MAG Silver Corp. MAG reported adjusted earnings per share of 9 cents for third-quarter 2023, missing the Zacks Consensus Estimate of earnings of 18 cents. The company had reported earnings per share of 8 cents in the year-ago quarter.

The net income for the quarter was $8.9 million compared with $8.2 million in the third quarter of 2022. MAG Silver’s principal asset is the Juanicipio Project in Zacatecas, Mexico. The company has a 44% interest in Juanicipio and the remaining 56% stake is with its operator, Fresnillo Plc FNLPF. Juanicipio completed its commissioning and ramp-up stage with Fresnillo, and achieved a nameplate capacity of 4,000 tpd in the quarter. 

MAG recorded income of $13.7 million from Juanicipio in the third quarter of 2023 compared with $11.8 million in the prior-year quarter. This included a 44% share of net income from the sale of pre-production development and stope material, as well as loan interest earned on mining assets brought into use.

MAG Silver Corporation Price, Consensus and EPS Surprise MAG Silver Corporation Price, Consensus and EPS Surprise

MAG Silver Corporation price-consensus-eps-surprise-chart | MAG Silver Corporation Quote

At the end of third-quarter 2023, MAG Silver had a cash balance of $58.5 million compared with $30 million at the end of December 2022, with no long-term debt.

In the third quarter of 2023, 322,249 tons of mineralized material were processed across the Juanicipio and Saucito plants.

Price Performance

Shares of MAG Silver have lost 37% in the past year compared with the industry’s fall of 13.4%. Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS and Universal Stainless & Alloy Products, Inc. USAP. CRS sports a Zacks Rank #1 (Strong Buy) at present and USAP carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares have gained 66% in a year.

Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP’s shares gained 87% in the last year.



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Carpenter Technology Corporation (CRS):Free Stock Analysis Report

Universal Stainless & Alloy Products, Inc. (USAP):Free Stock Analysis Report

Fresnillo PLC (FNLPF):Free Stock Analysis Report

MAG Silver Corporation (MAG):Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research