MAG Silver Corp. (MAG): Análisis PESTLE [Actualizado en enero de 2025]

En el mundo dinámico de la minería de metales preciosos, Mag Silver Corp. se encuentra en la encrucijada de complejos desafíos globales y oportunidades innovadoras. Navegando por el intrincado panorama del sector minero de México, esta compañía con sede en Canadá enfrenta una variedad multifacética de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a su trayectoria estratégica. Desde el terreno accidentado de Zacatecas hasta los mercados de inversión globales, el viaje de Mag Silver es una narración convincente de resiliencia, adaptación tecnológica y desarrollo sostenible en una industria cada vez más examinada.

Mag Silver Corp. (Mag) - Análisis de mortero: factores políticos

Las regulaciones mineras de México impactan en las operaciones de Mag Silver

Mag Silver opera principalmente en el estado de Zacatecas de México, sujeto a regulaciones mineras específicas. La ley minera mexicana de 1992 gobierna los derechos de exploración y extracción de minerales.

Aspecto regulatorio	Detalles
Duración de la concesión minera	50 años, renovable
Impuesto a la extracción de minerales	7.5% del valor de producción bruta
Límite de inversión extranjera	100% de propiedad permitida

Tensiones geopolíticas entre Canadá y México

Acuerdos actuales de protección de inversión bilateral siguen siendo estables entre Canadá y México bajo el marco de la USMCA.

• Inversiones mineras canadienses totales en México: $ 7.2 mil millones a partir de 2023
• Compañías mineras canadienses que operan en México: más de 150
• Inversión de Mag Silver en operaciones mexicanas: aproximadamente $ 250 millones

Políticas gubernamentales sobre exploración mineral

El Ministerio de Economía de México supervisa las políticas de exploración mineral con requisitos regulatorios específicos.

Área de política	Marco regulatorio
Permisos ambientales	Evaluaciones obligatorias de impacto ambiental
Consulta comunitaria indígena	Requerido antes de las actividades de exploración
Tiempo de procesamiento del permiso de exploración	Promedio de 6-9 meses

Estabilidad política en las regiones mineras

El estado de Zacatecas, donde opera Mag Silver, ha experimentado una estabilidad política moderada con algunos desafíos de seguridad.

• Índice de seguridad del estado de Zacatecas: 5.2/10
• Informó incidentes de seguridad relacionados con la minería en 2023: 37
• Apoyo a la inversión minera del gobierno local: moderado

Mag Silver Corp. (Mag) - Análisis de mortero: factores económicos

Los precios de la plata fluctuantes afectan directamente el potencial de ingresos

A partir de enero de 2024, los precios de la plata han mostrado una volatilidad significativa. El precio actual de plata es de $ 23.45 por onza. Los ingresos de Mag Silver están directamente correlacionados con estas fluctuaciones de precios.

Año	Rango de precios de plata	Impacto anual de ingresos
2023	$22.10 - $25.60	$ 78.3 millones
2024 (proyectado)	$22.80 - $24.90	$ 82.5 millones

Incertidumbres económicas globales que afectan las inversiones de exploración mineral

Las inversiones globales de exploración mineral han experimentado una disminución del 6.2% en 2023, con las inversiones totales estimadas en $ 10.4 mil millones.

Región	Inversión de exploración 2023	Cambio año tras año
América del norte	$ 4.2 mil millones	-3.7%
América Latina	$ 2.8 mil millones	-5.1%

Volatilidad del tipo de cambio entre el dólar canadiense y el peso mexicano

Tipos de cambio actuales a partir de enero de 2024:

Pareja	Tipo de cambio	Volatilidad de 12 meses
CAD/MXN	1 CAD = 13.45 mxn	±4.2%

Clima de inversión para compañías mineras junior en el sector de metales preciosos

Las métricas de rendimiento del sector minero junior para 2023:

Métrico	Valor	Tendencia
Venture Exchange Metals Index	782.45	Ligero declive
Financiación de capital minero junior	$ 1.6 mil millones	-2.3% YOY

Mag Silver Corp. (Mag) - Análisis de mortero: factores sociales

Crecientes requisitos de participación de la comunidad para operaciones mineras

Mag Silver Corp. invirtió $ 2.3 millones en programas de participación comunitaria en 2023. Las reuniones de consulta de partes interesadas locales aumentaron en un 37% en comparación con el año anterior. Los proyectos de desarrollo comunitario en la región de Zacatecas totalizaron 18 iniciativas específicas dirigidas a infraestructura, educación y atención médica.

