Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Production Start Moved Up for Silver Project in Mexico

Streetwise Reports, Streetwise Reports
0 Comments| March 4, 2020

{{labelSign}}  Favorites
{{errorMessage}}

MAG Silver's two recent announcements about its project in Mexico are relayed and commented on in a ROTH Capital Partners report.

Click to enlarge


In a Feb. 27 research note, ROTH Capital Partners analyst Joe Reagor noted that MAG Silver Corp. (MAG:TSX; MAG:NYSE A) and joint venture partner Fresnillo Plc (FRES:LSE) moved up the production start for Juanicipio and raised preproduction capex estimates. "These results are essentially offsetting," Reagor noted.

Production from Juanicipio's underground mine now is slated to begin in mid-2020. "The pull forward of production as a significant positive for the company as it should provide cash flow to offset ongoing capital expenditures," Reagor wrote.

The joint venture partners will not commission the flotation plant at Juanicipio until mid-2021, however. In the interim, ore will be processed at one of Fresnillo's nearby plants.

Now, preproduction capex for Juanicipio is forecast to be $440 million, up 11.4% from $395 million. "This had a negative impact on our discounted cash flow, but we still estimate the company has the necessary funding to complete construction without further dilution," Reagor commented.

ROTH has a Buy rating and a US$23 per share price target on MAG, whose stock is currently trading at around US$9.64 per share.



{{labelSign}}  Favorites
{{errorMessage}}

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today

Featured Company