Silver X Reports Strong Q4 2023 and Year End 2023 Financial Results
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SILVER X MINING CORP.
Suite 1012 – 1030 West Georgia Street | Vancouver, BC | V6E 2Y3
Silver X Reports Strong Q4 2023 and Year End 2023 Financial Results
(All dollar amounts expressed in US dollars unless otherwise noted)
Vancouver, British Columbia, May 1, 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 months and year ended
December 31, 2023, for the Nueva Recuperada Project (the “Project”) in Central Peru.
Q4 2023 Financial Highlights
• Q4 2023 Cash costs of $18.22 per Silver Equivalent (“AgEq”) ounce produced (1)(2) and All-In-Sustaining
Cost (“AISC”) (1)(2) of $24.96 per AgEq ounce produced, reflective of the sustaining capital expenditure
invested in the development of the Tangana mining unit ($2.0 million adding $6.74 per AgEq ounce
produced to the AISC).
• Generated revenues of $4.3 million in Q4 2023, representing a 12 per cent increase when compared to
$3.9 million of revenues in Q4 2022. This is reflective of the successful ramp up since the operational
pause and upgrades during the third quarter of 2023.
• Operating loss of $1.0 million in Q4 2023. Net loss before tax of $5.9 million in Q4 2023.
Jose Garcia, Silver X Mining’s CEO, said, "I am excited to share the progress we have made in the last
quarter of 2023 after a successful restart of our operations. As we look back to our Q4 2023 results, our
cost reduction and initiatives at Nueva Recuperada are yielding good results. Despite the challenges we
faced during 2023, our team has made. Tremendous effort in reconducting our operations successfully.”
“We recently released our Q1 2024 production, with 363,795 oz AgEq processed, which sets a strong
precedent for upcoming quarters. The momentum at Nueva Recuperada remains strong as we continue to
progress towards our ambitious goal of processing 700 tonnes per day of good grades. Looking ahead, we
anticipate that the positive trajectory observed in Q4 2023 and in Q1 2024 will persist throughout the
second quarter and the remainder of the 2024 year. These developments affirm our commitment to
driving growth and shareholder value creation,” he added.
FY 2023 Financial Highlights
• Generated revenues of $15.7 million for the year ended 2023 representing a 12 per cent increase when
compared to 13.9 million of revenues in FY 2022.
• Operating loss of $2.6 million in FY 2023. Net loss before tax of $10.8 million in FY 2023.
• FY 2023 Cash costs of $19.94 per Silver Equivalent (“AgEq”) ounce produced (1)(2) and All-In-Sustaining
Cost (“AISC”) (1)(2) of $28.48 per AgEq ounce produced, reflective of the sustaining capital expenditure
invested in the development of the Tangana mining unit ($7.8 million adding $8.53 per AgEq ounce
produced to the AISC).
Notes:
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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.sedar.com.
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 year ended December 31, 2023, the Company recorded:
• Net loss before tax of $10.8M, compared to a net loss before tax of $17.5M in the year ended December
31, 2022.
• EBITDA loss of $8.0M, compared to an EBITDA loss of $15.6M in the year ended December 31, 2022.
• Adjusted EBITDA loss of $3.6M, compared to an Adjusted EBITDA loss of $2.7M in the year ended
December 31, 2022.
The increase in loss in the current year was primarily due to increased operating revenues from the sale of
mineral production of $15.7M compared to $13.9M in the prior year (increase of $1.8M), offset by increase of
cost of sales of $18.3M compared to $14.2M in the prior year (increase of $4.1M). In the current period, the
Company also incurred an impairment of $4.4M on its Coriorcco & Las Antas property in Peru. In the comparative
period, the Company incurred an impairment of $9.1M of goodwill, an impairment of $1.1M on its Julian Property
in Ecuador and a loss on conversion of convertible debenture of $2.1M.
For the three months ended December 31, 2023, the Company recorded:
• Net loss before tax of $5.9M, compared to a net loss before tax of $13.6M in the three months ended
December 31, 2022.