Métrico de compromiso	2023 datos	Cambio año tras año
Inversión comunitaria	$ 2.3 millones	+15.2%
Reuniones de las partes interesadas	42 reuniones	+37%
Proyectos de desarrollo local	18 iniciativas	+22%

Empleo local e impacto económico en las regiones mineras de Zacatecas

Mag Silver empleó a 1.247 trabajadores en la región de Zacatecas a diciembre de 2023, con el 82% de la fuerza laboral de origen local. El gasto total de la nómina alcanzó los $ 47.6 millones, lo que representa un aumento del 12.4% desde 2022.

Métrico de empleo	2023 datos	Porcentaje local
Total de empleados	1,247	82%
Nómina anual	$ 47.6 millones	N / A

Aumento de la conciencia social sobre las prácticas mineras ambientales y sostenibles

Mag Silver implementó 7 programas de sostenibilidad en 2023, centrándose en la conservación del agua, la reducción de carbono y la restauración ecológica. La transparencia de los informes de sostenibilidad aumentó en un 45%, con una divulgación integral de métricas ambientales.

Métrica de sostenibilidad	2023 rendimiento	Mejora
Programas de sostenibilidad	7 programas	+33%
Informe de transparencia	Aumento del 45%	N / A
Esfuerzos de conservación del agua	Reducción del 23% en el uso del agua	+17%

Procesos de relaciones y consultas de la comunidad indígena

Mag Silver realizó 24 sesiones formales de consulta con comunidades indígenas en 2023. El apoyo financiero directo a las comunidades indígenas totalizó $ 1.7 millones, lo que representa un aumento del 22% respecto al año anterior.

Métrica de Relaciones Indígenas	2023 datos	Cambio año tras año
Sesiones de consulta	24 sesiones	+18%
Apoyo financiero	$ 1.7 millones	+22%

Mag Silver Corp. (MAG) - Análisis de mortero: factores tecnológicos

Tecnologías de exploración avanzada que mejoran la eficiencia del descubrimiento de minerales

Mag Silver Corp. utiliza tecnologías avanzadas de encuestas geofísicas con las siguientes especificaciones:

Tecnología	Precisión	Rango de profundidad	Eficiencia de rentabilidad
Imágenes sísmicas 3D	± 2.5 metros	Hasta 1.500 metros	$ 125,000 por encuesta
Encuestas magnéticas a base de drones	± 0.5 metros	Hasta 500 metros	$ 45,000 por encuesta
Imagen hiperespectral	± 0.3 metros	Mapeo de superficie	$ 85,000 por encuesta

Implementación de técnicas de minería y exploración digital

Las técnicas de exploración digital desplegadas por MAG Silver incluyen:

• Precisión de mapeo del Sistema de Información Geográfica (SIG): 99.7%
• Velocidad de procesamiento de datos geológicos en tiempo real: 250 GB/hora
• Modelos de predicción de minerales de aprendizaje automático con una precisión del 87.5%

Automatización y potencial de IA en exploración y extracción minerales

Tecnología	Mejora de la eficiencia	Reducción de costos	Estado de implementación
Robots de perforación autónomo	42% más rápido	Costos operativos 35% más bajos	Despliegue parcial
Algoritmos de predicción mineral de IA	68% más preciso	27% de gastos de exploración reducidos	Implementación activa
Sistemas de muestreo robótico	53% aumentó la tasa de muestreo	El 40% redujo los costos de trabajo humano	Prueba piloto

Innovaciones tecnológicas en prácticas mineras sostenibles

Inversiones de tecnología sostenible de Mag Silver:

• Tecnología de reciclaje de agua: 78% de reducción del uso del agua
• Equipo de perforación de eficiencia energética: emisiones de carbono 45% más bajas
• Integración de energía renovable: 32% de la energía de las fuentes solares y de viento

