Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Large Precious Metals Player Entering 'Catalyst-Rich Period' in Mexico

Share on Stocktwits


BMO Analyst Andrew Kaip highlights what to expect from this developer in the near and more-distant future with a rating upgrade.

In a May 25 report, BMO analyst Andrew Kaip stated that the Juanicipio project, a joint venture between MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT) and Fresnillo Plc (FRES:LSE), is entering a "catalyst-rich period," with a revised "development plan to access the ValdecaƱas Deep Zone, the Dilatant Zone and the Anticipada vein earlier."

MAG Silver is will release an updated technical report in Q2/17 to incorporate recent drilling results "that will add to the current M&I resource (100%) of 248Moz silver and 1.4Moz gold." At the same time the Fresnillo board is expected to provide the go ahead on the construction of the revised development plan, Kaip stated.

Kaip points out that although MAG Silver is a development company, its "44% share of the high-grade Juanicipio project with first ore production expected in 2019," makes it a "defensive name."

The analyst also noted that "exploration upside still exists as the JV approved another 20,000m exploration program for 2017E." He also stated that "we believe a majority of this drill program will help to increase confidence in the near term mine life production and the remaining will be used to test regional targets within the JV property to confirm the continuation of other mineralized veins identified on the adjacent FRES property."

Kaip upgraded MAG Silver's recommendation "to Outperform (Speculative), taking advantage of recent share price weakness in front of key catalysts," maintaining a CA20 target price.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: MAG Silver Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The 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 interview or the decision to write an article, until one week after the publication of the interview or article.

Want to read more about Gold and Silver investment ideas?
Get Our Streetwise Reports' Resources Report Newsletter Free and be the first to know!

A valid email address is required to subscribe