In a research note published on February 2, 2024, Red Cloud Securities analyst Timothy Lee discussed Q4/23 production results from Silver X Mining Corp.'s (AGX:TSX.V) Nueva Recuperada silver-polymetallic mine in Peru. Lee's report provides insight into the company's operational recovery following a temporary shutdown earlier in 2023.
Key financial results indicate Silver X processed 34,300 tonnes of ore in Q4/23, up 2.7% year-over-year. However, the head grade declined 12.5% to 321 g/t silver equivalent (AgEq).
Quarterly production totaled 292,380 oz AgEq, which was 3.3% below the prior year but exceeded Lee's estimates. Silver recoveries remained steady at approximately 89%. Lee notes that after resuming operations on September 19 following an operational re-set, Silver X has nearly ramped back up to pre-shutdown production levels, processing 445,000 oz AgEq at 308 g/t AgEq.
In his commentary, Lee views the production results positively as the company has quickly returned to normalized levels faster than anticipated. He further points out that Silver X has implemented cost-cutting measures and settled roughly US$2.2 million in debt by issuing 6 million common shares at CA$0.499 per share.
According to Lee, "These are positive results, as Silver X has quickly ramped up production to levels from before the mid-2023 shutdown faster than we had anticipated. As well, the settlement of debt for shares helps preserve working capital during this ramp-up."
In the report, Lee gave Silver X a Buy rating and a CA$0.80 target price.
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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..
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