Equity Research




MAG Silver Corp.

(MAG / NYSE / $11.42)

February 21, 2020


Business Overview



MAG is developing one of the highest grade and largest primary silver assets in the world, as a 44%-owned JV (Minera Juanicipio S.A. de C.V.) with Fresnillo Plc. The Juanicipio Property is located in the Fresnillo Silver Trend in Mexico.


The global resource (indicated) is 176 Moz Silver, 867 Koz gold, 598 Mlb lead, 1041 Mlb zinc, and 38 Mlb copper. The inferred category includes 91 Moz Ag, 562 Koz Au, 658 Mlb Pb, 1252 Mlb Zn, and 71 Mlb Cu.


Fresnillo is presently constructing and developing the surface and underground infrastructure on the property to support a 4,000 tonnes per day mining operation. Total capex is estimated at $395m ($174m MAG share), with approximately 27% expended to date.


The property has significant exploration potential, with only 5% explored.



2020 Focus



Finish underground access ramp, stope development, and underground infrastructure.


Mill procurement and construction. Much of the plant equipment is modular to facilitate installation.


Production scheduled to commence by early in 2021.



Exploration Potential



All historic mineralized veins in the area are oriented W to NW, but a more recent discovery is a mineralized vein (Valdecanas) is NE oriented. The company has now mapped in the surface other NE trending structures.


A north/south structure (Casantoni) shows particular promise.


The company has identified a number of what appear to be upwelling fluid zones on the property.






The backgrounds of the management and directors are outlined on the MAG web site. The individuals have significant experience in exploration and mining, as well as in corporate finance and capital markets.






Income Statement (9 months through 9/30/19 vs. 9/30/18; USD)


Revenue: 0 vs. 0

Operating expense: 6,053,000 vs. 5,592,000

Other income (expense): 2,672,000 vs. 2,843,000

Net income (loss): (3,987,000) vs. (3,317,000

Net income (loss) per basic common share: (0.04) vs. (0.02)



Balance Sheet (9/30/19; USD)


Cash & equivalents: 94,599,000

Current liabilities: 436,000

Long-term debt: 0

Stockholders equity: 215,273,000



Valuation Considerations



The cash position likely falls a bit short of its possible capex requirement, but the Company has a number of possibilities for addressing that issue.


More than 10 brokerage firms have issued MAG research reports, and the average stock price target is substantially above the current price (see MAG investor deck for details).


The stock has plenty of liquidity, with NYSE average volume of 399,631 and additional volume on the Canadian exchange.


The impact from COVID-19 remains an uncertainly. In addition, the Company website and SEDAR filings list a number of risks and are hereby incorporated by reference.






Executive offices: 770-800 West Pender Street, Vancouver, BC, V6C 2V6, Canada


Investor contact: Michael J. Curlook, VP Investor Relations and Communications, 866.630.1399






TickerBuzz, LLC ("TickerBuzz"), a Florida limited liability company is the author of this Profile. TickerBuzz is not and does not act as a broker-dealer, investment advisor, placement agent, or crowdfunding portal. Furthermore, it does not offer any securities, nor does it provide any investment advice or analysis. The source material for this Profile is the Company presentation materials. Certain information, particularly information relating to future performance and other business matters, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. TickerBuzz cautions that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties that may change over time and cause actual results to differ materially from the results discussed herein. The forward-looking statements are neither predictions nor guarantees of future events or performance. TickerBuzz has no obligation to update any forward-looking statements after they are made, except as required by applicable law. All of this information is intended for discussion purposes only, is not a solicitation to buy or sell any security, and must not be relied upon for financial, legal, tax, or any other professional advice. This company has not paid TickerBuzz any compensation for publication of this Profile. The analyst who wrote this Profile is a manager and member of an LLC that owns a position in the common shares of this company. Analyst: William J. Ritger.



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Contact: William J. Ritger, writger@gmail.com, 561.891.1903

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