Silver X Mining Corp. TSXV: AGX / OTCQX: AGXPF / FRA: AGX

Introduction

Silver X Mining Corp. is a Canadian-listed silver producer and developer focused on building a multi-asset precious-metals platform in Peru. The company’s flagship asset is the Nueva Recuperada Silver District in Huancavelica, central Peru, where Silver X is already producing silver, gold, lead and zinc from the Tangana Mining Unit.

The company currently describes Nueva Recuperada as a district-scale land package of approximately 20,795 hectares, containing multiple mining areas and more than 200 exploration targets. Silver X also acquired the separate Pampas Gold-Silver Project in 2026, giving the company a second district-scale exploration asset in Peru.

The most important point is that Silver X is not just an exploration story. Tangana is already operating and generating revenue. During Q2 2026, Silver X processed a record 62,252 tonnes, produced 283,029 AgEq ounces, including 145,885 oz silver and 1,404 oz gold, and generated record net operating revenue of US$17.3M and adjusted EBITDA of US$6.9M. The company reported Q2 net income of US$3.1M and first-half 2026 net income of US$7.7M. Cash stood at US$49.7M at June 30, 2026.

The bigger investment case comes from the 2025 Preliminary Economic Assessment. The PEA outlines a future district-scale operation combining the Tangana and Plata Mining Units at 3,000 tonnes per day, producing approximately 6.2M AgEq ounces annually over a 14-year mine life. The study reports after-tax NPV5% of US$439M, after-tax IRR of 69%, initial capex of approximately US$82M, LOM cash costs of US$11.8/AgEq oz, and LOM AISC of US$15.8/AgEq oz.

The strongest upside comes from several areas. The existing production, the ability to scale production significantly, a large polymetallic resource, high-grade silver zones at Plata and Red Silver, widening mineralization at Blenda Rubia, the Ccasahuasi gold system, and the newly acquired Pampas district.

The main warning is cost. The US$15.8/oz AgEq PEA AISC is a future life-of-mine model, not Silver X’s current operating cost. Actual Q2 2026 AISC was US$46.10/AgEq oz, improved from US$53.24 in Q1, so the company still has a substantial cost gap to close before it can demonstrate PEA-style economics.

Projects / Location / MRE / Grades

Project 1: Nueva Recuperada Silver District, Huancavelica, Peru, Flagship Producing and Expansion Asset

Nueva Recuperada is Silver X’s flagship asset and the core of the investment thesis. It is located in the historic Huachocolpa mining district of Huancavelica, central Peru. The district contains producing, development and exploration assets that Silver X is attempting to integrate into one larger production platform.

The current strategy revolves primarily around Tangana and Plata, with additional growth coming from Red Silver, Blenda Rubia, Ccasahuasi and numerous other targets.

Area	Assessment
Main asset	Nueva Recuperada Silver District, led by the producing Tangana Mining Unit and future Plata restart.
Location feel	Huancavelica, Peru. Historic mining district with existing operations, but Peru remains Tier 2 in this framework because political, permitting, and community risk are higher than Canada/Australia.
Operating status	Tangana is producing and ramping. Q2 2026 processed 62,252 tonnes and produced 283,029 AgEq oz.
Growth plan	Move from today’s Tangana-scale operation toward a 3,000 tpd Tangana + Plata district plan under the 2025 PEA.
Key risk	Current AISC remains far above the PEA model, so scale-up and cost reduction are the main proof points.

Nueva Recuperada 2025 Mineral Resource Estimate

The updated resource has an effective date of May 31, 2025. Combined M&I plus inferred resources represent approximately 152.2Moz AgEq. The resource is meaningful, but the majority of tonnage remains inferred, so conversion drilling remains important.

