Silver X Announces Record Operating Earnings of US$2 Milion and All-IN- Sustaining Cost PER Silver Equivalent Ounce Produced of US$15.8 IN Thethird Quarter 2022
SILVER X MINING CORP.
Suite 1430 – 800 West Pender Street, Vancouver, B.C. V6C 2V6
SILVER X ANNOUNCES RECORD OPERATING EARNINGS OF US$2 MILION AND ALL-IN-
SUSTAINING COST PER SILVER EQUIVALENT OUNCE PRODUCED OF US$15.8 IN THETHIRD
QUARTER 2022
Vancouver, B.C., November 28, 2022 - SILVER X MINING CORP. (TSX -V: AGX) (OTC QB:
AGXPF) (F: WPZ) ("Silver X" or the "Company") is pleased to report its interim financial results for the
three and nine months ended September 30, 2022. The full version of the condensed consolidated interim
financial statements and accompanying management discussion and analysis can be viewed on the
Company's website at www.silverxmining.com and on SEDAR at www.sedar.com. All financial
information is prepared in accordance with International Financial Reporting Standards ("IF RS") and all
dollar amounts are expressed in US dollars unless otherwise stated.
Mr. Jose M. Garcia, CEO of Silver X stated, “Month over month production improvements were the
hallmarks of the posi tive financial results during this quarter that we hope to see continue through the
remainder of the year as we continue ramping up to commercial production” Mr. Garcia continued, “During
the quarter we continued our track record of consistent execution while laying the building blocks for long-
term growth and tightening our operations further to continue improving our operating margins. As we are
transiting through the last stage of the ramp up of our operations, we will be providing the updates on
operational results on quarterly basis as opposed to the monthly updates provided to date”.
Q3 2022 Highlights
• Record quarterly operating revenues of $5.5 million, representing a 73% increase from previous
quarter.
• Record quarterly operating earnings attained of $2.0 million.
• The Company achieved net gain in a quarter for the first time, with a net gain of $0.2 million.
• Cash costs(1) of $11.0 per silver equivalent (“AgEq”) ounce produced (1)(2) and All-In-Sustaining
Cost(1) (“AISC”) of $15.8 per AgEq ounce produced(1)(2).
• Record monthly AgEq ounces processed in August of 195,039(2).
• Record quarterly AgEq ounces processed and produced(2) of 481,040 and 371,072, respectively.
Notes:
1. Cash costs per AgEq ounce produced and AISC per AgEq ounce produced are non-IFRS financial ratios. These are
based on non-IFRS financial measures that do not have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to other issuers. Please refer to the “Non-IFRS Measures” section of this press release for further
information.
2. AgEq ounces produced were calculated using the average sales prices of each metal for each month, and revenues from
concentrate sales does not consider metallurgical recoveries in the calculations as the metal recoveries are built into the
sales amounts.
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Summary of selected financial results
Note:
(1) Restatement due to adoption of amendments to IAS 16 effective for annual reporting period beginning on or after January 1, 20 22.
The Company changed its fiscal year -end from February 28 to December 31, resulting in a 10 -month transition year from March 1,
2021, to December 31, 2021.
For the three months ended September 30, 2022, the Company recorded a net gain before tax of $ 0.2
million, compared to a net loss before tax of $8.8 million in the four months ended September 30, 2021
(“Q3 2021”).
The reduction in loss in the current period was primarily due to increased operating revenues from the sale
of pre -commercial mineral production of $5.5 million (vs. $2.9 million in Q3 2021) reflective of the
continued ramp up of production , reduction in cost of sales of $3.5 million (vs. $4.8 million in Q3 2021)
and decreased general and administrative expenses, primarily as a result of a $4.2 million reduction in office
and administration costs (vs. $5.5 million in Q3 2021) due to reduced corporate activities, and reduction in
share-based payments of $2.9 million (vs. $3.5 million in Q3 2021).
Loss or gain on translation of foreign operations fluctuate s depending on the strength of the Peruvian sol
and Canadian dollar against the US dollar. Loss on translation for the three months ended September 30,
2022, of $1.1 million (vs. $0.2 million in Q3 2021) more than offset the net gain of $0.2 million resulting
in a comprehensive loss of $0.9 million (vs. $9.0 million comprehensive loss in Q3 2021).
