Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on MAG Silver (MAG – Research Report) and increased the price target to $17.00 from $16.00.
Heiko Ihle has given his Buy rating due to a combination of factors surrounding MAG Silver’s operational and market performance. The company’s Juanicipio property continues to demonstrate strong production capabilities, with the latest quarterly results showing a robust output of 4.4 million ounces of silver and nearly 10,000 ounces of gold. Despite a minor quarter-over-quarter production decrease, which was attributed to a short maintenance shutdown, the operation’s daily throughput remained impressive, reinforcing the site’s high-grade mineral potential. This performance underpins the positive outlook for MAG Silver and supports the analyst’s investment thesis.
Additionally, Ihle’s optimistic stance is bolstered by upward revisions to the precious metal price deck in response to the rising prices of gold and silver, driven by macroeconomic factors such as inflation, the appeal of safe-haven assets, and recessionary concerns. The new price deck assumes gold at $2,100 per ounce and silver at $26 per ounce, which are conservative compared to current market prices, yet mark a substantial increase from previous estimates. This revision, coupled with the high-grade quality of MAG Silver’s orebody, a favorable joint venture agreement, and significant production potential, led Ihle to increase the price target for MAG Silver to $17, reinforcing the Buy rating.
In another report released on April 23, Canaccord Genuity also maintained a Buy rating on the stock with a C$22.00 price target.
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MAG Silver (MAG) Company Description:
MAG Silver Corp. engages in the exploration, acquisition, and development of mineral properties. It focuses on silver projects located in the Mexican Silver Belt including Juanicipio and Cinco de Mayo in Mexico. The company was founded on April 21, 1999 and is headquartered in Vancouver, Canada.
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