Silver X Reports First Quarter 2023 Financial Results Generated revenues of $4.6 million, sustaining capital expenditures at Tangana while production ramp up continues
SILVER X MINING CORP.
Suite 1430 – 800 West Pender Street | Vancouver, BC | V6C 2V6
Silver X Reports First Quarter 2023 Financial Results
Generated revenues of $4.6 million, sustaining capital expenditures at Tangana while production
ramp up continues
(All dollar amounts expressed in US dollars unless otherwise noted)
VANCOUVER, BC, May 24, 2023 – Silver X Mining Corp. (TSX-V: AGX) (OTCQB: AGXPF) (F: AGX) ("Silver X" or
the "Company") is pleased to report its interim financial results for the three months ended March 31, 2023 (“Q1
2023”) for the Nueva Recuperada Project (the “Project”) in central Peru.
“The year is off to a great start as ramp up of production progressed and strong metals prices contributed to
revenues of $4.6 million,” stated José M. García, President and CEO of Silver X. “ Overall, I am pleased with the
progress we are seeing at Tangana . Cash generated from operations sustain ed capital expenditures for the
Tangana mining unit where development was accelerated to over 2,000 metres to support steady production
throughout the remainder of the year . Results from the third quarter of 2022 are representative of where we
expect to see production and costs stabilize as full ramp up is achieved.”
First Quarter 2023 Highlights
• Generated revenues of $4.6 million, representing an 18% increase when compared to the fourth quarter
of 2022 and demonstrative of the ramp up towards stable production.
• Operating loss of $0.4 million, partially affected by the social disruption in Peru during Q1 2023,
compared with an operating loss of $2.5 million in Q1 2022.
• Net loss before tax of $1.1 million compared with a net loss of $3.1 million in Q1 2022, a 38%
improvement as ramp up of production continues.
• Cash costs1 of $18.50 per silver equivalent (“AgEq”)2 ounce produced and All-In-Sustaining Cost (“AISC”)1
of $26.60 per AgEq ounce produced, reflective of the sustaining capital expenditure invested in the
development of the Tangana mining unit ($1.5 million adding $5.2 million to the AISC).
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 news release for further information.
2 AgEq ounce produced were calculated using the average sales prices of each metal for each month, and revenues from concentrate sales do not consider
metallurgical recoveries in the calculations as the metal recoveries are built into the sales amounts.
Events Subsequent to the End of the Quarter
• On May 17, 2023, announced a non-brokered private placement of up to CAD$3 million.
• Published the Company’s inaugural Sustainability Report, which can be found on the Silver X website at
https://www.silverxmining.com/sustainable-development.
Summary of Selected Financial Results
The information provided below are excerpts from the Company’s unaudited interim Financial Statements and
Management’s Discussion and Analysis (“MD&A”), which can be found on the Company’s website at
www.silverxmining.com/investor#report or on SEDAR at www.sedar.com.
Q1 2023 Q1 2022 Change
Operating Revenues $ 4,575,940 $ 1,308,153 250%
Cost of Sales (4,986,532) (3,829,209) 30%
Operating loss $ (410,592) $ (2,521,056) -84%
Exploration Expenditures (15,423) (39,162) -61%
General and Administrative expenses (759,491) (664,323) 14%
Other items 108,377 31,933 239%
Net loss before tax $ (1,077,129) $ (3,192,608) -66%
Deferred income tax (expense) recovery 207,000 1,789,000 -88%
Net loss $ (870,129) $ (1,403,608) -38%
Gain (Loss) on translation of foreign
operations (83,201) 350,585 -124%
Total comprehensive loss $ (953,330) $ (1,053,023) -9%
Shareholders
Loss per share, basic and diluted $ (0.01) $ (0.01) -52%
EBITDA1 $ (528,478) $ (3,084,381) -83%
Adjusted EBITDA1 (643,737 (3,053,994) -79%
Adjusted EBITDA per share (0.004) (0.02) -84%
Notes:
1. EBITDA, Adjusted EBITDA and Adjusted EBITDA per share are non -IFRS ratios with no standardized meaning under IFRS, and
therefore may not be comparable to similar measures presented by other issuers. For further information, including detailed
reconciliations to the most directly comparable IFRS measures, see "Non-IFRS Measures" in this news release and the MD&A.
For the three months ended March 31, 2023, the Company recorded a net loss before tax of $1.1 million,
compared to a net loss before tax of $3.2 million in the three months ended March 31, 2022 (“Q1 2022”).
The reduction in loss in the current period was primarily due to increased operating revenues from the sale of
pre- commercial mineral production of $4.6 million (vs. $1.3 million in Q1 2022) reflective of the continued ramp
up of production partially offset by increased production costs in line with the higher production level achieved
in the current period of 40,271 tonnes processed (11,403 in Q1 2022).
