IMPACT Silver Announces Q2 2024 Results with Strong Revenue Growth of 40% on Increasing Plomosas Production
IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) reported Q2 2024 results with revenue growth of 40% to $7.7 million, driven by increased production at the Plomosas zinc mine. The Zacualpan silver project saw revenue rise to $5.9 million despite lower production, benefiting from stronger silver prices. However, the company faced a net loss of $2.6 million, up from $0.9 million in Q2 2023, due to cost pressures and start-up expenses at Plomosas.
Key highlights:
- Plomosas revenue increased to $1.8 million from $1.0 million in Q1 2024
- Cash position remained strong at $9.9 million
- Zacualpan silver production decreased 2% to 152,152 oz
- Plomosas production ramping up, targeting 150-170 tpd by end of Q3 2024
The company expects continued revenue growth and cost improvements as Plomosas reaches full capacity.
IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) ha riportato i risultati del Q2 2024 con una crescita dei ricavi del 40% a 7,7 milioni di dollari, sostenuta da un incremento della produzione nella miniera di zinco Plomosas. Il progetto di argento Zacualpan ha visto i ricavi salire a 5,9 milioni di dollari nonostante una produzione inferiore, beneficiando di prezzi dell'argento più elevati. Tuttavia, la società ha subito una perdita netta di 2,6 milioni di dollari, in aumento rispetto a 0,9 milioni di dollari nel Q2 2023, a causa della pressione sui costi e delle spese di avvio a Plomosas.
Elementi chiave:
- I ricavi da Plomosas sono aumentati a 1,8 milioni di dollari rispetto a 1,0 milioni di dollari nel Q1 2024
- La posizione di liquidità è rimasta solida a 9,9 milioni di dollari
- La produzione d'argento di Zacualpan è diminuita del 2% a 152.152 once
- La produzione a Plomosas è in aumento, con l'obiettivo di raggiungere 150-170 tpd entro la fine del Q3 2024
La società prevede una continua crescita dei ricavi e miglioramenti dei costi man mano che Plomosas raggiunge la piena capacità.
IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) reportó los resultados del Q2 2024 con un crecimiento de ingresos del 40% hasta 7.7 millones de dólares, impulsado por un aumento en la producción en la mina de zinc Plomosas. El proyecto de plata Zacualpan vio aumentar sus ingresos a 5.9 millones de dólares a pesar de la menor producción, beneficiándose de precios de plata más altos. Sin embargo, la compañía enfrentó una pérdida neta de 2.6 millones de dólares, en comparación con 0.9 millones en el Q2 2023, debido a presiones de costos y gastos de arranque en Plomosas.
Puntos clave:
- Los ingresos de Plomosas aumentaron a 1.8 millones de dólares desde 1.0 millón en el Q1 2024
- La posición de efectivo se mantuvo fuerte en 9.9 millones de dólares
- La producción de plata en Zacualpan disminuyó un 2% a 152,152 onzas
- La producción en Plomosas está en expansión, apuntando a 150-170 tpd para finales del Q3 2024
La compañía espera un continuo crecimiento de ingresos y mejoras en costos a medida que Plomosas alcance su plena capacidad.
IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF)는 2024년 2분기 실적을 발표하며 매출이 40% 성장해 770만 달러에 도달했다고 밝혔습니다. 이는 Plomosas 아연 광산의 생산 증가에 힘입은 결과입니다. Zacualpan 은 프로젝트에서는 생산량이 줄어들었음에도 불구하고 매출이 590만 달러로 증가하여 은 가격 상승 덕을 보았습니다. 그러나 회사는 Plomosas에서의 비용 압박과 초기 비용으로 인해 260만 달러의 순손실을 기록했으며, 이는 2023년 2분기 90만 달러에서 증가한 수치입니다.
주요 사항:
- Plomosas의 매출은 2024년 1분기 100만 달러에서 180만 달러로 증가했습니다.
- 현금 위치는 990만 달러로 강력하게 유지되고 있습니다.
- Zacualpan에서의 은 생산량은 2% 감소하여 152,152 온스에 달했습니다.
- Plomosas의 생산량이 증가하고 있으며, 2024년 3분기 말까지 하루 150-170 톤의 목표를 설정하고 있습니다.
회사는 Plomosas가 완전 용량에 도달함에 따라 계속해서 매출이 증가하고 비용이 개선될 것으로 예상하고 있습니다.
IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) a rapporté les résultats du Q2 2024 avec une croissance du chiffre d'affaires de 40% portant le montant à 7,7 millions de dollars, grâce à une production accrue dans la mine de zinc de Plomosas. Le projet d'argent de Zacualpan a vu son chiffre d'affaires augmenter à 5,9 millions de dollars malgré une production plus faible, bénéficiant de prix de l'argent plus élevés. Cependant, la société a enregistré une perte nette de 2,6 millions de dollars, contre 0,9 million de dollars au Q2 2023, en raison des pressions sur les coûts et des coûts de démarrage à Plomosas.
