Trading Symbol: "IPT: TSX.V"
VANCOUVER, Aug. 23, 2016 /CNW/ - IMPACT Silver Corp.
("IMPACT" or the "Company") is pleased to announce its financial
results for the six months ended June 30,
2016.
Fred Davidson, President and CEO,
stated, "The increase in silver prices has had a positive impact on
the Company's financial performance. For the fourth
consecutive quarter the Company's EBITDA1 is positive at
$0.6 million for Q2 2016 compared to
a negative EBITDA of $0.8 million in
Q2 2015. Revenues in Q2 2016 increased by 61% over Q2 2015 to
$4.4 million. Operationally,
the Company is continuing to improve its mine operating income,
achieving income of $0.7 million in
Q2 2016 compared to a loss of $0.8
million in Q2 2015.
The upward trend in silver prices which started at the beginning
of 2016 has continued through August, with prices rising from
$14 to over $20. A combination of positive cash flows
from operations and aggregate gross proceeds of $7.6 million raised during Q2 2016 will enable
IMPACT to refocus its efforts on a more aggressive exploration
program which will include drilling a number of key targets.
The Company will also continue with its strategy of focusing on
higher grade mineral on both the exploration and production fronts
as it has proved effective through the last few years of difficult
mining markets allowing us to keep our operations lean. With
IMPACT's persistent emphasis on profitability for every ounce
produced, combined with the exploration potential of higher grade
zones of silver at San Ramon and
balance sheet strength, IMPACT is a self-sufficient and growing
explorer-producer in the Mexican silver space."
Financial Overview
- Revenues for the second quarter were $4.4 million, a significant increase from
$2.7 million in 2015. The 61%
increase was due to higher silver prices, and greater production
tonnage.
- EBITDA improved to $0.6 million
for the second quarter of 2016 compared to a negative EBITDA of
$0.8 million for the same period of
2015.
- Mine operating earnings before amortization and
depletion2 improved significantly by $1.5 million to $1.3 million in Q2 2016 from a
loss of $0.2 million in Q2 2015.
- Net loss was $0.1 million for the
quarter, of which non-cash items included $0.6 million in amortization and depletion,
compared to a $1.0 million net loss
in the same quarter last year, of which non-cash items included
$0.5 million in amortization and
depletion.
- Due to the private placements and cash controls in Q2 2016, the
Company's cash position at June 30,
2016 improved substantially to $7.7
million compared to $0.7
million at December 31, 2015.
Net working capital correspondingly improved to $11.5 million at June 30,
2016 from $2.9 million at
December 31, 2015.
- Capital expenditures during the quarter included exploration
& evaluation asset expenditures of $0.4
million (2015 - $0.4 million)
and $0.1 million in property, plant
& equipment expenditures (2015 - $nil).
Production Overview
- Silver production was 235,990 ounces for the second quarter of
2016, up 8% from 218,380 ounces in the same period of 2015.
- Average mill feed grade for silver was comparable at 180 grams
per tonne (g/t) and 181 g/t in the second quarters of 2016 and 2015
respectively.
- Total tonnes milled during the second quarter of 2016 increased
7% to 45,099 from 42,300 in the comparable quarter of 2015.
Silver sales increased 12% in the second quarter of 2016 to
235,531 ounces from the 209,832 ounces sold in the same period in
2015 as a result of increased tonnage throughput and increased
metallurgical silver recoveries. Silver prices have begun to
rally with the average for the second quarter of 2016 up 2% from
the same period last year, and up 13% over the first quarter of
this year. As a result of the increased silver prices and
sales, the Company's revenues increased significantly to
$98.32 per tonne in the second
quarter of 2016, from $66.37 in the
second quarter of 2015. For the first six months of 2016 the
revenue per tonne improved by 20% to $93.35, compared to $77.84 in the same period of 2015.
Health and Safety Awards
IMPACT's mining team recently received recognition awards 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.
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. With the proceeds from the Q2 2016 financing, the Company
will begin surface and underground drilling programs in the fourth
quarter. In May 2016, the
Company announced some of the best drilling intersections ever
reported in the district at San Ramon Deeps, including 14.82 meters
of 481g/t silver. The fall program will include expanded programs
at San Ramon and San Patricio where the Company's next mine is
being developed. Recently exploration work focused on large
and high grade targets at Alacran North, El Zapote and El Angel.
With a track record of successful exploration, rapid mine
development to production and thousands of old mine workings
identified to date as exploration targets, IMPACT is well
positioned as the metal markets continue to improve. The Company
remains dedicated to its long term vision as there is
potential for establishing multiple mills throughout the two
districts it operates in, each fed by multiple mines producing
silver-lead-zinc as well as gold and copper.
A recorded conference call reviewing the financial and
production results of the six months ended June 30, 2016, will be available on the Company
website on August 24, 2016, 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.
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. The Company produces silver with
lead and gold byproducts at its 550 tonne per day Guadalupe
processing plant in the Royal Mines of Zacualpan
District. 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 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 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.
__________________________________________
1 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.
2Mine operating earnings before amortization and
depletion is a non-IFRS measure which the Company believes provides
a useful indicator of how the Company's operations are
performing.
SOURCE IMPACT Silver