Category	Tonnes	Ag Grade	Au	Pb	Zn	AgEq Grade	Contained AgEq
Measured	1.63Mt	3.09 oz/t	0.691 g/t	2.46%	2.77%	8.56 oz/t	14.0Moz
Indicated	2.28Mt	4.39 oz/t	0.297 g/t	2.43%	3.47%	9.52 oz/t	21.7Moz
Total M&I	3.91Mt	3.85 oz/t	0.461 g/t	2.44%	3.18%	9.12 oz/t	35.6Moz
Inferred	15.11Mt	4.51 oz/t	0.265 g/t	1.49%	1.72%	7.50 oz/t	116.6Moz

Grade Feel

The overall grade profile is attractive. M&I resources average 3.85 oz/t silver, roughly 120 g/t Ag before considering gold, lead and zinc credits. On an AgEq basis, M&I grades average 9.12 oz/t AgEq, and inferred resources carry 7.50 oz/t AgEq.

This is not a low-grade bulk-tonnage silver system. Nueva Recuperada contains numerous high-grade underground veins, with individual areas materially above the overall resource grade. The major issue is resource confidence because inferred tonnes dominate the resource base.

Tangana Mining Unit Current Producing Asset

Tangana is the asset generating cash flow today. During Q2 2026, Silver X processed 62,252 tonnes at an average rate of roughly 700 tpd, compared with 44,883 tonnes in Q1. Ore mined increased to 67,439 tonnes and underground development increased to 3,159 metres. Silver X is targeting a 1,000-tpd run rate during Q3 2026.

Operating Metric	Q2 2026 / Current Status
Ore processed	62,252 tonnes, a company record.
Production	283,029 AgEq oz, including 145,885 oz silver and 1,404 oz gold.
Revenue / EBITDA	US$17.3M net operating revenue and US$6.9M adjusted EBITDA.
Profitability	US$3.1M net income in Q2 and US$7.7M in H1 2026.
Current scale	About 700 tpd in Q2; targeting 1,000 tpd in Q3 2026.
Current cost issue	Q2 cash cost US$34.33/AgEq oz and AISC US$46.10/AgEq oz; YTD AISC US$48.88/AgEq oz.

The positive is that Tangana proves Silver X can mine, process, sell concentrate and generate income from the district. The negative is cost: current AISC remains far above the PEA’s US$15.8/oz AgEq target. This is probably the single most important operating metric to track over the next several quarters.

Nueva Recuperada 2025 PEA Economics

The 2025 PEA models a combined Tangana and Plata operation. It uses long-term metal prices of US$33.20/oz silver, US$2,928/oz gold, US$0.93/lb lead and US$1.34/lb zinc.

PEA Metric	Value
Mine life	14 years
Combined capacity	3,000 tpd
Average annual production	~6.2M AgEq oz
Peak production	~8.7M AgEq oz
Initial capex	~US$82M
LOM cash cost	US$11.8/AgEq oz
LOM AISC	US$15.8/AgEq oz
After-tax NPV5%	US$439M
After-tax IRR	69%
After-tax payback	~3 years
Cumulative after-tax cash flow	~US$606M
Average ore value	US$166.4/t
Average underground mining cost	~US$36.3/t
Processing cost	~US$12.7/t
Overheads	~US$14.9/t
Average total cost	~US$75/t

The economics are strong on paper. US$82M initial capex is modest compared with US$439M after-tax NPV, especially because Silver X already operates in the district. However, this remains a PEA and the mine plan incorporates inferred resources, so it should not be valued like a reserve-backed feasibility study.

Plata Mining Unit Advanced Restart / Development Asset

Plata is the second major pillar of the growth plan. The area has a long mining history and is known for higher-grade silver-polymetallic mineralization. It is important because it can help move Silver X from a single-producing-area company toward a multi-mine district operator.

Plata Resource / Development Point	Assessment
Indicated resource	0.99Mt grading 5.91 oz/t Ag, 2.36% Pb and 4.11% Zn, equivalent to 10.53 oz/t AgEq.
Inferred resource	5.55Mt grading 3.79 oz/t Ag, 1.53% Pb and 2.52% Zn, equivalent to 6.65 oz/t AgEq.
Historic production	Historically mined approximately 1.8Mt at high grades.
Development role	Previously targeted to come online during 2027 under the company’s development plan.
Key value	Potentially turns Nueva Recuperada into a broader Tangana + Plata district-scale production platform.