• EBITDA loss of $5.2M, compared to an EBITDA loss of $12.7M in the three months ended December 31,
2022.
• Adjusted EBITDA loss of $1.1M, compared to an Adjusted EBITDA loss of $0.4M in the three months
December 31, 2023 December 31, 2022 Change
% December 31, 2023 December 31, 2022 Change
%
Operating Revenues $ 4,347,995 $ 3,882,866 12% $ 15,667,142 $ 13,872,800 13%
Cost of Sales (5,332,189) (4,067,377) 31% (18,267,703) (14,232,664) 28%
Operating loss $ (984,194) $ (184,511) 433% $ (2,600,561) $ (359,864) 623%
Exploration Expenditures (27,956) (21,801) 28% (262,245) (225,396) 16%
General and Administrative expenses (830,350) (705,609) 18% (3,176,748) (3,831,482) -17%
Other items (4,094,560) (12,720,037) -68% (4,749,534) (13,119,873) -64%
Net loss before tax $ (5,937,060) $ (13,631,958) -56% $ (10,789,088) $ (17,536,615) -38%
Deferred income tax recovery (expense) (2,262,000) (2,237,000) 1% (1,642,000) (676,000) 143%
Net loss $ (8,199,060) $ (15,868,958) -48% $ (12,431,088) $ (18,212,615) -32%
Gain (Loss) on translation of foreign
operations (873,846) (326,927) 167% (597,332) (916,875) -35%
Total comprehensive loss $ (9,072,906) $ (16,195,885) -44% $ (13,028,420) $ (19,129,490) -32%
Shareholders
Loss per share, basic and diluted $ (0.05) $ (0.10) -52% $ (0.08) $ (0.13) -43%
EBITDA $ (5,193,707) $ (12,673,439) -59% $ (8,041,703) $ (15,597,057) -48%
Adjusted EBITDA (1,103,542) (354,633) 211% (3,636,591) (2,696,288) 35%
Adjusted EBITDA per share (0.007) (0.002) 187% (0.022) (0.020) 13%
For the three months ended For the year ended
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ended December 31, 2022.
The increase in loss in the current period was primarily due to increase in operating revenues from the sale of
mineral production of $4.3M compared to $3.9M in the prior year (increase of $0.4M), offset by increase of cost
of sales of $5.3M compared to $4.1M in the prior year (increase of $1.2M), resulting in a operating loss of $1.0M
compared to an operating loss of $0.2M in the prior period. In the current period, the Company also incurred an
impairment of $4.4M on its Coriorcco & Las Antas property in Peru. In the comparative period, the Company
incurred an impairment of $9.1M of goodwill, an impairment of $1.1M on its Julian Property in Ecuador and a loss
on conversion of convertible debenture of $2.1M.
Financial Position
The available cash during the period decreased by $0.5 million reflecting the net outflow from its continuing
development of the Tangana mine unit, which saw higher development rates during the period. This was offset
by the Company’s non-brokered private placement of net proceeds of $1.8M completed during the year. 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.
Q4 2023 Q4 2022 Change %
Cash $ 484,902 1,023,979 -53%
Current assets 6,047,744 6,418,921 -6%
Total assets 51,861,083 55,971,247 -7%
Current liabilities 21,187,232 17,031,916 24%
Non-current liabilities 11,967,137 9,536,682 25%
Total liabilities 33,154,369 26,568,598 25%
Total shareholders' equity 18,706,714 29,402,649 -36%
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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.
