Silver Miner Releases Results After Mine Restart

Silver X Mining Corp. (AGX:TSX.V) has announced its Q3 2023 results for the Nueva Recuperada project in a press release. The company reported a number of highlights from the project, located in Peru, including the relaunch of mining operations on September 19, 2023.

Further highlights included in the press release included a total of 230,444oz of silver equivalent (Ag eq) processed in almost a month and a half.

This amounts to an average head grade of 304.25 grams per tonne (g/t) over the course of 45 days. The company also reported that it saw US$2.1 million in operating revenues this past quarter and had reduced its net loss before tax to US$2.1 million as of September 30, 2023, versus a gain of US$0.2 compared to Q3 of 2022, mainly driven by the operation pause.

The company stated that it paused operations between July 26 and September 19, 2023, in order to "implement a strategic operational reset." The company used this time period to upgrade equipment, train its workforce, and implement measures to enhance operational efficiency.

Timothy Lee of Red Cloud Securities rated the company as a "Buy" for potential investors and named a share price of CA$0.85 for the company with a potential return on investment of 240% for investors. 

CEO Jose M. Garcia commented, "Throughout the quarter, we faced an unforeseen decline in grades within certain mineralized zones, resulting in a reduction in metal output and impacting our bottom-line financial performance. We have re-evaluated our mine plan and strengthened our collaboration with our main contractor to enhance our short-term performance."

Garcia continued to say, "I am highly confident that these adjustments will contribute to the transformation of the Nueva Recuperada project into one of the most attractive silver districts in the region."

Silver on the Verge of a Breakout

Rick Mills of Ahead of the Herd reviewed the silver market on November 18, 2023, which he believes is set to increase in value due to silver's industrial applications, especially solar panels, 5G technology, and electric vehicles.

Mills stated that there had been a two-year deficit in silver, as "it took just two years of undersupply — the 2022 deficit and the 51.1 million oz shortfall from 2021 — to wipe out the cumulative surpluses from the previous decade, and this demand-supply gap is likely to remain for the foreseeable future.

Technical Analyst Clive Maund also reviewed the silver market on November 20, 2023, which he believes will be very attractive after it breaks through some resistance.

Maund also noted that he thinks the silver market will continue to follow the gold market, which is itself on the verge of a breakout. According to Maund, "the main point to keep in mind with reference to silver is to watch for gold breaking above its key CA$2100 level, which should kick off a major uptrend because if that happens, it will take silver with it, and although silver has resistance to contend with on the way up it will be emboldened to forge ahead."

Potential Return of 202%

Timothy Lee of Red Cloud Securities reviewed Silver X on November 20, 2023, where he rated the company as a "Buy" for potential investors and named a share price of CA$0.85 for the company with a potential return on investment of 240% for investors. Lee cited a number of factors in his positive assessment of the company, including the restart of the Nueva Recuperada mine in September and an expected production of 179 Koz of Ag eq in Q4.

Timothy Lee put out an updated report on November 30, 2023, that rated the company as a "Buy" and listed a target price of CA$0.80 per share, representing a potential return on investment of 202%. Lee commented, "In our opinion, these results aligned with expectations, which is not too surprising as Silver X had already reported operating figures earlier in November. While the numbers were down YoY due to the operational reset, production is now rapidly ramping up."

Technical Analyst Clive Maund looked at the company in June of 2023 and rated the company as a "Strong Speculative Buy" for potential investors. Maund commented on the company's stock, "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 . . . and how the MACD has been creeping higher all this month."

According to the company's investor presentation, the company has several catalysts to report, including plans to develop high-grade structures on the Tangana project and development on the Plata Mining Unit, expected to finish in 2024 or 2025.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 17.05% of the company. According to Reuters, President and CEO Jimenez Jose Maria Garcia owns 8.40% of the company with 13.99 million shares, Vice President Sebastian Wahl owns 7.85% of the company with 13.05 million shares, Executive Chairman Luis Zapata owns 0.50% of the company with 0.84 million shares, Director Michael Hoffman owns 0.24% of the company with 0.40 million shares, and CFO Ronald Anibal Marino Sanches owns 0.06% of the company with 0.10 million shares.

Reuters reports that institutional investors own 19.09% of the company. Baker Steel Resources Trust, Ltd. owns 11.71% of the company with 19.50 million shares, US Global Investors, Inc. owns 5.02% of the company with 8.36 million shares, Earth Resource Investment Group owns 1.25% of the company with 2.08 million shares, and Sprott Asset Management LP owns 1.11% of the company with 1.85 million shares.

According to Reuters, there are 166.58 million shares outstanding with 118.69 million free float traded shares, while the company has a market cap of CA$32.52 million shares, and it trades in the 52-week period between CA$0.17 and CA$0.48.

Important Disclosures:

1. 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. Street Smart is conducting a digital media marketing campaign for this article on behalf of [COMPANY], and the company has paid a marketing fee between US$10,000 and US$100,000, of which Street Smart may receive 10-25% as compensation.
2. 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.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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