VANCOUVER, British Columbia, March 24, 2025 (GLOBE NEWSWIRE) — MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”, or the “Company”) announces the Company’s consolidated financial results for the year ended December 31, 2024. For details of the audited consolidated financial statements of the Company for the year ended December 31, 2024 (“2024 Financial Statements”) and management’s discussion and analysis for the year ended December 31, 2024 (“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 thousands of United States dollars (“US$”) unless otherwise specified (C$ refers to thousands of Canadian dollars).
KEY HIGHLIGHTS (on a 100% basis unless otherwise noted)
- MAG reported net income of $77,779 ($0.75 per share), driven by income from the Juanicipio mine (the “Juanicipio Mine” or “Juanicipio”) (equity accounted) of $92,875, and adjusted EBITDA1 of $186,734.
- In addition to paying an inaugural dividend of $26,400 to MAG, Juanicipio returned a total of $97,376 in interest and loan principal repayments to MAG for a total capital return in 2024 of $123,776, further augmenting MAG’s cash position to $162,347 at the end of the year.
- MAG declared an inaugural fixed dividend of $0.02 per share and an additional cash flow linked dividend of $0.16 per share (approximately 30% of cash received from Juanicipio during the fourth quarter of 2024) for a total dividend of $0.18 per share payable on April 21, 2025 to shareholders on record as of April 4, 2025. This represents an inaugural return of $18,604 to shareholders.
- A total of 1,328,178 tonnes of ore at a silver head grade of 468 grams per tonne (“g/t”) (equivalent silver head grade2 of 712 g/t) was processed at Juanicipio.
- Juanicipio achieved silver production and equivalent silver production2 of 18.6 and 26.8 million ounces, respectively.
- Juanicipio generated strong operating cash flow and free cash flow1 of $356,691 and $292,349, respectively.
- Juanicipio continued to maintain its strong cost performance with cash cost1 of $0.88 per silver ounce sold ($8.67 per equivalent silver ounce sold3) and all-in sustaining cost1 of $5.54 per silver ounce sold ($12.03 per equivalent silver ounce sold3).
- Silver metallurgical recovery at Juanicipio improved to 93%, from 87% in 2023, reflecting the commencement of commercial pyrite and gravimetric concentrate production during the second quarter of 2024, delivering incremental silver and gold recovery, paired with ongoing optimizations in the processing plant.
- MAG published its updated technical report on Juanicipio, titled “Juanicipio Mineral Resource and Mineral Reserves NI 43-101 Technical Report”, on March 27, 2024 (the “Technical Report”) outlining robust economics over an initial 13-year life of mine, generating annual average free cash flow exceeding $130 million (at a $22/oz silver price). Mineral Resources increased by 33% from the 2017 Preliminary Economic Assessment, 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 equivalent silver grade was declared enhancing economic confidence. Extensive exploration upside remains, with only 10% of the property explored, indicating high potential for further discoveries.
- As reported by Fresnillo plc (“Fresnillo”), for 2025, silver production at Juanicipio is forecasted to range between 14.7 million and 16.7 million ounces yielding between 13.1 million and 14.9 million payable ounces. This guidance is based on a throughput rate of 4,000 tonnes per operating day at a head grade range of 380 g/t to 430 g/t silver. Gold head grade is expected to range between 1.2 g/t to 1.4 g/t. Cost guidance reflects ongoing optimization efforts and sustaining capital investments with cash cost4 and all-in sustaining cost4 forecast to range between ($1.00) to $1.00 and $6.00 to $8.00 per silver ounce sold, respectively. Sustaining capital expenditures for 2025 are estimated between $70,000 and $80,000, with key investments including5:
- expansion of the tailings dam to provide approximately six years of deposition capacity; and
- development of underground workshops, electrical and pumping infrastructure, and ventilation systems to support continued mine development and operations.
Expansionary capital expenditures for 2025 are estimated between $22 million and $28 million and are related to the installation of the underground conveyor system which is expected to be commissioned in late 2026 supporting expanded mining rates, delivering enhanced efficiencies and mining cost reductions.
CORPORATE
- On an ongoing basis, the Company intends to declare and pay a fixed quarterly dividend of $0.02 per share after the announcement of the Company’s quarterly financial results. In addition, at average realised silver prices of above $20 per ounce, the Company intends to augment the fixed dividend with a cash flow linked dividend targeted at approximately 30% of cash flows from Juanicipio received by MAG every quarter and linked to net cash metrics as determined by the Company’s board of directors from time to time. MAG’s existing NCIB (as defined below) represents another mechanism through which to prudently return capital to shareholders.
