MAG Silver Reports Second Quarter Financial Results
MAG Silver (TSX/NYSE: MAG) reported strong Q2 2025 financial results, highlighted by record net income of $33.4 million ($0.32 per share) and adjusted EBITDA of $56.4 million. The company announced a significant transaction with Pan American Silver to acquire all MAG shares, offering shareholders either $20.54 in cash per share or a combination of cash and Pan American shares.
Operationally, Juanicipio processed 342,515 tonnes of ore with a silver head grade of 417 g/t and achieved record-low cash costs of negative $3.90 per silver ounce. The company declared its third dividend of $0.144 per share, payable September 1, 2025. MAG received $61.5 million from Juanicipio in April 2025, including a second dividend payment and loan repayments.
MAG Silver (TSX/NYSE: MAG) ha comunicato solidi risultati per il 2° trimestre 2025, con un utile netto record di $33,4 milioni (0,32$ per azione) e un EBITDA rettificato di $56,4 milioni. La società ha annunciato una transazione significativa con Pan American Silver per l’acquisizione di tutte le azioni MAG, offrendo agli azionisti $20,54 in contanti per azione oppure un’opzione mista in contanti e azioni Pan American.
Dal punto di vista operativo, Juanicipio ha trattato 342.515 tonnellate di minerale con una legge d’argento di 417 g/t e ha raggiunto costi cash record di -$3,90 per oncia d’argento. La società ha dichiarato il terzo dividendo di $0,144 per azione, pagabile il 1 settembre 2025. In aprile 2025 MAG ha ricevuto $61,5 milioni da Juanicipio, comprensivi del secondo pagamento di dividendo e dei rimborsi di prestiti.
MAG Silver (TSX/NYSE: MAG) informó sólidos resultados del segundo trimestre de 2025, con un beneficio neto récord de $33,4 millones (0,32$ por acción) y un EBITDA ajustado de $56,4 millones. La compañía anunció una operación relevante con Pan American Silver para adquirir la totalidad de las acciones de MAG, ofreciendo a los accionistas $20,54 en efectivo por acción o una combinación de efectivo y acciones de Pan American.
En términos operativos, Juanicipio procesó 342.515 toneladas de mineral con una ley de plata de 417 g/t y logró costes en efectivo récord de −$3,90 por onza de plata. La compañía declaró su tercer dividendo de $0,144 por acción, pagadero el 1 de septiembre de 2025. MAG recibió $61,5 millones de Juanicipio en abril de 2025, incluyendo un segundo pago de dividendo y el reembolso de préstamos.
MAG Silver (TSX/NYSE: MAG)는 2025년 2분기 실적으로 순이익 $33.4 million (주당 $0.32)과 조정 EBITDA $56.4 million을 기록하며 견조한 성과를 발표했습니다. 회사는 Pan American Silver가 MAG의 모든 주식을 인수하는 주요 거래를 공시했으며, 주주에게 주당 $20.54 현금 또는 현금과 Pan American 주식의 혼합 옵션을 제시했습니다.
운영 측면에서 Juanicipio는 342,515톤의 광석을 처리했으며 은 등급은 417 g/t, 은 온스당 현금비용은 기록적인 -$3.90을 달성했습니다. 회사는 세 번째 배당으로 주당 $0.144를 선언했으며 지급일은 2025년 9월 1일입니다. MAG는 2025년 4월 Juanicipio로부터 두 번째 배당금 및 대출 상환을 포함해 $61.5 million을 수령했습니다.
MAG Silver (TSX/NYSE: MAG) a publié de solides résultats pour le 2e trimestre 2025, avec un bénéfice net record de 33,4 M$ (0,32$ par action) et un EBITDA ajusté de 56,4 M$. La société a annoncé une transaction importante avec Pan American Silver visant l'acquisition de la totalité des actions MAG, proposant aux actionnaires 20,54 $ en numéraire par action ou une combinaison d'espèces et d'actions Pan American.
Sur le plan opérationnel, Juanicipio a traité 342 515 tonnes de minerai avec une teneur en argent de 417 g/t et a atteint des coûts cash records de -3,90 $ par once d'argent. La société a déclaré son troisième dividende de 0,144 $ par action, payable le 1er septembre 2025. MAG a reçu 61,5 M$ de Juanicipio en avril 2025, incluant un deuxième versement de dividende et le remboursement de prêts.
