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Silver Developer Expects to Commission Juanicipio Processing Plant in Q4
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BMO Capital Markets commented in a research report that MAG Silver Corp. remains on-track with the buildout of its advanced material processing plant at its Juanicipio JV project in Zacatecas state, Mexico expected in Q4/21.

BMO Nesbitt Burns Inc. (BMO Capital Markets) Analyst Ryan Thompson, CFA commented in a July 28 research note that MAG Silver Corp. (MAG:TSX; MAG:NYSE American) is on-track to complete construction and commence operations at its new material processing plant in Q4/21.

The Analyst noted that MAG Silver is proceeding with normal operations on the ground at the JV as construction efforts continue in parallel at the new processing facility. At present, the development ore mined from Juanicipio JV project is being processed at the Fresnillo processing plant. BMO Capital Markets advised that its attributed share of the production during Q2/21 was 191 Koz Ag and remarked that the total was a bit below its 225 Koz Ag forecast. Thompson added that MAG's attributed share of gold production in Q2/21was 346 oz.

Analyst Thompson indicated that 44,435 tonnes of material were processed at Fresnillo, which was just below the goal of 48,000 tonnes, or about 16,000 tonnes monthly. It is expected that production will remain steady at these levels until the new plant is finished later this year.    

BMO estimates that the JV which generated approximately $12 million in revenue from current operations and mentioned that it plans to utilize those proceeds to offset the projects capital expenditures. MAG Silver advised that floatation cells and filters were installed at the new plant in Q2/21 and stated that it anticipates that the new plan will be ready to open in as scheduled in Q4/21.

BMO Capital Markets advised that it presently has a "Market Perform" rating for MAG Silver Corp. with a target price of CA$23.50 per share. The company's shares trade on the Toronto Stock Exchange under the symbol MAG and are currently trading at CA$24.47/share.


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: MAG Silver Corp. Click here for important disclosures about sponsor fees.  
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of MAG Silver Corp., a company mentioned in this article.

Disclosures from BMO, MAG Silver, July 28, 2021 
Analyst's Certification
I, Ryan Thompson, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness ingenerating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Company Specific Disclosures
Disclosure 2: BMO Capital Markets has provided investment banking services with respect to MAG Silver within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from MAG Silver within the past12 months.
Disclosure 6A: MAG Silver is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services
Disclosure 9B: BMO Capital Markets makes a market in MAG Silver in United States.

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