Silver X Mining – Q1 2023 Operations Report And Exploration Update
Jose Garcia, CEO and Director of Silver X Mining (TSX.V:AGX – OTCQB:AGXPF) joins us to review the Q1 2023 operations report from the Tangana Mine at the Nueva Recuperada Project in the prolific Huancavelica silver belt, in central Peru. We start off by having Jose outline some of the key takeaways from the First Quarter 2023 operations announced to the market on May 24th.
- 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 of $18.50 per silver equivalent (AgEq) ounce produced and All-In-Sustaining Cost (“AISC”) 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).
Jose goes on to discuss the improved operations anticipated in Q2 and Q3 of this year as social disruptions will not be a factor, throughput will improve once again, and grade should increase, bringing down costs closer to the company target of an $18 AISC later in the year. We also review the potential for resource expansion through exploration around the Tangana Mine Project area. Wrapping up we also get some comments about how Esparanza could be developed down the road, and potentially another attempt to acquire the Revenue Virginius Mine in the future should the right conditions emerge.
If anyone has any questions for Joes on Silver X Mining, then please email us at either Fleck@kereport.com or Shad@keport.com.
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In general, Peru has some social and government challenges, but Silver X is already ramping up in production, and is at a much different place than an explorer or developer hoping that they can get permits for their project. If they are increasing their throughput and and improving their grade as Q2 and Q3 unfold, then it should bring their costs back down and revenues up, so it’s a growth story for the balance of the year, and again for next year.
Also, if they do have another go at acquiring the Revenue Virginius Mine out of receivership in Colorado, then that would further diversify them into one of the best jurisdictions for mining. (Colorado was #5 on the Fraser Institute mining jurisdiction rankings this year).
This one is in Peru which is unfriendly Indian country. Probably should be avoided