- On May 15, 2024, MAG announced that the 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 in the capital 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. As of March 21, 2025 no shares have been repurchased by the Company.
- On May 31, 2024, MAG filed a final short form base shelf prospectus (the “Final Shelf Prospectus”) and a corresponding registration statement on Form F-10 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.
- 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/reports6.
- On September 20, 2024, MAG and Apollo Silver Corp. (“Apollo”) entered into an exploration, earn-in and option agreement (the “Option”) pursuant to which Apollo has the option to acquire the Cinco de Mayo Project (“Cinco”). In order for Apollo to exercise the Option, Apollo is required to obtain the necessary licensing to access and conduct exploration activities on Cinco, and subsequently complete no less than 20,000 metres of drilling, all within a five-year period, and then finally issue consideration shares equivalent to 19.9% of the then issued and outstanding common shares of Apollo to MAG.
EXPLORATION
- Juanicipio:
- Underground infill drilling at Juanicipio continued through 2024, primarily focused on upgrading mineralization in areas expected to be mined in the near to mid-term. During 2024, 36,216 metres were drilled from underground. Results continue to confirm known vein continuity including grades and thicknesses.
- Surface drilling started in April 2024 and has been focused on the Cañada Honda Structure; 13 holes have been completed since the beginning of the program. During 2024, 19,137 metres were drilled from surface. Initial results show thin mineralized vein intercepts with textures and chemistry consistent with being at a high level and possibly above a productive boiling zone. Two holes have been extended to intercept the Juanicipio vein below the inferred resource with an initial base metal rich intercept extending the Juanicipio vein by 450 metres downdip.
- Deer Trail Project, Utah7:
- During 2024, 5,845 metres have been drilled from surface. Four holes have been completed during the year, three at Carissa and one in the Deer Trail Mine Corridor.
- Large Expansion of the Carissa Skarn Discovery: Step-out drilling has significantly expanded the 200 – 250-metre-thick Carissa skarn discovery to a 400 – 700 metre area where thick sections of copper-silver-zinc mineralization are hosted in hundreds of metres of pervasive marble and skarn altered carbonates, strongly suggestive of the hypothesized large-scale metal source located to the west.
- High-Grade Extension of Deer Trail Mine Corridor: Drilling intersected a new high-grade silver-lead-zinc extension of the Deer Trail mine, highlighted by 2.76 metres grading 151 g/t silver, 0.5 g/t gold, 3.7% lead and 2.5% zinc at 268 metres down hole confirming depth potential.
- New Gold Zone: The “Nodular” Gold Zone first recognized in hole DT23-16 (29.5 metres grading 4.5 g/t gold starting at 202.3 metres, including 8.8 metres grading 9.4 g/t gold) and now documented in over 20 previously drilled holes. Such distal gold zones are a feature commonly observed on the edges of large hydrothermal systems such as Deer Trail.
- Larder Project, Ontario8:
- Surface drilling at Twist, Swansea, Long Conglomerate, Kir Vit, and North Green Carbonate Zone totalled 41,447 metres in 2024.
- Validated Theory: Drilling at the Cadillac-Larder Break has successfully extended the Cheminis and Bear zones to depths of 900 metres (10.2 g/t gold over 6.3 metres) and 1,200 metres (42.1 g/t gold over 1.5 metres), respectively, confirming the theory of increased grade and width with depth.
- New Regional Discoveries: Testing of numerous regional targets included the Timiskaming conglomerate (“Long Conglomerate”), where 3.2 g/t gold over 10.0 metres including 8.2 g/t gold over 1.0 metre was intercepted.
- Strategic Land Acquisition: During 2024, MAG added the highly prospective Goldstake Property, doubling the project’s land area. This acquisition builds on historic high-grade intercepts (though unverified) and is further complemented by new high-grade (up to 32.1 g/t gold) grab and channel samples, fast-tracking the Instant Pond and F Zone prospects to drill-ready status.
