Silver X Mining Corp (TSX-V:AGX, OTC:WRPSF) told investors that it is confident that actions taken at its Nueva Recuperada project in central Peru will transform it into one of the most attractive silver districts in the region.
Releasing second-quarter results, the silver developer and producer reported revenues of $4.7 million for the three months ended June 30, 2023, 2% up from the prior quarter and a 46% increase from 2Q 2022.
It reported an operating loss of $394,277, compared with an operating gain of $348,050 a year earlier, partially due to changes implemented in the mine planning, lower zinc prices and an unexpected drop in grades in some mineralized areas.
"During the quarter, we encountered an unforeseen decline in grades within certain mineralized zones, leading to reduced metal output and adversely affecting our bottom line,” Silver X CEO José García said in a statement.
“The company continues actively working with its technical team, consultants, and contractors to implement the previously announced operational reset with the goal of restarting the operations under an improved operating framework.”
Cash costs of $20.80 per silver equivalent (AgEq) ounce produced and all-in-sustaining costs (AISC) of $29.76 per AgEq ounce produced, were reflective of the sustaining capital expenditure invested in the development of the Tangana mining unit ($1.3 million adding $5.4 per AgEq ounce produced to the AISC), the company said.
It noted that the development expenditure translated into 2,133 meters.
Its net loss before tax amounted to $1.4 million from $1.3 million previously.
Following the end of the quarter, the company highlighted the closing of the third and final tranche of its non-brokered private placement offering with the placement of 1,384,000 units at C$0.30 per unit for gross proceeds of $313,240 (C$415,200).
On July 26, it announced the pause of its operations for an estimated period between 30 and 45 days to implement a strategic operational reset.
Contact the author at stephen.gunnion@proactiveinvestors.com