MAG Announces Dividend Policy and Inaugural Dividend
Rhea-AI Summary
MAG Silver Corp (TSX/NYSE American: MAG) has announced its new dividend policy featuring quarterly fixed dividends of $0.02 per share. The company will supplement this with an additional cash flow linked dividend when silver prices exceed $20 per ounce, targeting approximately 30% of cash flows from Juanicipio operations.
The company has declared an inaugural dividend of $0.18 per share, comprising a $0.02 fixed component and a $0.16 cash flow linked component, reflecting 30% of the $53.85 million received from Juanicipio in Q4 2024. The dividend will be payable on April 21, 2025 to shareholders of record as of April 4, 2025.
The dividend qualifies as an eligible dividend under the Income Tax Act (Canada). Future dividend declarations will be subject to Board approval and may be adjusted based on various factors including financial position, profitability, and cash flow.
Positive
- Introduction of regular quarterly dividend payments of $0.02 per share
- Additional cash flow linked dividend when silver prices exceed $20/oz
- Substantial inaugural dividend of $0.18 per share
- Strong Q4 2024 cash flow of $53.85 million from Juanicipio operations
- Commitment to return approximately 30% of Juanicipio cash flows to shareholders
Negative
- Future dividends subject to Board discretion and various financial conditions
- Non-resident investors subject to Canadian withholding taxes
News Market Reaction
On the day this news was published, MAG gained 6.62%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
All amounts herein are reported in United States dollars (“US$”) unless otherwise specified
VANCOUVER, British Columbia, March 24, 2025 (GLOBE NEWSWIRE) -- MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”, or the “Company”) announces that its Board of Directors (“Board”) has adopted a dividend policy for the Company under which the Company intends to pay quarterly fixed dividends of
MAG declares an inaugural fixed dividend of
“The announcement of our dividend policy and inaugural dividend is a major milestone for MAG and validates our confidence in the overall strength and sustainability of our business,” said George Paspalas, President and CEO. “This inaugural dividend, with both fixed and cash flow linked components, demonstrates our dedication to delivering consistent value while sharing Juanicipio’s operational and financial success with our shareholders.”
The declaration, timing, amount, and payment of future dividends will be subject to the discretion and approval of the Board of Directors. The Company will review the dividend program on an ongoing basis and may amend it at any time depending on the Company’s then current financial position, capital allocation framework, profitability, cash flow, debt covenant compliance, legal requirements and other factors considered relevant. As such, aside from the Inaugural Dividend, no assurances can be made that any future dividends will be declared and/or paid. Dividends paid to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.
About MAG Silver Corp.
MAG Silver Corp. is a growth-oriented Canadian mining and exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (
Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.
This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”), including statements regarding: the declaration, timing, amount, and payment of future dividends, including future cashflow-linked dividends and future periodic dividends pursuant to the Company’s dividend policy; future amendments to the Company’s dividend program; the tax treatment of the Inaugural Dividend for non-resident investors; the continuation and maintenance of the Juanicipio plant’s 4,000 tpd design capacity, and the anticipated cash flow and value generation arising therefrom; and the Company’s expectations towards completion of the exploration plans at the Larder and the Deer Trail Projects. All statements in this release, other than statements of historical facts are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements identified herein include, but are not limited to, commodities prices, changes in expected mineral production performance, risks relating to the operation of the Juanicipio Mine and the Company's minority interest in the same, risks relating to the Company’s business operations, risks relating to the Company’s property titles, risks related to receipt of required regulatory approvals, changes in applicable laws, continued availability of capital and financing, and general economic, market or business conditions, environmental risk, political risk, risks relating to tariff and trade protectionism measures, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including those risks disclosed in MAG Silver’s filings with the Securities Exchange Commission (the “SEC”) and Canadian securities regulators. All forward- looking statements contained herein are made as at the date hereof and MAG Silver undertakes no obligation to update the forward-looking statements contained herein. There is no certainty that any forward-looking statement will come to pass, and investors should not place undue reliance upon forward-looking statements.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the internet at www.sedarplus.ca and www.sec.gov.
For further information on behalf of MAG Silver Corp., please contact Fausto Di Trapani, Chief Financial Officer. Phone: (604) 630-1399 Toll Free: (866) 630-1399 Email: info@magsilver.com
FAQ
What is the total amount of MAG Silver's inaugural dividend payment?
When will MAG Silver pay its first dividend and what is the record date?
How does MAG Silver's cash flow linked dividend component work?
What is MAG Silver's quarterly fixed dividend amount under the new policy?
How much cash flow did MAG receive from Juanicipio in Q4 2024?