MAG Silver (TSX/NYSE: MAG) meldete starke Ergebnisse für das 2. Quartal 2025 mit einem Rekord-Nettoergebnis von $33,4 Millionen (0,32$ je Aktie) und einem bereinigten EBITDA von $56,4 Millionen. Das Unternehmen gab eine bedeutende Transaktion mit Pan American Silver bekannt, wonach Pan American alle MAG-Aktien übernehmen soll; Aktionäre können entweder $20,54 in bar je Aktie oder eine Kombination aus Barzahlung und Pan-American-Aktien wählen.
Operativ verarbeitete Juanicipio 342.515 Tonnen Erz mit einem Silbergehalt von 417 g/t und erreichte rekordniedrige Cash-Kosten von -$3,90 pro Unze Silber. Das Unternehmen erklärte seine dritte Dividende von $0,144 je Aktie, zahlbar am 1. September 2025. Im April 2025 erhielt MAG $61,5 Millionen von Juanicipio, einschließlich einer zweiten Dividendenzahlung und der Rückzahlung von Darlehen.
- Record net income of $33.4 million ($0.32 per share) and adjusted EBITDA of $56.4 million
- Received $61.5 million from Juanicipio operations in April 2025
- Record low cash cost of negative $3.90 per silver ounce and AISC of $0.65 per silver ounce
- Strong silver recovery of 94.6%, improved from 92.4% in Q2 2024
- Pan American acquisition offer at $20.54 per share provides significant premium
- Lower silver head grade of 417 g/t compared to 498 g/t in Q2 2024
- Transaction-related costs of $3.56 million incurred in Q2 2025
- Reduced silver production due to processing ore from deeper mine levels
Insights
MAG Silver reports strong Q2 results with record net income while progressing toward acquisition by Pan American Silver at $20.54/share.
MAG Silver's Q2 2025 results demonstrate exceptional financial performance, highlighted by
The most significant corporate development is the pending acquisition by Pan American Silver. Under the agreement, MAG shareholders can elect to receive either
Juanicipio's operational metrics are particularly impressive. The mine processed 342,515 tonnes of ore at a silver head grade of 417 g/t, achieving
Juanicipio returned substantial capital to MAG during the quarter, with
The exploration program across MAG's portfolio continues to show promise, with drilling at Juanicipio, geophysical work at the Deer Trail Project in Utah, and encouraging gold intersections at the Larder Project in Ontario, where drilling yielded results including 21.0 g/t gold over 0.5 meters.
VANCOUVER, British Columbia, Aug. 11, 2025 (GLOBE NEWSWIRE) -- MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”, or the “Company”) announces the Company’s unaudited consolidated financial results for the three months ended June 30, 2025 (“Q2 2025”). For details of the unaudited condensed interim consolidated financial statements of the Company for the three and six months ended June 30, 2025 (“Q2 2025 Financial Statements”) and management’s discussion and analysis for the three and six months ended June 30, 2025 (“Q2 2025 MD&A”), please see the Company’s filings on the System for Electronic Document Analysis and Retrieval Plus (“SEDAR+”) at (www.sedarplus.ca) or on the Electronic Data Gathering, Analysis, and Retrieval (“EDGAR”) at (www.sec.gov).
Except for per share amounts, all amounts herein are reported in thousands of United States dollars (“US$”) unless otherwise specified (C$ refers to thousands of Canadian dollars).
