MAG Silver Reports Second Quarter Financial Results

Executive Summary

• MAG reported record Q2 2025 net income of $33.4 M ($0.32/share) and adjusted EBITDA of $56.4 M, driven by strong Juanicipio contributions.
• Shareholders approved a plan‑of‑arrangement transaction with Pan American Silver, allowing MAG shareholders to receive cash ($20.54 per share) or a mix of cash and Pan American shares; closing expected in H2 2025.
• Juanicipio delivered 4.3 M oz silver (6.6 M oz equivalent) with record low cash cost (‑$3.90/oz) and all‑in sustaining cost ($0.65/oz), while processing 342,500 t of ore at a 417 g/t silver head grade.

Key Details

• Transaction with Pan American Silver
• Arrangement Agreement signed May 11 2025; shareholders approved July 10 2025.
• Consideration: $20.54 cash per MAG share or $0.0001 cash + 0.755 Pan‑American shares per MAG share (prorated).
• Total cash component fixed at $500,000, remainder in Pan‑American shares.

• Closing subject to Mexican antitrust clearance and TSX/NYSE listing approvals; targeted H2 2025.

• Financial Highlights Q2 2025

• Net income: $33.4 M (vs $21.6 M YoY); EPS $0.32 (vs $0.21).
• Adjusted EBITDA: $56.4 M.
• Sales: $186.5 M, up $19.4 M YoY.
• Gross profit: $128.6 M, margin ↑ from 76% to 80%.

• Working capital: $170.1 M; cash on hand $171.8 M; no long‑term debt.

• Juanicipio Operating Performance

• Ore processed: 342,515 t (↑2% YoY); silver head grade 417 g/t (equiv. 661 g/t).
• Silver production: 3.83 M oz; equivalent silver production 5.65 M oz.
• Recovery: 94.6%, up from 92.4%.
• Cash cost per silver ounce sold: ‑$3.90/oz (record low).
• All‑in sustaining cost per silver ounce sold: $0.65/oz (record low).

• Operating cash flow: $110.6 M; free cash flow: $92.9 M.

• Dividends

• Second dividend paid May 28 2025: $0.20/share (total $39.3 M).

• Third dividend declared Aug 8 2025: $0.144/share, payable Sept 1 2025.

• Exploration Updates

• Juanicipio underground drilling Q2 2025: 9,494 m (assays pending); focus on infill and deep skarn targets.
• Surface drilling Q2 2025: 6,174 m, testing Cañada Honda & Magdalena structures; Mesa Grande drilling slated Q3 2025.
• Deer Trail (UT) – geophysical program launched; 9 km 2D seismic completed in Gold Gulch.

• Larder (ON) – Phase 1 drilling at Italian Zone: 5,243 m in nine holes; notable intercepts:

  • 21.0 g/t Au over 0.5 m (LP‑25‑001)
  • 12.4 g/t Au over 0.5 m (LP‑25‑004)
  • 16.4 g/t Au over 0.7 m (LP‑25‑005)

• Corporate

• Fourth annual sustainability report released June 19 2025.
• AGSM on June 18 2025 elected new board; John Armstrong appointed Chairman, Peter Barnes retired.

Notable Quotes

“Our record Q2 results underscore the strength of our partnership at Juanicipio and position us well for the upcoming transaction with Pan American,” – Fausto Di Trapani, Chief Financial Officer.