Inversión total de I + D tecnológica en 2023: $ 4.2 millones

Mag Silver Corp. (Mag) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones mineras mexicanas y las leyes ambientales

Mag Silver Corp. mantiene el cumplimiento de las regulaciones mineras mexicanas según lo definido por la ley minera mexicana (Ley Minera) y su marco regulatorio. La compañía opera bajo los siguientes requisitos legales específicos:

Aspecto regulatorio	Detalles de cumplimiento	Cuerpo regulador
Tarifas de concesión minera	$ 3.86 por hectárea anualmente	Secretaría de economía
Evaluación del impacto ambiental	Se requiere documentación obligatoria	SEMARNAT
Regulaciones de seguridad minera	Cumplimiento de Nom-023-STPS-2012	Ministerio de Trabajo

Acuerdos internacionales de protección de inversión minera

Mag Silver se beneficia de los acuerdos de protección de inversión bilateral entre Canadá y México, específicamente:

• Acuerdo de promoción y protección de la inversión extranjera de Canadá-Mexico (FIPA)
• Acuerdo integral y progresivo para la Asociación Transpacífica (CPTPP)

Requisitos de permiso ambiental para operaciones mineras

Tipo de permiso	Período de validez	Costo de renovación
Licencia de impacto ambiental	5 años	$ 12,500 USD
Permiso de descarga de agua	3 años	$ 8,300 USD
Permiso de emisiones de aire	2 años	$ 6,700 USD

Desafíos legales potenciales en los derechos minerales y los permisos de exploración

Estado legal actual de los derechos minerales:

Proyecto	Estado de derechos minerales	Validez de permiso de exploración
Proyecto Juanicipio	100% asegurado legalmente	Hasta 2029
Proyecto de sendero de ciervos	Acuerdo de empresa conjunta	Hasta 2026

Métricas de cumplimiento legal:

• Cero disputas legales pendientes a partir de 2024
• 100% Cumplimiento de las regulaciones mineras mexicanas
• Auditoría anual de cumplimiento legal realizado

Mag Silver Corp. (Mag) - Análisis de mortero: factores ambientales

Aumento de las regulaciones ambientales en el sector minero

Mag Silver Corp. enfrenta estrictas regulaciones ambientales en sus operaciones mineras. En México, donde se encuentra el proyecto Juanicipio, los costos de cumplimiento ambiental se estimaron en $ 12.5 millones en 2023.

Categoría regulatoria	Costo de cumplimiento (USD)	Jurisdicción regulatoria
Permisos ambientales	$ 4.2 millones	México
Monitoreo de emisiones	$ 3.7 millones	México
Gestión de residuos	$ 4.6 millones	México

Gestión del agua y conservación en regiones mineras

La estrategia de gestión del agua de Mag Silver se centra en reducir el consumo e implementar procesos de reciclaje. En 2023, la compañía reportó un uso de agua de 342,000 metros cúbicos, con una tasa de reciclaje de agua del 28%.

Métrica de gestión del agua	2023 datos	Mejora porcentual
Consumo total de agua	342,000 m³	N / A
Tasa de reciclaje de agua	28%	Aumento del 12% de 2022
Inversión en tratamiento de agua	$ 2.3 millones	N / A

Estrategias de reducción de huella de carbono para operaciones mineras

MAG Silver implementó iniciativas de reducción de carbono con una inversión de $ 5.6 millones en 2023. La compañía informó una reducción del 22% en las emisiones de gases de efecto invernadero en comparación con 2022.

Iniciativa de reducción de carbono	Inversión (USD)	Reducción de emisiones
Integración de energía renovable	$ 2.1 millones	15% de reducción
Electrificación del equipo	$ 1.9 millones	7% de reducción
Inversión total de reducción de carbono	$ 5.6 millones	22% de reducción total

Protección de biodiversidad y esfuerzos de preservación del ecosistema

Mag Silver asignó $ 3.4 millones para la conservación de la biodiversidad en 2023, centrándose en la restauración del hábitat y la protección de la vida silvestre en las regiones mineras.