Red Silver, Blenda Rubia and Ccasahuasi Near-Mine Optionality

Target	Why It Matters	Key Details
Red Silver	Highest-quality pure-silver growth target inside Nueva Recuperada.	PEA diluted mining inventory around 13.83 oz/t / 430 g/t silver; silver represents more than 90% of in-situ metal value. 2026 channel sampling included 735 g/t Ag over 65m strike and 649 g/t Ag over 40m strike.
Blenda Rubia	Emerging wider polymetallic target that could support more productive mining methods if continuity is proven.	June 2026 drilling returned 40.71m estimated true width grading 98.7 g/t AgEq, including 4.12m grading 274.5 g/t AgEq. The width is the most important point.
Ccasahuasi	Gold optionality beside Tangana and already included in the Nueva Recuperada PEA.	Lily 19 concession acquired from Barrick in 2026 for US$30,000. Inferred resource of 1.405Mt at 0.936 g/t Au for 42,303 oz Au, defined by only 903.5m of drilling in four holes.

Project 2: Pampas Gold-Silver Project, Huancavelica, Peru, Second District-Scale Exploration Asset

Pampas is Silver X’s newest major exploration asset. In March 2026, Silver X entered into an agreement to acquire 100% of the approximately 7,712.5-hectare Pampas Gold-Silver Project in Huancavelica.

The project contains at least 36 mapped gold-silver veins, with mapped strike lengths up to approximately two kilometres. Historical and validation sampling has returned values as high as 85.9 g/t gold and 1,065 g/t silver. These are individual sample values and should not be interpreted as average project grades.

Pampas should be treated as exploration optionality, not base-case NAV. There is no current compliant mineral resource, mine plan, reserve, AISC, capex, NPV or production schedule. The value is in potential drilling success and the possibility that Silver X can apply its Peru operating platform to another district.

Share Structure / Ownership / Insiders

Capital Structure

Current share-structure information requires care because Silver X’s own investor webpage is outdated and still displays July 2025 figures. The following uses newer market information where available and should be refreshed before publication.

Capital Structure Metric	Current / Approximate Value
Basic shares outstanding	~286.74M
Approx. fully diluted shares	~341M
Share price, Aug. 28, 2026	C$0.93
Basic market capitalization	~C$266.7M
Approx. fully diluted market capitalization	~C$317.1M
Cash, June 30 2026	US$49.7M
Working capital	US$35.1M
Senior secured convertible debentures	C$69M principal
Debenture coupon	10%
Debenture maturity	March 18, 2031
Conversion price	C$1.62/share

Convertible Debentures

The largest capital-structure item is the C$69M senior secured convertible debenture financing completed in March 2026. The debentures mature in March 2031, pay 10% annual interest, and are convertible into common shares at C$1.62/share. If the full C$69M principal eventually converts at C$1.62, it would represent approximately 42.6M potential new shares before options, warrants or other securities.

This financing dramatically improves Silver X’s ability to fund growth, but it also creates two risks: meaningful interest expense while the debt remains outstanding and potential dilution if the debentures convert into equity.

Share Structure Feel

The share structure is mixed. Silver X now has a stronger balance sheet and enough capital to advance its near-term development plan, which is a major improvement versus a typical junior producer constantly returning to the equity market. However, approximately 287M basic shares and roughly 341M estimated fully diluted shares are not especially tight, and the convertible debentures create substantial potential dilution.

Ownership / Insiders

Holder	Approximate Ownership
Baker Steel Capital Managers	~6.8%
José García	~5.1% common-share position
Francis Johnstone	<0.1%
Darryl Cardey	<0.1%

Ownership is good but not exceptional. The CEO having approximately 5% direct ownership creates useful alignment, while Baker Steel’s approximately 6.8% stake provides a credible specialist mining investor on the register. However, insider ownership does not appear high enough to earn the same score as companies where management and founders control 20–30%+.

