In an April 2 research note, H.C. Wainwright & Co. analyst Heiko Ihle reported that MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT) continues to advance its joint venture Juanicipio project with partner Fresnillo Plc (FRES:LSE).
Progress is being made with respect to development at the asset in Mexico's Fresnillo Trend. To date, more than 18.5 kilometers of underground development have been finished. Current work involves extending three internal spiral footwall ramps along the entire strike length of the Valdecañas vein system, building the underground crushing chamber, installing the conveyor ramp between the mine and mill site and integrating other underground infrastructure.
The production start date for Juanicipio is sometime in H2/20. Yet before production can begin, MAG and Fresnillo must approve the feasibility study. Both companies are currently reviewing it. "We believe both boards should approve the document," commented Ihle.
Also taking place at the Juanicipio property is continued exploration. "With five drill rigs currently located at the site with another rig expected to begin turning underground, developing and exploring the Juanicipio property remains a top priority for the company," Ihle pointed out.
As for MAG Silver's 2018 financial results, Ihle relayed that the company posted a loss of $5.8 million, or $0.07 per share, which compares to last year's loss of $6.5 million, or $0.08 per share. The difference was due to an uptick in interest income, as well as a $4.3 million gain, net of costs, from the sale of some assets. That number in 2017 totaled $1.8 million.
Cash and cash equivalents at year-end 2018 were $130.2 million, lower than $160.4 million at year-end 2017, due to no term deposits having been redeemed during the year.
H.C. Wainwright has a Buy rating and a US$16.50 per share target price on MAG Silver, whose stock is trading now at around US$10.40 per share.
Read what other experts are saying about:
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: MAG Silver. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from H.C. Wainwright & Co., MAG Silver Corp., Company Update, Apr. 2, 2019
I, Heiko F. Ihle, CFA and Tyler Bisset, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of MAG Silver Corp. (including, without limitation, any option, right, warrant, future, long or short position).
As of March 31, 2019, neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of MAG Silver Corp.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from MAG Silver Corp. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in MAG Silver Corp. as of the date of this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.