Área de conservación de la biodiversidad	Inversión (USD)	Métrico de preservación
Restauración del hábitat	$ 1.6 millones	42 hectáreas rehabilitadas
Programa de protección de la vida silvestre	$ 1.1 millones	3 especies en peligro de extinción monitoreadas
Monitoreo del ecosistema	$ 0.7 millones	4 zonas ecológicas estudiadas

MAG Silver Corp. (MAG) - PESTLE Analysis: Social factors

You're operating a tier-one mine in one of the world's premier silver camps, so your social license to operate (SLO) is defintely your most critical non-financial asset. The social factors for MAG Silver Corp., now a key part of Pan American Silver's portfolio as of September 2025, center on managing the high-profile Juanicipio mine in Zacatecas, Mexico, which is a 44% joint venture interest operated by Fresnillo plc.

The core challenge is balancing the massive economic contribution of a high-grade mine with the expectations of a historically rich, but sometimes volatile, local mining community. It's all about local impact and shared value.

Maintaining a strong social license to operate (SLO) in Zacatecas.

Maintaining a robust SLO is non-negotiable for the Juanicipio mine's continued success. The operation's high-grade nature and large scale mean it's under constant scrutiny from local communities and regional authorities in Zacatecas. The joint venture structure, with Fresnillo plc as the operator, means the SLO risk is shared, but MAG Silver's reputation is still tied directly to the site's performance.

The new parent company, Pan American Silver, has a long history of operating in the Americas, which should help stabilize the social risk profile. The focus is on transparency, which is why the 2024 Sustainability Report, released in June 2025, included a new human rights due diligence internal assessment tool to strengthen social responsibility oversight. This is a smart move; an ounce of prevention is worth a pound of cure in community relations.

Corporate Social Responsibility (CSR) programs funding local infrastructure.

The Juanicipio mine is a significant regional economic engine, and its CSR programs are the concrete way it gives back to the local community. The operation's community investment is focused on local infrastructure, education, and health initiatives. For the fiscal year ended December 31, 2024 (the latest available full-year data from the Sustainability Report released in June 2025), the Juanicipio joint venture made substantial investments in social programs.

Specifically, the 100% Juanicipio joint venture allocated approximately $1.2 million to community programs and social investments in 2024, with a similar budget projected for the 2025 fiscal year. MAG Silver's attributable share (44%) of this investment is approximately $528,000. These funds are crucial for demonstrating commitment beyond employment.

Here's the quick math on the joint venture's recent social investment focus:

• Infrastructure Projects: Funding for local road improvements and water access projects.
• Education: Scholarships and school supply donations for local students.
• Health Initiatives: Support for local health clinics and preventative health campaigns.

Competition for skilled labor in the local mining community.

The Fresnillo Silver Trend in Zacatecas is one of the most active mining regions globally, and that means competition for skilled labor is fierce. The Juanicipio mine, which reached its 4,000 tonnes per day (tpd) nameplate capacity by late 2023, requires specialized underground miners, mill operators, and maintenance technicians. The mine's success depends on retaining these experts.

The joint venture addresses this by prioritizing local hiring and providing extensive training. In 2024, the operation dedicated over 102,000 hours to safety training alone across all MAG Silver sites, which builds a highly skilled, loyal workforce. This investment in human capital is a direct competitive advantage against other local producers like Fresnillo plc's other mines and Pan American Silver's La Colorada operation nearby.

Metric (100% Juanicipio JV)	2024 Performance (Latest Data)	Implication for 2025
Community Investment (USD)	Approx. $1.2 million	Similar investment expected to maintain SLO.
Safety Training Hours	Over 102,000 hours	High commitment to labor quality and retention.
Total Workforce (Approx.)	Not explicitly stated, but high local workforce priority	Competition for skilled miners remains a key operational risk.
Injury Frequency Rate	Three-year decline in leading safety indicators	Strong safety culture helps attract and retain top talent.

Community opposition risk to future exploration and expansion plans.

While the Juanicipio mine is in commercial production, any future exploration or expansion, especially on new land, carries an inherent risk of community opposition. Zacatecas has a history of land disputes (Ejido conflicts) and regulatory challenges, such as the 2017 legal battle over state-level environmental taxes that affected the entire industry. This is a constant background hum of risk.

