MAG Silver Reports Second Quarter Financial Results
MAG Silver Corp. announced its unaudited financial results for Q2 2024, reporting a net income of $21,614 ($0.21 per share) mainly because of income from Juanicipio mine amounting to $25,123. The adjusted EBITDA stood at $50,353.
The company processed 336,592 tonnes of ore at a silver head grade of 498 g/t, achieving silver production of 5.0 million ounces and equivalent silver production of 7.1 million ounces. Juanicipio showed robust cash flow with operating cash flow of $92,766 and free cash flow of $88,637.
Full-year guidance has been raised, with expected silver head grades between 420g/t to 460g/t and production estimated at 16.3 million to 17.3 million ounces. The all-in sustaining costs are expected between $8.50 and $9.25 per silver ounce, lower than previous estimates.
The company's liquidity was bolstered by $29,818 in interest and loan principal repayments from Juanicipio, bringing the total liquidity to $97,337 million.
MAG Silver Corp. ha annunciato i risultati finanziari non certificati per il secondo trimestre del 2024, riportando un reddito netto di $21,614 ($0,21 per azione), principalmente grazie ai proventi dalla miniera di Juanicipio, che ammontano a $25,123. L'EBITDA rettificato si è attestato a $50,353.
L'azienda ha trattato 336,592 tonnellate di minerale con un grado di argento di 498 g/t, ottenendo una produzione di argento di 5,0 milioni di once e una produzione equivalente di argento di 7,1 milioni di once. Juanicipio ha mostrato un robusto flusso di cassa con un flusso di cassa operativo di $92,766 e un flusso di cassa libero di $88,637.
Le previsioni per l'intero anno sono state riviste al rialzo, con i livelli di grado di argento attesi tra 420 g/t e 460 g/t e la produzione stimata tra 16,3 milioni e 17,3 milioni di once. I costi totali sostenuti sono previsti tra $8,50 e $9,25 per oncia d'argento, inferiori rispetto alle stime precedenti.
La liquidità dell'azienda è stata potenziata da $29,818 in interessi e rimborsi di capitale dei prestiti dalla miniera di Juanicipio, portando la liquidità totale a $97,337 milioni.
MAG Silver Corp. anunció sus resultados financieros no auditados para el segundo trimestre de 2024, reportando una utilidad neta de $21,614 ($0.21 por acción) principalmente debido a los ingresos de la mina Juanicipio, que ascienden a $25,123. El EBITDA ajustado fue de $50,353.
La compañía procesó 336,592 toneladas de mineral con una ley de plata de 498 g/t, logrando una producción de plata de 5.0 millones de onzas y una producción equivalente de plata de 7.1 millones de onzas. Juanicipio mostró un flujo de caja sólido con un flujo de caja operativo de $92,766 y un flujo de caja libre de $88,637.
La orientación de producción para todo el año se ha elevado, con un grado de plata esperado entre 420 g/t y 460 g/t, y una producción estimada de entre 16.3 millones y 17.3 millones de onzas. Se espera que los costos totales sostenidos estén entre $8.50 y $9.25 por onza de plata, inferiores a las estimaciones previas.
La liquidez de la empresa se fortaleció con $29,818 en intereses y reembolsos de capital de préstamos de Juanicipio, llevando la liquidez total a $97,337 millones.
MAG Silver Corp.는 2024년 2분기 동안의 감사되지 않은 재무 결과를 발표하면서 순이익으로 $21,614 ($0.21 per share)를 보고했습니다. 이는 주로 Juanicipio 광산에서 발생한 수익이 $25,123이기 때문입니다. 조정된 EBITDA는 $50,353에 달했습니다.
회사는 498 g/t의 은 품위로 336,592 톤의 광석을 처리하여 500만 온스의 은을 생산하였고, 동등한 은 생산량은 710만 온스에 달했습니다. Juanicipio는 운영 현금 흐름이 $92,766, 자유 현금 흐름이 $88,637으로 강력한 현금 흐름을 보였습니다.
