Troubled with operational challenges, Magna Gold Corp. (TSE:MGR) has disappointed investors with a dismal performance in the second quarter of 2022. Further, the company has withdrawn its outlook for the full-year 2022.
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What Does Magna Gold Do?
With a market cap of C$23.01 million, Magna Gold is a gold and silver production company. It acquires, explores, develops, and operates precious metals properties in Mexico.
Q2 Results in Detail
Magna Gold’s revenues for the reported quarter stood at $21 million, comparing unfavorably with the year-ago figure of $21.2 million.
The company produced 10,795 ounces of gold during the reported quarter, down from 11,713 ounces produced in the prior-year quarter.
Magna Gold recorded production costs of $24.7 million during the second quarter of 2022, up from $17.7 million a year ago. Inventory drawdown during the reported quarter triggered the rise in costs.
Overall, Magna Gold mined 5.9 million tonnes during the reported quarter, comparing unfavorably with the previous year’s figure of 6.1 million.
Further, the company recorded $1.4 million in cash at the end of the second quarter of 2022, rising from $0.3 million at March end.
Will Magna Gold Stock Go Up?
As per TipRanks, MGR’s average price forecast of C$1.39 implies 322.1% upside potential. However, analysts are cautiously optimistic about the stock.
Notably, shares of MGR are down 58.8% so far this year.
Concluding Thoughts
Magna Gold is grappling with some operational challenges at its San Francisco mine, due to which it has withdrawn its guidance for the full-year 2022. However, in a press release, the company said that it was undertaking initiatives to tackle the issue and optimize the value of its mine.
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