From today's Globe Touting a “solid” free cash flow outlook at a “compelling” valuation, Scotia Capital analyst Ovais Habib upgraded MAG Silver Corp. (MAG-A, MAG-T +2.45%increase
) to a “sector outperform” recommendation from “sector perform” previously.
“We believe the release of the updated Juanicipio technical report represents a major de-risking milestone for MAG’s shares,” he said. “The plan outlines an initial 13-year reserve life for the polymetallic Ag-Au-Pb-Zn deposit with opportunity to expand the current reserve base through near mine and greenfield explorations.”
Mr. Habib called the Vancouver-based miner one of the lowest-cost silver producers in his coverage universe, projecting life-of-mine all-in sustaining costs of $4.83 versus a peer average of $11.39.”