MAG Silver (MAG) Q4 2023 earnings summary

Executive summary

• 2023 net income was $48,659 ($0.47/share), including $65,099 of equity-accounted Juanicipio income; Q4 net income was $15,694 ($0.15/share).

• Adjusted EBITDA was $97,480 for 2023 and $29,787 for Q4.

Financial highlights

• Juanicipio 2023 sales were $442,288, gross profit $201,983 and net income $129,428 on a 100% basis; MAG’s 44% equity income was $65,099.

• 2023 operating income was $50,769, versus $17,751 in 2022; net income was $48,659, versus $17,644.

• Juanicipio generated operating cash flow of $145,064 and free cash flow of $60,814 in 2023; Q4 amounts were $84,038 and $61,993, respectively.

Outlook and guidance

• Juanicipio’s mill reached nameplate capacity of 4,000 tonnes per day in September 2023, with silver recovery consistently above 88%.

• Deer Trail Phase 3 drilling is expected to test a third porphyry hub target next season after early snowfall delayed its start; drilling shifted to Carissa offsets and other targets.

• 2024 exploration work is expected to continue at Juanicipio, Deer Trail and Larder, subject to project timelines, permitting and financing conditions.