Why to buy MAG Silver shares before it becomes a high profit margin producer in two years
Company: MAG Silver Corp. MAG: TSX MAG: NYSE A
President & CEO: George Paspalas, Bachelor of Engineering (Chemical)
Headquarters: Vancouver, British Columbia, Canada
Number of locations: 2 – Juanicipio Property, State of Zacatecas and Cinco de Mayo Property, State of Chihuahua, Mexico
In current role: 5 years
Place of birth: Dorrigo, Australia
Prior job: President and CEO and Director, Aurizon Mines Limited
For eight consecutive years, Mexico has been named the world’s top silver producing country. It is also home to Canadian exploration and development company MAG Silver’s principal asset, Juanicipio Property in Zacatecas, Mexico. “One of every 10 ounces of silver ever mined existing on the planet as silver metal comes from this area,” says President, CEO
The Juanicipio property is being developed in partnership with the world’s largest primary silver producer, Fresnillo, with MAG Silver owning 44% of the property, and Fresnillo owning 56%. “Fresnillo is a successful, efficient, low-cost producer that provides shareholder value through multiple
The underground development of the Juanicipio site has been underway at the jointly held property for five years. “We will commence construction of the
Paspalas has been working in the mining industry for three and a half decades. A native of Australia, Paspalas is a Chemical engineer by trade. He describes himself as an operator. “I believe my technical education enabled me to make sound operating and project development decisions during my career and helped establish my reputation as a credible mine builder and operator. I bring a broad range of experiences to the company, as do the other seven members of our team.” Being a smaller group, everyone has an instrumental role to play at MAG Silver. “We have all experienced down turn cycles. If we don’t see an asset that we believe can withstand two downcycles we don’t look at it.”
“Being a public company provides a great opportunity for a wide range of investors to share in the value creation that MAG has provided and will continue to provide as we head into production at Juanicipio,” says Paspalas. “What investors need to know about the people at MAG Silver is that we are focused on value and a long-term view.” The team anticipates high margins and robust
Paspalas sites three reasons why investors should consider the stock at this time:
- Over the next 18 months, we will move towards production.
- We are currently finalizing our operational contracts with our partner Fresnillo, working towards a formal public production decision.
- We had a successful drilling program last year and we are looking towards an exciting and successful program in 2019.
Paspalas concludes, “A lot of investors are looking at our company as it stands currently but for MAG Silver and the Juanicipio property, this is only the beginning on both an exploration and operational basis. There is much more of a growth story for our shareholders in the years to come.”