MAG Silver (MAG) AI Stock Analysis

• Market Cap: C$3.02B
• Dividend Yield: 11.51%
• Average Volume (3M): 415.35K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.91
• Revenue Growth: N/A
• EPS Growth: 61.66%
• Country: CA
• Employees: 11
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Silver
• EPS (TTM): 0.38
• Shares Outstanding: 103,463,540
• 10 Day Avg. Volume: 394,516
• 30 Day Avg. Volume: 415,351
• PEG Ratio: 9.50
• Price to Book (P/B): 4.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -285.51
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.37K
• Enterprise Value/Ebitda: 4.42
• 1Y Price Target: C$28.22
• Price Target Upside: -3.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 57 Neutral
• Price Target: ―

MAG Silver's overall score reflects a balance of strong corporate events and reasonable valuation against weak financial performance and mixed 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

Acquisition

MAG shareholders are to receive total consideration of about $2.1B, or $20.54 per MAG share, offering shareholders an immediate premium and the opportunity to participate in a larger, more diversified, and growth-oriented producer.

Dividend Policy

MAG Silver has implemented a fixed quarterly dividend of $0.02 per share, with an additional variable component linked to cash flow and silver pricing.

Operational Performance

Revenue from Juanicipio grew 42% compared to the previous year, while the cost of sales decreased, indicating a significant margin improvement.

Negative Factors

Capital Expenditure

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

Potential Risks

Potential risks include commodity price risk, operating and technical risks, political risk, and JV-related risks.

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 primarily generates revenue through its interest in the Juanicipio Project, which is a joint venture with Fresnillo plc. The company earns money by selling silver, gold, and other by-products extracted from the project. As the Juanicipio Project advances from development to production, MAG Silver's revenue model is expected to shift from capital investment and asset development to operational revenue from metal sales. The partnership with Fresnillo plc, which is a significant player in the silver mining industry, provides MAG Silver with operational expertise and enhances its ability to efficiently bring the project to full production. Additionally, fluctuations in global silver and gold prices, as well as operational efficiencies, are key factors that influence the company's earnings.

MAG Silver Financial Statement Overview

Summary

MAG Silver's financials indicate strong balance sheet stability but significant concerns regarding income generation and cash flow sustainability. While there is a positive net income in the TTM period, the lack of revenue and consistent negative cash flows from operations pose risks.

Income Statement

The company has not generated any revenue across the analyzed periods, which is a significant concern for profitability. Notably, the TTM period shows a positive net income, unlike previous years. However, the absence of revenue and negative gross profit consistently raise concerns about sustainability.

Balance Sheet

The company's balance sheet shows solid equity with a high equity ratio and minimal debt, indicating financial stability. The debt-to-equity ratio is very low due to negligible debt levels. The return on equity is positive for the TTM period, indicating a recent improvement in profitability relative to equity.

Cash Flow

The cash flow statement reveals issues with negative free cash flow and operating cash flow. Despite this, the company has managed to increase cash and equivalents significantly in the TTM period, primarily due to positive investing cash flow and financing activities. However, the negative operating cash flow to net income ratio raises concerns about cash generation from operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-692.00K	0.00	0.00	0.00	-146.00K	-121.00K
	EBIT
91.32M	77.44M	-14.33M	17.75M	-11.52M	-8.31M
	EBITDA
98.50M	-14.77M	-13.98M	-1.57M	-11.38M	-8.42M
	Net Income Common Stockholders
91.63M	77.78M	48.66M	17.64M	6.03M	-7.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
156.40M	162.35M	68.71M	29.95M	56.75M	94.01M
	Total Assets
642.67M	611.07M	520.53M	407.83M	372.37M	323.08M
	Total Debt
2.21M	2.24M	154.00K	261.00K	385.00K	476.00K
	Net Debt
-154.19M	-160.10M	-68.55M	-29.69M	-56.36M	-93.53M
	Total Liabilities
39.22M	19.74M	13.77M	6.13M	4.85M	6.41M
	Stockholders Equity
603.46M	591.33M	506.76M	401.70M	367.52M	316.67M
Cash Flow		Free Cash Flow
-6.20M	-9.97M	-8.96M	-8.75M	-6.73M	-6.29M
	Operating Cash Flow
-5.99M	-6.00M	-8.95M	-8.72M	-6.72M	-6.21M
	Investing Cash Flow
84.40M	97.09M	-7.24M	-18.89M	-74.94M	-65.31M
	Financing Cash Flow
3.19M	2.37M	54.95M	928.00K	44.14M	92.43M

MAG Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MAG, the sentiment is Positive. The current price of 29.17 is above the 20-day moving average (MA) of 27.10, above the 50-day MA of 23.62, and above the 200-day MA of 21.62, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 76.79 is Negative, neither overbought nor oversold. The STOCH value of 80.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MAG.

MAG Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAAS	77 Outperform	$14.19B	32.29	6.56%	1.38%	22.18%	―
WPM	75 Outperform	$55.28B	63.80	8.51%	0.69%	37.40%	8.55%
AGI	74 Outperform	$15.75B	43.49	7.85%	0.36%	37.83%	24.13%
EDR	61 Neutral	$1.97B	―	-14.41%	―	4.45%	-3193.40%
MAG	57 Neutral	C$3.02B	23.55	16.27%	11.51%	―	61.66%
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%

MAG Silver Corporate Events

MAG Silver Reports Record-Breaking Q1 2025 Production at Juanicipio

MAG Silver Corp. reported exceptional first quarter 2025 production results from the Juanicipio Mine, highlighting record-breaking silver recovery and robust output across all metals. The mine maintained steady milling performance and achieved a high silver head grade, reflecting the quality of the deposit. The company is focused on optimizing production and advancing key capital investments, including tailings dam expansion and underground infrastructure development, to sustain and enhance output. This positions MAG Silver well to meet its 2025 production guidance and continue delivering strong returns for shareholders.

Spark’s Take on TSE:MAG Stock

According to Spark, TipRanks’ AI Analyst, TSE:MAG is a Neutral.

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.

To see Spark’s full report on TSE:MAG stock, click here.

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.