Silver X Reports Strong Q2 2024 Financial Results
SILVER X MINING CORP.
Suite 1012 – 1030 West Georgia Street | Vancouver, BC | V6E 2Y3
Silver X Reports Strong Q2 2024 Financial Results
(All dollar amounts expressed in US dollars unless otherwise noted)
Vancouver, BC, August 29, 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 six months ended June 30, 2024 for the
Nueva Recuperada Project (the “Project”) in Central Peru.
Q2 2024 Financial Highlights
• Generated revenues of $ 6.2 million, representing a 31% increase when compared to the quarter ended
March 31, 2024 (“Q1 2024”) and 34% increase when compared to the quarter ended June 30, 202 3 (“Q2
2023”).
• Operating income of $0.5 million compared with an operating loss of $0.4 million in Q2 2023.
• Positive EBITDA of $1.9M and Positive Adjusted EBITDA of $0.8M compared to Negative EBITDA of $0.6M
and Negative Adjusted EBITDA of $0.9M in Q2 2023.
• Cash costs of $18.8 per Silver Equivalent (“AgEq”) ounce produced (1)(2) and All-In-Sustaining Cost (“AISC”)
(1)(2) of $2 5.9 per AgEq ounce produced, reflective of the sustaining capital expenditure invested in the
development of the Tangana mining unit ($0.8 million adding $2.8 per AgEq ounce produced to the AISC).
Jose Garcia, Silver X Mining’s CEO , commented: "Nueva Recuperada is producing steadily with improved
operating and financial results. Our dedicated team is concentrating its effort s on continuing to increase
production and improve margins, as is made clear with the results from the second quarter and, indeed, the
entire first half of 2024. The improvement is even more notorious compared to a year ago.
Our team’s focus is on cost reduction now : We are reviewing head grade distribution, mine design and the
possibility to adapt different mining methods to the various mining widths; all with the objective of reducing
our cost substantially and to improve our margins. We recently released our Q 2 2024 production results,
with 362,714 oz AgEq processed, in line with Q1 2024 production, demonstrating stability and reliability of
our operation. Nueva Recuperada remains on track to produce more than 700 tonnes per day with good
grades. We are confident that we will continue along this trajectory for the remainder of 2024, driving growth
and shareholder value creation.”
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.
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 June 30, 2024 vs. 2023
For the three months ended June 30, 2024, the Company recorded:
• Net income before tax of $0.4M, compared to a net loss before tax of $ 1.4M in the three months ended
June 30, 2023.
• EBITDA income of $1.9M, compared to an EBITDA loss of $0.6M in the three months ended June 30, 2023.
• Adjusted EBITDA income of $ 0.8M, compared to an Adjusted EBITDA loss of $ 0.9M in the three months
ended June 30, 2023.
The increase in income in the current period was primarily due to increased operating revenues from the sale of
mineral production of $6.2M compared to $4.7M in the prior period (increase of $1.5M), and gain on debt settlement
of $1.1M compared to $Nil in the prior period, net with increase of cost of sales of $5.6M compared to $5.0M in the
prior period (increase of $0. 6M) and partially offset by decrease in foreign exchange gain of $0.1M compared to
$0.4M in the prior period (decrease of $0.3M).
Six months ended June 30, 2024 vs. 2023
June 30, 2024 June 30, 2023 Change
% June 30, 2024 June 30, 2023 Change
%
Operating Revenues $ 6,242,209 $ 4,653,328 34% $ 11,021,522 $ 9,229,268 19%
Mining and processing (4,432,763) (4,447,663) (8,051,587) (9,006,651)
Amortization (1,262,699) (599,942) -110% (2,417,085) (1,027,486) -135%
Operating income (loss) $ 546,747 $ (394,277) 239% $ 552,850 $ (804,869) 169%
Exploration Expenditures (8,215) (136,241) 94% (63,968) (151,664) 58%
General and Administrative expenses (1,064,576) (1,024,473) -4% (1,808,825) (1,783,964) -1%
Other items 906,890 127,378 612% 780,499 235,755 231%
Net income (loss) before tax $ 380,846 $ (1,427,613) 127% $ (539,444) $ (2,504,742) 78%
Deferred income tax recovery (expense) (545,175) 183,000 -398% (864,175) 390,000 -322%
Net loss $ (164,329) $ (1,244,613) 87% $ (1,403,619) $ (2,114,742) 34%
Gain (Loss) on translation of foreign
operations 294,614 (257,952) 214% 402,781 (341,153) 218%
Total comprehensive income (loss) $ 130,285 $ (1,502,565) 109% $ (1,000,838) $ (2,455,895) 59%
Shareholders
Loss per share, basic and diluted $ (0.00) $ (0.01) 89% $ (0.01) $ (0.01) 42%
EBITDA $ 1,943,099 $ (574,519) 438% $ 2,241,143 $ (1,102,997) 303%
Adjusted EBITDA 787,120 (919,314) 186% 1,209,298 (1,563,051) 177%
Adjusted EBITDA per share 0.004 (0.006) 169% 0.007 (0.010) 167%
For the three months ended For the six months ended
For the six months ended June 30, 2024, the Company recorded:
• Net loss before tax of $0.5M, compared to a net loss before tax of $2.5M in the six months ended June 30,
2023.