연간 전망이 상향 조정되어 예상되는 은 품위가 420g/t에서 460g/t 사이에서, 생산은 1630만 온스에서 1730만 온스으로 추정되고 있습니다. 총 유지 비용은 은 온스당 $8.50에서 $9.25로 예상되며, 이전 예상보다 낮습니다.
회사의 유동성은 Juanicipio에서 발생한 $29,818의 이자 및 대출 원금 상환으로 강화되어 총 유동성이 $97,337 million에 달했습니다.
MAG Silver Corp. a annoncé ses résultats financiers non audités pour le deuxième trimestre 2024, rapportant un revenu net de $21,614 ($0,21 par action) principalement grâce aux revenus de la mine de Juanicipio s'élevant à $25,123. L'EBITDA ajusté s'est établi à $50,353.
La société a traité 336,592 tonnes de minerai avec une teneur en argent de 498 g/t, atteignant une production d'argent de 5,0 millions d'onces et une production équivalente d'argent de 7,1 millions d'onces. Juanicipio a montré un solide flux de trésorerie, avec un flux de trésorerie opérationnel de $92,766 et un flux de trésorerie libre de $88,637.
Les prévisions pour l'année complète ont été relevées, avec des teneurs en argent attendues entre 420 g/t et 460 g/t et une production estimée entre 16,3 millions et 17,3 millions d'onces. Les coûts totaux soutenus devraient se situer entre $8,50 et $9,25 par once d'argent, inférieurs aux estimations précédentes.
La liquidité de l'entreprise a été renforcée par $29,818 d'intérêts et de remboursements de capital de prêts de Juanicipio, portant la liquidité totale à $97,337 millions.
MAG Silver Corp. hat seine unverifizierten Finanzdaten für das zweite Quartal 2024 veröffentlicht und einen Nettogewinn von $21,614 ($0,21 pro Aktie) gemeldet, hauptsächlich aufgrund von Einnahmen aus der Juanicipio-Mine in Höhe von $25,123. Das bereinigte EBITDA betrug $50,353.
Das Unternehmen verarbeitete 336,592 Tonnen Erz mit einem Silbergehalt von 498 g/t und erzielte eine Silberproduktion von 5,0 Millionen Unzen sowie eine äquivalente Silberproduktion von 7,1 Millionen Unzen. Juanicipio zeigte einen stabilen Cashflow mit einem operativen Cashflow von $92,766 und einem freien Cashflow von $88,637.
Die Jahresprognose wurde angehoben, mit erwarteten Silbergehalten zwischen 420g/t und 460g/t und einer geschätzten Produktion zwischen 16,3 Millionen und 17,3 Millionen Unzen. Die Gesamtkosten werden zwischen $8,50 und $9,25 pro Silberunze erwartet, was niedriger ist als frühere Schätzungen.
Die Liquidität des Unternehmens wurde durch $29,818 an Zinsen und Rückzahlungen von Darlehenshauptsummen aus Juanicipio gestärkt, wodurch die Gesamtl liquidität auf $97,337 Millionen stieg.
- Net income of $21,614 ($0.21 per share)
- Adjusted EBITDA of $50,353
- Operating cash flow of $92,766
- Free cash flow of $88,637
- Full-year guidance increased
- Improved cost performance
- Increased liquidity to $97,337 million
- Silver ounces sold decreased by 12.4% from Q2 2023
- Gold ounces sold decreased by 24.6%
- Higher extraordinary mining and other duties
- Significant income tax expense
Insights
MAG Silver's Q2 2024 results demonstrate strong operational and financial performance at the Juanicipio mine. Key highlights include:
- Net income of
$21.6 million ($0.21 per share), driven by$25.1 million income from Juanicipio. - Juanicipio processed 336,592 tonnes of ore at a high silver grade of 498 g/t.
- Silver production of 5.0 million ounces and equivalent silver production of 7.1 million ounces.
- Robust cash flow generation with
$92.8 million operating cash flow and$88.6 million free cash flow. - Excellent cost performance with cash cost of
$1.15 per silver ounce and AISC of$4.49 per silver ounce.