Financial position
Financial Unit
For the three
months ended
September 30,
2022
For the four
months ended
September 30,
2021 - Restated (1)
Change
%
For the nine
months ended
September 30,
2022
For the ten
months ended
September 30, 2021 -
Restated (1)
Change
%
Operating Revenues $ million 5.5 2.9 91% 10.0 2.9 246%
Cost of Sales $ million (3.5) (4.8) -27% (10.2) (4.8) 112%
Operating earnings (loss) $ million 2.0 (1.9) -204% (0.2) (1.9) -91%
Exploration Expenditures $ million (0.0) (0.2) -89% (0.2) (0.7) -72%
General and Administrative expenses $ million (1.3) (5.5) -76% (3.1) (7.6) -59%
Other items $ million (0.1) (1.2) -91% (0.4) (1.2) -66%
Net gain (loss) before tax $ million 0.6 (8.8) -107% (3.9) (11.4) -66%
Deferred income tax (expense) recovery $ million (0.4) 0.0 0% 1.6 0.0 0%
Net gain (loss) $ million 0.2 (8.8) -102% (2.3) (11.4) -79%
(Loss) gain on translation of foreign
operations
$ million (1.1) (0.2) 411% (0.6) 0.4 -241%
Total comprehensive loss $ million (0.9) (9.0) -90% (2.9) (11.0) -73%
Shareholders
Loss per share, basic and diluted $/share (0.01) (0.09) -92% (0.02) (0.17) -87%
Financial Unit September 30,
2022
December 31,
2021 Change $
Cash $ million 0.9 4.5 (3.6)
Current assets $ million 5.7 8.0 (2.3)
Total assets $ million 65.0 66.9 (1.9)
Current liabilities $ million 14.8 17.6 (2.8)
Non-current liabilities $ million 10.1 11.8 (1.7)
Total liabilities $ million 24.9 29.4 (4.5)
Total shareholders' equity $ million 40.1 37.5 2.6
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The Company held cash of $0.9 million at September 30, 2022. The improved operating cash generation
attained during the quarter contributed to the reduction in the Company’s current and non-current liabilities
balances.
Q3 2022 Operational results
Operational Unit
For the three
months ended
September 30,
2022
For the four
months ended
September 30,
2021
For the nine
months ended
September 30,
2022
For the ten
months ended
September 30,
2021
Ore mined tonnes 28,457 28,864 56,583 28,864
Ore processed tonnes 31,049 34,720 63,329 34,720 - -
Average head grades
Silver g/t 68.4 30.9 74.9 30.9
Gold g/t 3.1 - 2.2 -
Zinc % 1.29 1.88 1.38 1.88
Lead % 1.40 1.30 1.46 1.30
Average AgEq head grades g/t 482 145 374 145
Average AgEq head grades oz/t 15.49 4.67 12.01 4.67 -
Average recoveries
Silver % 86% 78% 87% 78%
Gold % 78% - 68% -
Zinc % 81% 87% 81% 87%
Lead % 87% 86% 88% 86%0%
Metal produced
Silver oz 59,734 26,369 132,505 26,369
Gold oz 2,197 - 2,789 -
Zinc lbs 770,368 1,282,582 1,579,627 1,282,582
Lead lbs 845,016 868,157 1,812,157 868,157 -
AgEq processed (2) oz 481,040 162,282 798,855 162,282
AgEq produced (2) oz 371,072 139,417 591,072 139,417
Metal sold
Silver oz 55,260 26,542 122,228 26,542
Gold oz 2,205 - 3,197 -
Zinc lbs 683,011 1,119,725 1,503,294 1,119,725
Lead lbs 796,837 794,575 1,769,030 794,575
AgEq sold (2) oz 342,841 126,168 552,353 126,168 -
Average realized price (1) (3)
Silver $/oz 19.5 23.7 21.3 23.7
Gold $/oz 1,711 - 1,782 -
Zinc $/t 3,236 3,178 3,545 3,178
Lead $/t 1,990 2,352 2,110 2,352 -
Production cost per tonne processed (1) $/t 107 132 153 132
Cash cost per AgEq ounce (1) $/oz 11.0 36.0 18.7 36.0
AISC per AgEq ounce (1) $/oz 15.8 80.6 26.9 80.6
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Notes:
(1) Production cost per tonne processed, cash cost per AgEq ounce produced and AISC per AgEq ounce produced are non-IFRS ratios
with no standardized meaning under IFRS, and therefore may not be comparable to similar measures presented by other issue rs. For
further information, including detailed reconciliations to the most directly comparable IFRS measures, see "Non -IFRS Measures" in
this MD&A.
(2) AgEq ounces produced were calculated based on all metals produced using the average sales prices of ea ch metal for each month
during the period. Revenues from concentrate sales does not consider metallurgical recoveries in the calculations as the metal recoveries
are built into the sales amounts.
(3) Average realized price corresponds to the average prices for each metal on the following month after delivery, used to calculate the
final value of the concentrate delivered in a given month before any deductions.
