Vancouver, British Columbia – (Newsfile Corp. – November 22, 2021) – IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (âIMPACTâ or the âCompanyâ) announces its financial and operating results for the third quarter ended September 30, 2021.
The Company reported revenue of $ 13.7 million for the first three quarters of 2021, a 24% year-over-year improvement over revenue of $ 11.0 million for the three first quarters of 2020. Cash provided by operating activities improved to $ 2.8 million, EBITDA (earnings before interest, taxes, depreciation and amortization) remained strong at $ 1.9 million.
After investing $ 3.0 million in exploration spending and mining assets during the year, the cash position remained strong at $ 21.5 million with working capital of $ 22.1 million. of $ 17.4 million and working capital of $ 16.8 million as of September 30, 2020. The company has drilled more than 10,000 meters on the property in 2021.
Mine operating profit before depreciation and depletion for the current year improved 45% to $ 3.2 million from $ 2.2 million in 2020. Cost of sales increased over the course of the year. quarter to $ 3.6 million, compared to $ 3.1 million due to the company’s increased exploration and development at the Guadalupe mine, which is expected to have a positive impact on grade and tonnage by the first quarter of 2022.
Third Quarter 2021 Financial Overview
Revenue for the third quarter of 2021 was $ 4.1 million down from $ 4.8 million in 2020 due to lower silver grades and tonnage this quarter, the Company said. being focused on development work rather than production tonnage.
Net income for the quarter was $ 0.03 million, down from the third quarter of 2020 as silver grades fell due to increased processing of development cuttings and lower grades in the older sections of the Guadalupe mine.
The Company’s net working capital as at September 30, 2021 was $ 22.1 million, compared to $ 16.8 million, an increase of 31.5% over the same period.
After investing $ 1.3 million in exploration and other capital during the quarter, cash flow remained strong at $ 21.5 million.
The Company has no long term debt.
Production overview for the third quarter of 2021
The plant’s throughput was 34,587 tonnes in the third quarter of 2021, which is a slight increase from the third quarter of 2020.
The mill’s average feed grade for silver was 156 grams per tonne (g / t) in Q3 2021, a decrease of 6% from 166 g / t in Q3 2020. Management expects grades to improve as the newly defined high grade zones begin to feed the mill in 2022. The third quarter of 2021 was marked by heavy rains which resulted in increased transportation and transportation costs. extraction. Mining at the high-grade Veta Negra open pit mine was halted during the quarter due to heavy rains.
Direct costs per tonne of production were $ 91.31 in the third quarter of 2021, as the Company ramped up exploration and development at the Guadalupe mine. The cumulative costs per tonne were $ 82.60.
Silver production in the third quarter of 2021 was 152,026 ounces (2020 – 158,992 ounces).
EXPLORATION AND DEVELOPMENT PLANS
In Guadalupe, work is underway to bring production capacity back to pre-pandemic levels as the pandemic supply chain and protocols come to an end. A major underground development program at Guadalupe continues, which includes a two-stage refurbishment of the Guadalupe mine shaft, as well as the reconstruction and extension of the extensive underground rail system on level 195 to access at the Pachuqueno section of the mine which recently reported high grade drilling intersections. This will provide considerably higher capacity with lower associated transportation costs. As development progresses, the Company anticipates a gradual increase in production towards the end of the year from the Guadalupe complex.
Regarding exploration news, a fourth drilling rig has been added to the Company-owned fleet and drilling plans have been extended to 20,000 meters through 2022. This will include monitoring recent successful drilling at Guadalupe and Pachuqueno, which included 2,186 g / t silver. over 3.38 meters. Drilling will also be underway this year at the San Ramon mine for additional areas beyond previous production areas.