The company increased its full-year guidance due to operational outperformance, now expecting 16.3-17.3 million silver ounces produced at AISC of
MAG's liquidity position strengthened to
Overall, these results indicate Juanicipio is ramping up successfully and generating significant value for MAG Silver. The improved guidance and cost performance bode well for continued strong results through 2024 and beyond.
The operational metrics from Juanicipio are impressive, particularly the cost performance. The cash cost of
The
The increase in full-year guidance is a positive signal, indicating the operation is exceeding initial ramp-up expectations. The projected silver production of 16.3-17.3 million ounces at improved AISC of
Exploration results, particularly at the Larder Project, show promise. The extension of mineralization at Cheminis to 900 meters depth and the identification of the new Twist target along the Cadillac-Larder Break could provide future growth opportunities beyond Juanicipio.
However, investors should note that exploration and development of these additional assets will require capital investment, which could impact near-term cash flows. The company's strong liquidity position of
VANCOUVER, British Columbia, Aug. 02, 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 June 30, 2024 (“Q2 2024”). For details of the unaudited condensed interim consolidated financial statements of the Company for the three and six months ended June 30, 2024 (“Q2 2024 Financial Statements”) and management’s discussion and analysis for the three and six months ended June 30, 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 FOR Q2 2024 (on a
- MAG reported net income of
$21,614 ($0.21 per share) driven by income from Juanicipio (equity accounted) of$25,123 , and adjusted EBITDA1 of$50,353. - A total of 336,592 tonnes of ore at a silver head grade of 498 grams per tonne (“g/t”) (equivalent silver head grade2 746 g/t) was processed at Juanicipio.
- Juanicipio achieved silver production and equivalent silver production2 of 5.0 and 7.1 million ounces, respectively.
- Juanicipio generated strong operating cash flow of
$92,766 and free cash flow1 of$88,637. - Building on the robust Q1 2024 cost performance, Juanicipio continued to improve with cash cost1 of
$1.15 per silver ounce sold ($8.86 per equivalent silver ounce sold3) and all-in sustaining cost1 of$4.49 per silver ounce sold ($11.31 per equivalent silver ounce sold3). - With the continued operational outperformance in the first half of 2024, full year guidance has been increased. As reported by Fresnillo plc (“Fresnillo”), Juanicipio’s operator, silver head grade at Juanicipio is expected to be between 420g/t and 460g/t for 2024 (previously 380g/t to 420g/t). Juanicipio is expected to produce between 16.3 million and 17.3 million (previously 14.3 million and 15.8 million) silver ounces yielding between 14.5 million and 15.4 million (previously 13.2 million and 14.6 million) silver ounces sold at all-in sustaining costs1 of between
$8.50 and$9.25 (previously$9.50 and$10.50) per silver ounce sold. - Juanicipio returned a total of
$29,818 in interest and loan principal repayments to MAG further augmenting MAG’s liquidity position to$97,337 million at the end of the quarter.
CORPORATE
- On May 15, 2024, MAG announced that the Toronto Stock Exchange (“TSX”) had accepted the Company’s Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Under the NCIB, the Company may purchase for cancellation up to an aggregate of 8,643,374 common shares of the Company (“Common Shares”), representing approximately
10% of the public float (as defined in the rules and policies of the TSX) of the Common Shares as of May 8, 2024. - On May 31, 2024, MAG filed a final short form base shelf prospectus with the securities commissions in all of the provinces and territories of Canada (“Final Shelf Prospectus”) and a corresponding registration statement on Form F-10 with the United States Securities and Exchange Commission under the United States Securities Act of 1933, as amended and the U.S./Canada Multijurisdictional Disclosure System allowing the Company to offer up to
$250,000 of common shares, preferred shares, debt securities, subscription receipts, units and warrants or any combination thereof during the 25-month period that the Final Shelf Prospectus remains effective. In order to maintain financial flexibility, and consistent with past practice, the Company has historically maintained a base shelf prospectus, and has no present intention to offer securities pursuant to this Final Shelf Prospectus. - The Company published its 2023 sustainability report on July 18, 2024, underscoring its continued commitment to transparency with its stakeholders while providing a comprehensive overview of the Company’s environmental, social and governance (“ESG”) performance for 2023. A copy of MAG’s 2023 sustainability report and 2023 ESG Data Table are available on the Company’s website at https://magsilver.com/esg/reports/4.
