VANCOUVER, British Columbia, June 29, 2019 – Shares of MAG Silver Corp. (NYSE: MAG) declined -1.64% to $10.49. The stock traded total volume of 97.602K shares lower than the average volume of 265.24K shares.
MAG Silver Corp. (MAG) reported a loss of $3.80M in its fourth quarter. The Vancouver, British Columbia-based company said it had a loss of 4 cents per share.
FINANCIAL RESULTS – YEAR ENDED DECEMBER 31, 2018:
As at December 31, 2018, the Company had working capital of $129.316K (December 31, 2017: $159.906K) counting cash and cash equivalents of $130.180K (December 31, 2017: $160.395K cash and term deposits). The Company presently has no debt and believes it has sufficient working capital to maintain all of its properties and presently planned programs for a period in excess of the next year. The Company makes cash advances to Minera Juanicipio as ‘cash called’ by the operator, Fresnillo, based on approved joint venture budgets. In the year ended December 31, 2018, the Company funded advances to Minera Juanicipio, which combined with MAG’s Juanicipio expenditures on its own account, totaled $23.942K (December 31, 2017: $19.435K).
The Company’s net loss for the year ended December 31, 2018 amounted to $5.802K (December 31, 2017: $6.497K) or $0.07/share (December 31, 2017: $0.08/share). Share based payment expense, a non-cash item, recorded in the year ended December 31, 2018 reduced slightly to $2.109K (December 31, 2017: $2.268K), and is determined based on the fair value of equity incentives granted and vesting in the year. During the year ended December 31, 2018, the Company sold its non-core Lagartos concessions and related exploration data in the Zacatecas Silver District to Defiance Silver Corp resulting in a net gain in other income of $1.151K after transaction costs (December 31, 2017: nil). The Company also earned interest income on its cash and cash equivalents of $3.118K (December 31, 2017: $1.755K) during the year ended December 31, 2018, and recorded its 44% equity income pick up of $227 (December 31, 2017: $308) from Minera Juanicipio. In addition, the Company recorded an unrealized loss of $622 (December 31, 2017: $342 unrealized gain) on warrants held and designated as fair value through profit and loss. The Company recorded a deferred tax expense of $796 for the year ended December 31, 2018 (December 31, 2017: $728) in relation to the change in temporary timing differences between the book and tax base of its Mexican non-monetary assets.
MAG has the market capitalization of $917.40M and its EPS growth ratio for the past five years was 32.60%. The return on assets ratio of the Company was -2.90% while 43.40% of the stock was owned by institutional investors.