Silver X Reports Second Quarter 2023 Financial Results and provides Management Update
SILVER X MINING CORP.
Suite 1012 – 1030 West Georgia Street | Vancouver, BC | V6E 2Y3
Silver X Reports Second Quarter 2023 Financial Results and provides Management
Update
(All dollar amounts expressed in US dollars unless otherwise noted)
Vancouver, BC, August 28, 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 June 30, 2023 (“Q2
2023”) for the Nueva Recuperada Project (the “Project”) in central Peru and provides Management update.
Second Quarter 2023 Highlights
• Generated revenues of $4.7 million, representing a 2% increase when compared to the quarter ended
March 31, 2023 (“Q1 2023”) and 46% increase when compared to the quarter ended June 30, 2022 (“Q2
2022”).
• Operating loss of $0.4 million, partially affected by the changes implemented in the mine planning, lower
Zinc prices and unexpected drop in grades in some mineralized areas, compared with an operating gain
of $0.3 million in Q2 2022.
• Net loss before tax of $1.4 million compared with a net loss of $1.3 million in Q2 2022.
• Cash costs of $ 20.80 per Silver Equivalent (“AgEq”) ounce produced (1)(2) and All -In-Sustaining Cost
(“AISC”) (1)(2) of $29.76 per AgEq ounce produced, reflective of the sustaining capital expenditure invested
in the development of the Tangana mining unit ($1. 3 million adding $5.4 per AgEq ounce produced to
the AISC). The development expenditure translated into 2,133 meters.
Commenting on the second quarter results, Silver X’s CEO, José M . García stated, “During the quarter, we
encountered an unforeseen decline in grades within certain mineralized zones, leading to reduced metal
output and adversely affecting our bottom line. The company continues actively working with its technical
team, consultants, and contractors to implement the previously announced operational reset with the goal
of restarting the operations under an improved operating framework. I am very confident that these changes
will help transform Nueva Recuperada Project into one of the most attractive silver districts in the region”.
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 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.
Events Subsequent to the End of the Quarter
• On July 7, 2023, the Company announced the closing of the third and final tranche of its non-brokered
private placement offering with the placement of 1,384,000 units (the “Units”) at a price of C$0.30 per
Unit for gross proceeds of $ 313,240 (C$ 415,200).
• On July 26, 2023, the Company announced the pause of its operations for an estimated period between
30 and 45 days to implement a strategic operational reset.
Summary of Selected Financial Results
The information provided below are excerpts from the Company’s unaudited in terim 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.
For the three months ended For the six months ended
June 30,
2023 June 30,
2022
Change
% June 30,
2023 June 30,
2022
Change
%
Operating Revenues $ 4,653,328 $ 3,184,470 46% $ 9,229,268 $ 4,492,623 105%
Cost of Sales (5,047,605) (2,836,420) 78% (10,034,137) (6,665,629) 51%
Operating loss $ (394,277) $ 348,050 -213% $ (804,869) $ (2,173,006) -63%
Exploration Expenditures (136,241) (140,516) -3% (151,664) (179,678) -16%
General and Administrative expenses (1,024,473) (1,133,591) -10% (1,783,964) (1,797,914) -1%
Other items 127,378 (330,533) -139% 235,755 (298,600) -179%
Net loss before tax $ (1,427,613) $ (1,256,590) 14% $ (2,504,742) $ (4,449,198) -44%
Deferred income tax recovery (expense) 183,000 131,000 40% 390,000 1,920,000 -80%
Net loss $ (1,244,613) $ (1,125,590) 11% $ (2,114,742) $ (2,529,198) -16%
Gain (Loss) on translation of foreign
operations (257,952) 182,095 -242% (341,153) 532,680 -164%
Total comprehensive loss $ (1,502,565) $ (943,495) 59% $ (2,455,895) $ (1,996,518) 23%
Shareholders
Loss per share, basic and diluted $ (0.01) $ (0.01) -12% $ (0.01) $ (0.02) -34%
EBITDA (1) $ (574,519) $ (751,841) -24% $ (1,102,997) $ (3,836,222) -71%
Adjusted EBITDA (1) (919,314) (656,427) 40% (1,563,051) (3,710,421) -58%
Adjusted EBITDA per share (1) (0.006) (0.005) 12% (0.010) (0.030) -67%
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.
For the three months ended June 30, 2023, the Company recorded:
• Net loss before tax of $1.4 million, compared to a net loss before tax of $1.3 million in Q2 2022.
• EBITDA loss of $0.6 million, compared to an EBITDA loss of $0.8 million in Q2 2022.
• Adjusted EBITDA loss of $0.9 million, compared to an Adjusted EBITDA loss of $0.7 million in Q2 2022.
