MAG Silver Option Alert: Aug 15 $20 Calls at the Ask: 4000 vs 316 OI; Earnings 3/18 Before Open [est] 

MAG Silver Option Alert: Aug 15 $20 Calls at the Ask: 4000 @ $1.35 vs 316 OI; Earnings 3/18 Before Open [est] Ref=$16.9701

MAG Silver (AMEX:MAG) 주식

MAG Silver

MAG Silver Corp is a Canadian mining company. It is focused on advancing high-grade, district-scale precious metals projects in the Americas. The Company's principal asset is in the Juanicipio Mine located in Zacatecas, Mexico, which achieved commercial production of around 4,000 tonnes per day. The company has also Interest in the Larder project. Also, MAG has an expanded exploration program targeting multiple prospective targets at both Juanicipio and the Deer Trail 100% earn-in project in Utah. The Juanicipio Mine recognizes revenue for silver, gold, lead, and zinc from concentrate sales.

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금값은 온스당 2,300달러를 넘어 사상 최고치를 기록하며 또 한 주를 마감했다. 3월 일자리 보고서가 예상보다 더 뜨거워진 후에도 요는 여전히 높다.금은 이번 주 금리 우려에 대한 일반적인 민감도에서 벗어나 인상적인 회복력을 보였다.

금이 2,300달러를 웃돌며 다시 한 주를 최고치로 마감: 광산 주식은 11개월 최고치

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HC Wainwright &amp; Co. analyst Heiko Ihle reiterates MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) with a Buy and maintains $21 price target.

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HC Wainwright & Co. Reiterates Buy on MAG Silver, Maintains $21 Price Target

Gold surged past $2,790 in Thursday morning trading, setting a new all-time high after eclipsing its late October 2024 peak. Central bank actions and rising demand for safe-haven assets <a href="https://www.benzinga.com/markets">fueled the metal's climb.</a>
Several major central banks have signaled a more dovish stance on inflation in recent hours, leading speculators to anticipate lower borrowing costs ahead—providing further support for gold prices. 
Furthermore, speculation over higher U.S. tariffs is leading to greater demand for gold by central banks, with disruptions affecting trading in London.
<h3 class="wp-block-heading">Fed Holds Steady, While Other Major Central Banks Ease Borrowing Costs</h3>
The Federal Reserve held interest rates steady on Wednesday and refrained from offering clear guidance on future moves. 
Yet, Fed Chair Jerome Powell struck a noticeably less hawkish tone compared to his stance in December.
Powell welcomed the latest inflation readings for January and did not rule out the possibility of rate cuts, stating that weaker labor market conditions or faster-than-expected disinflation could justify easing monetary policy.
Powell further stated that interest rates remain &#8220;meaningfully above neutral,&#8221; suggesting there is room for potential cuts.
&#8220;We remain comfortable with our forecast that the FOMC will deliver two more 25bp cuts in June and December this year and one more in 2026,&#8221; Goldman Sachs economist David Mericle wrote in a note Thursday. 
Market-based expectations continue to point toward two additional Fed rate cuts by the end of 2025, with the first move likely coming in June. 
On Wednesday, the Bank of Canada announced a 25-basis-point rate cut to 3%, citing inflation's broad convergence toward the 2% target. Policymakers also noted the potential negative economic effects of rising U.S. trade tariffs.
The BoC further announced the end of quantitative tightening and plans to restart asset purchases in early March to support liquidity and economic activity. 
On Thursday, <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43336153/us-economy-grows-below-q4-estimates-as-consumer-spending-hits-7-quarter-high">U.S. GDP growth for the fourth quarter of 2024</a> came in at 2.3%, missing the 2.6% consensus estimate. 
The same day, both the <a href="https://www.benzinga.com/government/regulations/25/01/43340971/ecb-cuts-interest-rates-by-25-basis-points-as-economy-cools-lagarde-rejects-bitcoin-as-reserve-asset">European Central Bank</a> and Sweden's Riksbank also announced rate cuts.
<h3 class="wp-block-heading">Gold Miners Rally, Central Banks Rush To Gold In London</h3>
Rising gold prices are fueling a rally among metal miners during Thursday trading.
The widely followed VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) rallied 4.2% reaching levels last seen in early November 2024. Junior miners, as tracked by the VanEck Junior Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDXJ#NYSE">GDXJ</a>), were similarly up by 4.1%. 
In a seminar last week, VanEck portfolio manager Imaru Casanova indicated that central banks are rushing to buy gold. 
"Central banks are emerging as a key demand driver for gold prices," she said. 
As reported by Reuters, gold traders in London are scrambling to borrow bullion from central banks as shipments to the U.S. surge amid speculation of potential import tariffs. 
The Bank of England, which stores gold for central banks, is experiencing delays of up to four weeks for withdrawals—far longer than the usual few days.
The rush is driven by traders hedging risks on COMEX and capitalizing on a price premium between U.S. futures and London spot prices. 
Former Koch Supply &amp; Trading executive Robert Gottlieb told Reuters that the BoE is struggling to handle the increased borrowing requests.
Mining stocks showing a notable surge on Thursday include:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>1-day Return</td>
</tr>
<tr>
<td>Endeavour Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXK#NYSE">EXK</a>)</td>
<td>8.18%</td>
</tr>
<tr>
<td>MAG Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAG#NYSE">MAG</a>)</td>
<td>7.67%</td>
</tr>
<tr>
<td>Coeur Mining, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CDE#NYSE">CDE</a>)</td>
<td>7.15%</td>
</tr>
<tr>
<td>Fortuna Mining Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSM#NYSE">FSM</a>)</td>
<td>6.96%</td>
</tr>
<tr>
<td>SilverCrest Metals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SILV#NYSE">SILV</a>)</td>
<td>6.72%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:20 p.m. ET</figcaption></figure>
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MAG Silver shares are trading higher after HC Wainwright & Co raised its price target on the stock from $20 to $21.

