Mag Silver Corp. (MAG): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le monde dynamique de l'extraction des métaux précieux, Mag Silver Corp. se dresse au carrefour de défis mondiaux complexes et d'opportunités innovantes. En naviguant dans le paysage complexe du secteur minier du Mexique, cette entreprise canadienne est confrontée à un éventail à multiples facettes de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent sa trajectoire stratégique. Du terrain accidenté des Zacatecas aux marchés mondiaux d'investissement, le voyage de Mag Silver est un récit convaincant de la résilience, de l'adaptation technologique et du développement durable dans une industrie de plus en plus examinée.

Mag Silver Corp. (MAG) - Analyse du pilon: facteurs politiques

Les réglementations minières du Mexique ont un impact sur les opérations de Mag Silver

Mag Silver opère principalement dans l'État de Zacatecas, sous réserve de réglementations minières spécifiques. La loi minieuse mexicaine de 1992 régit les droits d'exploration et d'extraction des minéraux.

Aspect réglementaire	Détails
Durée de la concession minière	50 ans, renouvelable
Taxe sur l'extraction minérale	7,5% de la valeur de production brute
Limite d'investissement étranger	100% de propriété autorisée

Tensions géopolitiques entre le Canada et le Mexique

Les accords actuels de protection bilatérale des investissements restent stables entre le Canada et le Mexique dans le cadre de l'USMCA.

• Total des investissements canadiens miniers au Mexique: 7,2 milliards de dollars à partir de 2023
• Les sociétés minières canadiennes opérant au Mexique: 150+
• Investissement de Mag Silver dans les opérations mexicaines: environ 250 millions de dollars

Politiques gouvernementales sur l'exploration minérale

Le ministère de l'Économie du Mexique supervise les politiques d'exploration minérale avec des exigences réglementaires spécifiques.

Domaine politique	Cadre réglementaire
Permis environnementaux	Évaluations d'impact environnemental obligatoires
Consultation communautaire autochtone	Requis avant les activités d'exploration
Temps de traitement des permis d'exploration	Moyenne de 6 à 9 mois

Stabilité politique dans les régions minières

L'État de Zacatecas, où Mag Silver opère, a connu une stabilité politique modérée avec certains défis de sécurité.

• Index de sécurité de l'État de Zacatecas: 5.2 / 10
• Incidents de sécurité liés à l'exploitation minière en 2023: 37
• Support d'investissement minière du gouvernement local: modéré

Mag Silver Corp. (MAG) - Analyse du pilon: facteurs économiques

Fluctuant les prix de l'argent impactant directement le potentiel de revenus

En janvier 2024, les prix de l'argent ont montré une volatilité importante. Le prix en argent actuel s'élève à 23,45 $ l'once. Les revenus de Mag Silver sont directement corrélés avec ces fluctuations de prix.

Année	Gamme de prix en argent	Impact annuel sur les revenus
2023	$22.10 - $25.60	78,3 millions de dollars
2024 (projeté)	$22.80 - $24.90	82,5 millions de dollars

Incertitudes économiques mondiales affectant les investissements d'exploration minérale

Global Mineral Exploration Investments a connu une baisse de 6,2% en 2023, avec des investissements totaux estimés à 10,4 milliards de dollars.

Région	Investissement d'exploration 2023	Changement d'une année à l'autre
Amérique du Nord	4,2 milliards de dollars	-3.7%
l'Amérique latine	2,8 milliards de dollars	-5.1%

Volatilité du taux de change entre le dollar canadien et le peso mexicain

Taux de change actuels en janvier 2024:

Paire de devises	Taux de change	Volatilité de 12 mois
CAD / MXN	1 CAD = 13,45 MXN	±4.2%

Climat d'investissement pour les sociétés minières juniors dans le secteur des métaux précieux

Les métriques de performance du secteur minier junior pour 2023:

Métrique	Valeur	S'orienter
Index des métaux d'échange de capital-risque	782.45	Légère baisse
Financement des actions minières juniors	1,6 milliard de dollars	-2,3% en glissement annuel

Mag Silver Corp. (MAG) - Analyse du pilon: facteurs sociaux

Exigences croissantes d'engagement communautaire pour les opérations minières

Mag Silver Corp. a investi 2,3 millions de dollars dans les programmes d'engagement communautaire en 2023. Les réunions de consultation des parties prenantes locales ont augmenté de 37% par rapport à l'année précédente. Des projets de développement communautaire dans la région de Zacatecas ont totalisé 18 initiatives spécifiques ciblant l'infrastructure, l'éducation et les soins de santé.