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 years ended December 31, 2024 and 2023, unless otherwise noted.
| Key mine performance data of Juanicipio (100% basis) | Year ended | |||
| December 31, | December 31, | |||
| 2024 | 2023 | |||
| Metres developed (m) | 14,661 | 14,864 | ||
| Material mined (t) | 1,342,786 | 1,097,289 | ||
| Material processed (t) | 1,328,178 | 1,268,757 | ||
| Silver head grade (g/t) | 468 | 472 | ||
| Gold head grade (g/t) | 1.25 | 1.27 | ||
| Lead head grade (%) | 1.50 | % | 1.14 | % |
| Zinc head grade (%) | 2.78 | % | 2.05 | % |
| Equivalent silver head grade (g/t) (1) | 712 | 691 | ||
| Silver ounces sold (koz) | 16,590 | 15,318 | ||
| Gold ounces sold (koz) | 33.11 | 31.73 | ||
| Lead pounds sold (klb) | 36,392 | 25,862 | ||
| Zinc pounds sold (klb) | 55,609 | 36,881 | ||
| Equivalent silver ounces sold (koz) (2) | 23,023 | 20,812 | ||
| (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). Year ended December 31, 2024 realized prices: $28.78/oz silver, $2,430.76/oz gold, $0.92/lb lead and $1.28/lb zinc (year ended December 31, 2023 realized prices: $23.66/oz silver, $1,978.07/oz gold, $0.96/lb lead and $1.15/lb zinc). | |
During year ended December 31, 2024, a total of 1,342,786 tonnes of ore were mined. This represents an increase of 22% over 2023. Increases in mined tonnages at Juanicipio have been driven by the operational ramp-up of the mine towards steady state mining and milling targets.
During the year ended December 31, 2024, a total of 1,328,178 tonnes of ore were processed through the Juanicipio plant. The 5% increase over 2023 was mainly attributable to the Juanicipio plant operating at nameplate per operating day during 2024, following commencement of commercial production in June 2023.
The silver head grade and equivalent silver head grade for the ore processed in the year ended December 31, 2024 was 468 g/t and 712 g/t, respectively (year ended December 31, 2023: 472 g/t and 691 g/t, respectively). The higher silver and lower base metal head grades in the year ended December 31, 2023 were the result of processing ore from higher levels of the mine, characterized by elevated silver grade, compared to deeper areas in the year ended December 31, 2024. 2023 head grades were also impacted by the processing of low-grade commissioning stockpiles through the Juanicipio plant as it was ramped up. Silver metallurgical recovery during the year ended December 31, 2024 was 93% (year ended December 31, 2023: 87%, respectively) reflecting the commencement of commercial pyrite and gravimetric concentrate production during Q2 2024 delivering incremental silver and gold recovery paired with ongoing optimizations in the processing plant.
The following table provides a summary of the total cash costs and all-in sustaining costs (“AISC”) of Juanicipio for the years ended December 31, 2024, and 2023.
| Key mine performance data of Juanicipio (100% basis) | Year ended | |||
| December 31, | December 31, | |||
| 2024 | 2023 | |||
| Total cash costs (1) | 14,539 | 93,025 | ||
| Cash cost per silver ounce sold ($/oz) (1) | 0.88 | 6.07 | ||
| Cash cost per equivalent silver ounce sold ($/oz) (1) | 8.67 | 10.72 | ||
| All-in sustaining costs (1) | 91,839 | 158,151 | ||
| All-in sustaining cost per silver ounce sold ($/oz) (1) | 5.54 | 10.32 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/oz) (1) | 12.03 | 13.85 | ||
| (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 2024 MD&A for a detailed reconciliation of these measures to the 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). Year ended December 31, 2024 realized prices: $28.78/oz silver, $2,430.76/oz gold, $0.92/lb lead and $1.28/lb zinc (year ended December 31, 2023 realized prices: $23.66/oz silver, $1,978.07/oz gold, $0.96/lb lead and $1.15/lb zinc). | |
Financial Results
The following table presents excerpts of the financial results of Juanicipio for the years ended December 31, 2024 and 2023.
