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 $000s
of United States dollars (“US$”) unless otherwise specified (C$
refers to thousands of Canadian dollars).
KEY HIGHLIGHTS FOR Q2 2024 (on a 100%
basis unless otherwise noted)
- 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.
________________________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: $23/oz silver,
$1,950/oz gold, $0.95/lb lead and $1.15/lb 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: $30.17/oz
silver, $2,379.85/oz gold, $0.99/lb lead and $1.33/lb zinc.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 100% basis, unless otherwise noted.
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 (100%
basis) |
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: $23/oz silver,
$1,950/oz gold, $0.95/lb lead and $1.15/lb zinc (2023: $21.85/oz
silver, $1,775/oz gold, $0.915/lb lead and $1.30/lb
zinc).(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: $30.17/oz silver, $2,379.85/oz gold, $0.99/lb
lead and $1.33/lb zinc (three months ended June 30, 2023 realized
prices: $23.69/oz silver, $1,957.47/oz gold, $0.94/lb lead and
$1.07/lb zinc).
During the three months ended June 30, 2024, a
total of 349,460 tonnes of ore were mined. This represents an
increase of 35% over Q2 2023. Increases in mined tonnages at
Juanicipio have been driven by the operational ramp-up of the mine
towards steady mining and milling targets.
During the three months ended June 30, 2024, a
total of 336,592 tonnes of ore were processed through the
Juanicipio plant; no ore was processed at the nearby Fresnillo and
Saucito processing plants (100% owned by Fresnillo). The 11%
decrease over Q2 2023 was mainly attributable to Juanicipio
capitalizing on available milling capacity at the nearby Fresnillo
and Saucito plants (100% owned by Fresnillo) while undergoing
operational ramp-up and processing facility commissioning in the
first half of 2023.
The silver head grade and equivalent silver head
grade for the ore processed in the three months ended June 30, 2024
was 498 g/t and 746 g/t, respectively (three months ended June 30,
2023: 498 g/t and 708 g/t, respectively). Head grades in Q2 2024
were slightly higher than Q2 2023 (5% on a silver equivalent basis,
with silver head grade being consistent), due to low-grade
commissioning stockpiles being processed through the Juanicipio
plant in the first half of 2023. Silver metallurgical recovery
during the three months ending June 30, 2024 was 92% (three months
ending June 30, 2023: 87%) reflecting the commencement of
commercial pyrite production during Q2 2024 delivering incremental
silver and gold recovery as well as ongoing optimizations in the
processing plant.
The following table provides a summary of the total
cash costs and all-in sustaining costs (“AISC”)
of Juanicipio for the three months ended June
30, 2024, and 2023.
|
|
|
Key mine performance data of Juanicipio (100%
basis) |
Three months ended |
June 30, |
|
June
30, |
|
2024 |
|
2023 |
|
|
|
|
Total cash costs(1) |
4,911 |
|
35,584 |
|
Cash cost per silver ounce sold ($/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: $30.17/oz silver, $2,379.85/oz gold, $0.99/lb
lead and $1.33/lb zinc (three months ended June 30, 2023 realized
prices: $23.69/oz silver, $1,957.47/oz gold, $0.94/lb lead and
$1.07/lb zinc).
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 (100% basis) |
53,857 |
|
46,065 |
|
MAG’s 44% portion of net income |
23,697 |
|
20,268 |
|
Interest on Juanicipio loans - MAG's 44% |
1,426 |
|
2,150 |
|
MAG’s 44% equity income |
25,123 |
|
22,418 |
|
Sales increased by $32,304 during the three
months ended June 30, 2024, mainly due to 25% higher realized metal
prices and $8,217 lower treatment, refining and toll milling costs
driven mainly by no toll milling at the Saucito and Fresnillo
processing facilities during Q2 2024 vs toll milling in Q2 2023 –
as explained in ‘Juanicipio Results – Operating Performance’
section above, offset by 5% lower metal volumes.
Production costs decreased by $14,705 to
Juanicipio depleting higher-cost, lower-grade commissioning
stockpiles during operational ramp-up and processing facility
commissioning in the first half of 2023.
Depreciation increased by $5,056 as the
Juanicipio mill achieved commercial production and commenced
depreciating the processing facility and associated equipment in
June 2023.
