11:18 AM EDT, 08/02/2024 (MT Newswires) -- MAG Silver ( MAG ) on Friday said its second-quarter profit rose 17%, driven by income from its joint-venture Juanicipio mine in Mexico.

The company posted earnings of US$21.61 million, or US$0.21 per share, up from US$19.39 million, or US$0.19.

Adjusted EBITDA in the second quarter increased to US$50.4 million from US$30.7 million.

Juanicipio achieved silver production and equivalent silver production of 5.0 million ounces and 7.1 million ounces, respectively.

The company processed 336,592 tonnes of ore at a silver head grade of 498 grams per tonne (g/t) at Juanicipio during the quarter, down from 377,718 tonnes at a silver head grade of 498 g/t.

MAG Silver ( MAG ) increased its 2024 production guidance due to continued operational outperformance in the first half of the year. Fresnillo plc, Juanicipio's operator, said silver head grade is expected to be between 240 g/t and 460 g/t in 2024, revised from the previous guidance of 380 g/t to 420 g/t. Production at the mine is forecast at 16.3 million ounces to 17.3 million ounces of silver, up from 14.3 million ounces to 15.8 million ounces.

National Bank of Canada reiterated its outperform rating and $25.75 price target on MAG following the results.

National Bank said MAG Silver's ( MAG ) favorable guidance adjustment reflects improving operational performance and balance sheet strength, which could lead to another catalyst in a possible inaugural dividend later this year.

MAG shares were last seen down $0.50 to $17.78 on the Toronto Stock Exchange.

Price: 17.82, Change: -0.46, Percent Change: -2.52