Silver X Mining Reports Pre-Tax Profitability and Operational Progress in Q2 2025

Silver X Mining Corp. reported sustained pre-tax profitability through the second quarter of 2025, marking a significant milestone in the development of its Nueva Recuperada Project in Central Peru. The company's financial results demonstrate substantial operational improvements despite some production declines, indicating effective cost management and strategic positioning for future growth.

For the six months ended June 30, 2025, Silver X generated pre-tax income of $166,000, a remarkable improvement compared to a net loss before tax of $539,000 for the same period in 2024. This 131% improvement reflects the company's successful execution of its operational strategy and cost containment measures. Operating income increased nearly 200% during the first half of 2025 compared to the similar period in 2024, while net losses decreased by 71% to $410,000 from $1.4 million in the prior year period.

During the second quarter of 2025, operating income increased 55% to $847,000 compared with $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 in 2024. Net losses were reduced by 52% quarter-on-quarter, dropping to $79,000 in the second quarter of 2025 from $164,000 in the second quarter of 2024.

Operational metrics showed mixed results, with processed tonnage declining by 9% year-to-date, from 82,505 tons for the six months ended June 30, 2024, to 75,099 tons for the same period in 2025. The second quarter of 2025 saw a more significant decrease of 22% in processed tonnage to 34,899 tons compared to 44,601 tons in the second quarter of 2024. Average silver equivalent head grades declined by 3.0% in the second quarter of 2025 compared to the same period in 2024, and by 12.0% for the six-month period ending June 30, 2025, versus the same period in 2024.

The company made substantial progress in development activities, completing 1,788 meters of mine development during the first quarter of 2025, which expanded current mining operations and accessed higher-grade target areas. Exploration drilling totaled 2,253 meters during the second quarter of 2025, consistent with the company's 8,000-meter plan for the full year. These development activities contributed to the company's All-In Sustaining Cost (AISC) metrics, which increased to $28.5 per silver equivalent ounce for the six months ending June 30, 2025, representing a 33.4% increase compared to $21.3 for the same period in 2024.

CEO Jose Garcia commented on the results, stating that Silver X 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, noting that the company stands at the threshold of a transformative period for all stakeholders. The company's financial performance improvements were primarily driven by an 82% reduction in depreciation expense, resulting from the increase in Measured and Indicated Mineral Resources that serve as the basis for depreciation calculations.

For additional information on the company's non-IFRS measures and detailed reconciliations to IFRS measures, readers can refer to the Management's Discussion and Analysis available on https://www.sedarplus.ca. The company's website at https://www.silverxmining.com provides further details about its operations and development plans.

The financial results indicate that Silver X Mining is successfully navigating the challenges of early-stage mining operations while maintaining profitability. The reduction in net losses and improvement in operating income suggest that the company's strategic focus on cost management and operational efficiency is yielding positive results. The increased investment in development activities, particularly in the Tangana Mining Unit, positions the company for potential production increases and access to higher-grade areas in future periods.

This performance is particularly significant given the current economic environment and the challenges facing junior mining companies. Silver X's ability to maintain pre-tax profitability while continuing development activities demonstrates operational discipline and effective resource management. The company's progress at the Nueva Recuperada Project could have broader implications for the mining sector in Peru, potentially encouraging further investment in underdeveloped mineral districts and contributing to regional economic development.