Q: Thoughts on MAG earnings and given they just introduced what looks like a sizeable dividend? Would you rate it higher than the other medium/large silver producers like PAAS now?
5i Research Answer:
We always like the introduction of a first-ever dividend. The regular yield starts at 0.48% but there is also a 16c special dividend. For the Q4, EPS of 18c missed estimates of 21c; revenue of $160.2M beat estimates of $153.8M. EBITDA of $48M was well ahead of estimates. EPS rose nicely year over year, largely due to higher contribution from the Juanicipio Mine. 2025 production guidance for the mine is 14.7M to 16.7M ounces of silver. MAG maintains a very clean balance sheet with $162M cash. Consensus calls for about 10% earnings growth this year. Results are decent, certainly. It is a bit cheaper than PAAS and also much smaller. But we would be comfortable buying either.