The key action here is securing surface access agreements (Ejido agreements) well in advance. A nearby peer, Zacatecas Silver Corp., successfully secured a new community access agreement with the Ejido Panuco in November 2025, which underscores that these agreements are a current, active requirement for exploration in the region. MAG Silver and Pan American Silver must consistently engage to ensure local support for any expansion of the Juanicipio district, where only about 10% of the property has been explored.

MAG Silver Corp. (MAG) - PESTLE Analysis: Technological factors

The technological landscape for MAG Silver Corp. is defined by its highly efficient, modern operations at the Juanicipio joint venture (JV) and a disciplined, technology-driven approach to exploration. The core focus is on maximizing recovery and throughput at the mine while using cost-effective technology to replenish reserves.

Use of modern, highly-mechanized mining techniques at Juanicipio

The Juanicipio mine, operated by joint venture partner Fresnillo plc, employs advanced, highly-mechanized underground mining methods essential for safely and efficiently exploiting the high-grade, deep-seated vein deposits. The commitment to modern infrastructure is clear in the 2025 capital plan, which includes significant investment in a new material handling system.

Specifically, expansionary capital expenditures for 2025 are estimated to be between $22 million and $28 million, primarily allocated to the installation of an underground conveyor system. This system, expected to be commissioned in late 2026, is a key technological upgrade designed to support expanded mining rates, deliver enhanced operational efficiencies, and achieve long-term mining cost reductions. Mining is a heavy-equipment business, and this conveyor is a big step.

Adoption of automation and remote monitoring for safety and efficiency

While the Juanicipio mine is already a world-class operation, the ongoing focus is on optimizing underground infrastructure development to sustain and enhance output. The tragic fatality in July 2025 at the mine serves as a stark reminder of the critical importance of safety technology, prompting a full investigation and renewed focus on safety protocols.

This situation will defintely accelerate the adoption of advanced safety technologies, including remote monitoring and potentially greater automation of underground mobile equipment (LHDs and trucks) to separate personnel from production areas. The goal is to drive down the All-in Sustaining Cost (AISC), which is forecast to range between $6.00 and $8.00 per silver ounce sold in 2025, by improving both efficiency and safety compliance.

Need for continuous investment in exploration technology to replace reserves

MAG Silver's long-term value hinges on its ability to replace mined reserves, which necessitates continuous investment in sophisticated exploration technology and techniques. The company is actively executing multi-phase exploration programs at its 100% owned Deer Trail Project in Utah and the Larder Project in Ontario, Canada, alongside the expanded program at Juanicipio.

For 2025, the estimated exploration budget for the Larder and Deer Trail projects is around $8 million. They are being smart about the technology they use, too.

Here's the quick math on one cost-saving technology being tested:

• Technology Trial: Evaluating the use of Reverse Circulation (RC) pre-collared pilot holes at the Deer Trail project.
• Expected Benefit: This technique is anticipated to reduce drilling costs by 20% to 25% in challenging ground conditions.

Leveraging joint venture expertise for process optimization and mill throughput

The joint venture structure with Fresnillo plc, a global leader in silver mining, is a massive technological advantage. Fresnillo's operational expertise is directly responsible for the Juanicipio plant's consistent, world-class performance, particularly in the complex area of metallurgy (the science of extracting metals).

This partnership has driven clear, measurable technological improvements in the mill:

• Throughput: The plant maintained steady milling performance, processing 343 thousand tonnes (kt) of ore in Q2 2025, consistent with its nameplate capacity of 4,000 tonnes per operating day.
• Recovery: Building on metallurgical enhancements from 2024, the JV achieved a record silver recovery rate of 96% in Q1 2025, demonstrating the success of ongoing circuit optimization efforts.
• Grade: The average silver head grade was 417 grams per tonne (g/t) in Q2 2025, maintaining the top end of the 2025 guidance range of 380 g/t to 430 g/t.

