The Richmond Club

Mining

Why to buy MAG Silver shares before it becomes a high profit margin producer in two years

By Galit Solomon and Annemarie Brissenden for The Richmond Report

Apr 11, 2019

4 min. read

Here's what you need to know

  • Over the next 18 months, we will move towards production.
  • We are currently finalizing our operational contracts with our partner Fresnillo, working towards a formal public production decision.
  • We had a successful drilling program last year and we are looking towards an exciting and successful program in 2019.

The underground development of the Juanicipio site has been underway at the jointly held property for five years. “We will commence construction of the process facility in 2019. This will culminate in the completion of the first stage of development of Juanicipio in 2020.” The goal is to create a 4,000 tonnes-per-day high grade operation. In addition to the Juanicipio property, MAG Silver also owns 100% of the Cinco de Mayo Property in Mexico and it continues to seek other high grade and district scale opportunities. As was the case for many companies, market conditions in 2018 impacted MAG Silver as well. “2018 was a challenging year compared to past years where we were less influenced by harsh market conditions. We had anticipated some developments last year that will now occur in 2019.”  Paspalas explains, “These developments and changes will drive MAG Silver closer to our goal of production and cash flow and an increase in shareholder value.”

Paspalas has been working in the mining industry for three and a half decades. A native of Australia, Paspalas is a Chemical engineer by trade. He describes himself as an operator. “I believe my technical education enabled me to make sound operating and project development decisions during my career and helped establish my reputation as a credible mine builder and operator. I bring a broad range of experiences to the company, as do the other seven members of our team.” Being a smaller group, everyone has an instrumental role to play at MAG Silver. “We have all experienced down turn cycles. If we don’t see an asset that we believe can withstand two downcycles we don’t look at it.”

Focused on value and a long-term

“Being a public company provides a great opportunity for a wide range of investors to share in the value creation that MAG has provided and will continue to provide as we head into production at Juanicipio,” says Paspalas. “What investors need to know about the people at MAG Silver is that we are focused on value and a long-term view.” The team anticipates high margins and robust cashflow for investors. “We are going to be the largest silver mine in the world when production begins in 2020.”

Paspalas concludes, “A lot of investors are looking at our company as it stands currently but for MAG Silver and the Juanicipio property, this is only the beginning on both an exploration and operational basis. There is much more of a growth story for our shareholders in the years to come.”

Beckett's reasons for investing in MAG Silver

  • Over the next 18 months, we will move towards production.
  • We are currently finalizing our operational contracts with our partner Fresnillo, working towards a formal public production decision.
  • We had a successful drilling program last year and we are looking towards an exciting and successful program in 2019.

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