Subsequent events to the quarter ended September 30, 2022
During October 2022, the Company completed, in two tranches, a private placement offering (“Offering”)
of 13,554,441 units of the Company (the “Units”) at a price of C$0.22 per Unit for a total gross proceeds
of C$2,981,977. Each Unit consisted of one common share in the capital of the Company (each a “Share”)
and one -half (1/2) of Share purchase warrant (each whole such warrant, a "Warrant"). Each Warrant
entitles the holder to purchase one Share at a price of C$0.33 for a period expiring two years followi ng
the applicable closing dates of the Offering. The Company paid fees to certain eligible finders consisting
of C$82,144 in cash and 372,700 finder warrants, each such finder warrant exercisable to purchase one
common Share at a price of C$0.33 expiring two years following the applicable closing date s of the
Offering.
On November 2, 2022, the Company granted 350,000 stock options at an exercise price of C$0.23 per
common Share for a period of five years to a Company consultant. The stock options will vest in
installments, 50% immediately, 25% in 6 months after date of grant and 25% in 12 months after date of
grant.
Also, during November 250,000 RSUs were cancelled and 575,000 RSU’s and 300,000 stock options
were exercised.
Qualified Person
Mr. A. David Heyl, B.Sc., C.P.G who is a qualified person under NI 43 -101, has reviewed and approved
the technical content of this news release for Silver X. Mr. A. David Heyl is a consultant for Silver X.
Non-IFRS Measures
The Company has included certai n non -IFRS financial measures and ratios in this news release, as
discussed below. The Company believes that these measures, in addition to measures prepared in
accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the
Company. The non -IFRS measures and ratios are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of performance prepared in accordance with
IFRS. These financial measures and rati os do not have any standardized meaning prescribed under IFRS,
and therefore may not be comparable to other issuers.
54215082\4
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Cash Costs and All-In Sustaining Cost
The Company uses cash costs, cash cost per AgEq ounce produced, AISC, and AISC per AgEq ounce
produced to manage and evaluate its operating performance in addition to IFRS measure because Company
believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate
the ability of its operations to generate cash flow s. The Company understands that certain investors use
these measures to determine the Company’s ability to generate earnings and cash flows for use in investing
and other activities. Management and certain investors also use this information to evaluate the Company’s
performance relative to peers who present this measure on a similar basis.
Cash costs is calculated by starting with cost of sales, and then adding treatment and refining charges, and
changes in depreciation and amortization.
Total cash production costs include cost of sales, changes in concentrate inventory, changes in
amortization, less transportation and other selling costs and royalties. Cash costs per AgEq ounce produced
is calculated by dividing cash costs by the AgEq ounces produced.
AISC and AISC per AgEq ounce produced are calculated based on guidance published by the World Gold
Council (and used as a standard of the Silver Institute). The Company presents AISC on the basis of AgEq
ounces produced. AISC is calculated by taking the cash costs and adding sustaining costs. Sustaining
costs are defined as capital expenditur es and other expenditures that are necessary to maintain current
production. Management has exercised judgment in making this determination.
The following table reconciles cash costs, cash costs per AgEq ounce, AISC and AISC per AgEq ounce
produced to cost of sales, the most directly comparable IFRS measure:
Unit
For the three
months ended
September 30,
2022
For the four
months ended
September 30,
2021
For the nine
months ended
September 30,
2022
For the ten
months ended
September 30,
2021
Cost of sales $ thousand 3,499.66 4,805.00 10,165.29 4,805.00
Changes in concentrate inventory $ thousand 147.73 268.91 26.07 268.91
Royalties $ thousand (156.60) (0.11) (336.25) (0.11)
Transportation and other selling costs $ thousand (84.28) (207.55) (160.20) (207.55)
Amortization $ thousand (215.66) (53.12) (473.29) (53.12)
Total cash production costs $ thousand 3,190.85 4,813.13 9,221.63 4,813.13
Royalties $ thousand 156.60 0.11 336.25 0.11
Transportation and other selling costs $ thousand 84.28 207.55 160.20 207.55
Treatment and refining charges and penalties$ thousand 645.85 0.00 1,387.52 0.00
Total cash costs (A) $ thousand 4,077.59 5,020.80 11,105.60 5,020.80
General and administrative $ thousand 1,327.96 5,489.45 3,125.87 7,550.03
Operating lease payments $ thousand 77.87 29.48 233.61 58.96
Accretion and Amortization of Reclamation Cost$ thousand 14.39 9.69 42.79 9.69
Sustaining Capital Expenditure: $ thousand 0.00 0.00 0.00 0.00
Development $ thousand 73.04 509.09 614.66 509.09
Purchase of PP&E $ thousand 300.96 180.99 806.53 180.99
Sustaining costs (B) $ thousand 1,794.23 6,218.69 4,823.47 8,308.75
All-In-Sustaining costs (A+B) $ thousand 5,871.81 11,239.49 15,929.06 13,329.55
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The following table shows the calculation of the cash costs and AISC per AgEq ounce produced:
Production Cost Per Tonne Processed
A reconciliation between production cost per tonne ( excluding amortization and changes in inventories)
and the cost of sales is provided below. Changes in inventories are excluded from the calculation of
Production Cost per Tonne Processed. Changes in inventories reflect the net cost of concentrate inventor y
(i) sold during the current period but produced in a previous period or (ii) produced but not sold in the
current period. The Company uses Production Cost Per Tonne Processed to evaluate its operating
performance in addition to IFRS measure because Compa ny believes that conventional measures of
performance prepared in accordance with IFRS do not fully illustrate the ability of its operations to generate
cash flows . Management and certain investors also use this information to evaluate the Company’s
performance relative to peers who present this measure on a similar basis.
