Silver X Mining (AGX) Investor update summary

Business and operational updates

• Achieved and surpassed nameplate capacity of 750 tpd, targeting 1,000 tpd next quarter and 1,500 tpd by 2029, with organic growth expected to triple production by 2029.

• Recent acquisition of Pampas project, with drilling to start in October and first results expected by December; Red Silver and Plata projects advancing with bulk sampling and exploration.

• Q1 set all-time production and financial records: 45,000 tons processed, $13.4M revenue, $4M net income, $6.1M EBITDA.

• Strong community relations with long-term agreements covering mine life; 60-65% of workforce from local communities.

• Capital allocation focused on plant and mine development, reducing liabilities, and maintaining a healthy balance sheet.

Financial and strategic outlook

• Pre-production CapEx of $82M could yield $440M NPV at $33/oz silver; current silver prices are much higher, suggesting significant upside.

• Management expects continued strong financial performance, with upcoming production and financial results to be released in July and August.

• Share price has more than halved from its January peak, with 341M shares fully diluted.

• Focus on cost control and margin improvement despite some inflation in labor and diesel; energy costs remain low.

Silver market and macro environment

• Silver price surged from $35/oz in early 2025 to $121 in January, now consolidating between $60-$85; long-term average not expected below $50 for the next decade.

• Investor demand for silver has more than doubled year-over-year, with U.S. Mint Silver Eagle sales up 25% in the first four months.

• Industrial demand, especially from electronics, AI, EVs, and solar, expected to drive 4% annual growth in silver use over the next decade.

• Gold-silver ratio expected to remain favorable for silver as investor selling has diminished, especially in India.