Points clés :
- Les revenus de Plomosas ont augmenté à 1,8 million de dollars contre 1,0 million de dollars au Q1 2024
- La position de trésorerie est restée solide à 9,9 millions de dollars
- La production d'argent de Zacualpan a diminué de 2 % à 152 152 onces
- La production à Plomosas s'accélère, visant 150-170 tpd d'ici la fin du Q3 2024
La société prévoit une croissance continue du chiffre d'affaires et des améliorations de coûts à mesure que Plomosas atteint sa pleine capacité.
IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) hat die Ergebnisse für Q2 2024 bekannt gegeben, mit einem Umsatzwachstum von 40% auf 7,7 Millionen Dollar, was durch eine erhöhte Produktion in der Plomosas-Zinkmine vorangetrieben wurde. Das Silberprojekt Zacualpan verzeichnete trotz geringerer Produktion einen Umsatzanstieg auf 5,9 Millionen Dollar, begünstigt durch höhere Silberpreise. Das Unternehmen musste jedoch einen Nettoverlust von 2,6 Millionen Dollar hinnehmen, verglichen mit 0,9 Millionen Dollar im Q2 2023, aufgrund von Kostenbelastungen und Startkosten in Plomosas.
Wichtige Punkte:
- Der Umsatz von Plomosas stieg von 1,0 Millionen Dollar im Q1 2024 auf 1,8 Millionen Dollar
- Die Liquiditysituation blieb mit 9,9 Millionen Dollar stark
- Die Silberproduktion in Zacualpan ging um 2% auf 152.152 Unzen zurück
- Die Produktion in Plomosas nimmt zu, mit einem Ziel von 150-170 tpd bis Ende Q3 2024
Das Unternehmen erwartet weiterhin Umsatzwachstum und Kostensenkungen, während Plomosas die volle Kapazität erreicht.
- 40% year-over-year revenue growth to $7.7 million in Q2 2024
- Plomosas mine revenue increased to $1.8 million from $1.0 million in Q1 2024
- Strong cash position of $9.9 million at quarter-end
- Successful closing of $8.6 million non-brokered private placement
- Plomosas production ramp-up on track, targeting 150-170 tpd by end of Q3 2024
- Net loss increased to $2.6 million in Q2 2024 from $0.9 million in Q2 2023
- Mine operating loss of $0.2 million in Q2 2024 compared to income of $0.9 million in Q2 2023
- Zacualpan silver production decreased 2% year-over-year
- Direct costs per production tonne at Zacualpan increased 17% year-over-year
- Ongoing cost pressures and negative effects of a strong Mexican Peso impacting profit margins
Vancouver, British Columbia--(Newsfile Corp. - August 20, 2024) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the second quarter ended June 30, 2024.
Overall revenue in Q2 2024 was
The mine operating loss (before amortization and depletion) in Q2 2024 was
Q2 2024 Consolidated Financial Overview
- Revenue in Q2 2024 was
$7.7 million , up from$5.5 million in Q2 2023. - Mine operating loss before amortization and depletion[1] in Q2 2024 was
$0.22 million , compared to income of$0.9 million in Q2 2023. - The net loss in Q2 2024 was
$2.6 million after foreign exchange expense and deferred income taxes totalling$0.6 million compared to net loss of$0.9 million in Q2 2023. - After investing
$1.6 million in exploration expenditures and mining assets during the quarter, the cash position remained strong at quarter-end with$9.9 million and working capital of$8.8 million . - During the quarter, the Company closed a non-brokered "LIFE" and private placement of
$8.6 million . - The Company has no long-term debt.
Q2 2024 Zacualpan Mine Production Overview
- Mill throughput in Q2 2024 was 35,062 tonnes compared to 35,753 tonnes in Q2 2023.
- Silver production during the period decreased by
2% to 152,152 oz compared to 155,744 oz in Q2 2023 while lead and gold production decreased on a year-over-year basis by36% and69% , respectively. - Revenue per tonne sold was
$168.17 in Q2 2024, representing an increase of8% compared to$155.67 in the same period of 2023. - Direct costs per production tonne were
$153.26 in Q2 2024, representing an increase of17% over Q2 2023 costs of$130.67 per tonne. Much of this increase is due to foreign exchange, a retroactive union labour settlement including associated bonuses, with the balance coming from inflation-related pressures in Mexico. On a Mexican Peso basis, costs for the first six months of 2024 were the same as the first six months of 2023.
