Silver X Mining Corp (TSX-V:AGX, OTC:WRPSF) told investors it expects a strategic operational reset completed in the third quarter of its financial year to enhance efficiency and profitability at its Nueva Recuperada Project in Central Peru.
Announcing results for the three months to September 30, 2023, the company said the operational upgrades included investment in equipment, as well as workforce training, and safety measures.
Operations at the project were placed on hold from July 26 to September 19 as Silver X revisited the project plan and streamlined production at Nueva Recuperada.
However, as a result of the pause, revenues and production metrics at the project decreased while costs per unit rose.
Revenue for the quarter declined to $2.1 million from $5.5 million a year earlier, and $4.7 million in 2Q 2023.
It recorded an operating loss of $0.8 million compared with an operating gain of $2 million in 3Q 2022, and a net loss before tax of $2.3 million, down from a profit of $0.5 million a year earlier.
"Throughout the quarter, we faced an unforeseen decline in grades within certain mineralized zones, resulting in a reduction in metal output and impacting our bottom line financial performance,” Silver X CEO José García commented in a statement.
“We have re-evaluated our mine plan and strengthened our collaboration with our main contractor to enhance our short-term performance. I am highly confident that these adjustments will contribute to the transformation of the Nueva Recuperada Project into one of the most attractive silver districts in the region,” García added.
Silver X's shares traded 2% higher at C$0.26 shortly before midday in Toronto.
~updated with share price movement~
Contact the author at stephen.gunnion@proactiveinvestors.com