• EBITDA income of $2.2M, compared to an EBITDA loss of $1.1M in the six months ended June 30, 2023.
• Adjusted EBITDA income of $1.2M, compared to an Adjusted EBITDA loss of $1.6M in the six months ended
June 30, 2023.
The increase in income in the current period was primarily due to increased operating revenues from the sale of
mineral production of $11.0M compared to $9.2M in the prior period (increase of $1.8M), and gain on debt
settlement of $1.1M compared to $Nil in the prior period, net with increase of cost of sales of $10.5M compared
to $10.0M in the prior period (increase of $0.5M).
Financial Position
The available cash during the period increased by $0.6 million due to the private p lacement partially offset by
the outflow from the continuing development of the Tangana mine unit . On April 12, 2024, the Company
completed its non-brokered private placement of gross proceeds of C$5.0M. The Company continues to actively
manage the 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.
Q2 2024 Q4 2023 Change %
Cash $ 1,091,245 484,902 125%
Current assets 9,037,355 6,047,744 49%
Total assets 54,549,332 51,861,083 5%
Current liabilities 18,741,276 21,187,232 -12%
Non-current liabilities 13,389,588 11,967,137 12%
Total liabilities 32,130,864 33,154,369 -3%
Total shareholders' equity 22,418,468 18,706,714 20%
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 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.
Unit June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Ore mined tonnes 42,866 32,079 78,617 65,835
Ore processed tonnes 44,601 35,453 82,505 75,663
Average head grades
Silver g/t 72.64 62.99 75.49 57.97
Gold g/t 0.78 1.11 0.75 1.05
Zinc % 1.95 1.62 2.09 1.70
Lead % 1.67 1.65 1.86 1.58
Average AgEq head grades g/t 253 269 274 273.40
Average AgEq head grades oz/t 8.13 8.65 8.81 8.79
Average recoveries
Silver % 89% 89% 89% 88%
Gold % 67% 71% 64% 67%
Zinc % 83% 82% 84% 82%
Lead % 88% 88% 88% 88%
Metal processed
Silver oz 104,163 71,843 200,235 141,058
Gold oz 1,120 1,264 2,001 2,550
Zinc lbs 1,914,063 1,257,336 3,810,048 2,835,352
Lead lbs 1,640,834 1,282,739 3,377,696 2,634,332
AgEq processed 1 2
oz 362,714 305,961 726,509 664,427
Metal produced
Silver oz 83,502 63,834 169,557 124,377
Gold oz 747 922 1,304 1,784
Zinc lbs 1,597,267 1,027,152 3,213,053 2,327,572
Lead lbs 1,438,086 1,136,417 2,990,875 2,315,443
AgEq produced 1 2
oz 284,027 248,412 582,075 530,901
Metal sold
Silver oz 90,386 66,796 177,214 123,892
Gold oz 639 969 1,168 1,877
Zinc lbs 1,571,176 1,189,064 3,077,768 2,361,779
Lead lbs 1,437,006 1,241,620 2,925,962 2,348,156
AgEq sold 1 2
oz 261,524 252,714 526,296 507,455
Average realized price 2 3
Silver $/oz 28.92 24.08 26.35 23.29
Gold $/oz 2,337 1,971 2,221 1,926
Zinc $/lbs 1.29 1.15 1.20 1.29
Lead $/lbs 0.98 0.96 0.96 0.96
Cash cost per AgEq ounce produced 2
$/oz 18.8 20.8 17.0 19.6
AISC per AgEq ounce produced 2
$/oz 25.9 28.2 23.0 26.7
For the three months ended For the six 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 reconciles the Net Loss to the EBITDA and Adjusted EBITDA:
For the three months
ended
June 30, 2024
For the three months
ended
June 30, 2023
For the six
months ended
June 30, 2024
For the six
months ended
June 30, 2023
Cost of sales $ 5,695,462 $ 5,047,605 $ 10,468,672 10,034,137
Changes in concentrate inventory (11,443) (26,235) 107,117 (159,162)
Royalties (162,449) (138,195) (293,941) (275,553)
Transportation and other selling costs (141,438) (80,994) (211,782) (160,604)
Amortization (1,262,699) (599,942) (2,417,085) (1,027,486)
Total cash production costs $ 4,117,433 $ 4,202,239 $ 7,652,981 $ 8,411,332
Royalties 162,449 138,195 293,941 275,553
Transportation and other selling costs 141,438 80,994 211,782 160,604
Treatment and refining charges and penalties 923,793 745,366 1,764,780 1,554,887
Total cash costs (A) $ 5,345,113 $ 5,166,794 $ 9,923,484 $ 10,402,376
General and administrative (incl. share based
compensation) (1) 1,064,576 704,157 1,808,824 1,463,648
Operating lease payments 120,814 156,742 201,685 156,742
Accretion and Amortization of Reclamation
Cost 20,601 20,601 41,202 41,202
Sustaining Capital Expenditure 791,122 956,524 1,404,228 2,137,037
Sustaining costs (B) $ 1,997,113 $ 1,838,024 $ 3,455,939 $ 3,798,629
