Silver X Mining Maintains Pre-Tax Profitability Despite Production Declines
Silver X Mining Corp. achieved pre-tax profitability in the first half of 2025 despite lower production volumes, demonstrating operational efficiency improvements and positioning for future growth in Peru's silver and gold sector.
Silver X Mining Corp. reported sustained pre-tax profitability through the second quarter of 2025, marking a significant turnaround from previous losses despite facing production challenges at its Nueva Recuperada Project in Central Peru. The company's financial performance demonstrates improved operational efficiency and cost management, providing a foundation for future growth in one of Peru's underdeveloped silver and gold districts.
For the six months ended June 30, 2025, Silver X generated pre-tax income of $166,000, a substantial improvement from the $539,000 loss recorded during the same period in 2024. This achievement comes despite a 9% decline in processed tonnage, dropping from 82,505 tons in the first half of 2024 to 75,099 tons in 2025. The second quarter showed an even more pronounced decrease, with processed tonnage falling 22% to 34,899 tons compared to 44,601 tons in the second quarter of 2024.
Operating income showed remarkable improvement, increasing nearly 200% in the first half of 2025 compared to the same period in 2024. Second quarter operating income reached $847,000, representing a 55% increase from the $547,000 reported in the second quarter of 2024. These gains were primarily driven by reduced depreciation expenses, which decreased by 83% due to increased Measured and Indicated Mineral Resources that serve as the basis for depreciation calculations.
CEO Jose Garcia emphasized the strategic importance of these results, stating that the company believes "a modest infusion of capital will serve as a catalyst to unlock the full potential of one of Peru's most prolific yet underdeveloped silver and gold districts." The company completed 1,788 meters of mine development during the first quarter and drilled 2,253 exploration meters in the second quarter, aligning with its 8,000-meter plan for 2025. These development activities focused on expanding current mining operations and accessing higher-grade target areas.
Despite the positive financial trends, the company faced challenges with All-In Sustaining Costs (AISC), which increased by 33.4% to $28.5 per silver equivalent ounce for the six months ending June 30, 2025, compared to $21.3 for the same period in 2024. This increase was primarily attributed to capital expenditures deployed in the development of the Tangana Mining Unit, which the company states will enable access to new production fronts and transition to higher head-grade areas. Additional financial information is available through the company's Management Discussion and Analysis filed on SEDAR+.
The company's improved financial performance reflects disciplined execution of its growth strategy, with net losses decreasing by 71% to $410,000 for the six months ending June 30, 2025, compared to a loss of $1.4 million in the prior year period. Quarter-on-quarter, net losses were reduced by 52% to $79,000 in the second quarter of 2025 from $164,000 in the same quarter of 2024. EBITDA remained positive at $908,000 for the first half of 2025, though down from $2.2 million in the same period of 2024.
Silver X's ability to maintain profitability despite lower production volumes and higher costs demonstrates operational resilience and effective cost management. The company's progress positions it for potential accelerated growth as it continues development and drilling activities, with management expecting coming quarters to reflect meaningful gains from current investments in mine development and exploration.