Impact: Mildly Positive
Silver X reported Q2/24 financial and operating results, with a net loss of US$0.16M or neg. US$0.00/sh, which was about in line with our and consensus estimates of US$0.00/sh. Revenues totaled US$6.24M (+31% QoQ; +34% YoY), Adj. EBITDA was US$0.79M or US$0.004/sh (vs. US$0.4M in Q1/24 and -US$0.9M in Q2/23), and Operating Income was US$0.55M, vs. US$0.06M in Q1/24 and -US$0.4M in Q2/23. Silver X had previously reported production numbers from its Nueva Recuperada Mine in Peru (read notable), with production of 284,027 oz AgEq. The company mined 42,866 tonnes, a 20% increase QoQ and 34% increase YoY. The company stated that its focus now is on cost controls, including head grade distribution, mine design and the possibility to adapt different mining methods to the various mining widths, while continuing to improve production levels. In our opinion, these are mildly positive results; about in-line with our estimates and showing progress on the production level, resulting in higher revenues and overall stronger financial results QoQ and YoY. Importantly, the company is now in a position to use its cash flows to pay down debts, resulting in a stronger working capital position. We do note that cash costs and AISC improved YoY, but they crept up QoQ. With a continued focus on cost controls while ramping up production, Silver X is well-poised to benefit from the strong silver and gold price environment.
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