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MAG Silver (MAG) Provides Details on Juanicipio Project

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MAG Silver Corp. (MAG - Free Report) announced that the operator of the Juanicipio Project, Fresnillo Plc. (FNLPF - Free Report) , confirmed the completion of the final testing of the downstream power distribution and control systems at the project.

Located in Zacatecas, Mexico, Juanicipio Project is a joint venture of MAG and Fresnillo. MAG owns a 44% stake in the project.

The Juanicipio Project's connection to the power grid is a long-awaited achievement for the project. Juanicipio has now been wired into the national electricity grid.

Previously, the state-owned power company, Comisión Federal de Electricidad, requested additional testing to verify compatibility between new and updated substation equipment installed by Fresnillo. This has now been completed as well.

MAG is focusing on collaborating with Fresnillo to maximize value generation from Juanicipio, as they transition into ramp-up and full-scale operations with the aim of making Juanicipio a Tier-1 silver producer.

Fresnillo reported to MAG that the project processed 180,807 tons of mineralized material in the three months ended Sep 30, 2022 at an average head grade of 513 silver grams per ton.

Based on preliminary estimates and before offtake agreement modifications, the total Juanicipio production for the quarter was 2,617,146 silver ounces and 5,422 gold ounces. From the reported figure, MAG is attributable for 44% interest, which is 1,151,544 silver ounces and 2,386 gold ounces.

MAG recorded adjusted earnings per share of 8 cents for third-quarter 2022, missing the Zacks Consensus Estimate of 11 cents. Notably, the company reported a loss per share of 2 cents in the year-ago quarter.

Price Performance

 

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Shares of MAG Silver have gained 0.7% in the past year against the industry’s decline of 18.8%.

Zacks Rank & Stocks to Consider

MAG Silver currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the basic materials space are CalMaine Foods (CALM - Free Report) , and Reliance Steel (RS - Free Report) . While CALM currently flaunts a Zacks Rank #1 (Strong Buy), RS carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CalMaine Foods’ 2022 earnings per share is pegged at $12.28, suggesting 351.5% growth from the year-ago reported figure. Earnings estimates have moved 51.6% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 41.5% in the past year.

The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for the current year, indicating a year-over-year growth rate of 29.5%. The consensus estimate for RS’s current-year earnings has been revised 0.2% upward in the past 60 days. It has a trailing four-quarter average surprise of 13.6% on average. RS has gained 23.7% in a year.

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