People / Management

Person	Role	Details	Management Feel
José M. García	President, CEO & Director	Co-founder with more than 20 years of mining-engineering experience. Previously held positions with Anglo American, Inmet and BHP Billiton, with operational and production experience across Peru, Chile, Spain, Australia and Switzerland.	Relevant operating and big-company background for a Peru producer moving through scale-up.
David Gleit	Chief Financial Officer	More than 25 years of financial experience across mining, construction and asset management. Former CFO at Sierra Sun Group and STRACON; previously worked in corporate development and investor relations at Volcan.	Useful finance and capital discipline background for a company with convertible debt and expansion plans.
Darryl Cardey	Director	Co-founded Northern Empire Resources, acquired by Coeur in 2018, and Underworld Resources, acquired by Kinross in 2009. Founder/director of Otterburn Resources, predecessor to K92 Mining.	Strong company-building and exit record; ticks the previous successful project/company-sale box.
Francis Johnstone	Director	Investment advisor to Baker Steel. Trained in corporate finance and M&A at Citibank before entering the mining sector in 1989; served on numerous listed and private junior-mining boards.	Adds mining investment and governance experience.
Mark N.J. Ashcroft	Director	Approximately 40 years across underground mining operations, project development, corporate finance and advisory roles. Began underground at Inco and led Stonegate Agricom through a C$51.75M IPO.	Strong underground operating and project development experience.
Joseph Gallucci	Director	More than 20 years of mining investment-banking and equity-research experience, including senior roles at BMO, GMP, Dundee, Eight Capital, Laurentian and Ventum.	Strengthens the capital-markets side.
Operating / Technical Depth	General Manager / QP support	Ricardo Martínez serves as General Manager. The PEA included experienced QPs such as David Heyl, Edgar Vilela and Donald Hickson. Vilela has mine-planning and operating experience with Volcan, Pan American Silver and Fortuna.	Helpful technical depth as Silver X moves from producer to larger district-scale developer.

Risks / Catalysts / Timeline

Key Risks

Risk Category	Key Risk
Current cost risk	Q2 2026 AISC was US$46.10/AgEq oz versus the PEA’s modeled US$15.8/oz. Silver X must demonstrate that scale can materially reduce actual operating costs.
PEA-level study risk	Expansion economics remain based on a PEA rather than a PFS or feasibility study.
Inferred resource risk	15.11Mt is inferred versus 3.91Mt M&I. The PEA incorporates inferred resources, which carry lower geological confidence.
Production without reserves	Silver X states that current production is not based on mineral reserves supported by a PFS or feasibility study.
Scale-up risk	Moving from roughly 700–1,000 tpd toward 3,000 tpd requires mine development, infrastructure, construction, commissioning and stronger operating discipline.
Permitting risk	Expansion depends on environmental and processing permits. Tangana expansion permits are expected during 2027.
Financing / debt risk	C$69M of secured convertible debentures carry a 10% coupon, creating meaningful annual financing costs.
Dilution risk	The C$1.62 conversion price could add roughly 42.6M shares if the C$69M principal converts, before other options and warrants.
Grade reconciliation risk	Underground polymetallic veins can be sensitive to dilution, continuity, mining selectivity and actual recovered grades.
Metallurgical risk	Plata still requires additional flotation, comminution and filtration work before a higher-confidence study. Concentrate payability and treatment charges also affect economics.
Peru jurisdiction risk	Peru is a major mining country but carries political, permitting, community and social-disruption risk above Tier 1 jurisdictions.
Commodity price risk	Silver is the main valuation driver, while gold, zinc and lead credits materially influence AgEq economics.
Pampas exploration risk	Pampas has attractive samples but no current NI 43-101 resource; it remains early-stage exploration optionality.

The PEA itself cautions that inferred resources are too speculative to be considered mineral reserves and that there is no certainty the PEA will be realized. That risk must stay visible in the report.

Catalysts

Timing	Catalyst
Q3 2026	Targeted achievement of approximately 1,000-tpd Tangana run rate.
H2 2026	Continued 40,000-metre district drilling campaign.
H2 2026	Red Silver 6,650-metre underground drilling program.
H2 2026	Additional Blenda Rubia drill results and underground rehabilitation.
H2 2026	Additional Tangana and Plata resource-expansion / conversion drilling.
2026–2027	Continued Pampas exploration and initial systematic drill testing.
2027	Expected Tangana expansion permitting.
2027	Potential Plata restart / advancement toward production under the company’s previously published development plan.
2027–2028	Engineering and construction work toward expanded Tangana and Recuperada processing capacity.
2028–2029	Potential Pampas initial resource work if drilling succeeds.
2028–2029	Ramp toward district-scale dual-mill configuration.
2029	Company objective of approximately 3,000 tpd combined capacity and ~6M AgEq annual production.

