grade:
(2) Equivalent silver payable ounces have been calculated using realized price assumptions to translate gold, lead and zinc to “equivalent” silver payable ounces (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices of
During the three months ended March 31, 2024 a total of 325,081 tonnes of ore were mined. This represents an increase of
During the three months ended March 31, 2024 a total of 325,683 tonnes of ore were processed through the Juanicipio plant; no ore was processed at the nearby Fresnillo and Saucito processing plants (
The silver head grade and equivalent silver head grade for the ore processed in the three months ended March 31, 2024 was 476 g/t and 713 g/t, respectively (three months ended March 31, 2023: 363 g/t and 530 g/t, respectively). Head grades in Q1 2023 were lower as low-grade commissioning stockpiles were processed through the Juanicipio plant. Silver metallurgical recovery during Q1 2024 was
The following table provides a summary of the total cash costs5 and all-in sustaining costs5 (“AISC”) of Juanicipio for the three months ended March 31, 2024, and 2023.
| Three months ended | ||||
| March 31, | March 31, | |||
| Key mine performance data of Juanicipio ( | 2024 | 2023 | ||
| Total cash costs (5) | 9,973 | 22,439 | ||
| Cash cost per silver ounce sold ($/oz) (5) | 2.50 | 11.21 | ||
| Cash cost per equivalent silver ounce sold ($/oz) (5) | 8.66 | 14.55 | ||
| All-in sustaining costs (5) | 24,393 | 32,902 | ||
| All-in sustaining cost per silver ounce sold ($/oz) (5) | 6.11 | 16.44 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/oz) (5) | 11.22 | 18.29 | ||
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5 Total cash costs, cash cost per ounce, cash cost per equivalent ounce, all-in sustaining costs, all-in sustaining cost per ounce, and all-in sustaining cost per equivalent ounce are non-IFRS measures, please see the “Non-IFRS Measures” section below and section 12 of the Q1 2024 MD&A for a detailed reconciliation of these measures to the Q1 2024 Financial Statements. Equivalent silver ounces sold have been calculated using realized price assumptions to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices of
Financial Results
The following table presents excerpts of the financial results of Juanicipio for the three months ended March 31, 2024 and 2023.
| Three months ended | ||||
| March 31, | March 31, | |||
| 2024 | 2023 | |||
| $ | $ | |||
| Sales | 123,689 | 51,482 | ||
| Cost of sales: | ||||
| Production cost | (36,787 | ) | (27,378 | ) |
| Depreciation and amortization | (22,038 | ) | (7,955 | ) |
| Gross profit | 64,864 | 16,149 | ||
| Consulting and administrative expenses | (4,189 | ) | (1,499 | ) |
| Extraordinary mining and other duties | (1,392 | ) | (520 | ) |
| Interest expense | (3,979 | ) | (3,816 | ) |
| Exchange losses and other | (1,297 | ) | (2,864 | ) |
| Net income before tax | 54,007 | 7,451 | ||
| Income tax expense | (14,249 | ) | 6,731 | |
| Net income ( | 39,758 | 14,182 | ||
| MAG’s | 17,494 | 6,240 | ||
| Interest on Juanicipio loans - MAG's | 1,751 | 1,679 | ||
| MAG’s | 19,244 | 7,919 | ||
Sales increased by
Offsetting higher sales was higher production cost (
Other expenses increased by
Taxes increased by
Ore Processed at Juanicipio Plant (
| Three Months Ended March 31, 2024 (325,683 tonnes processed) | Three Months Ended March 31, 2023 Amount $ | |||||||
| Payable Metals | Quantity | Average Price $ | Amount $ | |||||
| Silver | 3,994,614 ounces | 23.73 per oz | 94,810 | 45,875 | ||||
| Gold | 8,904 ounces | 2,112 per oz | 18,807 | 10,367 | ||||
| Lead | 3,514 tonnes | 0.92 per lb. | 7,100 | 2,661 | ||||
| Zinc | 5,373 tonnes | 1.08 per lb. | 12,836 | 5,208 | ||||
| Treatment, refining, and other processing costs (2) | (9,864 | ) | (12,629 | ) | ||||
| Sales | 123,689 | 51,482 | ||||||
| Production cost | (36,787 | ) | (27,378 | ) | ||||
| Depreciation and amortization (1) | (22,038 | ) | (7,955 | ) | ||||
| Gross Profit | 64,864 | 16,149 | ||||||
(1) The underground mine was considered readied for its intended use on January 1, 2022, whereas the Juanicipio processing facility started commissioning and ramp-up activities in January 2023, achieving commercial production status on June 1, 2023.
(2) Includes toll milling costs from processing mineralized material at the Saucito and Fresnillo plants for Q1 2023.
Sales and treatment charges are recorded on a provisional basis and are adjusted based on final assay and pricing adjustments in accordance with the offtake contracts.
