MAG Silver Reports First Quarter Financial Results

Corporate Highlights - MAG Silver Corp. appointed John Armstrong to the Board effective January 31, 2025, as part of its Board refreshment strategy [3] - The company reported record net income of $28,744 (or $0.28 per share) for Q1 2025, driven by strong performance from the Juanicipio project [5][28] - MAG declared its second dividend of $0.20 per share, payable on May 28, 2025, reflecting a cash flow linked component from Juanicipio [5] Financial Performance - For Q1 2025, MAG reported sales of $175,235, a significant increase from $123,689 in Q1 2024, attributed to a 37% rise in realized metal prices [20] - Gross profit for Q1 2025 was $120,990, compared to $64,864 in Q1 2024, indicating improved profitability [20] - The company’s cash operating margin increased from 70% to 81% due to favorable commodity price movements and reduced operating costs [22] Operational Highlights - Juanicipio processed 337,017 tonnes of ore with a silver head grade of 430 g/t, achieving a record silver recovery of 96% [5][12][13] - The project generated strong operating cash flow of $86,399 and free cash flow of $77,438 during Q1 2025 [41] - Total cash costs for Juanicipio were reported as negative $3,641, with a cash cost per silver ounce sold of negative $0.91 [15][17] Exploration Activities - In Q1 2025, MAG conducted 6,992 metres of underground infill drilling at Juanicipio, with plans for further drilling in 2025 [6] - The Deer Trail Project in Utah completed six pilot holes totaling 1,783 metres, aimed at assessing feasibility for future drilling [6] - The Larder Project in Ontario is set to begin a 25,000 metres drill campaign in Q2 2025, following a detailed geological synthesis of data collected in 2024 [6] Production Metrics - Juanicipio achieved silver production of 4.5 million ounces and equivalent silver production of 6.5 million ounces in Q1 2025 [5] - The total material mined increased by 7% to 347,467 tonnes compared to Q1 2024, reflecting operational ramp-up [11] - The all-in sustaining cost per silver ounce sold decreased to $2.04 in Q1 2025 from $6.11 in Q1 2024, driven by lower costs and higher by-product revenues [18]