Silver X Revises Down Its All-IN Sustaining Cost (“Aisc”) According to Revised Methodology
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SILVER X MINING CORP
Suite 1012 – 1030 West Georgia Street | Vancouver, BC | V6E 2Y3
SILVER X REVISES DOWN ITS ALL-IN SUSTAINING COST (“AISC”)
ACCORDING TO REVISED METHODOLOGY
Vancouver, British Columbia, November 5, 2024 – SILVER X MINING CORP.
(TSX-V: AGX) (OTCQB: AGXPF) (F: AGX) ("Silver X" or the "Company"), a growing
silver producer and developer in Central Peru, is pleased to announce changes in the
methodology and metrics for determining the Company’s All-In Sustaining Cost (AISC),
aimed at better reflecting its operating performance and efficiency, enhancing the
comparability of metrics with its peers.
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.
Silver X CFO David Gleit stated, "This revision in our AISC methodology provides a
clearer, more accurate view of our costs and operational efficiency, enhancing
transparency and aligning Silver X with industry standards. We believe this change will
allow investors and stakeholders to better assess our operational performance as we
continue advancing our projects in Peru.”
The following table illustrates the impact of these changes for the previously reported
three-month period ended March 31, 2024, and June 30, 2024:
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Table 1. Silver X Revised AISC Calculation — General and Administrative Expense
Table 2. AISC Reduction – Impact of Methodological Change
For the three
months ended
March 31, 2024
For the three
months ended
June 30, 2024
For the three
months ended
March 31, 2024
For the three
months ended
June 30, 2024
Tonnage 37,903 44,601 37,903 44,601
Gross Sales 5,610,047 7,175,511 5,610,047 7,175,511
Net Sales 4,769,060 6,251,718 4,769,060 6,251,718
AgEq ounces produced 298,047 284,027 298,047 284,027
1Q24
Totals:
Cash costs 4,578,371 5,345,113 4,578,371 5,345,113
Sustaining costs 1,458,827 1,997,113 1,148,982 1,339,840
All-In-Sustaining costs 6,037,198 7,342,226 5,727,353 6,684,953
Per AgEq ounces produced:
Cash costs 15.36 18.82 15.36 18.82
Sustaining costs 4.89 7.03 3.86 4.72
All-In-Sustaining costs 20.26 25.85 19.22 23.54
New MethodologyOld Methodology
For the three
months ended
March 31, 2024
For the three
months ended
June 30, 2024
For the three
months ended
March 31, 2024
For the three
months ended
June 30, 2024
Tonnage 37,903 44,601 37,903 44,601
Gross Sales 5,610,047 7,175,511 5,610,047 7,175,511
Net Sales 4,769,060 6,251,718 4,769,060 6,251,718
Cost of sales 4,773,210 5,695,462 4,773,210 5,695,462
Changes in concentrate inventory 118,560 (11,443) 118,560 (11,443)
Royalties (131,492) (162,449) (131,492) (162,449)
Transportation and other selling costs (70,343) (141,438) (70,343) (141,438)
Amortization (1,154,386) (1,262,699) (1,154,386) (1,262,699)
Total cash production costs 3,535,549 4,117,433 3,535,549 4,117,433
Royalties 131,492 162,449 131,492 162,449
Transportation and other selling costs 70,343 141,438 70,343 141,438
Treatment and refining charges and penalties 840,987 923,793 840,987 923,793
Total cash costs (A) 4,578,371 5,345,113 4,578,371 5,345,113
General and administrative 744,249 1,064,576 434,404 407,303
Operating lease payments 80,871 120,814 80,871 120,814
Accretion and Amortization of Reclamation Cost 20,601 20,601 20,601 20,601
Sustaining Capital Expenditure 613,106 791,122 613,106 791,122
Sustaining costs (B) 1,458,827 1,997,113 1,148,982 1,339,840
All-In-Sustaining costs (A+B) 6,037,198 7,342,226 5,727,353 6,684,953
AgEq ounces produced 298,047 284,027 298,047 284,027
Totals:
Cash costs 4,578,371 5,345,113 4,578,371 5,345,113
Sustaining costs 1,458,827 1,997,113 1,148,982 1,339,840
All-In-Sustaining costs 6,037,198 7,342,226 5,727,353 6,684,953
Per AgEq ounces produced:
Cash costs 15.36 18.82 15.36 18.82
Sustaining costs 4.89 7.03 3.86 4.72
All-In-Sustaining costs 20.26 25.85 19.22 23.54
Old Methodology New Methodology
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As a result of these changes, the following improvements were noted:
Sustaining Costs
o For the three-month period ended March 31, 2024, sustaining costs decreased from
$1.4M to $1.1M, representing a $310,000 or 21% reduction
o For the three-month period ended June 30, 2024, sustaining costs decreased from
$2.0M to $1.3M representing, a $657,000 or 33% reduction
AISC
o For the three-month period ended March 31, 2024, AISC decreased from $20.26 to
$19.22 per AgEq Oz, representing a 5% reduction
o For the three-months period ended June 30, 2024, AISC decreased from $25.85 to
$23.54 per AgEq Oz, representing a 9% reduction
Silver X ensures that the AISC is fully reconcilable with amounts reported under IFRS,
thereby upholding transparency and compliance with financial reporting standards.
The change in methodology will be applied retroactively to the beginning of 2023.
Gross Sales Presentation
Note that reported revenues under IFRS are net of concentrate treatment and refining
charges and penalties. Under the AISC methodology, these costs are added back to
arrive at AISC.
In assessing operating margins, Gross Sales (before treatment and refining charges
and penalties) should be compared with AISC. Going forward, AGX will report Gross
as well as Net Sales to facilitate this comparison.
Non-IFRS Measures
Cash costs ($ 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
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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.
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 can 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
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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 Project, the Company’s belief that the
Tangana system will provide considerable resource expansion potential, that the
Company will be able to mine the Tangana Mining Unit in an economic manner, and
the expected financial performance of the Company.
The following are some of the assumptions upon which forward-looking information is
based: that general business and economic conditions will not change in a material
adverse manner; demand for, and stable or improving price for the commodities we
produce; receipt of regulatory and governmental approvals, permits and renewals in a
timely manner; that the Company will not experience any material accident, labour
dispute or failure of plant or equipment or other material disruption in the Company’s
operations at the Project and Nueva Recuperada Plant; the availability of financing for
operations and development; the Company’s ability to procure equipment and operating
supplies in sufficient quantities and on a timely basis; that the estimates of the
resources at the Project and the geological, operational and price assumptions on
which these and the Company’s operations are based are within reasonable bounds of
accuracy (including with respect to size, grade and recovery); the Company’s ability to
attract and retain skilled personnel and directors; and the ability of management to
execute strategic goals.
Forward-looking information is subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity, performance or
achievements of the Company, as the case may be, to be materially different from
those expressed or implied by such forward-looking information, including but not
limited to those risks described in the Company’s annual and interim MD&As and in its
public documents filed on www.sedarplus.ca from time to time. Forward- looking
statements are based on the opinions and estimates of management as of the date
such statements are made. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such information
will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable securities laws.