IMPACT Silver Announces First Quarter 2014 Financial and Production Results
May 27 2014 - 2:50PM
Marketwired
IMPACT Silver Announces First Quarter 2014 Financial and Production
Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2014) -
IMPACT Silver Corp. ("IMPACT" or the "Company") (TSX-VENTURE:IPT)
announced today its financial results for the three months ended
March 31, 2014. 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.
Overview for the
Quarter Ended March 31, 2014
Financial Overview
- Revenues for the first quarter of 2014 were $3.0 million, a 30%
decrease from $4.2 million in the first quarter of 2013, resulting
primarily from a decline in the silver price.
- Net loss of $1.3 million for the quarter, of which non-cash
items included $0.7 million in depreciation and amortization and
$0.1 million in share based payments (stock option grants).
- Mine operating loss before amortization and depreciation of
$0.1 million compared to $1.5 million earnings in the prior year.
This was a direct reflection of the downturn in silver prices.
- Capital expenditures during the quarter included mineral
property expenditures of $1.0 million which brought cash down to
$2.5 million. The Company continues to be free of long term
debt.
Production Overview
- Silver production decreased 10% to 148,696 ounces for the first
quarter of 2014, down from 165,651 ounces in the same period of
2013.
- Average mill feed grade for silver in the first quarter of 2014
decreased to 137 grams per tonne (g/t) from 146 g/t in the first
quarter of 2013.
- Total tonnes milled during the first quarter of 2013 decreased
to 39,775 from 42,009 in the first quarter of 2013 but increased
from the fourth quarter 2013 of 36,655 tonnes.
- The shutdown of the Capire open pit was completed during the
quarter. Work commenced on modification of the Capire plant which
is being planned to process higher value gold and copper
mineralization from the Carlos Pacheco/San Juan area later in the
year.
- The Cuchara-Oscar mine was put into production in February
2013. During 2013, the mine contributed 23% of total mill feed. For
the first quarter of 2014 it provided 48%.
As noted, the Company increased tonnes produced in the current
quarter to 39,775 over the previous two quarters of 36,655 and
38,520 for Q4 2013 and Q3 2013, respectively. This increase has
been a result of additional feed from the Cuchara-Oscar mine as it
becomes the Company's principal producer, as well as strong
contributions from the San Ramon and Noche Buena mines. Grades were
lower in the quarter at 137 g/t compared with 146 g/t for the same
period in 2013. With production materials being drawn from several
mines with different feed grades, mine production can vary from
quarter to quarter. However, with the Cuchara-Oscar Mine developing
into higher grade mineral, the Company expects an increase in
grades going forward in 2014.
In light of lower silver prices, recent Mexican mining tax
changes and low overall silver grade being mined at Capire, the
Company recognized that the open pit test mining operation was not
economic at its present small scale. Thus, open pit operations at
Capire were suspended in February 2014. The Capire plant is being
reconfigured to process the gold-copper mineralization at Carlos
Pacheco. However, the plant will not be reactivated until an
industrial dispute with local truck haulers is resolved and
metallurgical research is completed, and the Company anticipates
the Capire plant will not be contributing to sales and production
until later in the year.
A recorded conference call reviewing the financial and
production results of the three months ended March 31, 2014, will
be available on the Company website on Tuesday, May 28, 2014, at
www.impactsilver.com/s/ConferenceCalls.asp.
IMPACT Silver Corp. owns two processing plants within its 100%
owned 623-square-kilometer land package in south-central Mexico:
the Guadalupe Production Centre and the Capire Processing Plant. At
Guadalupe, three underground silver mines feed the central 500 tpd
processing plant located within the historic Royal Mines of
Zacualpan Silver District. At Capire, the 200 tpd processing plant
is being adapted to process gold and copper mineralization from the
Carlos Pacheco/San Juan Project. 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 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.
IMPACT Silver Corp.Jerry HuangInvestor Relations Manager(604)
681 0172(604)
681-6813inquiries@impactsilver.comwww.IMPACTSilver.com
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