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MAG Silver (MAG) Q1 Earnings Miss Estimates, Up Y/Y

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MAG Silver Corp. (MAG - Free Report) reported adjusted earnings per share of 5 cents for first-quarter 2023, missing the Zacks Consensus Estimate of earnings of 6 cents. The company had reported earnings per share of 3 cents in the year-ago quarter.

The net income for the quarter was $4.7 million compared with $2.7 million in the first quarter of 2022. MAG Silver’s principal asset is the Juanicipio Project in Zacatecas, Mexico. The company has a 44% interest in Juanicipio, currently being developed with its operator Fresnillo Plc (FNLPF - Free Report) , which holds the remaining 56% stake.

MAG Silver Corporation Price, Consensus and EPS Surprise

 

MAG Silver Corporation Price, Consensus and EPS Surprise

MAG Silver Corporation price-consensus-eps-surprise-chart | MAG Silver Corporation Quote

MAG recorded income from Juanicipio of $7.9 million in the first quarter of 2023 compared with $13.7 million in the prior year quarter. This included a 44% share of net income from the sale of pre-production development and stope material, as well as loan interest earned on mining assets brought into use.

At the end of first-quarter 2023, MAG Silver had a cash balance of $55 million compared with $30 million at the end of December 2022, with no long-term debt.

The Juanicipio 2022 exploration program was completed in the fourth quarter of 2022. In the first quarter of 2023, 222,023 tons of mineralized development and stope material were campaign processed through the Fresnillo and Saucito plants, with 2,000,974 payable silver ounces, 5,291 payable gold ounces, 1,281 payable lead tons, and 1,656 payable zinc tons produced and sold.

At the end of first-quarter 2023, Juanicipio held 167 tons of lead concentrate and 715 tons of zin concentrate in inventory.

Price Performance

Shares of MAG Silver have lost 11.3% in the past year compared with the industry’s fall of 8.9%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Gold Fields Limited (GFI - Free Report) , and Steel Dynamics (STLD - Free Report) . GFI currently flaunts a Zacks Rank #1 (Strong Buy) and STLD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. GFI has a trailing four-quarter earnings surprise of 7.7%, on average. Its shares have gained 36.3% in the past year.

The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $15.99 for 2023. Earnings estimates have been revised 37% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 10.7%, on average. The company has gained 29.4% in a year.


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