Dr. Peter Megaw, MAG Silver: Higher Silver Price is Good, but Other Measures Matter Too

TL;DR

Dr. Peter McGaw, Chief Exploration Officer at Mag Silver, discusses the company's recent milestone of first production and its plans for future exploration work.

Transcript

i'm charlotte macleod with the investing news network and here today with me is dr peter mcgaw chief exploration officer at mag silver thank you so much for being here with me today it's a real pleasure at least virtually be with you at least virtually as as most meetings seem to be these days so let's jump right into our questions i think definite... Read More

Key Insights

• 🪘 Mag Silver has achieved its first production milestone after a long journey of exploration and development.
• 👻 The company's partners have effectively implemented COVID-19 protocols, allowing operations to continue.
• ✋ Mag Silver's high-grade production provides potential profitability and a stable investment opportunity.
• 🥳 Ongoing exploration work focuses on drilling the deeper parts of the Valdecañas vein system and obtaining permits for new drill targets.
• 👶 Mag Silver's acquisition of the Deer Trail property in Utah presents an exciting new project with significant potential for mineralization in a favorable geological setting.
• 👻 The company's association with Reyna Silver allows for the development of additional properties and opportunities for both companies.
• 🥈 The current economic uncertainty and governmental response to the COVID-19 pandemic contribute to the positive outlook for silver.

Questions & Answers

Q: How has Mag Silver managed the challenges posed by the COVID-19 pandemic during the production process?

Mag Silver's partners have implemented protocols that align with the government's regulations to ensure the safety and continuity of operations. The underground work continued uninterrupted, while surface work was temporarily paused for a month.

Q: Does first production mark the end of the work for Mag Silver?

No, reaching first production is not the end of the journey. The company still has exploration work ongoing, primarily focused on drilling off the deeper parts of the Valdecañas vein system and obtaining permits for other target areas on the property.

Q: What are the advantages of having high-grade production for Mag Silver?

The high-grade nature of the silver, along with significant gold and base metal credits, allows Mag Silver to have potentially low production costs. Even with a silver price drop, the project still has a 15% after-tax internal rate of return (IRR), providing stability for investors.

Q: Can you make any predictions about the future silver price?

Due to the high-grade nature of their projects, Mag Silver does not overly rely on the future silver price. While there are macroeconomic factors that can impact silver prices, the company's focus on producing high-grade material ensures profitability regardless of price fluctuations.

Summary & Key Takeaways

• Mag Silver has achieved its first production milestone after a long journey that began in 2003 when the discovery hole was drilled.

• The company's partners have successfully managed the challenges posed by the COVID-19 pandemic, with protocols that have been adopted by the Mexican government.

• The high-grade production from the project is helping Mag Silver gain extensive experience in milling before its own mill is commissioned.