EXPLORATION
- Juanicipio:
- Underground infill drilling at Juanicipio continued in Q2 2024 primarily focussed on upgrading mineralization in areas expected to be mined in the near to mid-term. During Q2 2024, 10,699 metres were drilled from underground.
- Surface drilling focused on expanding and upgrading the deeper zones and broader regional exploration started in April 2024 and is currently focused on the Cañada-Honda Structure. 4,546 metres have been drilled from surface during Q2 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:
- Drilling moved on to Phase 4 in the last quarter of 2023 and continued through Q2 2024, focussed on lower elevations and aimed at offsetting the Carissa discovery and testing other high-potential targets in the Deer Trail mine area. During Q2 2024, 1,610 metres were drilled with results pending.
- On July 11, 2024, MAG reported that the Deer Trail Project was being affected by the Silver King Fire in Piute County with a temporary pause of exploration operations with all personnel safe and the Deer Trail site and infrastructure secure. As of July 29, 2024,
82% of the fire has been contained and the Company has resumed exploration operations.
- Larder Project, Ontario:
- Drilling at Cheminis, Bear and new regional targets, totalled 10,776 metres in Q2 2024. Targets tested include:
- the down plunge extension of the high-grade “double knuckle” at the Bear East zone;
- the “Twist” zone in an underexplored area along the Cadillac-Larder Break (“CLB”) where the major structure switches from south dipping to north dipping, which is located between Cheminis and Bear;
- the extension of the Cheminis south mine sequence down plunge to 900 vertical metres; and
- regional targets along the second order structure and unconformity.
- Cheminis Update: The final two holes of the current Cheminis drilling program totalled 1,455 metres and were designed to delineate the mine sequence down from the 700 metre level to the 900 metre level. Both holes have extended the ore shoots from surface down to 900 metres below surface doubling the depth extent of known mineralization at the Cheminis mine which remains open at depth.
Bear Update: Two directional holes totalling 126 metres, extended the Bear East zone down plunge 1,200 metres below surface, intersecting gold mineralization within a mixing zone of strongly altered komatiites-syenites and ultramafics. Bear East remains open in all directions.
Twist Update: The Twist target was identified in the geololgical review program of 2023, where the CLB main structure switches from south dipping (Cheminis) to north dipping (Bear). It is interpreted to host a potential dilation zone either in the central part of the fold/fault or along the limbs, similar to the historic Kerr Addison mine 5km east of the Larder Project. In Q2 2024 initial drilling started and 4,830 metres have been drilled testing this target. Assays received to date have identified an alteration zone, that is hosted in multiple rock types including volcanics, mafic tuff, sediments and syenites, which is atypical along the CLB. The alteration consists of pervasive silica-carbonate-sericite and the structures associated with the widespread zones are indicative of a series of brittle shears likely sourced from a larger central dilation zone. Approximately 10 holes in total are planned for this target, with 7 remaining.
Regional Targets: The first set of regional targets lie along a 4km second order structure and unconformity and have been identified through Magnetotellurics-Induced Polarization (“MT-IP”) geophysics, surface mapping/sampling and geological importance. Targets include mixed zones of greywackes, trachytes, syenites, conglomerates and volcanics, litho-structural breaks in the MT-IP survey and alteration packages identified on the surface including hydrothermally altered conglomerates and syenites. During Q2 2024, 9 holes were drilled for a total of 4,655 metres with results pending.
- Drilling at Cheminis, Bear and new regional targets, totalled 10,776 metres in Q2 2024. Targets tested include:
________________________
1 Adjusted EBITDA, cash cost per ounce, 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 Q2 2024 MD&A for a detailed reconciliation of these measures to the Q2 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 prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2024 realized prices:
4 Information contained in or otherwise accessible through the Company’s website, including the 2023 sustainability report and 2023 ESG Data Table, do not form part of this MD&A and are not incorporated into this MD&A by reference.
