Silver Producer's Q1/25 Financials Show QOQ Improvement

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Silver X Mining Corp.'s (AGX:TSX.V; AGXPF:OTC) just released Q1/25 financial results that show operating income, pretax profit and EBITDA all shifted into positive territory during the three months ended March 31, 2025, a news release noted.

"This signals to us that operations at Nueva Recuperada are starting to turn around," wrote Red Cloud Securities Analyst Alina Islam in a May 23 research report, referring to Silver X's silver project in Central Peru.

Performing better financially in Q1/25 than in Q4/24, the miner earned a pretax profit and generated strong cash flow.

Specifically, operating income was US$786,000 (US$786K), turning positive from (US$439K) in Q4/24, on higher sales and lower depreciation. Pretax income also reversed, coming in at US$20K versus (US$938K) in the previous quarter.

Q1/25 EBITDA was 241% higher quarter over quarter (QOQ), at US$403K compared to (US$286K), even with lower-than-anticipated production, noted Islam. However, operating costs were 38% lower QOQ at US$4.5 million (US$4.5M). Likewise, adjusted EBITDA in the first quarter was US$409K, up from (US$424K) in Q4/24.

All-in sustaining cost in Q1/25 was US$27.50 per ounce of silver equivalent (US$27.50/oz Ag eq). This was 7.5% lower than US$29.70/oz in the previous quarter. It was 39.4% higher than in Q1/24, then US$19.70/oz, due to capex paid for Tangana Mining Unit development.

Overall, Silver X posted a net loss in Q1/25 of US$331K, an improvement over its US$895K net loss in Q4/24.

Regarding cash, during Q1/25, the company generated net proceeds of US$1.9M from a private placement that closed on March 13. Silver X ended Q1/25 with US$1.4M in cash.

Operationally during Q1/25, the silver explorer-producer completed 2,316 meters (2,316m) of mine development, increasing its access to higher-grade zones. The company processed 40,200 tons, 3% less than in Q4/24. It kicked off its 2025 drill program.

"[Given] these results, combined with the increase in our most recent mineral resource estimate, Silver X is in a strong position to capitalize on what we believe is a compelling outlook for the silver market," the company's chief executive officer, Jose M. Garcia, said in the release.

Focused on Material Growth

Based in British Columbia, silver explorer-developer-producer Silver X Mining continues advancing Nueva Recuperada.

"With a district-scale silver project in Peru that is both in active production and growing via the drill bit, Silver X Mining is not only that kind of silver opportunity," said Brien Lundin in the May 1 Gold Newsletter edition, referring to a company that can immediately turn high prices into cash flow and demonstrate strong production and resource growth, "it might be the best around."

The company currently is producing silver, gold, lead and zinc at its Tangana Mining Unit. Another mining unit at Nueva Recuperada, Plata, was shown in a recent resource update to contain 950,000 tons of 12.4 ounce per ton (12.4 oz/ton) Ag eq in the Indicated category and 5,400,000 tons of 9.8 oz/ton Ag eq in the Inferred category. Silver X plans to start production at the past-producing Plata mine next year.

Meanwhile, the company will continue looking to exploit the tremendous exploration upside at the project. The land package, at 20,472 hectares, is of district scale size, and Silver X has identified more than 200 drill targets there. For example, brownfield targets at Tangana, Lundin noted, include the San Antonio vein, the Positiva vein system and the nearby Ccasahuasi gold target.

Also, Silver X management is seeking mergers and acquisitions (M&A) opportunities in overlooked historical mining districts to which it could apply its exploration, development and production expertise, the May 2025 Corporate Presentation indicated.

"This is an exciting time for Silver X," CEO Garcia said in the latest release. "We remain steadfast and focused on delivering value through disciplined, profitable and growing production in one of the most prolific districts in Peru."

Silver Breakout Imminent

Silver is about to break out, Technical Analyst Clive Maund purported in a May 24 report. A massive short position has been and continues to keep the silver price restrained in this bull market, he explained. Pressure has built because silver wants to run like gold has, and like with too much heat in a pressure cooker, the situation is unsustainable. Thus silver is going to free itself, and technical indicators show it is readying to do so. Based on the charts, Maund expects silver to climb to US$35 an ounce (US$35/oz), thereby surpassing its highs last October.