Loss or gain on translation of foreign operations fluctuates de pending on the strength of the Peruvian sol and
Canadian dollar against the US dollar. The Company recorded l oss on translation for the three months ended
March 31, 2023, of $0.08 million (vs. $0.4 million gain in Q1 2022) resulting in a comprehensive loss of $0.95
million (vs. $1.05 million comprehensive loss in Q1 2022).
Financial Position
Q1 2023 Q1 2022 Change
Cash $ 790,396 1,023,979 -23%
Current assets 6,068,332 6,418,921 -5%
Total assets 67,316,852 66,274,464 2%
Current liabilities 19,204,654 17,031,916 13%
Non-current liabilities 10,564,743 10,875,237 -3%
Total liabilities 29,769,397 27,907,153 7%
Total shareholders' equity 37,547,455 38,367,311 -2%
The available cash during the period was reduced by $0.2M mainly driven by the investment deployed for the
continuing development of the Tangana mine unit, which saw higher development rates during the period. The
Company continues to actively manage the existing payables either through the cash flow generated fr om the
operations and/or through other available sources of financing to further improve its working capital.
Operational Results
Unit Q1 2023 Q1 2022
Ore mined tonnes 33,756 7,836
Ore processed tonnes 40,271 11,403
Average head grades
Silver g/t 53.4 72.9
Gold g/t 0.99 0.60
Zinc % 1.78 1.47
Lead % 1.52 1.37
Average AgEq head grades g/t 277 236
Average AgEq head grades oz/t 8.90 7.58
Average recoveries
Silver % 88% 87%
Gold % 64% 55%
Zinc % 83% 84%
Lead % 87% 89%
Metal processed
Silver oz 69,218 30,410
Gold oz 1,286 237
Zinc lbs 1,577,974 379,486
Lead lbs 1,351,560 351,372
AgEq processed (2) oz 358,727 98,327
Metal produced
Silver oz 60,544 26,243
Gold oz 862 -
Zinc lbs 1,300,419 326,064
Lead lbs 1,179,026 320,547
AgEq produced (2) oz 282,687 63,499
Metal sold
Silver oz 57,096 20,811
Gold oz 908 155
Zinc lbs 1,172,715 339,804
Lead lbs 1,106,537 334,713
AgEq sold (2) oz 254,741 59,785
Average realized price (1) (3)
Silver $/oz 22.6 24.5
Gold $/oz 1,889 1,934
Zinc $/lbs 1.42 1.83
Lead $/lbs 0.97 1.07
Production cost per tonne processed (1) $/t 110 329
Cash cost per AgEq ounce processed (1) $/oz 18.5 63.1
AISC per AgEq ounce processed (1) $/oz 26.6 84.4
Notes:
1. Average Realized Price, 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
issuers. For further information, including detailed reconciliations to the most directly comparable IFRS measures, see "Non-IFRS Measures"
in this news release and the MD&A.
2. AgEq ounces produced were calculated based on all metals produced using the average sales prices of each 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.
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.
Non-IFRS Measures
The Company has included certain 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
ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to
other issuers.
Cash Costs, All-In Sustaining Cost, EBITDA and Adjusted EBITDA
The Company uses cash costs, cash cost per AgEq ounce produced, AISC, AISC per AgEq ounce produced, EBITDA
and Adjusted EBITDA to manage and evaluate its operating performance in addition to IFRS measure because
the Company believes that conventional measures of performance prepared in accordance with IFRS do not fully
illustrate the ability of its operations to generate cash flows. 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 calcul ated 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 expenditures and other expendit ures 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:
For the three months ended
March 31, 2023 March 31, 2022
Cost of sales $ 4,986,532 $ 3,829,209
Changes in concentrate inventory (132,927) (29,279)
Royalties (137,358) (48,197)
Transportation and other selling costs (79,610) (31,888)
Amortization (427,544) (45,316)
Total cash production costs $ 4,209,094 $ 3,674,530
Royalties 137,358 48,197
Transportation and other selling costs 79,610 31,888
Treatment and refining charges and penalties 809,521 253,762
Total cash costs (A) $ 5,235,582 $ 4,008,377
General and administrative 759,491 664,323
Operating lease payments - 77,871
Accretion and Amortization of Reclamation 20,601 14,102
Sustaining Capital Expenditure:
Development 1,478,326 272,839
Purchase of PP&E 24,226 319,680
Sustaining costs (B) $ 2,282,645 $ 1,348,815
All-In-Sustaining costs (A+B) $ 7,518,227 $ 5,357,191
The cash cost during the period reflects in all its cost components the increased level of tonnage of ore processed
of 40,271 tonnes (11,403 tonnes in Q1 2022). As a result of the higher production and sales volumes during the
quarter the Company incurred in $0.8 million in treatment and refining charges (vs. $0.3 million in Q1 2021).
The capital expenditure deployed in the development of the mine during the quarter of $1.4 million was the
main cost contributor to the AISC (vs. $0.3 million in Q1 2022). Th e sustained investment within the mine
development will enable the Company to access new production fronts and transition to higher head grades
areas.