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 June 30, 2024 and 2023, unless otherwise noted.
| Key mine performance data of Juanicipio ( | Three months ended | |||
| June 30, | June 30, | |||
| 2024 | 2023 | |||
| Metres developed (m) | 3,520 | 3,434 | ||
| Material mined (t) | 349,460 | 259,438 | ||
| Material processed (t) | 336,592 | 377,718 | ||
| Silver head grade (g/t) | 498 | 498 | ||
| Gold head grade (g/t) | 1.20 | 1.25 | ||
| Lead head grade (%) | 1.56 | % | 1.05 | % |
| Zinc head grade (%) | 2.99 | % | 1.92 | % |
| Equivalent silver head grade (g/t)(1) | 746 | 708 | ||
| Silver ounces sold (koz) | 4,272 | 4,877 | ||
| Gold ounces sold (koz) | 7.20 | 9.54 | ||
| Lead pounds sold (klb) | 9,224 | 6,760 | ||
| Zinc pounds sold (klb) | 15,237 | 10,103 | ||
| Equivalent silver ounces sold (koz)(2) | 5,817 | 6,390 | ||
(1) Equivalent silver head grades have been calculated using the following price assumptions to translate gold, lead and zinc to “equivalent” silver head grade in 2024:
(2) Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2024 realized prices:
During the three months ended June 30, 2024, a total of 349,460 tonnes of ore were mined. This represents an increase of
During the three months ended June 30, 2024, a total of 336,592 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 June 30, 2024 was 498 g/t and 746 g/t, respectively (three months ended June 30, 2023: 498 g/t and 708 g/t, respectively). Head grades in Q2 2024 were slightly higher than Q2 2023 (
The following table provides a summary of the total cash costs and all-in sustaining costs (“AISC”) of Juanicipio for the three months ended June 30, 2024, and 2023.
| Key mine performance data of Juanicipio ( | Three months ended | |||
| June 30, | June 30, | |||
| 2024 | 2023 | |||
| Total cash costs(1) | 4,911 | 35,584 | ||
| Cash cost per silver ounce sold ($/oz)(1) | 1.15 | 7.30 | ||
| Cash cost per equivalent silver ounce sold ($/oz)(1) | 8.86 | 11.18 | ||
| All-in sustaining costs(1) | 19,161 | 48,456 | ||
| All-in sustaining cost per silver ounce sold ($/oz)(1) | 4.49 | 9.93 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/oz)(1) | 11.31 | 13.19 | ||
(1) 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 below “Non-IFRS Measures” section and section 12 of the Q2 2024 MD&A for a detailed reconciliation of these measures to the Q2 2024 Financial Statements. Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2024 realized prices:
Financial Results
The following table presents excerpts of the financial results of Juanicipio for the three months ended June 30, 2024 and 2023.