KEY HIGHLIGHTS FOR Q2 2025 (on a
- On May 11, 2025, the Company and Pan American Silver Corp. ("Pan American") entered into a definitive agreement, as amended (the "Arrangement Agreement"), whereby Pan American agrees to acquire all of the issued and outstanding common shares of the Company pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the "Transaction"). Under the terms of the Arrangement Agreement, MAG shareholders will be able to elect to receive the consideration as either (i)
$20.54 in cash per MAG share or (ii)$0.00 01 in cash and 0.755 of a common share of Pan American per MAG share, or a combination of cash and shares, subject to proration such that the aggregate consideration paid to all MAG shareholders consists of$500,000 in cash and the remaining consideration paid in Pan American shares. On July 10, 2025, MAG's shareholders approved the Transaction at its special shareholders meeting. The Transaction is expected to close in the second half of 2025, subject to the satisfaction of customary closing conditions, including clearance under Mexican anti-trust laws, and approval of the listing of the Pan American common shares to be issued under the Transaction on both the Toronto Stock Exchange and the NYSE. The Company has incurred costs of$3,563 in connection with the Transaction in the three months ended June 30, 2025, which have been included in general exploration and business development expenses in the condensed interim consolidated statements of income and comprehensive income of the Q2 2025 Financial Statements. - MAG reported record net income of
$33,444 ($0.32 per share) and adjusted EBITDA1 of$56,442 , driven by income from Juanicipio (equity accounted) of$42,091 and MAG’s attributable interest in Juanicipio adjusted EBITDA of$63,221. - During April 2025, Juanicipio returned a total of
$61,500 t o MAG:$59,400 as a second dividend payment, and$2,100 in interest and loan principal repayments. All loan balances to Juanicipio have now been fully repaid. - MAG’s second dividend payment of
$0.20 per share (fixed component of$0.02 per share and additional cash flow linked component of$0.18 per share representing approximately30% of cash received from Juanicipio in April 2025) was made on May 28, 2025, to shareholders on record as of May 19, 2025. A total of$39,316 in dividend payments was returned to shareholders during the quarter. - On August 8, 2025 MAG declared its third dividend, of
$0.14 4 per share (fixed component of$0.02 per share and additional cash flow linked component of$0.12 4 per share representing approximately30% of the$40,872 free cash flow generated by Juanicipio attributable to MAG during Q2 2025) payable on September 1, 2025 to shareholders on record as of August 18, 2025. - A total of 342,515 tonnes of ore at a silver head grade of 417 grams per tonne (“g/t”) (equivalent silver head grade2 of 661 g/t) was processed at Juanicipio.
- Silver recovery of
94.6% at Juanicipio, up from92.4% in Q2 2024, reflecting the benefit from ongoing optimizations in the processing plant. - Juanicipio achieved silver production and equivalent silver production2 of 4.3 and 6.6 million ounces, respectively.
- Juanicipio generated strong operating cash flow and free cash flow1 of
$110,639 and$92,891 , respectively. - Juanicipio continued to maintain its strong cost performance with record low cash cost1 of negative
$3.90 per silver ounce sold ($8.38 per equivalent silver ounce sold3) and record low all-in sustaining cost1 of$0.65 per silver ounce sold ($11.46 per equivalent silver ounce sold3).
CORPORATE
- On June 19, 2025, MAG released its fourth annual sustainability report, highlighting the Company’s ongoing commitment to transparency and accountability. The 2024 report provides a detailed overview of MAG’s environmental, social, and governance (“ESG”) priorities, practices and performance throughout the year. The 2024 Sustainability Report and ESG Data Table are available on the MAG Silver website at the following link: https://magsilver.com/esg/4.
- On June 18, 2025, at MAG’s Annual General and Special Meeting (“AGSM”), the shareholders approved by majority to elect all eight directors that stood for election. The changes made during the AGSM included the retirement of Peter Barnes, the outgoing Chairman of the Board and welcomed the new Chairman of the Board, John Armstrong.
EXPLORATION
- Juanicipio:
- During Q2 2025, 9,494 metres were drilled from underground at Juanicipio with all underground drilling assay results pending. The 2025 underground drilling program at Juanicipio continues to focus on:
- infill drilling areas of the resource expected to be mined in the near to mid-term, including Valdecañas, Anticipada, Ramal 1, Ramal 2, and Venadas veins;
- continuation of a southwardly directed program drilling off the conveyor ramp, designed to test for a deep skarn target; and
- testing for near-mine veins.
- Regional surface drilling at Juanicipio started in late February 2025. During Q2 2025, surface drilling at Juanicipio totalled 6,174 metres. Surface drilling to date has been further testing the Cañada Honda structure as well as the newly identified Magdalena structure. Surface drilling at Mesa Grande is expected to start in Q3 2025.
- During Q2 2025, 9,494 metres were drilled from underground at Juanicipio with all underground drilling assay results pending. The 2025 underground drilling program at Juanicipio continues to focus on:
- Deer Trail Project, Utah5:
- During Q2 2025, MAG initiated a comprehensive geophysical program across the 112 km² project area, comprising an Ambient Noise Tomography (“ANT”) survey as well as airborne radiometric and magnetic surveys. These surveys are designed to enhance subsurface geological mapping and improve the identification of structural features associated with potential mineralization. Interpretation of the newly acquired data is currently underway and will be integral to refining drill targets for the next phase of exploration. In parallel, three higher-resolution ANT infill surveys are being conducted over the Deer Trail Corridor, Alunite Ridge, and Bullion Canyon, which are expected to further improve targeting precision.
