MAG Silver Hits New Highs in Q2 Production Report
MAG Silver Corp. (MAG:TSX; MAG:NYSE American) reports its production figures for the second quarter ending June 30 from the Juanicipio project, which it operates jointly with Fresnillo Plc. (56% Fresnillo, 44% MAG Silver). Find out why one analyst has increased the price target on the stock.
MAG Silver Corp. (MAG:TSX; MAG:NYSE American) reported its production figures for the second quarter ending June 30 from the Juanicipio project, which it operates jointly with Fresnillo Plc. (56% Fresnillo, 44% MAG Silver).
The Juanicipio facility processed 343,000 tonnes (kt) of ore during Q2, marking a slight increase from the previous quarter and aligning with the plant's daily capacity of 4,000 tonnes, the company said in a release.
The average silver head grade for the quarter was 417 grams per tonne (g/t), which is at the upper limit of the company's 2025 grade projections, with a year-to-date average of 423 g/t. Gold grades remained stable, and there were significant improvements in both lead and zinc grades, underscoring the robust polymetallic nature of Juanicipio's mineralization.
Preliminary production figures for Q2 include 4.3 million ounces silver (Moz Ag) and 10,465 ounces gold (Au). There was also a notable increase in the production of lead and zinc, rising 9% and 21% quarter-over-quarter, respectively.
The production for the first half of 2025 totaled 8.8 Moz Ag and 20,663 ounces Au, positioning Juanicipio well to achieve its full-year production targets. Detailed financial and operational results are scheduled to be released on August 11, MAG said.
"Juanicipio continues to excel, proving its capability as a top-tier, silver-focused polymetallic operation," President and Chief Executive Officer George Paspalas said. "We achieved another quarter of solid throughput and metal production, with silver grades at the high end of our 2025 guidance."
Firm Increases Price Target by 17%
MAG saw its price target increased by 17% by ROTH Capital Partners following the acquisition proposal from Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ), as reported by Joe Reagor, managing director and senior research analyst, in a June 30 research note. He increased the target to US$22 in a July 23 note after the production figures were released.
"The small silver production beat can be attributed to slightly higher than anticipated throughput, while the lead and zinc production beats were driven by higher than anticipated grades," Reagor wrote. "On the other hand, the gold production miss was driven by lower than anticipated grades. Thus, we view production as mixed. We also note our EPS estimate increased slightly, which makes it an overall positive quarter, in our opinion."
MAG saw its price target increased by 17% by ROTH Capital Partners following the acquisition proposal from Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ), as reported by Joe Reagor.Pan American has agreed to purchase all issued and outstanding shares of MAG Silver Corp., with the transaction valued at approximately US$2.1 billion, translating to US$20.54 per MAG share. This valuation is based on the closing price of Pan American's common shares on the New York Stock Exchange as of May 9.
This acquisition mitigates risk for MAG shareholders by diversifying their concentrated investment in the Juanicipio mine into broader equity ownership within Pan American. Additionally, shareholders will benefit from being part of a larger, established silver producer that has distributed over US$1 billion to its shareholders since 2010.
Other advantages for MAG include enhanced trading liquidity in both U.S. and Canadian markets and the possibility for Canadian shareholders to receive a partial or full tax-deferred rollover for income tax purposes.
Expanding Exploration in Mexico
Situated along Mexico's Fresnillo Silver Trend, the Juanicipio site is currently expanding its exploration efforts, targeting several promising areas, with only 10% of the property explored so far.
According to Bujon Capital in a May 24 article on Seeking Alpha, "Juanicipio stands out as one of the premier primary silver mines globally, boasting a lengthy economic lifespan, substantial exploration upside, and low operational costs."
In addition to Juanicipio, MAG is advancing two other exploration-stage projects. The Larder project spans 3,370 hectares in Canada's Abitibi Greenstone Belt, strategically located between the extensive Kirkland Lake/Macassa gold system, which contains over 70 million ounces, and the historically productive Kerr-Addison mine, which produced over 11 million ounces. Drilling at Larder, which began in 2020, has validated significant potential along and adjacent to the primary Cadillac Larder Break. In the previous year, MAG completed drilling totaling 41,000 meters.
The second project, Deer Trail, is a silver-rich site situated in Utah's Piute County. This project holds promise for significant porphyry and carbonate replacement deposits across 7,250 hectares. Geological assessments have identified eight major targets for the forthcoming 2025-2026 drilling campaign, with the fourth phase of drilling currently underway.
The Catalyst: Metal Sees Major Increase This Year
According to a report by Polina Devitt and Sherin Elizabeth Varghese for Reuters on July 23, silver prices reached their highest point in decades Wednesday, driven by concerns over U.S. tariff policies, indications of market tightness, and increasing investor interest in alternatives to gold. Spot silver rose 0.3% to US$39.40 per troy ounce.
Silver, valued both as a precious and industrial metal, has seen a 36% increase this year, surpassing gold's 31% rise and nearly touching the critical $40-per-ounce threshold. The metal's record high was US$49.45 in 1980.
The impending U.S. plan, announced by President Donald Trump, to implement a 50% import tariff on copper starting August 1, along with expanded tariffs on Mexican imports, has widened the gap between U.S. futures for silver and other metals and their London benchmarks this July, contributing to rising lease rates in the spot market.
Streetwise Ownership Overview*
MAG Silver Corp. (MAG:TSX; MAG:NYSE American)
*Share Structureas of 6/20/2025Source: MAG Silver Corp.While gold, silver, platinum, and palladium were exempt from Trump's reciprocal tariffs introduced in April, "the broader market isn't reacting in kind and seems to be taking cues from Comex copper's playbook," stated Nicky Shiels, head of metals strategy at MKS PAMP.
Shiels predicts that spot silver prices could reach US$42 per ounce this year. Analysts have also observed that industrial demand for silver, which is on track for its fifth consecutive year of structural market deficit, remains robust, while investment demand continues to strengthen.
Ownership and Share Structure
According to Refinitiv, 14 strategic entities own 3.11% of MAG. The Top strategic shareholder is Industrias Penoles SAB de CV with 2.3%.
Numerous institutional investors hold 54.95%. The Top 3 are Van Eck Associates Corp. with 8.09%, First Eagle Investment Management LLC with 7.53% and Sprott Asset Management LP with 2.59%. The rest is in retail.
MAG Silver has 103.46 million outstanding shares and 100.22 million free float traded shares. Its market cap is CA$3.12 billion. Its 52-week range is CA$15.64-29.83 per share.
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Important Disclosures:
MAG Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pan American Silver Corp.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.