Silver X Mining Reports Pre-Tax Profitability Amid Operational Challenges in Peru

Silver X Mining Corp. reported maintaining pre-tax profitability through the second quarter of 2025 at its Nueva Recuperada Project in Central Peru, marking a significant milestone for the developing mining operation. The company achieved a pre-tax income of $166,000 for the six months ended June 30, 2025, representing a 131% improvement compared to a loss of $539,000 in the same period last year. This financial improvement occurred despite a 9% decline in processed tonnage year-to-date, dropping from 82,505 tons in 2024 to 75,099 tons in 2025.

Operational challenges included a 22% decrease in processed tonnage during the second quarter of 2025 compared to the same period in 2024, along with a 3.0% decline in average silver equivalent head grades for the quarter and a 12.0% decrease for the six-month period. However, the company completed 1,788 meters of mine development during the first quarter, expanding mining operations and accessing higher-grade target areas. Exploration drilling totaled 2,253 meters in the second quarter, consistent with the company's planned 8,000 meters for 2025.

Financial performance showed notable improvements in key metrics. Operating income increased nearly 200% for the first half of 2025 compared to the same period in 2024, with second quarter operating income rising 55% to $847,000 from $547,000 in the second quarter of 2024. The company generated a pre-tax profit of $145,000 in the second quarter, though this represented a 62% decrease from the $381,000 pre-tax profit earned during the same quarter last year. Net losses decreased by 71% to $410,000 for the six-month period ending June 30, 2025, compared to a loss of $1.4 million in the prior year period.

The company's improved financial performance was primarily driven by reduced costs, with cost of sales decreasing by $1.5 million (14%) from $10.5 million in 2024 to $9.1 million in the current year. This reduction was largely attributed to an 82% decrease in depreciation expense, resulting from increased measured and indicated mineral resources that serve as the basis for depreciation calculations. EBITDA remained positive at $908,000 for the six-month period, though down from $2.2 million in the same period of 2024.

All-in sustaining costs per silver equivalent ounce produced increased to $28.5 for the six months ending June 30, 2025, representing a 33.4% increase compared to $21.3 for the same period in 2024. This measure increased from $23.5 in the second quarter of 2024 to $30.3 in the second quarter of 2025. The capital expenditure deployed in the development of the Tangana Mining Unit during the period was the main cost contributor to the increased all-in sustaining costs. For detailed reconciliations to the most directly comparable IFRS measures, investors can refer to the company's Management Discussion and Analysis available at https://www.sedarplus.ca.

CEO Jose Garcia commented that the company continues to make steady progress with consistent improvements in operating income, pre-tax earnings, and EBITDA. He emphasized that achieving sustained profitability at this stage provides a solid foundation for accelerated growth, with the company standing at the threshold of a transformative period. The company believes that a modest infusion of capital will serve as a catalyst to unlock the full potential of what it describes as one of Peru's most prolific yet underdeveloped silver and gold districts.