Silver X Reports Q3 2024 Financial Results
SILVER X MINING CORP.
Suite 1012 – 1030 West Georgia Street | Vancouver, BC | V6E 2Y3
Silver X Reports Q3 2024 Financial Results
(All dollar amounts expressed in US dollars unless otherwise noted)
Vancouver, BC, November 28, 2024 – Silver X Mining Corp. (TSX-V: AGX) (OTCQB: AGXPF) (F: AGX) ("Silver X"
or the "Company") is pleased to report its financial results for the three and nine months ended September 30,
2024 for the Nueva Recuperada Project (the “Project”) in Central Peru.
Q3 2024 Financial Highlights
• Revenues of $5.0 million (3Q24) vs. $2.1 million (3Q23), an increase of $2.9 million.
• Significant EBITDA improvement: Adjusted EBITDA of negative $0.1M (3Q24) vs. Adjusted EBITDA of
negative $1.0M (3Q23).
• Cash costs of $21.5 per AgEq ounce produced and AISC of $26.2 per AgEq ounce produced, reflective of the
sustaining capital expenditure invested in the development of the Tangana mining unit ($1.0 million adding
$3.9 per AgEq ounce produced to the AISC). (1)(2)
• Cash cost per tonne was $100 in 3Q24 compared to $148 per tonne in 3Q23, a reduction of 32.3%.
Jose Garcia, Silver X Mining’s CEO, commented: "I am pleased to see our mine developing in the right way,
accessing new ore-shoots, expanding the orebody both horizontally and at depth, and opening up the terrific
potential of our Tangana veins. The team is making significant improvements at the operation and despite
some of our challenges, we manage to compete with much larger operations. This is especially notable when
comparing year -to-date results with the same period last year. We are convinced our per formance will
improve substantially in 2025.”
Notes:
1. Cash costs per Silver Equivalent ounce ( AgEq) ounce produced and All-In-Sustaining Cost ( 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 was 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.
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.sedarplus.ca.
Note:
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.
Three months ended September 30, 2024 vs. 2023
For the three months ended September 30, 2024, the Company recorded:
• Net loss before tax of $1.9M, compared to a net loss before tax of $ 2.3M in the three months ended
September 30, 2023.
• EBITDA loss of $0.5M, compared to an EBITDA loss of $ 1.7M in the three months ended September 30,
2023.
• Adjusted EBITDA loss of $0.09M, compared to an Adjusted EBITDA loss of $1.0M in the three months ended
September 30, 2023.
The decrease in losses in the current period was primarily due to increased operating revenues from the sale of
mineral production of $ 5.0M compared to $ 2.1M in the prior period (increase of $ 2.9M), decrease in foreign
exchange losses of $0.2M compared to $0.8M in the same period last year (decrease of $0.5M), and partially offset
with the increase in of cost of sales of $5.7M compared to $2.9M in the prior period (increase of $2.8M).
Nine months ended September 30, 2024 vs. 2023
For the nine months ended September 30, 2024, the Company recorded:
• Net loss before tax of $ 2.5M, compared to a net loss before tax of $ 4.2M in the nine months ended
September 30, 2023, a $1.7M improvement.
• EBITDA income of $1.7M, compared to an EBITDA loss of $2.9M in the nine months ended September 30,
2023, a $4.6M improvement.
• Adjusted EBITDA income of $ 1.1M, compared to an Adjusted EBITDA loss of $ 2.5M in the nine months
ended September 30, 2023, a $3.6M improvement.