- A 9km 2D seismic line has been completed in Gold Gulch within the southern patented ground; this data will be combined with the sub-parallel Cottonwood Canyon seismic line completed in November 2024 to validate, refine and rank drill targets.
- New geochronological age dates of rocks continue to confirm that the Deer Trail Property belongs to the Bingham style family of rocks with strong mineralization potential.
- Larder Project, Ontario6:
- During Q2 2025, MAG commenced its field program and Phase 1 drilling program at the Italian Zone (formerly the Instant Pond Zone at the Goldstake Property) that utilized the data collected from the Q1 2025 geological synthesis. Drilling highlights include:
- testing of newly identified regional structures and collection of new structural data from historic gold zones;
- 5,243 metres drilled in nine drillholes;
- rock types encountered include syenite, pillowed-massive basalt, quartz feldspar porphyry, gabbro and albite dykes;
- major structures have been validated which include regional NE-SW (Bear Lake Fault extension from main Cadillac Larder Break) NW-SE (along western side of the syenite) and E-W extensional veins which carry the higher grades recorded thus far; and
- significant intersections include (See Table 1): 21.0 g/t gold over 0.5 metre (LP-25-001 at 105.9-106.4 metres), 12.4 g/t gold over 0.5 metre (LP-25-004 at 288.5-289 metres) and 16.4 g/t gold over 0.7 metre (LP-25-005 at 36.1-36.8 metres).
- During Q2 2025, MAG commenced its field program and Phase 1 drilling program at the Italian Zone (formerly the Instant Pond Zone at the Goldstake Property) that utilized the data collected from the Q1 2025 geological synthesis. Drilling highlights include:
Table 1. Drillhole results from Phase 1 at the Italian Zone – some assays outstanding
| Hole ID | Target | From (m) | To (m) | Length (m) | Au (g/t) | Lithology | Comments |
| LP-25-001 | Bear Lake Fault | 105.9 | 108.0 | 2.1 | 5.0 | Syenite | Adjacent to Mafic Volcanic contact in Fracture with CPY |
| Including | 105.9 | 106.4 | 0.5 | 21.0 | |||
| and | 269.0 | 271.0 | 2.0 | 3.1 | Mafic Volcanic | Epidote altered fracture with pyrite mineralization | |
| Including | 270.0 | 271.0 | 1.0 | 6.2 | |||
| and | 522.5 | 524.3 | 1.8 | 4.1 | Gabbro | Gabbro with fracturing with up to | |
| Including | 523.1 | 523.7 | 0.6 | 11.8 | |||
| LP-25-004 | Italian Zone | 94.0 | 97.0 | 3.0 | 1.5 | Gabbro with blebby pyrite and trace Chalcopyrite | |
| Including | 94.0 | 94.5 | 0.5 | 4.3 | |||
| and | 159.5 | 161.0 | 1.5 | 2.9 | Small quartz-vein with speck of VG | ||
| Including | 159.5 | 160.0 | 0.5 | 8.6 | |||
| and | 170.6 | 172.1 | 1.5 | 4.1 | Gabbro with quartz-carb stringer with chalcopyrite | ||
| Including | 171.1 | 171.6 | 0.5 | 12.1 | |||
| and | 174.1 | 176.0 | 1.9 | 1.1 | Medium to fine grain gabbro with small fractures | ||
| Including | 174.1 | 175.0 | 0.9 | 1.9 | |||
| and | 288.0 | 289.5 | 1.5 | 4.1 | Gabbro with quartz-carb vein. | ||
| Including | 288.5 | 289.0 | 0.5 | 12.4 | |||
| LP-25-005 | 35.6 | 37.3 | 1.7 | 7.2 | Mafic Volcanic | Brecciated Mafic Volcanics with chalcopyrite in quartz-carb stringers | |
| Including | 36.1 | 36.8 | 0.7 | 16.4 | |||
| and | 51.8 | 57.0 | 5.2 | 1.0 | Mafic Volcanics with quartz-carb stringers and chalcopyrite | ||
| Including | 55.0 | 55.5 | 0.5 | 7.3 | |||
| and | 67.8 | 71.0 | 3.2 | 1.5 | Mafic Volcanic with chalcopyrite in selvages |
JUANICIPIO RESULTS
All results of Juanicipio in this section are on a
Operating Performance
The following table and subsequent discussion provide a summary of the operating performance of Juanicipio for the three months ended June 30, 2025 and 2024, unless otherwise noted.
