MAG Silver Corp. (MAG:TSX; MAG:NYSE American) President and Chief Executive Officer George Paspalas presented on the company at the recent 2025 BMO Capital Markets Global Metals, Mining & Critical Minerals Conference, and BMO Analyst Kevin O'Halloran recapped the main points, in a Feb. 25 research note.
"Mr. Paspalas described MAG Silver as a Tier 1 silver producer from its flagship 44%-owned Juanicipio mine, operated by its joint venture (JV) partner Fresnillo," reported O'Halloran. "Further, the company is focused on advancing high-grade precious metals projects in the Americas, including its Deer Trail and Larder projects."
Return Potential 21%
BMO has an Outperform rating and a CA$27 per share price target on MAG, which is trading now at about CA$22.35 per share, O'Halloran noted.
From this current price, the return to target is 21%.
Projects at a Glance
According to O'Halloran, Paspalas touched on all of MAG's projects.
Regarding Juanicipio, last year the operation exceeded revised guidance by producing a total of 18,600,000 ounces (18.6 Moz) of silver. In Q4/24, silver recoveries rose to 95.4% due to pyrite and gravity concentrate production. Grades continued to be higher than in the mine plan. Additional optimization is being carried out at Juanicipio, 2025 production guidance for which is 14.7−16.7 Moz.
Juanicipio offers exploration upside, too. Near the mine, the Anticipada and Ramal 1 veins provide opportunity as they are not included in the mine plan. Additional opportunity exists beyond the Juanicipio mine throughout the broader Fresnillo Silver District, of which only 10% has been explored. The CEO highlighted this as MAG's core value driver.
Paspalas stated plans for Larder, on the Abitibi Greenstone Belt in Ontario, and for Deer Trail, in Utah, both exploration stage. MAG intends to do more drilling this summer at Larder and is considering partnering on Deer Trail to lower discovery risk. Deer Trail has the potential for large porphyry and carbonate replacement deposits.
Favorable Financial Position
According to MAG's CEO, noted O'Halloran, the company has CA$113 million (CA$113M) in cash. As of Q3/24's end, the Juanicipio joint venture had returned $103M to MAG since commercial production was reached there in June 2023. Juanicipio's free cash flow generation continues to boost MAG's balance sheet.
What to Watch For
O'Halloran reported MAG's potential catalysts, as delineated by Paspalas.
They are strong cash flow generation, exploration successes and possible capital returns to shareholders.
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