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Silver Miner Improves QOQ Production in Q1/24
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Total production by this Buy-rated Canadian company exceeded estimates by 19%, noted a Red Cloud Securities report.

Silver X Mining Corp.'s (AGX:TSX.V) Q1/24 production results from its Nueva Recuperada mine in Peru were positive and better than in the previous quarter, reported Red Cloud Securities mining analyst Timothy Lee in an April 25 research note.

"The stepwise improvement from Q4/23 to Q1/24 contrasts with the company's pre-shutdown quarterly volatility in operational performance," Lee wrote. "Overall, this is a positive step in the ramp-up of production at Nueva Recuperada."

213% Return Potential

Red Cloud reduced its target price on Silver X to CA$0.75 per share from CA$0.80 per share to reflect the company's current capital structure, including its just completed financing, noted Lee.

Despite the lower target price, the possible gain for investors remains high, at 213%. This is based on the producer's share price at the time of the report of about CA$0.24 per share.

The Canadian silver miner is a Buy.

Production Numbers Reviewed

Silver X's Q1/24 production results from Nueva Recuperada were generally better quarter over quarter (QOQ), reported Lee, who discussed them.

When comparing Q1/24 to Q4/23, Silver X processed more tonnage, but the head grade was slightly lower: 37,903 tons of ore at 299 grams per ton of silver equivalent (299 g/t of Ag eq). The amount the company processed was 10.5% higher and beat Red Cloud's estimate. The grade was 4.8% lower QOQ.

Total Q1/24 production at the project in Peru was 298,047 ounces of Ag eq, higher than in Q4/23 by 1.9% and surpassing Red Cloud's estimate of 250,670 ounces Ag eq by 19%.

As for specific metals, recoveries in Q1/24 of silver, lead, and zinc were 89.2%, 88.9%, and 85.2%, respectively. All of these figures were slightly better QOQ. The recovery of gold, of 61.7%, though, was 12.5% lower than in Q4/23.

According to Silver X's management, the analyst relayed that in Q1/24, the company achieved its production targets and continued its efforts to decrease operational and corporate costs.

Completed Financing

As for Silver X's recent financing, reported Lee, the company generated CA$5 million gross from a non-brokered private placement in which 27 million units were issued at CA$0.18 apiece. Each unit comprised one share and one full warrant.

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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. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4.  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 Red Cloud Securities, Silver X Mining Corp., April 25, 2024

Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Regulatory 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

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.

Recommendation Terminology Red Cloud Securities Inc. recommendation terminology is as follows: • BUY – expected to outperform its peer group • HOLD – expected to perform with its peer group • SELL – expected to underperform its peer group • Tender – clients are advised to tender their shares to a takeover bid • Not Rated or NA – currently restricted from publishing, or we do not yet have a rating • Under Review – our rating and target are under review pending, prior estimates and rating should be disregarded. Companies with BUY, HOLD or SELL recommendations may not have target prices associated with a recommendation. Recommendations without a target price are more speculative in nature and may be followed by “(S)” or “(Speculative)” to reflect the higher degree of risk associated with the company. Additionally, our target prices are set based on a 12-month investment horizon.

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