HC Wainwright &amp; Co. analyst Heiko Ihle maintains MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) with a Buy and raises the price target from $20 to $21.

HC Wainwright & Co. Maintains Buy on MAG Silver, Raises Price Target to $21

MAG Silver Reports 333,612 Tonnes Of Ore Processed From Juanicipio (56% / 44% Fresnillo Plc And MAG, Respectively) In Q4, Consistent With Q3

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Shares of silver companies are trading lower amid a drop in the price of the commodity.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
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<li>Piper Sandler boosted the price target for Shopify Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>) from $67 to $94. Piper Sandler analyst Clarke Jeffries maintained a Neutral rating. Shopify shares closed at $108.92 on Tuesday. <a href="https://www.benzinga.com/quote/SHOP/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Needham cut the price target for Heron Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HRTX#NASDAQ">HRTX</a>) from $5 to $4. Needham analyst Serge Belanger maintained a Buy rating. Heron Therapeutics shares closed at $1.28 on Tuesday. <a href="https://www.benzinga.com/quote/HRTX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Goldman Sachs raised Live Nation Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>) price target from $132 to $148. Goldman Sachs analyst Stephen Laszczyk maintained a Buy rating. Live Nation shares settled at $129.67 on Tuesday. <a href="https://www.benzinga.com/quote/LYV/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Piper Sandler raised Shift4 Payments, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FOUR#NYSE">FOUR</a>) price target from $93 to $120. Piper Sandler analyst Clarke Jeffries maintained an Overweight rating. Shift4 Payments shares closed at $99.12 on Tuesday. <a href="https://www.benzinga.com/quote/FOUR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Phillip Securities boosted Spotify Technology S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) price target from $420 to $485. Phillip Securities analyst Jonathan Wolleben downgraded the stock from Buy to Accumulate. Spotify shares closed at $419.39 on Tuesday. <a href="https://www.benzinga.com/quote/SPOT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Redburn Atlantic cut Starbucks Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) price target from $84 to $77. Redburn Atlantic analyst Edward Lewis downgraded the stock from Neutral to Sell. Starbucks shares closed at $98.80 on Tuesday. <a href="https://www.benzinga.com/quote/SBUX/analyst-ratings">See how other analysts view this stock.</a></li>
<li>HC Wainwright &amp; Co. increased the price target for MAG Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAG#NYSE">MAG</a>) from $18 to $20. HC Wainwright &amp; Co. analyst Heiko Ihle maintained a Buy rating. MAG Silver shares settled at $15.22 on Tuesday. <a href="https://www.benzinga.com/quote/MAG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Evercore ISI Group boosted Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) price target from $321 to $365. Evercore ISI Group analyst David Raso downgraded the stock from In-Line to Underperform. Caterpillar shares closed at $393.01 on Tuesday. <a href="https://www.benzinga.com/quote/CAT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Baird raised the price target for Natera, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTRA#NASDAQ">NTRA</a>) from $120 to $160. Baird analyst Catherine Ramsey maintained an Outperform rating. Natera shares closed at $135.12 on Tuesday. <a href="https://www.benzinga.com/quote/NTRA/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Needham increased Dayforce Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAY#NYSE">DAY</a>) price target from $82 to $95. Needham analyst Scott Berg maintained a Buy rating. Dayforce shares closed at $78.96 on Tuesday. <a href="https://www.benzinga.com/quote/DAY/analyst-ratings">See how other analysts view this stock</a>.</li>
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HC Wainwright &amp; Co. analyst Heiko Ihle maintains MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) with a Buy and raises the price target from $18 to $20.

