MAG Silver Corp (MAG) 2024 Q4 法說會逐字稿

Hello everyone and welcome to Mag Silver's Q4 and full year 2024 results videocast. I'm George Paspala, President and CEO here to walk you through another strong performance from MAG and the one that CPO mine.

For all the details, please check our financial statements and MDNA on our website, CEA Plus or EDA.

Let's dive in. Starting with one SippiO, where we hold a 44% stake, operated by our partners Fresno PLC who own 56%.

All figures here are on a 100% basis unless otherwise noted.

In Q4, we processed around 334,000 tons of ore at a silver head grade of 417 g per ton, or 652 silver equivalent grams per ton, factoring in the gold, lead and zinc.

That delivered production of 4.3 million silver ounces.

And 6.2 million silver equivalent ounces. For the full year, we processed 1.33 million tons, producing 18.6 million silver ounces and 26.8 million ounces of silver equivalent.

These are standout results that showcase one Osippio as a high grade tier one silver asset.

On the sales front, Q4 brought in $167 million from 5.4 million silver equivalent ounces sold, while the year totaled $663 million from $23 million silver equivalent ounces sold.

Treatment and refining costs came in at $6.3 million for Q4 and $35.3 million for the year.

Benefiting from recent favorable benchmark adjustments.

And we capitalize on a strong commodity price environment, leaving us with sales of $160 million and $627 million for Q4 and 2024 respectively.

Costs are where one of CipPO really stands out in a good sense.

Q4 cash costs were just $0.05 per silver ounce sold, with all in sustaining cash costs at $8.71 per ounce.

For the year, we averaged cash costs and all in sustaining costs of $0.88 and $5.54 respectively.

On an equivalent basis.

Q4 came in at $8.80 and $15 with the year at $8.67 and $12.03 per equivalent ounce.

These are top tier standout numbers.

Reflecting disciplined operations, robust production.

And strong byproduct credits.

Margins remain solid, really solid. Q4 and 2024 both delivered a 76% cash operating margin, with $99 million and $383 million in gross profit, respectively.

Cash flow was equally strong. Q4 operating cash flow reached $112 million with free cash flow of $79 million.

For 2024, we generated $357 million in operating cash flow, and $292 million in free cash flow.

These figures highlight one of SipPO's ability to deliver consistent value.

At the corporate level, MAG's 44% stake in one Osippio drove $23 million in Q4 equity income and $93 million for the year.

Net income was $19 million or $0.18 per share in Q4.

And $78 million or $0.75 per share for 2024.

Adjusted EITA hit $48 million in Q4.

And $187 million for the year.

Our cash position grew to $162 million by year end with no debt, bolstered by $54 million from one Osipio in Q4, $27 million in loan repayments, and most importantly, $26 million in dividends, marking an important milestone in the capital return story from Juan Osippio. Now that's a solid foundation for growth.

Exploration remains a cornerstone for us.

At WaipPO we exceeded our 50,000 m drilling target, completing 55,353 m in 2024 36,216 m underground.

And 19,137 m from surface.

Underground infill drilling confirmed continuity in the Valdearnes vein system, whilst surface drilling at Kannada Honda showed promising signs of high-level mineralization and extending the one sippio vein 450 m down dip.

With only 10% of the property explored, the potential here is huge. We continue to collaborate with our partners at Fresnio to unlock the ultimate value of Juana Sippio.

Elsewhere in the portfolio, Deer Trail in Utah saw 5,847 m drilled, expanding the Kerissa-san discovery to a 400m to 700 m area of copper, silver, zinc mineralization.

We also intersected high grade extensions in the deer trail mine corridor and discovered a nodular gold zone, improving our understanding of the mineralized system at deer trail.

The success we achieved expanding the Carissa zone has given us a good indication of where some of the porphyfrey hubs are likely located, which we believe bookends one extent of the mineralization.

Our intention for 2025 is to conduct reverse circulation drilling as a trial to pre-collar future diamond holes as a mean to reduce overall drilling costs.

A site-wide seismic survey is also planned to enable a thorough technical insight, allowing us to generate the most prospective targets for future diamond drilling when we decide to drill again.

At the Lala project in Ontario, we drilled 41,447 m.

We doubled our footprint with the gold stake acquisition.

And hit notable grades like 42.1 g per ton gold over 1.5 m in grab and channel sampling on the property. These efforts are laying the groundwork for future success.

We saw very good grades at surface on the Gold state property, and this is our priority drill area during summer of 2025.

Looking ahead Silver production at one CPO is forecast to range between 14.7 million and 16.7 million ounces, yielding between 13.1 million and 14.9 million payable ounces.

This guidance is based on a throughput rate of 4,000 tons per operating day at a head grade range of 380 g per ton to 430 g per ton of silver.

By-product cash costs are forecast to be between negative a dollar and a dollar per ounce, and byproduct, all in sustaining costs between $6 to $8 per ounce.

Sustaining CapEx of $70 million to $80 million will support tailings, electrical and pumping infrastructure, equipment rebuilds, and ventilation upgrades.

We'll drill another 50,500 m to unlock more potential at Juan Osippio.

At deer trail and larder, 2025 plans are shaping up well, with drilling set to resume mid-year. Following a deep geological synthesis.

And cost optimization being conducted at both projects. With continued strong prices and low costs, we're well positioned for another great year in 2025.

We're also sharing the success with our shareholders. Our new dividend policy delivered an inaugural payment of a quarterly fixed $0.02 per share dividend, which we will maintain going forward, plus an additional $0.16 per share, representing 30% of cash received from one A Sippio during the quarter, bringing the total dividend to $0.18 per share. And payable April 21. This inaugural dividend.

With both fixed and cash flow link components, demonstrates our dedication to delivering consistent value, while sharing one of CipPO's operational and financial success with our shareholders.

That wraps up 2024, a year of standout results at Juan CPO, exciting exploration progress.

Initiation of capital returns to shareholders and a very robust financial position.

Thanks for joining me today. I'll see you in May for our Q1 2025 update.

Until then, please stay engaged and take care.