MAG Silver Guides To Production Decline In 2025
Mag Silver (TSX: MAG) has finally released its fourth quarter and full year 2024 production results, making them one of the last companies to do so. Initial guidance for 2025 was also released this morning.
The fourth quarter saw Mag’s Juanicipio mine process 333,612 tonnes of ore, resulting in the production of 4.3 million ounces of silver, 9,041 ounces of gold, 9.9 million pounds of lead and 15.6 million pounds of zinc. Ore processed during the quarter had an average head grade of 417 g/t silver, 1.15 g/t gold, 1.49% lead and 2.79% zinc.
Production in the fourth quarter was down substantially relative to the third quarter with silver recoveries declining 12.9%, from 4.9 million ounces in Q3, and gold recoveries declining 16.3% from 10,801 ounces. Lead and zinc recoveries were also down 7.3% and 6.7%, respectively.
Production for the full year amounted to 18.57 million silver ounces, 36,729 gold ounces, 28.4 million pounds of lead and 44.8 million pounds of zinc. For the full year, silver production improved 10.5%, while gold production improved 6.3%. Lead and zinc production saw substantial improvements, growing 38.3% and 47.2%, respectively, versus 2023. Silver production also beat revised guidance by 1.3 million ounces.
In terms of guidance, silver production in 2025 is expected to range between 14.7 and 16.7 million ounces, which based on estimated head grades in a range of 380 to 430 g/t silver and 1.2 to 1.4 g/t gold. Production is said to be weighted towards the second and third quarters as a result of mine sequencing.
“Delivering silver production of nearly 19 million ounces in 2024 is a testament to the quality and resilience of the Juanicipio project and the quality of the team’s execution. [..] While guidance reflects expected variability in grades and production rates due to mine sequencing, it underscores the sustainable operation we have built at Juanicipio,” commented CEO George Paspalas.
Mag Silver currently holds a 56% interest in Juanicipio, with Fresnillo owning the remaining 44% interest. Figures were presented on a 100% basis.
Mag Silver last traded at $21.10 on the TSX.
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