HC Wainwright & Co. Maintains Buy on MAG Silver, Raises Price Target to $20

Roth MKM analyst Joe Reagor downgrades MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) from Buy to Neutral and raises the price target from $17 to $17.5.

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Roth MKM Downgrades MAG Silver to Neutral, Raises Price Target to $17.5

Scotiabank analyst Ovais Habib maintains MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) with a Sector Outperform and raises the price target from $14.5 to $15.5.

Scotiabank Maintains Sector Outperform on MAG Silver, Raises Price Target to $15.5

HC Wainwright &amp; Co. analyst Heiko Ihle maintains MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) with a Buy and raises the price target from $17 to $18.

HC Wainwright & Co. Maintains Buy on MAG Silver, Raises Price Target to $18

Canaccord Genuity analyst Dalton Baretto maintains MAG Silver (TSX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#TSX">MAG</a>) with a Buy and raises the price target from C$22 to C$23.

TSX:MAG

Canaccord Genuity Maintains Buy on MAG Silver, Raises Price Target to C$23

HC Wainwright &amp; Co. analyst Heiko Ihle reiterates MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) with a Buy and maintains $17 price target.

HC Wainwright & Co. Reiterates Buy on MAG Silver, Maintains $17 Price Target

MAG Silver Processed 336,593 Tonnes Of Ore From Juanicipio In Q2 And Also It Exceeded Expectations With Preliminary Production Estimates Of 5.0M Silver Ounces And 9,267 Gold Ounces

General

MAG Silver Reports That Its Deer Trail Project In Central Utah Is Being Affected By The Silver King Fire In Piute County. In An Abundance Of Caution, Exploration Operations At The Deer Trail Project Have Been Temporarily Paused

