Silver X’s 2024 Surge: A Turnaround with Silver Lining?

Silver X Mining Corp. has emerged from the shadows of red ink, posting robust operational and financial results for 2024 that signal a potential turning point for the silver-focused miner. With production volumes up, costs down, and a path to profitability finally materializing, the company’s recent performance raises the question: Is this the start of a sustained turnaround, or merely a blip in a volatile commodity cycle?

Operational Gains Underpin the Turnaround
The Nueva Recuperada Project in Peru, Silver X’s crown jewel, delivered strong results in 2024. Processed tonnage surged by 36% year-over-year to 170,676 tonnes, driven by expanded mine development and higher-grade ore. This allowed silver-equivalent (AgEq) production to climb 20% to 1.1 million ounces, despite a 21% rise in the realized silver price to $28.29/oz. Notably, the company improved metallurgical recovery to 91% in Q4, prioritizing silver extraction—a critical focus given its status as the company’s primary revenue driver.

The Tangana Mining Unit also stabilized, reducing losses and contributing to the overall production ramp-up. Looking ahead, Silver X plans to bring the Plata Mining Unit online by 2026, targeting 3,000 tonnes per day and over six million ounces annually—a bold expansion that could solidify its position in the mid-tier silver mining space.

Financial Improvements: From Losses to Profitability
The company’s financial transformation is equally striking. Full-year net operating revenue jumped 39% to $21.9 million, while Adjusted EBITDA turned positive for the first time, reaching $0.9 million—a stark contrast to the $3.6 million loss in 2023. Even more encouraging, EBITDA for 2024 hit $1.7 million, erasing the $8.0 million deficit from the prior year.

Cost discipline played a pivotal role. Cash costs per AgEq ounce fell to $19.8, and AISC (All-In Sustaining Costs) averaged $24.3, well below the $28.29/oz realized silver price. This margin breathing room is critical, as it suggests the company can withstand moderate price dips. Production cash costs per tonne also dropped 15.3% to $106, reflecting operational efficiencies.

However, investors should note the lingering risks. A $3.4 million net loss before tax in 2024—though narrower than 蕹2023’s $10.8 million—highlights the challenges of transitioning to profitability. Additionally, non-cash charges from past impairments, such as the $4.4 million write-down on the Coriorcco & Las Antas property in 2023, were avoided this year, but such one-time events can skew comparisons.

Strategic Priorities: 2025 and Beyond
Silver X’s 2025 roadmap hinges on three pillars:
1. Tangana Optimization: Boost mill throughput to 3,000 tonnes per day to capitalize on higher-grade zones.
2. Plata Development: Begin construction on the Plata Mining Unit, which could add millions of ounces to production capacity.
3. Debt Reduction: Use cash flow from operations to lower leverage, though the company’s $13.5 million debt as of Q3 2024 (per prior reports) remains a key liability.

Risks Lurk in the Silver Market and Beyond
While the numbers paint an optimistic picture, external factors could disrupt the narrative. Silver prices remain volatile, with the spot price hovering around $25/oz as of early 2025—below Silver X’s 2024 average. A prolonged dip could squeeze margins, especially if the Plata Unit’s costs escalate. Operational risks also loom: transitioning to open-pit mining at Plata may face permitting delays or cost overruns.

Geopolitical risks in Peru, where Silver X operates, are another concern. Recent mining disputes and regulatory changes in the region have spooked investors, though the company’s localized focus might offer some insulation.

Conclusion: Silver X’s Silver Lining, or a Fleeting Glimmer?
The data suggests Silver X is on the right track. With production up, costs down, and a clear path to positive cash flow, the company has laid a foundation for sustainable growth. The Plata Unit’s potential—if executed without delays—could propel annual production to six million ounces, making Silver X a mid-tier player.

However, the company’s success hinges on execution. If it can achieve 3,000 tonnes per day at Tangana and keep AISC below $25/oz, it could generate meaningful free cash flow even at current silver prices. Investors should monitor Q1 2025 production reports for early signs of progress.

The stock’s valuation also matters. At a market cap of ~$120 million (assuming a share price of $2.50), Silver X’s valuation appears reasonable given its growth pipeline. Yet, a comparison to peers like First Majestic Silver (AG) or MAG Silver (MAG) would help contextualize its upside.

In the end, Silver X’s 2024 results are a strong start—but the real test lies ahead. If the company can deliver on its 2025 targets and navigate silver’s price swings, this could be the start of a lasting turnaround. For now, investors should proceed with cautious optimism, mindful of the risks but encouraged by the progress.

Data as of Silver X’s Q4 2024 press release and public filings.