| Key mine performance data of Juanicipio ( | Three months ended | |||
| June 30, | June 30, | |||
| 2025 | 2024 | |||
| Metres developed (m) | 3,596 | 3,520 | ||
| Material mined (t) | 355,785 | 349,460 | ||
| Material processed (t) | 342,515 | 336,592 | ||
| Silver head grade (g/t) | 417 | 498 | ||
| Gold head grade (g/t) | 1.21 | 1.20 | ||
| Lead head grade (%) | 1.71 | % | 1.56 | % |
| Zinc head grade (%) | 3.34 | % | 2.99 | % |
| Equivalent silver head grade (g/t) (1) | 661 | 746 | ||
| Silver ounces sold (koz) | 3,829 | 4,272 | ||
| Gold ounces sold (koz) | 9.26 | 7.20 | ||
| Lead pounds sold (klb) | 10,415 | 9,224 | ||
| Zinc pounds sold (klb) | 18,286 | 15,237 | ||
| Equivalent silver ounces sold (koz) (2) | 5,648 | 5,817 | ||
| (1) | Equivalent silver head grades have been calculated using the following price assumptions to translate gold, lead and zinc to “equivalent” silver head grade in 2025: |
| (2) | Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2025 realized prices: |
During Q2 2025, a total of 355,785 tonnes of ore were mined. This represents an increase of
During Q2 2025, a total of 342,515 tonnes of ore were processed through the Juanicipio plant. The
The silver head grade and equivalent silver head grade for the ore processed in Q2 2025 were 417 g/t and 661 g/t (Q2 2024: 498 g/t and 746 g/t). The higher silver and lower base metal head grades in Q2 2024 were the result of processing ore from higher levels of the mine, characterized by elevated silver grade, compared to deeper areas in Q2 2025. Silver metallurgical recovery during Q2 2025 was
The following table provides a summary of the total cash costs and all-in sustaining costs (“AISC”) of Juanicipio for the three months ended June 30, 2025 and 2024.
| Key mine performance data of Juanicipio ( | Three months ended | |||
| June 30, | June 30, | |||
| 2025 | 2024 | |||
| Total cash costs (1) | (14,938 | ) | 4,911 | |
| Cash cost per silver ounce sold ($/oz) (1) | (3.90 | ) | 1.15 | |
| Cash cost per equivalent silver ounce sold ($/oz) (1) | 8.38 | 8.86 | ||
| All-in sustaining costs (1) | 2,470 | 19,161 | ||
| All-in sustaining cost per silver ounce sold ($/oz) (1) | 0.65 | 4.49 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/oz) (1) | 11.46 | 11.31 | ||
| (1) | Total cash costs, cash cost per ounce, cash cost per equivalent ounce, all-in sustaining costs, all-in sustaining cost per ounce, and all-in sustaining cost per equivalent ounce are non-IFRS measures, please see below “Non-IFRS Measures” section and section 12 of the Q2 2025 MD&A for a detailed reconciliation of these measures to the Q2 2025 Financial Statements. Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2025 realized prices: |
The cash cost per silver ounce sold1 and cash cost per equivalent silver ounce sold1 for the three months ending June 30, 2025 were negative
The all-in sustaining cost per ounce sold1 and all-in sustaining cost per equivalent silver ounce sold1 for the three months ended June 30, 2025 were
Financial Results
The following table presents excerpts of the financial results of Juanicipio for the three months ended June 30, 2025 and 2024.
