MAG Silver (MAG) Q2 2024 earnings summary

Executive summary

• Net income of $21.6 million ($0.21/share) in Q2 2024, driven by $25.1 million equity income from Juanicipio and adjusted EBITDA of $50.4 million.

• Juanicipio processed 336,592 tonnes at a silver head grade of 498 g/t, producing 5.0 million ounces of silver and 7.1 million equivalent ounces.

• Juanicipio generated $92.8 million in operating cash flow and $88.6 million in free cash flow.

• Full-year guidance raised for silver head grade, production, and sales, with lower all-in sustaining cost (AISC) expectations.

Financial highlights

• Sales at Juanicipio rose to $167.1 million, up $32.3 million year-over-year, mainly due to higher realized metal prices and lower processing costs.

• Gross profit at Juanicipio increased to $104.8 million from $62.8 million year-over-year.

• MAG's working capital reached $96.5 million, with $97.3 million in cash and no long-term debt as of June 30, 2024.

• Cash operating margin at Juanicipio improved to 76% from 60% year-over-year.

Outlook and guidance

• Silver head grade guidance for 2024 increased to 420–460 g/t (from 380–420 g/t).

• Juanicipio's 2024 silver production guidance raised to 16.3–17.3 million ounces (from 14.3–15.8 million), with AISC lowered to $8.50–$9.25/oz.

• Exploration drilling continues at Juanicipio, Deer Trail, and Larder projects, with significant meters planned and ongoing results.