Q: Can I have ur opinion on this?have owned for a bit and is a major disappointment. Move on or hang in ?
5i Research Answer:
MAG does not have any direct operations to generate revenue, but the company does possess a long-term investment of 44% interest in Minera Juanicipio – a Mexico company mining company with high-grade silver assets. MAG continues to have negative cash flow (-$7M in the last 12 months). MAG is debt free with $58M cash, but share momentum is very weak. We would consider it OK for the silver sector, but the sector needs to cooperate for shares to do better. It is not particularly cheap at 19X earnings. We think investors can sit this one out for a while.