| Three months ended | ||||
| June 30, | June 30, | |||
| 2025 | 2024 | |||
| $ | $ | |||
| Sales | 186,465 | 167,079 | ||
| Cost of sales: | ||||
| Production cost | (36,450 | ) | (39,866 | ) |
| Depreciation and amortization | (21,393 | ) | (22,455 | ) |
| Gross profit | 128,622 | 104,757 | ||
| Consulting and administrative expenses | (3,252 | ) | (4,283 | ) |
| Extraordinary mining and other duties | (3,447 | ) | (2,773 | ) |
| Interest expense | (25 | ) | (3,241 | ) |
| Exchange gains (losses) and other | (4,479 | ) | 696 | |
| Net income before tax | 117,419 | 95,156 | ||
| Income tax expense | (21,782 | ) | (41,299 | ) |
| Net income ( | 95,637 | 53,857 | ||
| MAG’s | 42,080 | 23,697 | ||
| Interest on Juanicipio loans - MAG's | 11 | 1,426 | ||
| MAG’s | 42,091 | 25,123 | ||
Sales increased by
Production costs decreased by
Depreciation decreased by
Cash operating margin (gross profit plus depreciation divided by sales) increased from
Other expenses increased by
Taxes decreased by
Gross Profit from Ore Processed at Juanicipio Plant (
| Three Months Ended June 30, 2025 (342,515 tonnes processed) | Three Months Ended June 30, 2024 Amount $ | |||||
| Metals Sold | Quantity | Average Price $ | Amount $ | |||
| Silver | 3,828,639 ounces | 34.23 per oz | 131,045 | 128,876 | ||
| Gold | 9,259 ounces | 3,354 per oz | 31,060 | 17,124 | ||
| Lead | 4,724 tonnes | 0.88 per lb. | 9,118 | 9,151 | ||
| Zinc | 8,294 tonnes | 1.21 per lb. | 22,094 | 20,332 | ||
| Treatment, refining, and other processing charges | (6,852 | ) | (8,405 | ) | ||
| Sales | 186,465 | 167,079 | ||||
| Production cost | (36,450 | ) | (39,866 | ) | ||
| Depreciation and amortization | (21,393 | ) | (22,455 | ) | ||
| Gross Profit | 128,622 | 104,757 | ||||
Sales and treatment charges are recorded on a provisional basis and are adjusted based on final assay and pricing adjustments in accordance with the offtake contracts.
MAG FINANCIAL RESULTS – THREE MONTHS ENDED JUNE 30, 2025
As at June 30, 2025, MAG had working capital of
The Company’s net income for the three months ended June 30, 2025 amounted to
| For the three months ended | ||||
| June 30, | June 30, | |||
| 2025 | 2024 | |||
| $ | $ | |||
| Income from equity accounted investment in Juanicipio | 42,091 | 25,123 | ||
| General and administrative expenses | (4,838 | ) | (3,622 | ) |
| General exploration and business development | (3,563 | ) | (95 | ) |
| Operating Income | 33,690 | 21,406 | ||
| Interest income | 1,459 | 928 | ||
| Other income | - | 650 | ||
| Financing costs | (145 | ) | (134 | ) |
| Foreign exchange loss | 253 | 60 | ||
| Income before income tax | 35,257 | 22,910 | ||
| Deferred income tax expense | (1,813 | ) | (1,296 | ) |
| Net income | 33,444 | 21,614 | ||
NON-IFRS MEASURES
The following table provides a reconciliation of cash cost per silver ounce of Juanicipio to production cost of Juanicipio on a
| Three months ended June 30, | ||||
| (in thousands of US$, except per ounce amounts) | 2025 | 2024 | ||
| Production cost as reported | 36,450 | 39,866 | ||
| Depreciation on inventory movements | 585 | 474 | ||
| Adjusted production cost | 37,035 | 40,340 | ||
| Treatment, refining, and other processing costs | 6,852 | 8,405 | ||
| By-product revenues (1) | (62,272 | ) | (46,608 | ) |
| Extraordinary mining and other duties | 3,447 | 2,773 | ||
| Total cash costs | (14,938 | ) | 4,911 | |
| Add back by-product revenues (1) | 62,272 | 46,608 | ||
| Total cash costs for equivalent silver | 47,334 | 51,519 | ||
| Silver ounces sold | 3,828,639 | 4,271,991 | ||
| Equivalent silver ounces sold (2) | 5,647,981 | 5,816,940 | ||
| Cash cost per silver ounce sold ($/ounce) | (3.90 | ) | 1.15 | |
| Cash cost per equivalent silver ounce sold ($/ounce) | 8.38 | 8.86 | ||
| (1) | By-product revenues relate to the sale of other metals namely gold, lead, and zinc. |
