12:48:56 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Impact Silver Corp
Symbol IPT
Shares Issued 85,566,840
Close 2017-11-20 C$ 0.31
Market Cap C$ 26,525,720
Recent Sedar Documents

Impact Silver loses $1-million in Q3

2017-11-20 18:51 ET - News Release

Mr. Frederick Davidson reports

IMPACT SILVER ANNOUNCES THIRD QUARTER 2017 FINANCIAL AND PRODUCTION RESULTS

Impact Silver Corp. has released its financial and production results for the third quarter of 2017.

Fred Davidson, president and chief executive officer, stated: "Earlier in the year, Impact was named to the 2017 TSX Venture 50. We started 2017 with a clean balance sheet and no debt. Currently, working capital remains strong at $7.4-million. Financial results improved slightly between third quarter 2017 and the previous quarter. Impact continues to expand its in-mine exploration and development to provide additional tonnage throughput at the mill. We also have in place ongoing exploration plans for high-potential targets and continue to evaluate strategic transactions to grow value for our shareholders."

Financial overview

Revenue for third quarter 2017 was $4.0-million, a 12-per-cent improvement from second quarter 2017. Improvement over second quarter 2017 was due to slightly higher silver prices, silver recoveries and silver grades despite slightly lower production tonnes mainly due to unusually heavy rains during the quarter, which delayed trucking of mineral to the mill, slower processing due to wet mill feed and electrical power interruptions.

Mine operating loss improved in third quarter 2017 to $200,000 compared with $900,000 in second quarter 2017. Mine operating earnings before amortization and depletion were $500,000 for the three months ended Sept. 30, 2017, compared with a loss of $300,000 in the previous quarter.

Net loss for the three months ended Sept. 30, 2017, was $1.0-million, which included $1.3-million of foreign exchange loss and non-cash items of amortization, depletion and share-based compensation. This compares with a $700,000 net loss for the same period in 2016, which included $1.2-million of foreign exchange loss and non-cash items in amortization and depletion and share-based compensation. Excluding foreign exchange and non-cash items, adjusted net earnings for the three months ended Sept. 30, 2017, were $300,000 compared with $500,000 in the same period of 2016.

Loss before interest, taxes, depreciation and amortization (EBITDA) improved to a loss of $400,000 for third quarter 2017 compared with a loss of $700,000 in the previous quarter.

The company's cash position at Sept. 30, 2017, remains strong at $6.0-million, with net working capital of $7.4-million (2016: $11.1-million).

Production overview

Production at the Guadalupe mill during the third quarter of 2017 came primarily from the San Ramon Deeps mine (46 per cent of total mill feed), the Cuchara mine (38 per cent of mill feed) and the San Patricio (Chivo) mine (16 per cent of mill feed). The grade at San Ramon is highly variable and provided lower grades than in the comparable quarter of 2016. The mining grades at the new San Patricio (Chivo) mine had lower grades than the Mirasol mine that closed toward the beginning of third quarter. These factors contributed to a slightly lower-grade mill feed in the third quarter of 2017 compared with 2016.

Average mill feed grade for silver was 175 grams per tonne in the third quarter of 2017, down from 178 g/t in the same period of 2016.

Silver production increased slightly to 229,898 ounces in the third quarter of 2017 from 228,954 ounces in comparable period of 2016 mainly due to higher tonnage throughput in 2017.

Health and safety awards

In the third quarter of 2017, the company's mine rescue team competed in a safety and rescue competition for the first time and placed fifth over all among teams. In 2016, Impact's mining team received the recognition of the award for excellence in health and safety standards by the Secretary of Labour and Social Welfare in Mexico. This recognition acknowledges the company's effective working environment, strong relationships with its employees, and reduced workplace accidents, illnesses and absenteeism.

This award and others like it are testaments to Impact's dedication to an industry-leading standard in the health and safety of the company's staff and contractors.

Exploration

The company is continuing exploration with the goal of putting some of the 4,500-plus compiled old mine workings in the Zacualpan and Capire districts on a faster track to drilling and potential production, and building mineral inventories for mining. The company is continuing surface and underground drilling programs to build resources. Currently, exploration work is focused on larger and higher-grade targets at Alacran and Alacran North. Surface drilling is next being planned on the north extension of the San Ramon mine and on the north extensions of the El Paso vein located near the Guadalupe plant access road.

Impact has control of the majority of two entire mineral districts in central Mexico: the Royal mines of the Zacualpan silver district and the Capire-Mamatla mineral district adjacent to and southwest of Zacualpan.

Impact has a record of successful exploration and rapid mine development. The company's long-term vision sees potential for establishing mills throughout the two districts, each fed by multiple mines producing silver-lead-zinc as well as gold and copper.

The company continues to look for expansion through continuing exploration programs and/or strategic acquisitions and transactions.

A recorded conference call reviewing the financial and production results of the third quarter of 2017 will be available on the company website on Nov. 21, 2017.

The information in this news release should be read in conjunction with the company's unaudited condensed consolidated interim financial statements and management's discussion and analysis, available on the company website and on SEDAR.

We seek Safe Harbor.

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