The following table reconciles the Net Loss to the EBITDA and Adjusted EBITDA:
For the three months ended
March 31, 2023 March 31, 2022
Net Loss $ (870,129) $ (1,403,608)
Deferred income tax recovery (207,000) (1,789,000)
Finance cost 121,107 62,911
Amortization 427,544 45,316
EBITDA $ (528,478) $ (3,084,381)
Foreign exchange gain (229,484) (91,686)
Share-based payments 114,225 122,073
Adjusted EBITDA $ (643,737) $ (3,053,994)
Adjusted EBITDA per share $ (0.004) $ (0.02)
The following table shows the calculation of the cash costs and AISC per AgEq ounce produced:
For the three months ended
March 31, 2023 March 31, 2022
AgEq ounces produced 282,687 63,499
Totals:
Cash costs $ 5,235,582 $ 4,008,377
Sustaining costs 2,282,645 1,348,815
All-In-Sustaining costs $ 7,518,227 $ 5,357,191
Per AgEq ounces produced:
Cash costs $ 18.5 $ 63.1
Sustaining costs 8.1 21.2
All-In-Sustaining costs $ 26.6 $ 84.4
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 inventory (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
Company 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 perfo rmance relative to peers who present this measure on a similar
basis.
For the three months ended
March 31, 2023 March 31, 2022
Cost of Sales $ 4,986,532 $ 3,829,209
Adjustments - increase/(decrease):
Amortization (427,544) (45,316)
Changes in inventories (132,927) (29,279)
Production cash costs (excluding inventory adjustments) $ 4,426,061 $ 3,754,614
Tonnes processed 40,271 11,403
Production cash cost per tonne processed $/t 110 $/t 329
Average Realized Price
Average realized price is a non -IFRS financial measure. The Company uses "average realized price per ounce of
silver”, "average realized price per ounce of gold”, "average realized price per ounce of zinc” and "average
realized price per ounce of lead” because it understands that in addition to conventional measures prepared in
accordance with IFRS, certain investors and analysts use this information to evaluate the Company’s
performance as compared with “average market prices” of metals for the period.
Average realized metal prices represent the sale price of the metal. 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:
For the three months ended
March 31, 2023 March 31, 2022
Silver
Gross revenue $ 1,290,028 509,111
Metal sold oz 57,096 20,811
Average realized price $/oz 22.6 24.5
Gold
Gross revenue $ 1,714,420 300,602
Metal sold oz 908 155
Average realized price $/oz 1,889 1,934
Zinc
Gross revenue $ 1,660,752 620,606
Metal sold lbs 1,172,715 339,804
Average realized price $/lbs 1.42 1.83
Lead
Gross revenue $ 1,075,698 357,707
Metal sold lbs 1,106,537 334,713
Average realized price $/lbs 0.97 1.07
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 referenced herein (the "Production Decision and Operations") are based on economic models
prepared by the Company in conjunction with managem ent's knowledge of the property and the existing
estimate of measured, indicated and inferred mineral resources on the property. The Production Decision 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 technical risks of failure associated with the Production Decision and Operations, in particular: the
risk that mine ral grades will be lower than expected; the risk that additional construction or ongoing mining
operations are more difficult or more expensive than expected; and production and economic variables may vary
considerably, due to the absence of a current NI 43-101 compliant technical report that demonstrates economic
and technical viability and allows classification of some measured and indicated resources to be classified as
mineral reserves.
Refer to the Company's MD&A for more details of the financial results and for reconciliations of the Company's
non- IFRS performance measures to the nearest IFRS measure. The full version of the unaudited 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 ("IFRS") and all d ollar amounts are expressed in US dollars
unless otherwise stated.
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.
About Silver X Mining Corp.
Silver X is a rapidly -expanding silver developer and producer. The Company owns the 20,000 -hectare Nueva
Recuperada Silver District in Central Peru and produces silver, gold, lead and zinc from the Tangana Mining Unit.
Our mission is to be a premier silver company delivering outstanding value to all stakeholders and we aim to
achieve this by consolidating and developing undervalued assets, creating value by adding resources and
increasing production while aspiring to social and environmental excellence. For more information visit our
website at www.silverxmining.com.
ON BEHALF OF THE BOARD
José M. García
President and CEO
For further information, please contact:
Fiona Grant Leydier
Vice President, Investor Relations and Corporate Marketing
T: +1 647 259 6901 x 101
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 ca n 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 in this press release, other than statements of current and historical fact, is forward looking information. Forward-
looking information contained in this press release may include, without limitation, exploration plans, results of operations,
expected performance at the Recuperada Silver Project (the “Project”), the ability of the new zones at the Project to feed
production at the Company’s Nueva Recuperada Plant in the near term, the Company’s belief that the Tangana system will