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Source: Streetwise Reports (5/21/24)

Silver X Mining Corp has released its financial results for the first quarter of 2024, highlighting significant developments and achievements. Read on to find out what these numbers mean for investors.

Silver X Mining Corp. (AGX:TSX.V) recently released its financial results for the first quarter of 2024 that it incurred cash costs of US$15.36 per silver equivalent (AgEq) ounce produced, with an All-In Sustaining Cost (AISC) of US$21.36 per silver equivalent (AgEq) ounce. These figures are indicative of the substantial capital expenditures, notably the US$1.8 million invested in the development of the Tangana mining unit, which added an additional US$6.00 per AgEq ounce to the AISC.

The company also reported a positive EBITDA of US$0.3 million and an adjusted EBITDA of US$0.4 million for the quarter. Despite these positive earnings metrics, the operating income was relatively low at US$6,000, and there was a net loss before tax of US$0.9 million. This suggests that while the company is managing to generate some operational profits, it is still facing challenges that impact its overall profitability.

Silver's Shimmering Future

Katsusa Research explained why silver has so much upside compared to other commodities in an April report: "Now, the reason that silver can make such massive moves so quickly when compared to gold is because the global market cap is tiny. Thus, any marginal increase in silver buying or selling tends to send prices into a frenzy."

321 Gold President Bob Moriarty has high hopes for both gold and silver, writing on May 1, "Gold could spit and hit a new all-time high while silver is a few pennies from the highest it has been in thirteen years."

In an April Stockhead report from Josh Chiat, the eventful year for silver was highlighted with quotes and facts. Chiat wrote, "According to Adriatic Metals CEO Paul Cronin, whose dual ASX and London listed miner just opened the silver dominant Vares mine in Bosnia and Herzegovina, silver has typically traded at a ratio of 30 times lower than the gold price. In the first half of 2023 it hit a historically high level of 83:1."

Technical Analyst Clive Maund shared his thoughts on the silver market in a May article, where he wrote, "Silver showed no such hesitancy and broke out of its bull Flag and raced ahead, clearing the important psychological (US)$30 barrier almost as if wasn't there and as we can see on its 6-month chart it looks set for further gains as it has a ways to go before it reaches the upper rail of its uptrend channel."

Catalysts From This News

Key catalysts driving the company's potential include the active expansion and development of operations, particularly through investment in the Tangana mining unit. The US$1.8 million investment not only adds to the company’s all-in-sustaining cost but is crucial for accessing new production fronts and transitioning to higher-grade areas, expected to substantially improve output and reduce overall production costs.

Additionally, Silver X recently completed a non-brokered private placement that raised CA$5 million. This capital infusion is earmarked for further development of its mining projects, supporting the company’s strategy to strengthen its financial base and ensure continued operations and expansion.

CEO Jose Garcia highlighted the strategic nature of this funding and its role in the company's ongoing cost-reduction initiatives, which are starting to yield positive results.

"As a result of the operational reset between July and September last year, we have managed to streamline operations, improve performance, and run the mine at a more competitive cost," Garcia remarked. "Those economic results will be published in the next few weeks. We continue to forge ahead in increasing throughput and to improve head-grades by better ore selectivity and more robust mine development. I look forward to a successful 2024 year ahead for Silver X."

Operational efficiencies are another focal point for Silver X, with several cost reduction strategies beginning to bear fruit, evidenced by the positive EBITDA in the first quarter. Garcia also noted the potential for these initiatives to drive further enhancements in operational performance, aiming to increase performance throughout 2024, thereby fostering growth and value creation for shareholders.

Analysis From Outside Experts

Technical analyst Clive Maund had this to say about silver's prospects, and Silver X specifically, in a report on February 12, "Notwithstanding any short-term fluctuations, the medium and long-term outlook for the silver price could scarcely be better as it is considered to be probably the most undervalued asset in the world, especially when we consider the grim prospects for the dollar and fiat generally and needless to say this is expected a huge impact on the fortunes of the company going forward."

He added, "In conclusion, with Silver X now at a very low price and close to strong support, and the company's fundamental prospects rapidly improving, it looks like a Buy here for all timeframes."

Red Cloud Securities mining analyst Timothy Lee wrote of the company many times, the latest in a May 17 research note. In the note, Lee reported, two, upcoming catalysts for Silver X. They include continued production ramp-up at Nueva Recuperada, a production start at the Plata mining unit next year, followed by mill capacity expansion to 2,000 tons per day.

"Ramp-up to full production at Nueva Recuperada, along with plans for further expansion, could lead to a rerating of the stock," purported Lee, reiterating his Buy rating on the stock and CA$0.75 target price.

Ownership and Share Structure

Streetwise Ownership Overview*

Silver X Mining Corp. (AGX:TSX.V)

^*Share Structure as of 5/17/2024

Source: Thomson Reuters

According to the company, Silver X has 166.6 million shares outstanding.

Silver X said management and insiders own approximately 17% of the company. According to Reuters, President and CEO Jose Garcia owns 8.24% of the company (updated in Reuters April 12, 2024), and Vice President Sebastian Wahl owns 8.35% (updated in Reuters on April 24, 2024).

The company said institutional investors own 23%. Some listed by Reuters include Baker Steel Resources Trust Ltd. owns 11.29%, US Global Investors Inc. owns 4.63%, and Sprott Asset Management LP owns 1.07%.

Retail investors own the remaining.

Silver X has a market cap of CA$28.3 million and a 52-week trading range of CA$0.16−0.41 per share.

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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.
James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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