The increase in loss in the current period was primarily due to increased operating revenues from the sale of
mineral production of $4.7 million compared to $3.2 million in the prior year (increase of $1.5M), offset by cost
of sales of $5.0 million compared to $2.8 million in the prior year (increase of $2.2 million reflecting the increased
mill throughput during the quarter), resulting in a operating loss of $0.4 million compared to a operating gain of
$0.3 million in the prior period. The Company also had a f oreign exchange gain of $0.4 million compared to a
foreign exchange loss of $0.039 million in the comparative period. Loss or gain in translation of foreign operations
fluctuates depending on the strength of the Peruvian sol and Canadian dollar against the US dollar.
Financial Position
Q2 2023 Q4 2022 Change %
Cash $ 1,349,456 1,023,979 32%
Current assets 7,519,168 6,418,921 17%
Total assets 69,661,406 66,274,464 5%
Current liabilities 20,952,371 17,031,916 23%
Non-current liabilities 10,920,024 10,875,237 0%
Total liabilities 31,872,395 27,907,153 14%
Total shareholders' equity 37,789,011 38,367,311 -2%
The available cash during the period increased by $0.3 million reflecting the net inflow from its non brokered
private placement that further contributed with the continuing development of the Tangana mine unit, which
saw higher development rates during the period. The Company continues to actively manage th e existing
payables either through the cash flow generated from the operations and/or through other available sources of
financing to further improve its working capital.
Operational Results
For the three months ended For the six months ended
Unit June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Ore mined tonnes 32,079 20,289 65,835 28,125
Ore processed tonnes 35,392 20,877 75,663 32,280
Average head grades
Silver g/t 63.14 76.96 57.98 75.53
Gold g/t 1.11 1.28 1.05 1.04
Zinc % 1.61 1.38 1.70 1.41
Lead % 1.64 1.60 1.58 1.52
Average AgEq head grades g/t 269 310 273 283
Average AgEq head grades oz/t 8.64 9.95 8.78 9.11
Average recoveries
Silver % 89% 87% 88% 87%
Gold % 71% 67% 67% 63%
Zinc % 82% 75% 82% 78%
Lead % 88% 87% 88% 88%
Metal processed
Silver oz 69,937 53,003 139,156 83,413
Gold oz 1,247 861 2,533 1,099
Zinc lbs 1,184,379 636,050 2,762,353 1,015,537
Lead lbs 1,222,422 737,491 2,573,982 1,088,862
AgEq processed (2) oz 296,493 219,488 655,220 317,816
Metal produced
Silver oz 63,833 46,527 124,376 72,770
Gold oz 922 592 1,784 592
Zinc lbs 1,027,152 483,194 2,327,572 809,259
Lead lbs 1,136,417 646,594 2,315,443 967,140
AgEq produced (2) oz 248,412 156,501 531,099 220,000
For the three months ended For the six months ended
Unit June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Metal sold
Silver oz 66,796 46,158 123,892 66,968
Gold oz 969 837 1,877 992
Zinc lbs 1,189,064 480,478 2,361,779 820,282
Lead lbs 1,241,620 637,480 2,348,156 972,193
AgEq sold (1) oz 252,714 149,727 507,455 209,512
Average realized price (3)
Silver $/oz 24.09 20.70 23.40 21.87
Gold $/oz 1,977 1,803 1,924 1,823
Zinc $/lbs 1.14 1.57 1.29 1.68
Lead $/lbs 0.96 0.93 0.96 0.98
Cash cost per AgEq ounce
produced (1) $/oz 20.8 19.3 19.6 31.9
AISC per AgEq ounce produced (1) $/oz 29.8 30.0 28.1 45.7
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 calculat ed 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 calculati ons 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.
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 im proved 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 accor dance 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 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 p roduction. 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 For the six months ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Cost of sales $ 5,047,605 $ 2,836,420 $ 10,034,137 6,665,629
Changes in concentrate inventory (26,235) (92,381) (159,162) (121,659)
Royalties (138,195) (131,444) (275,553) (179,641)
Transportation and other selling costs (80,994) (44,024) (160,604) (75,912)
Amortization (599,942) (212,315) (1,027,486) (257,631)
Total cash production costs $ 4,202,238 $ 2,356,257 $ 8,411,332 $ 6,030,787
Royalties 138,195 131,444 275,553 179,641
Transportation and other selling costs 80,994 44,024 160,604 75,912
Treatment and refining charges and penalties 745,366 487,910 1,554,887 741,673
Total cash costs (A) $ 5,166,794 $ 3,019,635 $ 10,402,376 $ 7,028,011
General and administrative (incl. share
based compensation) (1)
704,157 1,133,591 1,463,648 1,797,914
Operating lease payments 156,742 77,871 156,742 155,742
Accretion and Amortization of
Reclamation Cost
20,601 14,125 41,202 28,226
Sustaining Capital Expenditure:
Development 1,363,678 268,777 2,842,004 541,616
Purchase of PP&E (19,362) 185,883 4,865 505,563
Sustaining costs (B) $ 2,225,816 $ 1,680,247 $ 4,508,461 $ 3,029,061
All-In-Sustaining costs (A+B) $ 7,392,610 $ 4,699,881 $ 14,910,837 $ 10,057,072
Note:
1. Q2 2023 excludes $ 320K of evaluation costs related to the Revenues-Virginius Mine M&A project in Ouray County, Colorado.