MAG FINANCIAL RESULTS – THREE MONTHS ENDED MARCH 31, 2024
As at March 31, 2024, MAG had working capital of
The Company’s net income for the three months ended March 31, 2024 amounted to
| For the three months ended | ||||
| March 31, 2024 | March 31, 2023 | |||
| $ | $ | |||
| Income from equity accounted investment in Juanicipio | 19,244 | 7,919 | ||
| General and administrative expenses | (4,109 | ) | (3,272 | ) |
| General exploration and business development | (357 | ) | (102 | ) |
| Operating income | 14,778 | 4,545 | ||
| Interest income | 827 | 564 | ||
| Other income | 537 | 127 | ||
| Foreign exchange loss | (163 | ) | (180 | ) |
| Income before income tax | 15,979 | 5,056 | ||
| Deferred income tax expense | (1,084 | ) | (343 | ) |
| Net income | 14,895 | 4,713 | ||
NON-IFRS MEASURES
The following table provides a reconciliation of cash cost per silver ounce of Juanicipio to production cost of Juanicipio on a
| Three months ended March 31, | ||||
| (in thousands of US$, except per ounce amounts) | 2024 | 2023 | ||
| Production cost as reported | 36,787 | 27,378 | ||
| Depreciation on inventory movements | 673 | 149 | ||
| Adjusted production cost | 37,460 | 27,527 | ||
| Treatment, refining, and other processing costs | 9,864 | 12,629 | ||
| By-product revenues (2) | (38,743 | ) | (18,236 | ) |
| Extraordinary mining and other duties | 1,392 | 520 | ||
| Total cash costs (1) | 9,973 | 22,439 | ||
| Silver ounces sold | 3,994,614 | 2,000,974 | ||
| Equivalent silver ounces sold (3) | 5,626,959 | 2,796,391 | ||
| Cash cost per silver ounce sold ($/ounce) | 2.50 | 11.21 | ||
| Cash cost per equivalent silver ounce sold ($/ounce) | 8.66 | 14.55 | ||
(1) As Q3 2023 represented the first full quarter of commercial production, information presented for total cash costs together with their associated per unit values are not directly comparable.
(2) By-product revenues relates to the sale of other metals namely gold, lead, and zinc.
(3) Equivalent silver payable ounces have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver payable ounces (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices:
The following table provides a reconciliation of AISC of Juanicipio to production cost and various operating expenses of Juanicipio on a
| Three months ended March 31, | ||||
| (in thousands of US$, except per ounce amounts) | 2024 | 2023 | ||
| Total cash costs | 9,973 | 22,439 | ||
| General and administrative expenses | 4,189 | 1,499 | ||
| Exploration | 1,368 | 2,133 | ||
| Sustaining capital expenditures | 8,598 | 6,598 | ||
| Sustaining lease payments | 208 | 179 | ||
| Interest on lease liabilities | (16 | ) | (6 | ) |
| Accretion on closure and reclamation costs | 72 | 59 | ||
| All-in sustaining costs (1) | 24,393 | 32,902 | ||
| Silver ounces sold | 3,994,614 | 2,000,974 | ||
| Equivalent silver ounces sold (2) | 5,626,959 | 2,796,391 | ||
| All-in sustaining cost per silver ounce sold ($/ounce) | 6.11 | 16.44 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/ounce) | 11.22 | 18.29 | ||
| Average realized price per silver ounce sold ($/ounce) | 23.73 | 22.93 | ||
| All-in sustaining margin ($/ounce) | 17.63 | 6.48 | ||
| All-in sustaining margin ($/equivalent ounce) | 12.51 | 4.64 | ||
| All-in sustaining margin | 70,417 | 12,973 | ||
(1) As Q3 2023 represented the first full quarter of commercial production, information presented for all-in sustaining costs and all-in sustaining margin together with their associated per unit values are not directly comparable.
(2) Equivalent silver payable ounces have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver payable ounces (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices:
For the three months ended March 31, 2024 the Company incurred corporate G&A expenses of
The Company’s attributable silver ounces sold and equivalent silver ounces sold for the three months ended March 31, 2024 were 1,757,630 and 2,475,862 respectively (three months ended March 31, 2023: 880,429 and 1,230,412 respectively), resulting in additional all‐in sustaining cost for the Company of
The following table provides a reconciliation of EBITDA and Adjusted EBITDA attributable to the Company based on its economic interest in Juanicipio to net income (the nearest IFRS measure) of the Company per the Q1 2024 Financial Statements. All adjustments are shown net of estimated income tax.
| Three months ended March 31, | ||||
| (in thousands of US$) | 2024 | 2023 | ||
| Net income after tax | 14,895 | 4,713 | ||
| Add back (deduct): | ||||
| Taxes | 1,084 | 343 | ||
| Depreciation and depletion | 145 | 10 | ||
| Finance costs (income and expenses) | (1,201 | ) | (511 | ) |
| EBITDA (1) | 14,923 | 4,555 | ||
| Add back (deduct): | ||||
| Adjustment for non-cash share-based compensation | 966 | 763 | ||
| Share of net earnings related to Juanicipio | (19,244 | ) | (7,919 | ) |
| MAG attributable interest in Junicipio Adjusted EBITDA | 35,802 | 9,718 | ||
| Adjusted EBITDA (1) | 32,447 | 7,117 | ||
(1) As Q3 2023 represents the first full quarter of commercial production, information presented for EBITDA and Adjusted EBITDA is not directly comparable.
