Impact: Positive
Silver X reported Q1/24 production results from its Nueva Recuperada mine in Peru. The company processed 37,903t of ore (+10.5% QoQ) at a head grade of 299 g/t AgEq (-4.8% QoQ) to produce 298,047 oz AgEq (1.9% QoQ), which was above our estimate of 250,670 oz AgEq. Ag, Pb, Zn recoveries improved modestly to 89.2%, 88.9% and 85.2%, respectively, though Au recovery of 61.7% is lower than previous quarters. The company stated that it met its quarterly production targets, and cost control measures continued at both operational and corporate levels. We now estimate earnings of C$0.00/sh in Q1/24. In our opinion, these are positive production results for Silver X. The processed tonnage and overall AgEq production were both above our estimates. While head grade slipped modestly, Ag recovery was higher than previous quarters at 89.2%. The stepwise improvement from Q4/23 to Q1/24 contrasts with AGX’s pre-shutdown quarterly volatility in operational performance. Overall, this is a positive step in the ramp-up of production at Nueva Recuperada.