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Silver Stock's Production Results Are Positive
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Silver X Mining Corp.'s production at its Nueva Recuperada mine are now at pre-shutdown levels, according to a note from Red Cloud Securities.

In a research note published on February 2, 2024, Red Cloud Securities analyst Timothy Lee discussed Q4/23 production results from Silver X Mining Corp.'s (AGX:TSX.V) Nueva Recuperada silver-polymetallic mine in Peru. Lee's report provides insight into the company's operational recovery following a temporary shutdown earlier in 2023.

Key financial results indicate Silver X processed 34,300 tonnes of ore in Q4/23, up 2.7% year-over-year. However, the head grade declined 12.5% to 321 g/t silver equivalent (AgEq).

Quarterly production totaled 292,380 oz AgEq, which was 3.3% below the prior year but exceeded Lee's estimates. Silver recoveries remained steady at approximately 89%. Lee notes that after resuming operations on September 19 following an operational re-set, Silver X has nearly ramped back up to pre-shutdown production levels, processing 445,000 oz AgEq at 308 g/t AgEq.

In his commentary, Lee views the production results positively as the company has quickly returned to normalized levels faster than anticipated. He further points out that Silver X has implemented cost-cutting measures and settled roughly US$2.2 million in debt by issuing 6 million common shares at CA$0.499 per share.

According to Lee, "These are positive results, as Silver X has quickly ramped up production to levels from before the mid-2023 shutdown faster than we had anticipated. As well, the settlement of debt for shares helps preserve working capital during this ramp-up."

In the report, Lee gave Silver X a Buy rating and a CA$0.80 target price.

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Important Disclosures:

  1. Silver X Mining Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000. 
  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.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Red Cloud Securities, Silver X Mining Corp., February 2, 2024

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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