Source: <a href="https://www.streetwisereports.com/article/2024/05/22/new-silver-producer-looks-at-buying-back-shares.html?utm_medium=feed">Streetwise Reports 05/22/2024</a>
MAG Silver Corp. (AMEX:MAG) announced its intention to make a normal course issuer bid (NCIB) to possibly purchase for cancellation up to more than 8.6 million common shares in the company, or about 10% of the public float.
The silver producer said the Toronto Stock Exchange has accepted notice for the NCIB, in which a company can repurchase shares over a period of time when the stock is favorably priced.
In the United States, MAG said repurchases would be subject to a limit of more than 5.1 million common shares, or 5% of the public float as of May 8.
&quot;MAG believes that when a disconnect exists between the share price and the intrinsic value of the business, an NCIB can increase shareholder value and per share growth&quot; the company said in a release. &quot;Further, the company believes that current market conditions provide opportunities for the company to acquire common shares at attractive prices.&quot;
Having the option to repurchase common shares opportunistically could be an effective use of its cash resources and in the best interests of the company and its shareholders, the company noted.
&quot;It would both enhance liquidity for shareholders seeking to sell and provide an increase in the proportionate interests of shareholders wishing to maintain their positions&quot; MAG said in the release.
<h2>The Catalyst: An Emerging Silver Producer</h2>
MAG is an emerging silver producer with its Tier 1 Juanicipio mine in Mexico and announced its first quarter 2024 financials last week.
The Juanicipio joint venture (JV), which the company owns 44% interest in, returned more than US$17.5 million in interest and loan principal repayments to MAG during the first quarter of 2024, the company said.
<blockquote class="callOut left">&quot;We believe cash distributions are likely to increase in the quarters ahead, allowing MAG to consider paying a dividend by year-end 2024&quot; continued Reagor, who reiterated his Buy rating on the stock and increased the price target from US$14 to US$14.50 per share.</blockquote>
&quot;We view this as a significant development as this allowed the company to report an increase in its cash balance despite spending (US)$5.1 million on exploration at other projects and acquiring the Goldstake project for (US)$3.8 million&quot; wrote Roth MKM analyst Joe Reagor in an updated research note.
&quot;We believe cash distributions are likely to increase in the quarters ahead, allowing MAG to consider paying a dividend by year-end 2024&quot; continued Reagor, who reiterated his Buy rating on the stock and increased the price target from US$14 to US$14.50 per share.
For the quarter, the company reported net income of US$14.9 million, or US$0.14 per share, driven by (equity accounted) income from Juanicipio of US$19.24 million and adjusted EBITDA of US$32.45 million.
&quot;On a 100% basis, the Juanicipio JV reported (US)$123.7 million in revenue, beating our (US)$115.8 million estimate&quot; Reagor wrote. &quot;The JV revenue beat was driven by higher payability on metal sales. As a result, we increased our long-term payability assumptions.&quot;
<h2>A Productive First Quarter</h2>
The mine had a productive first quarter, processing more than 325,000 metric tons of ore, with a notable daily milling rate of 4,387 tons despite undergoing a routine maintenance shutdown. The silver head grade was 476 grams per tonne (g/t), with an equivalent silver head grade if 713 g/t.
Juanicipio achieved silver production and equivalent silver production of 4.5 million ounces (Moz) and 6.4 Moz, respectively, during the quarter, highlighting the mine&#39;s potential for sustained high-grade output.
An updated National Instrument 43-101 compliant report for the mine, released last month, found mineral resources grew 33% from the original PEA to 17 million tonnes (Mt) at grades of 310 g/t Ag, 1.86 g/t gold (Au), 2.89% lead (Pb), and 5.32% zinc (Zn), the company said. Inferred mineral resources increased by 16% to 14.1 Mt at grades of 236 g/t Ag, 1.06 g/t Au, 2.41% Pb, and 6.12% Zn.
Almost as soon as MAG released the technical report, silver prices began breaking out. Ron Struthers of Struthers Resource Stock Report recommended MAG shares to take advantage of the sector increases, saying Juanicipio &quot;will be a real cash cow&quot; for the company.
BMO Capital Markets analyst Kevin O&#39;Halloran said he was encouraged by the &quot;accelerating pace of cash distributions from the Juanicipio JV, and we expect the market will react positively to a growing track record of capital returns.&quot;
O&#39;Halloran rated the stock Outperform with a CA$24 per share target price.
&quot;We expect the cash flow to be steady now that the operation is at steady state&quot; noted Stifel analyst Stephen Soock, who rated the stock a Buy with a CA$20.50 per share target.
<h2>Preliminary Base Shelf Prospectus Filed</h2>
Also last week, MAG announced it had filed a preliminary short form base shelf prospectus with securities commissions in all of the provinces and territories of Canada, and a corresponding registration statement will be filed with the U.S. Securities and Exchange Commission.
On issuance of a receipt for the final prospectus and the filing with the SEC, the company will be permitted to offer up to US$250 million of common shares, preferred shares, debt securities, subscription receipts, units, and warrants.
<h2>Ownership and Share Structure</h2>
Institutions own 70% of MAG, and 30% is retail, according to the company.
Top institutional shareholders include Juanicipio operator Fresnillo Plc. with 9%, BlackRock Investment Management (UK) Ltd. with 10.8%, Van Eck Associates Corp. with 9%, First Eagle Investment Management LLC with 6.2%, and Sprott Asset Management LP with 3%, the company said.
MAG Silver has a market cap of US$1.43 billion. It has 102.97 million shares outstanding, according to Reuters. It trades in a 52-week range of US$13.47 and US$8.20.
Important Disclosures:
<ol>
<li>MAG Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.</li>
<li>Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.</li>
<li>This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports&#39; terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
</ol>

New Silver Producer Looks at Buying Back Shares

Scotiabank analyst Ovais Habib maintains MAG Silver (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#AMEX">MAG</a>) with a Sector Outperform and raises the price target from $13.5 to $14.5.