During the period, the cash cost was commensurate with the increased level of tonnage of ore processed, which
amounted to 35,392 tonnes (20,877 tonnes in Q2 2022). This resulted in higher prod uction and sales volumes
during the quarter. The Company incurred $0.7 million in treatment and refining charges ($0.5 million in Q2
2022).
As part of the cost reduction efforts deployed across the Company, the general and administrative expenses saw
a reduction of $0.4 million during the quarter when compared to Q2 2022.
The capital expenditure deployed in the development of the Tangana mining unit during the quarter of $1.4
million was the main cost contributor to the AISC (vs. $0.5 million in Q2 2022). The 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 For the six months ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Net Loss $ (1,244,613) $ (1,125,590) $ (2,114,742) $ (2,529,198)
Deferred income tax recovery (183,000) (131,000) (390,000) (1,920,000)
Finance cost 253,152 292,434 374,259 355,345
Amortization 599,942 212,315 1,027,486 257,631
EBITDA $ (574,519) $ (751,841) $ (1,102,997) $ (3,836,222)
Foreign exchange (gain) loss (375,107) 39,059 (604,591) (52,627)
Share-based payments 30,312 56,355 144,537 178,428
Adjusted EBITDA $ (919,314) $ (656,427) $ (1,563,051) $ (3,710,421)
Adjusted EBITDA per share $ (0.006) $ (0.005) $ (0.010) $ (0.030)
The following table shows the calculation of the cash costs and AISC per AgEq ounce produced:
For the three months ended For the six months ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
AgEq ounces produced 248,412 156,501 531,099 220,000
Totals:
Cash costs $ 5,166,794 $ 3,019,635 $ 10,402,376 $ 7,028,011
Sustaining costs 2,225,816 1,680,247 4,508,461 3,029,061
All-In-Sustaining costs $ 7,392,610 $ 4,699,881 $ 14,910,837 $ 10,057,072
Per AgEq ounces produced:
Cash costs $ 20.8 $ 19.3 $ 19.6 $ 31.9
Sustaining costs 9.0 10.7 8.5 13.8
All-In-Sustaining costs $ 29.8 $ 30.0 $ 28.1 $ 45.7
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 performance relative to peers who present this measure on a similar
basis.
For the three months ended For the six months ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Cost of Sales $ 5,047,605 $ 2,836,420 $ 10,034,137 $ 6,665,629
Adjustments - increase/(decrease):
Amortization (599,942) (212,315) (1,027,486) (257,631)
Changes in inventories (26,235) (92,381) (159,162) (121,659)
Production cash costs (excluding
inventory adjustments) $ 4,421,428 $ 2,531,724 $ 8,847,489 $ 6,286,339
Tonnes processed 35,392 20,877 75,663 32,280
Production cash cost per tonne processed $/t 125 $/t 121 $/t 117 $/t 195
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 For the six months ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Silver
Gross revenue $ 1,608,827 955,496 2,898,855 1,464,607
Metal sold oz 66,796 46,158 123,892 66,968
Average realized price $/oz 24.1 20.7 23.4 21.9
Gold
Gross revenue $ 1,916,602 1,508,515 3,631,023 1,809,117
Metal sold oz 969 837 1,877 992
Average realized price $/oz 1,977 1,803 1,934 1,823
Zinc
Gross revenue $ 1,351,462 756,474 3,012,214 1,377,080
Metal sold lbs 1,189,064 480,478 2,361,779 820,282
Average realized price $/lbs 1.14 1.57 1.28 1.68
Lead
Gross revenue $ 1,189,086 593,981 2,264,784 951,687
Metal sold lbs 1,241,620 637,480 2,348,156 972,193
Average realized price $/lbs 0.96 0.93 0.96 0.98
Management Update
The Company announces that its Chief Financial Officer (CFO), Mr. Ronald Marino, will be stepping down from
his role effective September 23, 2023 to pursue new personal endeavors. Mr. Marino will continue to support
the Company as CFO over the next month to ensure a smooth transition. The Company is in the process of finding
a suitable replacement.
Mr. Garcia stated, “I sincerely thank Ronald for his significant contributions as CFO during a foundational period
for the Company . His many achievements includ e constructing the early version of the Company financial
systems and processes and enabling the financings post Company’s merge r in 2021. We wish him well in his
future endeavors”.
Mr. Garcia continued. “The Company has initiated a search for a new Chief Financial Officer and will provide
updates on the progress of the search as appropriate”.
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 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 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 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 Standa rds ("IFRS") and all dollar amounts are expressed in US dollars
unless otherwise stated.
Qualified Person
Mr. Enrique Garay, MSc. P. Geo (AIG Member), who is a qualified person under NI 43 -101, has reviewed and
approved the technical content of this news release for Silver X. Mr. Enrique Garay is the Company’s Chief
Operating Officer.
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:
Sebastian Wahl