Silver X Mining Corp. (AGX:TSX.V; AGXPF:OTC) has a lofty goal for its Nueva Recuperada asset in Peru but is on the path toward achieving it, experts said.
"Our vision is clear: in the next three years, grow organically to produce 6,000,000 ounces of silver equivalent (6 Moz of Ag eq) per year," Chief Executive Officer and Director José M. García recently told shareholders.
Spanning 20,472 hectares, Nueva Recuperada is roughly the size of Seattle, Wash., and is divided into multiple projects. There are the Tangana Mining Unit, in production since 2023; the Plata Mining Unit, at an advanced stage; and Tangana Brownfield, Plata Brownfield, Victoria HS Gold and Red Silver, all exploration targets.
Lately Silver X has been focused on securing financing to bolster its balance sheet. To this end, The company has a CA$3.0 million (CA$3M) brokered private placement underway that is expected to close on March 13, according to a recent news release. For this equity raise, up to 17.6 million (17.6M) units of the company are being sold at CA$0.17 apiece, with an option to sell an additional 2.9M units, to yield another CA$500,000.
The Peruvian-based miner intends to use the net proceeds on capital and exploration expenditures for its Nueva Recuperada operations, working capital, and general corporate purposes.
Prior to this private placement, Silver X secured a loan facility of up to US$1.4M for its wholly owned subsidiary, Recuperada S.A.C., from Trafigura PTE Ltd., a global commodity trader, as announced in an earlier news release. Along with paying interest on the loan facility, which has a tenor of up to 25 months, Silver X is to issue a loan bonus, 1.5M Silver X common share purchase warrants, to Trafigura affiliate Urion Holdings (Malta) Ltd.
On another track, Silver X has continued working to expand the resource at Nueva Recuperada, as reflected in the recently announced updated estimate. Growth in all categories since the 2023 preliminary economic assessment (PEA) took the global resource to 208 Moz of Ag Eq. Of this, Tangana accounts for 70%, and Plata, 30%.
In the resource update, the Plata Mining Unit emerged as a "game changer," said Garcia, a high-grade historical, operating target. Indicated recoverable resources at Plata are 0.951 million tons of 6.11 ounce per ton silver, 4.24% zinc, and 2.44% lead.
*"A very important point is that the company increased Measured and Indicated (M&I) resources by 18% in just one year," Technical Analyst Clive Maund wrote in a March 4 report. The M&I resource went to 4,260,000 tons (4.26 Mt) from 3.60 Mt. The Inferred resource increased 45% to 17.18 Mt from 11.89 Mt.
Silver X has also strengthened its management team by adding two people based in Peru. David Gleit came on as the chief financial officer, bringing nearly 25 years of finance experience leading international mining, construction, and asset management firms. His focus is generating cash and growing a profitable business. Angel Meza joined as the operations manager. He has 35 years of experience in underground mining, including at the Katanga mine in the Democratic Republic of the Congo.
"They are exactly the right people to drive our company and our operations forward," Garcia said.
Recently, Freddy Mayor, the former chief operating officer, has recently retired, and Garcia will be assuming the duties temporarily.
Becoming a Medium Producer
Headquartered in British Columbia, Silver X is a mining company offering investors the chance to get into a growing silver producer.
"Silver X Mining is not just another silver company," Garcia said. "We are building something unique: a true silver producer, developing an unparalleled asset. It is a rare combination."
The company continues to deliver as it says it will. At Nueva Recuperada, along with expanding the resources, production has increased, too. The Tangana Mining Unit, producing silver, gold, lead, and zinc from the Tangana Main vein area, is now ramping up to 720 tons per day (720 tpd) nameplate capacity from 600 tpd. Tangana alone could reach 1,500 tpd (1.5 Ktpd), noted Garcia.
Chen Lin of his What is Chen Buying? What is Chen Selling? newsletter, commented that Silver X announced "very good high grade resources" in its updated estimate for Nueva Recuperada.
Nueva Recuperada has "tremendous opportunity" and "a lot of scope for both increasing production and brownfield expansion," Maund wrote. "So strong growth is a prospect, especially as metal prices are expected to advance." Yet, Silver X only has capitalized on a small part of it.
Further upside lies in the multiple veins at Tangana, Plata and Red Silver that were not factored into the current resource, Fundamental Research Corp. analysts wrote in a March 1 initiation report. For instance, the area being mined at Tangana represents only 5% of the Tangana Mining Unit resource. Though more than 200 veins and splits were identified there, just 18 were included in the PEA, "highlighting the growth potential at Tangana."
The Plata Mining Unit resource is based on 19 of the 171 veins mapped in the area. Plus, significant exploration upside exists there, given the resource is open at strike and at depth. According to Garcia, it would only take a few targeted drill holes to grow the Plata resource materially.
Further, management is seeking mergers and acquisitions opportunities in overlooked historical mining districts to which it could apply its exploration, development and production expertise, the 2025 Corporate Presentation noted.
Silver Price Expected to Surge
The outlook for silver remains positive, given an increasing global supply deficit. Demand for the metal is strong and growing, but new supply continues to fall behind.
Silver is "undervalued" and "poised for an explosive move higher," Richard Mills wrote in a recent Ahead of the Herd edition.
Emkay Wealth Management Ltd. indicated that numerous factors will continue to support the silver price, The Economic Times reported on March 6. These include falling U.S. interest rates, ongoing geopolitical conflicts, and the Trump Administration's trade policies.
Silver demand will continue to come from industrial applications, green technology, and retail investment, according to The Silver Institute.