September 30, 2024 September 30, 2023 Change
% September 30, 2024 September 30, 2023 Change
%
Operating Revenues $ 4,988,118 $ 2,089,879 139% $ 16,009,640 $ 11,319,147 41%
Mining and processing (4,429,122) (2,422,916) (12,480,709) (11,429,567)
Amortization (1,291,707) (478,461) -170% (3,708,792) (1,505,947) -146%
Operating loss $ (732,711) $ (811,498) 10% $ (179,861) $ (1,616,367) 89%
Exploration Expenditures (28,226) (82,625) 66% (92,194) (234,289) 61%
General and Administrative expenses (860,352) (562,434) -53% (2,669,177) (2,346,398) -14%
Other items (313,474) (890,729) 65% 467,025 (654,974) 171%
Net loss before tax $ (1,934,763) $ (2,347,286) 18% $ (2,474,207) $ (4,852,028) 49%
Deferred income tax recovery (expense) (217,032) 230,000 -194% (1,081,207) 620,000 -274%
Net loss $ (2,151,795) $ (2,117,286) -2% $ (3,555,414) $ (4,232,028) 16%
Gain (Loss) on translation of foreign
operations (1,174,439) 617,667 -290% (771,658) 276,514 -379%
Total comprehensive loss $ (3,326,234) $ (1,499,619) -122% $ (4,327,072) $ (3,955,514) -9%
Shareholders
Loss per share, basic and diluted $ (0.01) $ (0.01) 16% $ (0.02) $ (0.03) 28%
EBITDA $ (497,964) $ (1,745,037) 71% $ 1,743,179 $ (2,853,457) 161%
Adjusted EBITDA (88,358) (970,036) 91% 1,120,940 (2,538,510) 144%
Adjusted EBITDA per share (0.000) (0.006) 92% 0.006 (0.016) 138%
For the three months ended For the six months ended
The increase in income in the current period was primarily due to increased operating revenues from the sale of
mineral production of $1 6.0M compared to $ 11.3M in the prior period (increase of $ 4.7M), and gain on debt
settlement of $1.1M compared to $Nil in the prior period, net with increase of cost of sales of $1 6.2M compared
to $12.9M in the prior period (increase of $3.3M).
The following table reconciles the Net Loss to the EBITDA and Adjusted EBITDA:
Financial Position
The available cash during the period decreased by $0 .2 million due to the outflow from the continuing
development of the Tangana mine unit partially offset by the completed non-brokered private placement in April
2024.
For the three
months ended
September 30, 2024
For the three
months ended
September 30, 2023
For the nine
months ended
September 30, 2024
For the nine
months ended
September 30, 2023
Net Loss $ (2,151,795) $ (2,117,286) $ (3,555,414) $ (4,232,028)
Deferred income tax expense (recovery) 217,032 (230,000) 1,081,207 (620,000)
Finance cost 145,092 123,788 508,594 492,624
Amortization 1,291,707 478,461 3,708,792 1,505,947
EBITDA $ (497,964) $ (1,745,037) $ 1,743,179 $ (2,853,457)
Foreign exchange gain 168,382 766,941 156,641 162,350
Gain on setllement of debt - - (1,132,260) -
Share-based payments 241,224 8,060 353,380 152,597
Adjusted EBITDA $ (88,358) $ (970,036) $ 1,120,940 $ (2,538,510)
Adjusted EBITDA per share $ (0.000) $ (0.006) $ 0.006 $ (0.016)
Q3 2024 Q4 2023 Change %
Cash $ 190,484 484,902 -61%
Current assets 7,673,961 6,047,744 27%
Total assets 53,966,477 51,861,083 4%
Current liabilities 21,977,250 21,187,232 4%
Non-current liabilities 12,657,571 11,967,137 6%
Total liabilities 34,634,821 33,154,369 4%
Total shareholders' equity 19,331,656 18,706,714 3%
Operational Results
Notes:
1. Average Realized Price, production cost per tonne processed, AgEq sold, 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 processed and produced were calculated based on all metals processed and 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 meta l
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.
