Trading Symbol: "IPT: TSX.V"
VANCOUVER, Aug. 22, 2017 /CNW/ - IMPACT Silver Corp.
("IMPACT" or the "Company") announces its financial and production
results for the second quarter of 2017.
Fred Davidson, President and CEO,
stated, "We started 2017 with a clean balance sheet and no debt
along with news that IMPACT was named to the 2017 TSX Venture
50. During the first half of the year, IMPACT invested
heavily in upgrading and repairing its capital equipment while also
trying to improve its throughput to partially compensate for weaker
silver prices. IMPACT is also actively expanding its in-mine
exploration and development to provide additional tonnage
throughput at the mill. We hope that these efforts will translate
into better financial and operating performance in the latter half
of the year. We look forward to our ongoing exploration plans at
high potential targets and continue to evaluate strategic
transactions to continue growing value for our shareholders."
Financial Overview
- Revenues remained the same at $8.2
million for the six months ended June
30, 2017 compared to last year mainly due to higher tonnage
throughput offset by a drop-in silver prices throughout the
year.
- Mine operating loss for the six months ended June 30, 2017 was $0.3
million compared to operating earnings of $1.0 million in the comparable period of
2016. Mine operating earnings before amortization and
depletion1 was $0.8
million for the six months ended June
30, 2017 compared to $2.1
million in the same period of last year.
- Net loss for the six months ended June
30, 2017 was $1.4 million
which included $1.9 million of
foreign exchange loss and non-cash items of amortization, depletion
and share based compensation. This compared to a $0.5 million net loss for the first six months of
2016, which included $1.7 million of
foreign exchange loss and non-cash items in amortization and
depletion. Excluding foreign exchange and non-cash items,
adjusted net earnings for the six months ended June 30, 2017 were $0.5
million compared to $1.2
million in the same period of 2016.
- Earnings before interest, taxes, depreciation and
amortization2 (EBITDA) decreased to a loss of
$0.4 million for the first half of
2017 compared to earnings of $0.9
million in the same period of 2016.
- The Company's cash position at June 30,
2017 remains strong at $6.8
million, with net working capital of $8.6 million (2016 - $11.5
million).
- During the quarter, 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 CDN$0.6
million. The Company recorded a gain of $0.3 million on the transaction.
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1 Mine
operating earnings before amortization and depletion is a non-IFRS
measure which the Company believes provides additional information
regarding how the Company's operations are performing.
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2 Earnings
before interest, taxes, depreciation and amortization (EBITDA) is a
non-IFRS measure which the Company believes provides meaningful
information about the Company's financial performance.
|
|
See "NON-IFRS
MEASURES".
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Production Overview
- Production at the Guadalupe mill during the second quarter of
2017 came primarily from the San Ramon Deeps Mine (41% of total
mill feed), the Cuchara Mine (36% of mill feed), the Mirasol Mine
(10% of mill feed), and the San
Patricio (Chivo) Mine (13% of mill feed). The grade at
San Ramon is highly variable and
the production at Mirasol ended during the quarter as it reached
the end of its mine life and had declining grades. The mining
at the San Patricio (Chivo) Mine
had lower grades as some of the material was development muck.
These factors contributed to a lower grade mill feed in the second
quarter of 2017 compared to 2016.
- Average mill feed grade for silver was 173 grams per tonne
(g/t) in the second quarter of 2017, down from 180 g/t in the same
period of 2016.
- Silver production decreased to 227,503 ounces in the second
quarter of 2017 from 235,990 ounces in comparable period of 2016
due to lower grade feed and temporarily lower silver recovery
during the quarter.
Health and Safety Awards
IMPACT's mining team recently received recognition 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 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 potential production and build mineral inventories for
mining. The Company has initiated surface and underground drilling
programs to expand resources. Currently, exploration work is
focused on larger and higher-grade targets at Alacran and Alacran North. Surface
drilling is currently in progress at the San Felipe prospect 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 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 either through
ongoing exploration programs and/or strategic acquisitions and
transactions.
A recorded conference call reviewing the financial and
production results of the second quarter of 2017 will be available
on the Company website on August 23,
2017, 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 2017
drilling and testing operations, IMPACT's exploration program for
2017, 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