Cash operating margin increased from 60% to 76%,
mainly due to reduced operating costs as well as positive commodity
prices augmented by operational leverage and no processing at the
nearby Fresnillo and Saucito processing facilities.
Other expenses decreased by $790 mainly as a
result of higher exchange gains ($664) and lower interest expense
($1,645) as Juanicipio reduced its outstanding shareholder loans
balance by $173,339 ($156,859 loan repayments and $16,480 converted
to equity) over the course of September 2023 to June 2024, offset
by higher extraordinary mining and other duties ($1,396) which were
impacted by the commencement of pyrite production during Q2
2024.
Taxes increased by $34,951 mainly due to
non-cash deferred tax charges on fixed assets driven by a weakening
in the Mexican peso versus the US dollar, as well as higher taxable
profits generated during Q2 2024.Ore Processed at
Juanicipio Plant (100% basis)
Three Months Ended June 30, 2024 (336,592 tonnes
processed) |
Three Months Ended June 30, 2023
Amount$ |
|
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
$96,460 (December 31, 2023: $67,262) including cash of $97,337
(December 31, 2023: $68,707) and no long-term debt. As well, as at
June 30, 2024, Juanicipio had working capital of $129,111 including
cash of $51,422 (MAG’s attributable share is 44%).
The Company’s net income for the three months
ended June 30, 2024 amounted to $21,614 (June 30, 2023: $19,390) or
$0.21/share (June 30, 2023: $0.19/share). MAG recorded its 44%
income from equity accounted investment in Juanicipio of $25,123
(March 31, 2023: $22,419) which included MAG’s 44% share of net
income from operations as well as loan interest earned on loans
advanced to Juanicipio (see above for a discussion of MAG’s share
of income from its equity accounted investment in Juanicipio).
|
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 100% basis (the nearest IFRS measure) as presented
in the notes to the Q2 2024 Financial Statements.
|
|
|
|
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: $30.17/oz silver,
$2,379.85/oz gold, $0.99/lb lead and $1.33/lb zinc (three months
ended June 30, 2023 realized prices: $23.69/oz silver, $1,957.47/oz
gold, $0.94/lb lead and $1.07/lb zinc).
The following table provides a reconciliation of
AISC of Juanicipio to production cost and various operating
expenses of Juanicipio on a 100% basis (the nearest IFRS measure),
as presented in the notes to the Q2 2024 Financial
Statements.
|
|
|
|
Three months ended June 30, |
(in thousands of US$, 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: $30.17/oz silver, $2,379.85/oz gold, $0.99/lb
lead and $1.33/lb zinc (three months ended June 30, 2023 realized
prices: $23.69/oz silver, $1,957.47/oz gold, $0.94/lb lead and
$1.07/lb).
For the three months ended June 30, 2024 the
Company incurred corporate G&A expenses of $3,473 (three months
ended June 30, 2023: $3,175), which exclude depreciation
expense.
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
$1.85/oz and $1.36/oz respectively (three months ended June 30,
2023: $1.48/oz and $1.13/oz respectively), in addition to
Juanicipio’s all-in-sustaining costs presented in the above
table.
The following table provides a reconciliation of
EBITDA and Adjusted EBITDA attributable to the Company based on its
economic interest in Juanicipio to net income (the nearest IFRS
measure) of the Company per the Q2 2024 Financial Statements. All
adjustments are shown net of estimated income tax.
|
|
|
|
Three months ended June 30, |
(in thousands of US$) |
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 100% basis (the nearest
IFRS measure), as presented in the notes to the Q2 2024 Financial
Statements.
|
|
|
|
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
(44%) joint venture interest in the 4,000 tonnes per day Juanicipio
Mine, operated by Fresnillo plc (56%). The mine is located in the
Fresnillo Silver Trend in Mexico, the world's premier silver mining
camp, where in addition to underground mine production and
processing of high-grade mineralised material, an expanded
exploration program is in place targeting multiple highly
prospective targets. MAG is also executing multi-phase exploration
programs at the 100% earn-in Deer Trail Project in Utah and the
100% owned Larder Project, located in the historically prolific
Abitibi region of Canada.
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
For further information on behalf of MAG Silver Corp.,
please contact Fausto Di Trapani, Chief Financial Officer.
Phone: (604) 630-1399
Toll Free: (866) 630-1399
Email: info@magsilver.com
MAG Silver (TSX:MAG)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
MAG Silver (TSX:MAG)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024