MAG Silver Corporation

Hello everyone and welcome to MagSilver's Q3 2024 results videocast. Please refer to our financial statements and MD&A posted on our website or filed on CDAR and EDGAR for further details. So let's take a look at the Q3 results from the Wanosipio mine, which is operated by Fresneo PLC, our 56% partner in the operation and they are the operator. All information related to the Juanosipio mine today will be discussed here on a 100% basis. We continued to build on the robust foundation set in the first half of the year with Q3 production of 4.9 million ounces of silver and 7.1 million ounces of silver equivalent production. The processing plant continued to deliver name plate processing rates per operating day, milling 332,000 tonnes of ore at an average silver grade of 481 grams per tonne and an average silver recovery of 95.1% up from 92.4% in Q2. The recovery improvement this quarter was driven by consistent pyrite and gravimetric concentrate production at Juan Ocipio, which delivered incremental silver and gold recovery. Strong operations continue to be supported by robust commodity prices. Gross revenue, including by-products, totaled $187 million on silver equivalent sales of 6.2 million ounces. Treatment and refining costs for the quarter were around $10.7 million, delivering total sales of $176 million. The cost performance was equally impressive. with the mine delivering negative cash operating costs of $0.12 per silver ounce sold, boosted by strong by-product production and pricing, with all-in sustaining costs coming in at $3.29 per silver ounce sold. That is truly an industry-leading result. On an equivalent basis, the mine delivered an equally impressive industry leading result with cash operating costs of $8.37 and all in sustaining costs of $10.81 per silver equivalent outsold. This performance represents a record for One Ocipio as it has continued to optimise operations, metal realisation rates and focus on cost control. We are very pleased with the cost performance at One Ocipio and we hope to see further improvements through the remainder of 2024 and into 2025. The positive pricing environment, together with the positive cost performance, delivered strong margin expansion for the quarter, with 1 Escipio generating a cash operating margin of 78% and a record all-in sustaining margin of $120 million in Q3. Q3 continued to be a strong cash generation quarter for One Ocipio, driven by the delivery of stable operating costs and expanding equivalent production in a supportive commodity price environment. One Escipio generated cashflow from operations of $110 million for the quarter, with the mine generating $97 million in free cashflow. From a corporate perspective at MagSilver, our equity accounted income from the joint venture was $26 million, yielding net income of 22 million or 22 cents per share for the quarter. Our adjusted EBITDA was $56 million. During the quarter, MAG continued to repatriate excess cash from Juan Escipio with $23 million in interest and loan payments received. MAG's cash position continued to build, closing the quarter with $113 million and no debt. We also continued to progress our exploration programs during the third quarter. MAG continues to advance its exploration efforts across two major projects which we own 100%. The Deer Trail project in Utah and the Larder project in Ontario. At Deer Trail, MAG is pursuing a potential silver rich carbonate replacement deposit with a drilling program targeting a porphyry hub, and manto spokes, areas that could reveal extensive mineralization across the property. MAG's Phase 3 drilling in late 2023 intercepted alteration and mineralisation in line with what is expected on the edges of porphyry systems, while the current Phase 4 drilling follows up on the Carissa Discovery Zone with additional drilling planned for summer 2025. Meanwhile, the LADA project in Ontario has seen active exploration since its acquisition in 2022, with 29,811 metres drilled to date in 2024. Key targets include the Twist, Swansea, the Long Conglomerate and Curvit zones, where recent geophysical surveys have pinpointed promising anomalies. and the acquisition of the contiguous gold stake property in March of this year adds potential high-grade zones to MAG's expending portfolio of targets at LADA. The latest drilling continues to test structures along the Cadillac LADA break, a renowned area for high-grade orogenic gold systems. At Juan Ecepio, the exploration program is moving ahead with promising results. In Q3, 8,248 meters of underground drilling were completed, bringing the year-to-date total to 30,218 meters, mainly focused on infilling key veins within the Valdecanes vein system. Initial assays are confirming continuity in grade and thickness across Valdecanes, Ramal 1, Anticipata, and the Venatus veins. Surface drilling, which was initiated in April 2024 on the Kanata Honda structure, has covered 14,314 meters so far, yielding high-level mineralization indicators and importantly, a significant down dip extension of the one acipio vein. For those of you who've been with us for a while, you may remember the one acipio vein was the initial discovery on the property. And this is the first time we've actually been able to go back and drill there. With both programs on track, the year's target is 50,000 metres with further assays pending to guide ongoing exploration. We continue to work with Fresneo to unlock the potential of both near mine and regional exploration at Juan Ocipio. So now turning to our outlook. Juan Escipio achieved solid milling rates, continued improvements in recovery, and exceptional head grades in a very supportive commodity price environment. With the continued operational outperformance, we expect silver head grade at Juan Escipio to be at the top end of the increased grade guidance, which is a range between 420 and 460 grams per tonne of silver for 2024. Well, thank you for watching today and I look forward to our next videocast in March next year when I'll update you on the full year results.