| (2) | Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2025 realized prices: |
The following table provides a reconciliation of all-in sustaining costs of Juanicipio to production cost and various operating expenses of Juanicipio on a
| Three months ended June 30, | ||||
| (in thousands of US$, except per ounce amounts) | 2025 | 2024 | ||
| Total cash costs | (14,938 | ) | 4,911 | |
| General and administrative expenses | 3,252 | 4,283 | ||
| Exploration | 3,453 | 2,235 | ||
| Sustaining capital expenditures | 10,489 | 7,329 | ||
| Sustaining lease payments | 130 | 349 | ||
| Interest on lease liabilities | (11 | ) | (17 | ) |
| Accretion on closure and reclamation costs | 94 | 72 | ||
| All-in sustaining costs | 2,470 | 19,161 | ||
| Add back by-product revenues (1) | 62,272 | 46,608 | ||
| All-in sustaining costs for equivalent silver | 64,742 | 65,768 | ||
| Silver ounces sold | 3,828,639 | 4,271,991 | ||
| Equivalent silver ounces sold (2) | 5,647,981 | 5,816,940 | ||
| All-in sustaining cost per silver ounce sold ($/ounce) | 0.65 | 4.49 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/ounce) | 11.46 | 11.31 | ||
| Average realized price per silver ounce sold ($/ounce) | 34.23 | 30.17 | ||
| All-in sustaining margin ($/ounce) | 33.58 | 25.68 | ||
| All-in sustaining margin ($/equivalent ounce) | 22.76 | 18.86 | ||
| All-in sustaining margin | 128,575 | 109,715 | ||
| (1) | By-product revenues relate to the sale of other metals namely gold, lead, and zinc. |
| (2) | Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2025 realized prices: |
For the three months ended June 30, 2025, the Company incurred corporate G&A expenses of
For the three months ended June 30, 2025, the Company’s attributable silver ounces sold were 1,684,601 (three months ended June 30, 2024: 1,879,676) and attributable equivalent silver ounces sold were 2,485,111 (three months ended June 30, 2024: 2,559,454), resulting in additional all‐in sustaining cost for the Company of
The following table provides a reconciliation of EBITDA and Adjusted EBITDA attributable to the Company based on its economic interest in Juanicipio to net income (the nearest IFRS Accounting Standards measure) of the Company per the Q2 2025 Financial Statements. All adjustments are shown net of estimated income tax.
| Three months ended June 30, | ||||
| (in thousands of US$) | 2025 | 2024 | ||
| Net income after tax | 33,444 | 21,614 | ||
| Add back (deduct): | ||||
| Taxes | 1,813 | 1,296 | ||
| Depreciation and depletion | 183 | 149 | ||
| Finance costs (income and expenses) | (1,567 | ) | (1,504 | ) |
| EBITDA | 33,873 | 21,555 | ||
| Add back (deduct): | ||||
| Adjustment for non-cash share-based compensation | 1,439 | 1,053 | ||
| Share of net earnings related to Juanicipio | (42,091 | ) | (25,123 | ) |
| MAG attributable interest in Junicipio Adjusted EBITDA | 63,221 | 52,868 | ||
| Adjusted EBITDA | 56,442 | 50,353 | ||
The following table provides a reconciliation of free cash flow of Juanicipio to its cash flow from operating activities on a
| Three months ended June 30, | ||||
| (in thousands of US$) | 2025 | 2024 | ||
| Cash flow from operating activities | 110,639 | 92,766 | ||
| Less: | ||||
| Cash flow used in investing activities | (17,618 | ) | (3,780 | ) |
| Sustaining lease payments | (130 | ) | (349 | ) |
| Juanicipio free cash flow | 92,891 | 88,637 | ||
Qualified Persons: All scientific or technical information in this press release including assay results referred to, mineral resource estimates and mineralization, if applicable, is based upon information prepared by or under the supervision of, or has been approved by Gary Methven, P.Eng., Vice President, Technical Services and Lyle Hansen, P.Geo, Geotechnical Director; both are “Qualified Persons” for purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
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.
