Mr. Jose Garcia reports
SILVER X REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS
Silver X Mining Corp. has released its interim financial results for the three months ended March 31, 2023, for the Nueva Recuperada project in central Peru.
"The year is off to a great start as ramp up of production progressed and strong metals prices contributed to revenues of $4.6 million," stated Jose M. Garcia, President and CEO of Silver X. "Overall, I am pleased with the progress we are seeing at Tangana. Cash generated from operations sustained capital expenditures for the Tangana mining unit where development was accelerated to over 2,000 metres to support steady production throughout the remainder of the year. Results from the third quarter of 2022 are representative of where we expect to see production and costs stabilize as full ramp up is achieved."
First Quarter 2023 Highlights
- Generated revenues of $4.6 million, representing an 18% increase when compared to the fourth quarter of 2022 and demonstrative of the ramp up towards stable production.
- Operating loss of $0.4 million, partially affected by the social disruption in Peru during Q1 2023, compared with an operating loss of $2.5 million in Q1 2022.
- Net loss before tax of $1.1 million compared with a net loss of $3.1 million in Q1 2022, a 38% improvement as ramp up of production continues.
- Cash costs[1] of $18.50 per silver equivalent ("AgEq")[2] ounce produced and All-In-Sustaining Cost ("AISC")1 of $26.60 per AgEq ounce produced, reflective of the sustaining capital expenditure invested in the development of the Tangana mining unit ($1.5 million adding $5.2 million to the AISC).
Events Subsequent to the End of the Quarter
- On May 17, 2023, announced a non-brokered private placement of up to CAD$3 million.
- Published the Company's inaugural Sustainability Report, which can be found on the Silver X website .
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.
Q1 2023 Q1 2022 Change
Operating Revenues $ 4,575,940 $ 1,308,153 250 %
Cost of Sales (4,986,532 ) (3,829,209 ) 30 %
Operating loss $ (410,592 ) $ (2,521,056 ) -84 %
Exploration Expenditures (15,423 ) (39,162 ) -61 %
General and Administrative expenses (759,491 ) (664,323 ) 14 %
Other items 108,377 31,933 239 %
Net loss before tax $ (1,077,129 ) $ (3,192,608 ) -66 %
Deferred income tax (expense) recovery 207,000 1,789,000 -88 %
Net loss $ (870,129 ) $ (1,403,608 ) -38 %
Gain (Loss) on translation of foreign operations (83,201 ) 350,585 -124 %
Total comprehensive loss $ (953,330 ) $ (1,053,023 ) -9 %
Shareholders
Loss per share, basic and diluted $ (0.01 ) $ (0.01 ) -52 %
EBITDA1 $ (528,478 ) $ (3,084,381 ) -83 %
Adjusted EBITDA1 (643,737 (3,053,994 ) -79 %
Adjusted EBITDA per share (0.004 ) (0.02 ) -84 %
Notes: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 three months ended March 31, 2023, the Company recorded a net loss before tax of $1.1 million, compared to a net loss before tax of $3.2 million in the three months ended March 31, 2022 ("Q1 2022").
The reduction in loss in the current period was primarily due to increased operating revenues from the sale of pre- commercial mineral production of $4.6 million (vs. $1.3 million in Q1 2022) reflective of the continued ramp up of production partially offset by increased production costs in line with the higher production level achieved in the current period of 40,271 tonnes processed (11,403 in Q1 2022).
Loss or gain on translation of foreign operations fluctuates depending on the strength of the Peruvian sol and Canadian dollar against the US dollar. The Company recorded loss on translation for the three months ended March 31, 2023, of $0.08 million (vs. $0.4 million gain in Q1 2022) resulting in a comprehensive loss of $0.95 million (vs. $1.05 million comprehensive loss in Q1 2022).
Financial PositionQ1 2023 Q1 2022 Change
Cash $ 790,396 1,023,979 -23 %
Current assets 6,068,332 6,418,921 -5 %
Total assets 67,316,852 66,274,464 2 %
Current liabilities 19,204,654 17,031,916 13 %
Non-current liabilities 10,564,743 10,875,237 -3 %
Total liabilities 29,769,397 27,907,153 7 %
Total shareholders' equity 37,547,455 38,367,311 -2 %
The available cash during the period was reduced by $0.2M mainly driven by the investment deployed for the continuing development of the Tangana mine unit, which saw higher development rates during the period. 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.
Operational ResultsUnit Q1 2023 Q1 2022
Ore mined tonnes 33,756 7,836
Ore processed tonnes 40,271 11,403
Average head grades
Silver g/t 53.4 72.9
Gold g/t 0.99 0.60
Zinc % 1.78 1.47
Lead % 1.52 1.37
Average AgEq head grades g/t 277 236
Average AgEq head grades oz/t 8.90 7.58
Average recoveries
Silver % 88 % 87 %
Gold % 64 % 55 %
Zinc % 83 % 84 %
Lead % 87 % 89 %
Metal processed
Silver oz 69,218 30,410
Gold oz 1,286 237
Zinc lbs 1,577,974 379,486
Lead lbs 1,351,560 351,372
AgEq processed (2) oz 358,727 98,327
Metal produced
Silver oz 60,544 26,243
Gold oz 862 -
Zinc lbs 1,300,419 326,064
Lead lbs 1,179,026 320,547
AgEq produced (2) oz 282,687 63,499
Metal sold
Silver oz 57,096 20,811
Gold oz 908 155
Zinc lbs 1,172,715 339,804
Lead lbs 1,106,537 334,713
AgEq sold (2) oz 254,741 59,785
Average realized price (1) (3)
Silver $/oz 22.6 24.5
Gold $/oz 1,889 1,934
Zinc $/lbs 1.42 1.83
Lead $/lbs 0.97 1.07
Production cost per tonne processed (1) $/t 110 329
Cash cost per AgEq ounce processed (1) $/oz 18.5 63.1
AISC per AgEq ounce processed (1) $/oz 26.6
Notes:Average Realized Price, production cost per tonne processed, 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.AgEq ounces produced were calculated based on all metals 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 calculations as the metal recoveries are built into the sales amounts. 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.
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.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.