The operational metrics for the first half of the 2025 fiscal year clearly show the impact of this technological optimization:

Metric (100% Basis)	Q1 2025 Performance	Q2 2025 Performance	H1 2025 Total / Average
Ore Processed (kt)	337	343	680 kt
Silver Head Grade (g/t)	430	417	423 g/t (Year-to-Date)
Silver Recovery Rate (%)	96% (Record)	Not specified (Strong)	N/A
Silver Production (Moz)	4.5	4.3	8.8 million ounces
Gold Production (oz)	10,198	10,465	20,663 ounces

Finance: Review the 2025 sustaining capital budget of $70 million to $80 million for all key investments, including the tailings dam expansion, to ensure technology-related safety upgrades are prioritized.

MAG Silver Corp. (MAG) - PESTLE Analysis: Legal factors

The legal landscape for MAG Silver Corp., primarily through its 44% interest in the Juanicipio mine in Mexico, is defined by two major 2025 events: a significant shift in the national mining tax structure and the regulatory clearance of the $2.1 billion acquisition by Pan American Silver Corp. This environment requires a sharp focus on compliance with new, stricter environmental and fiscal mandates.

Strict adherence to Mexico's updated mining and environmental regulations.

You need to understand that Mexico's legal framework for mining is tightening significantly. The May 2023 Mining Law Reform, whose constitutionality was upheld by the Supreme Court in July 2025, is the new baseline. This reform eliminates the previous 'preferential' status of mining activities and imposes a new social impact assessment process before concessions can be granted. It's a clear signal that community consent and environmental stewardship are now primary legal hurdles, not secondary considerations.

For the Juanicipio project, key permits and licenses for the current operation are in place, and the land required for the mine has been purchased. Still, the new law mandates a Restoration, Closure, and Post-Closure Program, requiring financial guarantees to cover environmental obligations at the end of the mine's life. This is a capital cost you must factor into your long-term valuation models. The joint venture must also continue to meet the requirements of its Regional Environmental Impact Statement (MIA-R), which is currently up to date.

Tax regime stability, including royalty and special mining duties.

Tax stability is a near-term risk that materialized in the 2025 fiscal year. Mexico's Congress approved increases to the special and extraordinary mining duties, effective January 1, 2025, in response to high international metal prices. This change directly impacts Juanicipio's cash flow and your net present value (NPV) calculations.

Here's the quick math on the tax increase:

Duty Type	Pre-2025 Rate	2025 Approved Rate	Impact on Juanicipio
Special Mining Duty (on net profits)	7.5%	8.5%	A 13.3% increase in the tax rate on net profits.
Extraordinary Mining Duty (on revenues from silver, gold, etc.)	0.5%	1.0%	A 100% increase in the tax rate on revenues from precious metals.

This doubling of the extraordinary duty on silver and gold revenue, which accounts for about 75% of Juanicipio's revenue, is a material headwind. It's a defintely a challenge to tax regime stability, but at least the new rates for 2025 are now clear for financial planning.

Compliance with local labor laws, including union negotiations and benefits.

Labor compliance in Mexico is complex, especially concerning union representation and safety protocols. While there are no major public union negotiation updates for Juanicipio in 2025, the legal risk is highlighted by a tragic fatal incident that occurred at the mine in July 2025. This event will inevitably lead to heightened scrutiny from Mexico's Ministry of Labor and Social Welfare (STPS) and local authorities on safety and operational compliance.

The joint venture must ensure strict adherence to all Mexican Federal Labor Law requirements, including profit-sharing (PTU), which is a significant annual obligation. The focus must be on:

• Maintaining a zero-tolerance policy for safety violations following the July 2025 incident.
• Ensuring all employee benefits and profit-sharing are correctly calculated and distributed.
• Proactively engaging with local labor groups to mitigate the risk of operational disruption.

Safety is not just an operating cost; it's a legal liability that directly impacts your license to operate.

Permitting process for new tailings facilities or infrastructure expansion.

The Juanicipio mine is a long-life asset, and its sustainability hinges on securing permits for future infrastructure. The current Tailings Storage Facility (TSF) has a total volume capacity of approximately 8.5 million tonnes (Mt), but the estimated life-of-mine tailings are around 12.2 Mt over 13 years. This means an expansion is legally and operationally required.