Zacualpan Silver District Review
The Company's overall average mill head grade of 161 g/t during the period was down
Stronger metal prices on a year-over-year basis are due to increased confidence of pending looser monetary policy in 2024 as well as geopolitical uncertainties emanating from Eastern Europe and the Middle East. A flight to safety has increased the flow of funds into commodities in general, and the mining sector in particular as investors seek protection from ongoing inflationary pressures. Notwithstanding, ongoing cost inflation continues to impact costs throughout the supply chain and labour network, despite a softening of these trends since late 2023. Moreover, the overall negative effect of a strong Mexican Peso continues to hamper the Company's profit margins. The rate of cost increases at Zacualpan may start to subside further in 2H 2024 as new labour contracts have provided some cost certainty while the Company works to improve throughput grade.
Q2 2024 Plomosas Mine Production Overview
- The Plomosas high-grade zinc mine (acquired in April 2023) was brought online in late 2023 and production continues to ramp up
- Mill throughput in Q2 2024 was 9,256 tonnes, up
157% from 3,594 tonnes in Q1 2024. - Since the start of 2024, the average zinc grade was
14% , lead was8.7% and silver was 43.7 g/t. - Over the last six months, the Company drilled 14,377 meters to support ongoing and future production.
- Production at the start of Q2 2024 was approximately 100 tpd (tonnes per day), compared to no production in the same period last year.
- Costs at Plomosas stabilized over the first six months of 2024 despite ongoing costs related to site improvements and mine development, resulting in a
$0.2 million cost decrease in Q2 2024 compared to Q1 2024.
Plomosas High-Grade Zinc Mine Review
Following the acquisition of the Plomosas high grade zinc (lead-silver) mine in April 2023, the Company was focused on rehabilitating the mine, plant and equipment, and commenced limited start-up operations in late 2023 while initiating an extensive exploration program. During Q2 2024, the Company accelerated the production ramp-up at Plomosas and expects continued growth in production levels, reaching 150-170 tpd by the end of Q3 2024 and eventually design capacity levels by late 2024/early 2025 of 225 tpd.
This production ramp up is reflected in the current financial results and should continue to play a larger role over the balance of 2024 and into 2025. As the operation reaches design capacity, investors should anticipate higher overall revenue from the project and an ongoing decrease in per tonne operating costs, as was the case in Q2 2024 compared to Q1 2024.
Fred Davidson, President & CEO of IMPACT, stated, "During the second quarter, our team at Plomosas successfully met its objective of increasing production throughput following a substantive but continuing mine rehabilitation program. As we approach design capacity levels over the coming quarters, we expect to expand the mine's development and increase high-grade production activity at site. Meanwhile, our silver operations at Zacualpan are adapting to higher cost profiles by improving efficiencies in terms of grade and recoveries, which we expect to bear fruit in 2025. Our new discovery of the Keno vein is exciting and potentially the start of a trend of new higher grade production results beginning later this year."
Outlook - Grade Improvement at Zacualpan & Production Increasing at Plomosas
The Company's strong balance sheet provides it with a solid footing to continue to improve efficiencies at the Zacualpan silver-lead-zinc operation while allowing for ongoing production increases at the Plomosas high-grade zinc mine.
Through year-end 2024, management expects the production mix at Zacualpan to reflect higher grade mine development on the back of recently encouraging exploration results. The operation can be nimble as it seeks higher grade production mixes from its various legacy mines and new discoveries. Meanwhile at Plomosas, exploration activity is ongoing with up to two drill rigs working to develop the resource. These efforts should lead to ongoing improvement in Company-wide overall revenues while management expects cost pressures to continue to abate heading into 2025.
The Company's recent exploration success at Zacualpan and production increases at Plomosas reflects its position as one of just a handful of intermediate miners offering investors exposure to three distinct verticals within the mining sector, including exploration, production, and overall growth.
A recorded conference call reviewing the financial and production results of the quarter ended June 30, 2024 will be available on the Company website on August 21st, 2024 at https://impactsilver.com/media/conference-calls/.
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.sedarplus.ca. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with three mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The Company recently restarted mining operations and is expected to reach design capacity production levels over the next six months. Exploration potential at Plomosas is exceptional where only 600m of the 6 km-long structure have seen modern exploration. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company 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., VP Exploration and a Director of IMPACT, is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
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. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to continued ramp-up of operations, and improved operating revenues and decreasing costs.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, criminal activity, 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, pandemics, 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 statements, except as required by 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 NI 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 of failure.
303-543 Granville Street
Telephone 604 664-7707
Vancouver, BC, Canada V6C 1X8
www.impactsilver.com
X (Twitter)
[1] Mine operating earnings before amortization and depletion is a non-IFRS measure which the Company believes provides meaningful information about the Company's financial performance. See "Non-IFRS MEASURES".
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220576
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