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Production Projected To Surge in Q4/23 at Mine in Peru
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This is expected to come on the heels of the Canadian silver producer resuming operations after a nearly three-month halt during Q3/23, noted a Red Cloud Securities report.

Silver X Mining Corp. (AGX:TSX.V) released its Q3/23 financials and got a target price boost to CA$0.80 per share from CA$0.75 by Red Cloud Securities after it updated its valuation of the Canadian metals producer, reported mining analyst Timothy Lee in a November 30 research note.

"These results are about in line with expectations," Lee wrote.

Compelling Return Implied

Compared to the new target price, Silver X's current price is about CA$0.27 per share, noted Lee. From here, the return to target represents a significant gain for investors of 196%.

Red Cloud rates the company Buy.

Numbers as Expected

Lee reviewed British Columbia-based miner's key financial figures from Q3/23.

Silver X reported a net loss of US$1.5 million (US$1.5M), or (US$0.01) per share, consistent with Red Cloud's forecast.

In Q3/23, revenue was down as expected year over year (YOY) because the miner temporarily halted production between July 26, 2023 and September 19, 2023 to evaluate and optimize its operations in Peru. The company's revenue in the third quarter was US$2.1M; a year earlier, it was more than double this amount, at US$5.5M.

Silver X experienced an operating loss in Q3/23 of US$0.8M, whereas, in Q3/22, it achieved an operating gain of US$2M.

"Production, since the resumption of operations, has been returning to the highs seen before the break," Lee reiterated.

Q3/23 cash costs averaged US$22.01 per ounce of silver equivalent (US$22.01/oz Ag eq). The all-in sustaining cost was US$33.45/oz Ag eq. US$11.44/oz Ag eq, or US$1.3M, of this was sustaining capex for development work at the Tangana mining unit.

Near-Term Outlook Positive

Given Silver X has been rapidly increasing production since restarting it on Sept. 20, Lee wrote an "upswing" is expected in Q4/23.

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Important Disclosures:

  1. [Silver X Mining Corp.] is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of [Silver X Mining Corp.].
  3. [Doresa Banning] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Disclosures for Red Cloud Securities, Silver X Mining Corp., November 30, 2023

Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment.

Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.

Company Specific Disclosure Details

1. The analyst has visited the head/principal office of the issuer or has viewed its material operations.

2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.

3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on via login and password.

Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

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