"This year, industrial scrap will be the key growth driver, particularly changeouts in ethylene oxide catalysts," the institute added. "Jewelry and silverware recycling will also rise, reflecting India's price-led gains."
Red Cloud Securities Analyst Alina Islam also covers Silver X. The investment bank has a Buy rating on it and a target price implying 556% return potential.
GoldSilver noted that by 2050, solar energy could account for 85−98% of the current global silver reserve. The automotive industry will play a big role in rising silver demand, too, in light of increasing vehicle sophistication, rising electrification of powertrains and ongoing investments in electric vehicle infrastructure like charging stations. GoldSilver Lead Analyst Alan Hibbard indicated he expects silver to hit US$40 per ounce (US$40/oz) this year and reach an all-time high of US$52.50 next year.
Silver Expert Peter Krauth, expects industrial demand for silver to set a new record this year of more than 700 Moz ounces, he wrote in Silver Advisor last month. New supply faces ongoing challenges that include falling grades and drawn out permitting and construction timelines. Low prices and economic concerns could lead to decreased production of silver as a byproduct. He predicted the overall deficit in the global silver supply to reach 170−180 Moz this year.
Michael Oliver of Momentum Structural Analysis anticipates a surge in the silver price and a potential concurrent downturn in the stock market, he said in a recent interview, reported The Jerusalem Post on March 4. He noted that a material drop in the NASDAQ 100 would indicate the broader market was about to collapse, and this would set off a flight to silver and gold, safe haven assets.
"If we enter an acceleration phase in the net price of the monetary metals, we think we're also going to see silver outpace gold," added Oliver.
Further, he predicted that silver (and gold) producers will significantly outperform gold in the coming months. Because silver miners are undervalued now, he said, they present a compelling investment opportunity.
Various financial institutions' silver price forecast for 2025 ranges from US$29.50 to US$40/oz, reported InvestingHaven last month. The firm itself predicted the silver price will touch US$49/oz this year, consolidate around US$50 next year, move closer to US$77 in 2027 and peak at US$82 in 2030.
"All leading indicators, chart patterns, and market dynamics are in favor of silver," InvestingHaven wrote. "We conclude that the price of silver will continue to mildly rise, combined with one or a few wildly bullish periods."
The Catalysts: PEA to Plant Expansion
With its goal of roughly quadrupling current production at Nueva Recuperada, Silver X has multiple catalysts ahead. One expected next quarter is the completion of an updated PEA that will encompass both the Tangana and Plata Mining Units, optimize ore sources, and expand processing capacity.
Also, this year, the company intends to boost profitable production at Tangana, mining the best areas as efficiently as possible and ramping up to 750 tpd. As for the Plata Mining Unit, Silver X will advance it toward a production start next year 2026.
"We envision an opportunity to combine fast-track production with a growing resource, especially in the face of a good silver market," Garcia said.
Other catalysts pertain to the company's plans to expand the current processing plant and build a second one. Silver X plans to evaluate the feasibility of doubling the existing plant's capacity to 1.5 Ktpd and update the environmental and social impact assessment to reflect that. It will secure the permits to build a new 1.5 Ktpd processing facility. This second plant would boost total production capacity to 3 Ktpd, three times what it is now.
Experts Bullish, Say to Buy
Technical Analyst Maund wrote that AGX offers lots of upside from its current price and recommended it as an Immediate Buy for all time frames. The charts show the stock has dropped to the lower boundary of a giant trading range, an indication it is about to reverse and rally soon, especially as the silver price is set to soar.
"The company is advancing steadily towards its goals with the combination of improving cost efficiencies, increasing production, and the prospect of a powerful bull market for its principal product, silver, promising a bright future — and a much higher stock price," Technical Analyst Clive Maund wrote in his March 4 report.
Maund noted his target estimates for AGX. The first is CA$0.22–0.23 per share, the second is CA$0.36–0.38 and the third is CA$0.45–0.50, after which it should "ascend to higher levels."
FRC analysts resumed coverage of Silver X earlier this month with a Buy rating and a fair value estimate reflecting a 513% upside from the current price. They pointed out that the miner is trading at an 80% discount to the junior silver producers' average.
"We believe AGX offers a compelling value proposition, driven by its substantial resource growth, ability to ramp up production quickly, and a significant discount to peer valuations," the analysts wrote. "We forecast a significant boost in revenue and earnings per share for 2025, driven by AGX's ability to ramp up production."
Streetwise Ownership Overview*
Silver X Mining Corp. (AGX:TSX.V;AGXPF:OTC)
Chen Lin, in the Feb. 26 issue of his What is Chen Buying? What is Chen Selling? newsletter, commented that Silver X announced "very good high grade resources" in its updated estimate for Nueva Recuperada. He also wrote that if the company can get cash flow positive, "it can have a big run."
Red Cloud Securities Analyst Alina Islam also covers Silver X. The investment bank has a Buy rating on it and a target price implying 556% return potential.
Ownership and Share Structure
According to Refinitiv, six strategic investors own 21.63% of Silver X. The top shareholder is Baker Steel Resources Trust Ltd. with 9.66%. Next is CEO Garcia with 7.07%, followed by Sebastian Wahl with 4.83%.
The rest of the company's shares are in retail.
As for share structure, Silver X has 201.89 million (201.89M) outstanding shares and 158.21M free float traded shares.
Its market cap is CA$27.08 million. Its 52-week high and low are CA$0.38 and CA$0.16 per share.
| Want to be the first to know about interesting Base Metals and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Silver X Mining Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- 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.
For additional disclosures, please click here.
* Disclosure for the quote from the Clive Maund article published on March 4, 2025
- For the quoted article (published on March 4, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500.
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed
Clivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.
