Silver X Mining Corp. (AGX:TSX.V) announced it has successfully processed 230,444 ounces of silver equivalent (Ag Eq) in 45 days after resuming mining operations at its Nueva Recuperada project in Central Peru.
The company has released operational results from the third quarter, ending September 30, 2023.
It reported upgrading its operations and protocols to optimize production at the site before the resumption, planning to target areas on the Nueva Recuperada Project determined to have a higher likelihood of mineralizing.
"We view the recovery of operational performance towards the end positively as important metrics such as grade and throughput are approaching levels seen in Q3/22 and Q4/22," wrote Red Cloud Securities analyst Timothy Lee in an updated research note. "This bodes well for future performance, and we look forward to the release of financial results for Q3/23 and Q4/23 to see if the optimization measures have resulted in favorable cost metrics as well."
Silver X saw an average head grade of 304.25 grams per tonne Ag Eq since the resumption of the operations which "is approaching the 369 g/t AgEq average head grade achieved in Q4/22," noted Lee, who rated the stock a Buy with a target price of CA$0.85 per share.
The company said it processed 90,303 ounces Ag Eq in September and 140,050 ounces Ag Eq in October 2023.
Technical Analyst Clive Maund also reported on the company in June and rated it as a "Strong Speculative Buy" for potential investors.
"Our team is doing an outstanding job in increasing production steadily and safely," said Chief Executive Officer Jose Garcia. "We count now on a more robust mine schedule and have built stronger alliances with our local community and strategic partners."
Total processed metal was reduced to 120,915 ounces Ag Eq during the quarter due to the temporary halt of operations in July and August 2023, the company said.
"With the reported recovery in throughput, production figures for Q4/23 and beyond should improve," Lee noted.
Silver X said its monthly metal throughput was back to its previous levels from Q3 and Q4 in 2022.
"We continue to forge ahead in increasing throughput in Q4 2023 and in successfully delivering to our shareholders our plans to build a prolific silver district in central Peru," Garcia said.
The Catalyst: Possible Return of More Than 260%
Lee's target price would be a potential return of more than 260% for investors on the stock. In an earlier research report, the analyst noted Silver X has a number of positive factors working in its favor, including the renewed operations at Nueva Recuperada and a new chief operating officer, Freddy Mayor Zavellos, who was a founding member.
Technical Analyst Clive Maund also reported on the company in June and rated it as a "Strong Speculative Buy" for potential investors.
Newsletter writer Rick Mills of Ahead of the Herd has noted that "to satisfy future demands, it's clear that more silver mines must be developed to reverse this trend. The focus has to be on promising silver explorers and mine developers that could contribute to the future supply chain."
"Bullish factors to observe are how volume has declined to a relatively low level which shows the lack of interest characteristic of a bottom, the Accumulation line holding up well overall relative to price, the price well below a still rising 200-day moving average, which is a measure of how oversold it is, and how the MACD has been creeping higher all this month as downside momentum drops out," Maund wrote.
Silver X's more than 20,000-hectare Nueva Recuperada Silver District in Central Peru produces silver, gold, lead, and zinc from the district's Tangana Mining Unit.
Mining has taken place in the area since the 16th century, and the plant has been in operation for 60 years. Historically, about 200 million ounces (Moz) Ag Eq has been produced within a 30-kilometer radius, the company said.
The company has a number of catalysts on the horizon, including drilling on the Plata project and an Environmental and Social Impact Statement (ESIA).
Silver Is an Important Ingredient of Clean Energy
Nature's most conductive element, silver is used to coat electrical contacts in computers, phones, cars, and appliances — it's not just for jewelry. It's also an important element in solar technology.
"Silver is not only a precious metal, but also an industrial metal," Sankar Sharma, chief executive officer of Risk Reward Return, told CBS News. "Silver is used in medical applications, solar panels, batteries, nuclear reactors, semiconductors, touch screens, and more."
The World Silver Survey 2023, published by the Silver Institute, said there was a 237.7 Moz deficit between supply and demand for the precious metal in 2022. This deficit was expected to be repeated in 2023, the institute said.
"Mined output over the longer term, four to five years out, is forecast to begin to decline," the report said. "This will be due to losses from grade decline and reserve depletion at existing operations exceeding the new production that is expected to come online from the current project pipeline."
Newsletter writer Rick Mills of Ahead of the Herd has noted that "to satisfy future demands, it's clear that more silver mines must be developed to reverse this trend. The focus has to be on promising silver explorers and mine developers that could contribute to the future supply chain."
Ownership and Share Structure
Streetwise Ownership Overview*Reuters' breakdown of the company's ownership and share structure shows management and insiders owning 17.12% of the company. According to Reuters, chairman Jose Maria Garcia Jimenez owns 8.40% of the company with 13.99 million shares, Vice President Sebastian Wahl owns 7.85% with 13.05 million shares, executive chairman Luis Zapata owns 0.50% with 0.84 million shares, director Michael Hoffman owns 0.24% with 0.40 million shares, director Darryl S. Cardey owns 0.09% with 0.16 million shares, and CFO Ronald Anibal Marino Sanchez owns 0.06% with 0.10 million shares.
Institutions own 19.69% of the company, Reuters said. Baker Steel Resources Trust Ltd. owns 11.71% with 19.50 million shares, US Global Investors Inc., owns 5.02% with 8.36 million shares, Earth Resource Investment Group owns 1.85% with 3.08 million shares, and Sprott Asset Management LP owns 1.11% with 1.85 million shares.
Reuters reports that there are 166.58 million shares outstanding, with 118.69 million free-float traded shares.
The company has a market cap of CA$37.48 million and trades in a 52-week range of CA$0.17 and CA$0.475.
Sign up for our FREE newsletter
Important Disclosures:
- Silver X Mining Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver X Mining Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
For additional disclosures, please click here.
