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Jun 30
MAG Silver Q2 2025 Earnings Report
MAG Silver posted record quarterly net income in Q2 2025, driven by strong contributions from the Juanicipio joint venture and higher realized metal prices.
Key Takeaways
In Q2 2025, MAG Silver achieved record net income of $33.4M as higher realized silver and gold prices, coupled with lower production costs and strong cash generation from Juanicipio, boosted profitability. The company maintained a solid cash position of $171.8M and declared a dividend of $0.144 per share for Q3.
Net income rose to $33.4M from $21.6M in Q2 2024, with EPS up to $0.32 from $0.21.
Juanicipio generated free cash flow of $92.9M, with MAG receiving $61.5M in distributions during April.
Cash costs per silver ounce sold reached a record low of negative $3.90, aided by higher by-product revenues.
Declared a $0.144 per share dividend, representing 30% of free cash flow attributable to MAG.
MAG Silver
MAG Silver
Forward Guidance
MAG Silver expects strong operational performance from Juanicipio to continue, supported by steady-state production, ongoing exploration, and favorable metal prices, while progressing toward the Pan American Silver acquisition closing in 2025.
Positive Outlook
- Sustained nameplate production capacity at Juanicipio with strong recoveries.
- Continued record-low cash costs per silver ounce sold.
- Healthy cash position with no long-term debt.
- Ongoing exploration programs at Deer Trail and Larder projects.
- Pending acquisition by Pan American Silver expected to close in 2025.
Challenges Ahead
- Reliance on commodity price strength to maintain margins.
- Exposure to potential delays in closing the Pan American transaction.
- Lower silver head grades compared to prior year due to deeper ore zones.
- Currency risk related to the Mexican peso.
- Higher sustaining capital expenditures impacting AISC.