MAG Silver (MAG) - 2024 Q4 - Annual Report

Financial Performance - MAG reported a net income of $77,779, equating to$ 0.75 per share, with adjusted EBITDA of $186,734 for the year ended December 31, 2024[2]. - Net income for the year ended December 31, 2024, was$ 201,541, up from $129,428 in 2023[21]. - Adjusted EBITDA attributable to the company increased to$ 186,734 in 2024 from $97,613 in 2023[44]. - Cash flow from operating activities for 2024 was$ 356,691,000, a significant increase from $145,064,000 in 2023[46]. - Juanicipio free cash flow reached$ 292,349,000 in 2024, compared to $60,814,000 in 2023[46]. - Working capital improved to$ 160,113 as of December 31, 2024, compared to $67,262 in 2023[31]. Production and Operational Efficiency - A total of 1,342,786 tonnes of ore were mined, representing a 22% increase over 2023, while 1,328,178 tonnes were processed, a 5% increase from the previous year[14][15]. - Silver production reached 18.6 million ounces, with equivalent silver production at 26.8 million ounces, reflecting strong operational performance at the Juanicipio mine[2]. - The company processed 1,328,178 tonnes in 2024, a 5% increase in tonnes processed compared to the previous year[23]. - Silver metallurgical recovery improved to 93% from 87% in 2023, attributed to the start of commercial pyrite and gravimetric concentrate production[2][16]. Cost Management - The cash cost per silver ounce sold was$ 0.88, and the all-in sustaining cost was $5.54 per silver ounce sold, demonstrating effective cost management[2][17]. - Cash cost per silver ounce sold decreased significantly from$ 6.07 in 2023 to $0.88 in 2024[35]. - All-in sustaining cost per silver ounce sold improved from$ 10.32 in 2023 to $5.54 in 2024, indicating better cost management[38]. Sales and Revenue - Sales increased by$ 185,077 to $627,366 in 2024, driven by a 14% increase in metal volumes and a 19% increase in realized metal prices[21]. - Gross profit rose to$ 382,648 in 2024, compared to $201,983 in 2023, reflecting improved operational efficiency[21]. - The average realized price per silver ounce sold increased from$ 23.66 in 2023 to $28.78 in 2024[38]. - Realized prices for 2024 included$ 28.78/oz for silver and $2,430.76/oz for gold, impacting equivalent silver production calculations[59]. Future Outlook and Investments - For 2025, silver production at Juanicipio is forecasted between 14.7 million and 16.7 million ounces, with cash costs expected to range from$ 1.00 to $1.00 per ounce sold[6]. - Expansionary capital expenditures for 2025 are estimated between$ 22 million and $28 million, aimed at enhancing mining efficiencies[4]. - The updated technical report on Juanicipio indicated a 33% increase in mineral resources and a 15.4 million tonnes mineral reserve estimate at 628 g/t equivalent silver grade[3]. - MAG entered into an exploration agreement with Apollo Silver Corp. for the Cinco de Mayo Project, allowing for potential future growth through exploration[6]. Exploration and Development - The company is executing multi-phase exploration programs at the Deer Trail Project in Utah and the Larder Project in Canada[48]. - Forward-looking statements include anticipated production rates and capital requirements for ongoing projects[53]. - The company emphasizes the importance of obtaining adequate financing for its exploration and development activities[54]. - Risks include potential increases in capital costs and changes in mineral production performance[55]. - The company plans to provide updates on the Deer Trail and Larder Projects in future reports[60]. Dividends - MAG declared an inaugural fixed dividend of$ 0.02 per share and an additional cash flow linked dividend of $0.16 per share, totaling$ 0.18 per share payable on April 21, 2025[2].