CAPIRE – POTENTIAL RESTART OF OPEN-SKY PRODUCTION
Company engineers are examining the open-pit mine and processing plant at Capire for a possible restart of operations. Previous 43-101 studies on the Capire deposit were recalculated and confirmed by examination using previous test mining experience. Further studies are underway with respect to critical infrastructure to determine the optimum size of the plant for Capire operations. In addition, following successful laboratory-scale studies, a 1,400 kilogram bulk sample of material selected by the Company’s consultant from the Capire surface mine was shipped for testing at a Canadian laboratory using advanced X-ray transmission (“XRT”) pre-concentration processing technology. XRT technology is a process that recognizes and sorts rocks based on the specific atomic density of the material. XRT quickly sorts the grade material from the waste ore, reducing the amount of material to be processed during the crushing process, saving money. Preliminary results have been positive and further commercial scale testing is planned. The Company will assess the impact of XRT technology on capital and operating costs, recoveries and the final rate of mining and processing.
A recorded conference call reviewing the financial and production results for the quarter ended September 30, 2021 will be available on the Company’s website on November 23, 2021 www.impactsilver.com/s/ConferenceCalls.asp.
The information contained in this press release should be read in conjunction with the unaudited interim condensed consolidated financial statements for Q3 / 2021 and the MD&A, available on the Company’s website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are shown in Canadian dollars, unless otherwise indicated.
ABOUT IMPACT SILVER
IMPACT Silver Corp. is a successful silver explorer-producer where more than 90% of his income comes from silver, resulting in a stock price heavily dependent on the price of silver. The Company has two processing plants in adjacent districts within its 100% owned mining concessions covering 211 km2 in central Mexico with excellent infrastructure and manpower. Over the past 15 years, IMPACT has produced over 11.2 million ounces of silver, generating over $ 220 million in revenue, with no long-term debt. In the Royal Mines of the Zacualpan Silver District, three underground silver mines and one surface mine supply the Guadalupe central processing plant. To the south, in the district of Mamatla, the Capire project includes a 200 t / d pilot processing plant adjacent to a surface silver mine with a mineral resource of over 4.5 million ounces of silver. , 48 million pounds of zinc and 21 million pounds of lead (see IMPACT news release of January 18, 2016 for more details). Company engineers are reviewing Capire for a possible restart of operations in light of currently high silver prices. With 15 years of exploration success leading to production cash flow, IMPACT has shown that Zacualpan Silver District has many zones of high grade silver and gold and has placed several zones into commercial production.
Additional information about IMPACT and its operations is available on the company’s website at www.impactsilver.com Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company / impactsilver
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., Vice President and Director of IMPACT Silver Corp. and qualified person within the meaning of National Instrument 43-101, has approved the technical information contained in this press release.
On behalf of IMPACT Silver Corp.
“Frederick W. Davidson”
President and CEO
For more information please contact:
Chief Financial Officer | Investor Relations
(778) 887-6489 or firstname.lastname@example.org
Neither the 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 and cautions
This IMPACT press release may contain certain “forward-looking” statements and information relating to IMPACT that are based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. These statements reflect the current risks, uncertainties and assumptions relating to certain factors, but without limitation, without limitation, exploration and development risks, expenses and financing requirements, title matters, risks of ” mining, metal prices, political and economic factors, competitive factors, economic conditions, relationships with suppliers and strategic partners, government regulation and supervision, seasonality, technological changes, industry and one-off events. If one or more risks or uncertainties materialize or change, or if underlying assumptions prove to be incorrect, actual results and forward-looking statements may differ materially from those described in this document. IMPACT assumes no obligation to update any forward-looking statement, except as required by law.
The Company’s decision to bring a mine into production, to expand a mine, to make other production-related decisions or to otherwise carry out mining and processing operations, is largely based on Company data and internal non-public reports based on exploration, development and exploitation work by the Company’s geologists and engineers. The results of this work are evident in the discovery and construction of several mines for the Company and in the history of mineral production and financial performance of the Company since 2006. Under NI 43-101, the Company is required to report 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 these projects have increased the uncertainty and the risk of failure.
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