Silver X Mining
Financials:
Primary ticker: TSXV:AGX
Stage of development: Exploration, Development, Production
Primary minerals: Silver
Project to promote: Nueva Recuperada
Project location: Peru
Website: silverxmining.com
• Silver X is a high-growth silver developer and producer in South America.
• The Company is currently producing silver, gold, lead and zinc from its 100% owned Tangana project, within The Recuperada Silver District in Central Peru, while simultaneously advancing the Plata-Esperanza Mine to restart production in 2024.
• Silver X controls over 20,000-hectare land package, including more than 240 outcropping veins with combined strike-length of more than 500km.
• Silver X owns a large silver resource, containing up to 200 Moz AgEq in 14.4 MT of high-grade ore. With a 720PTD fully operational plant, the company has the vision to surpass the 2Moz AgEq in 2023 and to reach 4Moz AgEq by 2025.
• The company is on track in ramping up to commercial production in Q4 2022. Using a cost-effective exploration method, leveraging existing underground development.
• Key shareholders include Baker Steel Capital, US Global and Sprott. Together with management, they own 56 % of Silver X.
Cash: CAD$1.5M
Debt: CAD$2M
Major shareholders:
Baker Steel Capital Managers LLP -13.7%
US Global Investors, Inc. – 4%
Sprott Asset Management LP – 1.32%
Jose Garcia (CEO): – 9.6%
Sebastian Wahl (Director): – 9%
Management Ownership – 30%
Management Profile
Sebatian Wahl – VP Corporate Development, Director
Co-founder of MMTP, Latitude’s predecessor company (which merged with Oro X to form Silver X in 2021). He was instrumental in the acquisition of Nueva Recuperada. Sebastian brings a decade of experience in investments, mining and commodity trading.
Wendy T. Chan – Strategy Advisor
Wendy has over 20 years of experience working with billion-dollar companies. Her focus is on strategy and business development, facilitating acquisitions, divestitures, joint ventures and financing.
What is your rationale for taking part in 121 Mining Investment?
121 Mining is known for bringing quality investors to the table. We are looking for long term partners that will help us grow. We are currently ramping up to commercial production. Just like many pre-commercial production stories, we are undervalued and we have key catalysts upcoming that will cause re-valuation: commercial production/increased tpd, PEA (2500 tpd) and expeditiously adding resources.
As M&A is part of our growth strategy, we are also looking to connect with institutions who may be interested in partnering with us as a strategic investor- partner in co-acquisition funding.
What recent news would you like to highlight to investors attending?
Oct 5 – SILVER X PROVIDES SEPTEMBER 2022 OPERATIONS UPDATE: 162,049 SILVER EQUIVALENT OUNCES* PROCESSED
Sept 29 -SILVER X CONFIRMS 200 METRE MINERALIZED DOWNDIP EXTENSION OF TANGANA 1 VEIN WITH RECENT DRILLING.
Sept 6 – HIGHER GRADE ORE FROM THE TANGANA VEIN LEADS TO FURTHER 57% INCREASE IN SILVER EQUIVALENT PROCESSED IN AUGUST
Aug 4 – 58% MONTH OVER MONTH PROCESSING INCREASE FROM JUNE
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Deliver sustained production increase while advancing the exploration of our assets. Reach 2Moz AgEq produced in 2022. Submit PEA.
6 Months:
Activate 2nd project in the district (Plata project) to begin exploration and development through 2023
Submit ESIA to expand processing capacity
12 Months:
Confirm consolidation of operation, solid recognition in the market, and achieve relevant M&A. Potentially spin off Bolivian gold asset. Production from Plata Mining Unit.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Pre-commercial Production:
Ramping up to commercial production is a challenging period for all mining projects in the typical Life Cycle of a Mine. During this period, assets tend to be undervalued; Silver X is no different. Silver is on track to deliver key milestones that are key catalysts for re-valuation such as: Commercial Production and PEA – Q4 2022.
Geo-political challenges:
Of late, Latin America leftist governments have caused revaluation of many mining assets.
Some of the perceived risks are real and some are exaggerated. Peru’s government is a minority government. It has been more than 12 months since the change in government; small and mid size mines have not been affected by any regulation changes.
In fact, companies that are in production with operating mines do not need additional permits for exploration. Adding resources in an underground mine such as Silver X can be more cost effective then exploration drilling at other competitive greenfield projects that have exploration permit challenges.
What do you think makes your company such a compelling investment?
Current pre commercial production, reaching commercial production shortly, and EIA expanding processing capacity to 2500tpd.
Paul Matysek, Lead Advisor and one of the key shareholders, and other members from the leadership team have proven track record of exit strategy skills with over $3B in value creation.
Silver X is undervalued and ramping up to commercial production. It has a large resource with an aggressive plan to grow further as it has the potential for a district-scale opportunity.
What are the top 3 key investor takeaways?
1) Excellent Organic Growth Potential
Cost effective resource growth.
Double resource vs PY1 : 7MT to 14.9MT
Triple metal content: 80Moz AgEq to 211Moz AgEq
50,000m historical drillings to be assayed: 25% completed
In development: – Plata Mining Unit: Drilling Q1 2023
2) Prolific, Under-developed Silver District
Large land package, prolific district: Own 12,000 hectares + can explore additional 20,000 hectares
District consolidation M&A growth opportunity reactivating old mines
3)Undervalued, Pre-Commercial Production
On track to commercial production: 720tpd Q4 2022, PEA Q4 2022
Reduced cost per tonne mined as production increases
+58% July production vs PM2 ; over 120,000 AgEq
On track to 2Moz AgEq produced in 2022, goal of 6Moz AgEq in following years