"If the shorts decide to hit the exits, we could see a wild melee where silver spikes vertically," Maund added.

Eric Sprott, founder of Sprott Inc., told Investing News recently he believes the silver price will go higher than US$35/oz.

"I'm sure we're going to be through US$50," he said. "It used to trade at 15:1 to the price of gold. At today's price of gold, that would be over US$200. I have no reason to think we're not going there." Also, he predicts the gold:silver ratio will correct in the near term, and eventually silver will begin to outperform gold, he added.

In the same interview, Technical Analyst Michael Oliver noted the gold:silver ratio is around 100:1 whereas typically it is between 40:1 and 80:1, suggesting a breakout is imminent. He said he anticipates a rapid silver price surge past US$50/oz, quickly followed by a move to somewhere in the US$60s or US$70s.

"I bet both of these metrics will pretty much coincide in terms of upturn, meaning not only a net price upturn in silver but a relative performance upturn in silver versus gold," Oliver said. "I think that'll shock people more than anything, especially if all of a sudden silver wakes up in a shocking, rapid way."

Sprott and Oliver also discussed silver's demand and supply fundamentals. They highlighted industrial demand for silver driven by the energy transition and the use of the metal in solar panels. As electric vehicle producers switch to solid-state batteries, said Sprott, silver demand from this sector should increase. As for supply, the silver market continues in its years-long structural deficit.

Looking further out, to 2030, analysts' silver price predictions for that year range from US$50–225/oz, reported Just2Trade on May 22. Price estimates diverge dramatically, with WalletInvestor forecasting US$39–41/oz silver, for instance, and DigitalCoinPrice expecting US$166–190/oz.​ Factors influencing the price include market need, economic trends and currency dynamics.

The Catalysts: Expansion, Expansion, Expansion

Silver X is looking to expand Nueva Recuperada's resource, expand production and expand mill capacity, Red Cloud's Islam reported. To expand the resource, it started drilling 8,000m at the Tangana Mining Unit earlier this year then will release a preliminary economic assessment (PEA) to include Tangana and Plata ounces, both this year.

As for increasing production, the company continues its production ramp-up at Tangana to 720 tons per day (tpd), and intends to start mining at Plata next year.

Also in 2026, plans include expanding the mill capacity to 2,000 tpd.

Possible 400% Upside in Stock

Islam, in her latest report, wrote that Silver X seemed to have begun turning Nueva Recuperada operations around in Q1/25 after struggling to run the plant at full capacity in Q4/24. However, the 450 tpd rate it reached in Q1/25 was lower than the 475 tpd achieved in the previous year. As such, the analyst expects Q2/25 will be another turnaround quarter, and operational and financial results will start to improve in H2/25. She also pointed out that despite its cash flow, the company will need to raise capital at some point. Overall, though, Islam remains bullish on the stock. She rates it Buy and has a target price on it suggesting a 369% uplift from its current price.

"Ramp-up to full production and plans for further expansion could help rerate the stock," Islam wrote.

Gold Newsletter's Lundin highlighted that Silver X still is trading at a fraction of the US$175M after-tax net present value discounted at 10% indicated in the 2023 Tangana-only PEA.

"Silver X has plans to triple silver equivalent production at Tangana by 2028," wrote Lundin. "In what looks like a very strong market for silver, that growth promises to translate into a share price significantly higher than Silver X Mining's current depressed levels. All this projected growth ahead adds up to one thing: You need to start doing your homework on Silver X Mining now."

Sid Rajeev, Fundamental Research Corp. analyst, wrote in research report last month that Silver X is trading at a significant discount to its peers. This along with anticipated production from the Plata Mining Unit and M&A activity in the sector make for an attractive entry point. Rajeev has a Buy rating on Silver X and a fair value implying a 400% return from where the stock now is trading.

"We believe AGX presents a compelling value proposition," he added.

Ownership and Share Structure

According to Refinitiv, six strategic entities own 19.63% of Silver X Mining. The Top 3 are Baker Steel Resources Trust Ltd. with 8.77%, CEO Garcia with 6.42% and Sebastian Wahl with 4.38%.

The rest is in retail. There are no institutional investors at this time.

The silver miner has 222.48 million (222.48M) outstanding shares and 178.8M free float traded shares. Its market cap is CA$24.89M. Its 52-week range is CA$0.115–0.38 per share.