Silver X Mining Corp. (AGX:TSX.V) released its Q3/23 financials and got a target price boost to CA$0.80 per share from CA$0.75 by Red Cloud Securities after it updated its valuation of the Canadian metals producer, reported mining analyst Timothy Lee in a November 30 research note.
"These results are about in line with expectations," Lee wrote.
Compelling Return Implied
Compared to the new target price, Silver X's current price is about CA$0.27 per share, noted Lee. From here, the return to target represents a significant gain for investors of 196%.
Red Cloud rates the company Buy.
Numbers as Expected
Lee reviewed British Columbia-based miner's key financial figures from Q3/23.
Silver X reported a net loss of US$1.5 million (US$1.5M), or (US$0.01) per share, consistent with Red Cloud's forecast.
In Q3/23, revenue was down as expected year over year (YOY) because the miner temporarily halted production between July 26, 2023 and September 19, 2023 to evaluate and optimize its operations in Peru. The company's revenue in the third quarter was US$2.1M; a year earlier, it was more than double this amount, at US$5.5M.
Silver X experienced an operating loss in Q3/23 of US$0.8M, whereas, in Q3/22, it achieved an operating gain of US$2M.
"Production, since the resumption of operations, has been returning to the highs seen before the break," Lee reiterated.
Q3/23 cash costs averaged US$22.01 per ounce of silver equivalent (US$22.01/oz Ag eq). The all-in sustaining cost was US$33.45/oz Ag eq. US$11.44/oz Ag eq, or US$1.3M, of this was sustaining capex for development work at the Tangana mining unit.
Near-Term Outlook Positive
Given Silver X has been rapidly increasing production since restarting it on Sept. 20, Lee wrote an "upswing" is expected in Q4/23.
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Important Disclosures:
- [Silver X Mining Corp.] is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- 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.
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Disclosures for Red Cloud Securities, Silver X Mining Corp., November 30, 2023
Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
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