Unit September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Ore mined tonnes 42,849 14,065 121,466 79,900
Ore processed tonnes 46,624 15,716 129,128 91,379
Average head grades
Silver g/t 69.74 65.76 73.41 61.74
Gold g/t 0.52 0.97 0.67 1.06
Zinc % 1.89 1.12 2.02 1.63
Lead % 1.61 1.26 1.77 1.57
Average AgEq head grades g/t 220 239 255 238.87
Average AgEq head grades oz/t 7.09 7.68 8.19 8.59
Average recoveries
Silver % 89% 87% 89% 88%
Gold % 49% 69% 59% 67%
Zinc % 82% 79% 83% 82%
Lead % 87% 86% 88% 88%
Metal processed -
Silver oz 104,539 33,072 304,774 166,507
Gold oz 774 489 2,774 3,017
Zinc lbs 1,946,273 411,622 5,756,321 3,214,898
Lead lbs 1,657,416 555,859 5,035,112 3,115,857
AgEq processed 1 2
oz 330,462 126,121 1,056,972 775,900
Metal produced -
Silver oz 92,924 29,075 262,481 153,452
Gold oz 378 341 1,682 2,125
Zinc lbs 1,601,126 303,732 4,814,179 2,631,304
Lead lbs 1,439,842 376,773 4,430,716 2,692,216
AgEq produced 1 2
oz 257,635 95,373 839,710 626,473
Metal sold
Silver oz 87,362 36,338 264,576 141,941
Gold oz 394 394 1,562 2,076
Zinc lbs 1,543,993 316,899 4,621,761 2,442,375
Lead lbs 1,380,907 426,521 4,306,870 2,490,167
AgEq sold 1 2
oz 230,424 101,701 756,720 591,191
Average realized price 2 3
Silver $/oz 29.29 23.47 26.35 23.32
Gold $/oz 2,462 1,925 2,221 1,927
Zinc $/lbs 1.25 1.12 1.22 1.27
Lead $/lbs 0.93 0.99 0.95 0.97
Cash cost per AgEq ounce produced 2
$/oz 21.5 27.1 18.4 20.7
AISC per AgEq ounce produced 2
$/oz 26.2 37.9 23.0 28.2
For the three months ended For the nine months ended
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 e valuate 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. Th ese 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 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 expenditures 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:
The following table shows the calculation of the cash costs and AISC per AgEq ounce produced:
To improve the accuracy and presentation of AISC calculations, Silver X refined the composition of General &
Administrative Expense in sustaining cost, excluding discretionary costs for business development, investor
relations and share-based compensation. For comparative purposes the prior period were also recalculated based
on the revised methodology, resulting in AISC of $26.2 for the three months period ending September 30, 2024,
compared to $37.9 for the same period in 2023 (30.7% decrease) and $23.0 for the nine months period ending
September 30, 2024, compared to $28.2 for the same period in 2023 (18.4% decrease).
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
For the three
months ended
September 30, 2024
For the three
months ended
September 30, 2023
For the nine
months ended
September 30, 2024
For the nine
months ended
September 30, 2023
Tonnage 46,624 15,716 129,128 91,379
Gross Sales 5,851,009 2,353,280 18,637,311 13,137,435
Net Sales 4,988,118 2,089,879 16,009,640 11,319,147
Cost of sales $ 5,720,829 $ 2,901,377 $ 16,189,501 12,935,514
Changes in concentrate inventory 239,059 (99,166) 346,176 (258,328)
Royalties (127,574) (71,220) (421,514) (346,773)
Transportation and other selling costs (114,499) (30,918) (326,281) (191,522)
Amortization (1,291,707) (478,461) (3,708,792) (1,505,947)
Total cash production costs $ 4,426,108 $ 2,221,613 $ 12,079,089 $ 10,632,945
Royalties 127,574 71,220 421,514 346,773
Transportation and other selling costs 114,499 30,918 326,281 191,522
Treatment and refining charges and penalties 862,891 263,401 2,627,671 1,818,288
Total cash costs (A) $ 5,531,071 $ 2,587,151 $ 15,454,555 $ 12,989,527
General and administrative (1) 195,859 396,368 1,037,565 1,270,883
Operating lease payments 19,501 80,871 221,185 237,613
Accretion and Amortization of Reclamation
Cost 20,601 20,601 61,803 61,803
Sustaining Capital Expenditure 995,401 528,812 2,565,021 3,128,024
Sustaining costs (B) $ 1,231,361 $ 1,026,652 $ 3,885,574 $ 4,698,323
All-In-Sustaining costs (A+B) $ 6,762,433 $ 3,613,803 $ 19,340,130 $ 17,687,850
For the three months
ended
September 30, 2024
For the three months
ended
September 30, 2023
For the nine
months ended
September 30, 2024
For the nine
months ended
September 30, 2023
AgEq ounces produced 257,635 95,373 839,710 626,473
Totals:
Cash costs $ 5,531,071 $ 2,587,151 $ 15,454,555 $ 12,989,527
Sustaining costs 1,231,361 1,026,652 3,885,574 4,698,323
All-In-Sustaining costs$ 6,762,433 $ 3,613,803 $ 19,340,130 $ 17,687,850
Per AgEq ounces produced:
Cash costs $ 21.5 $ 27.1 $ 18.4 $ 20.7
Sustaining costs 4.8 10.8 4.6 7.5
All-In-Sustaining costs$ 26.2 $ 37.9 $ 23.0 $ 28.2
information to evaluate the Company’s performance relative to peers who present this measure on a similar
basis.