Scotiabank Maintains Sector Outperform on MAG Silver, Raises Price Target to $14.5

Source: <a href="https://www.streetwisereports.com/article/2024/05/16/joint-venture-partner-paid-17-5-million-in-cash-in-q1-24.html?utm_medium=feed">Joe Reagor 05/16/2024</a>
If these cash distributions continue, as expected, the company may consider paying a dividend by year-end 2024, noted Roth MKM.
MAG Silver Corp.&#39;s (AMEX:MAG) Q1/24 financial results were in line with the estimates of Roth MKM, its managing director Joe Reagor reported in a May 14 research note. Due to Roth slightly adjusting some estimates in its model on the silver producer, the target price rose to US$14.50 per share from US$14.
&quot;Earnings per share of US$0.14 was in line with our estimate&quot; Reagor wrote. &quot;We continue to believe MAG is in the process of receiving a rerating from the market as it generates positive cash flow.&quot;
At the time of the report, the Canadian mining company&#39;s share price was about US$12.44, noted Reagor. From here, the return to the new target is 17%.
Roth still considers MAG a Buy.
<h2>Dividend Paying Potential</h2>
Reagor highlighted that in Q1/24, MAG received US$17.5 million (US$17.5M) in cash from its Juanicipio joint venture (JV) project in Mexico, &quot;a significant development.&quot;
This amount allowed the Canadian miner to report a cash balance increase during the quarter despite having spent US$5.1M on exploration work at its other projects and US$3.8M on acquiring the Goldstake property.
&quot;We believe cash distributions are likely to increase in the quarters ahead, allowing MAG to consider paying a dividend by year-end 2024&quot; commented Reagor.
<h2>Other Key Points</h2>
Reagor reported that Juanicipio generated US$123.7M in revenue in Q1/24, beating Roth&#39;s estimate of US$115.8M.
The JV revenue beat resulted from higher metal sales revenue, but the latter, in turn, was partially offset by greater consulting costs, the analyst explained.
Important Disclosures:
<ol>
<li>Mag Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.</li>
<li>Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.</li>
<li>This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports&#39; terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
</ol>
Disclosures for Roth MKM, Mag Silver Corp., May 14, 2024
Regulation Analyst Certification (&quot;Reg AC&quot;): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures: ROTH makes a market in shares of MAG Silver Corp. and as such, buys and sells from customers on a principal basis. A Research Analyst and/or a member of the Analyst&#39;s household own(s) debt or equity securities of MAG Silver Corp..
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC

Joint Venture Partner Paid $17.5 Million in Cash in Q1/24

CIBC analyst Cosmos Chiu maintains MAG Silver (TSX:<a class="ticker" href="https://www.benzinga.com/stock/MAG#TSX">MAG</a>) with a Neutral and raises the price target from C$17.5 to C$22.