| Three months ended | ||||
| June 30, | June 30, | |||
| 2024 | 2023 | |||
| $ | $ | |||
| Sales | 167,079 | 134,775 | ||
| Cost of sales: | ||||
| Production cost | (39,866 | ) | (54,571 | ) |
| Depreciation and amortization | (22,455 | ) | (17,400 | ) |
| Gross profit | 104,757 | 62,804 | ||
| Consulting and administrative expenses | (4,283 | ) | (4,159 | ) |
| Extraordinary mining and other duties | (2,773 | ) | (1,377 | ) |
| Interest expense | (3,241 | ) | (4,886 | ) |
| Exchange gains (losses) and other | 696 | 31 | ||
| Net income before tax | 95,156 | 52,413 | ||
| Income tax (expense) recovery | (41,299 | ) | (6,349 | ) |
| Net income ( | 53,857 | 46,065 | ||
| MAG’s | 23,697 | 20,268 | ||
| Interest on Juanicipio loans - MAG's | 1,426 | 2,150 | ||
| MAG’s | 25,123 | 22,418 | ||
Sales increased by
Production costs decreased by
Depreciation increased by
Cash operating margin increased from
Other expenses decreased by
Taxes increased by
Ore Processed at Juanicipio Plant (
| Three Months Ended June 30, 2024 (336,592 tonnes processed) | Three Months Ended June 30, 2023 Amount $ | |||||
| Metals Sold | Quantity | Average Price $ | Amount $ | |||
| Silver | 4,271,991 ounces | 30.17 per oz | 128,876 | 115,555 | ||
| Gold | 7,195 ounces | 2,380 per oz | 17,124 | 18,668 | ||
| Lead | 4,184 tonnes | 0.99 per lb. | 9,151 | 6,367 | ||
| Zinc | 6,911 tonnes | 1.33 per lb. | 20,333 | 10,807 | ||
| Treatment, refining, and other processing costs (2) | (8,405 | ) | (16,622 | ) | ||
| Sales | 167,079 | 134,775 | ||||
| Production cost | (39,866 | ) | (54,571 | ) | ||
| Depreciation and amortization (1) | (22,455 | ) | (17,400 | ) | ||
| Gross Profit | 104,757 | 62,804 | ||||
(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 Q2 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 JUNE 30, 2024
As at June 30, 2024, MAG had working capital of
The Company’s net income for the three months ended June 30, 2024 amounted to
| For the three months ended | ||||
| June 30, | June 30, | |||
| 2024 | 2023 | |||
| $ | $ | |||
| Income from equity accounted investment in Juanicipio | 25,123 | 22,419 | ||
| General and administrative expenses | (3,622 | ) | (3,233 | ) |
| General exploration and business development | (95 | ) | (40 | ) |
| Operating income | 21,406 | 19,146 | ||
| Interest income | 928 | 641 | ||
| Other income | 650 | 233 | ||
| Financing costs | (134 | ) | - | |
| Foreign exchange gain (loss) | 60 | 168 | ||
| Income before income tax | 22,910 | 20,188 | ||
| Deferred income tax expense | (1,296 | ) | (798 | ) |
| Net income | 21,614 | 19,390 | ||
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 June 30, | ||||
| (in thousands of US$, except per ounce amounts) | 2024 | 2023 | ||
| Production cost as reported | 39,866 | 54,571 | ||
| Depreciation on inventory movements | 474 | (1,145 | ) | |
| Adjusted production cost | 40,340 | 53,426 | ||
| Treatment, refining, and other processing costs | 8,405 | 16,622 | ||
| By-product revenues(2) | (46,608 | ) | (35,842 | ) |
| Extraordinary mining and other duties | 2,773 | 1,377 | ||
| Total cash costs(1) | 4,911 | 35,584 | ||
| Add back by-product revenues(2) | 46,608 | 35,842 | ||
| Total cash costs for equivalent silver(1) | 51,519 | 71,426 | ||
| Silver ounces sold | 4,271,991 | 4,877,460 | ||
| Equivalent silver ounces sold(3) | 5,816,940 | 6,390,310 | ||
| Cash cost per silver ounce sold ($/ounce) | 1.15 | 7.30 | ||
| Cash cost per equivalent silver ounce sold ($/ounce) | 8.86 | 11.18 | ||
(1) As Q3 2023 represented the first full quarter of commercial production, information presented for total cash costs and total cash costs for equivalent silver together with their associated per unit values are not directly comparable.
(2) By-product revenues relate to the sale of other metals namely gold, lead, and zinc.