Silver X’s latest Q2 2026 update continues to target approximately 6M AgEq ounces annually by 2029 and expects expansion permitting during 2027.

Expected Timeline to Full Production / Expansion

Year / Period	Focus	What It Means
2026	Tangana ramp-up	Current production is being expanded toward a targeted 1,000-tpd run rate while mine development and exploration increase.
2026	Resource-growth year	The 40,000m program targets Tangana, Plata, Red Silver, Blenda Rubia and other district targets.
2027	Permitting / second-mine transition	Tangana expansion permits are currently expected during 2027. Plata may begin moving toward contribution under the earlier development plan.
2027–2028	Construction and expansion	Engineering, mine development, processing expansion and new Tangana infrastructure become the main execution challenge.
2028–2029	District ramp-up	Tangana and Plata should increasingly operate as an integrated district rather than a single-mine producer if the plan succeeds.
2029	Full growth target	Management’s objective is approximately 3,000 tpd combined capacity and around 6M AgEq ounces of annual production.
Beyond 2029	Resource / mine-life expansion	Red Silver, Blenda Rubia, Ccasahuasi and other targets could extend or increase production, while Pampas represents a potential second long-term district.

The important distinction is that 2029 is the strategic target, not a guaranteed production date. Silver X has not yet provided a fully updated construction and commissioning schedule equivalent to a feasibility-study execution plan.

Valuation

High-Silver-Price Torque Model — US$150/oz and US$200/oz Silver

This section extends the high-silver-price sensitivity model to much more aggressive silver-price scenarios. It is a simplified upside model and should not be treated as an official company forecast.

The model assumes that Silver X successfully reaches its planned large-scale production profile and that long-term operating costs remain approximately in line with the PEA estimate of US$15.80/AgEq oz. This is a major assumption because current operating AISC is far higher.

Base Assumption	Value
PEA cumulative after-tax cash flow	~US$606M over 14 years
Simplified annual after-tax cash flow	US$606M ÷ 14 years = ~US$43.3M/year
PEA silver price	US$33.20/oz
PEA AISC	US$15.80/AgEq oz
Simplified base margin	US$33.20 − US$15.80 = US$17.40/oz
Option / exploration value added	US$33M for Pampas and unmodeled Nueva Recuperada upside

Silver Torque Calculation

Silver Price	Step	Calculation / Result
US$150/oz	Theoretical margin	US$150 − US$15.80 = US$134.20/oz
US$150/oz	Relative to PEA margin	US$134.20 ÷ US$17.40 = ~7.71×
US$150/oz	Estimated annual after-tax FCF	US$43.3M × 7.71 = ~US$334.0M/year
US$200/oz	Theoretical margin	US$200 − US$15.80 = US$184.20/oz
US$200/oz	Relative to PEA margin	US$184.20 ÷ US$17.40 = ~10.59×
US$200/oz	Estimated annual after-tax FCF	US$43.3M × 10.59 = ~US$458.4M/year

At US$150–US$200 silver, the theoretical margin becomes extraordinary. However, this is only useful if Silver X can reach planned scale while keeping costs, recoveries, dilution, financing costs and operating performance broadly in line with the PEA framework.

