Roundup: MAG Silver, Gatos Silver, Torex Gold

Vancouver-based MAG Silver increased Juanicipio’s 2024 guidance due to continued operational outperformance in the first half of the year, as reported by operator Fresnillo. 

The mine located in Mexico’s Zacatecas state is expected to produce 16.3-17.3Moz of silver (previously 14.3-15.8Moz), yielding 14.5- 15.4Moz of silver sold (previously 13.2-14.6Moz) at all-in sustaining costs of US$8.50-9.25/oz (previously US$9.50-10.50/oz), the miner said in its Q2 results report. 

In Q2, Juanicipio achieved silver production and silver equivalent output of 5.0Moz and 7.1Moz, respectively.

The company said underground infill drilling at Juanicipio continued in Q2, primarily focusing on upgrading mineralization in areas expected to be mined soon. During the quarter, 10,699m were drilled.

Gatos Silver

Gatos Silver expects to update its Cerro Los Gatos life of mine extension plan in Q3, the company said in its Q2 results report.

The company has a 70% interest in the Los Gatos joint venture (LGJV), which in turn owns the Cerro Los Gatos (CLG) mine in Mexico’s Chihuahua state. 

In Q2, silver equivalent production was 3.88Moz, an increase of 18% from the second quarter of 2023.

“The LGJV generated record revenue and free cash flow in quarter, reflecting significantly lower unit operating costs and higher metal prices combined with the strong previously reported production at CLG,” Gatos Silver’s CEO, Dale Andres, said.

“We remain on track to achieve 2024 production and cost guidance and we continue to expect that our updated life of mine plan scheduled for the third quarter of 2024 will further extend CLG’s mine life.” 

Gatos expects both silver equivalent and silver production to reach the previously announced guidance ranges of 13.5-15.0Moz and 8.4-9.2Moz for full year 2024.

Torex

Toronto-based Torex Gold delivered gold production of 113,822oz in Q2, up 5.9% from 2Q23 with an average recovery of 90.5%, the second consecutive quarter with recoveries above 90%.

The Mexico-focused miner said in a release that with strong production through the first half of the year, Torex is on track to achieve annual guidance of 400,000-450,000 oz, which assumes a planned one-month shutdown of the processing plant in the fourth quarter as part of the US$950mn Media Luna project, part of its Morelos complex that also includes ELG.

"With another strong quarter behind us, we are on track to deliver on our commitments from ELG while concurrently concluding the Media Luna project. First half gold production of 229,316oz places us firmly on pace to deliver on production guidance for the sixth year in a row,” CEO Jody Kuzenko said.

“As outlined in our recent quarterly update, the Media Luna project remains on track to deliver first copper concentrate production by year-end and to achieve commercial production in Q1 2025.”