Silver X Mining Corp. (AGX:TSX.V; AGXPF:OTC) has recently released its Q1/25 financial results, showcasing a significant turnaround in its operational performance. The results indicate that the company has successfully shifted its operating income, pretax profit, and EBITDA into positive territory for the three months ending March 31, 2025. This positive trend is particularly noteworthy as it signals a recovery in operations at Nueva Recuperada, Silver X’s flagship silver project located in Central Peru.
Financial Highlights
According to a recent news release, Silver X reported an operating income of US$786,000, a remarkable improvement from a loss of US$439,000 in Q4/24. This turnaround was driven by higher sales and reduced depreciation costs. The company also achieved a pretax income of US$20,000, reversing a loss of US$938,000 from the previous quarter.
The company’s EBITDA for Q1/25 was US$403,000, marking a 241% increase quarter-over-quarter, despite lower-than-expected production levels. Operating costs also saw a significant reduction, dropping 38% to US$4.5 million. Adjusted EBITDA improved to US$409,000, up from a loss of US$424,000 in Q4/24.
While Silver X posted a net loss of US$331,000 for the quarter, this was an improvement compared to a net loss of US$895,000 in Q4/24. The company ended the quarter with US$1.4 million in cash, bolstered by net proceeds of US$1.9 million from a private placement that closed on March 13.
Operational Developments
During Q1/25, Silver X made significant strides in its operational activities. The company completed 2,316 meters of mine development, enhancing access to higher-grade zones. It processed 40,200 tons of ore, which was a 3% decrease from Q4/24. Additionally, the company initiated its 2025 drill program, setting the stage for future growth.
CEO Jose M. Garcia expressed optimism about the company’s position, stating, “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.”
Focused on Material Growth
Silver X Mining is dedicated to advancing its Nueva Recuperada project, which is characterized by its district-scale size and active production capabilities. The company is currently producing silver, gold, lead, and zinc at its Tangana Mining Unit. A recent resource update for another mining unit, Plata, revealed 950,000 tons of 12.4 ounces per ton (oz/ton) Ag equivalent in the Indicated category and 5,400,000 tons of 9.8 oz/ton Ag equivalent in the Inferred category. Silver X plans to commence production at the past-producing Plata mine next year.
The company is also exploring potential mergers and acquisitions in historically overlooked mining districts, aiming to leverage its expertise in exploration, development, and production.
Silver Market Outlook
The silver market is poised for a breakout, according to Technical Analyst Clive Maund. He notes that a massive short position has kept silver prices restrained, but the market is ready for a surge similar to gold’s recent performance. Maund anticipates that silver could climb to US$35 per ounce, surpassing its previous highs.
Eric Sprott, founder of Sprott Inc., believes that silver prices could exceed US$50 per ounce, driven by industrial demand and a structural deficit in the silver market. Analysts predict that by 2030, silver prices could range from US$50 to $225 per ounce, influenced by various economic factors.
Catalysts for Growth
Silver X is focused on expanding its resource base, production capacity, and mill capabilities. The company has initiated an 8,000-meter drilling program at the Tangana Mining Unit and plans to release a preliminary economic assessment (PEA) that includes both Tangana and Plata ounces later this year.
The company aims to ramp up production at Tangana to 720 tons per day and plans to expand mill capacity to 2,000 tons per day by 2026.
Investment Potential
Analysts are bullish on Silver X, with Red Cloud Securities’ Alina Islam suggesting a 369% upside from the current stock price. She believes that the company’s operational improvements and expansion plans could lead to a significant rerating of the stock.
Sid Rajeev from Fundamental Research Corp. also sees value in Silver X, noting that the company is trading at a significant discount compared to its peers. He has a Buy rating on the stock, with a fair value implying a 400% return from its current trading levels.
Ownership and Share Structure
Silver X Mining has a total of 222.48 million outstanding shares, with 178.8 million in free float. The company has a market cap of CA$24.89 million and is primarily owned by six strategic entities, including Baker Steel Resources Trust Ltd. and CEO Jose M. Garcia.
Conclusion
Silver X Mining Corp. is at a pivotal moment in its journey, with promising financial results and a clear strategy for growth. As the silver market shows signs of a potential breakout, Silver X is well-positioned to capitalize on these trends. Investors looking for opportunities in the silver sector should consider keeping an eye on Silver X Mining as it continues to advance its operations and expand its resource base.
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