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

Is MAG Silver A No-Brainer?


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.


Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details