MAG Silver (MAG) Q4 2024 earnings summary

Executive summary

• Net income reached $77,779 ($0.75/share), driven by $92,875 equity income from Juanicipio and adjusted EBITDA of $186,734.

• Juanicipio mine processed 1,328,178 tonnes at 468 g/t silver, producing 18.6M oz silver and 26.8M oz equivalent silver.

• Inaugural dividend of $0.18/share declared, totaling $18,604 to shareholders, with ongoing fixed and cash flow-linked dividends planned.

• Cash position increased to $162,347, with total capital return from Juanicipio of $123,776 in 2024.

Financial highlights

• Sales at Juanicipio rose to $627,366 from $442,288 year-over-year, with gross profit up to $382,648 from $201,983.

• Production costs decreased by $18,309, while depreciation increased by $22,722 due to higher asset base and throughput.

• Cash cost per silver ounce sold dropped to $0.88 (from $6.07), and AISC per silver ounce sold to $5.54 (from $10.32).

• Working capital at year-end was $160,113, with no long-term debt.

Outlook and guidance

• 2025 silver production at Juanicipio forecasted at 14.7–16.7M oz, with payable ounces of 13.1–14.9M.

• Cash cost guidance for 2025 is ($1.00) to $1.00/oz silver, AISC $6.00–$8.00/oz, with sustaining capex of $70,000–$80,000.

• Expansionary capex of $22M–$28M planned for underground conveyor system, commissioning in late 2026.