Métrique de l'engagement	2023 données	Changement d'une année à l'autre
Investissement communautaire	2,3 millions de dollars	+15.2%
Réunions des parties prenantes	42 réunions	+37%
Projets de développement locaux	18 initiatives	+22%

Emploi local et impact économique dans les régions minières de Zacatecas

Mag Silver a employé 1 247 travailleurs dans la région de Zacatecas en décembre 2023, 82% de la main-d'œuvre provenant localement. Les dépenses totales de paie ont atteint 47,6 millions de dollars, ce qui représente une augmentation de 12,4% par rapport à 2022.

Métrique d'emploi	2023 données	Pourcentage local
Total des employés	1,247	82%
Salaire annuelle	47,6 millions de dollars	N / A

Augmentation de la conscience sociale des pratiques minières environnementales et durables

Mag Silver a mis en œuvre 7 programmes de durabilité en 2023, en se concentrant sur la conservation de l'eau, la réduction du carbone et la restauration écologique. La transparence des rapports sur la durabilité a augmenté de 45%, avec une divulgation complète des mesures environnementales.

Métrique de la durabilité	Performance de 2023	Amélioration
Programmes de durabilité	7 programmes	+33%
Signaler la transparence	Augmentation de 45%	N / A
Efforts de conservation de l'eau	23% de réduction de la consommation d'eau	+17%

Processus de relations et de consultations de la communauté autochtones

Mag Silver a organisé 24 séances de consultation formelles avec des communautés autochtones en 2023. Un soutien financier direct aux communautés autochtones a totalisé 1,7 million de dollars, ce qui représente une augmentation de 22% par rapport à l'année précédente.

Métriques des relations autochtones	2023 données	Changement d'une année à l'autre
Séances de consultation	24 séances	+18%
Soutien financier	1,7 million de dollars	+22%

Mag Silver Corp. (MAG) - Analyse du pilon: facteurs technologiques

Technologies d'exploration avancées améliorant l'efficacité de la découverte minérale

Mag Silver Corp. utilise des technologies de levé géophysique avancé avec les spécifications suivantes:

Technologie	Précision	Plage de profondeur	Rentabilité
Imagerie sismique 3D	± 2,5 mètres	Jusqu'à 1 500 mètres	125 000 $ par enquête
Enquêtes magnétiques à base de drones	± 0,5 mètres	Jusqu'à 500 mètres	45 000 $ par enquête
Imagerie hyperspectrale	± 0,3 mètres	Cartographie de surface	85 000 $ par enquête

Mise en œuvre des techniques d'exploitation et d'exploration numériques

Les techniques d'exploration numérique déployées par Mag Silver comprennent:

• Précision de cartographie du système d'information géographique (SIG): 99,7%
• Vitesse de traitement des données géologiques en temps réel: 250 Go / heure
• Modèles de prédiction des minéraux d'apprentissage automatique avec une précision de 87,5%

Automatisation et potentiel de l'IA dans l'exploration et l'extraction minérales

Technologie	Amélioration de l'efficacité	Réduction des coûts	Statut d'implémentation
Robots de forage autonome	42% plus rapidement	35% de coûts opérationnels inférieurs	Déploiement partiel
Algorithmes de prédiction minérale AI	68% plus précis	27% des frais d'exploration réduits	Implémentation active
Systèmes d'échantillonnage robotique	53% d'augmentation du taux d'échantillonnage	40% ont réduit les coûts de main-d'œuvre humaine	Tests pilotes

Innovations technologiques dans les pratiques minières durables

Investissements en technologie durable par Mag Silver:

• Technologie du recyclage de l'eau: 78% de réduction de la consommation d'eau
• Équipement de forage économe en énergie: 45% d'émissions de carbone inférieures
• Intégration d'énergie renouvelable: 32% de l'énergie provenant de sources solaires et éoliennes

Investissement total de R&D technologique en 2023: 4,2 millions de dollars

Mag Silver Corp. (MAG) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations minières mexicaines et aux lois environnementales

