The Investment Doctor
Long/short equity, value, debt, base metals

Is MAG Silver A No-Brainer?

Introduction

In this article I'll have a closer look at MAG Silver (NYSEMKT:MVG) which owns 44% of the Juanicipio silver project as main asset. I will provide a background of the project and will tweak some numbers to see if the project is still viable at a lower silver price. I will also include the new Mexican mining tax in my new calculations.

I will also discuss the risks associated with an investment in MAG Silver and how the capital expenditures of the Juanicipio could be financed. Thereafter I will briefly discuss the company's second project in Mexico which is called Cinco de Mayo. This will result in my investment thesis at the end of this article.

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