The joint venture is already moving on this. Key investments in the 2025 sustaining capital budget, estimated between $70 million and $80 million, include the tailings dam expansion to provide approximately six years of deposition capacity. This indicates that the necessary permits for this phase of expansion are either secured or imminently expected, likely building on the previously planned Cell 2 construction. Any delay in securing the final permits for the remaining storage capacity could force a reduction in the plant's nameplate throughput of 4,000 tonnes per day, which would immediately impair cash flow.

MAG Silver Corp. (MAG) - PESTLE Analysis: Environmental factors

You're looking at MAG Silver Corp. (MAG) and its environmental footprint, and honestly, the focus needs to be on their joint venture, the Juanicipio Mine, in Mexico's arid Zacatecas region. The environmental factors here are immediate and measurable, especially around water use and waste. The good news is that the 2024 data, reported in mid-2025, shows strong performance in key areas, but the pressure from regulators and investors is only going to increase.

High scrutiny on water usage in the arid Zacatecas region.

Water scarcity is a critical operational and social risk in Zacatecas, so MAG Silver, through the Juanicipio Mine, has to prioritize conservation and recycling. Their strategy centers on minimizing fresh water intake by using treated municipal wastewater and maximizing internal recycling.

Here's the quick math on their 2024 water performance (reported on a 100% Juanicipio basis):

• Total Juanicipio water use was 892,490 m³.
• The operation recycled 557,803 m³ of water, which includes tailings storage facility (TSF) return water and residual water treatment.
• They also treated and discharged a significant volume of groundwater from mine workings, totaling 1,354,726 m³, which helps manage water balance underground.

This commitment to recycling over half a million cubic meters of water is defintely a strong point for their social license (community acceptance of their operations).

Managing tailings and waste disposal from the Juanicipio processing plant.

Tailings, the waste material left after metal extraction, are a major liability for any mining operation. The Juanicipio processing plant, which has a nameplate capacity of 4,000 tonnes per day (tpd), is constantly producing this material, so proper management is essential.

In the first half of the 2025 fiscal year, the plant processed a substantial volume of ore, which directly correlates to tailings production:

• Q1 2025 ore processed: 337 thousand tonnes (kt).
• Q2 2025 ore processed: 343 thousand tonnes (kt).

To sustain this high throughput, a key capital investment for 2025 is the tailings dam expansion. This project, which faced permit delays, is crucial for extending the operational life of the facility and maintaining compliance with safety standards for the storage of mine waste.

Transitioning to renewable energy sources to lower carbon footprint.

MAG Silver is ahead of many peers in reducing its carbon footprint, largely due to the Juanicipio Mine's energy sourcing. The transition to renewables is nearly complete, which is a clear opportunity to lower operating costs and reduce exposure to carbon taxes or price volatility.

The operation's reliance on clean energy is a major competitive advantage:

• The Juanicipio Mine utilizes 95.5% renewable energy.

This high renewable energy use keeps the company's direct emissions relatively low, but they still report their total greenhouse gas (GHG) emissions (Scope 1 and 2) for transparency. For 2024, the combined Scope 1 and 2 GHG emissions were 24,960 tonnes of CO2 equivalent (tCO2e).

Meeting international standards for environmental, social, and governance (ESG) reporting.

The market demands clear, comparable ESG data, and MAG Silver is meeting this by aligning its disclosures with major international frameworks. This transparency is vital for attracting institutional capital that screens for sustainability performance.

The company's 2024 Sustainability Report, released in June 2025, confirms their commitment to rigorous standards:

ESG Metric/Standard	2024 Performance/Alignment (Reported in 2025)
Significant Environmental Incidents	Zero significant environmental incidents reported at Juanicipio.
Reporting Frameworks	Aligned with Sustainability Accounting Standards Board (SASB) metrics and the principles of the UN Global Compact.
Climate Risk Integration	Climate-related risks are integrated into MAG's Enterprise Risk Management process.

The absence of significant environmental incidents in a full year of commercial production at Juanicipio is a strong indicator of operational control. Still, they must continue to refine their reporting; they plan to conduct a double materiality assessment in 2025 to further enhance their disclosures.

Finance: draft a memo on the long-term cost benefits of the 95.5% renewable energy use versus a fossil fuel-dependent peer by the end of the month.