IMPACT Silver Announces Third Quarter 2018 Financial and Production Results
IMPACT Silver Announces Third Quarter 2018
Financial and Production Results
Trading Symbol: "IPT: TSX.V"
VANCOUVER
,
Nov. 26, 2018
/CNW/ - IMPACT Silver Corp. ("IMPACT" or the "Company")
announces its financial and operating results for the nine months ending
September 30, 2018
.
The Company reported revenues for the quarter of
$3.1 million
, a decrease from
$4.0 million
for the
same period in 2017, due to lower grades, the price of silver and fluctuating foreign exchange.
EBITDA was negative
$1.5 million
, with a net loss of
$1.4 million
of which
$0.4 million
was
amortization and depletion.
Fred Davidson
, President & CEO of IMPACT stated, "Over the last two quarters we encountered
the perfect storm of lower silver prices, lower grades at our mill, and fluctuating currencies (Mexican
Peso & USD). To address this headwind of lower revenue and rising costs, the team has initiated a
program designed to ultimately raise mining grades and reduce overall costs. Going forward, the
Company will focus on ore grade selection including access to higher zinc zones even at the expense
of tonnage milled if required. Work continues on the exploitation of the new San Ramon Deeps 2
zone just south of our current active mining areas, and on development of the
Lipton
vein at the
Guadalupe Mine."
In 2018, IMPACT has a renewed emphasis on greenfield exploration, with successes at the
Santa Teresa
gold program, Guadalupe Mine, and San Ramon new zone. In Q2 2018, the Company
announced a significant discovery at the San Ramon Deeps and underground at the Guadalupe
Mine. As a junior mining producer and explorer, IMPACT believes our new discoveries will add
considerable value to the Company's successful decade of production history at the Royal Mines of
Zacualpan
.
IMPACT is currently raising a non-brokered financing at market price with full 2-year warrants at
$0.35
. For those interested please contact the Company directly or via your broker. It is only the
fourth capital raise in Company history and will be used for general working capital, exploration of
high potential targets, and increasing efficiencies at the Guadalupe production mill.
Financial Overview
Revenue for the third quarter was
$3.1 million
, a decrease from Q3 2017 revenue of
$4.0
million
.
Operating expenses for Q3 2018 were
$4.0 million
, an increase from Q3 2017 at
$3.5 million
.
Mine operating loss for Q3 2018 was
$1.3 million
compared to
$0.2 million
in Q3 2017.
Net loss for the quarter was
$1.4 million
which included foreign exchange loss of
$0.2 million
and non-cash expenses of
$0.4 million
for amortization and depletion and a recovery on
deferred income taxes of
$0.4 million
. This compares to a
$1.0 million
net loss for the same
period in 2017, which included
$0.1 million
of foreign exchange loss and non-cash expenses of
$1.1 million
for amortization, depletion, share-based compensation and a recovery on deferred
income taxes of
$0.1 million
.
The Company's cash position at
September 30, 2018
remains at
$0.7 million
.
The Company has no long-term debt.
Production Overview
Silver production decreased to 179,479 ounces in Q3 2018 from 229,898 ounces in Q3 2017
due to lower feed grade and fewer tonnes mined.
Average mill feed grade for silver in the quarter was 165 grams per tonne (g/t) in Q3 2018, up
from 146 g/t in the prior quarter but down from 175 g/t in Q3 2017.
Throughput at the mill decreased to 42,230 tonnes milled in Q3 2018 from 48,323 in Q3 2017.
Silver sales decreased in the third quarter 2018 to 180,222 ounces compared to 2017 same period
sales of 224,649 ounces. A challenging quarter commenced for metals with trade wars, geopolitical
uncertainties, and investor's reversion to safety in US dollars and treasuries. Silver prices at
March
2018
were
$16.40
/ounce and continued dropping below
$14.15
/ounce during the third quarter.
Revenue per tonne sold for the nine months ended
September 30, 2018
dropped to
$73.59
versus
$85.73
per tonne in the same period of 2017 due to lower silver grades and prices. The Company
will focus on improving ore grade to improve revenue per tonne and lowering tonnage costs.
Facing lower metal prices, cost control remains a high priority for IMPACT. Q3 2018 general and
administrative costs dropped to
$0.3 million
down from the previous quarter of
$0.4 million
. Direct
cost per tonne rose to
$88.71
in Q3 2018 compared to
$73.66
for Q3 2017.
In July, IMPACT announced a significant discovery at the San Ramon Deeps 2 Zone located
100 meters south of the current active mining areas. Underground drill results included 2.04 meters
of 661 g/t Silver and 4.97 meters of 354 g/t Ag (
see IMPACT news release dated
July 17, 2018
for details
). The zone remains open for extension
upwards, downwards and to the south. Initial results of underground drilling at Guadalupe included
1,263g/t silver over 2.61 meters and 354 g/t over 8.82 meters (
see IMPACT news release dated
September 5, 2018
for details
). Additional surface sampling at
Santa Teresa
returned encouraging results (
see IMPACT news release dated
September 25, 2018
for details
) including 6.5 g/t gold across 1.66
meters along a 50 meter strike length.
George Gorzynski
, P.Eng., a Qualified Person under the meaning of Canadian National Instrument
43-101, approved the technical content regarding exploration work in this news release.
A recorded conference call reviewing the financial and production results of the nine months ended
September 30, 2018
will be available on the Company website on
November 27, 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.
About IMPACT Silver:
IMPACT Silver Corp. is a successful silver-gold explorer-producer with two processing plants on
adjacent districts within its 100% owned mineral concessions covering 357km2 in central
Mexico's
most prolific silver district in an area that has produced over 250 million ounces with well-known
mines such as Taxco.
Over the past twelve years IMPACT has produced over 8.5 million ounces of silver, generating
revenues over
$175 million
, with no long-term debt. At the Royal Mines of Zacualpan Silver District
several underground silver mines feed the central 550 tonnes per day (TPD) Guadalupe processing
plant. To the south, in the
Mamatla
District the Capire processing pilot plant is an expandable 200
TPD with a NI-43-101 compliant resource of silver-lead-zinc awaiting higher metal prices to be
restarted. Given the challenging markets the last few years, IMPACT has focused its exploration
efforts on high success rate silver targets, with quick production profiles and proximity to the
Guadalupe processing plant. Following a successful decade of exploration success to production
cash flows, IMPACT has proven the
Zacualpan
District to be prolific in generating high grade
epithermal silver-gold production feeds. With markets more perceptive to early exploration results, in
2018 IMPACT continues to add emphasis to exploration work.
Additional information about IMPACT and its operations can be found on the Company website at
www.IMPACTSilver.com
.
On behalf 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 may contain certain "forward-looking" statements and information
relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions
made by and information currently available to IMPACT management. Such statements reflect the
current risks, uncertainties and assumptions related to certain factors including but not limited to,
without limitations, 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 the obligation to update any
forward-looking statement.
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 NI43
101 the Company is required to disclose
that it has not based its production decisions on NI43
101
compliant mineral resource or reserve
estimates, preliminary economic assessments or feasibility studies, and historically such projects
have increased uncertainty and risk of failure.
SOURCE
IMPACT Silver Corp.
View original content:
http://www.newswire.ca/en/releases/archive/November2018/26/c3216.html
%SEDAR: 00001640E
For further information:
Jerry Huang, CFO & Investor Relations, (604) 681 0172 or
CO: IMPACT Silver Corp.
CNW 13:03e 26-NOV-18