(3) Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2024 realized prices:
The following table provides a reconciliation of AISC of Juanicipio to production cost and various operating expenses of Juanicipio on a
| Three months ended June 30, | ||||
| (in thousands of US$, except per ounce amounts) | 2024 | 2023 | ||
| Total cash costs | 4,911 | 35,584 | ||
| General and administrative expenses | 4,283 | 4,159 | ||
| Exploration | 2,235 | 1,928 | ||
| Sustaining capital expenditures | 7,329 | 6,535 | ||
| Sustaining lease payments | 349 | 199 | ||
| Interest on lease liabilities | (17 | ) | (11 | ) |
| Accretion on closure and reclamation costs | 72 | 62 | ||
| All-in sustaining costs(1) | 19,161 | 48,456 | ||
| Add back by-product revenues(2) | 46,608 | 35,842 | ||
| All-in sustaining costs for equivalent silver(1) | 65,768 | 84,298 | ||
| Silver ounces sold | 4,271,991 | 4,877,460 | ||
| Equivalent silver ounces sold(3) | 5,816,940 | 6,390,310 | ||
| All-in sustaining cost per silver ounce sold ($/ounce) | 4.49 | 9.93 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/ounce) | 11.31 | 13.19 | ||
| Average realized price per silver ounce sold ($/ounce) | 30.17 | 23.69 | ||
| All-in sustaining margin ($/ounce) | 25.68 | 13.76 | ||
| All-in sustaining margin ($/equivalent ounce) | 18.86 | 10.50 | ||
| All-in sustaining margin | 109,715 | 67,099 | ||
(1) As Q3 2023 represented the first full quarter of commercial production, information presented for all-in sustaining costs, all-in sustaining costs for equivalent silver, and all-in sustaining margin together with their associated per unit values are not directly comparable.
(2) By-product revenues relate to the sale of other metals namely gold, lead, and zinc.
(3) Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2024 realized prices:
For the three months ended June 30, 2024 the Company incurred corporate G&A expenses of
The Company’s attributable silver ounces sold and equivalent silver ounces sold for the three months ended June 30, 2024 were 1,879,676 and 2,559,454 respectively (three months ended June 30, 2023: 2,146,082 and 2,811,736 respectively), resulting in additional all‐in sustaining cost for the Company of
The following table provides a reconciliation of EBITDA and Adjusted EBITDA attributable to the Company based on its economic interest in Juanicipio to net income (the nearest IFRS measure) of the Company per the Q2 2024 Financial Statements. All adjustments are shown net of estimated income tax.
| Three months ended June 30, | ||||
| (in thousands of US$) | 2024 | 2023 | ||
| Net income after tax | 21,614 | 19,390 | ||
| Add back (deduct): | ||||
| Taxes | 1,296 | 798 | ||
| Depreciation and depletion | 149 | 58 | ||
| Finance costs (income and expenses) | (1,504 | ) | (1,042 | ) |
| EBITDA(1) | 21,555 | 19,204 | ||
| Add back (deduct): | ||||
| Adjustment for non-cash share-based compensation | 1,053 | 1,012 | ||
| Share of net earnings related to Juanicipio | (25,123 | ) | (22,419 | ) |
| MAG attributable interest in Junicipio Adjusted EBITDA | 52,868 | 32,859 | ||
| Adjusted EBITDA(1) | 50,353 | 30,656 | ||
(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 June 30, | ||||
| (in thousands of US$) | 2024 | 2023 | ||
| Cash flow from operating activities | 92,766 | 33,557 | ||
| Less: | ||||
| Cash flow used in investing activities | (3,780 | ) | (26,125 | ) |
| Sustaining lease payments | (349 | ) | (199 | ) |
| Juanicipio free cash flow(1) | 88,637 | 7,233 | ||
(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, mineral resource estimates and mineralization, 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 mining and 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 expected use of the Credit Facility;
- statements regarding the NCIB and any future purchases to be made thereunder;
- statements regarding the Final Shelf Prospectus;
- 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 Larder Project at the Fernland, Cheminis, Bear, and Twist zones and other regional targets;
- 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 updated Technical Report filed on March 27, 2024; as well as those risks more particularly described under the heading “Risk Factors” in the Company’s Annual Information Form dated March 27, 2024 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
FAQ
What was MAG Silver's net income for Q2 2024?
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What were the operating cash flow and free cash flow for Juanicipio in Q2 2024?
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What were the all-in sustaining costs per silver ounce expected for 2024?
How did the silver head grade in Q2 2024 compare to Q2 2023?