All-In-Sustaining costs (A+B) $ 7,342,226 $ 7,004,818 $ 13,379,423 $ 14,201,005
(1) Excludes $ 320K of evaluation costs related to the Revenues-Virginius Mine M&A project in Ouray County, Colorado in Q2 2023
For the three
months ended
June 30, 2024
For the three
months ended
June 30, 2023
For the six
months ended
June 30, 2024
For the six
months ended
June 30, 2023
Net Loss $ (164,329) (1,244,613) (1,403,618) (2,114,742)
Deferred income tax expense (recovery) 545,175 (183,000) 864,175 (390,000)
Finance cost 299,554 253,152 363,502 374,259
Amortization 1,262,699 599,942 2,417,085 1,027,486
EBITDA $ 1,943,099 $ (574,519) $ 2,241,144 $ (1,102,997)
Foreign exchange gain (74,184) (375,107) (11,741) (604,591)
Gain on debt settlement (1,132,260) - (1,132,260) -
Share-based payments 50,465 30,312 112,156 144,537
Adjusted EBITDA $ 787,120 $ (919,314) $ 1,209,299 $ (1,563,051)
Adjusted EBITDA per share $ 0.004 $ (0.006) $ 0.007 $ (0.010)
The following table shows the calculation of the cash costs and AISC per AgEq ounce produced:
The Company has revised its methodology for calculating AISC related to sustaining capital expenditures. This
change involves eliminating growth-related costs to better reflect the expenses necessary for maintaining mining
operations. For comparative purposes the prior period were also recalculated based on the new methodology. The
revision results in AISC of $25.9 for the three months period ending June 30, 2024, compared to $28.2 for the same
period in 2023 (8.2% decrease) and $23.0 for the six months period ending June 30, 2024, compared to $26.7 for
the same period in 2023 (13.9% 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
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 44,601 tonnes for Q2 2024 compared to 35,453 tonnes for Q2 2023. Overall operating efficiencies
improved resulting in a lower production cash cost per tonne of $99 in Q2 2024 compared to $125 per tonne in
Q2 2023, a reduction of 20.5%.
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.
For the three
months ended
June 30, 2024
For the three
months ended
June 30, 2023
For the six
months ended
June 30, 2024
For the six
months ended
June 30, 2023
AgEq ounces produced 284,027 248,412 582,075 530,901
Totals:
Cash costs $ 5,345,113 $ 5,166,794 $ 9,923,484 $ 10,402,376
Sustaining costs 1,997,113 1,838,024 3,455,939 3,798,629
All-In-Sustaining costs$ 7,342,226 $ 7,004,818 $ 13,379,423 $ 14,201,005
Per AgEq ounces produced:
Cash costs $ 18.8 $ 20.8 $ 17.0 $ 19.6
Sustaining costs 7.0 7.4 5.9 7.2
All-In-Sustaining costs$ 25.9 $ 28.2 $ 23.0 $ 26.7
For the three
months ended
June 30, 2024
For the three
months ended
June 30, 2023
For the six
months ended
June 30, 2024
For the six
months ended
June 30, 2023
Cost of Sales $ 5,695,462 $ 5,047,605 $ 10,468,672 $ 10,034,137
Adjustments - increase/(decrease):
Amortization (1,262,699) (599,942) (2,417,085) (1,027,486)
Changes in inventories (11,443) (26,235) 107,117 (159,162)
Production cash costs (excluding inventory
adjustments) $ 4,421,320 $ 4,421,428 $ 8,158,704 $ 8,847,489
Tonnes processed 44,601 35,453 82,505 75,663
Production cash cost per tonne processed $/t 99 $/t 125 $/t 99 $/t 117
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:
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 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.sedarplus.ca. All financial information is prepared in accordance
with International Financial Reporting Standards ("IFRS") and all dollar amounts are expressed in US dollars
unless otherwise stated.
For the three
months ended
June 30, 2024
For the three
months ended
June 30, 2023
For the six
months ended
June 30, 2024
For the six
months ended
June 30, 2023
Silver
Gross revenue $ 2,613,977 1,608,448 4,669,596 2,885,445
Metal sold oz 90,386 66,796 177,214 123,892
Average realized price $/oz 28.9 24.1 26.4 23.3
Gold
Gross revenue $ 1,493,447 1,910,132 2,595,025 3,615,102
Metal sold oz 639 969 1,168 1,877
Average realized price $/oz 2,337 1,971 2,221 1,926
Zinc
Gross revenue $ 2,021,368 1,367,424 3,695,617 3,046,695
Metal sold lbs 1,571,176 1,189,064 3,077,768 2,361,779
Average realized price $/lbs 1.29 1.15 1.20 1.29
Lead
Gross revenue $ 1,413,040 1,191,955 2,813,802 2,254,230
Metal sold lbs 1,437,006 1,241,620 2,925,962 2,348,156
Average realized price $/lbs 0.98 0.96 0.96 0.96