Cautionary Note regarding Production without Mineral Reserves
The decision to commence production at the Nueva Recuperada Project and the Company's ongoing mining
operations as referenc ed herein (the " Production Decision and Operations ") are based on economic
models prepared by the Company in conjunction with management's knowledge of the property and the
existing estimate of inferred mineral resources on the property. The Production Dec ision and Operations
are not based on a preliminary economic assessment, a pre-feasibility study or a feasibility study of mineral
reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and
economic and technic al risks of failure associated with the Production Decision and Operations, in
particular: the risk that mineral grades will be lower than expected; the risk that additional construction or
Unit
For the three
months ended
September 30,
2022
For the four
months ended
September 30,
2021
For the nine
months ended
September 30,
2022
For the ten
months ended
September 30,
2021
AgEq ounces produced oz 371,072 139,417 591,072 139,417
Totals:
Cash costs $ thousand 4,077.59 5,020.80 11,105.60 5,020.80
Sustaining costs $ thousand 1,794.23 6,218.69 4,823.46 8,308.75
All-In-Sustaining costs $ thousand 5,871.81 11,239.49 15,929.06 13,329.55
Per AgEq ounces produced:
Cash costs $ 11.0 36.0 18.8 36.0
Sustaining costs $ 4.8 44.6 8.2 59.6
All-In-Sustaining costs $ 15.8 80.6 26.9 95.6
Unit
For the three
months ended
September 30,
2022
For the four
months ended
September 30,
2021
For the nine
months ended
September 30,
2022
For the ten
months ended
September 30,
2021
Cost of Sales $ million 3.50 4.81 10.17 4.81
Adjustments - increase/(decrease):
Amortization $ million (0.22) (0.05) (0.47) (0.05)
Changes in inventories $ million 0.04 (0.16) 0.01 (0.16)
Production costs (excluding inventory adjustments) $ million 3.33 4.60 9.70 4.59
Tonnes processed tonnes 31,049 34,720 63,329 34,720
Production cost per tonne processed $/t 107 132 153 132
54215082\4
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ongoing mining operations are more difficult or more expensive tha n expected; and production and
economic variables may vary considerably, due to the absence of a detailed economic and technical analysis
in accordance with NI 43-101.
About Silver X
Silver X is a Canadian silver mining company with assets in Peru. The C ompany’s flagship asset is the
Tangana silver, gold, lead, zinc and copper project (the "Project") located in Huancavelica, Peru, 10 km
north-northwest of the Nueva Recuperada polymetallic concentrate plant. Founders and management have
a successful track record of increasing shareholder value. For more information visit our website at
www.silverxmining.com.
For further information, please contact:
Silver X Mining Corp.
José M. Garcia, CEO
+1 604 831 8070 | [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding “Forward-Looking” Information
This press release contains forward -looking information within the meaning of applicable Canadian securities legislation
(“forward-looking information”). Generally, forward -looking information can be identified by the use of forward -looking
terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain acts,
events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained i n
this press release, other than statements of current and historica l fact, is forward looking information. Forward -looking
information contained in this press release may include, without limitation , results of operations, and expected performance at
the Company’s Nueva Recuperada Project (the “Project”), and the expected financial performance of the Company.
The following are some of the assumptions upon which forward -looking information is based: that general business and
economic conditions will not change in a material adverse manner; demand for, and stable or improving price for the commodities
we produce; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will
not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the
Company’s operations at the Project and Nueva Recuperada Plant; the availability of financing for operations and development;
the Company’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basi s; that the
estimates of the resources at the Project and the geological, operational and price assumptions on which these and the Company’s
operations are based are within reasonable bounds of accuracy (including with respect to size, grade and recovery); the
Company’s ability to attract and retain skilled personnel and directors; and the ability of management to execute strategic goals.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the ac tual
results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those
expressed or implied by such forward -looking information, including but not limited to those risks described in the Compa ny’s
annual and interim MD&As and in its public documents filed on www.sedar.com from time to time. Forward-looking statements
are based on the opinions and estimates of management as of the date such statements are ma de. Although the Company has
attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as anticipated, estimate d or intended. There can be no
assurance that such information will prove to be accurate, as actual results and future events could differ materially from t hose
anticipated in such statements. Accordingly, readers should not place undue reliance on forward -looking information. The
Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.