MAG Silver (MAG) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 262.02K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.86
• Revenue Growth: N/A
• EPS Growth: 61.66%
• Country: CA
• Employees: 11
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Silver
• EPS (TTM): 1.03
• Shares Outstanding: 103,449,740
• 10 Day Avg. Volume: 339,429
• 30 Day Avg. Volume: 262,020
• PEG Ratio: 0.31
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -215.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$28.37
• Price Target Upside: 43.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

MAG Silver's overall score reflects a balance of strong corporate events and reasonable valuation against weak financial performance and negative technical indicators. While the company's stability and growth initiatives are promising, significant risks remain due to poor income generation and negative cash flows.

Positive Factors

Dividend Policy

MAG Silver has implemented a fixed quarterly dividend and a variable component linked to cash flow, providing investors with direct benefits from the company's ongoing profitability.

Exploration Success

Drilling at the Deer Trail Mine Corridor intersected a new high-grade silver-lead-zinc extension, showcasing valuable mineralization.

Operational Performance

Juanicipio mine reported a significant year-over-year revenue increase driven by higher commodity prices, reflecting strong operational performance.

Negative Factors

Capital Expenditure

Sustaining capex guidance of $70-80 million exceeded the forecast.

Cost Management

Sustaining capex guidance of $70-80M exceeded our forecast.

Strategic Challenges

The firm's multi-year growth strategy hinges upon the success of either Larder or Deer Trail, even as Juanicipio is viewed as a world-class long-term asset.

MAG Silver Business Overview & Revenue Model

Company Description

MAG Silver Corp. engages in the exploration and development of precious metal mining properties. The company explores for silver, gold, lead, and zinc deposits. It primarily holds 44% interest in the Juanicipio project located in the Fresnillo District, Zacatecas State, Mexico. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

MAG Silver makes money primarily through its interest in the Juanicipio project, which is a joint venture with Fresnillo plc. Revenue is generated from the sale of silver, gold, and other by-products extracted from this mining operation. As the project advances toward full-scale production, MAG Silver's earnings are expected to increase with the rise in output and resource extraction efficiency. Moreover, the company may also derive income from exploration activities through strategic partnerships or joint ventures, though its primary revenue stream remains tied to the production and sale of precious metals from its existing mining assets.

MAG Silver Financial Statement Overview

Summary

MAG Silver shows a strong equity position with minimal debt, indicating financial stability. However, the lack of revenue and persistent negative cash flows are significant concerns, suggesting challenges in operational efficiency and sustainability in generating positive cash flow.

Income Statement

The company consistently reports zero revenue, resulting in negative or non-existent profitability metrics. Despite a net income improvement in the TTM, the absence of revenue is a major concern for income sustainability.

Balance Sheet

The company maintains a strong equity base with a very low level of debt, resulting in a solid equity ratio. The balance sheet reflects financial stability with minimal leverage.

Cash Flow

Persistent negative free cash flow indicates poor cash generation relative to its net income. Operating cash flow remains negative, which raises concerns about the company's cash management and sustainability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-545.00K	0.00	0.00	-146.00K	-121.00K	-106.00K
	EBIT
76.02M	-14.33M	17.75M	-11.52M	-9.26M	-8.95M
	EBITDA
39.88M	-13.98M	-1.57M	-11.38M	-8.42M	-8.17M
	Net Income Common Stockholders
74.50M	48.66M	17.64M	6.03M	-7.10M	-4.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.18M	68.71M	29.95M	56.75M	94.01M	72.36M
	Total Assets
217.56M	520.53M	407.83M	372.37M	323.08M	218.81M
	Total Debt
0.00	154.00K	261.00K	385.00K	476.00K	541.00K
	Net Debt
-130.18M	-68.55M	-29.69M	-56.36M	-93.53M	-71.82M
	Total Liabilities
3.68M	13.77M	6.13M	4.85M	6.41M	3.56M
	Stockholders Equity
213.88M	506.76M	401.70M	367.52M	316.67M	215.25M
Cash Flow		Free Cash Flow
-13.25M	-8.96M	-8.75M	-6.73M	-6.29M	-3.56M
	Operating Cash Flow
-9.51M	-8.95M	-8.72M	-6.72M	-6.21M	-3.21M
	Investing Cash Flow
62.72M	-7.24M	-18.89M	-74.94M	-65.31M	-57.13M
	Financing Cash Flow
2.43M	54.95M	928.00K	44.14M	92.43M	2.75M

MAG Silver Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MAG, the sentiment is Negative. The current price of 19.76 is below the 20-day moving average (MA) of 21.86, below the 50-day MA of 22.15, and below the 200-day MA of 20.29, indicating a bearish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 31.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MAG.

MAG Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAG	54 Neutral	$2.02B	18.87	14.17%	―	―	61.66%
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%

MAG Silver Corporate Events

MAG Silver Corp. Reports Robust 2024 Financial Results and Announces Inaugural Dividend

MAG Silver Corp. reported strong financial results for 2024, with a net income of $77.8 million driven by the performance of the Juanicipio mine. The company declared its inaugural dividend and achieved significant silver production, enhancing its cash position. The updated technical report on Juanicipio highlights robust economics and increased mineral resources, indicating high potential for future growth. The company is focused on optimizing operations and expanding infrastructure to support continued development and efficiency improvements.

MAG Silver Corp. Introduces Dividend Policy and Inaugural Dividend

MAG Silver Corp. has announced a new dividend policy, including an inaugural dividend, marking a significant milestone for the company. The policy involves a fixed quarterly dividend of $0.02 per share, with additional cash flow-linked dividends when silver prices exceed $20 per ounce. This move reflects MAG’s confidence in its business strength and commitment to shareholder value, particularly through the success of its Juanicipio Mine operations.

MAG Silver Expands Exploration at Larder and Deer Trail Projects

MAG Silver Corp. has announced advancements in its exploration activities at the Larder and Deer Trail projects. At Larder, drilling has extended mineral zones and led to new discoveries, while strategic land acquisition has doubled the project area. The Deer Trail project has seen significant expansion in mineral-rich zones, with plans for further systematic testing in 2025. These developments are aligned with MAG’s strategy to enhance its growth pipeline and shareholder returns.

MAG Silver Strengthens Board with New Appointment

MAG Silver Corp. announced the appointment of John Armstrong to its Board of Directors as part of a planned board refreshment. Armstrong’s extensive expertise in capital markets and his leadership experience are expected to enhance MAG’s strategic priorities and operations, especially given his familiarity with the mining sector and the Juanicipio project.

MAG Silver Announces Retirement of Key Investor Relations Executive

MAG Silver Corp. has announced the retirement of Michael Curlook, a key figure in its Investor Relations team, after twelve years of service. His efforts in shaping the company’s communications strategy have significantly impacted MAG’s growth and market credibility, and his departure marks a notable transition in the company’s investor relations landscape.