The following table provides a reconciliation of free cash flow of Juanicipio to its cash flow from operating activities on a
| Three months ended March 31, | ||||
| (in thousands of US$) | 2024 | 2023 | ||
| Cash flow from operating activities | 42,521 | (29,910 | ) | |
| Less: | ||||
| Cash flow used in investing activities | (14,492 | ) | (19,004 | ) |
| Sustaining lease payments | (208 | ) | (179 | ) |
| Juanicipio free cash flow (1) | 27,820 | (49,093 | ) | |
(1) As Q3 2023 represents the first full quarter of commercial production, comparative information presented for free cash flow of Juanicipio is not directly comparable.
Qualified Persons: All scientific or technical information in this press release including assay results referred to, and mineral resource estimates, if applicable, is based upon information prepared by or under the supervision of, or has been approved by Gary Methven, P.Eng., Vice President, Technical Services and Lyle Hansen, P.Geo, Geotechnical Director; both are “Qualified Persons” for purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About MAG Silver Corp.
MAG Silver Corp. is a growth-oriented Canadian exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (
Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.
Certain information contained in this release, including any information relating to MAG’s future oriented financial information, are “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States securities legislation (collectively herein referred as “forward-looking statements”), including the “safe harbour” provisions of provincial securities legislation, the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended and Section 27A of the U.S. Securities Act. Such forward-looking statements include, but are not limited to:
- statements that address maintaining the nameplate 4,000 tpd milling rate at Juanicipio;
- statements that address our expectations regarding exploration and drilling;
- statements regarding production expectations and nameplate;
- statements regarding the additional information from future drill programs;
- estimated future exploration and development operations and corresponding expenditures and other expenses for specific operations;
- the expected capital, sustaining capital and working capital requirements at Juanicipio, including the potential for additional cash calls;
- expected upside from additional exploration;
- expected results from Deer Trail Project drilling;
- expected results from the Larder Project at the Fernland, Cheminis, and Bear zones;
- expected capital requirements and sources of funding; and
- other future events or developments.
When used in this release, any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, assumptions or future events of performance (often but not always using words or phrases such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”, “strategy”, “goals”, “objectives”, “project”, “potential” or variations thereof or stating that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions), as they relate to the Company or management, are intended to identify forward-looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to certain known and unknown risks, uncertainties and assumptions.
Forward-looking statements are necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control and many of which, regarding future business decisions, are subject to change. Assumptions underlying the Company’s expectations regarding forward-looking statements contained in this release include, among others: MAG’s ability to carry on its various exploration and development activities including project development timelines, the timely receipt of required approvals and permits, the price of the minerals produced, the costs of operating, exploration and development expenditures, the impact on operations of the Mexican tax and legal regimes, MAG’s ability to obtain adequate financing, outbreaks or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally.
Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including amongst others: commodities prices; changes in expected mineral production performance; unexpected increases in capital costs or cost overruns; exploitation and exploration results; continued availability of capital and financing; general economic, market or business conditions; risks relating to the Company’s business operations; risks relating to the financing of the Company’s business operations; risks related to the Company’s ability to comply with restrictive covenants and maintain financial covenants pursuant to the terms of the Credit Facility; the expected use of the Credit Facility; risks relating to the development of Juanicipio and the minority interest investment in the same; risks relating to the Company’s property titles; risks related to receipt of required regulatory approvals; pandemic risks; supply chain constraints and general costs escalation in the current inflationary environment heightened by the invasion of Ukraine by Russia and the events relating to the Israel-Hamas war; risks relating to the Company’s financial and other instruments; operational risk; environmental risk; political risk; currency risk; market risk; capital cost inflation risk; risk relating to construction delays; the risk that data is incomplete or inaccurate; the risks relating to the limitations and assumptions within drilling, engineering and socio-economic studies relied upon in preparing economic assessments and estimates, including the 2017 PEA; as well as those risks more particularly described under the heading “Risk Factors” in the Company’s Annual Information Form dated March 27, 2023 available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and, other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on forward-looking statements.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedarplus.ca and www.sec.gov.
LEI: 254900LGL904N7F3EL14
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