Certain information contained in this release, including any information relating to MAG’s future oriented financial information, are “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States securities legislation (collectively herein referred as “forward-looking statements”), including the “safe harbour” provisions of provincial securities legislation, the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended and Section 27A of the U.S. Securities Act. Such forward-looking statements include, but are not limited to:
- statements regarding the Transaction with Pan American, including but not limited to, its expected completion and timing of consummation;
- statements that address the declaration, timing, amount, and payment of future dividends, including future cash flow linked dividends and future periodic dividends;
- statements that address maintaining the nameplate 4,000 tpd milling rate at Juanicipio;
- statements that address our expectations regarding exploration and drilling;
- statements regarding production expectations and nameplate;
- statements regarding additional information from future drill programs;
- statements regarding inferences drawn from geochronological age dating;
- estimated project economics, including but not limited to, plant or mill recoveries, metals produced, metal grades, metals sold, underground mining rates;
- the estimation of mineral reserves and mineral resources;
- estimated future exploration and development operations and corresponding expenditures and other expenses for specific operations;
- the expected capital, sustaining capital and working capital requirements at Juanicipio;
- statements regarding production rates, capital and operating and other costs, anticipated life of mine, and
- mine plan;
- expected timing and results of surveying methodology, including the timing and completion of the final data interpretation and results of the ANT infill surveys and the 2D seismic line in Gold Gulch;
- expected upside from additional exploration;
- expected results from drilling at Juanicipio;
- expected results from Deer Trail Project drilling;
- expected results from Larder Project at the Fernland, Cheminis, Bear, Swansea, Long Conglomerate, Kir Vit, Twist, and Italian zones and other regional targets;
- expected capital requirements and sources of funding;
- the Company’s ability to repatriate capital from the Juanicipio Mine;
- the Company’s participation in equity investments;
- statements regarding the Company’s ability to meet business objectives and milestones;
- statements regarding the 2024 sustainability report; and
- other future events or developments.
When used in this release, any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, assumptions or future events of performance (often but not always using words or phrases such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”, “strategy”, “goals”, “objectives”, “project”, “potential” or variations thereof or stating that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions), as they relate to the Company or management, are intended to identify forward-looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to certain known and unknown risks, uncertainties and assumptions.
Forward-looking statements are necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control and many of which, regarding future business decisions, are subject to change. Assumptions underlying the Company’s expectations regarding forward-looking statements contained in this release include, among others: MAG’s ability to carry on its various exploration and development activities including project development timelines, the timely receipt of required approvals and permits, the price of the minerals produced, the costs of operating, exploration and development expenditures, the impact on operations of the Mexican tax and legal regimes, MAG’s ability to obtain adequate financing, outbreaks or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally.
Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including amongst others: commodities prices; changes in expected mineral production performance; unexpected increases in capital costs or cost overruns; exploitation and exploration results; continued availability of capital and financing; general economic, market or business conditions; risks relating to the Company’s business operations; risks relating to the financing of the Company’s business operations; risks related to the Company’s ability to comply with restrictive covenants and maintain financial covenants pursuant to the terms of the Company’s senior secured revolving credit facility with the Bank of Montreal; risks relating to the operation of Juanicipio and the minority interest investment in the same; risks relating to the Company’s property titles; risks related to receipt of required regulatory approvals; pandemic risks; conflicts in Europe and the Middle East; the potential impact of any tariffs, countervailing duties or other trade restrictions; risks relating to the Company’s financial and other instruments; operational risk; environmental risk; political risk; currency risk; market risk; capital cost inflation risk; risk relating to construction delays; the risk that data is incomplete or inaccurate; the risks relating to the limitations and assumptions within drilling, engineering and socio-economic studies relied upon in preparing economic assessments and estimates, including the updated Technical Report filed on March 27, 2024; as well as those risks more particularly described under the heading “Risk Factors” in the Company’s Annual Information Form dated March 27, 2024 available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and, other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on 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.
1 Adjusted EBITDA, cash cost per ounce, all-in sustaining cost per ounce and free cash flow are non-IFRS measures, please see below “Non-IFRS Measures” section and section 12 of the Q2 2025 MD&A for a detailed reconciliation of these measures to the Q2 2025 Financial Statements.
2 Equivalent silver head grade and equivalent silver production have been calculated using the following price assumptions to translate gold, lead and zinc to “equivalent” silver head grade and “equivalent” silver production:
3 Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to “equivalent” silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended June 30, 2025 realized prices:
4 Information contained in or otherwise accessible through the Company’s website, including the 2024 sustainability report and 2024 ESG Data Table, do not form part of this MD&A and are not incorporated into this MD&A by reference.
5 Results of and an update on the Deer Trail Project were reported on February 24, 2025 (for more information, please see news release dated February 24, 2025 available under the Company’s SEDAR+ profile at www.sedarplus.ca).
6 Results of and an update on the Larder Project were reported on February 24, 2025 (for more information, please see news release dated February 24, 2025 available under the Company’s SEDAR+ profile at www.sedarplus.ca).
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
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