During the period, cash cost per tonne decreased with the increase of the level of tonnage of ore processed,
amounting to 46,624 tonnes for 3Q24 compared to 15,716 tonnes for 3Q23. Overall operating efficiencies
improved resulting in a lower production cash cost per tonne of $ 100 in 3Q24 compared to $148 per tonne in
3Q23, a reduction of 32.3%.
The capital expenditure deployed in the development of the Tangana mining unit during the period was the main
cost contributor to AISC. Investment in sustainable CAPEX will enable the Company to access new production
fronts and transition to higher head-grade areas.
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
September 30, 2024
For the three months
ended
September 30, 2023
For the nine
months ended
September 30, 2024
For the nine
months ended
September 30, 2023
Cost of Sales $ 5,720,829 $ 2,901,377 $ 16,189,501 $ 12,935,514
Adjustments - increase/(decrease):
Amortization (1,291,707) (478,461) (3,708,792) (1,505,947)
Changes in inventories 239,058.59 (99,166) 346,176 (258,328)
Production cash costs (excluding inventory
adjustments) $ 4,668,181 $ 2,323,750 $ 12,826,885 $ 11,171,239
Tonnes processed 46,624 15,716 129,128 91,379
Production cash cost per tonne processed $/t 100 $/t 148 $/t 99 $/t 122
For the three months
ended
September 30, 2024
For the three months
ended
September 30, 2023
For the nine
months ended
September 30, 2024
For the nine
months ended
September 30, 2023
Silver
Gross revenue $ 2,558,836 852,857 6,971,588 3,310,064
Metal sold oz 87,362 36,338 264,576 141,941
Average realized price $/oz 29.3 23.5 26.4 23.3
Gold
Gross revenue $ 968,828 758,905 3,469,017 3,999,705
Metal sold oz 394 394 1,562 2,076
Average realized price $/oz 2,462 1,925 2,221 1,927
Zinc
Gross revenue $ 1,937,265 354,927 5,632,882 3,101,816
Metal sold lbs 1,543,993 316,899 4,621,761 2,442,375
Average realized price $/lbs 1.25 1.12 1.22 1.27
Lead
Gross revenue $ 1,282,992 422,255 4,096,794 2,415,462
Metal sold lbs 1,380,907 426,521 4,306,870 2,490,167
Average realized price $/lbs 0.93 0.99 0.95 0.97
Non-IFRS Measures
Cash costs ($ per Oz sold) and AISC ($ per Oz sold) are non-IFRS financial measures and non-IFRS ratios in this press
release. These measures 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 the Company's most recently filed
Management's Discussion and Analysis which is available on SEDAR+ at www.sedarplus.ca for full details on these
measures, which is incorporated by reference into this press release.
Please see “Cautionary Note regarding Production without Mineral Reserves” at the end of this news release.
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. Heyl is a consultant for Silver X.
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 management's knowledge of the property and the existing
estimate of 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 mineral 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 detailed economic and technical analysis in accordance with NI 43-101.
About Silver X
Silver X is a rapidly expanding silver producer and developer. The Company owns the 20,472-hectare Nueva
Recuperada Silver Project in Central Peru and produces silver, gold, lead and zinc from its Tangana Mining Unit.
We are building a premier silver company that aims to deliver outstanding value to all stakeholders,
consolidating and developing undervalued assets, adding resources, and increasing production while aspiring to
sustain the communities that support us and stewarding the environment. Current production, paired with
immediate development and brownfield expansion opportunities, presents investors with the opportunity to
invest in the early stages of a silver producer with strong growth prospects. For more information visit our
website at www.silverxmining.com.
ON BEHALF OF THE BOARD
José M. Garcia, CEO and Director
For further information, please contact:
Susan Xu
Investor Relations
+1 778 323 0959
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.