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MAG Silver Corp. (MAG - Free Report) reported adjusted earnings per share of 14 cents for first-quarter 2024, which surpassed the Zacks Consensus Estimate of 10 cents. The figure marked a solid improvement of 180% from the earnings of 5 cents per share reported in the year-ago quarter attributed to higher metal volumes and realized metal prices.
The net income was $14.9 million compared with $4.7 million in the first quarter of 2023.
MAG Silver’s principal asset is the Juanicipio Project in Zacatecas, Mexico. The company has a 44% interest in Juanicipio and the remaining 56% stake is with its operator, Fresnillo Plc (FNLPF - Free Report) .
During the first quarter, 325,081 tons of ore were mined at Juanicipio, up 45% year over year. A total of 325,683 tons of ore were processed through the Juanicipio plant, which represents a year-over-year increase of 47%. No ore was processed at the nearby Fresnillo and Saucito processing plants (which are 100% owned by Fresnillo).
Juanicipio achieved silver production and equivalent silver production of 4.5 million ounces and 6.4 million ounces, respectively.
MAG Silver Corporation Price, Consensus and EPS Surprise
Sales were recorded at $124 million, which were 140% higher than the year-ago quarter’s $51 million. This upside was attributed to a 179% surge in metal volumes and a 2% increase in realized metal prices.
Production costs were $37 million compared with $27 million in the year-ago quarter. Costs were higher driven by higher volume and operational ramp-up in mining and processing. Gross profit surged 302% to $65 million owing to higher sales. The gross margin expanded 180 basis points year over year to 56.9%.
Adjusted EBITDA was $32.4 million, higher than $7 million in the first quarter of 2023.
MAG recorded income of $19.2 million from Juanicipio compared with $7.9 million in the prior-year quarter. This included the company’s 44% share of net income from operations as well as loan interest earned on loans advanced to Juanicipio.
Juanicipio generated an operating cash flow of $42.5 million against an inflow of $30 million in the year-ago quarter. Free cash flow was $27.8 million compared with an outflow of $49 million in the first quarter of 2023.
As of Mar 31, 2024, MAG had a working capital of $72.8 million, which included cash of $74.7 million.
MAG Silver expects Juanicipio to produce between 14.3 million and 15.8 million silver ounces in 2024, thus yielding between 13.2 million and 14.6 million payable silver ounces. All-in-sustaining costs are expected between $9.50 and $10.50 per silver ounce sold.
On Mar 22, 2024, MAG Silver, through its Gatling Exploration Inc. subsidiary, acquired full ownership of the Goldstake property (contiguous to its current land holdings) from Goldstake Explorations Inc. and Transpacific Resources Inc.
Price Performance
Shares of MAG Silver have gained 4.1% in the past year compared with the industry’s 29.2% growth.
Image Source: Zacks Investment Research
Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Peer Performances
Avino Silver & Gold Mines Ltd. (ASM - Free Report) reported earnings per share of 2 cents for first-quarter 2024, which marked a 100% improvement from 1 cent reported in the first quarter of 2023 attributed to higher gold prices and lower costs. The Zacks Consensus Estimate was for break-even earnings.
Avino Silver’s revenues rose 26% year over year to $12.4 million owing to higher gold and silver prices. The top line beat the consensus estimate of $11 million. ASM currently sports a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortuna Silver Mines Inc. (FSM - Free Report) reported first-quarter adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 3 cents by a solid margin of 200%. The bottom line also marked an 80% improvement year over year. Results were aided by higher gold sales volume and improved gold prices.
Fortuna Silver’s revenues increased 28% year over year to $225 million on higher gold sales volumes and prices. FSM currently carries a Zacks Rank #2 (Buy).
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MAG Silver (MAG) Q1 Earnings Beat Estimates, Increase Y/Y
MAG Silver Corp. (MAG - Free Report) reported adjusted earnings per share of 14 cents for first-quarter 2024, which surpassed the Zacks Consensus Estimate of 10 cents. The figure marked a solid improvement of 180% from the earnings of 5 cents per share reported in the year-ago quarter attributed to higher metal volumes and realized metal prices.
The net income was $14.9 million compared with $4.7 million in the first quarter of 2023.
MAG Silver’s principal asset is the Juanicipio Project in Zacatecas, Mexico. The company has a 44% interest in Juanicipio and the remaining 56% stake is with its operator, Fresnillo Plc (FNLPF - Free Report) .
During the first quarter, 325,081 tons of ore were mined at Juanicipio, up 45% year over year. A total of 325,683 tons of ore were processed through the Juanicipio plant, which represents a year-over-year increase of 47%. No ore was processed at the nearby Fresnillo and Saucito processing plants (which are 100% owned by Fresnillo).
Juanicipio achieved silver production and equivalent silver production of 4.5 million ounces and 6.4 million ounces, respectively.
MAG Silver Corporation Price, Consensus and EPS Surprise
MAG Silver Corporation price-consensus-eps-surprise-chart | MAG Silver Corporation Quote
Sales were recorded at $124 million, which were 140% higher than the year-ago quarter’s $51 million. This upside was attributed to a 179% surge in metal volumes and a 2% increase in realized metal prices.
Production costs were $37 million compared with $27 million in the year-ago quarter. Costs were higher driven by higher volume and operational ramp-up in mining and processing. Gross profit surged 302% to $65 million owing to higher sales. The gross margin expanded 180 basis points year over year to 56.9%.
Adjusted EBITDA was $32.4 million, higher than $7 million in the first quarter of 2023.
MAG recorded income of $19.2 million from Juanicipio compared with $7.9 million in the prior-year quarter. This included the company’s 44% share of net income from operations as well as loan interest earned on loans advanced to Juanicipio.
Juanicipio generated an operating cash flow of $42.5 million against an inflow of $30 million in the year-ago quarter. Free cash flow was $27.8 million compared with an outflow of $49 million in the first quarter of 2023.
As of Mar 31, 2024, MAG had a working capital of $72.8 million, which included cash of $74.7 million.
MAG Silver expects Juanicipio to produce between 14.3 million and 15.8 million silver ounces in 2024, thus yielding between 13.2 million and 14.6 million payable silver ounces. All-in-sustaining costs are expected between $9.50 and $10.50 per silver ounce sold.
On Mar 22, 2024, MAG Silver, through its Gatling Exploration Inc. subsidiary, acquired full ownership of the Goldstake property (contiguous to its current land holdings) from Goldstake Explorations Inc. and Transpacific Resources Inc.
Price Performance
Shares of MAG Silver have gained 4.1% in the past year compared with the industry’s 29.2% growth.
Image Source: Zacks Investment Research
Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Peer Performances
Avino Silver & Gold Mines Ltd. (ASM - Free Report) reported earnings per share of 2 cents for first-quarter 2024, which marked a 100% improvement from 1 cent reported in the first quarter of 2023 attributed to higher gold prices and lower costs. The Zacks Consensus Estimate was for break-even earnings.
Avino Silver’s revenues rose 26% year over year to $12.4 million owing to higher gold and silver prices. The top line beat the consensus estimate of $11 million. ASM currently sports a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortuna Silver Mines Inc. (FSM - Free Report) reported first-quarter adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 3 cents by a solid margin of 200%. The bottom line also marked an 80% improvement year over year. Results were aided by higher gold sales volume and improved gold prices.
Fortuna Silver’s revenues increased 28% year over year to $225 million on higher gold sales volumes and prices. FSM currently carries a Zacks Rank #2 (Buy).