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Silver Mining Co. Offers Potential 270% Return for Investors

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Silver X Mining Corp. has announced the restart of its operations in Peru. Read on to see why analysts like this company's stock.

Silver X Mining Corp. (AGX:TSX.V) has announced in a press release that the company has restarted its mining operations on the Nueva Recuperada Project, located in central Peru. Prior to the restart, the company reported that it had upgraded its infrastructure and operations protocols at the site.

According to the company, Silver X has created a new plan to target areas on the property that have been determined to have a higher likelihood of mineralizing, including the Tangana 1 and Tangana 2 veins, the Morlupo vein, and the Cauca vein.

The company reports that it is using its stores of materials for efficiency and that the company has reduced costs by reducing staff, the use of the sub-level stopping method (SLS), and additional changes related to the upgraded infrastructure and protocol.

Red Cloud Securities released a report on Silver X earlier this month that named a target price of CA$0.85, representing a potential 270% return for investors.

Silver X is also working to establish a partnership with a particular contractor to better the company's work environment.

According to Jose Garcia, the CEO of Silver X, "Today marks a significant milestone in Silver X's journey. The restart of Nueva Recuperada confirms our commitment to make Nueva Recuperada a profitable operation based on improved safety standards, efficiency, head grades, and costs."

Silver Strong as Dollar Weakens

According to Stockhead, silver was a topic of discussion at the Sydney Opera House Investor Lunch, where environmentally friendly energy was a focus of the proceedings. Silver is an important component of solar panels, which are a major form of green energy production.

Rick Mills of Ahead of the Herd noted that silver, as a commodity, tends to be stronger as the dollar gets weaker.

According to Mills, "When the dollar drops, it takes less of another currency to buy dollars needed to purchase the commodity, so the demand for that commodity will increase, leading to a price increase."

Potential Return of 270%

Red Cloud Securities released a report on Silver X earlier this month that named a target price of CA$0.85, representing a potential 270% return for investors.

According to the report, the company has a number of positive factors working in its favor, including the renewed operations at Nueva Recuperada and a new COO, Freddy Mayor Zavellos, who was a founding member.

Technical Analyst Clive Maund also reported on the company in June and rated it as a "Strong Speculative Buy" for potential investors.

According to Maund, "bullish factors to observe are how volume has declined to a relatively low level which shows the lack of interest characteristic of a bottom, the Accumulation line holding up well overall relative to price, the price well below a still rising 200-day moving average, which is a measure of how oversold it is, and how the MACD has been creeping higher all this month as downside momentum drops out."

Silver X reports that it has a number of catalysts on the horizon, including drilling on the Plata mining project, an Environmental and Social Impact Statement (ESIA), and a possible increase in plant productivity from 2,220tdp to 2,500tdp. 

Ownership and Share Structure

streetwise book logoStreetwise Ownership Overview*

Silver X Mining Corp. (AGX:TSX.V)

*Share Structure as of 9/26/2023

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own 17.12% of the company. According to Reuters, chairman Jose Maria Garcia Jimenez owns 8.40% of the company with 13.99 million shares, Vice President Sebastian Wahl owns 7.83% with 13.05 million shares, executive chairman Luis Zapata owns 0.50% with 0.84 million shares, director Michael Hoffman owns 0.24% with 0.40 million shares, director Darryl S. Cardey owns 0.09% with 0.16 million shares, and CFO Ronald Anibal Marino Sanchez owns 0.06% with 0.10 million shares.

According to Reuters, institutions own 19.69% of the company, as Baker Steel Resources Trust, Ltd. owns 11.71% with 19.50 million shares, US Global Investors, Inc., owns 5.02% with 8.36 million shares, Earth Resource Investment Group owns 1.85% with 3.08 million shares, and Sprott Asset Management LP owns 1.11% with 1.85 million shares.

Reuters reports that there are 166.58 million shares outstanding, with 118.54 million free-float traded shares.

According to Reuters, the company has a market cap of CA$23.47 million and trades in the 52-week period between CA$0.19 and CA$0.48.

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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. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. 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.

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