MAG Silver (MAG) Q1 2025 earnings summary

Executive summary

• Achieved record-breaking Q1 results with robust production, record margins, and strong shareholder returns, including record net income of $28,744 ($0.28/share) and adjusted EBITDA of $55,750, driven by strong Juanicipio performance.

• Juanicipio returned $61,508 to MAG in April 2025, including a $59,400 dividend; all loans to Juanicipio now fully repaid.

• Inaugural and second dividends declared, totaling $0.20/share, with a cash flow-linked component.

• Processed 337,000 tonnes of ore, yielding 4.5 million ounces of silver and 6.5 million ounces silver equivalent, with silver recovery reaching a new high of 96% due to plant optimization and improved concentrate production.

• Board refreshment with John Armstrong appointed as director.

Financial highlights

• Q1 sales reached $175 million, up 42% year-over-year, driven by higher volumes and stronger realized prices.

• Gross profit nearly doubled to $121 million from $65 million a year ago.

• Net income for Q1 2025 was $28,744, up from $14,895 in Q1 2024; EPS rose to $0.28 from $0.14.

• Adjusted EBITDA reached $55,750, up from $32,656 year-over-year.

• Working capital at March 31, 2025 was $136,962, with cash of $156,401 and no long-term debt.

Outlook and guidance

• Juanicipio is on track to meet 2025 production guidance of 14.7–16.7 million silver ounces and all-in sustaining costs of $6–$8 per ounce.

• Sustaining capital of $70–$80 million budgeted for infrastructure upgrades; $22–$28 million allocated for an underground conveyor system expected online in late 2026.

• 50,500 m of drilling planned in 2025 to expand the resource base.

• Focus on maintaining 4,000 tpd milling rate at Juanicipio and continued strong cash flow generation.

• Exploration drilling to continue at Juanicipio, Deer Trail, and Larder projects, with results pending.