MAG Silver (MAG) Q1 2025 earnings summary

Executive summary

• Achieved record-breaking Q1 results with robust production, record margins, and strong shareholder returns, including record net income of $28,744 ($0.28 per share) and adjusted EBITDA of $55,750, driven by strong performance at Juanicipio and higher realized metal prices.

• Juanicipio returned $61,508 to the company in April 2025, including a $59,400 dividend and full repayment of all outstanding loans.

• Processed 337,017 tonnes of ore, yielding 4.5 million ounces of silver and 6.5 million ounces silver equivalent, with a record 96% silver recovery due to plant optimization and improved concentrate production.

• Inaugural and second dividends declared, totaling $0.20 per share, with a significant cash flow-linked component.

• Board refreshment with the appointment of John Armstrong, bringing extensive financial and mining sector experience.

Financial highlights

• Q1 sales reached $175,235, up 42% year-over-year, driven by higher volumes and stronger realized prices.

• Gross profit at Juanicipio nearly doubled to $120,990 from $64,864 a year ago.

• Net income for Q1 2025 was $28,744, up from $14,895 in Q1 2024; adjusted EBITDA was $55,750.

• Free cash flow was $77,438 after $57 million in taxes paid; operating cash flow at Juanicipio was $86,399.

• Working capital at March 31, 2025 was $136,962, with cash of $156,401 and no long-term debt.

Outlook and guidance

• Juanicipio is on track to meet 2025 production guidance of 14.7–16.7 million silver ounces and all-in sustaining costs of $6–$8 per ounce.

• Sustaining capital of $70–$80 million budgeted for infrastructure upgrades; $22–$28 million allocated for an underground conveyor system expected online in late 2026.

• 50,500 m of drilling planned in 2025 to expand the resource base, with ongoing exploration at Juanicipio, Deer Trail, and Larder projects.

• Focus on maintaining nameplate 4,000 tpd milling rate at Juanicipio and continued optimization of plant operations.

• Future dividends expected to include a cash flow-linked component, reflecting strong cash generation.