IMPACT Silver Announces Fourth Quarter and Year-end 2017 Financial and Production Results
IMPACT Silver Announces Fourth Quarter and Year-end 2017
Financial and Production Results
Trading Symbol: "IPT: TSX.V"
VANCOUVER
,
March 12, 2018
/CNW/ -
IMPACT Silver Corp. ("IMPACT" or the "Company") announces its financial and production results
for the year ended
December 31, 2017
.
Fred Davidson
, President and CEO, stated, "Earlier in the year, IMPACT was named to the 2017 TSX Venture 50. We entered 2018 with a
clean balance sheet and no debt. Currently working capital remains strong at
$5.6 million
. 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."
In 2016, IMPACT raised
$7.1 million
(net) through private placements. These funds have allowed the Company to accelerate exploration and re-
start drilling on higher priority targets. The initial results have lead to the
San Felipe
discovery, the discovery of a new extension at the
San Ramon
mine and the start of field work on the gold/copper target of
Santa Teresa
as detailed in respective news releases.
Financial Overview
Revenue for the year ended
December 31, 2017
was
$15.4 million
(2016 -
$16.7 million
). Marginally lower grades and silver prices
impacted results for the year.
Operating expenses increased to
$14.9 million
(2016 -
$13.0 million
) mainly as a result of increased throughput at the mill.
Mine operating loss for 2017 was
$1.7 million
compared to earnings of
$1.4 million
in 2016. Mine operating earnings before amortization
and depletion were
$0.5 million
for the year ended
December 31, 2017
compared to
$3.7 million
in 2016.
Net loss for 2017 was
$4.6 million
which included
$0.6 million
of foreign exchange loss and
$3.5 million
of non-cash expenses for
amortization, depletion, share based compensation and deferred income taxes. This compares to a
$1.9 million
net loss for 2016, which
included
$0.5 million
of foreign exchange loss and non-cash expenses of
$3.3 million
for amortization, depletion, share based compensation
and deferred income taxes.
Loss before interest, taxes, depreciation and amortization (EBITDA) was
$1.9 million
for 2017 compared to earnings of
$0.7 million
in the
previous year.
The Company's cash position at
December 31, 2017
was
$4.7 million
with net working capital of
$5.6 million
.
In
June 2017
, the Company completed the sale of its non-active
Zacatecas
assets (200 tpd mill, 14 hectares surface rights and 10 mineral
concessions) to Endeavour Silver Corp. (TSX:EDR, NYSE:EXK) for 154,321 common shares valued at
$0.6 million
. The Company
recorded a gain of
$0.3 million
on the transaction.
Production Overview
Silver production decreased slightly to 907,848 ounces in 2017 from 952,768 ounces in 2016.
Average mill feed grade for silver was 172 grams per tonne (g/t) in 2017, down 4% from 2016.
Throughput at the Guadalupe mill was increased 6% to 194,266 tonnes milled in 2017 from 183,032 in 2016.
Production at the Guadalupe mill during the fourth quarter of 2017 came primarily from the San Ramon Deeps Mine (46% of total mill
feed), the Cuchara Mine (35% of mill feed), the
San Patricio
(Chivo) Mine (19% 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 towards the beginning of Q3. These factors contributed to a slightly lower grade mill feed in the
fourth quarter of 2017.
Health and Safety Awards
During the year, the Company's mine rescue team competed in a safety and rescue competition for the first time and placed fifth overall 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 our staff and
contractors.
Exploration
The Company is continuing exploration with the goal of putting some of the 4,500+ 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 will be continuing surface
and underground drilling programs to build resources.
IMPACT has control of the majority of two entire mineral districts in central Mexico: the Royal Mines of Zacualpan Silver District and the Capire-
Mamatla Mineral District adjacent to and southwest of Zacualpan. IMPACT has a track 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 ongoing exploration programs and/or strategic acquisitions and transactions.
A recorded conference call reviewing the financial and production results of the fourth quarter of 2017 will be available on the Company website
on
March 13, 2018
, at
www.impactsilver.com/s/ConferenceCalls.asp
.
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 at
www.impactsilver.com
and on SEDAR at
www.sedar.com
. All amounts are stated in Canadian dollars unless otherwise specified.
Additional information about the Company and its operations can be found on the website,
www.impactsilver.com
.
On behalf of the Directors of IMPACT Silver Corp.,
"Frederick W. Davidson"
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release contains certain "forward-looking" statements and information relating to IMPACT that are based on the beliefs of,
and assumptions made by, IMPACT management, following consideration of the information currently available to IMPACT management. Such
statements include statements regarding the discovery and commercialization of commercial quantities of minerals, improvements in profitability,
increases to processing capacity, expansion of resource quality and quantity, exploration goals, future results, the operational goals and outcomes
in the
Zacualpan
and Capire districts and generally, and future production as a result, expected 2018 drilling and testing operations, IMPACT's
exploration program for 2018, the completion and effectiveness of the mining database project and other statements that are not historical facts.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates
or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and
uncertainties include, without limitation, exploration and development risks, expenditure and financing requirements, title matters, operating hazards,
metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners,
governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks
or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may
vary materially from those described herein. IMPACT does not assume any obligation to update any forward-looking statement contained herein
other than in accordance with applicable law.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining
and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work
by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company
and in the track record of mineral production and financial returns of the Company since 2006. Under National Instrument 43-101, the Company
is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary
economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk.
SOURCE
IMPACT Silver Corp.
View original content: http://www.newswire.ca/en/releases/archive/March2018/12/c8917.html
%SEDAR: 00001640E
For further information:
Frederick Davidson - President & Chief Executive Officer, (604) 681-0172 or [email protected]; Or Jerry
Huang, Chief Financial Officer, (604) 681-0172 or [email protected]
CO: IMPACT Silver Corp.
CNW 14:06e 12-MAR-18