| Year ended | ||||
| December 31, | December 31, | |||
| 2024 | 2023 | |||
| $ | $ | |||
| Sales | 627,366 | 442,288 | ||
| Cost of sales: | ||||
| Production cost | (153,521 | ) | (171,830 | ) |
| Depreciation and amortization | (91,197 | ) | (68,475 | ) |
| Gross profit | 382,648 | 201,983 | ||
| Consulting and administrative expenses | (14,319 | ) | (18,768 | ) |
| Extraordinary mining and other duties | (10,415 | ) | (4,945 | ) |
| Interest expense | (9,538 | ) | (18,524 | ) |
| Exchange gains (losses) and other | 4,347 | (2,937 | ) | |
| Net income before tax | 352,723 | 156,809 | ||
| Income tax expense | (151,181 | ) | (27,381 | ) |
| Net income (100% basis) | 201,541 | 129,428 | ||
| MAG’s 44% portion of net income | 88,678 | 56,948 | ||
| Interest on Juanicipio loans – MAG’s 44% | 4,197 | 8,150 | ||
| MAG’s 44% equity income | 92,875 | 65,099 | ||
Sales increased by $185,077 during the year ended December 31, 2024, mainly due to 14% higher metal volumes, 19% higher realized metal prices, and $14,919 lower treatment, refining and toll milling costs driven mainly by updated favorable benchmark treatment and refining pricing terms and no toll milling at the Saucito and Fresnillo processing facilities during 2024.
Production costs decreased by $18,309 mainly due to Juanicipio depleting higher-cost, lower-grade commissioning stockpiles during operational ramp-up and processing facility commissioning in 2023 ($22,766), offset by higher mining, milling and G&A costs ($4,457, predominantly volume related) as Juanicipio shifted to nameplate production levels post September 2023.
Depreciation increased by $22,722, impacted by an increased depreciable asset cost base as the Juanicipio mill achieved commercial production and commenced depreciating the processing facility and associated equipment in June 2023. In addition, Juanicipio processed 5% more tonnes in 2024, impacting units of production depreciation.
Cash operating margin (gross profit plus depreciation divided by sales) increased from 61% 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 $15,249 mainly as a result of lower consulting and administrative expenses ($4,449), higher foreign exchange gains and other costs ($7,284) driven mainly by a weakening in the Mexican peso versus the US dollar, and lower interest expense ($8,986) as Juanicipio reduced its outstanding shareholder loans balance by $209,920 over the course of 2024, offset by higher selling and other duties ($5,470) driven by the commencement of commercial pyrite concentrate production in the second quarter of 2024.
Taxes increased by $123,800 mainly due to higher taxable profits generated during 2024, as well as non-cash deferred tax charges on fixed assets driven by a depreciation in the Mexican peso versus the US dollar.
Gross Profit from Ore Processed at Juanicipio Plant (100% basis)
| Year Ended December 31, 2024 (1,328,178 tonnes processed) | Year Ended
December 31, 2023 Amount
$ |
|||||
| Metals Sold | Quantity | Average Price
$ |
Amount
$ |
|||
| Silver | 16,590,111 ounces | 28.78 per oz | 447,480 | 362,457 | ||
| Gold | 33,111 ounces | 2,431 per oz | 80,484 | 62,774 | ||
| Lead | 16,507 tonnes | 0.92 per lb. | 33,581 | 24,746 | ||
| Zinc | 25,224 tonnes | 1.28 per lb. | 71,087 | 42,496 | ||
| Treatment, refining, and other processing costs (2) | (35,266 | ) | (50,185 | ) | ||
| Sales | 627,366 | 442,288 | ||||
| Production cost | (153,521 | ) | (171,830 | ) | ||
| Depreciation and amortization (1) | (91,197 | ) | (68,475 | ) | ||
| Gross Profit | 382,648 | 201,983 | ||||
(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 the year ended December 31, 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 – YEAR ENDED DECEMBER 31, 2024
As at December 31, 2024, MAG had working capital of $160,113 (December 31, 2023: $67,262) including cash of $162,347 (December 31, 2023: $68,707) and no long-term debt. As well, as at December 31, 2024, Juanicipio had working capital of $105,499 including cash of $53,193 (MAG’s attributable share is 44%).
The Company’s net income for the year ended December 31, 2024 amounted to $77,779 (December 31, 2023: $48,659) or $0.75/share (December 31, 2023: $0.47/share). MAG recorded its 44% income from equity accounted investment in Juanicipio of $92,875 (December 31, 2023: $65,099) 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).
| December 31, | December 31, | |||
| 2024 | 2023 | |||
| $ | $ | |||
| Income from equity accounted investment in Juanicipio | 92,875 | 65,099 | ||
| General and administrative expenses | (14,790 | ) | (13,461 | ) |
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