The first quarter of 2024 sees solid silver production at Juanicipio, with 4.4 million ounces and 9,927 ounces of gold reported despite a brief maintenance shutdown. Learn more about how these results scale to meet annual production forecasts.
MAG Silver Corp. (MAG:TSX; MAG:NYSE American) announcement a productive first quarter for 2024 at its Juanicipio mine, demonstrating robust operational performance. The mine processed 325,684 metric tonnes of ore, with a notable daily grinding rate of 4,387 tonnes despite a routine maintenance shutdown.
The project also recorded an increase in silver grade to 476 grams per tonne, slightly higher than in previous quarters. These figures demonstrate Juanicipio's operational efficiency and rapid recovery in the event of a maintenance interruption.
Additionally, the mine experienced improvements in metal recovery rates and produced preliminary totals of 4.4 million ounces of silver and 9,927 ounces of gold. These achievements exceeded expectations and highlighted the mine's potential for sustained high-grade production. MAG Silver plans to release detailed financial and operational results on May 14, 2024, highly anticipated by investors and industry analysts.
Why the money?
Money remains an essential element in various industries, with Silverforte.com listing its many uses in various industriesdue to its unrivaled thermal and electrical conductivity.
Its dual role as an industrial and precious metal places it in a unique position to benefit from both economic growth and investment demand. The enduring value of silver is evidenced by continued industrial consumption and investment interest, particularly in areas like photovoltaics and electronics, which are key to the global transition to greener technologies.
“We maintain our Buy rating as we continue to believe MAG is undervalued by the market,” wrote Joe Reagor of Roth Capital Partner.
The silver market has shown resilience in the face of global economic fluctuations, with increasing applications in new technologies bolstering demand.
Optimism about its future was touted in a February report by Michael DiRienzo, executive director of the Silver Institute, tell CNBC“We think silver will have a great year, particularly in terms of demand.” DiRienzo added that he expects silver to reach US$30 an ounce, a 10-year high, according to LSEG data.
As a result, projects like Juanicipio, which maintain high-grade silver production, are crucial to meeting current and future demand. The project's ability to produce impressive production figures reinforces its strategic importance in the silver market and highlights the potential for continued investment and development in high-grade silver assets.
Catalysts
Juanicipio's exceptional performance in the first quarter of 2024 provides an important catalyst for MAG Silver's future growth. The demonstrated ability to maintain high operational standards and exceed production expectations provides a strong foundation for the company to attract further partnerships and strategic financing. These achievements help build investor confidence and position Juanicipio as a major player in the global silver market.
George Paspalas, President and CEO of MAG Silver, expressed confidence in Juanicipio's continued success, citing the mine's strong operational metrics and strategic improvements as key factors in achieving its 2024 goals.
“The strong foundation provided by our recent technical report positions us well for continued long-term success and growth,” Paspalas said, reflecting the company's optimism about its operational capabilities and market position.
Expert opinions
Pi Financial Chris Thompson expressed optimism in January regarding Mag Silver's latest ventures, writing: “We remain impressed with Juanicipio's operational performance, which has delivered two consecutive quarters exceeding/meeting our silver equivalent (Ag eq) production expectations,” Thompson wrote. “Higher than expected head grades for all metals (silver, gold, lead and zinc) are comparable to our expectations for head grades for this year.”
In a Report dated March 28, 2024, wrote analyst Kevin O'Halloran: “With the market now having more visibility into Juanicipio's expected performance…we expect the increased confidence in Juanicipio to translate into strong performance for MAG stock.”
Roth Capital Partner Joe Reagor echoed this sentiment the following day in a March 29 report.stating: “We maintain our Buy rating as we continue to believe that MAG is undervalued by the market. Additionally, we continue to believe that the market is significantly undervaluing the potential for new discoveries on the project.
Ownership and structure of shares
Institutions own 70% of MAG and 30% is retail, according to the company.
Major institutional shareholders include Fresnillo Plc, operator of the Juanicipio project. with 9%, BlackRock Investment Management (UK) Ltd. with 10.8%, Van Eck Associates Corp. with 9%, First Eagle Investment Management LLC with 6.2% and Sprott Asset Management LP with 3%, the company said.
MAG Silver has a market capitalization of US$1.25 billion. It has 102.97 million shares outstanding, according to Reuters. It trades in a 52-week range of US$14.42 to US$8.20.
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Important Disclosures:
- MAG Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of between US$4,000 and US$5,000.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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