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MAG Silver (TSE:MAG)
:MAG

MAG Silver (MAG) AI Stock Analysis

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MAG Silver

(NYSE MKT:MAG)

Rating:57Neutral
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 (MAG) vs. iShares MSCI Canada ETF (EWC)

MAG Silver Business Overview & Revenue Model

Company DescriptionMAG 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 MoneyMAG 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
20
Very Negative
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
75
Positive
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
40
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-692.00K0.000.000.00-146.00K-121.00K
EBIT
91.32M77.44M-14.33M17.75M-11.52M-8.31M
EBITDA
98.50M-14.77M-13.98M-1.57M-11.38M-8.42M
Net Income Common Stockholders
91.63M77.78M48.66M17.64M6.03M-7.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
156.40M162.35M68.71M29.95M56.75M94.01M
Total Assets
642.67M611.07M520.53M407.83M372.37M323.08M
Total Debt
2.21M2.24M154.00K261.00K385.00K476.00K
Net Debt
-154.19M-160.10M-68.55M-29.69M-56.36M-93.53M
Total Liabilities
39.22M19.74M13.77M6.13M4.85M6.41M
Stockholders Equity
603.46M591.33M506.76M401.70M367.52M316.67M
Cash FlowFree 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
84.40M97.09M-7.24M-18.89M-74.94M-65.31M
Financing Cash Flow
3.19M2.37M54.95M928.00K44.14M92.43M

MAG Silver Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.17
Price Trends
50DMA
23.62
Positive
100DMA
22.85
Positive
200DMA
21.62
Positive
Market Momentum
MACD
1.61
Negative
RSI
76.79
Negative
STOCH
80.64
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$14.19B32.296.56%1.38%22.18%
TSWPM
75
Outperform
$55.28B63.808.51%0.69%37.40%8.55%
TSAGI
74
Outperform
$15.75B43.497.85%0.36%37.83%24.13%
TSEDR
61
Neutral
$1.97B-14.41%4.45%-3193.40%
TSMAG
57
Neutral
C$3.02B23.5516.27%11.51%61.66%
51
Neutral
$2.04B-1.23-21.09%3.96%2.90%-30.45%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MAG
MAG Silver
29.13
12.91
79.62%
TSE:AGI
Alamos Gold
37.42
16.51
78.92%
TSE:WPM
Wheaton Precious Metals
124.57
52.89
73.79%
TSE:PAAS
Pan American Silver
39.42
12.98
49.07%
TSE:EDR
Endeavour Silver
6.55
1.54
30.74%

MAG Silver Corporate Events

Business Operations and StrategyFinancial Disclosures
MAG Silver Reports Record-Breaking Q1 2025 Production at Juanicipio
Positive
Apr 23, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
MAG Silver Corp. Reports Robust 2024 Financial Results and Announces Inaugural Dividend
Positive
Mar 24, 2025

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.

DividendsBusiness Operations and Strategy
MAG Silver Corp. Introduces Dividend Policy and Inaugural Dividend
Positive
Mar 24, 2025

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.

Business Operations and Strategy
MAG Silver Expands Exploration at Larder and Deer Trail Projects
Positive
Feb 24, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.