UPDATE: MAG Silver (MAG) PT Lowered to $26 at Roth Capital

Roth Capital analyst Joe Reagor lowered the price target on MAG Silver (NYSE: MAG) to $26.00 (from $27.00) while maintaining a Buy rating.

The analyst comments "On December 27, 2021, MAG announced that it had been notified that the Juanicipio mill would not be able to tie-in to the state-owned electrical grid until May 2022. The delay was mainly due to staffing issues at the utility company. As a result, we are shaving our price target from $27.00 to $26.00 and maintaining our Buy rating. Electrical utility delay impacts commercial production. On December 27, 2021, MAG Silver announced it had received notice from its partner, Fresnillo (FRES.L-NC), that the state-owned electrical company had delayed the tie-in of the Juanicipio mill until sometime after the first week of May 2022. This represents approximately a six-month delay compared to our prior expectations. We note that the delay is due to staffing issues at the electric company caused by the ongoing COVID-19 pandemic. Potential exists to use excess capacity nearby. On a positive note, MAG and Fresnillo intend to process some additional ore via excess capacity at the neighboring Fresnillo and Saucito mills. We believe it is possible that this could cover up to 50% of the production we previously estimated for H1 2022. Shaving price target to $26.00. Despite the potential offset of local milling options, we reduced our estimates for 2022. Additionally, we updated our model to reflect MAG's recent financing. As a result of these two items, we are shaving our price target from $27.00 to $26.00 and maintaining our Buy rating."

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