Unit December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Ore mined tonnes 29,900 33,794 109,800 90,377
Ore processed tonnes 34,299 33,392 125,877 96,721
Average head grades
Silver g/t 92.10 59.11 65.79 67.58
Gold g/t 1.04 1.87 1.04 2.00
Zinc % 1.84 1.86 1.60 1.53
Lead % 1.71 1.61 1.51 1.51
Average AgEq head grades g/t 314 367 273 382
Average AgEq head grades oz/t 10.10 11.79 8.76 12.29
Average recoveries
Silver % 89% 87% 88% 87%
Gold % 70% 73% 68% 65%
Zinc % 85% 79% 83% 80%
Lead % 87% 88% 87% 88%
Metal processed
Silver oz 99,171 63,456 260,544 215,180
Gold oz 1,114 2,013 4,092 6,239
Zinc lbs 1,356,324 1,368,542 4,348,404 3,265,818
Lead lbs 1,260,263 1,184,484 4,101,079 3,230,867
AgEq processed 1 2 oz 354,207 393,622 1,136,268 1,192,478
Metal produced
Silver oz 88,367 60,162 230,243 192,667
Gold oz 799 1,260 2,875 4,049
Zinc lbs 1,155,609 1,150,025 3,597,432 2,729,653
Lead lbs 1,096,166 1,039,498 3,585,590 2,851,654
AgEq produced 1 2 oz 292,380 302,386 918,465 893,458
Metal sold
Silver oz 83,268 49,126 243,498 171,354
Gold oz 750 1,117 3,022 4,314
Zinc lbs 1,026,037 958,152 3,704,715 2,461,446
Lead lbs 1,044,681 937,332 3,819,358 2,706,362
AgEq sold 1 2 oz 240,950 247,032 850,106 799,384
Average realized price 2 3
Silver $/oz 23.14 22.70 23.34 21.28
Gold $/oz 1,937 1,765 1,935 1,746
Zinc $/lbs 1.13 1.38 1.22 1.49
Lead $/lbs 1.00 1.00 0.98 0.96
Cash cost per AgEq ounce produced 2 $/oz 18.2 14.6 19.9 17.4
AISC per AgEq ounce produced 2 $/oz 25.0 21.5 28.5 25.1
For the three months ended For the year ended
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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.
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 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:
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Note:
1. For the year ended December 31, 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 increased with the increase of the level of tonnage of ore processed, which
amounted to 34,299 tonnes for Q4 2023 and 125,877 tonnes for FY 2023 (33,392 tonnes in Q4 2022 and 96,721
tonnes in FY 2022). This resulted in higher production and sales volumes during the period.
The capital expenditure deployed in the development of the Tangana mining unit during the period was the
main cost contributor to the AISC. 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:
The following table shows the calculation of the cash costs and AISC per AgEq ounce produced:
For the three
months ended
Decenber 31, 2023
For the three
months ended
December 31, 2022
For the year ended
December 31, 2023
For the year ended
December 31, 2022
Cost of sales $ 5,332,189 $ 4,067,377 $ 18,267,703 14,232,664
Changes in concentrate inventory (121,578) 67,867 (379,905) 93,941
Royalties (136,591) (123,861) (483,364) (460,106)
Transportation and other selling costs (72,757) (73,155) (264,279) (233,350)
Amortization (602,744) (524,201) (2,108,691) (997,488)
Total cash production costs $ 4,398,519 $ 3,414,027 $ 15,031,464 $ 12,635,661
Royalties 136,591 123,861 483,364 460,106
Transportation and other selling costs 72,757 73,155 264,279 233,350
Treatment and refining charges and penalties 720,570 790,801 2,538,858 2,178,325
Total cash costs (A) $ 5,328,438 $ 4,401,844 $ 18,317,965 $ 15,507,442
General and administrative (incl. share
based compensation) (1) 830,350 705,609 2,856,901 3,831,482
Operating lease payments 80,871 77,871 318,484 311,484
Accretion and Amortization of Reclamation
Cost 20,601 39,435 82,404 82,404
Sustaining Capital Expenditure:
Development 977,893 609,646 4,440,672 1,224,311
Purchase of PP&E 59,541 645,433 138,280 1,451,959
Sustaining costs (B) $ 1,969,256 $ 2,077,994 $ 7,836,741 $ 6,901,640
All-In-Sustaining costs (A+B) $ 7,297,694 $ 6,479,838 $ 26,154,706 $ 22,409,082
For the three
months ended
December 31,
2023
For the three
months
ended
December 31,
2022
For the year
ended
December 31,
2023
For the year
ended
December 31,
2022
Net Loss $ (8,199,060) $ (15,868,958) $ (12,431,088) $ (18,212,615)
Deferred income tax recovery 2,262,000 2,237,000 1,642,000 676,000
Finance cost 140,609 434,318 638,694 942,070
Amortization 602,744 524,201 2,108,691 997,488
EBITDA $ (5,193,707) $ (12,673,439) $ (8,041,703) $ (15,597,057)
Foreign exchange (gain) loss (461,705) 245,042 (299,355) 141,129
Impairment of goodwill - 9,084,732 - 9,084,732
Impairment of exploration and evaluation assets 4,415,637 1,090,003 4,415,637 1,090,003
Loss on conversion of convertible debenture - 2,062,122 - 2,062,122
Share-based payments 136,233 (163,093) 288,830 522,783
Adjusted EBITDA $ (1,103,542) $ (354,633) $ (3,636,591) $ (2,696,288)
Adjusted EBITDA per share $ (0.007) $ (0.002) $ (0.022) $ (0.020)
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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.
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 each month before any deductions:
For the three
months ended
December 31, 2023
For the three
months ended
December 31, 2022
For the year ended
December 31, 2023
For the year ended
December 31, 2022
AgEq ounces produced 292,380 302,386 918,465 893,458
Totals:
Cash costs $ 5,328,438 $ 4,401,844 $ 18,317,965 $ 15,507,442
Sustaining costs 1,969,256 2,077,994 7,836,741 6,901,640
All-In-Sustaining costs $ 7,297,694 $ 6,479,838 $ 26,154,706 $ 22,409,082
Per AgEq ounces produced:
Cash costs $ 18.22 $ 14.60 $ 19.94 $ 17.40
Sustaining costs 6.74 6.90 8.53 7.70
All-In-Sustaining costs $ 24.96 $ 21.50 $ 28.48 $ 25.10
For the three
months ended
December 31, 2023
For the three
months ended
December 31, 2022
For the year ended
December 31, 2023
For the year ended
December 31, 2022
Cost of Sales $ 5,332,189 $ 4,067,377 $ 18,267,703 $ 14,232,664
Adjustments - increase/(decrease):
Amortization (602,744) (524,201) (2,108,691) (997,488)
Changes in inventories (121,578) 67,867 (379,905) 93,941
Production cash costs (excluding inventory
adjustments) $ 4,607,867 $ 3,611,043 $ 15,779,107 $ 13,329,117
Tonnes processed 34,299 33,392 125,877 96,721
Production cash cost per tonne processed $/t 134 $/t 108 $/t 125 $/t 138
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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 Standards ("IFRS") and all dollar 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.
For the three
months ended
December 31, 2023
For the three
months ended
December 31, 2022
For the year ended
December 31, 2023
For the year ended
December 31, 2022
Silver
Gross revenue $ 1,926,815 1,115,103 5,683,062 3,646,809
Metal sold oz 83,268 49,126 243,498 171,354
Average realized price $/oz 23.1 22.7 23.3 21.3
Gold
Gross revenue $ 1,452,449 1,970,901 5,845,364 7,533,483
Metal sold oz 750 1,117 3,022 4,314
Average realized price $/oz 1,937 1,765 1,935 1,746
Zinc
Gross revenue $ 1,159,501 1,317,914 4,521,418 3,666,075
Metal sold lbs 1,026,037 958,152 3,704,715 2,461,446
Average realized price $/lbs 1.13 1.38 1.22 1.49
Lead
Gross revenue $ 1,040,363 936,466 3,728,151 2,599,186
Metal sold lbs 1,044,681 937,332 3,819,358 2,706,362
Average realized price $/lbs 1.00 1.00 0.98 0.96