All-Projects High-Silver Valuation

Silver Price	Est. Annual After-Tax FCF	Multiple	Core Value	Optionality	Total Implied Value	Implied C$/Share
US$150/oz	US$334.0M	10×	US$3.340B	US$33M	US$3.373B	C$13.35
US$150/oz	US$334.0M	15×	US$5.009B	US$33M	US$5.042B	C$19.96
US$150/oz	US$334.0M	20×	US$6.679B	US$33M	US$6.712B	C$26.57
US$200/oz	US$458.4M	10×	US$4.584B	US$33M	US$4.617B	C$18.28
US$200/oz	US$458.4M	15×	US$6.876B	US$33M	US$6.909B	C$27.35
US$200/oz	US$458.4M	20×	US$9.168B	US$33M	US$9.201B	C$36.42

This valuation is aggressive and simplified. It is designed to show silver-price torque, not guaranteed fair value. The key practical question is whether Silver X can reduce actual AISC, scale production, convert inferred resources, advance permits, and manage debt/dilution without breaking the thesis.

Summary & Quick Scorecard

Category	Checklist / Assessment	Overall
Company Overview	Stock ticker: TSXV: AGX / OTCQX: AGXPF / FRA: AGX Main metal: Silver Secondary metals: Gold, lead, zinc, copper Phase: Producer / expansion-stage developer Country: Peru	—
1. Management	Previous successful project/company sale: Yes Exploration-to-development experience: Yes Big mining-company experience: Yes Capital-markets experience: Yes	Strong
2. Projects	High grades: Yes Large MRE: Yes — ~152.2Moz AgEq M&I + inferred Multiple deposits: Yes Multiple metals: Yes Exploration optionality: Very strong	Strong
3. Cost Structure	PEA AISC: US$15.8/AgEq oz — attractive Current Q2 2026 AISC: US$46.10/AgEq oz — high Initial PEA capex: US$82M — reasonable Existing infrastructure: Yes	Strong
4. Share Structure Discipline	Basic shares: ~286.7M Approx. FD shares: ~341M FD market cap at C$0.93: ~C$317M Significant convertible dilution possible	Strong
5. Insider / Ownership	CEO common-share ownership: ~5.1% Baker Steel: ~6.8% Meaningful alignment, but not exceptionally high insider ownership	Weak
6. Location	Country: Peru, Tier 2 Region: Huancavelica Historic mining district: Huachocolpa Excellent mining endowment but higher political/permitting/community risk than Canada or Australia	Good

RT Rating, Commentary

Silver X Mining Corp. is on our watchlist.

We rate this as 4 out of 5 stars.

Silver X ticks many of the boxes we look for in a high-potential silver stock. This is already a real producer, not simply a drill story. It has a large mineral resource, very strong silver leverage, existing underground infrastructure, an operating processing plant, multiple high-grade mining areas, a second development-stage mine at Plata, excellent exploration optionality and a 2025 PEA showing transformational economics.

The US$439M after-tax NPV against an approximately C$267M basic market capitalization makes the valuation interesting, especially because the PEA uses only US$33.20/oz silver. The resource is also meaningful: Nueva Recuperada contains approximately 35.6Moz AgEq M&I plus 116.6Moz inferred, giving roughly 152Moz AgEq overall, while Red Silver, Blenda Rubia, Ccasahuasi and Pampas provide additional optionality.

Management is stronger than a normal small junior. José García brings operating and big-company experience from Anglo American, Inmet and BHP. Darryl Cardey previously co-founded mining companies acquired by Coeur and Kinross. Mark Ashcroft adds underground operating and development experience, while Joseph Gallucci and Francis Johnstone strengthen the capital-markets side.

The thing preventing Silver X from receiving a 5-star rating today is execution. The PEA tells us what Nueva Recuperada could become, while current operations show where Silver X actually is. The gap is still large: the company produced 283,029 AgEq ounces in Q2 2026 and is ramping toward 1,000 tpd, while the PEA vision is roughly 6.2M AgEq ounces annually at 3,000 tpd. More importantly, actual Q2 AISC remains US$46.10/AgEq oz, almost three times the PEA’s modeled US$15.8/oz life-of-mine AISC.

Silver X also needs to convert more inferred resources, manage its C$69M convertible debt, control interest expense and dilution, and execute in Peru, which remains a Tier 2 jurisdiction in this framework. If the company reaches 1,000 tpd, continues reducing AISC, receives expansion permits, advances Plata and eventually approaches the 3,000-tpd / ~6M AgEq production target, the business could look dramatically different from the company investors see today.

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