MAG Silver Corp.'s (MAG:TSX; MAG:NYSE American) Q1/25 financial results were a beat, reported Joe Reagor, managing director and senior research analyst, ROTH Capital Partners, in a May 9 research note.
"Results were above expectations due mainly to a lower-than-estimated corporate tax rate," Reagor wrote. "Otherwise, operations continue to perform well."
Dividend Declared
MAG will pay shareholders a US$0.20 dividend, its second ever, later this month, Reagor reported. Strong cash flow in Q1/25 and receipt of US$61.5 million in cash from the Juanicipio joint venture (JV) in April 2025 led to the dividend announcement.
The analyst pointed out that the dividend amount could drop in the future because MAG is expected to increase its capital spending throughout the rest of this year. This in turn could reduce free cash flow from the JV.
EPS Beat Surprising
Reagor reported that the standout result in Q1/25 was MAG's earnings per share of US$0.28 beat ROTH's estimate of US$0.22. This primarily was due to a lower-than-anticipated corporate tax rate, and thus the beat most likely was an exception due to circumstances, noted the analyst. For the rest of 2025, Reagor expects results to be "steady."
Target, Rating Unchanged
On the news, ROTH maintained its US$16 per share target price and Neutral rating on MAG Silver, noted the analyst. The mining company is trading at the time of the report at about US$15.93 per share.
The Q1/25 results increased ROTH's annual discounted cash flow estimate on the Canadian producer by US$0.01 per share, Reagor reported, but MAG's announced dividend payment more than made up for it.
As for other MAG stock data, the company has 103.45 million outstanding shares. Its market cap is US$1.6 billion. Its 52-week range is US$11.58–17.99 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for ROTH Capital Partners, MAG Silver Corp., May 9, 2025
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. 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. Disclosures: ROTH makes a market in shares of MAG Silver Corp. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2025. Member: FINRA/SIPC.