Mag Silver Corp. maintient la conformité aux réglementations minières mexicaines telles que définies par la loi miniers mexicaine (Ley Minera) et son cadre réglementaire. La société opère selon les exigences légales spécifiques suivantes:

Aspect réglementaire	Détails de la conformité	Corps réglementaire
Frais de concession minière	3,86 $ par hectare par an	Secrétaría de Economía
Évaluation de l'impact environnemental	Documentation obligatoire requise	Semarnat
Règlement sur la sécurité minière	Conformité avec NOM-023-STPS-2012	Ministère du Travail

Accords internationaux de protection des investissements minières

Mag Silver bénéficie des accords bilatéraux de protection des investissements entre le Canada et le Mexique, en particulier:

• Accord de promotion et de protection des investissements étrangers du Canada (FIPA)
• Accord complet et progressif pour le partenariat transpacifique (CPTPP)

Exigences de permis environnementales pour les opérations minières

Type de permis	Période de validité	Coût de renouvellement
Licence d'impact environnemental	5 ans	12 500 USD
Permis de décharge d'eau	3 ans	8 300 USD
Permis d'émissions d'air	2 ans	6 700 USD

Des défis juridiques potentiels dans les droits minéraux et les permis d'exploration

Statut juridique actuel des droits minéraux:

Projet	Statut de droits minéraux	Validité du permis d'exploration
Projet Juanicipio	100% légalement sécurisé	Jusqu'en 2029
Projet de sentiers de cerf	Convention de coentreprise	Jusqu'en 2026

Mesures de conformité juridique:

• Zéro litiges juridiques en suspens en 2024
• 100% de conformité aux réglementations minières mexicaines
• Audit annuel de conformité juridique réalisée

Mag Silver Corp. (MAG) - Analyse du pilon: facteurs environnementaux

Augmentation des réglementations environnementales dans le secteur minier

Mag Silver Corp. fait face à des réglementations environnementales strictes à travers ses opérations minières. Au Mexique, où se trouve le projet Juanicipio, les coûts de conformité environnementale étaient estimés à 12,5 millions de dollars en 2023.

Catégorie de réglementation	Coût de conformité (USD)	Juridiction réglementaire
Permis environnementaux	4,2 millions de dollars	Mexique
Surveillance des émissions	3,7 millions de dollars	Mexique
Gestion des déchets	4,6 millions de dollars	Mexique

Gestion de l'eau et conservation dans les régions minières

La stratégie de gestion de l'eau de Mag Silver se concentre sur la réduction de la consommation et la mise en œuvre des processus de recyclage. En 2023, la société a déclaré une consommation d'eau de 342 000 mètres cubes, avec un taux de recyclage de l'eau de 28%.

Métrique de gestion de l'eau	2023 données	Pourcentage d'amélioration
Consommation totale d'eau	342 000 m³	N / A
Taux de recyclage de l'eau	28%	Augmentation de 12% par rapport à 2022
Investissement du traitement de l'eau	2,3 millions de dollars	N / A

Stratégies de réduction de l'empreinte carbone pour les opérations minières

Mag Silver a mis en œuvre des initiatives de réduction du carbone avec un investissement de 5,6 millions de dollars en 2023. La société a déclaré une réduction de 22% des émissions de gaz à effet de serre par rapport à 2022.

Initiative de réduction du carbone	Investissement (USD)	Réduction des émissions
Intégration d'énergie renouvelable	2,1 millions de dollars	Réduction de 15%
Électrification de l'équipement	1,9 million de dollars	Réduction de 7%
Investissement total de réduction du carbone	5,6 millions de dollars	22% de réduction totale

Protection de la biodiversité et efforts de préservation des écosystèmes

Mag Silver a alloué 3,4 millions de dollars à la conservation de la biodiversité en 2023, en se concentrant sur la restauration de l'habitat et la protection de la faune dans les régions minières.

Zone de conservation de la biodiversité	Investissement (USD)	Métrique de conservation
Restauration de l'habitat	1,6 million de dollars	42 hectares réhabilités
Programme de protection de la faune	1,1 million de dollars	3 espèces en voie de disparition surveillées
Surveillance des écosystèmes	0,7 million de dollars	4 zones écologiques étudiées

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.