Interview with George Paspalas, President & CEO of MAG Silver Corp. (TSX:MAG) A really, really smart management team and and even smarter business model. One of our favourite stories in mining. With huge gains in share price already made, we try to find out if they can give us more.
So the background. MAG Silver Corporation is a huge player in the silver market; they are a Canadian exploration and development company with a preeminent focus of becoming a top-tier primary silver mining company. MAG Silver's central strategy is to explore and advance high-grade, district scale, silver-dominant projects in the Americas.
MAG Silver Corp. has an enormous market cap of $888M. Share price performance for the year is good, starting at $7.62, rising to a peak of $13.49 in September, before settling at the current value of $10.27. After a reduced level of performance in the market last year, MAG Silver Corp. is on its way back to the highs seen during 2016 and early 2017.
With a market cap this large, investors may well ask why they attending the London 121 conference, and why they need new investors? Paspalas answers the question confidently, stating for the modest conference fee, the London 121 is an incredibly efficient way to talk in-person to a multitude of shareholders and they want and need liquidity. In addition, Paspalas hopes to whet the appetites of new shareholders, particularly HNWIs/smaller funds; this will enhance MAG Silver Corp.'s liquidity.
The primary focus of MAG Silver Corp. is their asset, the Juanicipio Property (44%), which is being constructed in partnership with Fresnillo Plc (56%); Paspalas calls it "the highest grade undeveloped silver property in the world." It is located in the Fresnillo Silver Trend in Mexico: the 'world's premier silver mining camp.' Surface and underground infrastructure is being implemented to support a '4,000 tpd (silver) mining operation.' In addition, MAG Silver Corp. has a large exploration program in place targeting promising targets throughout the property.
MAG Silver Corp. is hoping to encourage new investors on board by the strength of their management: in recent weeks a large scale sell-off of shares from a major shareholder could have pushed the company into deep waters, but MAG Silver Corp. has "weathered the storm" well. The management team is wonderfully experienced. They have been around for decades, and have had particularly useful experience during silver's punishing down cycle during the 90s. Paspalas is also a major shareholder: he has spent his own money on over "200,000 shares," and would love to see dividends come to fruition for all shareholders. With MAG Silver Corp., there are "only 8 people," but the "grey hair" of experience they possess is certainly unique.
What did you make of George Paspalas? Are they a giant you want to climb on the back of? Is silver an exciting commodity to invest in? Comment below, and we may just ask your questions in the near future.
We Discuss:
1:24 - Why are They Attending the 121 Conference, Considering Their Market Cap?
2:41 - Company Overview
7:06 - Mindset and Business Model: How did They Decide on it?
8:48 - Going Forwards: What are They Focused On and How are They Financing the Assets
11:54 - How are They Convincing New Shareholders to Invest?
14:53 - Public vs Private: Will They Change to Private in the Long Term?
15:34 - Solid Track Record and Reasons to Invest: Experience Leads the Way
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