Silver X Mining Corp.'s production at its Nueva Recuperada mine are now at pre-shutdown levels, according to a note from Red Cloud Securities.
In a research note published on February 2, 2024, Red Cloud Securities analyst Timothy Lee discussed Q4/23 production results from Silver X Mining Corp.'s (AGX:TSX.V) Nueva Recuperada silver-polymetallic mine in Peru. Lee's report provides insight into the company's operational recovery following a temporary shutdown earlier in 2023.
Key financial results indicate Silver X processed 34,300 tonnes of ore in Q4/23, up 2.7% year-over-year. However, the head grade declined 12.5% to 321 g/t silver equivalent (AgEq).
Quarterly production totaled 292,380 oz AgEq, which was 3.3% below the prior year but exceeded Lee's estimates. Silver recoveries remained steady at approximately 89%. Lee notes that after resuming operations on September 19 following an operational re-set, Silver X has nearly ramped back up to pre-shutdown production levels, processing 445,000 oz AgEq at 308 g/t AgEq.
In his commentary, Lee views the production results positively as the company has quickly returned to normalized levels faster than anticipated. He further points out that Silver X has implemented cost-cutting measures and settled roughly US$2.2 million in debt by issuing 6 million common shares at CA$0.499 per share.
According to Lee, "These are positive results, as Silver X has quickly ramped up production to levels from before the mid-2023 shutdown faster than we had anticipated. As well, the settlement of debt for shares helps preserve working capital during this ramp-up."
In the report, Lee gave Silver X a Buy rating and a CA$0.80 target price.
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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. 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.. 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.For additional disclosures, please click here
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