CIBC Maintains Neutral on MAG Silver, Raises Price Target to C$22

Source: <a href="https://www.streetwisereports.com/article/2024/05/15/cash-from-tier-1-asset-flows-to-silver-producer.html?utm_medium=feed">Streetwise Reports 05/15/2024</a>
As MAG Silver Corp. (AMEX:MAG) emerges as a producer with its Tier 1 Juanicipio mine in Mexico and output is beating estimates, analysts are paying attention and predicting good things for shareholders.
The Juanicipio joint venture (JV), which the company owns 44% interest in, returned more than US$17.5 million in interest and loan principal repayments to MAG during the first quarter of 2024, the company said while announcing its highlights and financials for the quarter on Tuesday.
&quot;We view this as a significant development as this allowed the company to report an increase in its cash balance despite spending (US)$5.1 million on exploration at other projects and acquiring the Goldstake project for (US)$3.8 million&quot; wrote Roth MKM analyst Joe Reagor in an updated research note.
&quot;We believe cash distributions are likely to increase in the quarters ahead, allowing MAG to consider paying a dividend by year-end 2024&quot; continued Reagor, who reiterated his Buy rating on the stock and increased the price target from US$14 to US$14.50 per share.
For the quarter, the company reported net income of US$14.9 million, or US$0.14 per share, driven by (equity accounted) income from Juanicipio of US$19.24 million and adjusted EBITDA of US$32.45 million.
&quot;On a 100% basis, the Juanicipio JV reported (US)$123.7 million in revenue, beating our (US)$115.8 million estimate&quot; Reagor wrote. &quot;The JV revenue beat was driven by higher payability on metal sales. As a result, we increased our long-term payability assumptions.&quot;
<h2>The Catalyst: Steady Cash Flow</h2>
The company reported strong operating cost performance at Juanicipio, with cash costs and all-in sustaining costs (AISC) of US$8.66 per ounce silver (Ag) and US$11.22 per ounce Ag Eq (silver equivalent), beating BMO Capital Markets analyst Kevin O&#39;Halloran&#39;s expectations of US$11.25 per ounce Ag and US$13.07 per ounce Ag Eq.
<blockquote class="callOut left">&quot;We believe cash distributions are likely to increase in the quarters ahead, allowing MAG to consider paying a dividend by year-end 2024&quot; continued Reagor.</blockquote>
&quot;We are encouraged by the accelerating pace of cash distributions from the Juanicipio JV, and we expect the market will react positively to a growing track record of capital returns&quot; wrote O&#39;Halloran, who rated the stock Outperform with a CA$24 per share target price.
MAG said it had cash totaling US$74.7 million as of March 31, 2024, compared to USA$68.7 million on December 31, 2023.
Analyst Stephen Soock of Stifel in April predicted US$16 million would be returned in principal and loan interest from the JV, and that the company would have US$77 in cash at the end of the first quarter, nearly spot on to the amounts reported by MAG.
&quot;We expect the cash flow to be steady now that the operation is at steady state and look forward to MAG returning capital to shareholders starting in Q3 this year&quot; Soock wrote. He rated the stock a Buy with a CA$20.50 per share target.
&quot;The company wants to establish (US)$100 (million) in cash on their balance sheet (achieved late in Q2) to fund three years of exploration and corporate overhead before distributing profits to shareholders&quot; Soock wrote.
<h2>A Productive First Quarter</h2>
The mine had a productive first quarter, processing more than 325,000 metric tons of ore, with a notable daily milling rate of 4,387 tons despite undergoing a routine maintenance shutdown. The silver head grade was 476 grams per tonne (g/t), with an equivalent silver head grade if 713 g/t.
Juanicipio achieved silver production and equivalent silver production of 4.5 million ounces (Moz) and 6.4 Moz, respectively, during the quarter, highlighting the mine&#39;s potential for sustained high-grade output.
The mine also delivered robust cost performance with a cash cost of US$2.50 per silver ounce sold and an AISC of $6.11 per silver ounce sold, MAG noted.
Juanicipio is in the Bonanza zone of the Valdeca&ntilde;as vein system in the Zacatecas state of Mexico. A preliminary economic assessment (PEA) in 2017 estimated a 19-year mine life.
The updated National Instrument 43-101 compliant report for the mine, released last month, found mineral resources grew 33% from the original PEA to 17 million tonnes (Mt) at grades of 310 g/t Ag, 1.86 g/t gold (Au), 2.89% lead (Pb), and 5.32% zinc (Zn), the company said. Inferred mineral resources increased by 16% to 14.1 Mt at grades of 236 g/t Ag, 1.06 g/t Au, 2.41% Pb, and 6.12% Zn.
<h2>A &#39;Real Cash Cow&#39; for Company</h2>
Almost as soon as MAG released the technical report, silver prices began breaking out. As of Tuesday, spot silver per ounce was up 19.28% since the beginning of the year, USA Today reported.
Ron Struthers of Struthers Resource Stock Report typically follows gold, but predicted the move in the market and recommended MAG shares to take advantage of the sector increases, saying Juanicipio &quot;will be a real cash cow&quot; for the company.
&quot;A mine does not get much better than this one, and I don&#39;t think the stock is reflecting this fact&quot; Struthers wrote on April 3 as the precious metal&#39;s price was rising.
According to FX Empire, there could be more volatility in the silver market as investors anticipate the release of April Consumer Price Index data on Wednesday.
&quot;If the CPI shows that inflation is cooling more than expected, or if employment figures show further weakening in the job market, silver could see an increase in value as the likelihood of an earlier interest rate cut becomes more feasible&quot; the website noted. 
<h2>Ownership and Share Structure</h2>
Institutions own 70% of MAG, and 30% is retail, according to the company.
Top institutional shareholders include Juanicipio operator Fresnillo Plc. with 9%, BlackRock Investment Management (UK) Ltd. with 10.8%, Van Eck Associates Corp. with 9%, First Eagle Investment Management LLC with 6.2%, and Sprott Asset Management LP with 3%, the company said.
MAG Silver has a market cap of US$1.33 billion. It has 102.97 million shares outstanding, according to Reuters. It trades in a 52-week range of US$13.39 and US$8.20.
Important Disclosures:
<ol>
<li>MAG Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.</li>
<li>Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.</li>
<li>This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports&#39; terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
</ol>

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